To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_07012020.pdf If you would like to receive this newsletter via email, please register at: http://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH No major events are scheduled. LIVECHAT – REUTERS GLOBAL MARKETS FORUM Jim Wyckoff, senior analyst at Kitco Metals, joins the forum to discuss the outlook for gold, silver, palladium, platinum, and more as markets hesitate between economic optimism and fears over a second wave of COVID-19 infections. To join the conversation at 8:30 pm IST, click on the link: https://refini.tv/2P8N0Wp INDIA TOP NEWS • Firms in India downplay Chinese links amid wave of anti-China sentiment Indian startups with Chinese funding and Chinese smartphone makers are actively touting their Indian-ness to users as they seek to address a growing wave of nationalism following a deadly border clash between the two countries earlier this month. • Jindal Steel and Power to sell Oman unit for more than $1 billion to cut debt Jindal Steel and Power said on Tuesday it is selling its Oman subsidiary to Templar Investments Limited in a deal valued at over $1 billion, to ease the group’s debt burden. • Piramal Glass sees surge in vial demand due to COVID-19 – executive Piramal Glass has seen a 30% jump in sales of specialty vials used to bottle medicines in the June quarter, led by a surge in demand as more drugs are being made to combat the COVID-19 pandemic, a senior executive told Reuters. • U.S. charges generic drug firm Glenmark with price-fixing Glenmark Pharmaceuticals USA was charged on Tuesday with conspiring to fix prices for generic drugs, the U.S. Justice Department said in a statement. • Indian private firms seen developing 15 million tonnes capacity coal mines this year – minister India’s private companies could start developing coal mines with an annual capacity of 15 million tonnes by the end of March, the country’s coal minister told Reuters, a move that would end the near-monopoly of state-run Coal India. • The billionaire, Bollywood and the future of Indian soccer A storm could be brewing in India’s top-flight soccer, a glamorous and acrimonious world that encompasses Asia’s richest man, the cream of Bollywood and a self-styled former gangster. • Modi warns of coronavirus ‘negligence’ as some cities extend lockdowns India’s prime minister on Tuesday warned citizens against flouting rules to prevent the spread of the novel coronavirus, as he extended a vast social security scheme until November. • Essar group places bid for Petrobras’ Bahia refinery -sources Essar Group made a binding offer to Brazil’s Petroleo Brasileiro SA to buy the country’s second largest oil refinery, two people with knowledge of the matter said on Tuesday. GLOBAL TOP NEWS • Asia’s factory pain eases as region emerges from pandemic Asia’s factory pain showed signs of easing in June, as a rebound in China’s activity offered some hope the region may have passed the worst of the devastation caused by the coronavirus pandemic. • U.S. coronavirus cases rise by 47,000, biggest one-day spike of pandemic New U.S. COVID-19 cases rose by more than 47,000 on Tuesday according to a Reuters tally, the biggest one-day spike since the start of the pandemic, as the government’s top infectious disease expert warned that number could soon double. • Boeing kept FAA in the dark on key 737 MAX design changes -U.S. IG report Boeing failed to submit certification documents to the U.S. Federal Aviation Administration (FAA) detailing changes to a key flight control system faulted in two fatal crashes, a long-awaited government report seen by Reuters has found. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were 0.3% lower at 10,232.30. • The Indian rupee is expected to trade little changed against the dollar amid rangebound moves on Asian currencies despite regional equities beginning the new quarter on a positive note. • Indian government bond yields are seen lower in early trade, as state governments will likely raise a lower-than-expected quantum of funds by selling notes during July-September. The yield on the benchmark 5.79% bond maturing in 2030 is likely to trade in a 5.85%-5.92% range. GLOBAL MARKETS • The S&P 500 rallied on Tuesday to finish higher and secure its biggest quarterly percentage gain in more than two decades as improving economic data bolstered investor beliefs that a stimulus-backed rebound for the U.S. economy was on the horizon. • Asian share markets began the second half of 2020 struggling for headway, as consistently strong economic data was offset by worries that surging coronavirus cases in the United States could derail the world’s recovery before it properly begins. • The dollar held gains against the yen ahead of data expected to show U.S. manufacturing activity and hiring continued to recover from the economic shock caused by the coronavirus pandemic. • U.S. Treasury yields on the longer rose on Tuesday as month-end rebalancing injected a touch of volatility into the market. • Oil prices rose after an industry report showed crude inventories in the United States fell much more than expected, suggesting demand is improving even as the coronavirus outbreak spreads around the world. • Gold prices edged higher, hovering near an eight-year high, as a spike in COVID-19 infections in the United States assuaged hopes of a swift economic rebound, pushing investors towards the safety of bullion. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 75.51/75.54 June 30 (103.91) crores 975.72 crores 10-yr bond yield 5.89% Month-to-date 21,832 crores (1,545) crores Year-to-date (18,513) crores (1,06,959) 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 = 75.54 Indian rupees) (Compiled by Pranay Prakash in Bengaluru)

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