To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_07272020.pdf If you would like to receive this newsletter via email, please register at: http://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 11:00 am: RBI Governor Shaktikanta Das interaction with industry body CII’s national council members in Mumbai. 5:00 pm: Kotak Mahindra Bank Joint managing Director Dipak Gupta at first-quarter earnings web conference in Mumbai. LIVECHAT – REUTERS GLOBAL MARKETS FORUM Mike Dolan, Reuters Editor at Large, Finance & Markets, looks at the major market moving news for the upcoming week. To join the conversation at 3:30 pm IST, click on the link: https://refini.tv/2P8N0Wp INDIA TOP NEWS • Alibaba, Jack Ma summoned by Indian court on former employee’s complaint An Indian court has summoned Alibaba and its founder Jack Ma in a case in which a former employee in India says he was wrongfully fired after objecting to what he saw as censorship and fake news on company apps, documents seen by Reuters showed. • ICICI Bank quarterly profit misses estimates as provisions soar ICICI Bank on Saturday reported a quarterly profit that missed analyst estimates as its provisions for bad loans rose sharply to account for the impact of the coronavirus pandemic. • India June oil imports lowest in nearly 9 years; none from Venezuela India’s oil imports fell in June, hitting their lowest since October 2011, as refiners curbed purchases due to maintenance turnarounds and weaker fuel demand, data from industry sources showed. GLOBAL TOP NEWS • U.S. consulate in Chengdu shuts after China orders closure Beijing announced the U.S. consulate in the southwestern city of Chengdu was closed as of 10 a.m. (0200 GMT) on Monday, after it ordered the facility be shut in retaliation for China being ousted from its consulate in Houston, Texas. • Trump team, Senate Republicans agree on coronavirus aid offer to Democrats Top aides to U.S. President Donald Trump said on Sunday they agreed in principle with Senate Republicans on a $1 trillion coronavirus relief package — the party’s opening offer in negotiations with Democrats less than a week before enhanced unemployment benefits expire. • China’s industrial profit growth quickens, signals firming economic recovery Profits at China’s industrial firms rose for a second straight month and at the fastest pace in over a year, adding to signs the country’s economic recovery from the coronavirus crisis is gaining momentum. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.4% higher at 11,218.20. • The Indian rupee is expected to trade higher against the U.S. currency tracking a further decline on the dollar index. • Indian federal government bond yields are likely to trade little changed amid a lack of fresh triggers, even as market participants await bond-supportive measures from the central bank. The yield on the benchmark 5.79% bond maturing in 2030 is likely to trade in a range of 5.80%-5.85%. GLOBAL MARKETS • Wall Street retreated on Friday, heading into the weekend with a broad sell-off due to weak earnings, surging coronavirus cases and geopolitical uncertainties. • Gold hit an all-time high as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe haven assets, although sentiment was mixed with tech gains supporting some Asian stocks. • The dollar began the week under pressure from all corners as intensifying Sino-U.S. tensions added to worries that the coronavirus resurgence in United States could undermine the recovery in the world’s biggest economy. • U.S. Treasury yields were mixed on Friday as stocks fell and the market looked ahead to developments next week on new fiscal stimulus steps, as well as a Federal Reserve meeting. • Oil prices edged down as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets. • Gold prices extended gains, driven by U.S.-China tensions and a weaker dollar, while expectations of more stimulus to revive pandemic-hit economies lifted the metal’s appeal as an inflation hedge. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 74.86/74.89 July 24 2,114.35 crores 257.34 crores 10-yr bond yield 5.81% Month-to-date 2,336 crores (1,150) crores Year-to-date (16,177) crores (1,08,109) crores (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 = 74.76 Indian rupees) (Compiled by Siddharth Athreya V in Bengaluru)