MORNING NEWS CALL

FACTORS TO WATCH

No major events are scheduled. LIVECHAT - EUROPE FOCUS We will be chatting with Derek Halpenny, European head of Global Markets research at MUFG Bank at 4:30 pm IST, to find out what lies in the future for Europe and the global economy. To join the conversation, click here INDIA TOP NEWS India's trade deficit narrows, flat exports a concern India's trade deficit narrowed to $13.08 billion in December, the lowest in 10 months, on a fall in gold imports but exports remained flat, deepening concerns for Prime Minister Narendra Modi who wants to accelerate growth ahead of elections. Qatar Airways CEO: not interested in Jet Airways as backed by 'enemy' state Qatar Airways will not buy a stake in Jet Airways as a substantial portion of the debt-laden Indian carrier is held by Etihad Airways, whose owner Abu Dhabi is an "enemy" of Qatar, its CEO Akbar al-Baker said on Tuesday. Vedanta tells top English court pollution case should be heard in Zambia Lawyers for Vedanta Resources told England's Supreme Court on Tuesday that a case raised against the mining company by nearly 2,000 Zambian villagers should be heard in Zambia not London. GLOBAL TOP STORIES Brexit bedlam: May's EU divorce deal crushed by 230 votes in parliament British lawmakers defeated Prime Minister Theresa May's Brexit divorce deal by a crushing margin on Tuesday, triggering political chaos that could lead to a disorderly exit from the EU or even to a reversal of the 2016 decision to leave. Japan's November machinery orders stall in worrying sign over business spending Japan's core machinery orders slowed sharply in November in a sign corporate capital expenditure could lose momentum as a bruising U.S.-China trade war spills into the global economy. USTR promises exclusion process for higher tariffs if China talks fail U.S. Trade Representative Robert Lighthizer has assured lawmakers that companies will be able to request exclusions on tariffs on $200 billion worth of goods under discussion with Beijing if talks do not yield a deal by the March 2 deadline. STATE OF THE MARKETS SGX Nifty nearest-month futures were trading 0.2 percent lower at 10,926.50 from its previous close. -NewsRise The rupee is expected to open little changed against the dollar after India’s trade deficit narrowed to a 10-month low, offsetting broad strength in the U.S. currency. -NewsRise Indian government bonds are expected to edge higher in early trade on the central bank’s announcement of open market note purchase. The yield on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.45 percent - 7.50 percent band today. -NewsRise U.S. stocks rose on Tuesday as technology and internet stocks gained on Netflix Inc's plans to raise fees for U.S. subscribers and hopes of more stimulus for China's slowing economy fostered a risk-on mood among investors.

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Asian shares took a breather after rallying the previous day on Chinese stimulus hopes, with investors assessing Brexit options after British lawmakers trounced Prime Minister Theresa May's deal to pull out Britain from the European Union. The pound steadied following a volatile overnight session after British lawmakers defeated Prime Minister Theresa May's Brexit divorce deal by a crushing margin. U.S. Treasury yields edged higher in choppy trading on Tuesday on prospects for a resolution concerning Britain's exit from the European Union despite being rejected by British lawmakers. Oil prices dipped on increasing signs of a global economic slowdown, although OPEC-led supply cuts helped support Brent crude above $60 per barrel. Gold held steady, supported by uncertainty around Brexit, after lawmakers voted down British Prime Minister Theresa May's deal to leave the European Union, and hopes for a rate hike pause by the U.S. Federal Reserve.

CLOSE FII INVESTMENTS EQUITIES DEBT

PNDF spot 71.09/71.12 January 15 $22.51 mln -$236.48 mln

10-yr bond yield 7.47 pct Month-to-date -$449.05 mln -$508.33 mln

Year-to-date --- ---

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PICTURE OF THE DAY

Devotees prepare rice dishes to offer to the Hindu sun god as they attend Pongal celebrations early morning on a roadside in Mumbai, India, January 15. REUTERS/Francis Mascarenhas