To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_06042018.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ LIVECHAT- FX WEEK AHEAD FX Buzz analyst Jeremy Boulton analyses G7 currencies at 3:30 pm IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • Indian manufacturing PMI growth slows in May, inflationary pressures pick up Activity in India's manufacturing sector grew at a weaker pace in May from the previous month, a business survey showed on Friday, while inflationary pressures picked up again amid rising oil prices in another sign that an interest rate hike is around the corner.
• EXCLUSIVE-After deadly Indian smelter protests, arrests stoke tension Eleven days after police in southern India fired on protesters seeking the shutdown of a copper smelter owned by London-listed Vedanta, killing 13, residents say people suspected of involvement in the demonstrations are being targeted in a wave of arrests.
• Fortis weighs offers from Manipal, IHH in new bidding round India's Fortis Healthcare FOHE.NS said on Friday its board would look at a new round of bids from four local and international parties, after shareholders opposed a previous board decision last month to accept an offer from a consortium.
• Delhi's proposal to cap drug costs worries Indian hospitals industry Indian authorities have proposed capping medical costs at private hospitals in the capital to help millions of people, but the plan would deal a blow to the multi-billion-dollar healthcare sector already grappling with price control policies.
• India's ICICI Bank says CEO Kochhar on planned leave ICICI Bank Ltd said on Friday Chief Executive Officer Chanda Kochhar is on planned annual leave and denied a media report that she was asked to go on leave until an independent board enquiry is concluded.
• ANALYSIS-With ports, ships and promises, India asserts role in SE Asia Almost lost in the din of the upcoming U.S-North Korea summit and fresh tension between Washington and Beijing last week, India cemented its diplomatic and security ties across Southeast Asia in a clear challenge to China.
• India urges global planemakers to 'Make in India' India wants to encourage aircraft makers to manufacture in the country, starting with components and moving eventually to complete aircraft, Aviation Minister Suresh Prabhu said on Sunday.
• INSIGHT-As election looms, Modi's popularity wanes in rural India Indian farmers voted overwhelmingly for Prime Minister Narendra Modi in the 2014 general election that swept him to power. He cannot count on them doing so again, as a crash in commodity prices and surging fuel costs stoke anger in the countryside.
GLOBAL TOP NEWS • Talks end with China warning trade benefits at risk if U.S. imposes tariffs China warned the United States on Sunday that any agreements reached on trade and business between the two countries will be void if Washington implements tariffs and other trade measures, as the two ended their latest round of talks in Beijing.
• N.Korea's top three military officials replaced, U.S. official says North Korea's top three military officials have been removed from their posts, a senior U.S. official said on Sunday, as U.S. President Donald Trump and North Korean leader Kim Jong Un prepare to meet on June 12 in Singapore.
• Australia's CommBank accepts record penalty in money-laundering case Commonwealth Bank of Australia agreed to a record penalty of A$700 million to settle explosive money laundering charges brought by Australia's financial intelligence agency.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty nearest-month futures were trading at 10,721.50, up 0.4 percent from its previous close.
• The Indian rupee will likely open higher against the dollar as a buoyant U.S. jobs data spurs a rally in regional currencies and equities.
• Indian government bonds are likely to fall tracking gains in U.S. Treasury yields and on the central bank's unexpected auction of short term cash management bills.Investors may remain on the sidelines as the Monetary Policy Committee's three-day meeting starts today. The yield on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.86 percent - 7.93 percent band today.
GLOBAL MARKETS • Wall Street stocks rose on Friday after the latest monthly jobs report pointed to strength in the U.S. economy and geopolitical tensions eased.
• Asian shares rose to their highest level in two-and-a-half-weeks as strong U.S. jobs data offset worries that tariff wars between the United States and the rest of the world could drag on global economic growth.
• The dollar gained against the yen after the release of an upbeat U.S. jobs report, although uncertainty over potential political risks kept the currency's near-term outlook murky.
• U.S. Treasury yields rose on Friday after data showed the world's largest economy created more jobs than expected in May, fueling expectations that the Federal Reserve could increase the pace of interest rate rises this year.
• Brent crude oil futures dipped for a second session, with prices coming under pressure from record U.S. output and expectations of higher OPEC supplies.
• Gold prices steadied, after falling to the lowest in more than a week in the previous session, as expectations of an interest rate hike this month offset support from worries about a trade war.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 67.17/67.20 June 1 -$30.30 mln -0.60 mln 10-yr bond yield 8.05 pct Month-to-date - - Year-to-date - -$4.22 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 = 66.99 Indian rupees) (Compiled by Shradha Singh in Bengaluru)
