September 2, 2019 by BizWhiz Admin in Economy Snapshot 0 comments 171

Dear Colleagues

I am pleased to attach the Economy / Market Snapshot covering all the major events in August, 2019

Indian Markets were down by 1% in August with the Nifty just above 11,000 mark. While the market came down heavily during the first few weeks, thanks to the announcement of various measures to revive the economy by the Finance Minister, market recovered in the last week to minimize the losses during the month. All the sectoral indices were up except for Bank Nifty which lost 5%. IT and Auto posted gains of around 2%. We need to see the impact of the big announcements of mergers of large public sector banks in the coming week. FII’s pulled about Rs.16,100 crores from the equity market while Domestic Institutional Investors invested about 16,900 crores. Indian Rupee closed at Rs.71.40 for 1 US $ losing about 4% over last month.

On the Global markets front, it was all RED last month. DOW lost about 2%, Nasdaq about 2.50%, London by 5%, Tokyo by 4%, Hong Kong by 7% and China by 1.50%. The fear of recession and the continuing trade war between US and China and the confusion over the Brexit is making the world markets jittery. With the nervousness of the stock markets, the winners are Gold and Silver. Gold went up by 12% and Silver went up by 13% last month. Crude went down by 7% and currently trading at $ 60 a barrel.

The market bounced back from the 10,800 levels. With the recent announcement of 5% GDP growth which is the worst in 5 years, need to see whether the sentiments can turn positive or we continue to lose in the coming month!

Happy reading!…….

