January 1, 2018 by BizWhiz Admin in Economy Snapshot 0 comments 963

Dear Colleagues,
I am pleased to attach the Economy / Market Snapshot covering all the major events in December, 2017.
Today we are in 1st January, 2018 – Another New Year with a great hope.
2017 was a spectacular year for India and Global markets. Currently the Indian Stock market is at the peak with the Sensex crossing the 34,000 mark. Just glance through some of the milestones:

  • Indian market went up by 28% in 2017, one of the highest in the recent past
  • Bank Nifty registered 42% growth in one year while Pharma lost about 7%
  • FII’s pumped in about Rs 50,000 crores in the Equity market while the Domestic Institutions poured in Rs 115,000 crores in the Equity market
  • Indian Rupee which was at Rs.68.22 on 2nd January, 2017 is now at Rs.63.87, a change of 6%
  • Gold went up by 6% while Silver was at almost same level
  • Brent Crude went up by 17% while Nymex moved up by 12%
  • Inflation rate at 4.88%, India’s forex reserves at US $ 405 billion
  • YOY GDP remains at 6.30%

Globally,

  • US markets went up by 25%, another all time high
  • All markets moving up in the positive territory with Hong Kong registering over 35% growth
  • Despite Brexit fears, London market went up by 8%

Just wanted to summarise some of the key events which came to my mind:

  • Donald Trump formally took over as the US President;
  • North Korea kept the World under suspense with several nuclear tests giving a sense of fear of war
  • India’s market capitalization crossing $ 2 trillion
  • The rolling out of GST in India marking a new beginning, of course with lot of dissents
  • India getting a new President in Ramnath Kovind and new Vice President in Venkiah Naidu
  • Dramatic resignation of Vishal Sikka from Infosys and Nandan taking over as Chairman and the announcement of the new CEO in Salil Parekh
  • Indian jumping 30 spots in Ease of Doing Business
  • Theresa May announcing that UK would exit the EU on 29th March, 2019
  • The controversial announcement of Trump on Isarel’s capital being shifted to Jerusalem and the UN vote thereafter
  • BJP winning the elections in several States including Gujarat
  • Rahul Gandhi taking over as the President of Indian National Congress Party
  • Twist to the 2 G Sepctrum case with all the accused being acquitted
  • The Highlight of the Year is the unbelievable swing of the Bitcoin moving from $ 1000 to $ 19,000 making everyone to dream

I sincerely wish each one of you and your family members a happy, prosperous, healthy and wealthy New Year. I pray to the almighty to give you and the members of your family excellent health and wealth and make 2018 yet another grand and great year.
Happy reading!

