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☆ Indian shares set to rise after a rout set off by Adani stocks
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +2 min

Besides the Fed's policy meeting, investors await rate decisions from other global central banks such as the European Central Bank and the Bank of England, later this week. STOCKS TO WATCH** Bajaj Finance (BJFN.NS): Co posts bigger-than-expected rise in consolidated net profit in third quarter, aided by a fall in provisions for bad loans. read more** Vedanta (VDAN.NS): Co reports slide in consolidated net profit in Q3, dragged by soft metal prices. read more** Tata Elxsi : Co reports arise in consolidated net profit in third quarter. ($1 = 81.5100 Indian rupees)Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann ThoppilOur Standards: The Thomson Reuters Trust Principles.

MUMBAI, Jan 27 (Reuters) - Some of India's leading public sector banks said on Friday their exposure to the Adani Group was within the limits prescribed by the central bank, assuaging fears of default risks from their exposure to the conglomerate. Public sector banks in India have in the past been hit by massive corporate defaults. The board will take any decision on the bank's exposure to the group only after that, the official said. The Adani Group comprises the flagship Adani Enterprises Ltd (ADEL.NS), as well as Adani Ports and Special Economic Zone Ltd (APSE.NS), Adani Power Ltd (ADAN.NS), Adani Green Energy Ltd (ADNA.NS) and Adani Transmission Ltd (ADAI.NS). For public sector banks, the debt is at 0.7% of total loans and for private banks, it is at 0.3%.

☆ India's FY24 gross borrowing could be less than expected -economists
▼ + stars: | 2023-01-25 | by ( Reuters Staff | ) www.reuters.com time to read: +3 min

MUMBAI (Reuters) - India’s central government’s gross market borrowings for 2023/24 could come in below market expectations as a pool of securities raised to compensate states for a shortfall in goods and services tax may not be rolled over, a few economists said. The government’s gross borrowing is expected to be a record 16 trillion rupees (about $196 billion) for the fiscal year through March 2024, according to a Reuters poll of economists. Once we knock these off, the ‘true’ gross borrowing comes to 15.8 trillion rupees,” the economists estimated. India borrowed 1.1 trillion rupees and 1.59 trillion rupees in 2020-21 and 2021-22, respectively, to lend to states and compensate for a revenue shortfall from tax collections. After adjusting for the redemption of such bonds in 2022-23, IDFC First Bank expects gross borrowing of 15.50 trillion rupees.

☆ India's first green bond issue pulls local bidders, foreigners aloof - traders
▼ + stars: | 2023-01-25 | by ( Dharamraj Lalit Dhutia | ) www.reuters.com time to read: +2 min

MUMBAI, Jan 25 (Reuters) - India's first sovereign green bond issue was mostly subscribed by local banks and insurance companies, with limited interest from foreign investors, market participants said. New Delhi raised 80 billion rupees ($981.31 million) via green bonds on Wednesday. The five-year 7.38% 2027 bond yield was at 7.15%, while the benchmark 7.26% 2032 bond yield was at 7.35% during the time of bidding. Local banks and mutual funds do not have a specific mandate to invest in green bonds and treat these at par with other sovereign bonds. Ahead of Wednesday's auction, the government had met foreign investors to gauge the demand, Reuters had reported.

The government plans to raise 160 billion rupees through green bonds for the current fiscal ending March 31, with the first tranche of 80 billion rupees scheduled for auction on Wednesday. "The expectation of a green premium is in line with 'greenium' that issuers have got globally," said one of the two sources. "Green bonds should command a premium because of the mandates to invest in these securities. The RBI will auction 40 billion rupees each of five-year and 10-year green bonds. "It will be advisable to appoint an external auditor with an oversight by CAG (Comptroller and Auditor General) for utilisation of green bond proceeds."

