To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_07212017.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 9:30 am: Railways Minister Suresh Prabhu to attend Railtech-2017 by Assocham in New Delhi. 9:30 am: Organisation of Pharmaceutical Producers of India Summit in Mumbai. 10:00 am: Bajaj Auto earnings call in Mumbai. 10:30 am: Railways Minister Suresh Prabhu and Telecom Minister Manoj Sinha to attend cyber security conference in New Delhi. 10:30 am: Central Board of Excise and Customs Chairperson Vanaja N Sarna to address FICCI conference in New Delhi. 11:00 am: Monsoon session of the Parliament continues in New Delhi. 11:00 am: Reliance Industries annual shareholders meeting in Mumbai. 11:15 am: Food Minister Harsimrat Kaur Badal to address World Food India 2017 in Mumbai. 12:30 pm: Power Minister Piyush Goyal to attend signing of PPA under First Wind Auction Scheme in New Delhi. 2:30 pm: Junior Farm Minister Parshottam Rupala to attend workshop on drought management in New Delhi. 3:15 pm: IT Minister Ravi Shankar Prasad to attend Global Conference on Cyberspace in New Delhi. 6:15 pm: Finance Minister Arun Jaitley to launch Pradhan Mantri Vaya Vandana Yojana in New Delhi.
GMF: LIVECHAT - G7 FX CHARTING Despite staging a minor short-covering rebound initially this week, the greenback tumbled broadly on a spectacular rally in the euro yesterday, knocking the DXY to a fresh 10-month trough of 94.09. Will the USD continue its recent losing streak next week or will it make an attempt to rally in a very short (USD) market in holiday-thinned August month. Wilson Leung, Chief Market Strategist, Trendsetter, joins us at 9:00 am IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • Reliance Industries' Q1 standalone profit up 9 percent, tops estimates Oil-to-telecoms conglomerate Reliance Industries posted a nine percent rise in first-quarter standalone profit on Thursday, helped by higher margins from its core petrochemicals business.
• Wipro announces up to $1.7 billion share buyback as Q2 forecast disappoints Wipro, India's third-largest software services exporter, announced an up to 110 billion rupee share buyback on Thursday, overshadowing a tepid revenue forecast that fell short of market expectations.
• Jet Airways cutting junior pilot pay to trim costs -sources Jet Airways, India's second-largest airline by market share, plans to slash pay of dozens of its junior pilots by as much as 50 percent in a cost-cutting move, according to two sources and letters seen by Reuters.
• Low caste leader elected president in boost for Modi coalition Ram Nath Kovind, a low-caste politician backed by the ruling Hindu nationalist-led coalition, easily won India's presidential election on Thursday, tightening the government's hold on positions of power.
• Hindustan Zinc quarterly profit rises 81 percent Hindustan Zinc, India's biggest zinc miner, posted an 81 percent jump in quarterly profit on Thursday, boosted by higher income from zinc operations and an increase in the metal prices.
• Kotak Mahindra Bank Q1 net profit rises 23 percent Kotak Mahindra Bank KTKM.NS, India's fourth largest private sector lender by assets, posted a 23 percent jump in its first-quarter net profit, helped by higher interest and fee income.
• Bajaj Auto Q1 profit falls about 6 percent Bajaj Auto posted a 5.6 percent fall in quarterly profit on Thursday as sales were hit by the changeover to BS-IV compliant vehicles and the transition to the new Goods and Services Tax (GST).
• Refiner HPCL sees more scope for foreign buys after ONGC deal State refiner Hindustan Petroleum sees itself better placed to buy overseas downstream assets once it becomes part of the country's top explorer Oil and Natural Gas Corp, its chairman M. K. Surana said.
GLOBAL TOP NEWS • U.S. toughens stance on foreign deals in blow to China's buying spree A secretive U.S. government panel has objected to at least nine acquisitions of U.S. companies by foreign buyers so far this year, people familiar with the matter said, a historically high number that bodes poorly for China's overseas buying spree.
• No Korean military talks after North snubs South's call South Korea's proposed military talks aimed at easing tension between the two Koreas planned for Friday failed to happen after the North snubbed the call, a setback for new President Moon Jae-in's hopes for dialogue.
• Microsoft profit beats expectations on strong cloud demand Microsoft on Thursday reported strong fourth-quarter earnings on the back of its fast-growing cloud computing business, stoking optimism that the once-stagnant company has found a new groove.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures were at 9,895.00, flat from previous close.
• The Indian rupee is likely to edge higher against the dollar in opening trade, underpinned by the euro’s multi-month rally against the greenback after European Central Bank Chief Mario Draghi said it will start discussing changes to its bond-buying programme later this year.
• Indian government bonds are likely to trade steady as investors await fresh supply of papers through the weekly debt sale today. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.44 percent-6.47 percent band.
GLOBAL MARKETS • Stocks ended little changed on Wall Street on Thursday as a deal between Sears and Amazon weighed on home improvement retailers while gains in Microsoft helped buoy the Nasdaq.
• The euro held near two-year highs against the dollar after the head of the European Central Bank said tapering of its stimulus will be on the table this autumn, while a solid global economic outlook kept Asian share prices near decade highs.
• The dollar headed for weekly losses, wallowing at its lowest levels against the euro in nearly two years after European Central Bank chief Mario Draghi said policymakers would discuss changing its bond-buying programme in the autumn.
• U.S. government debt yields were little changed on Thursday as buying tied to the European Central Bank's pledge of easy money stemming from inflation concerns faded after a poor auction of 10-year Treasury Inflation-Protected Securities.
• Oil prices were little changed ahead of a key meeting of major oil producing nations next week, sitting below the $50 per barrel level that was briefly breached for the first time in 6 weeks in the previous session.
• Gold held steady early and was on track for a second consecutive weekly gain after easing from a three-week high hit in the previous session.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.41/64.44 July 20 -- $107.73 mln 10-yr bond yield 6.8 pct Month-to-date $210.76 mln $1.96 bln Year-to-date $8.80 bln $19.96 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 = 64.43 Indian rupees) (Debanjan Bose in Bengaluru)