Regards
V Murali

General News

  • Vijay Rupani takes oath as Gujarat Chief Minister for second term; Nitin Patel as Deputy CM.
  • Five-time BJP MLA Jairam Thakur sworn in as the new Chief Minister of Himachal Pradesh.
  • Winter session of Parliament sees frequent adjournments.
  • Uproar in both Houses of Parliament over PM Modi’s remarks on former PM Manmohan Singh.
  • Congress agrees to move on as FM Arun Jaitley clarifies on PM Modi’s remarks.
  • Lok Sabha passes Insolvency and Bankruptcy code amendments and triple talaq bill.
  • Cabinet approves Rs 9,000 crore National Nutrition Mission.
  • Rahul Gandhi elevated as Congress president; Party celebrates its 133rd foundation day.
  • Rajinikanth announces entry into politics.
  • 2G spectrum case: Former telecom minister A Raja, Kanimozhi and 15 others acquitted.
  • CBI, ED to appeal against verdict; Subramanian Swamy urges govt to appeal in HC.
  • Fodder Scam: RJD chief Lalu Prasad found guilty, quantum of punishment on January 3.
  • Congress suspends Mani Shankar Aiyar for his remarks on PM Modi.
  • Rebel JD(U) leaders Sharad Yadav, Ali Anwar disqualified from Rajya Sabha.
  • Nitin Gadkari flags off first cargo vessels through National Waterways 2 on the river Brahmaputra.
  • TN: Day before RK Nagar bypoll, TTV Dinakaran camp releases video of Jayalalithaa in hospital; TTV
    Dinakaran wins Jayalalithaa’s seat with a huge margin.
  • Cyclone Ockhi batters Kerala, Tamil Nadu and Lakshadweep islands.
  • Kulbhushan Jadhav meets wife, mother at Pakistan’s Foreign Affairs Ministry; MEA raises concerns
    over Jadhav’s health and well-being.
  • Padmavati is now Padmavat: CBFC changes title of Bhansali’s film; grants U/A rating.
  • Rajasthan govt approves 1% reservation for Gujjars and four other communities.
  • INS Kalvari, India’s ‘deadliest’ submarine, commissioned into the Indian Navy.
  • India begins project to build 6 nuclear-powered submarines.
  • Indian Air Force initiates Rs 33,000 crore buy of 83 Tejas fighters.
  • Centre releases Rs 167 crore to 9 states for border development.
  • Pakistan violated ceasefire more than 720 times in 2017; highest in 7 years.
  • Donald Trump formally recognizes Jerusalem as Israel’s Capital, orders US Embassy to move from
    Tel Aviv.
  • UN votes 128-9 to reject US decision on Jerusalem, 35 abstentions.
  • Will find common ground to work together with Pakistan in fight against terror: Jim Mattis.
  • US Supreme Court allows full enforcement of Trump travel ban.
  • Brexit: Theresa May agrees to pay £39 billion divorce bill to the EU.
  • UK lawmakers give parliament veto power on the Brexit deal.
  • U.S. threats make war unavoidable in Korean peninsula: North Korea.
  • UN Security Council imposes new sanctions on North Korea; blocks fuel, ships and workers.
  • Hafiz Saeed’s Jammat-ud-Dawah (JuD) to contest 2018 general elections in Pakistan.
  • Nawaz Sharif nominates his brother Shehbaz Sharif as PM candidate for 2018 election.
  • Iraq holds military parade celebrating victory over IS; Iraq PM warns IS might erupt again.
  • UAE, Saudi Arabia form new group, separate from the Gulf Cooperation Council(GCC).
  • Saudi king approves $19.
  • 2 billion of economic stimulus steps.

  • Detained Saudi princes, tycoons agree to cash settlements.
  • Myanmar extends curfew in northern Rakhine for two more months.
  • France passes law to ban all oil and gas production by 2040.
  • Catalan pro-independence parties keep their majority in snap poll.
  • Sri Lanka formally hands over Hambantota port to China on 99-year lease.
  • SC extends Aadhaar linkage deadline for all schemes and services to March 31, 2018.
  • SC adjourns hearing in Ram Janmabhoomi-Babri Masjid title dispute case to February 8, 2018.
  • Coal scam: Ex-Jharkhand CM Koda, former coal secretary gets 3 year jail.
  • Jayanthi Natarajan forest land case: CBI hands over records to IT dept.
  • Panama Papers: ED seizes assets linked to Former IPL Chairman Chirayu Amin.
  • Ex-Calcutta HC Judge Karnan released from jail after 6-month term.
  • NGT imposes a complete ban on plastic items in Haridwar, Rishikesh.
  • FSSAI orders food safety audit in IITs, IIMs, AIIMS canteens after complaints.
  • UNESCO honours India’s Kumbh Mela as an “intangible cultural heritage”.
  • India vs Sri Lanka: India win the Test, ODI and T20 series.
  • Virat Kohli becomes fourth fastest Indian to reach 5,000 test runs; breaks Lara’s record to become
    first captain to hit 6 double centuries in Tests.
  • Rohit Sharma became first batsman to score 3 ODI double tons.
  • Ekta Bisht, Mithali Raj, Harmanpreet in ICC’s ODI, T20 teams of the year.
  • IPL franchises allowed to retain five players.
  • Australia vs England: Australia lead the five-match series 3–0.
  • Russia’s Olympic Committee to support its neutral athletes at Winter Games.
  • Cristiano Ronaldo wins fifth Ballon d’Or award, equals Lionel Messi’s record.

