Morning News Call - India, June 27

·5 min read

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INDIA TOP NEWS • India plans safety rating system for passenger cars India will introduce a safety rating system for passenger cars - a measure it hopes will encourage manufacturers to provide advanced safety features and will boost the "export worthiness" of vehicles produced in the country. • RBI deputy governor Patra expects inflation to breach 6% for three quarters India's retail inflation is likely to breach the mandated inflation target band of 2-6% for three straight quarters but is showing indications of peaking, Reserve Bank of India deputy governor Michael Patra said on Friday. • India inflation likely to exceed top of RBI band until December, governor says India's central bank is on course to bring down prices but the retail inflation rate is likely to remain above the top end of its mandated target band until December, Governor Shaktikanta Das said in an article in the Times of India on Friday. • Ant Group-backed Zomato beefs up quick delivery game with bigger Blinkit stake Indian food-delivery firm Zomato is set to buy local grocery-delivery startup Blinkit for 44.47 billion rupees in an all-stock deal, in a bid to step up its game as competition in the quick-delivery market gets fierce. • Toyota, Suzuki take hybrid route in India for local, global markets Toyota Motor and Suzuki Motor on Friday said they would begin production of hybrid vehicles in India, a category that Toyota has said is currently best suited to such markets. • ANALYSIS-Food export bans, from India to Argentina, risk fueling inflation India is one of at least 19 countries that have introduced food export restrictions since the war in Ukraine sent prices soaring, hampering international trade flows for several agricultural products and sparking violent protests in some developing nations. • India's rice planting down 46% from last year, likely to pick up Indian farmers have planted 1.96 million hectares with summer-sown rice so far, farm ministry data showed on Friday, down 46% from last year mainly due to a weak start to the monsoon. • Dubai's Emaar says it's aware of report CEO detained in India Dubai's Emaar Properties is aware of a media report that its Group Chief Executive Amit Jain has been detained in India, a spokesperson for the company said on Saturday. GLOBAL TOP NEWS • Russian forces turn sights on Lysychansk in battle for eastern Ukraine Russian forces were fighting to achieve one of their strategic objectives in Ukraine as Moscow-backed separatists said they were pushing into Lysychansk, the last major city still held by Ukrainian troops in eastern Luhansk province. • China's industrial profits slump for second month in May Profits at China's industrial firms shrank at a slower pace in May following a big slump in April, due to the resumption of activity in major manufacturing hubs, but COVID-19 curbs still weighed on factory production and squeezed factory margins. • Biden urges G7 to stay together as leaders target Russian gold U.S. President Joe Biden told allies "we have to stay together" against Russia on Sunday as G7 leaders gathered for a summit dominated by war in Ukraine and its impact on food and energy supplies and the global economy. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 1.1% higher at 15,878. • The Indian rupee is expected to rise versus the dollar as easing U.S. Federal Reserve rate hike expectations boost Asian currencies and shares. • Indian federal government bond yields will likely open largely unchanged today as investors await fresh triggers. The yield on the benchmark 6.54% bond maturing in 2032 is likely to trade in a 7.41%-7.47% band today. GLOBAL MARKETS • Wall Street's main indexes soared on Friday in a broad rally as signs of slowing economic growth and a recent pullback in commodity prices tempered expectations for the Federal Reserve's rate-hike plans. • Stocks gained in Asia amid improved risk sentiment after Wall Street rebounded strongly at the end of last week as oil prices eased, tempering fears of prolonged inflation and the accompanying aggressive Federal Reserve tightening. • The dollar found support from investors worried about recession and seeking safety to hold just below a two-decade high, having slipped late last week after downbeat U.S. economic data reduced bets on U.S. interest rate hikes. • U.S. Treasury yields rose from two-week lows on Friday as investors weighed the likelihood that the Federal Reserve will spark an economic downturn as it aggressively hikes interest rates in a bid to stem soaring inflation. • Oil prices slipped more than $1 a barrel as global economic concerns depressed the oil demand outlook while investors eyed the G7 meeting this week for possible moves on Russian oil exports and a revival of the Iran nuclear deal. • Gold prices gained, as news of some Western nations planning to officially ban imports of the metal from Russia for its invasion of Ukraine sparked some interest in bullion. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 78.25/78.27 June 24 (2,010.39) crores (180.83) crores 10-yr bond yield 7.444% Month-to-date (45,841) crores 926 crores Year-to-date (2,12,996) crores (12,530) crores (FII investment numbers are in Indian rupees. Source: National Securities Depository Limited) 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 = 78.24 Indian rupees) (Compiled by Benny Thomas in Bengaluru)

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