(India Morning Newsletter will not be published on Friday, February 24, as markets are closed for Mahashivratri.) To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_02232017.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 10:00 am: RBI Executive Director Sudarshan Sen, SEBI member G. Mahalingam and BSE MD & CEO Ashish Kumar Chauhan to speak at an event in Mumbai.
3:00 pm: Junior Finance Minister Santosh Kumar Gangwar at an event in New Delhi.
6:45 pm: Dena Bank Chairman Ashwani Kumar to launch RFID cards in Mumbai.
LIVECHAT- MARKETS FOCUS Positive economic data out of Asia, driven by improving exports and rising commodity prices, bolstered shares to 19-month highs last week, although concerns linger that any protectionist threats posed by U.S. President Donald Trump could reverse the recovery. Uncertainty persists in the FX market about the timing of the next Fed rate hike, even though Chair Janet Yellen hinted at a "live" March meeting in her Congressional testimony. Evan Lucas, Market Strategist, IG, will share his outlook with us at 09:30 am. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • RBI policy panel cites concerns about inflation The Reserve Bank of India's six-member monetary policy committee cited concerns about inflation in holding rates in February, with three mentioning the need to shift the policy stance to "neutral" from "accommodative," minutes from the meeting showed.
• India needs to create 'bad bank' quickly - finmin aide The finance ministry on Wednesday backed a call by the Reserve Bank of India to set up an institution similar to a "bad bank," saying urgency was needed to address troubled loans weighing on the banking sector that were hobbling investment and growth.
• Snapdeal to cut 600 staff, founders forego salary Online marketplace Snapdeal is to lay off 600 employees and its founders will forego their salaries as the company struggles to turn a profit in a market increasingly dominated by rivals Flipkart and Amazon.
• INTERVIEW-Motor racing-F1 boss Mallya sees no grounds for extradition Vijay Mallya, the one-time billionaire who co-owns the Force India Formula One team, said on Wednesday Indian authorities had no grounds to extradite him from Britain and he would not be leaving.
• India's bankers sceptical over RBI proposal on bad loans Indian bankers on Wednesday poured scepticism on a proposal by the central bank to set up new private or state companies to buy up bad debt from lenders, warning that the plan would add more complexity and delay restructuring.
• India banking bailout cost "manageable" - IMF The cost of recapitalising India's struggling banks would be affordable even under a negative scenario, the International Monetary Fund said on Wednesday, urging government steps to strengthen the financial system.
• Oil-starved India to auction exploration rights by June -source India plans to auction some oil exploration blocks by June and will allow bidders to carve out areas where they want to drill in order to attract greater interest, a government official told Reuters on Wednesday.
GLOBAL TOP NEWS • Trump revokes Obama guidelines on transgender bathrooms President Donald Trump's administration on Wednesday revoked landmark guidance issued to public schools in defense of transgender student rights, reversing course on a signature initiative of former Democratic President Barack Obama.
• Nissan says Ghosn to relinquish CEO role, Saikawa to take helm Nissan Motor Co said Carlos Ghosn, who has led the Japanese automaker for the past 16 years, will step aside as chief executive officer, handing over the helm to a long-time company veteran.
• Switzerland's ABB hit by $100 mln South Korean fraud Swiss engineering group ABB on Wednesday said it fell victim to a "sophisticated criminal scheme" at its South Korean subsidiary, with the chief suspect an executive responsible for ethics training.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures were at 8,922.50, up 0.05 pct from its previous close.
• The Indian rupee will likely open higher against the dollar, as the U.S. Federal Reserve meeting minutes suggested that an interest rate hike was unlikely next month, damping demand for the greenback.
• Indian government bonds will likely edge higher, after minutes of the last Federal Reserve meeting indicated no certainty about an interest rate hike in the U.S. next month. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.90 pct-6.95 pct band today. The paper had settled at 100.24 rupees, the lowest level since Sep. 2, yielding 6.93 pct yesterday.
GLOBAL MARKETS • The S&P 500 ended modestly weaker on Wednesday, holding losses after minutes from the Federal Reserve's last meeting kept alive a potential near-term interest rate hike, while DuPont shares helped the Dow close at an all-time high for a ninth straight session.
• Asian stocks pulled back from a 19-month high, while the dollar tried to steady from losses suffered in the wake of the U.S. Federal Reserve minutes indicating a cautious approach to more interest rate increases.
• U.S. long-dated Treasury debt yields edged lower on Wednesday in choppy trading, after minutes of the latest Federal Reserve monetary policy meeting struck a cautious tone on raising interest rates, reducing expectations of a hike next month.
• Oil futures rose nearly 1 percent after data released by an industry group showed a surprise decline in U.S. crude stocks as imports fell, lending support to the view that a global glut is ending.
• Gold prices held steady as the U.S. dollar firmed following overnight losses after the release of minutes from the last U.S. Federal Reserve meeting, which suggested a cautious approach to interest rate hikes.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 66.91/66.94 February 22 -$38.71 mln -$176.94 mln 10-yr bond yield 7.24 pct Month-to-date $1.29 bln $925.58 mln Year-to-date $1.28 bln $813.50 mln For additional data: India govt bond market volumes Stock market reports Non-deliverable forwards data Corporate debt stories [IN CORPD] Local market closing/intraday levels [IN SNAPSHOT] Monthly inflows [INFLOWS RTRS TABLE IN] ($1 = 66.97 Indian rupees) (Erum Khaled in Bengaluruu)