Business News

  • Markets soar to new highs; Sensex crosses 34,000 mark and Nifty 10,500 level.
  • Govt, RBI dismiss rumours about closing down of public sector banks.
  • Banks can take advantage of the IBC to clean up their balance sheets: RBI.
  • Finance Ministry to issue recapitalisation bonds to PSBs in January.
  • Govt introduces bill on GST compensation cess in Lok Sabha.
  • GST Council nod for mandatory e-Way Bill for inter-state movement of goods.
  • GSTN brings in option for monthly, quarterly filing of forms.
  • November CPI comes at 4.88%, October IIP at 2.2%; WPI inflation touches 8-month high of 3.93%.
  • India’s April-November fiscal deficit hits 112% of full-year target.
  • RBI keeps repo rate unchanged at 6%, raises inflation forecast for next 2 quarters to 4.3- 4.7%.
  • Govt unveils foreign trade policy; incentives for manufacturing, service exports increased by 2%.
  • SEBI approves stock, commodity bourse convergence from October 2018.
  • IT dept conducts surveys at all major Bitcoin exchanges across country.
  • Direct tax collections rise 14% to Rs4.8 trillion in April-November.
  • Govt approves 5.4 lakh more urban houses under central scheme.
  • Govt raises customs duty on electronic items to boost domestic manufacturing.
  • Govt allows companies to paste MRP stickers till March next year.
  • NCLT get 4,300 insolvency petitions in 18 months.
  • Centre pumps Rs 7,577 crore into 6 public sector banks.
  • Indiabulls Housing sells 100% stake in Indiabulls Life.
  • Edelweiss acquires Religare’s securities business.
  • GIC acquires 33.34% stake in DLF rental arm for nearly Rs 9,000 crore.
  • Infosys completes Rs 13,000-crore buyback.
  • Infosys files settlement application with SEBI over former CFO’s severance pay.
  • TCS faces US trial in case that alleges Anti-American bias.
  • Karnataka government drops idea to set up IT labour unions.
  • Apple agrees to repay Ireland $14.6 billion in unpaid taxes.
  • Oppo gets green nod to set up mobile manufacturing unit in Noida.
  • Nokia signs multi-year patent licence deal with Huawei.
  • Alibaba announces cloud services for Indian enterprises, SMEs.
  • WhatsApp asked to stop sharing user data with Facebook.
  • Google blocks YouTube from Amazon devices.
  • Google X signs MoU with Andhra govt; to set up research facility in Visakhapatnam.
  • Telecom sector not ready for spectrum auction till 2019: COAI.
  • Mukesh Ambani’s Jio takes over mobile infra assets of Anil Ambani’s troubled RCom.
  • Airtel launches 4G services in Kargil, Dras and Leh in Ladakh region.
  • UIDAI temporarily bars Airtel from conducting Aadhaar linked e-KYC verification.
  • No BS-IV vehicle registrations beyond June 2020: Govt draft rules.
  • SIAM proposes all new vehicle sales in India to be EVs by 2047.
  • Maruti Suzuki, Delhi govt signs MoU to develop automated driving test tracks.
  • Nissan sues India over outstanding state incentives from TN govt, seeks over $770 million.
  • Tata Motor officially rolls out the first batch of the Tata Tigor EV from the Sanand plant.
  • OPEC, Russia agree oil cut extension to end of 2018.
  • Power Ministry issues norms to standardise the process of procuring wind energy by states.
