February 3, 2020 by BizWhiz Admin in Economy Snapshot 0 comments 614

Dear Colleagues

I am pleased to attach the Economy / Market Snapshot covering all the major events in January, 2020

Indian Markets lost around 1.50% last month after reaching all-time high. IT gained by 3%, FMCG by 2% and Pharma by 1% while Bank Nifty lost about 4% and Auto about 2%. FII’s pumped in 15,000 crores and Domestic Institutions had put in Rs.1,350 crores. Indian Rupee closed at Rs.71.34 for 1 US $.

On the Global markets front, Nasdaq gained about 2% while the world markets were down. DOW lost about 1%, London lost about 3%, Hong Kong lost about 6%, Shanghai lost about 3% and Tokyo lost about 2%. On the commodities side, Gold went up by 5% and Silver went up by 0.50%. Crude lost about 12%.

Year 2020 has started with Coronavirus creating panic across the globe, Impeachment of Trump, Slowdown in India etc. Today’s budget was not taken well by the markets and the market fell by 2.50% in a single day. Once the analysts decipher the budget, we should see some hope of rebound.

Happy reading!……

Regards
V Murali

General News

  • India celebrated its 71st Republic Day. PM Modi paid homage to the martyrs at the newly built National War Memorial; Brazilian President Jair Bolsonaro was the chief guest.
  • Delhi assembly elections 2020 to be held on 8th February and counting of votes on 11th February.
  • Citizenship Amendment Act 2019 comes into force as Home Ministry notifies gazette.
  • Law Ministry gives conditional nod to linking of Voter ID and Aadhaar.
  • PM Modi, Nepal PM Oli inaugurate border check-post through video conferencing, call for better ties.
  • India, Bangladesh sign agreement to upgrade Ashuganj Akhaura road into 4-lane highway; sign MoU for
  • content exchange programme between All India Radio, Bangladesh Betar.
  • India, Brazil sign 15 pacts to bolster defence, trade ties.
  • S Jaishankar holds discussion with Jordan, Qatar and Sri Lankan counterparts.
  • NSA Ajit Doval and Sri Lankan President Rajapaksa discuss strategic cooperation between both countries.
  • World leaders talk US-Iran tensions, Climate change at Raisina Dialogue.
  • 10 central trade unions went on one-day nationwide strike against government policies.
  • BJP launches 10-day nationwide mass contact drive and toll free number to mobilise support for CAA.
  • Kerala, Punjab, Rajasthan and West Bengal pass resolution against CAA.
  • Centre, Assam sign peace deal with banned National Democratic Front of Bodoland(NDFB).
  • Andhra Cabinet clears proposal for three capitals, approves abolition of the state legislative council.
  • Maharashtra portfolios: Ajit Pawar gets Finance, Anil Deshmukh Home, Aaditya Thackeray environment.
  • Shopping malls, multiplexes, restaurants to remain open 24×7 in Mumbai from January 26.
  • Envoys of 15 nations, including US, visit J&K to assess conditions since shutdown.
  • Indefinite internet suspension not permissible: SC asks J&K administration to review all restrictive orders.
  • A delegation of Union minister visit J&K to raise awareness on benefits of scrapping Article 370.
  • Shiv Sena, AAP, TMC, DMK, SP and BSP skip Opposition meet on CAA chaired by Sonia Gandhi.
