July 3, 2017 by BizWhiz Admin in Economy Snapshot 0 comments 692

Dear Colleagues,
I am pleased to attach the Economy / Market Snapshot covering all the major events in June, 2017.

June was another extraordinary month packed with multiple events and actions. India witnessed the roll out of GST, considered to be one of the best reforms in the recent past, through a midnight parliament session. PM, Modi visited several countries last month, the notable being to US with a dinner meeting with Donald Trump. He has managed to keep the equations strong. Elections for the next President of India was announced and two candidates are in fray – Mr Kovind from BJP and Ms Meira Kumar from Congress. On the business side, Jeff Immelt retired after a long journey in GE while Uber CEO, Travis had to resign as the CEO of the Company.

Markets were weak with banking stocks taking a beating. Indian markets ended 1% lower last week. Except Pharma and FMCG, all the sectoral indices were down. FII’s were net buyers in the equity market to the tune of Rs.2,600 crores while the Indian Institutions have pumped in Rs.7,000 crores in the equity market. Asian markets went up while UK went down by 3%. Gold down by 1.5%, Silver down by 4% and Crude down by 4% last week. Indian Rupee moved to Rs.64.82 against 1 US Dollar.

Indian lost to Pakistan in the final of the ICC Champions Trophy while winning the hockey match against Pakistan by a handsome margin. Kidambi Srikanth and Rohan Bopanna were in news winning some prestigious tournaments. Stage is set for the election of the Head Coach for Team India after Anil Kumble reigned after difference of opinion with Virat Kohli.

Let us hope that month of July will be yet another action packed month!

Happy reading!

Regards
V Murali

General News

  • EC announces dates for Presidential elections; polling on July 17, results on July 20. Vice Presidential
    elections on August 5 and results on the same day.
  • Bihar Governor Ram Nath Kovind nominated as NDA presidential candidate; Opposition names Former
    Lok Sabha Speaker Meira Kumar as their candidate
  • PM Modi embarked on three-nation tour of Portugal, the US and the Netherlands.
  • Stop terror attacks being launched from your soil: India, US tell Pakistan.
  • Donald Trump endorses India’s stand on China-Pakistan corridor; reaffirms the US support for India’s
    permanent membership on UN Security Council.
  • H1B visa issue failed to find mention in the Modi-Trump talks.
  • Earlier, PM Modi embarked on a four-nation tour of Germany, Spain, Russia and France.
  • Russia to fund half of the Kudankulam’s 2 new units which cost Rs 50,000 crores.
  • India and Pakistan became full members of the Shanghai Cooperation Organisation.
  • 3rd International Yoga Day: PM Modi leads celebrations in Lucknow.
  • UP announces loan waiver to farmers worth Rs 36,000 crores.
  • Punjab CM announces loan waiver for 10.25 lakh farmers, writes off more than Rs 20,000 crores.
  • Maharashtra Chief Minister Devendra Fadnavis announces Rs. 34,000 crore farm loan waivers.
  • Karnataka to waive off loans of up to Rs 50,000 given to farmers by co-operative banks.
  • MP govt okays Rs 6,000-crore loan waiver after farmers’ stir and widespread violence.
  • FM Arun Jaitley on farm loan waiver: States should generate funds from own resources.
  • Darjeeling stir spreads, trade unions join hands with Gorkhas.
  • Sikkim CM Pawan Chamling extends his support to separate Gorkhaland state.
  • Mob lynches policeman outside mosque in Srinagar; CM Mehbooba Mufti warns locals of police
    retaliation.
  • Yogi Adityanath unveils booklet on achievements marking 100 days in office.
  • TN: EC directs FIR against Dinakaran, Palanisamy in connection to the RK Nagar bypolls bribery.
  • Puducherry assembly passed a resolution to curtail the powers of Lt Governor Kiran Bedi.
