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Last Trade - 17/09/21

Sector
Basic Materials
Size
Large Cap
Market Cap £11.03bn
Enterprise Value £12.95bn
Revenue £9.90bn
Position in Universe 45th / 3148

Indian bond yields surge on higher inflation, shares largely flat

Tue 14th January, 2020 5:03am
By Philip  George and Swati Bhat
    BENGALURU/MUMBAI, Jan 14 (Reuters) - Indian bond yields rose
sharply on Tuesday, while shares were little changed as hopes of
a rate cut in February dimmed after data showed a
higher-than-expected surge in inflation.
    India's annual retail inflation  INCPIY=ECI  rose to 7.35%
in December, its highest level in more than five years and well
above the Reuters poll of a 6.2% rise.  urn:newsml:reuters.com:*:nL4N29I2CB
    The benchmark 10-year bond yield  IN064529G=CC  was up 7
basis points at 6.68% by 0430 GMT, after rising to 6.7% earlier
and compared with its Monday's close of 6.60%.
    "Market expects that we have seen the top on inflation and
it will come off from these levels. RBI too is likely to wait
for 2-3 prints to see how it is panning," the head of debt
trading at a private bank said.
    The 10-year yield is expected to be capped at 6.75% levels
in the near term, the banker added.
    The rise in inflation in December was mainly driven by food
prices and market participants expect the central bank to look
through these temporary blips and remain accommodative in its
stance but rate cuts bets for February are not off the table.
    However, investors remain hopeful of a possible rate cut in
April after the union budget on Feb. 1 and as inflation starts
to moderate as per the central bank's projections.
    The NSE Nifty 50 index  .NSEI  climbed 0.060%% to 12,336.90
by 0414 GMT, while the benchmark S&P BSE Sensex  .BSESN  was
flat at 41,856.55.
    The partially convertible rupee  INR=D4  was at 70.86 per
dollar, compared with its previous close of 70.96. 
    The rate cut expectations from central bank has come down,
said Vinod Nair, head of research at Geojit Financial Services.
    Vedanta Ltd  VDAN.NS  rose 2.8% and was the biggest gainer
on the Nifty, while Yes Bank Ltd  YESB.NS  was the top loser,
falling 4.75%.
    IndusInd Bank Ltd  INBK.NS  and Wipro Ltd  WIPR.NS  shares
rose 0.09% and 0.73% ahead of their quarterly results due later
in the day.
    China would no longer be designated as a currency
manipulator, the U.S. Treasury Department said on Monday ahead
of Wednesday's signing of the Phase 1 trade agreement, a
development closely tracked by markets worldwide.
    MSCI's world shares gauge  .MIWD00000PUS  hit a fresh all
time high, while MSCI's broadest index of Asia-Pacific shares
outside Japan  .MIAPJ0000PUS  drifted higher.  MKTS/GLOB 

 (Reporting by Philip George in Bengaluru and Swati Bhat in
Mumbai)
 ((P.George@thomsonreuters.com; within U.S. +1 646 223 8780,
outside U.S. +91 80 6749 1609; Reuters Messaging:
p.george@thomsonreuters.net))
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