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Morning News Call - India, June 15


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    FACTORS TO WATCH
    -- No major events are scheduled.

    PROMOTION
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
    Ole Hansen, Head of Commodity Strategy at Saxo Bank, discusses the outlook for
oil and gas markets, the moves on dollar and gold and the impact of war and other
events on food prices. To join the conversation at 3:30 pm IST, click here https://www.refinitiv.com/en/products/refinitiv-messenger/global-markets-forum


    INDIA TOP NEWS
    -- India's wholesale price inflation runs at 30-year high, makes rate hikes more
likely
    High global energy and raw material prices combined with a weak rupee fueled
the fastest annual rise in India's wholesale prices in more than 30 years, raising
expectations for the central bank to order more interest rate hikes.
   -- TotalEnergies to buy 25% stake in India's Adani New Industries in green push
    French energy major TotalEnergies will buy a 25% stake in Adani New Industries
Ltd, as part of a deal with Adani Enterprises to develop the world's biggest green
hydrogen ecosystem, the companies said on Tuesday.
   -- India's May palm oil imports drop 10% as Indonesia curbs exports
    India's palm oil imports in May fell 10% from a month ago as top producer
Indonesia curbed exports of the edible oil, a trade body said on
Tuesday.
    -- Tesla India policy executive quits after company puts entry plan on hold
-sources
    A key executive who was leading Tesla's lobbying effort in India has resigned,
weeks after the U.S. carmaker put on hold plans to sell electric cars in the South
Asian nation, two sources aware of the matter told Reuters.
   -- Sequoia raises $2.85 billion in India, Southeast Asia funds
    Sequoia Capital has raised $2.85 billion to fund Indian and Southeast Asian
startups, the venture capital firm said on Tuesday, looking beyond current weakness
in investment in new companies in the region.
   -- IPL broadcast deal fetches $6.2 billion; Disney, Viacom18 bag rights
    U.S. media behemoth Walt Disney and Indian conglomerate Reliance Industries
were the major winners in a high-stakes bid to broadcast the IPL, the world's
richest cricket league, for the next five years in deals fetching the organisers
$6.2 billion.
   -- India overhauls military recruitment, seeking younger troops
    India's military is overhauling its recruitment process for personnel below
officer rank, aiming to deploy fitter, younger troops on its front lines, many of
them on shorter contracts of up to four years, defence officials said on
Tuesday.
   -- Protests by Indian Muslims continue, as lawyers condemn state response
    Thousands of Muslims marched in the eastern Indian city of Kolkata on Tuesday
in a second week of protests, while six prominent former judges said a state
government had acted illegally by demolishing the house of a Muslim
activist.


    GLOBAL TOP NEWS
    -- China's factories perk up, but weak consumption points to sluggish economic
recovery
    China's economy stabilised somewhat in May after a sharp slump the previous
month as industrial production rose unexpectedly, but consumption was still weak
and underlined the challenge for policymakers amid the persistent drag from strict
COVID curbs.
    --U.S. rate markets price in aggressive 75-bps hike on Wednesday
    Investors have dramatically raised their bets that the U.S. Federal Reserve
will raise interest rates by 75 basis points (bps) rather than 50 bps on Wednesday,
a swing in expectations which has fuelled a violent selloff across world markets.

    -- U.S. rebuffs China by calling Taiwan Strait an international waterway
The United States on Tuesday backed Taiwan's assertion that the strait separating
the island from China is an international waterway, a further rebuff to Beijing's
claim to exercise sovereignty over the strategic passage.


    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    -- SGX Nifty nearest-month futures were trading 0.1% lower at 15,702.50.
    -- The Indian rupee is likely to remain little changed to the dollar at open
amid expectations that the U.S. Federal Reserve will go for the biggest interest
rate increase since 1994.
    -- Indian federal government bond yields will likely open little changed as
investors today eye monetary policy decision in the United States. The yield on the
benchmark 6.54% bond maturing in 2032 is likely to trade in a 7.55%-7.61% band
today.


    GLOBAL MARKETS
    -- U.S. stocks on Tuesday extended losses from a bruising previous session in
which the S&P 500 confirmed a bear market as investors braced for an aggressive
interest rate hike by the Federal Reserve this week.
    -- Asian markets were in a pensive mood as shell-shocked investors waited to see
just how aggressive the Federal Reserve would be on rates, with many fearing
drastic action would risk tipping the world into recession.
    -- The dollar held near its overnight 20-year peak ahead of the outcome of the
Federal Reserve policy meeting at which markets are pricing in an outsized 75 basis
point interest rate hike as policymakers try to rein in rampant inflation.
    -- U.S. Treasury yields climbed to their highest levels in a decade on Tuesday
as investors raised bets that the Federal Reserve will hike rates by 75 basis
points when it concludes its two-day meeting on Wednesday.
    -- Oil prices dropped on worries over fuel demand ahead of a U.S. Federal
Reserve meeting which is expected to see the central bank to hike rates by at least
75 basis points to combat inflation.
    -- Gold prices were lifted from near one-month lows by weaker Treasury yields,
ahead of a potentially aggressive interest rate hike from the U.S. Federal Reserve
as it seeks to combat inflation amid mounting fears of an impending
recession.


                   CLOSE        FII INVESTMENTS  EQUITIES           DEBT
 PNDF spot         78.03/78.05  June 14          (3,566.08) crores  (330.11) crores
 10-yr bond yield  7.581%       Month-to-date    (20,636) crores    (2,609) crores
                                Year-to-date     (1,87,791) crores  (16,065) 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 = 77.99 Indian rupees )



 (Compiled by Paulose Joseph)

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