  • CBI carries out searches at residence of NDTV’s Prannoy Roy; Mamata, Kejriwal express shock.
  • SC issues notice to Centre on cattle ban notification, asks to respond in 2 weeks.
  • SC refuses to pass interim order on notification making Aadhaar mandatory for social benefit schemes.
  • Aadhaar not mandatory, but those who have it must link to PAN card for IT returns: SC.
  • Babri Masjid case: Advani, MM Joshi, Uma Bharti exempted from daily appearance in court.
  • Vijay Mallya granted bail in the UK court in the extradition case till December 4, next hearing on July 6.
  • Lalu Yadav’s family charged for owning benami assets by tax department.
  • Lalu Yadav’s family charged for owning benami assets by tax department.
  • Arrested former HC judge C S Karnan sent back to Presidency jail hospital after his health condition
    improves.
  • EC concludes the EVM hackathon, refuses to categorise it into a “success” or “failure”, saying that it
    was an ongoing exercise to improve the conduct of elections.
  • Emergency, the darkest day for India: PM Modi recalls it on its 42nd anniversary on Mann ki baat.
  • Kochi Metro inaugurated; PM Modi rides with Kerala CM Pinarayi Vijayan, ‘Metro Man’ E Sreedharan.
  • New ransomware cyber-attack sweeps globe, India’s largest container port JNPT in Mumbai hit.
  • Chana Dal makes the latest entry in the Oxford Dictionary.
  • Govt announces 149 new post office passport kendras.
  • Thiruvananthapuram, Naya Raipur, Rajkot in the new list of 30 cities under the Centre’s Smart City
    Mission.
  • ISRO launches its heaviest rocket, GSLV Mk-III D1, carrying 3,1360-kg communication satellite GSAT-19.
  • India’s 18th operational Communication Satellite, GSAT-17 launched.
  • Border dispute: India, China each deploy 3,000 soldiers at the tri-junction.
  • Donald Trump withdraws US from Paris climate accord, says India, China get advantage.
  • James B. Comey, the former F.B.I. director testifies that Trump’s conduct fell within “the scope of” the
    F.B.I.’s investigation but that he was not specifically under investigation.
  • Rex Tillerson says Trump mulling travel ban to North Korea after Otto Warmbier, American
    student released from North Korea, dies.
  • US sets new criteria for visa applicants from six Muslim nations and all refugees.
  • UK snap election ends in Hung Parliament; PM Theresa May narrowly wins confidence vote.
  • London fire: Many feared dead as massive flames engulf 24-storey Grenfell Tower.
  • Saudi Arabia, Bahrain, Egypt and UAE cut diplomatic ties with Qatar over the country’s support for
    Islamist groups. Turkey rejects Arab’s demand to remove Turkish troops from Qatar
  • France polls: Macron’s party wins clear parliamentary majority.
  • Saudi King names his son and Deputy Crown Prince Mohammed Bin Salman as heir to the throne.
  • South Korea’s president vows to end reliance on nuclear power, scraps plan to build more nuclear
    power plants
  • India could surpass China to be the most populous country by 2024: United Nations.
  • Helmut Kohl, Germany’s reunification Chancellor, dies at 87.
  • Indian-origin Leo Varadkar wins leadership race, set to be Irish PM.
  • Eurozone, IMF agree Greek bailout payment.
  • Pakistan beat India by 180 runs to win ICC Champions Trophy 2017 final.
  • Anil Kumble steps down as India’s coach after the differences with Captain Virat Kohli.
  • VIVO retains IPL title sponsorship for the next 5 years with a mammoth bid of Rs 2,199 crores.
  • ICC T20I Rankings: Virat Kohli retains top spot; Jasprit Bumrah rises to second position.
  • India tour of West Indies, 2017: India lead the 5 match series by 1-0.
  • Kidambi Srikanth wins Indonesia Open Super Series Premier and Australian Open Super Series titles.
  • Rohan Bopanna wins French Open mixed doubles title to clinch maiden Grand Slam.
  • Rafael Nadal secures historic ‘La Decima’ as he wins 10th French Open title.