☆ India's cenbank likely buying dollar after rupee rose above 81/USD - traders
▼ + stars: | 2023-01-23 | by ( ) www.reuters.com time to read: 1 min

MUMBAI, Jan 23 (Reuters) - India's central bank likely bought dollars via state-run banks to prevent the rupee from appreciating significantly above the 81 psychological level, three traders told Reuters. The rupee was last quoted at 81.125 per U.S. dollar after climbing to 80.89 in early trade. The rupee rose above the 81 level for the first time since Dec. 1. The sizeable dollar buying from public sector banks after the open point to the Reserve Bank of India, a trader at a private sector bank said, adding importers too are very likely active. Reporting by Nimesh Vora; Editing by Eileen SorengOur Standards: The Thomson Reuters Trust Principles.

MUMBAI, Jan 23 (Reuters) - The Indian rupee is expected to extend its gains this week, while government bond yields may move marginally higher due to worries about yet another year of elevated borrowing. The local unit is likely to add to its momentum and trade in a broad 80.50-81.50 range this week, analysts said. Despite the corporate flows in the market, steady foreign investment into equities is more important, so it seems appropriate for the rupee to trade around those levels, Biswas added. Market participants expect the benchmark bond yield to trade in the 7.30%-7.40% band this week. The Reserve Bank of India will auction 40 billion rupees each of five- and 10-year green bonds on Wednesday.

☆ India's Yes Bank reports surprise 80% plunge in quarterly profit
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Jan 21 (Reuters) - India's Yes Bank (YESB.NS) reported a surprise 80% plunge in quarterly profit on Saturday as provisions for bad loans increased. Net profit fell to 515.20 million rupees ($6.36 million) for the three months through December from 2.66 billion rupees in the same period a year earlier. Provisions increased to 8.44 billion rupees from 5.82 billion rupees the previous quarter. Yes Bank in December completed the transfer of bad loans worth 480 billion rupees to private equity firm J.C. Bank loans rose nearly 15% in the fortnight to Dec. 30 from a year earlier, outpacing a 9.2% increase in deposits, according to the latest data from the Reserve Bank of India.

☆ India's Kotak Mahindra Bank's Oct-Dec net profit jumps 31%
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Jan 21(Reuters) - India's Kotak Mahindra Bank (KTKM.NS) on Saturday reported a 31% increase in standalone net profit for the October-December quarter, aided by a strong topline and healthy loan growth. The private lender's standalone profit stood at 27.92 billion rupees ($344.2 million) compared with 21.31 billion rupees in the same period last year. Net interest income, the difference between interest earned and interest expended, rose 30.4% from a year ago to 56.53 billion rupees, while other income rose nearly 54%. The net interest margin was at 5.47% as compared to 4.62% last year. As of Dec. 31, the bank held Covid-related provisions worth four billion rupees.

☆ Davos 2023: Key takeaways from the World Economic Forum
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +6 min

[1/4] NATO Secretary General Jens Stoltenberg, Poland's President Andrzej Duda and Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland take part in the World Economic Forum session on "Restoring Security and Peace. REUTERS/Arnd WiegmannDAVOS, Switzerland, Jan 20 (Reuters) - Global leaders and business executives departed a freezing World Economic Forum (WEF) meeting on Friday after a frank exchange of views over how the world will tackle its biggest issues in 2023. Here's what we learned:ECONOMY: Gloom and doom heading into Davos turned into cautious optimism by the end with the global economic outlook for the year ahead looking better than feared. On the inside, political leaders like Kier Starmer railed against new oil investments and Pakistani climate minister Sherry Rehman pushed for loss and damage funding. The lesson I have learned in the last years ... is money, money, money, money, money, money, money."

☆ India's foreign exchange reserves rise to 5-month high
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Jan 20 (Reuters) - India's foreign exchange reserves (INFXR=ECI) rose to $572 billion in the week through Jan. 13, their highest level since early August last year, the Reserve Bank of India's (RBI) statistical supplement showed on Friday. That is higher than the country's reserves of $561.58 billion for the week ended Jan. 6, and the more-than-two-year low of $524.52 billion hit in October 2022. The central bank has, in the past, said that changes in reserves also stem from valuation gains or losses. The rupee marked its best trading week in two months in the week ended Jan. 13 as it appreciated sharply on breaking out of a tight range. It continued to gain, albeit at a slower pace, in the current week ending Jan. 20.

