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To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_03132020.pdf If you would like to receive this newsletter via email, please register at: http://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 10:00 am: Finance Minister Nirmala Sitharaman and Chief Economic Adviser Krishnamurthy V. Subramanian at India Today Conclave in New Delhi. LIVECHAT - GLOBAL EQUITY MARKETS Frank Benzimra, Head of Asia Equity Strategy, Societe Generale, discusses his outlook for equities. To join the conversation at 11:00 am IST, click on the link: https://refini.tv/2P8N0Wp INDIA TOP NEWS • India's retail inflation moderates, paves way for RBI action India's retail inflation eased to a two-month low in February, helped by a smaller increase in food prices, paving the way for a potential interest rate cut by the central bank amid concerns of economic activity losing steam due to the coronavirus. • SBI to invest $977 million in troubled lender Yes Bank The State Bank of India said on Thursday it would invest $977 million for an initial stake in Yes Bank as part of a rescue deal for the troubled lender. • Indian airline shares tumble on visa restrictions, domestic travel worries More than $825 million was wiped off the value of listed Indian airlines on Thursday, after the government said it was restricting visit visas to halt the spread of coronavirus and investors worried that domestic travel would fade. • India's current account deficit shrinks sharply in October-December quarter India's current account deficit narrowed further in the October-December quarter on the back of a contraction in the trade deficit and rise in net services receipts, the central bank said on Thursday. • India faces revenue fall as coronavirus bites economy - sources India faces a sharp decline in government revenues and economic growth for at least two quarters as the coronavirus hits economic activity and a fall in investor sentiment impacts privatisation plans, government and industry sources said. • India's fuel demand grows 4.5% in February, after 2 months of decline India's fuel demand grew 4.5% in February from a year earlier, the first increase in two months, government data showed, indicating some recovery in the country's industrial activity over the last month. • RBI seeks to ensure dollar liquidity amid coronavirus rout The Reserve Bank of India has adequate dollar reserves and will conduct sell/buy swaps in the foreign exchange market to ensure adequate dollar liquidity amid the current global rout in markets, it said in a statement on Thursday. CORONAVIRUS IMPACT • Policymakers ramp up support as coronavirus shreds markets Governments and central banks readied more emergency measures to tackle the economic impacts of the coronavirus on Friday as Asian markets suffered their worst weekly crashes since the 2008 financial crisis. • Fed provides massive liquidity injection to calm markets amid signs of stress The Federal Reserve moved to stem a market meltdown on Thursday with offers of $1.5 trillion in short-term loans that some analysts say could point to more aggressive action from the central bank in coming days to stimulate the economy and stabilize the financial system. • ECB ramps up stimulus for virus-hit Europe but keeps some powder dry The European Central Bank rolled out yet another stimulus package on Thursday to help fight off the coronavirus pandemic but kept some of its powder dry, putting the onus firmly on governments and sending markets into a tailspin. • SPECIAL REPORT - Italy and South Korea virus outbreaks reveal disparity in deaths and tactics In Italy, millions are locked down and more than 1,000 people have died from the coronavirus. In South Korea, hit by the disease at about the same time, only a few thousand are quarantined and 67 people have died. As the virus courses through the world, the story of two outbreaks illustrates a coming problem for countries now grappling with an explosion in cases. • Travel industry under siege as coronavirus contagion grows The fallout from the coronavirus spread across the Pacific on Friday, with travel companies in Australia and New Zealand issuing profit warnings as U.S. airlines rushed to cut flights to Europe in the wake of new U.S. travel restrictions. GLOBAL TOP NEWS • U.S. shale urges service firms offer 'at least' 25% price cuts - executives, letter U.S. shale producers are seeking sharp service costs cuts to deal with plummeting prices and shrinking demand, according to executives and a letter sent to top providers, driving home the oil industry's desperate efforts to cope with a market dive. • U.S. wages retaliatory strikes against Iran-backed militia in Iraq after deadly attack The United States waged a series of precision air strikes on Thursday against an Iran-backed militia in Iraq that it blamed for a major rocket attack a day earlier that killed two American troops and a 26-year-old British soldier. • France to allow some Huawei gear in its 5G network - sources France will authorise the use of some of Huawei's equipment in the rollout of its 5G network, two sources close to the matter told Reuters, despite U.S. calls to exclude the Chinese telecoms giant from the West's next-generation communications. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futureswere trading 7.3% lower at 8,786.00. • The Indian rupee is expected to fall against the dollar in the wake of another rout in Asian and U.S. shares on mounting concerns over the impact of the coronavirus. • Indian government bonds may open higher, after slower pace of retail price gains in February aided rate cut bets amid concerns over the economic impact from coronavirus. The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range of 6.20%-6.27% today. GLOBAL MARKETS • Wall Street tanked on Thursday, slamming the book on the longest-ever U.S. bull market after new travel restrictions to curb the coronavirus spread spooked investors and rattled world markets. • Asia's stock markets crashed as panic gripping world financial markets deepened, and even haven assets such as gold and bonds were ditched to cover losses in the wipeout. • The dollar stood tall as investors scrambled for the world's most liquid currency amid deepening panic about the coronavirus while the euro nursed losses after the European Central Bank disappointed by not cutting rates. • Longer-dated U.S. Treasury yields rose on Thursday after the New York Federal Reserve took dramatic steps to boost liquidity in the banking system, in an attempt to address liquidity concerns in the Treasury market. • Oil prices fell for a third day, with Brent crude set for its biggest weekly drop since 1991 and U.S. crude heading for the worst week since 2008 as panic about plunging demand from the coronavirus outbreak grips the market. • Gold prices fell further and were on track to post their biggest weekly drop in nearly seven years, as a rout in global equities forced investors to cover margin calls. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 74.16/74.19 March 12 (3,483.72) crore (7,950.40) crore 10-yr bond yield 6.23% Month-to-date (22,974) crore (11,061) crore Year-to-date (9,031) crore (20,612) crore (FII investment numbers are in Indian rupees. Source: National Securities Depository Limited) 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 = 74.56 Indian rupees) (Compiled by Pranay Prakash in Bengaluru)