August 2, 2019 by BizWhiz Admin in Economy Snapshot 0 comments 229

Dear Colleagues

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

Indian Markets were down by 5% in July with the Nifty coming closer to 11,000 levels. Uncertainty on the issues with US, China-US trade war issues, taxation on FII’s etc weighed heavily on the markets. All the sectoral indices were down with Auto losing about 13% and Bank Nifty losing about 7%. FII’s pulled about Rs.11,850 crores from the equity market while Domestic Institutional Investors invested about 8,700 crores. Indian Rupee closed at Rs.68.79 for 1 US $.

On the Global markets front, Nasdaq and FTSE went up by 2%, Nikkei up by 1%. Hang Seng and Shanghai lost about 1%. Gold went up by 1% and Silver went up by 10%. Crude went down by 2%.

The fall in India has been so steep with the market losing about 5% in a month. Need to see whether this will go further down or is it an opportunity to get in ?

Happy reading!…….

Regards
V Murali

General News

  • Chandrayaan-2 successfully launched a week after the first attempt was cancelled at the last minute.
  • Rajya Sabha passes triple talaq, Aadhar and RTI amendment bills.
  • HD Kumaraswamy resigns as CM after losing trust vote; Speaker disqualifies 14 more rebel MLAs.
  • BS Yediyurappa takes oath as CM for 4th time, wins floor test; Speaker Ramesh Kumar resigns.
  • President Ram Nath Kovind visits Benin; Rajnath Singh visits Mozambique.
  • India’s Tiger population improves 33% from 2,226 in 2014 to 2,967 in 2018; forest cover grows by over 15,000 sq kms in the last 5 years.
  • Congress splits in Goa, 10 out of 15 MLAs join ruling BJP; 3 join cabinet.
  • Fresh spree of resignations in Congress as Jyotiraditya Scindia, Milind Deora step down.
  • Yediyurappa govt cancels Tipu Jayanthi celebrations in Karnataka, calls it ‘controversial and communal’.
  • Chennai water crisis: Train carrying 50,000 litres of water in each wagon from Vellore reaches the city.
  • Bihar: Encephalitis death toll rises to 140 in Muzaffarpur, state reports 57% vacancy in doctor’s posts.
  • World Bank and Asian Infrastructure Investment Bank pull out of Amaravati Capital City project.
  • Death toll in Assam, Bihar floods reaches 197; around 1.24 crore people affected. 80% of Kaziranga submerged underwater.
  • ICJ suspends slams Kulbhushan Jadhav’s death sentence; slams Pakistan for violating rights.
  • Babri Masjid demolition case: SC sets trial deadline of 9 months, extends tenure of Special Judge.
  • Rahul Gandhi granted bail in defamation cases.
  • Lalu Prasad Yadav granted bail in fodder scam case.
  • Rajiv Gandhi assassination convict Nalini Sriharan gets 30-day parole from Madras High Court.
  • Bombay High Court dismisses Vijay Mallya’s plea seeking stay on attachment of his properties.
  • Acharya Devvrat, Lalji Tandon, Anandiben Patel appointed Governors of Gujarat, MP and UP respectively.
  • D Raja appointed new General Secretary of the CPI.
