MORNING NEWS CALL

FACTORS TO WATCH 5:00 pm: RBI to release weekly foreign exchange data in Mumbai. 5:30 pm: Government to release November industrial production data in New Delhi. LIVECHAT - CHARTS & CHAT Reuters Stocks Buzz writer and Chartist Terence Gabriel calls out risks and opportunities in global markets via the charts at 8:00 pm IST. To join the conversation, click here INDIA TOP NEWS Modi's 'Make in India' a casualty as steel, auto firms spar over sourcing India's steel ministry is putting pressure on automakers to use locally made steel by refusing to back down on tougher import rules despite warnings that the new regulations could disrupt the production of cars, government and industry sources said. Ford, Jaguar slash thousands of jobs across Europe Ford and Jaguar Land Rover unveiled sweeping job cuts across Europe on Thursday as carmakers struggle with a slump in demand for diesel vehicles, tougher emissions rules and a global economic slowdown led by China. RBI to eye December quarter results before easing lending curbs on some banks Eleven Indian state-owned banks will have to wait for about a month before knowing which of them will have lending curbs eased after a Reserve Bank of India (RBI) panel reviews their December quarter results, an official with direct knowledge of the matter told Reuters on Thursday. POLL-India's inflation in December likely hit lowest since June 2017 India's December retail inflation is expected to have eased to its lowest since June 2017 as food costs fell and fuel prices rose at a slower pace, a Reuters poll showed, giving the central bank breathing space to keep policy on hold. Reserve Bank of India accountable to government, says reserves panel chairman The Reserve Bank of India is accountable to the government and should make policies within the framework set by the government, according to a former central bank chief now heading a panel tasked with framing guidelines for the transfer of the RBI's surplus funds to the government. After Monsanto patent ruling, Indian farmers hope for next-gen GM seeds A court ruling in India this week that upheld a Monsanto patent on genetically modified (GM) cotton seeds has raised hopes among farmers that the company would now launch its next-generation seeds, the application for which it pulled two years ago. India offers tax sops to small businesses ahead of election India's government announced a change in national sales tax rules on Thursday that would exempt an additional two million small businesses, in a move that could help garner support ahead of a general election that must be called by May. Tata Consultancy highlights strong deal pipeline, after record quarter Tata Consultancy Services, India's top software services exporter, on Thursday reported a record quarterly profit helped by gains in its key banking, financial services and insurance division and said it was well positioned for 2019 with a strong pipeline of client orders. GLOBAL TOP STORIES U.S. expects China's top trade negotiator to visit 'most likely' this month U.S. officials expect China's top trade negotiator may visit Washington this month, signaling that higher-level discussions are likely to follow this week's talks with mid-level officials in Beijing as the world's two largest economies try to hammer out a deal to end a tit-for-tat tariff war.

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Fed's Powell again stresses patience as U.S. economy's 'narrative' unfolds Federal Reserve Chairman Jerome Powell on Thursday stressed again that the U.S. central bank can be patient in approving any further rate increases as officials gauge whether the U.S. economy will slow this year, as some in financial markets worry, or continue motoring ahead as the Fed itself expects. Trump threatens to use emergency power to build wall, end shutdown Flanked by border agents who are going without paychecks during a government shutdown, U.S. President Donald Trump threatened on Thursday to use emergency powers to bypass Congress to pay for a wall on the U.S.-Mexico border. STATE OF THE MARKETS SGX Nifty nearest-month futures were trading 0.3 percent higher at 10,887.50 from its previous close. -NewsRise The Indian rupee is expected to open little changed against the dollar mirroring the quiet performance of its regional peers after Federal Reserve Chairman Jerome Powell once again said muted inflation allows the U.S. central bank to be patient on interest rates. The rupee will trade around 70.44-70.46 at opening versus its previous close of 70.42, according to a private bank dealer. -NewsRise Indian government bonds are expected to trade little changed ahead of the auction of a new 10-year bond today. The yield on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.46 percent - 7.50 percent band till the auction result today, a dealer with a state-run bank said. -NewsRise Wall Street extended its rally into a fifth straight day on Thursday in a session of whipsaw trading as investors responded to mixed comments by Federal Reserve Chairman Jerome Powell, while a warning from Macy's pummeled retail stocks. Asian stocks inched higher to one-month highs, after Federal Reserve Chairman Jerome Powell reiterated the U.S. central bank can be patient on raising interest rates further. The dollar held a soft tone versus its peers, on rising expectations the U.S. Federal Reserve may hit the pause button on monetary tightening if the economy slows this year. U.S. Treasury prices rose on Thursday as stocks weakened in choppy trading, but pared price gains after a soft 30-year bond auction and as Federal Reserve Chairman Jerome Powell said the U.S. central bank will "substantially" reduce the size of its balance sheet. Oil prices slipped as concerns over economic growth were rekindled after talks fell short of offering concrete steps to end the Sino-U.S. trade conflict, although OPEC-led production cuts bolstered sentiment in crude markets. Gold prices edged up as the dollar softened a touch on expectations the U.S. central bank will keep interest rates steady if the economy slows this year, while the Sino-U.S. trade spat also remained in focus.

CLOSE FII INVESTMENTS EQUITIES DEBT

PNDF spot 70.54/70.57 January 10 -$48.97 mln -$97.93 mln

10-yr bond yield 7.48 pct Month-to-date -$194.53 mln -$194.60 mln

Year-to-date --- ---

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PICTURE OF THE DAY

Kanaka Durga, 39 (L) and Bindu Ammini, 40, the first women to enter Sabarimala temple which traditionally bans the entry of women of menstrual age, pose for a photo after an interview with Reuters at an undisclosed location on the outskirts of Kochi, India, January 10. REUTERS/Sivaram V