FX Buzz analyst Jeremy Boulton analyses G7 currencies at 3:30 pm. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • India's green car plan prioritises electric vehicles over hybrids India's most influential government think-tank has recommended lowering taxes and interest rates for loans on electric vehicles, while capping sales of conventional cars, signalling a dramatic shift in policy in one of the world's fastest growing auto markets.
• Under Patel, Indian cenbank zooms in on 4 pct inflation target Under governor Urjit Patel, India's central bank will target inflation of 4 percent, three officials familiar with its thinking said, adopting a narrower reading of its mandate than markets in a bid to stamp out rampant price rises of the past.
• Japan's SoftBank takes driving seat in Indian online shake-up After ploughing about $2 billion into minority stakes in Indian e-commerce businesses over the past few years, Japan's SoftBank is upping the stakes, looking to play consolidator and take a more active role at a trio of leading start-ups.
• India moves resolution of $150 bln bad debt problem into cenbank's court India on Friday tweaked its laws to help tackle a record $150 billion in troubled bank debts, giving its central bank greater power to identify and enforce resolution on specific soured loans.
• Norway's wealth fund excludes India's Bharat Heavy Electricals from investments India's Bharat Heavy Electricals has been excluded from the investment portfolio of Norway's $935-billion sovereign wealth fund, the world's largest, the Norwegian central bank said on Friday.
• Ambuja Cements to study merits of merger with ACC India's Ambuja Cements Ltd said on Friday it was considering the merits of a merger with its subsidiary ACC Ltd.
• India names new bosses for seven state-run banks India named new chief executives for seven state-run banks on Friday, at a time when regulators are trying to clean up record bad loans in the sector.
• India's IRB InvIT Fund $782 mln IPO subscribed 8.6 times An initial public offering of shares in India's IRB InvIT Fund to raise 50.33 billion rupees ($782 million) was subscribed 8.6 times on the closing day of the sale on Friday, in what was the country's first infrastructure investment fund IPO.
GLOBAL TOP NEWS • Macron wins French presidency, to sighs of relief in Europe Emmanuel Macron was elected French president on Sunday with a business-friendly vision of European integration, defeating Marine Le Pen, a far-right nationalist who threatened to take France out of the European Union.
• China's April FX reserves rise, beating market expectations China's foreign exchange reserves rose in April for a third straight month, beating market expectations, as capital controls and a pause in the dollar's rally helped staunch capital outflows.
• U.S. Democrats criticize Senate's all-male healthcare group U.S. Democrats on Sunday criticized the lack of women on a working group in the Republican-led Senate that will craft a plan to pass legislation to repeal and replace Obamacare.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures were trading at 9,337.00, up 0.26 pct from its previous close.
• The Indian rupee will likely edge higher against the dollar in early trade on improved investor sentiment as independent centrist Emmanuel Macron’s win at the French presidential election eases fears over France’s future with the European Union.
• Indian government bonds will likely edge higher, as pro-European Union Emmanuel Macron won the French presidential election, spurring global risk appetite. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.92 pct - 6.97 pct band today.
GLOBAL MARKETS • U.S. equity index futures edged higher on Sunday in the wake of a victory by the centrist candidate in the closely watched presidential French election, suggesting the benchmark S&P 500 may push further into record territory when trading reopens on Monday morning.
• The euro hit a six-month high against the dollar while Asian shares gained and U.S. stock futures briefly touched a record high, on investor relief after centrist Emmanuel Macron comfortably won the French presidential election.
• The euro edged away from highs hit early in the Asian session as investors took profits from its gains after centrist Emmanuel Macron's victory over the far-right Marine Le Pen in France's presidential election.
• The U.S. Treasury yield curve flattened on Friday after jobs growth in April rebounded and the unemployment rate fell to a near 10-year low, reinforcing the view that the Federal Reserve is likely to raise interest rates again in June.
• Oil prices rose on a growing conviction that an OPEC-led production cut initially scheduled to end in June would be extended to cover all of 2017, although a relentless increase in U.S. drilling activity is seen capping gains.
• Gold firmed as bargain-hunters moved in after prices dipped to seven-week lows and as the euro strengthened after expected win of pro-EU candidate Emmanuel Macron in the French presidential election.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.32/64.35 May 5 -$56.61ln $305.89 mln 10-yr bond yield 7.20 Month-to-date -$88.29 mln $624.94 mln Year-to-date $6.31 bln $10.02 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 = 64.37 Indian rupees) (Compiled by Sai Sharanya Khosla in Bengaluru)
