FACTORS TO WATCH No major events are scheduled for the day. LIVECHAT - MARKETS UPDATE Mike Dolan, Reuters EMEA markets editor, evaluated the state of European markets at 3.30 pm IST. To join the conversation, click here INDIA TOP NEWS Reliance mobile operator Jio to focus on subscriber numbers not tariffs Reliance Industries plans to remain focused on subscriber additions rather than chase higher tariffs for its Jio telecoms business, a top company executive said. Rating agencies knew of stress at IL&FS, but gave good ratings: audit Credit rating agencies for years assigned high ratings to India's Infrastructure Leasing & Financial Services (IL&FS) and its group companies despite its deteriorating finances, according to a special audit. EXCLUSIVE-Indian govt seeks to tap foreign lenders for loans to its small firms: sources India's government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign the country's banking system may not be robust enough to do the job on its own. HDFC Bank net profit rises 21% in June quarter HDFC Bank registered a 21% net profit rise for the June quarter on the back of strong retail lending, it said on Saturday. Reliance Industries' profit rises as Jio, retail cushion refining hit Reliance Industries' June-quarter profit rose 7%, as double-digit growth in the Indian conglomerate's retail and telecoms businesses helped offset its worst oil refining margins in 18 quarters. IndiGo owner sees more flyers after record profit, Jet collapse helps Interglobe Aviation, the operator of IndiGo, said on Friday it expected passenger capacity to grow by nearly a third this fiscal year, as the company posted a record quarterly profit, gaining from the collapse of Jet Airways. Jet Airways' lenders approve interim finance plan for the carrier Lenders to Jet Airways agreed on Friday to provide some interim financing to the bankrupt airline to help it cover legal and other costs, as resolution experts look to find a potential buyer. Oyo founder to buy back $2 billion worth stake in SoftBank-backed Indian co Indian hospitality startup Oyo Founder Ritesh Agarwal raised his stake in the company with a $2 billion buyback, in a move that will bring his ownership closer to biggest investor SoftBank. GLOBAL TOP STORIES Britain weighs response to Iran Gulf crisis with few good options Britain was weighing its next moves in the Gulf tanker crisis on Sunday, with few good options apparent as a recording emerged showing that the Iranian military defied a British warship when it boarded and seized a ship three days ago. Most companies surge on first day of trade on China's STAR Market China's new Nasdaq-style board for homegrown technology firms started trading, with most of the stocks surging in their debut. Japan's pro-constitution reform forces fall short of 2/3 upper house majority: NHK Japanese Prime Minister Shinzo Abe's ruling bloc won a solid majority in an upper house election on Sunday but his coalition and allies fell short of a two-thirds majority needed to begin revising the pacifist constitution, public broadcaster NHK said.

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STATE OF THE MARKETS SGX Nifty nearest-month futures were trading 0.2% lower at 11,406.50. -NewsRise The Indian rupee is expected to open lower against the dollar as hopes of an aggressive Fed rate cut were scaled back a following media report. -NewsRise Indian government bonds are likely to trade marginally lower in early session amid consolidation, tracking a rise in crude oil prices. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a 6.34%-6.39% range today. -NewsRise Wall Street's main indexes fell on Friday following a report that the Federal Reserve plans to cut interest rates by only a quarter-percentage point at the end of the month. Asian stocks eased as investors reduced expectations of an aggressive interest rate cut by the Federal Reserve, while heightened Middle East tensions following an Iranian seizure of a British tanker lifted crude oil prices. The dollar held recent gains as investors tempered some of their expectations for deep U.S. interest rate cuts this month and heightened Middle East tensions supported safe-haven assets. U.S. Treasury yields rose after the Wall Street Journal wrote that the Federal Reserve is likely to cut rates by 25 basis points when it meets later this month, after comments by a Fed official on Thursday raised expectations a larger cut may be on the cards. Gold prices inched lower, extending losses after the metal hit a six-year peak on Friday, as investors rolled back expectations for a sharp interest rate cut at the end of this month, while tensions in the Middle East limited losses for the bullion.

CLOSE FII INVESTMENTS EQUITIES DEBT

PNDF spot 68.89/68.92 July 19 -$137.79 mln $131.5 mln

10-yr bond yield 6.36 pct Month-to-date -$1.04 bln $814.8 mln

Year-to-date $10.3 bln -$585.92 mln

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PICTURE OF THE DAY

A woman rows a makeshift raft as girls wade through flood waters at the Laharighat village in Morigaon district, Assam, July 21. REUTERS/Anuwar Hazarika