  • Violence breaks out at JNU, masked mob attacks students and teachers, several injured.
  • President Ram Nath Kovind confers Bal Shakti Puraskar to children for their remarkable achievements.
  • Padma Awards announced; Padma Vibhushan to 7 veterans, Padma Bhushan to 16 & Padma Shri to 118.
  • J P Nadda takes over from Amit Shah as BJP President, elected unopposed.
  • JD(U) expels Prashant Kishor, Pavan Varma for anti-party activities.
  • General Bipin Rawat takes charge as India’s first Chief of Defence Staff.
  • Taranjit Singh Sandhu appointed as the next Ambassador of India to the US.
  • ISRO unveils Vyommitra, half humanoid, developed for unmanned mission to outer space.
  • 4 IAF personnel selected for training in Russia for Gaganyaan Mission to be launched in 2022.
  • Protesters in Iraq attack US Embassy over American airstrikes targeting Iranian-backed Iraqi militia.
  • Top Iranian commander Qasem Soleimani and Iraqi Commander Al-Muhandis killed in Baghdad airstrike.
  • Iran fires missiles at US forces in Iraq; accidentally shoots Ukrainian passenger plane killing 176.
  • US House passes resolution to limit Trump’s ability to wage war on Iran.
  • EU Parliament debates anti-CAA motion, puts off vote till March.
  • Trump unveils Middle East peace plan, promises to keep Jerusalem as Israel’s undivided capital.
  • Donald Trump meets Iraqi President Barham Saleh in Davos, agrees US-Iraq security partnership.
  • Trump again offers to ‘help’ resolve Kashmir issue, meets Pakistan PM Imran Khan in Davos.
  • Senate begins the impeachment trial of President Trump.
  • WHO declares China virus outbreak an international emergency as toll reaches 213 in China.
  • Prince Harry, Meghan step back as senior royals; drop royal duties and HRH titles.
  • Russian govt resigns as President Putin proposes changes to the country’s constitution.
  • Brexit: EU waves farewell to Britain after 47 years of membership.
  • New Zealand PM Ardern calls Sept 19 election, Parliament to be officially dissolved on August 12.
  • ICJ directs Myanmar to take measures to prevent genocide of Rohingyas.
  • Sultan Qaboos of Oman, Arab world’s longest-serving ruler, dies aged 79; India declares state mourning.
  • Australian bushfires burn 5 million hectares of land, only 9000 Australian Koalas remain out of 46,000.
  • India seal the Sri Lanka T20 series 2-0 and wrap up the Australia ODI series by 2-1.
  • Ind Vs NZ: India clinches maiden T20I series in New Zealand.
  • Rohit Sharma named ICC’s “2019 ODI Cricketer of the year”, Virat Kohli wins “Spirit of Cricket award.”
  • Kris Srikkanth and Anjum Chopra receive the Col CK Nayudu and BCCI Lifetime Achievement Awards.
  • Jasprit Bumrah wins Polly Umrigar Award, Poonam Yadav best international cricketer.
  • Irfan Pathan announces retirement from all forms of Cricket.
  • Kohli becomes the fastest to reach 1000 T20Is runs as captain in 30 innings.
  • Kuldeep Yadav becomes fastest Indian spinner to get 100 ODI wickets.
  • Harmanpreet Kaur to captain India in Women’s T20 World Cup.
  • 3rd Khelo India: Maharashtra crowned champion.
  • Australian Open: Novak Djokovic to face Dominic Thiem; Garbine Muguruza to face American Sofia Kenin.
  • World Archery lifts suspension on India enabling Indian archers to represent country.

