I am pleased to attach the Economy / Market Snapshot covering all the major events in June, 2018.
Indian markets ended almost flat last month. FII’s sold Rs.3,600 crores in the equity market and Rs.10,000 crores in the debt market. Indian Mutual funds invested Rs.6,500 crores in the equity market which helped the market to some extent. The trend is almost the same for the last two months. On the sectoral front, Pharma gained 12%, IT by 2% and FMCG by 0.50% while Bank Nifty lost 2% and Auto by 3%.On the Global front, Shanghai lost about 8 % thanks to the trade war between China and US. Hong Kong also fell by 5%. Nasdaq went up by 1% while Dow went down by 0.50%. London was down by 0.50%. Indian Rupee touched the Rs.69 mark but settled at Rs.68.49 to 1 US $. Government has said that RBI has enough reserves to prevent further slide. Gold went down by 1% while Silver went down by 2%. Crude prices went up by 2% and currently at $ 79 a barrel.
The much awaited Summit of North Korea and US took place in Singapore. While this gave a positive feeling, the trade war between US and China is becoming a major issue. Measures and Counter measures by both US and China have made the markets nervous with the Chinese stock market going down by 8%. Bitcoin plunged below $ 6000 creating a panic amongst the investors. On the Indian business front, ICICI Board finally took a decision to ask Ms Chanda Kochhar to go on leave till investigations are complete, Vijay Mallya releasing a statement regarding his actions to settle the bank loans and the arrest of the CEO of Bank of Maharashtra took the headlines. Monsoon has set in and Quarterly results will start flowing in the next few weeks which will guide the direction of the market.
- PM Modi meets Chinese President Xi Jinping on sidelines of SCO summit; Jinping accepts PM Modi’s invitation for informal summit in India in 2019.
- India Seychelles agree to work together on Assumption Island Project.
- Sushma Swaraj calls for joint action against money laundering, terrorist-financing at BRICS Foreign Ministers’ meeting.
- President Ram Nath Kovind embarks on 3-nation tour to Greece, Suriname and Cuba.
- Sushma Swaraj meets the top leadership of the European Union during her 4-nation Europe tour.
- US envoy to UN Nikki Haley visits India.
- Soul of India is pluralism, tolerance: Pranab Mukherjee at the valedictory function of RSS’s 3rd year officers’ training camp in Nagpur.
- PM Modi launches BJP’s 2019 Lok Sabha election campaign in Maghar, UP.
- Centre forms Cauvery Water Management authority to address water dispute.
- Govt to hire graduates aged 40 or more as joint secretary, issues public notice.
- J&K: Editor of Rising Kashmir, Shujaat Bukhari shot dead by unidentified men; Army jawan Aurangzeb abducted by terrorists killed.
- Centre announces end to Ramzan ceasefire in Jammu & Kashmir.
- Mehbooba Mufti resigns as J&K CM after BJP breaks alliance; President approves Governor’s rule.
- First-ever UN human rights report on Kashmir calls for international inquiry into multiple violations.
- Arvind Kejriwal goes on nine-day sit-in protest at LG’s office over IAS officers’ strike and approval of the ‘doorstep delivery ‘of ration.
- Delhi Vidhan Sabha accepts the resolution on full statehood to Delhi.
- Kumaraswamy inducts 15 Congress, 9 JD(S) members in Karnataka cabinet.
- Monsoon has been good, TN to get Cauvery water: HD Kumaraswamy; calls for all party meeting.
- Maharashtra plastic ban comes into effect; Tamil Nadu bans manufacture, use of plastic starting 2019.
- Chennai-Salem highway row: Aggressive land acquisition by TN govt snowballs into major controversy as protests escalate.
- International Yoga Day: Rajasthan sets world record with more than 1.05 lakh people performing.
- Amarnath yatra kicks off amid tight security but suspended owing to weather conditions.
- Farmers from 172 organisations went on a 10-day nation-wide strike.
- HRD Ministry’s move to scrap UGC evokes mixed response.
- India successfully test fires 5000 km range nuke capable Agni-V off Odisha coast.
- Supreme Court allows govt to provide reservation in promoting SC/ST employees.
- INX Media case: CBI moves SC against Karti Chidambaram’s bail; HC grants P Chidambaram protection from arrest till July 3.
- Vijay Mallya diverted over ₹3,700 crore bank loan funds to F1, IPL and private jet: ED chargesheet.
- Sushma Swaraj introduces Passport Seva App; downloaded a million times in two days.
- 8 states, 4 UTs sign MoUs with health ministry to implement Ayushman Bharat mission.
