To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_12142017.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 11:00 am: Finance Minister Arun Jaitley, Defense Minister Nirmala Sitharaman and some state finance ministers at FICCI’s annual general meeting in New Delhi. 11:00 am: India’s President Ram Nath Kovind and Power & Energy Minister R.K. Singh at National Energy Conservation Day function in New Delhi. 11:00 am: Transport Minister Nitin Gadkari to address ISMA annual general meeting in New Delhi. 12:00 pm: Government to release November wholesale price inflation data in New Delhi. 12:30 pm: Deccan Healthcare to announce its IPO on the SME Exchange in Mumbai. 1:00 pm: Transport Minister Nitin Gadkari likely to brief media in New Delhi. 2:00 pm: Benow CEO Sudhakar Ram and Yes Bank Chief Digital Officer Ritesh Pai at launch of integrated Bharat QR acceptance solution in Mumbai. 4:30 pm: RBI Deputy Governor Viral Acharya, National Stock Exchange MD & CEO Vikram Limaye, SEBI Chairman Ajay Tyagi, Kotak Mahindra Bank MD Uday Kotak, Insolvency and Bankruptcy Board Chairperson M.S. Sahoo, Piramal Group and Shriram Group Chairman Ajay Piramal at NSE-NYU conference on Indian Financial Markets in Mumbai. 5:00 pm: Leaders of various parties in both the Houses of Parliament to meet ahead of the Winter Session in New Delhi. INDIA TOP NEWS • Indian inflation spike hits bonds, spurs rate policy and fiscal worries India's benchmark 10-year bond hit its lowest in more than 16 months on Wednesday, as investors saw surging inflation as a potential threat to a still-struggling economy and a daunting challenge to policymakers. • Fox's Star to bring Disney cash and cricket in India Walt Disney Co's expected deal with Twenty-First Century Fox Inc would give the world's best-known entertainment company new advantages in India, such as cricket rights and local-language TV shows for the fast-growing media market. • India's tax department considers tax on virtual currencies India's federal tax authority is investigating bitcoin exchanges to try and find a way to tax transactions, an official said on Wednesday, even as its central bank has warned against dealing in virtual currencies. • India's Corporation Bank under RBI 'corrective action' lens on bad loans India's state-run Corporation Bank said on Wednesday that the Reserve Bank of India has initiated 'prompt corrective action' for the lender over high bad loans and the need to raise capital. • India delays deadline to link identity details to bank, phone services India on Wednesday dropped a December 31 deadline for citizens to link identity details to facilities such as bank accounts and telephone numbers, saying it would announce a fresh date later. • India's top court halts govt takeover of Unitech management India's Supreme Court halted on Wednesday a government takeover of the management of realty firm Unitech Ltd, while it was dealing with dozens of petitions over the company's failure to deliver apartments and honour its deposits. • India's top court allows cement industry to use petroleum coke India's Supreme Court on Wednesday allowed the cement industry to use petroleum coke, a dirtier alternative to coal which had temporarily been banned as pollution levels shot up in Delhi last month. GLOBAL TOP NEWS • Fed raises interest rates, keeps 2018 policy outlook unchanged The Federal Reserve raised interest rates on Wednesday but left its rate outlook for the coming years unchanged even as policymakers projected a short-term jump in U.S. economic growth from the Trump administration's proposed tax cuts. • U.S. Republicans forge tax deal, final votes seen next week Congressional Republicans reached a deal on final tax legislation on Wednesday, clearing the way for final votes next week on a package that would slash the U.S. corporate tax rate to 21 percent and cut taxes for wealthy Americans. • Bank of England's Brexit views in focus as rates set to stay on hold The Bank of England's views on Brexit will be scrutinised by investors on Thursday when the central bank announces its first policy decision since raising rates for the first time in more than a decade last month. LOCAL MARKETS OUTLOOK (As reported by NewsRise) The SGX Nifty Futures were at 10,274.00, trading up 0.51 percent from its previous close. Indian government bonds are likely to trade higher in early session tracking a fall in U.S. Treasury yields after the Federal Reserve’s policy decision was on expected lines. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 7.14 percent-7.20 percent band. The note closed at 97.40 rupees, yielding 7.17 percent, yesterday. The Indian rupee will likely edge higher against the dollar, after the U.S. Federal Reserve hiked interest rates as expected, but stuck to its projection for three increases next year amid subdued inflation in the world’s largest economy. GLOBAL MARKETS • The S&P 500 ended slightly lower on Wednesday pressured by the financial sector after the Federal Reserve announced a widely expected interest rate hike but kept its rate outlook for coming years even as it projected faster U.S. economic growth. • Asian stocks edged higher after the Federal Reserve delivered a much-anticipated interest rate hike but flagged caution about inflation, tempering expectations for future tightening, which weighed on the dollar and Treasury yields. • The dollar nursed its losses, having tumbled after the Federal Reserve raised interest rates in a widely expected move, but left its rate outlook for the coming years unchanged. • U.S. Treasury yields fell on Wednesday as a report on consumer prices in November fell short of analysts' forecasts, reducing bets on a broad pickup in inflation and supporting the view the Federal Reserve would remain on a gradual rate-hike path. • Oil prices rose, lifted by a fourth straight weekly fall in U.S. crude inventories, though rising output capped prices well below the 2015 highs reached earlier this week. • Gold inched up in early trade as the dollar was nearly unchanged after tumbling in the previous session following the U.S. Federal Reserve's widely expected decision to raise interest rates, although it left the outlook on rates unchanged. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.43/64.46 December 13 - 89.90 mln -58.82 mln 10-yr bond yield 7.20 pct Month-to-date - 305.14 mln Year-to-date - 26.04 bln 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 = 64.4500 Indian rupees)