 

Business News

  • Economic Survey 2020 tabled in Parliament, pegs growth at 6% to 6.5% in next fiscal 2020-21.
  • IMF slashes global growth forecast to 2.9% in 2019 and 3.3% in 2020; lowers India’s 2019 forecast to 4.8% and to 5.8% in 2020.
  • World Bank trims 2019 global growth forecast to 2.4% and 2020 to 2.5%, expects India to decelerate to 5% in FY20 and recover to 5.8% in FY21.
  • PM-Kisan scheme: PM releases ₹12,000 crore for 6 crore farmers; ₹42,000 crore transferred so far in FY20.
  • PM Modi launches projects worth ₹600 crore on 150th year celebrations of Kolkata Port Trust.
  • Govt to de-criminalise Income Tax Act, anti-money laundering law: Nirmala Sitharaman.
  • Finance Ministry exempts mutual funds from FDI categorisation.
  • Air India privatisation: Govt approves EoI, share purchase agreement for national carrier’s sale.
  • Govt approves over ₹5,000 crore project for natural gas supplies in Northeast.
  • Govt approves ordinance to remove end user restrictions, boost FDI in coal mining.
  • Govt cuts import duty on crude to 45% and refined palm oils to 37.5% under ASEAN, IMCECA pacts.
  • Niti Aayog unveils plan on takeover of district government hospitals by private players.
  • RBI unveils MANI App for currency note identification by visually challenged; approves Aadhaar-based
  • video authentication as alternative to e-KYC.
  • RBI allows recurring payments through electronic mandates on the UPI.
  • Government raises authorised capital of Indian Overseas Bank to ₹25,000 crore.
  • ICICI Bank announces launch of ‘Cardless Cash Withdrawal’ facility from its ATMs.
  • SEBI issues new framework for core settlement guarantee fund, non-defaulting members.
  • NSE turns world’s largest exchange in derivatives trading.
  • BSE signs licensing agreement with ICE Futures Europe for the use of the ICE Brent Index.
  • Saudi Aramco raises IPO to record $29.4 billion by over-allotment of shares.
  • Alphabet becomes 4th US company to reach $1 trillion in market value, Tesla hits $100 billion for 1st time.
  • DoT orders no coercive action against telcos for non payment of AGR; Reliance Jio pays its ₹195 crore dues.
  • BSNL gets ₹30,000 crore LoC from govt ahead of 4G rollout.
  • Bharti Airtel gets shareholders nod to raise up to $3 billion; Govt approves raising FDI to 100% from 49%.
  • Qualcomm announces first chipsets with ISRO’s NavIC GPS for Android smartphones.
  • Passenger vehicle exports rise 6% in April-Dec; Hyundai, Ford lead the pack.
  • Tata Nano ends 2019 with zero production, sales of 1 unit.
  • Ashok Leyland partners with ABB to develop e-buses with flash-charge tech.
  • Rolls-Royce clocks highest ever sales in 116 years, Cullinan SUV major contributor.
  • Bajaj Auto, Triumph start manufacturing new mid capacity motorcycles in India.
  • Google’s Waymo reaches 20 million miles of autonomous driving.
  • Indian Railways hikes basic fare, new rates effective from Jan 1, launches integrated helpline number 139.
  • UDAN scheme: TruJet starts daily operations from Belagavi to Tirupati, Mysuru, Hyderabad.
  • DGCA extends deadline till May 31 for IndiGo to replace P&W engines.
  • IndiGo fleet size crosses 250 planes, becomes first Indian carrier to do so.
  • Hindustan Aeronautics, Wipro 3D join hands for 3D printing in aerospace.
  • Airbus beats goal with 863 jet deliveries in 2019, ousts Boeing from top spot.
  • SC stays NCLAT order restoring Mistry as Tata Group Executive Chairman.
  • US signs 1st phase of ‘momentous’ trade deal with China; tariffs remain in place.
  • Donald Trump signs United States-Mexico-Canada Agreement (USMCA), ends NAFTA.
  • Vodafone quits Facebook’s Libra cryptocurrency project.
  • Amazon India inks two long-term agreements with Future Retail, FCL.
  • Jeff Bezos launches electric delivery rickshaws in his visit to India, offer to invest $1 billion in the country.
  • Uber partners with Hyundai on electric air taxi.
  • Zomato Acquires Uber Eats India Business in all-stock deal days after raising ₹353 crore from Ant financial.
  • Dixon Technologies announces partnership with Samsung India Electronics for manufacturing of LED TVs.
  • Carlos Ghosn proclaims innocence in Japan Nissan case in his first public appearance since escape.
  • Michael Patra appointed deputy governor of RBI for a three-year term.
  • PNB’s former MD and CEO, Sunil Mehta takes charge as IBA Chief Executive.
  • Lakshmi Vilas Bank’s CFO S Sundar takes over interim Managing Director & CEO.
  • YES Bank independent director and chairman of Audit Committee, Uttam Prakash Agarwal quits.
  • Ginni Rometty to step down as CEO of IBM; Arvind Krishna, SVP, Cloud and Cognitive Software to succeed.
  • Abidali Neemuchwala quits as Wipro CEO and MD.
  • Facebook VP of engineering Jay Parikh steps down.