☆ China's reopening 'good news' for growth — but could be inflationary, economists warn at Davos
▼ + stars: | 2023-01-20 | by ( Silvia Amaro | ) www.cnbc.com time to read: +1 min

China's reopening has been one of the most discussed topics at the World Economic Forum in Davos. DAVOS, Switzerland — China's economic reopening might boost global growth, but the business leaders and policymakers at the World Economic Forum this week are also a little anxious on its potential inflationary impact. China's decision to welcome tourists again as well as to make it easier for those in the country to travel abroad has been one of the most discussed topics at the Davos gathering in the Swiss Alps. On the other hand, however, there are concerns about what this means for inflation and the cost of living. "So China's opening [is] good news overall, but potentially, the inflationary impact — there could be some," he said.

☆ No issue with crypto in India if laws are followed - minister
▼ + stars: | 2023-01-19 | by ( ) www.reuters.com time to read: +1 min

NEW DELHI, Jan 19 (Reuters) - India's junior IT minister on Thursday said there was no issue with cryptocurrencies in India if all laws are followed, in remarks that contradicted the central bank's view advising investors to stay away from crypto. India has been trying to come up with regulation for cryptocurrencies, with a central bank deputy governor even calling for them to be banned, but the government has not been able to formulate legislation yet. In Febraury, a deputy governor of the Reserve Bank of India (RBI), T. Rabi Sankar, said cryptocurrencies were akin to Ponzi schemes or worse and banning them was the most sensible option for India. RBI Governor Shaktikanta Das also said in February that cryptocurrencies lacked the underlying value of even a tulip. Reporting by Shivam Patel in New Delhi; editing by Jason Neely and Emelia Sithole-MatariseOur Standards: The Thomson Reuters Trust Principles.

☆ Davos 2023: Global trade rethink: 'race of the big pockets'?
▼ + stars: | 2023-01-19 | by ( Mark John | ) www.reuters.com time to read: +5 min

SummarySummary Companies US climate bill concerns dominate Davos trade talkSome fear "rich-country game" of rising state subsidiesRevamped globalisation must benefit all, Davos toldDAVOS, Switzerland, Jan 19 (Reuters) - The United States pitched its vision of "worker-centric" trade. "I am very concerned," World Trade Organization (WTO) chief Ngozi Okonjo-Iweala told Reuters on the sidelines of the meeting in Davos, Switzerland. Three decades of free global trade have, the International Monetary Fund estimates, lifted more than a billion people out of extreme poverty. The United States notably built into its trade pact with Mexico a mechanism for identifying and dealing with the denial of worker rights. U.S. Trade Representative Tai told a panel on Wednesday the United States wanted to "lead a conversation" on a new version of globalisation.

☆ India is set to become the world’s most populous country. Can it create enough jobs?
▼ + stars: | 2023-01-17 | by ( Diksha Madhok | ) edition.cnn.com time to read: +5 min

New Delhi CNN —India will overtake China this year to become the world’s most populous country. That’s because India is simply not creating employment opportunities for the millions of young job seekers already entering the workforce every year. A huge crowd thronged India Gate on New Year's Eve on December 31, 2022 in New Delhi, India. The country needs to create at least 90 million new non-farm jobs by 2030 to absorb new workers, according to a 2020 report by McKinsey Global Institute. But, according to a former central banker, even this growth is “insufficient.”“A lot of this growth is jobless growth.

