MORNING NEWS CALL

FACTORS TO WATCH

11:00 am: Interim Finance Minister Piyush Goyal to present budget for next fiscal year in New Delhi. 2:30 pm: State Bank of India earnings conference call in Mumbai. 5:00 pm: RBI to release weekly foreign exchange data in Mumbai. 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 Indian jobless rate at multi-decade high, report says, in blow to Modi An official survey that has been withheld by the government shows India's unemployment rate rose to its highest level in at least 45 years in 2017/18, the Business Standard newspaper reported on Thursday, delivering a blow to Prime Minister Narendra Modi months before a general election. Three Indian state banks come off central bank watchlist India's central bank on Thursday removed Bank of India and Bank of Maharashtra from its prompt corrective action plan (PCA) for state-owned banks with high levels of bad debt and inadequate capital, confirming a Reuters newsbreak. PM Modi looks to budget on Friday to shore up political base Prime Minister Narendra Modi's government is expected to try and shore up its political support with big ticket farm giveaways and tax cuts for the middle class in its final federal budget, months before elections. Walmart, Amazon scrambling to comply with India's new e-commerce rules Walmart Inc-owned Flipkart and Amazon.com's Indian unit are rushing to rejig ownership structures and rework some key vendor relationships, as they seek to comply with new Indian e-commerce curbs without disrupting their businesses. Further, Amazon.com took down an array of items from its India website including Echo speakers, batteries and floor cleaners. Bharti Airtel posts 72 percent third-quarter profit drop as price pressure weighs Bharti Airtel posted a nearly 72 percent fall in quarterly profit on Thursday, its 11th straight profit decline on a year-on-year basis, as the telecoms bellwether suffered from continuing pricing pressure. Dewan Housing slumps 20 percent after sources say govt launches probe Shares of Indian home loan provider Dewan Housing Finance Corp slumped 20 percent on Thursday, after government sources told Reuters a probe had been launched into allegations of financial mismanagement against the company. Vedanta quarterly profit dives 21 percent, but beats estimate Miner Vedanta posted on Thursday a 21.1 percent fall in third-quarter profit, hit by a drop in commodity prices and shutdown of its copper smelter in south India. Yes Bank appoints Ajai Kumar as interim chief executive Yes Bank on Thursday named Ajai Kumar as interim chief executive, effective Feb. 1, until Ravneet Gill takes charge. GLOBAL TOP STORIES Trump to meet with China's Xi to try to seal trade deal, progress reported U.S. President Donald Trump said on Thursday he will meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal as Trump and his top trade negotiator both cited substantial progress in two days of high-level talks.

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Amazon sales outlook falls short after record holiday quarter Amazon.com on Thursday forecast first-quarter sales below Wall Street estimates, warning that new regulations in India had created uncertainty around one of its key growth markets and saying it would step up investments in 2019. Japan's Jan factory activity weakens to 29-month low as export orders tumble-PMI Japanese manufacturing activity grew at the slowest pace in 29 months in January as export orders shrank sharply, a business survey showed, adding to signs that the U.S.-China trade war is inflicting more pressure on the slowing global economy. STATE OF THE MARKETS SGX Nifty nearest-month futures were trading 0.3 percent higher at 10,890.00 from its previous close. -NewsRise The Indian rupee is expected to open little changed against the dollar ahead of the interim budget. -NewsRise Indian government bonds are expected to trade largely unchanged as most participants may refrain from building new positions ahead of the budget today, amid expectations that the government will announce a package for farmers ahead of general elections that are due by May. The yield on India's benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.46 percent - 7.51 percent band until the budget announcement at 11 a.m. -NewsRise Wall Street ascended on Thursday, with the S&P 500 wrapping up its biggest monthly increase since 2015 after strong earnings from Facebook Inc added to optimism after the Federal Reserve's dovish remarks. Asian shares backed away from four-month highs as a dismal survey on Chinese factory activity dulled optimism about the prospects for a Sino-U.S. deal on tariffs. The Australian and New Zealand dollars held steady versus the greenback, as the Federal Reserve's more dovish stance and improved prospects for a U.S.-Sino trade deal boosted investor risk appetite. The 30-year Treasury yield fell below 3 percent on Thursday after manufacturing data disappointed and a measure of wage inflation came in weaker than expected, reinforcing the Federal Reserve's suggestion it may need to pause before lifting borrowing costs further. Oil prices held steady, torn between hopes the United States and China could soon settle their trade disputes and new data raising fresh concerns over China's economic slowdown. Gold held firm near nine-month highs touched in the previous session on the back of a pause in U.S. interest rate hikes, although optimism about a Sino-U.S. trade deal boosted risk appetite, capping gains.

CLOSE FII INVESTMENTS EQUITIES DEBT

PNDF spot 71.07/71.10 January 31 $423.68 mln -$18.79 mln

10-yr bond yield 7.49 pct Month-to-date -$463.29 mln -$805.85 mln

Year-to-date --- ---

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PICTURE OF THE DAY

A horse stands inside a stable ahead of upcoming Derby race in Mumbai, January 31. REUTERS/Danish Siddiqui