 

Q3 Results

  • HDFC Bank Q3 net profit surges 33% YoY to ₹7,416 crore, NII increased 12.69% YoY to ₹14,172.90 crore.
  • ICICI Bank Q3 profit soars 158% YoY to ₹4,146 crore, provisions drop by half to ₹2 083.20 crore.
  • Kotak Mahindra Bank Q3 profit grew 24% to ₹1,596 crore, NII rose 17% to ₹3,430, GNPA stood at 2.46%.
  • Axis Bank Q3 net profit up 4.5% YoY at ₹1,757 crore, gross NPA at 5% and NNPA at 2.09%.
  • SBI posts 41% jump in net profit to ₹5,583 crore, NII grew by 22.42%, Net NPA at 2.65%, GNPA at 6.94%.
  • Indian Bank Q3 profit jumps 62% to ₹247 crore, GNPA lower at 7.2%, NNPA reduced to 3.5%.
  • Bajaj Finance Q3 profit jumps 52% to ₹1,614 crore, NII rises 42% to ₹4,537 crores, AUM climbs 35%.
  • HDFC reports Q3 net profit at ₹8,372.5 crore, NII comes at ₹2,957.83 crore and Provisions at ₹2,995 crore.
  • TCS Q3 profit rises 0.2% YoY at ₹8,118, revenue rose 6.7% to ₹39,854 crore; announces ₹5 dividend/share.
  • Infosys Q3 profit jumps 23.5% YoY to ₹4,457 crore; revenue guidance raised to 10-10.5%.
  • HCL Tech Q3 net profit rises 16% to ₹3,037 crore, forecasts growth to be 16.%-17% for the year to March.
  • Wipro Q3 net profit falls 3% to ₹2,463 crore, revenue grew 2.73% to ₹15,470.50 crore.
  • Maruti Suzuki Q3 consolidated net profit up 5.1% at ₹1,564.8 crore; revenue rises 5.3% to ₹20,707 crore.
  • Tata Motors reports ₹1,738.30 crore as consolidated profit, revenue drops 6.81% QoQ to ₹71,676.07 crore.
  • Reliance Industries Q3 profit grows 13.5% YoY to ₹11,640 crore, revenue rose 2.5% to ₹1.57 lakh crores.
  • HUL Q3 profit up 11.9% YoY at ₹1,616 crore, revenue up 2.6% at 9,808 crore.
  • Dr Reddy’s reports net loss of ₹569.7 crore on higher expenses, revenue up 13.9% at ₹4,383.8 crore.
  • Biocon reports 6.62% fall in consolidated net profit at ₹202.8 crore, revenue up 13.45% to ₹1,748.1 crore.
  • Jio Q3 net profit zooms 63% to ₹1,350 crore, Average revenue per user fell to ₹128.40.

 

WORLD INDICES
Indices 31-Jan 31-Dec % 1M 01-Jan % since Jan
 BSE 40723 41254 -1.29% 41306 -1.41%
 NSE 11962 12168 -1.70% 12183 -1.81%
 DOW 28256 28538 -0.99% 28538 -0.99%
 NASDAQ 9151 8973 1.99% 8973 1.99%
 FTSE 7286 7542 -3.40% 7542 -3.40%
 Nikkei 23205 23657 -1.91% 23657 -1.91%
 Hang Seng 26313 28190 -6.66% 28190 -6.66%
 Straits Times 3154 3223 -2.14% 3223 -2.14%
 Shanghai 2977 3050 -2.41% 3050 -2.41%
 USD 71.34 71.38 -0.06% 71.22 0.16%
 Euro 79.15 80.05 -1.12% 79.94 -0.98%
 GBP 94.22 94.67 -0.48% 94.36 -0.15%
 Yen/100INR 0.66 0.66 0.14% 0.66 0.44%
 Gold 41000 39108 4.84% 39067 4.95%
 Silver 46989 46711 0.60% 46665 0.69%
 Crude Brent $ 58.16 66.00 -11.88% 66.29 -12.26%
 Crude Nymex $ 51.56 61.06 -15.56% 61.30 -15.89%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
31-Jan 30834 16144 8087 30755 8139
31-Dec 32162 15652 8248 30122 8040
% 1M -4.13% 3.14% -1.96% 2.10% 1.22%
01-Jan 32103 15722 8210 30234 8047
% since Jan -3.95% 2.68% -1.50% 1.72% 1.14%

INDIAN TRADE(USD MILLION)
 Exports 27360
 Imports 38610
 FDI 1175
 Government Bond 10Y 6.60%
 GDP YoY 4.50%
 Inflation Rate 7.35%
 Forex Reserves $ M 466693
 IIP % 0.70%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
 Equity 14911 1352
 Debt 11707 30262
 Total 1 M 26618 31614
 Total Since Jan 26618 31614
 Equity 14911 1352
 Debt 11707 30262

 

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