MORNING NEWS CALL

FACTORS TO WATCH

4:00 pm: Federal cabinet likely to meet in New Delhi.

TRADING INDIA FORUM - INDIA EQUITY AND BOND MARKETS

Indian equity markets have been struck with bouts of volatility over the last couple of months. The brethren haven't had a

good time either, with the benchmark bond breaking 8 percent. Ritesh Jain, CIO-BNP Paribas Asset Management India

will answer queries on both these markets at 1100 am IST. Please note, he will not answer stock specific questions. To

join the conversation, click here.

LIVECHAT - FX FOCUS

Reuters polling editor in charge Rahul Karunakar will walk through the findings of the latest Reuters FX polls on the

dollar, euro, pound, rand, yuan and rupee, and what they signal at 1100 am IST. To join the Global Markets Forum,

click here.

INDIA TOP NEWS

India's retail inflation accelerates to four-month high in May

India's annual retail inflation accelerated to a four-month high in May, driven by higher fuel prices and a depreciating

rupee, strengthening views that the central bank could raise interest rates again in August.

Sun Pharma says Halol plant has gained U.S. clearance

Supply restrictions imposed on India's largest drugmaker Sun Pharmaceutical Industries by U.S. regulators have been

lifted, the company said on Tuesday, removing a major drag on its share price.

Farmers sow unapproved Monsanto cotton seeds, risking arrest

Many Indian farmers are openly sowing an unapproved variety of genetically modified cotton seeds developed by

Monsanto, as the government sits on the sidelines for fear of antagonising a big voting bloc ahead of an election next

year.

Indian oil imports from Iran surge to highest since 2016 -trade

India's oil imports from Iran surged to about 705,000 barrels per day in May, their highest level since October 2016,

according to data from shipping and industry sources, despite the threats of fresh U.S. sanctions.

U.S. State Dept OKs possible helicopter support sale to India -Pentagon

The U.S. State Department has approved a possible $930 million sale to India of items in support of a proposed direct

commercial sale of six AH-64E Apache helicopters, a Pentagon agency said on Tuesday.

GLOBAL TOP STORIES

Trump in surprise summit move says he will halt Korea war games

U.S. President Donald Trump made a stunning concession to North Korean leader Kim Jong Un about halting military

exercises, pulling a surprise at a summit that baffled allies, military officials and lawmakers from his own Republican

Party.

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Investors wipe $3 bln off China's ZTE market value after US settlement

Chinese telecommunications giant ZTE had about $3 billion wiped off its market value as it resumed trade after agreeing

to pay up to $1.4 billion in penalties to the U.S. government.

AT&T wins court approval to buy Time Warner over Trump opposition

AT&T won court approval to buy Time Warner for $85 billion, rebuffing an attempt by U.S. President Donald Trump's

administration to block the deal and likely setting off a wave of corporate mergers.

STATE OF THE MARKETS

SGX Nifty nearest-month futures were trading down 0.2 percent at 10,823. -NewsRise

The Indian rupee is expected to open lower against the dollar as investors assessed the likelihood of the U.S. Federal

Reserve signaling a more aggressive policy stance in the face of rising inflation and a buoyant economy. -NewsRise

Indian sovereign bonds will likely trade lower in early session as headline retail inflation and core inflation further

gained pace in May. Yield on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.95 percent -

8.01 percent band today. -NewsRise

The S&P 500 and Nasdaq ended higher on Tuesday, boosted by gains in the technology and utilities sectors, and

shares of media and telecom companies jumped in extended trade after AT&T won court approval to buy Time Warner.

Asian shares edged slightly lower as investors looked to the Federal Reserve policy decision and any clues it might

give on future rate hikes, shifting focus away from the historic U.S.-North Korea summit in Singapore.

The dollar approached a three-week high against the yen and stood tall against the euro ahead of the Federal

Reserve's policy meeting, which could give clues on how many more rate hikes might come out of the U.S. this year.

U.S. Treasury yields rose on Tuesday ahead of Wednesday's widely expected hike in interest rates by the Federal

Reserve and after inflation data met economists expectations.

Oil prices fell, pulled down by rising supplies in the United States and expectations that voluntary production cuts led by

producer cartel OPEC could be loosened.

Gold prices were little changed ahead of the U.S. Federal Reserve's policy decision which could give cues on future rate

hikes.

CLOSE FII INVESTMENTS EQUITIES DEBT

PNDF spot 67.38/67.41 June 12 -$173.2 mln -$38.09 mln

10-yr bond yield 8.17 pct Month-to-date $236.09 mln -$374.66 mln

Year-to-date -$8.56 mln -$4.6 bln

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PICTURE OF THE DAY

A Muslim boy plays with a mobile phone inside a mosque during the holy fasting month of Ramadan in Ahmedabad, June 12.

REUTERS/Amit Dave