☆ India cenbank's new proposal on loan loss provisions to raise bank capital needs - analysts
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Jan 17 (Reuters) - The Indian central bank's discussion paper suggesting banks make provisions on bad loans using an expected credit loss (ECL) method could raise capital requirements for lenders, analysts said. The potential impact of a shift to the ECL mechanism on bank capital could be significant, said the RBI, which is yet to give a timeline for implementing the new rules. The new mechanism will recognise problems ahead of time and make the banking system more resilient in the long run but could raise capital requirements significantly particularly for government owned banks, analysts at Macquarie Research said. "The problem here is that over the last 5-10 years, the probability of default would have been very high for the banking sector and that's why eventual ECL provisions could be higher,” Macquarie said. While the impact on individual banks is difficult to assess at this stage, it could be felt in 2025/26 and banks would have to start preparing in 2024/25 to raise capital, the research house added.

☆ Analysis: India's rising home prices, rentals a new inflation threat
▼ + stars: | 2023-01-17 | by ( Siddhi Nayak | ) www.reuters.com time to read: +4 min

Housing rentals and ancillary costs have a 10.07% weightage in India's consumer price inflation basket and are near three-year highs, posing a fresh worry for the central bank that had to contend with rising food prices for most of last year. Urban housing inflation rose to 4.47% year-on-year in December 2022, versus 3.61% in the same period a year ago and 3.21% in December 2020, data from the Ministry of Statistics and Programme Implementation showed. "Core inflation has continued to remain sticky and hence an increase in housing inflation poses a significant risk to the overall inflation outlook," said Aditi Gupta, an economist at Bank of Baroda. While housing prices are not part of the consumer price inflation basket, their effect is captured through construction and raw material prices, and analysts do not expect a slowdown any time soon. Analysts said rising house prices would also feed into higher demand for services like electricity and repairs, ultimately working their way into the overall inflation basket.

Government bond yields are expected to tick up as investors shift focus to the upcoming budget. The rupee climbed 1.7% to 81.3250 per dollar last week, tracking a broad decline in the dollar index . There are a lot of positives for the rupee, including the Fed view, the broadly stable oil prices and the fall in Treasury yields, said Anil Bhansali, head of treasury at Finrex Treasury Advisors. Till then, bond yields should not fall much, as most people are expecting a heavy borrowing calendar," said Ajay Manglunia, managing director and head of investment grade group at JM Financial. Meanwhile, as a bulk of the fresh supply for the next financial year would hit the longer end, market participants expect yields to rise, while shorter-tenor yields may see some fall.

☆ HDFC Bank, India's biggest private lender, says net profit jumps 18.5%
▼ + stars: | 2023-01-14 | by ( ) www.reuters.com time to read: +1 min

Net profit for the quarter was 122.59 billion rupees ($1.51 billion), up from 103.42 billion rupees in the same quarter a year earlier. That was above analysts' forecast of 118.33 billion rupees, according to Refinitiv IBES data. Net interest income, the difference between interest earned and paid, rose 24.6% to 229.88 billion rupees from 184.44 billion rupees. HDFC's advances for its third fiscal quarter rose 19.5%, retail loans grew 21.4%, commercial and rural banking loans were up 30.2% and other wholesale loans rose 20.3%. Provisions and contingencies fell slightly to 28.06 billion rupees from 29.94 billion rupees last year.

☆ Indian shares set to open higher; inflation slows
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, Jan 13 (Reuters) - Indian shares are set to open higher on Friday after data showed domestic and U.S. inflation eased last month, boosting expectations that central banks could slow the pace of interest rate hikes. In other Asian equities, the MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 0.8% at a seven-month high. STOCKS TO WATCH** Wipro Ltd (WIPR.NS): Co set to report quarterly results later in the day. ** Infosys (INFY.NS): Co raises annual revenue outlook after reporting better-than-expected quarterly profit in third quarter. ($1 = 81.1100 Indian rupees)Reporting by Rama Venkat and Bharath Rajeswaran in Bengaluru;Our Standards: The Thomson Reuters Trust Principles.