 

Business News

  • India rolls out the biggest tax-reform till date – GST with a midnight session of the House.
  • GST council categorises 1211 items under 4 tax slabs.; gives relaxation of 2 months for filing of GST
    returns.
  • Govt starts GST awareness drive for consumers, ropes in Amitabh Bachchan as Brand Ambassador.
  • Banks not yet prepared for GST roll-out, IBA tells Parliamentary Panel.
  • July 1 to be observed as GST Day: CBEC.
  • RBI cuts SLR by 50 bps to 20%, keeps repo rate unchanged at 6.25%.
  • Fed hikes interest rates despite declining inflation, sets plan for balance sheet reduction.
  • European Central Bank (ECB) leaves its benchmark interest rate unchanged.
  • Eris Lifesciences, CDSL, AU small finance bank’ IPOs hit the market this month.
  • IPO fundraising crosses Rs 10,000-crore mark in first 6 months of 2017.
  • RBI issues new Rs 500 notes with inset letter ‘A’; begins printing of Rs 200 notes.
  • RBI lays down new Insolvency and Bankruptcy Code.
  • Cabinet approves 7th Pay Commission recommendations with 34 changes, to benefit 48 lakh
    employees
  • Shaktikanta Das retires as Economic Affairs Secretary; Tapan Ray to take over.
  • Shashi Shekhar Vempati takes charge as Prasar Bharati CEO.
  • Jeff Immelt steps down as CEO of GE; John Flannery named Chairman and CEO.
  • Uber Co-founder Travis Kalanick steps down as CEO, will remain on Uber board.
  • Marissa Mayer steps down after Verizon closes $4.48 billion Yahoo acquisition.
  • SBI raises Rs. 15,000 crores through India’s biggest-ever QIP.
  • Canara Bank, Dena Bank, Syndicate Bank and Vijaya Bank submit consolidation plans to the Finance
    Ministry.
  • LIC sets record on claims front, settles 99.92% cases.
  • HDFC Life, Max prepare new structure for merger.
  • Mutual funds see Rs 41,000 crore outflow in May; Mutual fund exposure to bank stocks at record
    Rs 1.44 lakh crores.
  • Indian IT expected to hire 1.3-1.5 lakh people in FY18: NASSCOM.
  • Intel announces Rs 1100 crore investment to advance its R&D & innovation in Bengaluru.
  • CCI dismisses Airtel’s complaint against RIL, Reliance Jio over free offers.
  • India’s 4G speed is three times slower than global average of 17.4 Mbps.
  • EU fines Google €2.42 billion for breaching EU antitrust rules.
  • Tesla overtakes BMW by value to become fourth-biggest automaker.
  • Toyota sells all shares in Tesla as their tie-up to develop electric vehicles ends.
  • Michelin inaugurates new R&D centre in Manesar, Haryana.
  • Cabinet clears privatisation of debt-ridden Air India; IndiGo expresses interest.
  • Govt sells 2.5% stake in Larsen & Toubro, raises $619 million.
  • Govt to soon clear Amazon’s proposed FDI in food retail: Harsimrat Kaur Badal.
  • Daily revision of diesel, petrol prices started from June 16; Dealers claim Rs 400 crore loss.
  • Lenders forum, led by SBI and ICICI Bank approve Rs 86,000 crore Essar Oil sale to Russia’s Rosneft.
  • SBI gets mandate to take 3 steel companies-Essar Steel, Bhushan Steel and Electrosteel to bankruptcy
    court.
  • India’s crude steel output up 4.5% in Apr-May FY18, World steel output jumps to 143 million tonnes
    in May
  • RIL refinances $2.3 billion loans to cut interest cost.
  • Natural Rubber production rises by 8.7% to 50,000 tonnes in May.
  • NTPC forays into EV charging stations business.
  • States’ fiscal deficit soars to Rs 4.93 trillion in FY16.
  • Cairn tax dispute: I-T department orders recovery of Rs 10,247 crores.
  • Delhi HC allows Singh brothers to sell Fortis stake.
  • Flipkart, Snapdeal merger at risk as Azim Premji’s Premji Invest objects.
  • Packaged food firms to soon disclose details of GM ingredients on labels: FSSAI.
  • Raymond sets up Greenfield garment manufacturing facility in Ethiopia for export to Europe, US.
  • MRP, other info of products sold online mandatory from 2018.
  • Paytm launches traffic challan payment facility on its app.
  • India overtakes China in ease of doing business: Study.
  • World Bank projects 7.2% growth rate for India in 2017.
  • IMF raises China 2017 growth forecast again to 6.7%, its third increase this year; cites policy support.
  • IMF cut its forecast for 2018 US GDP growth to 2.1%, cites Trump fiscal plan uncertainty.
  • India ranked top exporter of Information and Communication Technology (ICT) services: UN report.
  • World food prices climb in May, import bill to rise in 2017: FAO.
  • India’s sea food exports up 23% at to $5.78 billion in 2016-17.
  • 114-year-old Taj Palace becomes first Indian building to get trademark.
WORLD INDICES
Indices 30-Jun 31-May % 1M 02- Jan % since
Jan
BSE 30922 31146 -0.72% 26,595 16.27%
NSE 9521 9621 -1.04% 8,180 16.40%
DOW 21350 21009 1.62% 19,763 8.03%
NASDAQ 6140 6199 -0.94% 5,383 14.07%
FTSE 7313 7520 -2.76% 7,143 2.38%
Nikkei 20033 19651 1.95%/td>

19,114 4.81%
Hang Seng 25765 25661 0.41% 22,001 17.11%
Straits Times 3226 3211 0.49% 2,881 12.00%
Shanghai 3192 3117 2.41% 3,104 2.86%
USD 64.82 64.50 0.49% 68.22 -4.99%
Euro 74.00 72.46 2.12% 71.32 3.75%
GBP 84.13 83.02 1.33% 83.70 0.51%
Yen/100INR 0.58 0.58 -0.38% 0.58 -0.36%
Gold 28439 28843 -1.40% 27,570 3.15%
Silver 38344 40096 4.37% 39,136 2.02%
Crude Brent $ 48.99 51.11 -4.14% 57.16 -14.29%
Crude Nymex $ 46.34 48.70 -4.86% 54.05 -14.27%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
30-Jun 23211 10155 10540 26752 9606
31-May 23425 10549 10871 25841 9025
% 1M -0.91% -3.74% 3.04% 3.52% 6.44%
02-Jan 17970 10367 9327 20710/td>

10310
% since Jan 29.17% -2.04% 13.01% 29.17% -6.83%

INDIAN TRADE( USD MILLION)
Exports 24015
Imports 37856
FDI 3581
Government Bond 10Y 6.51%
GDP YoY 6.10%
Inflation Rate 2.18%
Forex Reserves $ M 382530
IIP % -10.30%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
Equity 2574 6954
Debt 24098 24197
Total 1 M 26672 31151
Total Since Jan 145594 236862
Equity 53580 37197
Debt 92014 199665

Crude Oil Brent, Economy / Market Snapshot -June 2017

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