- Japan’s Shinzo Abe and Donald Trump meet ahead of the historic US-North Korea summit.
- Donald Trump meets with N Korea’s Kim Jong Un at Capella Hotel in Singapore’s Sentosa Island.
- Kim agrees with Trump to complete denuclearization in exchange for security guarantees.
- Sanctions on North Korea to remain till complete denuclearisation: Mike Pompeo.
- Trump withdraws endorsement of G7 joint statement; calls for Russia to be readmitted to the group.
- Putin meets Xi Jinping, says Russia’s cooperation with China has reached ‘unprecedented level’.
- Xi Jinping, Kim Jong Un hold talks; agrees to safeguard, consolidate and develop China-Korea relations.
- US Defense Secretary meets with Chinese President Xi Jinping in Beijing, amid tensions.
- Donald Trump to meet with Russian President Vladimir Putin in Helsinki, Finland, on July 16.
- Trump administration allows families to be detained together at the border; asks Pentagon to prepare 20,000 beds for immigrant children on military bases.
- US Supreme Court upholds Trump’s travel ban from certain countries.
- Britain’s upper house of Parliament rejects PM Theresa May’s Brexit Laws.
- Turkey’s Recep Tayyip Erdogan claims victory in Presidential election.
- Retd Justice Nasirul Mulk takes oath as Pakistan’s caretaker PM ahead of the July assembly elections.
- Saudi Arabia’s ban on women driving officially ends.
- FIFA 2018: Holder Germany eliminated from the tournament, last 16 teams to play for the Quarters.
- Afghanistan vs India: Afghanistan makes its Test debut; loses by an innings and 262 runs.
- Women’s Asia Cup T20 2018: Bangladesh creates history, defeat India in a last-ball thriller.
- India vs Ireland: Clinical India humiliate Ireland by 143 runs for biggest T20 win.
- ICC adds Nepal, Netherlands, Scotland and UAE to ODI Team Rankings.
- French Open 2018: Rafael Nadal wins the 11th title; Romanian Simona Halep wins Women’s singles.
- Novak Djokovic records 800th match win of his career at Fever-Tree Championships.
- Intercontinental Cup: India beat Kenya 2-0 to win title.
- GST collection for May comes at ₹94,016 crores against average monthly collection of ₹89,885 crores.
- Tax department clears ₹7,000 crore GST refunds of exporters.
- President promulgates Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018; Home-buyers recognized as financial creditors.
- Government kicks off its divestment drive for FY19 with the RITES IPO.
- NITI Aayog releases National Strategy on AI; to focus on healthcare, agriculture, education, smart cities and infrastructure, smart mobility and transportation.
- Centre constitutes group headed by Bharat Forge’s Baba Kalyani to study the SEZ policy.
- PM Awas Yojana: Govt approves 33% increase in carpet area of houses under subsidy scheme.
- Govt puts off Air India stake sale for now, to focus on improving operational efficiency.
- Cabinet approves ₹8,000 crore package for sugar sector. • UP Cabinet clears Patanjali’s Rs 6,000-crore food park project in Noida.
- AIIB clears $200 million infusion into National Infrastructure Investment Fund to aid infra growth.
- Fiscal deficit for April-May reaches 55.3% of the budgeted target of FY19.
- RBI hikes Repo Rate by 25 bps to 6.25%, reverse repo rate at 6.50%; projects inflation at 4.8 – 4.9% in H1 2018-19 and 4.7% in H2 2018-19.
- US Federal Reserve raises key interest rate to 1.75-2%; China leaves rates unchanged.
- Bank NPA ratio to hit 12%, may reach highest level since 2000: RBI report.
- Punjab National Bank, Union Bank of India and Syndicate Bank to be put under RBI’s PCA.
- 7 banks, including SBI, ICICI and IDBI, in process of selling NPAs worth ₹28,000 crores.
- IDFC Bank, Capital First get RBI nod for merger.
- Bharat Financial gets stock exchanges’ nod for merger with IndusInd Bank.
- Mid-sized British bank CYBG acquires Virgin Money for $2.3 billion.
- SEBI reduces time for announcement of IPO price band to 2 days; rewrites share buyback regulation.
- Bharat-22 ETF’s second tranche subscribed 2.6 times, investors put in bids worth ₹15,436 crores.
- NSE introduces additional surveillance measures on 60 firms undergoing insolvency process.
- Rupee hits an all-time low, breaching the 69/$ mark for the 1st time.
- Money stashed by Indians in Swiss banks swells by 50%; Piyush Goyal promises action. TCS board clears ₹16,000 crores share buyback at ₹2,100, 14% premium to current price.