Regards
V Murali

General News

  • Centre scraps Article 370, bifurcates J&K into two Union Territories Jammu and Kashmir, Ladakh.
  • Top leadership of the state placed under house arrest; section 144 imposed.
  • President declares abrogation of provisions of Article 370 after both Houses passed a resolution.
  • Major countries in the world with the exception of Pakistan and China back India’s move
  • Opposition leaders led by Rahul visits J & K but were sent back; SC lets Sitaram Yechury to visit.
  • India will have Chief of Defence Staff: PM Modi at 73rd Independence Day 2019.
  • Parliament session ends after getting extended by 10 days; 28 Bills were introduced and passed.
  • President Ram Nath Kovind gives nod to Bill criminalising Triple Talaq.
  • Chandrayaan 2 successfully leaves earth orbit, begins journey to the moon.
  • CBI arrests P Chidambaram in connection with INX Media case; SC grants interim protection in ED case.
  • PM Modi launches RuPay card in Bhutan, signs 9 MoUs
  • PM Modi sign 3 MoUs in Bahrain and launches RuPay card in UAE; both countries honour PM with their high civilian award.
  • PM Modi meets French President, British PM and UN Chief at G7 Summit.
  • India Pakistan can sort issue out bilaterally says Trump after meeting with PM Modi.
  • G 7 summit ends with little consensus amid Trump’s mixed messaging on the trade war and stalemate over Paris climate deal.
  • ASEAN INDIA ministerial meet: EAM Jaishankar holds key bilateral meetings.
  • Union Minister Piyush Goyal leads Chief Ministerial delegation to Russia.
  • Tamil Nadu CM Edappadi K Palaniswami leaves on fortnight long foreign trip covering UK, US and Dubai.
  • PM Modi launches a nation wide Fit India Movement on National Sports Day.
  • Amit Shah meets CMs of Maoist hit states, reviews operations against Naxals, development activities.
  • HRD ministry launches NISHTHA to train over 42 lakh teachers across the country.
  • Former PM Manmohan Singh elected unopposed to Rajya Sabha.
  • RN Ravi, ex IB officer and Centre’s interlocutor for Naga peace talks, sworn in as Governor of Nagaland.
  • Sonia Gandhi appointed as interim Congress President.
  • Bill to increase number of Supreme Court judges gets President’s assent.
  • SC begins daily hearings in Ayodhya land title dispute case, rejects plea for live streaming proceedings.
  • India test fires Quick Reaction Surface to Air Missile.
  • Final Assam NRC list declared: over 3.11 crore included, more than 19.06 lakh excluded.
  • Death toll nears 200 in 4 flood hit states of Gujarat, Kerala, Karnataka and Maharashtra.
  • Karnataka CM Yediyurappa names 3 deputy CMs, 17 MLAs sworn in as ministers.
  • Arvind Kejriwal led govt announces free electricity up to 200 units in Delhi.
  • Tamil Nadu Chief Minister K Palaniswami launches exclusive education TV channel.
  • J Jayalalithaa’s Veda Nilayam to be converted into memorial after Chennai District Magistrate’s approval.
  • Survey of India signs MoU with Maharashtra govt to map 40,000 villages using drones.
  • Pranab Mukherjee, Bhupen Hazarika, Nanaji Deshmukh (both posthumously) awarded Bharat Ratna
  • Wing Commander Abhinandan Varthaman and five other IAF pilots who spearheaded the Balakot operation get gallantry awards.
  • Deepa Malik and Bajrang Punia conferred with Rajiv Gandhi Khel Ratna Award.
  • Mumbai’s Aarohi Pandit becomes the World’s first woman pilot to fly solo across Atlantic & Pacific Ocean.
  • Sushma Swaraj, Arun Jaitley, Former Bihar CM Jagannath Mishra passed away.
  • Pakistan’s efforts to internationalise Kashmir snubbed as UNSC consultations end without outcome.
  • Pakistan suspends Delhi Lahore bus service; bans sale of Indian film CDs and Indian Ads.
  • Islamabad offers consular access to Kulbhushan Jadhav with riders, India seeks unimpeded access.
  • Queen approves PM Boris Johnson plan to suspend UK Parliament ahead of Brexit.
  • Brazil softens its stance towards accepting foreign aid to combat the Amazon wildfires.
  • Sri Lanka ends emergency four months after Easter attacks.
  • Hong Kong protests crosses consecutive 12th weekend; at least 28 countries have issued travel advisories.
  • North Korea conducts 7 weapon tests in a month.
  • Iran’s Rouhani rules out US talks until sanctions are lifted.
  • Indonesian President unveils site of new capital on Borneo island.
  • 8th round of negotiations between US and Taliban ends, peace agreement expected to be finalised soon.
  • 31 dead in 2 mass shootings in Ohio and El Paso in less than 24 hours.
  • India vs West Indies: India lead 2 Test match series 1-0; clinches ODI and T20 series.
  • Virat Kohli equals Dhoni’s mark as 27th win as captain.
  • Virat Kohli Scores 42nd Century, becomes first player to score 20,000 international runs in a decade.
  • Jasprit Bumrah becomes the fastest Indian to scalp 50 Test wickets.
  • Steve Smith overtakes Virat Kohli as second fastest to 24 Test centuries.
  • BCCI agrees to come under the ambit of National Anti Doping Agency.
  • Women’s T20 Cricket to be included in 2022 Commonwealth Games.
  • PV Sindhu creates history, becomes first Indian to win BWF World Championships Gold.
  • S Rankireddy and Chirag Shetty become first Indian pair to win BWF Super
  • Vinesh Phogat wins third successive Gold in 53kg in Poland Open.

 

