 To access a PDF version of this newsletter, please click here If you would like to receive this newsletter via email, please register at: FACTORS TO WATCH No major events are scheduled. LIVECHAT - REUTERS GLOBAL MARKETS FORUM Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence andformer Federal Reserve advisor, speaks on where equities could go from here, thetrajectory of the U.S. economic recovery, and the efficacy of the FederalReserves latest moves to prop up markets. To join the conversation at 8:30 pmIST, click on the link: INDIA TOP NEWS Indias factory activity contracts for third straight month in June Indias manufacturing activity contracted for a third straight month inJune, albeit at a much shallower pace, as demand and output continued to sufferfrom three months of lockdowns to quell the spread of the coronavirus, a privatesurvey showed. India asks telcos, internet firms to block banned Chinese apps, ByteDanceto hold talks India has ordered telecom companies and other internet providers to stopaccess to 59 banned Chinese-origin apps, according to notices seen by Reuters,intensifying efforts to crack down on such businesses following a border clashbetween the nations. Fujifilm to partner with Dr. Reddys to sell Avigan as COVID-19 treatment Japans Fujifilm Holdings announced a deal with Indias Dr ReddysLaboratories and Dubai-based Global Response Aid GRA to sell its anti-flu drugAvigan for COVID-19 treatment globally excluding Japan, China and Russia. Indias fuel demand extends recovery in June Indias fuel consumption rose in June compared with May, continuing with agradual recovery as industrial and transport sectors reopened after a stringentlockdown, a government statement issued on Wednesday said. NLC India boiler blast kills six, units shut for safety audit A boiler blast on Wednesday at lignite miner and electricity generator NLCIndias plant in the southern Tamil Nadu state has killed six people, thecompany said, the second deadly accident at the plant in two months. Carlyle to buy 25 of Bharti Airtels data centre arm for 235 million Carlyle will buy a 25 stake in Indian telecom firm Bharti Airtels datacentre arm for 235 million, the U.S. private equity group said on Wednesday, asit taps into the rapid growth of digital services in India. DHL temporarily suspends Chinese import shipments to India German logistics company DHL said on Wednesday it had temporarily suspendedpicking up import shipments from China to India, after border tensions betweenthe countries led to clearance delays. Indias Bharti targeting collapsed satellite operator OneWeb -sourcesIndian conglomerate Bharti Enterprises is backing a bid for collapsedSoftBank-backed satellite operator OneWeb, two sources said, in a consortiumthat is supported by the British government. GLOBAL TOP NEWS Reopenings stall as U.S. records nearly 50,000 cases of COVID-19 in singleday Governors of U.S. states hit hardest by the resurgent coronavirus halted orreversed steps to reopen their economies on Wednesday, led by California, thenations most populous state and a new epicenter of the pandemic. U.S. House passes bill to sanction Chinese banks over Hong Kong The U.S. House of Representatives passed legislation on Wednesday that wouldpenalize banks doing business with Chinese officials who implement a nationalsecurity law that House Speaker Nancy Pelosi called a brutal, sweepingcrackdown on Hong Kong. BioNTech and Pfizers COVID-19 vaccine shows potential in human trial A COVID-19 vaccine developed by German biotech firm BioNTech and U.S.pharmaceutical giant Pfizer has shown potential and was found to be welltolerated in early-stage human trials, the companies said on Wednesday. LOCAL MARKETS OUTLOOK As reported by NewsRise SGX Nifty nearest-month futures were 0.8 higher at 10,474.30. The Indian rupee is expected to strengthen against the dollar asbetter-than-expected U.S. manufacturing and private payrolls data affecteddemand for safe-haven assets. Indian government bond yields are likely to edge lower in early trade,ahead of the central banks so-called special open market operation. The yieldon the benchmark 5.79 bond maturing in 2030 is likely to trade in a range of5.80-5.85. GLOBAL MARKETS The SP 500 and Nasdaq indexes closed higher on Wednesday to kick off thethird quarter as increasing optimism for a safe and effective COVID-19 vaccineeased concerns that another round of business lockdowns was likely. Asian stocks tracked Wall Street higher although sentiment was cautiousahead of U.S. employment data while copper prices jumped to more than six-monthhighs on a better global outlook and supply fears in top producer Chile. The dollar was on the defensive against more growth-sensitive currencies,following upbeat U.S. and European economic data but renewed worries about thecoronavirus blunted more aggressive risk taking. U.S. Treasury yields on the long end of the curve shot higher on Wednesdayafter data showed manufacturing activity rebounded in June and minutes from theFederal Reserves last meeting indicated yield curve control was not cominganytime soon. Oil prices dipped after the United States recorded its biggest one-dayspike in coronavirus cases and California reimposed some lockdown measures,stoking worries a resurgence in COVID-19 cases will stall a recovery in fueldemand. Gold prices slipped, easing from a near eight-year high hit in theprevious session, as strong U.S. data and hopes for a potential COVID-19 vaccinedented safe-haven sentiment. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 75.5875.61 July 1 1,942.79 crores 23.34 crores 10-yr bond yield 5.84 Month-to-date 1,942.79 crores 23.34 crores Year-to-date 20,456 crores 1,06,982 crores FII investment numbers are in Indian rupees. Source: National SecuritiesDepository Limited For additional data: India govt bond market volumes Stock market reports Non-deliverable forwards data Corporate debt stories IN CORPD Local market closingintraday levels IN SNAPSHOT Monthly inflows INFLOWS RTRS TABLE IN 1 75.44 Indian rupees Compiled by Pranay Prakash in Bengaluru 