☆ Indian shares seen opening flat; Powell's speech, earnings eyed
▼ + stars: | 2023-01-10 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, Jan 10 (Reuters) - Indian shares were set for a muted opening on Tuesday, tracking global moves as investors weighed expectations of less aggressive Fed rate hikes against inflation and corporate earnings performance. India's NSE stock futures listed on the Singapore exchange were down 0.12% at 18,150.50, as of 7:42 a.m. IST on Tuesday. Domestic investors bought 17.24 billion rupees worth of shares, as per provisional NSE data. STOCKS TO WATCH** TCS (TCS.NS): Co's third quarter net profit missed estimates, flags challenges in Europe as clients tighten spending. ($1 = 82.1700 Indian rupees)Reporting by Rama Venkat and Bharath Rajeswaran in Bengaluru; Editing by Nivedita BhattacharjeeOur Standards: The Thomson Reuters Trust Principles.

☆ Indian rupee could see big breakout after being locked in tight range - analysts
▼ + stars: | 2023-01-04 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Jan 4 (Reuters) - The Indian rupee's narrow trading range against the dollar over the last three weeks may set the stage for a big directional move and a jump in volatility, analysts said. Volatility - Anushka"The longer the narrow range prevails ... the higher is the risk of a big eventual break," said Anindya Banerjee, head research - fx and interest rates at Kotak Securities. He pointed to an instance in the recent past when a narrow trading range was followed by a major slide for the rupee. In September-October last year, the rupee fell from 80.00 to 83.29 in just a month after being held in the 79.50-80.00 range. The rupee has repeatedly found support just under the 83 level over the last three weeks.

☆ India's services growth at 6-month high on robust demand - PMI
▼ + stars: | 2023-01-04 | by ( Anant Chandak | ) www.reuters.com time to read: +2 min

REUTERS/Rupak De ChowdhuriBENGALURU, Jan 4 (Reuters) - India's services industry saw activity increase at the fastest pace in six months during the final month of 2022 amid robust demand, fuelling business optimism despite high costs, a private-sector survey showed. The S&P Global India services purchasing managers' index (PMI) (INPMIS=ECI) rose to 58.5 in December from 56.4 in the previous month, confounding expectation in a Reuters poll for a fall to 55.5. The index was above the 50-mark separating growth from contraction for the 17th straight month - the longest stretch of growth since June 2013. Hiring hit a five-month low, albeit in expansionary territory, even though the new business sub-index rose to a four-month high due to strong demand. Thanks to the growth in services as well as in manufacturing, the composite index rose to 59.4 in December, the highest since January 2012, from 56.7 in November.

☆ INDIA RUPEE Rupee's threat to slip below 83/USD likely nipped by cenbank
▼ + stars: | 2023-01-03 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

The rupee closed at 82.8800 per U.S. dollar, down from 82.7375 in the previous session. The local currency on the interbank order matching system fell to 82.9950, prompting state-run banks to sell dollars, likely on behalf of the RBI, three traders told Reuters. The rupee which was anyway under pressure on account of importer hedging was further hurt by the dollar's surge against its major peers. This week's U.S. data will help investors gauge how growth is holding up and the likely path for U.S. interest rates. Meanwhile, it was a choppy session for rupee premiums, with the 1-year implied yield trading in a 1.95% to 2.02% range.

☆ India's factories ended 2022 on a strong note
▼ + stars: | 2023-01-02 | by ( Vivek Mishra | ) www.reuters.com time to read: +2 min

BENGALURU, Jan 2 (Reuters) - India's manufacturing industry ended 2022 on a solid footing as business conditions improved at the fastest rate in over two years while growth in new orders and output accelerated, a business survey showed on Monday. The manufacturing purchasing managers' index (INPMI=ECI), compiled by S&P Global, rose to 57.8 in December from November's 55.7, better than a Reuters poll median forecast for 54.3. December's reading was the highest since October 2020 and above the 50-mark that separates growth from contraction for an 18th straight month. "Following a promising start to 2022, the Indian manufacturing industry maintained a strong performance as time progressed, wrapping the year with the best expansion in production seen since November 2021," noted Pollyanna De Lima, economics associate director at S&P Global Market. Additional materials were purchased and extra workers hired as companies sought to supplement production and maintain healthy levels of inventories.

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