Alongside the pullback in EMFX more...........>

INDIA: Alongside the pullback in EMFX more broadly, INR had a poor session,

finishing the trading day at session lows against the USD and registering the

lowest close since early March. Global trade tensions are the source of the

pain, with China and the US issuing ever-higher tariffs against each other. The

moves in spot have been reflected in vol markets too, with the 1m measure

printing the highest levels since December to reflect the uncertainty. Higher

oil prices and poor industrial production data released Friday also clouded the

outlook.

-Equity flow data worked against the INR today, with NSE data showing global

funds were net sellers of Indian stocks to the tune of INR 10.6bln (around

$150mln). This was reflected in lower index prices Monday, with both the SENSEX

and the NIFTY50 dropping around 1% or so.

-Spot volatility drove options volumes Monday, with total notional traded well

over double the average, with USD/INR calls leading the way. 72.50 and 74.45

call strikes were particularly popular alongside volatility trades.