To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_06092016.pdf FACTORS TO WATCH 9:30 am: RBI Deputy Governor S.S.Mundra to speak at a conference organized by SKOCH in Mumbai.

12:00 pm: Transport Minister Nitin Gadkari to launch in New Delhi, an annual report of transport research wing on road accidents in 2015.

7:00 pm: RBI Governor Raghuram Rajan at a book launch event in Mumbai.

GMF: EMEA LIVECHAT - YIELD! BOND MARKETS with Reuters interest rate correspondent Richard Leong Join Reuters interest-rate reporter Richard Leong live from the government bonds desk in New York at 1800 IST for a weekly round up of the main market themes and movers. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS  RBI's Rajan: Scope to cut rates if inflation heads to 5 percent The Reserve Bank of India will have more room to cut interest rates if the central bank gains confidence in reaching its 5 percent target for consumer inflation by March 2017, said Governor Raghuram Rajan on Wednesday.

 Sun Pharma aims for 25 percent growth in consumer health business India's largest drugmaker Sun Pharmaceutical Industries expects its domestic consumer healthcare business to grow by up to 25 percent this year, led by a renewed marketing push on some older brands, the company's India chief said on Wednesday.

 Modi wants deeper U.S.-India security relationship Indian Prime Minister Narendra Modi called for a closer security relationship between his country and the United States on Wednesday, in an address to the U.S. Congress stressing the importance of warming ties between the two countries.

 India plans expanded missile export drive, with China on its mind India has stepped up efforts to sell an advanced cruise missile system to Vietnam and has at least 15 more markets in its sights, a push experts say reflects concerns in New Delhi about China's growing military assertiveness.

GLOBAL TOP NEWS  BOK cuts rates to record low, seen supporting shipping overhaul South Korea's central bank cut its policy rate to a record low 1.25 percent, sooner than expected, as the government drives a major overhaul of the struggling shipping and shipbuilding industries that could see large job losses.

 Worse-than-expected drop in Japan machinery orders flags weak capex ahead Japan's core machinery orders tumbled in April by the most in two years, partly due to earthquakes in a southern manufacturing hub but raising the risk that business investment will remain weak for most of the year.

 Clinton, Trump draw battle lines for ill-tempered campaign fight U.S. presidential candidates Hillary Clinton and Donald Trump kicked off a fierce general election battle, with Democrats accusing Trump of erratic behavior and the Republican threatening to bring up old Clinton scandals.

LOCAL MARKETS OUTLOOK (As reported by NewsRise)  The SGX Nifty Futures was trading at 8,302.50, up 0.22% from its previous close.

 The Indian rupee will likely extend gains against the dollar, tracking advances in its Asian peers and on expectations of stronger local shares as global risk appetite improves.

 Indian government bonds are likely to open lower as investors refrain from adding to their long positions ahead of the release of retail inflation data next week.The yield on the benchmark 7.59% bond maturing in 2026 is likely to trade in a 7.47%-7.51% range.

GLOBAL MARKETS  The Dow ended above 18,000 for the first time since April on Wednesday as declines in the dollar lifted some commodity-related shares and boosted the outlook for multinationals.

 Asian stocks edged up after modest gains on Wall Street overnight, while a weaker dollar buoyed commodities such as gold and crude oil.

 The New Zealand dollar took centre stage in early Asian trade, surging to a one-year high after the Reserve Bank of New Zealand defied expectations for an interest rate cut and stood pat.

 U.S. 10-year Treasury yields fell on Wednesday after the government sold $20 billion in 10-year notes to strong demand, the second tranche of a total $56 billion in coupon-bearing supply this week.

 Oil prices remained near 2016 highs in early trading, buoyed by a fall in U.S. crude inventories, a weaker dollar and strong demand, but some analysts warned that the recent rally was starting to look overblown.

 Gold hit a fresh three week high, after jumping 1.5 percent overnight, helped by a weaker dollar and diminishing expectations of an interest rate hike by the U.S. Federal Reserve at its meeting next week.

CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 66.50/66.53 June 8 $79.50 mln $25.66 mln 10-yr bond yield 7.67 pct Month-to-date $471.34 mln -$271.60 mln Year-to-date $2.66 bln -$1.34 bln For additional data: India govt bond market volumes Stock market reports Non-deliverable forwards data Corporate debt stories [IN CORPD] Local market closing/intraday levels [IN SNAPSHOT] Monthly inflows [INFLOWS RTRS TABLE IN] ($1 = 66.65 Indian rupees) (Compiled by Hardik Vyas in Bengaluru)