Business News

  • Govt amalgamates 10 PSU banks in to 4 entities; Punjab National Bank, OBC & United Bank to be merged to become the second largest PSB.
  • Canara and Syndicate Bank; Union, Andhra and Corporation Bank; Indian and Allahabad Bank to merge.
  • RBI approves surplus transfer of ₹1.76 lakh crore to govt as it accepts Bimal Jalan Committee report.
  • RBI cuts repo rate by 35 bps to 5.4%, 4th reduction in a row, lowers GDP growth forecast to 6.9% for
    FY20.
  • RBI Annual Report: Central bank’s income zooms 146.5% to ₹1.93 lakh crore in FY19.
  • Govt withdraws super-rich surcharge on foreign, domestic equity investors, as announced in the Budget.
  • Cabinet eases FDI norms in single-brand retail, allows 26% in digital media.
  • 100% FDI for coal mining and contract manufacturing to be allowed under automatic route.
  • GST collections rise 5.8% to ₹1.02 lakh crore in July, cess collection stands at ₹8,551 crore.
  • India’s GDP Growth Drops to 5% for First Quarter of FY20, Slowest in Six Years.
  • Government launches new GDP series to align with global method.
  • Fiscal deficit crosses 77% of budgeted target in first 4 months of FY20.
  • IT dept launches e-Filing Lite, a lighter version of e-Filing portal.
  • RBI allows Bank of China to offer regular banking services in India.
  • Govt announces infusion of ₹70,000-crore capital into public sector banks.
  • Housing finance companies get ₹10,000-crore liquidity infusion.
  • Banks’ Tier 1 exposure to single NBFC hiked to 20%.
  • Jana Small Finance Bank receives Scheduled Bank status from RBI.
  • NSE revises eligibility criteria for inclusion in Nifty indices.
  • Affle India, Sterling and Wilson Solar and Spandana Sphoorty Financial make their market debut.
  • Rupee hits new 2019 low against US Dollar; Gold prices surge to new life-time high.
  • ED files first chargesheet in IL&FS case, attaches ₹570 crore assets.
  • SC upholds amendments to IBC, gives status of financial creditors to homebuyers.
  • ED arrests Kamal Nath’s nephew Ratul Puri in ₹354-crore bank fraud case.
  • US Fed cuts key policy rate by 25 bps, the first reduction in more.
  • China’s Yuan sinks to lowest in 11 Years amid global recession buzz, trade war.
  • India, US agree on collaboration between Defence industry and start-ups.
  • Trump adds tariffs to $550 billion of Chinese imports in trade war reprisal.
  • Trump, Abe agree on principles of trade deal at G7; Japan agrees to buy excess US corn.
  • South Korea and Japan remove each other from their preferred trade list.
  • Government sanctions 5,595 electric buses for public transport in 64 cities under FAME II.
  • Major players in auto and its ancillary sectors announce either temporary production shutdown or layoff.
  • Kia Seltos mass production begins its manufacturing facility in Anantapur, Andhra Pradesh.
  • Mahindra inaugurates its first automotive assembly plant in Sri Lanka.
  • Karnataka government gives approval to Goodrich Aerospace’s ₹480 crore investment in Bengaluru.
  • Jet Airways lenders give third extension for EoI to August 31.
  • Zomato, Swiggy, Uber Eats, Foodpanda receive letters from restaurant authority urging ban of discounts.
  • Reliance Jio GigaFiber: Customers to get free HD, 4K LED TV, 4K set-top-box with annual plans.
  • Rel Jio, Microsoft join hands to offer cloud infra for businesses.
  • Reliance-BP ink new fuel retail JV; to set up 5,500 petrol pump outlets in 5 years.
  • Govt launches programme for converting used cooking oil into biodiesel in 100 cities.
  • Saudi oil giant to take 20% stake in Ambani’s Reliance refinery for ₹5 Lakh crore.
  • Shell exits city gas business in India, sells its 10% stake in Mahanagar Gas Ltd.
  • Aramco Trading sells first U.S. West Texas Light crude to South Korea’s Hyundai.
  • Amazon opens its largest campus in the world in Hyderabad.
  • Amazon India launches Amazon Fresh store with 2-hour delivery on Amazon.in.
  • Amazon acquires 49% stake in Kishore Biyani’s Future Coupons.
  • IKEA forays into ecommerce in India, launches online delivery system in Mumbai.
  • Paytm retains BCCI title sponsorship rights till 2023 for ₹326.8 crore.
  • Ola expands operations in Australia; launches service in Sunshine Coast.
  • Tiffany partners with Mukesh Ambani’s RIL to open stores in India.
  • Apple starts issuing its virtual credit card to iPhone users.
  • Huawei unveils Android rival Harmony operating system.
  • Oppo, Vivo, Xiaomi team up to create cross-brand file transfer feature.
  • Japanese automakers Toyota, Suzuki to form capital tie-up.
  • Reliance Jio tops market with 31.7% revenue share in June quarter; Airtel in 2nd spot.
  • Apple tops premium smartphone market in India during Q2 2019 led by iPhone XR.
  • India sees record 36.9 million smartphone shipments in Q2.
  • Delhi world’s 10th fastest growing prime residential market: Knight Frank’s Prime Global Cities Index.
  • Rishad Premji takes over as Wipro Chairman; Azim Premji to continue to serve as Non-Executive Director.

