MORNING NEWS CALL

FACTORS TO WATCH

No major events scheduled for the day.

TRADING INDIA FORUM - INDIA CURRENCY, DEBT AND EQUITY MARKETS

With the INR now the worst performing currency in Asia, suspicious eyes have turned to the equity markets. How will

they fare going forward into election year? We speak to well-known market expert Venkatraman Anantha Nageswaran,

Independent Consultant at Vansinght Pvt. Ltd. To join the conversation at 11:00 pm IST, click here

Thomson Reuters/INSEAD Asian Business Sentiment Survey 2018Q3

Confidence among Asian companies slumped to the weakest in almost three years in the third quarter as businesses

feared blowback from a worsening global trade war, a Thomson Reuters/INSEAD survey showed. To read more, click

here. Reuters reporter Gayatri Suroyo will be taking questions on the survey from 10:00 am IST (04:30 am GMT) in the

Global Markets Forum community chatroom. To join the conversation, click here

INDIA TOP NEWS

EXCLUSIVE-India, U.S. closing in on package deal to remove trade irritants

Indian farmers and U.S. manufacturers of medical devices could be among the main winners in a trade package under

negotiation, as Washington and New Delhi look to remove long-standing irritants to ties, sources familiar with the talks

said.

EXCLUSIVE-Indian police scrutinize major law firm in PNB fraud probe after documents moved

India's largest law firm, Cyril Amarchand Mangaldas (CAM), is being scrutinized by federal agents after they seized

documents related to the $2 billion fraud at state-run Punjab National Bank from CAM’s premises in February, a lawyer

representing the government and a police source told Reuters.

India's struggle to defend rupee shifts focus to rate hikes

Investors have increased bets that India's central bank will need to raise interest rates at least two more times this year

to shore up the battered rupee after previous efforts to defend the currency failed to sway markets.

EXCLUSIVE-Nestle, Unilever, Coke make bids in $4 billion-plus GSK India sale-sources

Nestle, Unilever and Coca-Cola are among bidders for GlaxoSmithKline's Indian Horlicks nutrition business, expected to

fetch more than $4 billion, four people familiar with the matter said.

India delays imposition of retaliatory tariffs on U.S. goods till November 2

India has delayed the implementation of higher tariffs on some goods imported from the United States to Nov. 2,

according to a government order that put off for a second time retaliatory action against U.S. import tariffs on steel and

aluminium.

India sees rupee at 72-73 against dollar as "fair value" -finmin source

India sees rupee value of 72-73 against the U.S. dollar as "fair value," a senior finance ministry source said on Tuesday,

after the government announced a raft of measures last week to stabilise the falling local currency.

CCI fines sugar mills for rigging bids in tender: govt

India's antitrust regulator has imposed penalties on sugar mills for rigging bids in a joint tender floated by state fuel

retailers to buy ethanol for blending with petrol, the finance ministry said on Tuesday.

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India's Ola forays into New Zealand in latest overseas push

Indian ride-hailing platform Ola said on Tuesday it plans to launch operations in New Zealand, and expand its overseas

rivalry with U.S.-based peer Uber.

GLOBAL TOP STORIES

BOJ holds policy, sticks to modest economic growth view despite trade perils

The Bank of Japan kept monetary policy steady and maintained its view the economy will continue to expand modestly,

even as escalating global trade frictions threaten to chill growth.

China will use trade war with U.S. to replace imports: state media

China is not afraid of “extreme measures” the United States is taking in their trade war and will use it as an opportunity

to replace imports, promote localization and accelerate the development of high-tech products, state media said.

North Korea to allow international inspections for nuclear dismantlement, if U.S. takes reciprocal measures

North Korea agreed to allow internatonal inspectors to observe a "permanent dismantlement" of its key missile facilities,

and will take additional steps such as closing its main Yongbyon nuclear complex if the United States takes reciprocal

measures, South Korea's President Moon Jae-in said.

STATE OF THE MARKETS

SGX Nifty nearest-month futures were trading up 0.1 percent at 11,322.50, from its previous close. -NewsRise

The Indian rupee is expected to rebound from record lows against the dollar after China’s response to the latest U.S.

tariffs did not have a major impact on regional assets. -NewsRise

Indian government bonds may trade steady in early session today, as the local currency is expected to appreciate

against the dollar, even as U.S. Treasury yields remain elevated. The yield on the benchmark 7.17 percent bond

maturing in 2028 may trade in a band of 8.12 percent-8.17 percent today, a dealer with a private bank said. -NewsRise

Wall Street rebounded on Tuesday in a broad-based rally as investors brushed aside intensifying trade rhetoric

between the United States and China.

Asian stocks rose and U.S. Treasury yields hovered near four-month highs, as investors looked past the latest

escalation in the U.S.-China trade conflict, seen by some market participants as less severe than expected.

The Japanese yen weakened to near-two-month lows against the dollar as financial markets took fresh U.S. tariffs on

Chinese goods in their stride and as U.S. bond yields shot up to four-month highs on fears of rising inflation.

U.S. Treasury yields rose on Tuesday, as investors continued to price in more interest rate increases by the Federal

Reserve this year and next and amid a heavy corporate bond schedule this week.

Oil prices pulled back from gains racked up the previous day, pushed down amid a surprise climb in U.S. crude

stockpiles.

Gold prices edged up as the dollar weakened despite another round of tit-for-tat tariffs in the Sino-U.S. trade dispute.

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South Korean President Moon Jae-in and North Korean leader Kim Jong Un wave during a car parade in Pyongyang, North Korea, September 18. Pyeongyang Press Corps/Pool

(Morning News Call - India edition will not be published on Thursday, September 20 as markets are closed for Muharam)

PICTURE OF THE DAY

CLOSE FII INVESTMENTS EQUITIES DEBT

PNDF spot 72.72/72.75 September 18 -$157.36 mln -$31.15 mln

10-yr bond yield 8.14 pct Month-to-date -$79.78 mln -$846.66 mln

Year-to-date -$937.24 mln -$5.99 bln