  • Adani cancels A$2.6 billion contract with Australia’s Downer over proposed Carmichael mine.
  • Air India seeks Rs 1,100 crore loan to modify planes for VVIPs.
  • General Electric and Tata join hands to make jet engine parts in Hyderabad.
  • Godrej completes delivery of 100 airframe assemblies to Brahmos; bags order for another 100.
  • Board of Tata Steel approves rights issue and phase II expansion of Kalinganagar Project in Odisha.
  • 9 lakh seniors give up ticket subsidy in 3 months, Railways saves Rs 40 crore.
  • Dept of Pharma sets up committee to assist on pricing, new drug launches.
  • Biocon creates new subsidiary to unlock value of its biologics business.
  • Torrent Pharma completes acquisition of Unichem’s branded businesses.
  • SC stays NCLT order allowing Centre to takeover Unitech.
  • Quikr acquires HDFC Developers Ltd and HDFC Realty ltd for Rs 357 crores.
  • Paytm unveils its ATM, to invest Rs 3000 crore in offline distribution network.
  • Ola acquires FoodPanda India business, to further invest $200 million.
  • Infosys appoints Salil S Parekh as MD & CEO effective Jan 2, 2018.
  • Apple appoints Michel Coulomb to lead India operations.
  • Uber names Ex-Orbitz CEO Barney Harford as Uber COO.
  • Bitcoin touches $19,000; Chicago Mercantile Exchange launches bitcoin futures.
  • Pakistan to allow rupee depreciation after crucial talks with the IMF.
  • Sterling hits 6-month high against the Euro as Brexit deal progresses.
  • Brent hits 2-year high after UK pipeline outage.
  • Japan and the European Union reach an agreement on a free trade pact.
  • Saudi Arabia, UAE to roll out VAT in 2018.
  • India’s trade deficit with China stands at $37 billion in Apr-Oct’17.
  • RERA, GST pull home loan growth down 32.7% in Apr-Oct’17.
  • Patanjali ranked India’s most trusted FMCG Brand: The Brand Trust Report India Study 2017.
WORLD INDICES
Indices 29-Dec 30-Nov % 1M 02-Jan % since Jan
BSE 34057 33149 2.74% 26,595 28.06%
NSE 10531 10227 2.97% 8,180 28.75%
DOW 24719 24272 1.84% 19,763 25.08%
NASDAQ 6903 6874 0.43% 5,383 28.24%
FTSE 7688 7327 4.93% 7,143 7.63%
Nikkei 22765 22725 0.18% 19,114 19.10%
Hang Seng 29919 29177 2.54% 22,001 35.99%
Straits Times 3403 3434 -0.89% 2,881 18.13%
Shanghai 3307 3317 -0.30% 3,104 6.56%
USD 63.87 64.46 -0.92% 68.22 -6.38%
Euro 76.65 76.36 0.38% 71.32 7.47%
GBP 86.33 86.82 -0.56% 83.70 3.15%
Yen/100INR 0.57 0.57 -1.25% 0.58 -2.44%
Gold 29165 29012 0.53% 27,570 5.79%
Silver 39223 37532 4.51% 39,136 0.22%
Crude Brent $ 66.87 62.89 6.33% 57.16 17.00%
Crude Nymex $ 60.42 57.57 4.95% 54.05 11.79%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
29-Dec 25539 11666 12010 26852 9620
30-Nov 25332 11115 11293 25820 9239
% 1M 0.82% 4.95% 6.35% 3.99% 4.13%
02-Jan 17970 10367 9327 20710 10310
% since Jan 42.13% 12.53% 28.76% 29.65% -6.69%

INDIAN TRADE( USD MILLION)
Exports 26196
Imports 40025
FDI 1571
Government Bond 10Y 7.32%
GDP YoY 6.30%
Inflation Rate 4.88%
Forex Reserves $ M 404920
IIP % -1.10%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
Equity (5280) 6114
Debt 2524 22412
Total 1 M (2756) 28526
Total Since Jan 194158 508528
Equity 49348 114824
Debt 144810 393704

Crude Oil Brent, Economy / Market Snapshot -December 2017

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