11:00 am: SEBI Chairman Ajay Tyagi to address SCOPE members in New Delhi.
FX WEEK AHEAD FX Buzz analyst Jeremy Boulton analyses G7 currencies at 3:30 pm IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • India launches new economic era with sales tax reform India early on Saturday introduced its biggest tax reform in the 70 years since independence from British colonial rule.
• Washington tells India Westinghouse could be sold by year end The U.S. administration has told India that Westinghouse Electric Co will emerge from bankruptcy and be sold by the year end, industry and diplomatic sources have said, raising the prospect of a Washington-supported sale or bailout for the nuclear firm.
• Modi says cancelled registration of 100,000 companies India has cancelled the registration of more than 100,000 companies which were "in violation of laws", Prime Minister Narendra Modi said, in the latest effort by the government against "black money" and tax evasion.
• Indian automakers, retailers lure customers with discounts as GST kicks in Some of India's biggest automakers and retailers announced price cuts on Saturday as Asia's third-largest economy switched to a new nationwide sales tax at the stroke of midnight, replacing a host of provincial and national levies.
• Modi heads to Israel, lifting the curtain on close ties Narendra Modi is making a first visit to Israel by an Indian prime minister this week, in a public embrace of a country that he has long admired for its military and technical expertise but which his predecessors kept at arm's length.
• Thyssenkrupp wants less than 50 percent of Tata steel JV - Handelsblatt German industrial group Thyssenkrupp aims to hold less than half of a steel joint venture it wants to set up with Tata Steel so it can deconsolidate the business from its balance sheet, Handelsblatt reported, citing a company source.
• Indian Railways safety overhaul at risk due to rail shortage- documents A planned $15 billion safety overhaul of India's ageing rail network is facing delays as the country's state steel company is unable to meet demand for new rails, according to two government documents seen by Reuters.
• India presses Microsoft for Windows discount in wake of cyber attacks India is pressing Microsoft Corp to offer a sharply discounted one-time deal to the more than 50 million Windows users in the country so that they can upgrade to the latest Windows 10 operating system in the wake of ransomware attacks.
GLOBAL TOP NEWS • Japan PM's party suffers historic defeat in Tokyo poll, popular governor wins big Prime Minister Shinzo Abe's Liberal Democratic Party suffered an historic defeat in an election in the Japanese capital on Sunday, signalling trouble ahead for the premier, who has suffered from slumping support because of a favouritism scandal.
• U.S. warship in operation near disputed island in South China Sea A U.S. warship sailed near a disputed island in the South China Sea claimed by China, Taiwan and Vietnam on Sunday in an operation meant to challenge the competing claims of all three nations, a U.S. Defense Department official said.
• Japan firms most upbeat in 3 years but labour shortages weigh - BOJ tankan Confidence among Japan's big manufacturers hit its highest level in more than three years in the June quarter, a closely-watched central bank survey showed, adding to signs the recovery in the world's third largest economy is gaining pace.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures were at 9,524.00, up 0.08 percent from previous close.
• The Indian rupee will likely edge lower against the dollar in early trade, tracking a shift in appetite for risk assets after major central banks signaled likely tightening in monetary policies in coming months.
• Indian government bonds are likely to fall today after the Reserve Bank of India announced a surprise open market sale of debt this week. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.51 percent-6.57 percent band today.
GLOBAL MARKETS • Major U.S. stock indexes ended a volatile week on a modestly high note on Friday, led by a surge in Nike shares, and the S&P 500 scored its biggest gain for the first half of the year since 2013 while the Nasdaq Composite's first-half gain was its best in eight years.
• Asian stocks held two-years highs, starting the new month on a solid footing after two quarters of gains while expectations of credit tightening by the world's major central banks kept global bond markets under pressure.
• The dollar edged off from a nine-month low against a basket of currencies, but it remained shaky as signs central banks in Europe were moving away from accommodative monetary policies kept the euro and sterling well bid.
• U.S. Treasury yields rose on Friday as inflation data was not seen as weak enough to delay the Federal Reserve’s expected path on interest rate hikes, and as investors worried about less accommodative central banks in Europe.
• Oil prices edged up, supported by the first fall in U.S. drilling activity in months, although rising output from OPEC despite a pledge to cut supplies capped gains.
• Gold held steady, ahead of the U.S. Independence day holiday, as the dollar hovered at near nine-month lows hit last week on signs of monetary tightening by global central banks.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.69/64.72 June 30 -- $11.77 mln 10-yr bond yield 6.87 Month-to-date $385.27 mln $4.56 bln Year-to-date $8.37 bln $18.00 bln 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 = 64.58 Indian rupees) (Compiled by Benny Thomas in Bengaluru)
