MORNING NEWS CALL

FACTORS TO WATCH

10:00 am: Prime Minister Narendra Modi at an interactive session with students in New Delhi. LIVECHAT - FRONTIER MARKETS We will chat with Gavin Serkin, Managing Editor of Frontier Funds Media & Intelligence at 4:30 pm IST, to discuss all things frontier markets. To join the conversation, click here INDIA TOP NEWS JSW Steel, Duferco in talks on landmark steel pre-payment deal Indian conglomerate JSW Steel and global trading firm Duferco are in advanced talks on a five-year cash-for-steel prepayment deal, four sources familiar with the matter said, in a rare move for the industry. Jet Airways seeks shareholder approval for debt to equity swap Jet Airways said on Monday it would seek shareholder approval next month to convert existing debt into equity, part of efforts by the cash-strapped Indian airline to resolve its financing problems. Snapdeal backs India's e-commerce curbs, assures compliance Even as India's new e-commerce curbs sting global giants Amazon.com and Walmart-owned Flipkart, their local rival Snapdeal is cheering the move. Bank of India aims for Q4 profit as it tackles bad loans Bank of India aims to return to profit in the January-March quarter as it focuses on reducing bad loans, its chief executive said on Monday, after the state-run lender logged its biggest quarterly loss since at least 2005. Canara Bank December-quarter profit soars 152 percent Canara Bank reported a 152.5 percent surge in quarterly net profit on Monday, buoyed by higher interest income and a write-back of provisions made for mark-to-market losses. Tata Power quarterly profit dives nearly 79 percent Tata Power Co's quarterly profit plunged nearly 79 percent, well below market expectations, dented by higher expenses. Zee Entertainment rebounds as co denies demonetisation-linked deposits Shares of Zee Entertainment Enterprises clawed back on Monday from a 33.5 percent plunge in the previous session, after the company denied any role in demonetisation-related transactions that are being probed by an Indian watchdog.

India's Modi seen appeasing voters, putting reforms aside in pre-election budget

Desperate for five more years in power, India's Hindu nationalist government will woo rural and urban middle-class

voters with farm relief measures and tax cuts, said officials privy to plans for the final budget before a general election.

GLOBAL TOP STORIES U.S. charges China's Huawei with conspiring to violate Iran sanctions The United States on Monday announced criminal charges against China's Huawei Technologies Co Ltd, escalating a fight with the world's biggest telecommunications equipment maker and coming days before trade talks between Washington and Beijing. Japan cuts view of exports as U.S.-China trade war hurts trade Japan has cut its assessment of exports in January for the first time in three months due to the trade war between the United States and China in a warning that the fallout is spreading to the world's third-largest economy.

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U.S. shutdown costs pegged at $3 billion as government reopens The U.S. economy was expected to lose $3 billion from the partial federal government shutdown over President Donald Trump's demand for border wall funding, congressional researchers said on Monday as 800,000 federal employees returned to work after 35 days without pay. STATE OF THE MARKETS SGX Nifty nearest-month futures were trading 0.2 percent lower at 10,665.00 from its previous close. -NewsRise The Indian rupee is likely to open little changed against the dollar after Brent crude suffered the biggest decline in a month, offsetting the expected month-end dollar demand and tepid risk appetite. -NewsRise Indian government bonds are expected to edge higher in early trade tracking an overnight plunge in crude oil prices although trade may remain choppy ahead of the nation's interim budget due this week. The yield on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.52 percent - 7.57 percent band today. -NewsRise U.S. stocks tumbled on Monday after warnings from Caterpillar Inc and Nvidia Corp added to concerns about a slowing Chinese economy and tariffs taking a bite out of U.S. corporate profits. Asian shares stumbled and the dollar hovered near two-week lows as prospects for a long-awaited Sino-U.S. trade deal was dealt another blow after the United States levelled sweeping criminal charges against China's telecom giant Huawei. The safe-haven yen firmed after the U.S. Justice Department charged China's Huawei Technologies Co Ltd with fraud, ratcheting up U.S.-Sino trade tensions and prompting investors to ditch risky assets. U.S. Treasury bond prices rose on Monday, sinking yields, after $162 billion of new debt sold to strong demand. Oil prices crept higher after the U.S. government slapped sanctions on Venezuela's state-owned oil firm PDVSA in a move aimed at severely curbing the OPEC member's crude exports to the United States. Gold edged up, as the dollar weakened ahead of a two-day U.S. Federal Reserve meeting, which will likely keep interest rates steady, and on worries over a rise in Sino-U.S. trade tensions.

CLOSE FII INVESTMENTS EQUITIES DEBT

PNDF spot 71.08/71.11 January 28 $31.36 mln -$101.42 mln

10-yr bond yield 7.54 pct Month-to-date -$446.38 mln -$728.97 mln

Year-to-date --- ---

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PICTURE OF THE DAY

A participant practices "Mallakhamb" (traditional Indian gymnastics) during a practice session for the upcoming competition to promote the sport, in Ahmedabad, January 28. REUTERS/Amit Dave