  • Navjot Singh Sidhu resigns as Punjab Cabinet minister.
  • M Nageswar Rao dropped as CBI Additional Director, appointed as DG Fire services.
  • India successfully test fires 3 anti-tank guided Nag missiles in Pokhran range.
  • India, Russia sign ₹1,500 crore deal for air-to-air missiles to be used by Su-30.
  • IAF to buy additional Sukhoi Su-30 MKIs and MiG-29 fighters from Russia.
  • Gaganyaan: ISRO teams up with Russian company to train Indian astronauts.
  • Kartarpur corridor: Pakistan agrees to visa-free travel for 5,000 pilgrims a day.
  • Centre declares entire Nagaland as ‘disturbed area’ for six more months under AFSPA.
  • Congress leaders Sheila Dikshit and S Jaipal Reddy passed away.
  • Boris Johnson wins Tory contest to become UK PM.
  • US Senate fails to override Trump vetoes of bills stopping Saudi weapons sales.
  • US Supreme Court allows Donald Trump to use $2.5 billion in defence funds for border wall.
  • Pakistan PM Imran Khan meets US President Trump.
  • Mike Pompeo meets Imran Khan, discusses Pakistan’s role in Afghan peace process and counterterrorism.
  • Mumbai terror attack mastermind Hafiz Saeed arrested in Pakistan.
  • Former Pakistan Prime Minister Shahid Khaqan Abbasi arrested on corruption charges.
  • EU renews sanctions on North Korea over nuclear programmes.
  • Kim Darroch resigns as UK Ambassador to US after leaked Trump criticism.
  • Iran seizes Stena Impero, British-flagged oil tanker.
  • Iran announces breach of 2015 nuclear deal, raises uranium enrichment limit beyond agreed levels.
  • Hong Kong leader Carrie Lam says Extradition Bill is ‘dead’ as unrest continues.
  • Japan resumes commercial whaling for first time in 30 years amid global backlash.
  • Sri Lanka includes India, China in free visa-on-arrival scheme.
  • North Korea fires two short-range missiles into sea as talks with US stall.
  • World Bank grants $300 million to DR Congo to contain the 10th Ebola outbreak.
  • ICC World Cup: England win the title in Super Over drama to end 44-year wait.
  • Hima Das clinches five gold medals in Europe over the month of July.
  • Dutee Chand, 1st Indian woman track and field athlete to clinch a gold medal in the World Universiade.
  • Mary Kom, six other Indians clinch Gold Medal in 23rd President’s Cup in Indonesia.
  • India tour of West Indies: Dhoni, Bumrah rested; Saha, Rohit back in Test squad, Dhawan returns to ODI.
  • ICC Hall of Fame: Sachin Tendulkar 6th Indian to be inducted alongside Allan Donald, Cathryn Fitzpatrick.
  • Lt Col MS Dhoni joins Indian Army battalion in Bengaluru, begins training with Parachute Regiment.
  • Sunil Chhetri beats Lionel Messi to become the second highest international goal scorer.
  • Byju’s replaces Oppo on Team India jersey starting September.
  • Ambati Rayudu announces his retirement from all forms of cricket.
  • Shoaib Malik, Imran Tahir, JP Duminy announce retirement from ODIs.
  • Wimbledon: Novak Djokovic wins fifth title and Simona Halep her first.

