MORNING NEWS CALL

FACTORS TO WATCH

10:00 am: Trade Minister Suresh Prabhu to inaugurate 4th edition of India International Footwear Fair 2018 in New

Delhi.

10:30 am: S&P Global Ratings conducts seminar- ‘India credit spotlight 2018’ in Mumbai.

11:00 am: Monsoon session of parliament continues in New Delhi.

LIVECHAT - CENBANKS FOCUS

Neeraj Seth, head of Asian credit at Blackrock, joins us to discuss the central bank meetings over the last week, and the

road ahead for the Fed, BOJ, BOE and ECB, as well as his outlook on China and other emerging markets in this

changing credit environment. To join the conversation at 12:30 pm IST, click here

INDIA TOP NEWS

India central bank hikes key rate for second straight meet; 'neutral' stance kept

The Reserve Bank of India raised interest rates for the second straight meeting on Wednesday, but retained its "neutral"

stance as it aimed to contain inflation while not choking growth.

India's factory growth eases in July on weaker demand - PMI

Growth in India's manufacturing industry slowed last month, largely pressured by a modest weakening in demand and

output, though overall conditions remained solid, a private survey showed on Wednesday.

Cabinet approves planned takeover of IDBI Bank by LIC

India's federal cabinet on Wednesday approved a planned takeover of state-run IDBI Bank by state-run Life Insurance

Corp through sale of new shares in the lender, Finance Minister Piyush Goyal said.

Flipkart unveils loyalty programme to counter Amazon Prime

Online retailer Flipkart will be launching its second loyalty programme later this month, a move aimed at boosting

customer retention and rivalling Amazon.com's Prime benefit plan.

Cabinet approves uniform licensing policy for oil, gas exploration

India cabinet on Wednesday allowed oil and gas producers to explore for shale oil and gas and coal bed methane under

the existing contracts, a move aimed at unlocking the unconventional hydrocarbon potential of the world's third-biggest

oil importer.

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GLOBAL TOP STORIES

Trump administration adds to China trade pressure with higher tariff plan

U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25

percent tariff on $200 billion worth of Chinese imports, his administration said on Wednesday.

Fed leaves rates unchanged, stays on course for September hike

The U.S. Federal Reserve kept interest rates unchanged on Wednesday but characterized the economy as strong,

keeping the central bank on track to increase borrowing costs in September.

Nissan close to settling dispute with India over unpaid incentives

Nissan Motor and authorities in an Indian state are close to settling a dispute over which the Japanese carmaker

initiated international arbitration seeking more than $729 million in unpaid dues and damages, sources told Reuters.

STATE OF THE MARKETS

SGX Nifty nearest-month futures were trading at 11,366.50, up 0.1 percent from its previous close. -NewsRise

The Indian rupee is likely to extend its gains against the dollar, helped by the subdued reaction of regional currencies to

the Federal Reserve’s policy decision. -NewsRise

Indian government bonds will likely open higher, as investors led by foreign banks may continue to add positions as

most of them do not expect a rate hike in this calendar year, while lower crude oil prices will further aid sentiment. Yield

on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.66 percent-7.74 percent band today.

The S&P 500 and Dow slipped on Wednesday as gains in Apple shares were offset by a drop in energy and industrial

companies, while the U.S. Federal Reserve remained on course for an expected interest rate hike in September.

Asian stocks were little changed, with sentiment fragile after the latest escalation in Sino-U.S. trade war while global

bond markets were rattled by Washington's increased borrowing and Japan's new tolerance for higher yields.

The U.S. dollar held onto most of its gains against major peers after the Federal Reserve gave an upbeat assessment

of the world's biggest economy and stayed on course to gradually lift interest rates.

The benchmark 10-year U.S. Treasury note's yield reached its highest in 2-1/2 months on Wednesday, breaking

above 3 percent after the government said it intended to boost borrowing in the bond market in the coming quarter to

fund spending and debt obligations.

Oil prices rose, recouping a portion of the losses of the last two days that were driven by reports showing surprise gains

in U.S. inventories of crude, along with mounting concern over trade friction between the U.S. and China.

Gold inched higher, recovering from its fall in the previous session when the U.S. Federal Reserve kept interest rates

steady, as the dollar held steady.

CLOSE FII INVESTMENTS EQUITIES DEBT

PNDF spot 68.54/68.57 August 1 -$14.04 mln $206.93 mln

10-yr bond yield 7.70 pct Month-to-date -$14.04 mln $206.93 mln

Year-to-date -$579.51 mln -$5.54 bln

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PICTURE OF THE DAY

Hajj pilgrims take a selfie before leaving for the annual hajj pilgrimage to the holy city of Mecca, at the airport in Ahmedabad, August

1. REUTERS/Amit Dave

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