 

Q1 Results

  • SBI reports Q1 profit at ₹2,312 crore on lower provisioning, NII grew by 5.2% YoY to ₹22,938.8 crores.
  • HDFC Q1 profit surges 46% YoY to ₹3,203 crore on one-time gain, NII up at ₹2,739 crores.
  • HCL Tech’s Q1 profit dips 7.60% YoY to ₹2,220 crore, revenue up 18.40% to ₹16,425 crore.
  • Ashok Leyland’s Q1 profit plunges 45% YoY to ₹230 crore, revenue fell 9% to ₹5684 crore.
  • M&M Q1 adjusted profit falls 29% to ₹892.7 crore, passenger vehicle growth worst in 18 years.
  • Airtel posts its Q1 loss of ₹2,866 crores in 14 years, consolidated revenue up 4.7% to ₹20,738 crores.
  • RCom Q1 loss widens to ₹366 crore, total income declines to ₹866 crore.
  • ITC Q1 net profit rises 12.69% YoY to ₹3,173.94 crores; revenue rises 5.8% YoY to ₹11,502.82 crore.
  • Britannia Q1 profit falls 3% YoY to ₹251 crore, consolidated revenue rose 6% to ₹2,677 crore.
  • SpiceJet posts highest ever Q1 profit at ₹262 crore, revenue surges 34% YoY to ₹29,217.9 crore.
  • Sun Pharma Q1 profit surges 31% to ₹1,387 crore, revenue rose 15.69% YoY to ₹8,259.30 crore.

 

WORLD INDICES
Indices 30-Aug 31-Jul % 1M 01-Jan % since Jan
 BSE 37333 37481 -0.40% 36255 2.97%
 NSE 11023 11118 -0.85% 10910 1.04%
 DOW 26403 26864 -1.72% 23327 13.19%
 NASDAQ 7963 8175 -2.60% 6635 20.01%
 FTSE 7207 7587 -5.00% 6728 7.12%
 Nikkei 20704 21522 -3.80% 20015 3.45%
 Hang Seng 25725 27778 -7.39% 25846 -0.47%
 Straits Times 3107 3301 -5.88% 3069 1.23%
 Shanghai 2886 2933 -1.58% 2494 15.73%
 USD 71.40 68.79 3.79% 69.45 2.81%
 Euro 78.49 76.02 3.25% 79.50 -1.28%
 GBP 88.82 83.45 6.43% 88.40 0.47%
 Yen/100INR 0.67 0.63 6.60% 0.63 5.80%
 Gold 38656 34517 11.99% 31422 23.02%
 Silver 46742 41227 13.38% 38786 20.51%
 Crude Brent $ 60.43 65.17 -7.27% 53.50 12.95%
 Crude Nymex $ 55.10 57.88 -4.80% 45.31 21.61%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
30-Aug 27428 16010 7009 29257 8072
31-Jul 28876 15620 6852 29066 7988
% 1M -5.02% 2.50% 2.30% 0.66% 1.06%
01-Jan 27392 14451 9182 30398 8882
% since Jan 0.13% 10.79% -23.67% -3.75% -9.12%

INDIAN TRADE(USD MILLION)
Exports 26330
Imports 39760
FDI 7001
Government Bond 10Y 6.56%
GDP YoY 5.00%
Inflation Rate 3.15%
Forex Reserves $ M 429050
IIP % -3.90%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
 Equity (16127) 16891
Debt 10822 48376
Total 1 M (5305) 65266
Total Since Jan 79082 418703
Equity 49476 39238
Debt 29605 379465

 

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