MORNING NEWS CALL

FACTORS TO WATCH 11:00 am: Budget session of parliament continues in New Delhi. 2:30 pm: RBI releases monetary policy statement in Mumbai. 2:45 pm: RBI media interaction after release of monetary policy statement in Mumbai. 4:30 pm: RBI holds teleconference call with analysts in Mumbai. 4:45 pm: Union Bank of India third quarter earnings conference in Mumbai. 6:10 pm: Federal cabinet likely to meet in New Delhi. LIVECHAT- CHARTING FOREX Take a look at the FX charts with Reuters technical analyst Martin Miller at 4:30 pm. To join the conversation,click here. INDIA TOP NEWS Tata Steel reports first profit in five quarters, tops estimates Tata Steel Ltd reported its first profit in five quarters on Tuesday helped by higher sales of industrial products and steel for the auto sector and a rise in exports despite India's surprise ban on high-value currency notes which hurt several sectors. Punjab National Bank Q3 net profit surges; bad loans stable Punjab National Bank, India's fifth-biggest lender by assets, reported on Tuesday a surge in third-quarter profit on lower provisions for bad loans, but the profit fell short of analysts' expectations. IDBI Bank sees bad loans rising in next quarters IDBI Bank expects bad loans will rise in the coming quarters and it may have to go slow new lending to conserve capital, a senior executive said, as the state-run lender reported a $335 million third-quarter loss. India raises $995 mln from stake sale in ITC-sources India has sold a 2 percent stake in consumer goods and cigarettes maker, raising about $995 million for the government, three sources with direct knowledge of the deal said on Tuesday. POLL-Indian rupee to weaken to record low over the coming year India's rupee will reverse recent gains and sink to a record low in the coming year on expectations for a rise in the dollar even though U.S. President Donald Trump has made clear his dislike of a strong currency, a Reuters poll found. PREVIEW-India cenbank seen cutting rates, but it will be a close call India's falling inflation rate gives the central bank room to cut its policy rate to a more than six-year low to help an economy hit by a crackdown on cash. IT firm Infosys' founders raise governance concerns with board - CNBC The founders of Infosys Ltd, India's second-biggest software services exporter, have informed the company's board that they have certain corporate governance concerns, according to a CNBC-TV18 report late on Tuesday. Modi says cash crackdown is a fight for the poor Indian Prime Minister Narendra Modi on Tuesday defended his decision to abolish high denomination bank notes that has left the economy reeling, calling it a "fight" for the poor. Kia close to finalising Andhra Pradesh state for 1st India car plant -source South Korea's Kia Motors is close to finalising the southern state of Andhra Pradesh as the site for its first factory in the country, as it speeds up efforts to start production in the fast-growing market, a source familiar with the matter said.

REUTERS INDIA EDITION Wednesday, February 8, 2017

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MORNING NEWS CALL - INDIA EDITION February 8, 2017

GLOBAL TOP STORIES Appeals court presses Trump administration on travel ban President Donald Trump's order temporarily banning U.S. entry to people from seven Muslim-majority countries came under intense scrutiny on Tuesday from a federal appeals court that questioned whether the ban unfairly targeted people over their religion.. BOJ sees improvements in economy but warns on inflation expectations Bank of Japan board members saw improvements in exports, consumer spending and capital expenditure but warned that it may take time for inflation expectations to pick up, a summary of opinions from their Jan. 30-31 meeting. Disney CEO Iger says he is open to extending his term Chief Executive Bob Iger said on Tuesday he is open to extending his term as the head of Walt Disney Co, offering investors a sign of potential stability at the media company as it reported a dip in quarterly advertising at ESPN. STATE OF THE MARKETS The SGX Nifty Futures were at 8,777.00, down 0.24 pct from its previous close. The Indian rupee is poised to open higher against the dollar, as expectations of a rate cut by the nation’s Monetary Policy Committee will likely support domestic investor sentiment. The rupee ended at 67.41 to the dollar yesterday, its lowest since Feb.1 and its first decline in 10 sessions. -NewsRise Indian sovereign bonds will likely trade steady ahead of the Monetary Policy Committee decision later today. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.41 pct-6.45 pct band till the policy decision at 2:30 p.m. today. The bond had closed at 103.80 rupees, yielding 6.43 pct, yesterday.-NewsRise The S&P 500 ended barely higher on Tuesday while the Nasdaq managed to scratch out a new record as gains in big tech names countered energy declines. Asian shares dipped from four-month highs and the euro was pressured as lingering political and economic uncertainty in the United States and Europe sapped investor confidence. U.S. Treasury yields fell to their lowest in nearly three weeks on Tuesday, drifting past significant technical levels, as fixed-income investors worried that President Donald Trump's pro-growth policies could be hamstrung by his focus on other issues. Oil prices dropped to extend falls from the previous day, as a massive increase in U.S. fuel inventories and a slump in Chinese demand implied that global crude markets remain oversupplied despite OPEC-led efforts to cut output. Gold slipped from near three-month highs hit in the previous session, easing on a stronger dollar amid political and economic uncertainty in the United States and Europe.

CLOSE FII INVESTMENTS EQUITIES DEBT

PNDF spot 67.34/67.37 February 7 $29.85 mln $113.34 mln

10-yr bond yield 6.75 pct Month-to-date $141.56 mln $709.53 mln

Year-to-date $135.17 mln $597.45 mln

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MORNING NEWS CALL - INDIA EDITION February 8, 2017

PICTURE OF THE DAY

A worker hangs dyed yarn to dry at a textile mill on the outskirts of Agartala, India, February 7. REUTERS/Jayanta Dey

(Compiled by Erum Khaled in Bengaluru) For questions or comments about this report, contact: reuters.marketwatch@thomsonreuters.com For more information about our products: thomsonreuters.com/products_services Or send us a sales enquiry at: thomsonreuters.com/products_services/financial/contactus/ or call us on North America: +1 800 758 5555 You may instruct us to remove you from Morning News Call by clicking on the link - https://forms.thomsonreuters.com/MorningNewsCall/Unsubscribe/

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