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 ?
- 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.
- 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.
- 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.
|Indices||31-Jul||28-Jun||% 1M||01-Jan||% since Jan|
|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|
|% since Jan||5.42%||8.09%||-25.38%||-4.38%||-10.07%|
|INDIAN TRADE(USD MILLION)|
|Government Bond 10Y||6.37%|
|Forex Reserves $ M||430380|
|INSTITUTIONAL TRADING ACTIVITY|
|Particulars||FII (Rs.crore)||MF (Rs.crore)|
|Total 1 M||(4283)||49199|
|Total Since Jan||85002||336320|