GMF: LIVECHAT - INDIA MARKETS & POLICY POST-ELECTIONS Siddhartha Rastogi, Managing Director at Ambit Capital Asset Management, will discuss his expectations on Indian markets and fiscal policy after final voting ends on Sunday evening and exit polls start coming out at 11:00 am IST. To join the conversation, click on the link: https://www.refinitiv.com/en/products/eikon-trading-software/eikon-messenger-secure-messaging/editorial-communities-financial-forums INDIA TOP NEWS • Modi set to return to power with a bigger majority, exit polls show Indian Prime Minister Narendra Modi is likely to return to power with an even bigger majority in parliament after a mammoth general election that ended on Sunday, exit polls showed, a far better showing than expected in recent weeks.
• IndiGo's co-founder not intent on taking control of company: CEO One of the co-founders of India's largest airline IndiGo has no plans of taking control of the carrier, its Chief Executive said on Saturday, two days after parent InterGlobe Aviation shares fell over a media report about alleged differences between the co-founders.
• Spencer's Retail to buy Nature's Basket in $43 million deal India's Spencer's Retail will buy upmarket grocery chain Nature's Basket from Godrej Industries for 3 billion rupees, the companies said on Friday.
• Modi’s jobs deficit: J&J’s largest India plant idle 3 years after completion It was supposed to be Johnson & Johnson's biggest manufacturing plant in India. It was to eventually employ at least 1,500 people and help bring development to a rural area near Hyderabad in southern India. Yet, three years after the U.S. healthcare company completed construction of production facilities for cosmetics and baby products on the 47-acre site, they stand idle.
GLOBAL TOP NEWS • Saudi Arabia says oil producers want to reduce inventories Saudi Energy Minister Khalid al-Falih said on Sunday there was consensus among OPEC and allied oil producers to drive down crude inventories "gently" but his country would remain responsive to the needs of what he called a fragile market.
• Weak spending overshadows Japan's surprise first quarter economic expansion Japan's economic growth unexpectedly accelerated in January-March, driven by net contributions from exports and defying forecasts for a contraction in the world's third-largest economy.
• Google suspends some business with Huawei after Trump blacklist: source Alphabet's Google has suspended business with Huawei that requires the transfer of hardware, software and technical services except those publicly available via open source licensing, a source familiar with the matter told Reuters on Sunday, in a blow to the Chinese technology company that the U.S. government has sought to blacklist around the world.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures 2.3% higher at 11,693.00.
• The Indian rupee is expected to open higher against the dollar after most exit polls forecast a second term for Prime Minister Narendra Modi.
• Indian government bonds are expected to rise sharply after exit polls predicted Prime Minister Narendra Modi’s ruling National Democratic Alliance is likely to win a majority in the parliament's lower house. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 7.22%-7.30% today, a trader with a state-run bank said.
GLOBAL MARKETS • Wall Street ended lower on Friday as continuing trade tensions pulled industrial and tech shares down, and the Dow capped a fourth straight week of losses in its longest weekly losing streak in three years.
• Share markets in Asia got off to a steady start as investors tried to catch their breath following another week of escalating trade tensions between the United States and China.
• The Australian dollar got a boost against the greenback following a surprise election victory by the country's conservative government, while the yen dipped slightly on a recovery in market sentiment.
• Trade tension between the United States and China ratcheted up again on Friday, pushing Treasury yields slightly lower as traders sought safety in high-quality assets.
• Oil rose to multi-week highs after OPEC indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East.
• Gold steadied after four days of falls, as a Sino-U.S. trade dispute aggravated by a Huawei ban and U.S. President Donald Trump's latest threat to Tehran fuelled interest in the safe-haven metal.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 70.18/70.21 May 17 -$150.55 mln -$88.90 mln 10-yr bond yield 7.36% Month-to-date -$546.55 mln -$157.88 mln Year-to-date $9.22 bln -$2.72 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 = 70.28 Indian rupees) (Compiled by Karthick Arvinth in Bengaluru)