- Nokia signs 5-year global IT infrastructure deal with HCL Technologies.
- DoT seeks ₹2,100 crores bank guarantee from Idea to clear Vodafone merger deal.
- Airtel partners with telecom department to boost rural broadband penetration.
- India, Europe Telecom regulators sign memorandum on preserving, promoting net neutrality rules.
- Reliance Jio crosses 200 million user mark in less than 2 years.
- Energy Efficiency Services ltd (EESL), Telangana partners to adopt E-mobility programme.
- Suzuki India crosses 20 million cars production milestone since its inception in 1983.
- Nissan stops development of future diesel powerplants globally.
- Harley-Davidson shifts some manufacturing unit out of US to escape EU tariffs.
- India, China aviation officials discuss increasing air connectivity.
- Andhra Pradesh inks pacts with Singapore consortium to develop Amaravati.
- Govt to restructure the National Pharmaceutical Pricing Authority to revamp drug price regulation.
- OPEC agrees on output hike of 1 million barrels per day.
- Abu Dhabi National Oil Company joins Saudi Aramco to take stake in $44 billion Ratanagiri refinery.
- US imposes import duty on large diameter welded pipes from India & China; raises tariffs on steel and aluminium imports from key allies in Europe and North America.
- Canada fires back at US with $12.6 billion counter tariffs on essentials.
- US imposes 25% tariff on Chinese goods, China retaliates with additional tariffs on $50 billion worth of US goods.
- India increases import duty on 30 US products. • China’s yuan hits fresh 5-month low as trade fight with U.S. intensifies.
- Solar installations in India rises 34% to 3,269 mw in the first quarter of 2018.
- AT&T completes acquisition of Time Warner after US govt allows it to close deal.
- Yahoo Messenger to shut down on July 17, redirects users to group messaging app Squirrel.
- Confederation of All India Traders files complaint with ED against Flipkart, alleges FDI norms violation.
- Truecaller acquires Chillr, to roll out credit and financial services to Indian users.
- Cleartrip announces acquisition of Saudi Arabia-based online travel aggregator ‘Flyin’.
- BookMyShow forays into international event ticketing.
- South Korea’s cryptocurrency exchange Bithumb loses $32 million in digital money heist.
- Australia, New Zealand central banks shun “volatile“ digital currencies.
- Bitcoin skids below $6,000, hits lowest level since November 2017.
- General Electric dropped from Dow Index; replaced with Walgreens Boots Alliance.
- Argentina gets first $15 billion from IMF to stabilise economy.
- Bank of Maharashtra CEO, Executive Director held for role in ₹3,000 crore DSK Group default case.
- CBI files chargesheet against A C Muthiah, others for ₹1.02 billion loss to Syndicate Bank.
- India’s trade deficit widened to 4 month high of $14.62 billion in May as imports surged nearly 15%.
- Indo-Thai bilateral trade to touch $11 billion in 2018; Thailand companies to invest around $3 billion by 2020.
- PSB losses eat up Centre’s $13 billion infusion in FY18: Fitch Ratings.
- Violence costs India’s GDP over $1 trillion on PPP basis, per person cost at ₹40,000: Report.
- Mahesh Kumar Jain, MD & CEO of IDBI Bank, appointed as Dy Governor of RBI for a term of 3 years.
- ICICI Bank’s Board names Sandeep Bakhshi as COO; Chanda Kochhar to go on indefinite leave; appoints former petroleum secretary GC Chaturvedi as non-executive part-time Chairman.
- ICICI Prudential Life’s board appoints NS Kannan as MD and CEO.
- YES Bank shareholders reappoint Rana Kapoor as Managing Director, CEO for 3 years.
- General Motors names Dhivya Suryadevara as CFO.
|Indices||29-Jun||31-May||% 1M||01-Jan||% since Jan|
|Crude Brent $||79.23||77.50||2.23%||67.13||18.02%|
|Crude Nymex $||74.25||66.94||10.92%||60.62||22.48%|
|NIFTY SECTORAL INDICES|
|Sectors||BANK NIFTY||CNX IT||CNX AUTO||CNX FMCG||CNX PHARMA|
|% since Jan||4.13%||20.96%||-9.94%||8.54%||-4.63%|
|INDIAN TRADE( USD MILLION)|
|Government Bond 10Y||7.90%|
|Forex Reserves $ M||407820|
|INSTITUTIONAL TRADING ACTIVITY|
|Particulars||FII (Rs.crore)||MF (Rs.crore)|
|Total 1 M||(13681)||44529|
|Total Since Jan||(41486)||196827|