 

Business News

  • Nirmala Sitharaman presents Modi 2.0’s first budget; sets divestment target of ₹1.05 lakh crore for FY20.
  • Economy Survey tabled in Parliament, pegs FY20 growth at 7%, retains FY19 fiscal deficit at 3.4%.
  • ₹70,000 crore allocated for PSU bank recapitalisation.
  • Surcharges of 3% for those having taxable income of ₹2 crore – ₹5 crore; 7% in the ₹5 crore & more slab.
  • Cess on petrol, diesel hiked by ₹1/litre; customs duty on gold increased to 12.5% to 10%.
  • Aadhaar can be used for cash transactions beyond ₹50,000 in place of PAN: Revenue Secretary.
  • GST council decides to reduce rate on EVs to 5% from 12% and EV chargers rate slashed to 5% from 18%.
  • GST collection slips below ₹1 lakh crores for the 1st time since February to ₹99,939 crores in June.
  • Govt makes anti-money laundering law stricter by widening definition of ‘proceeds of crime’.
  • Insolvency and Bankruptcy Board sets one-year timeline for liquidation process of insolvent companies.
  • Government approves construction of 1.4 lakh more houses under PMAY-Urban.
  • ₹459-crore IPO of mobile marketing firm Affle India subscribed over 86 times.
  • CPSE ETF FFO subscribed 5 times, govt exercises green shoe option to raise ₹11,500 crore.
  • RBI places restrictions on borrowing, repatriation made in foreign currency.
  • Jalan panel finalises report on RBI capital; recommends surplus transfer to govt in 3-5 years.
  • Andhra HC stays state govt’s plan to review PPAs signed during Chandrababu Naidu regime.
  • 75% reservation for locals in all industries in Andhra Pradesh.
  • Digital Communications Commission accepts TRAI’s quantum of penalty on telecom companies.
  • NITI Aayog partners with WhatsApp to promote women entrepreneurs.
  • Government tells Air India to freeze all appointments, promotions.
  • SEBI starts investigation into governance issues at InterGlobe Aviation.
  • New routes under UDAN become functional, taking the total number of operational routes to 194.
  • SC cancels registration, lease of Amrapali Group.
  • India and UK set up three new bilateral trade working groups.
  • India – US trade talks end without major progress.
  • Pakistan receives $6 billion loan from IMF and $500 million from Qatar as first part of promised $3 billion.
  • China’s GDP growth slows to 6.2% in Q2, weakest in 27 years.
  • France approves digital tax on American tech giants, defying US trade threat.
  • Microsoft invests $1 billion in OpenAI to build Azure AI supercomputing technologies.
  • IBM closes $34 billion deal to buy Red Hat to boost cloud business.
  • Apple acquires Intel’s smartphone modem business for $1 billion.
  • Auto industry asks refiners for BSVI fuel 45 days ahead of the deadline – 1 April 2020.
  • Hyundai Kona electric launched in India at ₹25.30 lakh, buyers to get 2 chargers.
  • TVS launches India’s first ethanol-powered motorcycle Apache RTR 200 Fi E100, priced at ₹1.20 lakh.
  • Suzuki, Mazda, Subaru join Toyota-Softbank self-drive venture.
  • Tesla smashes global delivery record with over 95,000 electric cars in Q2.
  • Govt proposes ₹74,000 crore bailout for BSNL, MTNL.
  • BSNL begins land monetisation, fair valuation at ₹20,000 crores.
  • US approves merger of wireless operators T-Mobile, Sprint.
  • US trade commission sues Cambridge Analytica for duping Facebook users.
  • Facebook fined with $5 billion over privacy issues in the US.
  • Ola Electric becomes India’s newest unicorn, as SoftBank pumps in $250 million.
  • Byju’s raises $150 million investment from Qatar Investment Authority.
  • Flipkart co-branded credit card launched in partnership with Axis Bank, Mastercard.
  • Paytm’s Japan venture Paypay touches 8 million users.
  • MakeMyTrip partners with Archaeological Survey of India to boost bookings for heritage monuments.
  • ADB cuts India’s FY20 GDP growth forecast to 7% on the back of fiscal shortfall concerns.
  • India’s current account balance deficit grew to $68 billion in 2018-19: IMF.
  • Cafe Coffee Day founder VG Siddhartha found dead, body recovered from Mangaluru river.
  • RBI names BP Kanungo to run monetary policy after Viral Acharya quits.
  • SBI’s Anshula Kant appointed MD and CFO of World Bank.
  • Christine Lagarde resigns as IMF chief following her nomination to serve as the next ECB chief.
  • Germany’s Ursula von der Leyen elected first female European Commission President.
  • L&T’s A M Naik appointed non-executive chairman of Mindtree.
  • Outgoing Economic Affairs Secretary Subhash Chandra Garg seeks early retirement.

 

