To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_02012016.pdf FACTORS TO WATCH 12:00 noon: LIC Chairman S.K. Roy to launch e-services at an event in Mumbai. 6:30 pm: Trade Minister Nirmala Sitharaman to attend an event in New Delhi. 5:00 pm: Government to release December infrastructure output data.

INDIA TOP NEWS  Sahara uses small savers to keep hill resort afloat India's embattled Sahara conglomerate has been funnelling cash from small savers to fund one of its biggest projects, a luxury resort south of Mumbai, according to documents Reuters reviewed.

 In India, govt aid helps carmakers go green and cheap to fight smog crisis Carmakers are gearing up to launch affordable hybrid and electric cars for India in the next few years, executives said, lured by government incentives for fuel-efficient vehicles as the country accelerates efforts to cut worsening air pollution.

 Finance Minister Jaitley can let deficit slip, go for growth - economists Finance Minister Arun Jaitley would get away with letting his borrowing targets slip when he presents his annual budget next month, according to the overwhelming majority of economists in a Reuters poll.

 JSW Steel reports Q3 loss; lowers output, sales target JSW Steel Ltd said on Friday that its output and sales for the fiscal year to March will fall short of its target due to a delay in capacity addition, as it reported a $136 million quarterly loss.

 L&T counts on government spending to meet growth targets Industrial group Larsen & Toubro is betting on state spending on infrastructure building to boost growth, a top executive said on Friday.

 Cbank gov Rajan says RBI working to clean up lenders' balance sheets Central bank governor Raghuram Rajan said on Friday the Reserve Bank of India is working to ensure that commercial lenders are dealing with their stressed assets on a "proactive" basis and are provisioning for them "adequately".

GLOBAL TOP NEWS  Mid-tier Chinese banks piling up trillions of dollars in shadow loans Mid-tier Chinese banks are increasingly using complex instruments to make new loans and restructure existing loans that are then shown as low-risk investments on their balance sheets, masking the scale and risks of their lending to China's slowing economy.

 From denial to Davos: BOJ's Kuroda brings out his stun gun Bank of Japan Governor Haruhiko Kuroda used classic shock tactics on Friday to push through his latest unconventional monetary policy of negative rates: deny, then strike.

 HSBC to freeze salaries, hiring in 2016 in battle to cut costs -sources Europe's largest lender, HSBC, is imposing a hiring and pay freeze across the bank globally in 2016, two sources familiar with the matter told Reuters.

LOCAL MARKETS OUTLOOK (As reported by NewsRise)  The SGX Nifty Futures was trading at 7,591.50, up 0.54% from its previous close.

 The Indian rupee will likely open slightly lower against the U.S. dollar, as disappointing factory activity data from China reinforced concerns of a global economic slowdown -NewsRise  Indian government bonds are likely to extend gains in early trading on hopes the central bank may announce steps to ease liquidity at its policy meeting tomorrow. The yield on the benchmark 7.72% bond maturing in 2025 is likely to trade in a 7.75%-7.80% range today GLOBAL MARKETS  Wall Street surged over 2 percent on Friday after the Bank of Japan unexpectedly cut interest rates and Microsoft led a major rally in technology shares, repairing some of the damage to the S&P 500's worst January since 2009.

 Asian shares started a new month on somewhat firmer footing, helped by accommodative monetary policies in Japan and Europe, but traders were cautious ahead of China factory and service sector activity surveys.

 The yen nursed broad losses and the euro was also on the defensive after the Bank of Japan adopted negative interest rates and sent bond yields sliding across the globe and particularly in Europe.

 U.S. Treasury yields fell to four-month lows on Friday after the Bank of Japan surprised investors by introducing negative interest rates in a further effort to stimulate the country's flagging economy.

 Oil prices dropped early after China and South Korea posted surprisingly weak economic data and on worries the prospect of a coordinated production cut by leading crude exporters seemed remote.

 Gold steadied at the start of the month, supported by slower U.S. fourth-quarter economic growth, after ending January with its biggest monthly gain in a year.

MARKETS CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 67.88/67.91 January 29 - $272.2 mln 10-yr bond yield 7.80 pct Month-to-date - $417.28 mln Year-to-date -- -- 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 = 67.78 Indian rupees) (Reporting by Nivedita Balu in Bengaluru)