Q1 Results

  • HDFC Bank Q1 net jumps 21% YoY to ₹5,568 crore; GNPA rises to 1.40%, NNPA up at 0.43%.
  • ICICI Bank reports Q1 profit at ₹1,908 crores, NII rose 27%YoY to ₹7,737 crores, GNPA eases to 6.49%.
  • Kotak Mahindra Bank Q1 net profit came at ₹1,360 crores, GNPA rises to 2.19% QoQ.
  • Axis Bank Q1 net jumps 95% YoY to ₹ 1,370 crore, NII rose 13% YoY to ₹5,844 crore.
  • YES Bank Q1 profit tanks 91% YoY to ₹114 crore, GNPA spikes to 5.01%.
  • IndusInd Bank Q1 net profit jumps 38% to ₹1,433 crore, GNPA stood at 2.15%, NNPA came at 1.25%.
  • PNB posts surprise ₹1,019 crore profit in Q1 as provisions plunge 65% YoY.
  • Bank of India net profit jumps two-fold to ₹243 crore in Q1; GNPA improved to 16.50%, NNPA down at 6%.
  • DHFL posts Q4 loss at ₹2,224 crore, GNPA increased significantly to 2.74%.
  • HDFC AMC’s Q1 net profit up at ₹292 crore, total income at ₹553 crore; AUM rose 18% to ₹3,56,700 crore.
  • Infosys Q1 profit rises 5% YoY to ₹3,802 crore; revenue guidance raised to 8.5%-10%.
  • TCS Q2 profit grew 10.78% to ₹8,131 crores, rupee revenue grew 0.4% sequentially to ₹38,172 crores.
  • Wipro reports 12.8% YoY rise in profit at ₹2,387.60 crore, net sales comes in at ₹14,716.10 crore.
  • Tata Motors Q1 loss doubles to ₹3,680 crore as JLR woes continue, revenue came at ₹60,830.16 crore.
  • Maruti Suzuki Q1 profit tanks 27% YoY to ₹1,436 crore on weak volumes & higher depreciation expenses.
  • IOC Q1 net profit dips 41% QoQ at ₹3,596 crore, revenue up 3.9% at ₹1.50 lakh crore; GRM tanks.
  • HUL Q1 profit grows 15% to ₹1,792 crore, Total consolidated income increased 6% to ₹10,509 crores.
  • Dabur Q1 net profit grew by 12.6% to ₹363.1 crore, revenue rose 9.3% to ₹2,273.3 crores.
  • RIL’s net profit up 6.8% YoY at ₹10,104 crore, revenues up by 22% at ₹1.72 lakh crore.
  • L&T Q1 profit rises 20.5% YoY to ₹1,361 crore, revenue stood at ₹29,635.95 crore, up 9.7% YoY.
  • Biocon Q1 net profit zooms 86% to ₹223 crore led by biosimilars, small molecules segments.
  • Vodafone Idea Q1 loss widens to ₹4,908 crore QoQ; revenue fell 4.3% QoQ to ₹11,269.9 crores.

 

WORLD INDICES
Indices 31-Jul 28-Jun % 1M 01-Jan % since Jan
BSE 37481 39395 -4.86% 36255 3.38%
NSE 11118 11789 -5.69% 10910 1.91%
DOW 26864 26600 0.99% 23327 15.16%
NASDAQ 8175 8006 2.11% 6635 23.21%
FTSE 7587 7426 2.17% 6728 12.76%
Nikkei 21522 21276 1.15% 20015 7.53%
Hang Seng 27778 28543 -2.68% 25846 7.48%
Straits Times 3301 3322 -0.63% 3069 7.56%
Shanghai 2933 2979 -1.56% 2494 17.59%
USD 68.79 69.02 -0.33% 69.45 -0.95%
Euro 76.02 78.48 -3.13% 79.50 -4.38%
GBP 83.45 87.64 -4.78% 88.40 -5.60%
Yen/100INR 0.63 0.64 -1.50% 0.63 -0.76%
Gold 34517 34206 0.91% 31422 9.85%
Silver 41227 37452 10.08% 38786 6.29%
Crude Brent $ 65.17 66.56 -2.09% 53.50 21.81%
 Crude Nymex $ 57.88 58.47 -1.01% 45.31 27.74%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
31-Jul 28876 15620 6852 29066 7988
28-Jun 31105 15936 7928 29546 8065
% 1M -7.17% -1.98% -13.58% -1.62% -0.96%
01-Jan 27392 14451 9182 30398 8882
% since Jan 5.42% 8.09% -25.38% -4.38% -10.07%

INDIAN TRADE(USD MILLION)
Exports 25010
Imports 40290
FDI 2160
Government Bond 10Y 6.37%
GDP YoY 5.80%
Inflation Rate 3.18%
Forex Reserves $ M 430380
IIP % 4.50%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
 Equity (11850) 8772
 Debt 7567 40427
 Total 1 M (4283) 49199
 Total Since Jan 85002 336320
 Equity 67069 16272
 Debt 17933 320049

 

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