June 1, 2017 by BizWhiz Admin in Economy Snapshot 0 comments 1115

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

May was an extraordinary month for the markets worldwide. Indian Stock market is scaling the peak almost every session with the Sensex crossing 31,000 and the Nifty crossing 9,600. Bank Nifty is at the peak at 23,400. IT stocks bounced last month with a 6% increase while Pharma stocks were down by 11%. Both FII’s and Domestic Institutions were net buyers in the equity market to the extent of 9,000 crores each. In the last 5 months in 2017, FII’s have pumped in Rs.1,17,000 crores in the equity market. World stock markets were up last month with Dow crossing 21,000 mark and Nasdaq crossing 6,200 mark. Indian Rupee is stable against the US Dollar and is currently at Rs.64.50 for 1 US Dollar. Silver went up by 1.50% while Gold remained neutral. Crude prices came down by 1%.

Indian markets have gone up by 17% in the last 5 months; Despite reports of over valuation and a steep fall, the market is steadily going up giving an indication that the dream bull run would continue. Most of the Corporate results are out and we have not seen anything spectacular. Actions of Trump being watched globally and the regional issues with China, Pakistan can impact our market. Heavy inflows are coming into the Mutual Funds from the retail investors making stock market as an attractive place for their returns. No one can predict the direction of the market; Let us hope that June not only brings in respite from the summer heat but also see that the Stock Market continue to climb higher and higher !

Happy reading!

Regards
V Murali

General News

  • Babri case: LK Advani, Murli Manohar Joshi and Uma Bharati charged for criminal conspiracy.
  • Monsoon rains arrive at southern Kerala coast, Northeast simultaneously.
  • SC concludes hearings on Triple Talaq, reserves verdict.
  • PM Modi embarks on a four-nation tour to Germany, Spain, Russia and France.
  • Turkish President Recep Tayyip Erdogan visits India; India and Turkey decide to increase their bilateral
    trade from $6.4 billion to $10 billion by 2020.
  • Mauritius PM Pravind Jugnauth on his visit agree to cooperate with India to step up vigil against
    threats in Indian Ocean; India announces $500 million credit assistance to Mauritius.
  • PM Modi visits Sri Lanka, assures support amid China concerns; announces direct AI flight between
    Varanasi and Colombo.
  • CBI raids properties of P Chidambaram, Karti over INX Media; ED files money laundering case against
    Karti Chidambaram, Mukerjeas.
  • IT conducts raids in Delhi, Gurgaon in benami land deal case linked to Lalu.
  • EC demonstrates successful functioning of voting machines, VVPATs; announces EVM hackathon from
    June 3.
  • Mutilation of 2 Indian soldiers by Pakistan causes tension across LoC.
  • Air Force’s Sukhoi-30 Jet with 2 pilots on board missing; wreckage were found near China border.
  • ISRO successfully launches South Asian satellite, GSAT-9.
  • WannaCry virus, a cyberattack hits 200,000 victims in 150 countries; experts question North Korea role
    in the cyberattack.
  • PM Modi inaugurates India’s longest bridge in Assam, names it after Singer Bhupen Hazarika.
  • Sonia Gandhi hosts 17 Opposition leaders for lunch, Nitish Kumar skips the meeting and later meets
    PM Modi.
  • Govt issues new cattle slaughter rule; several state governments raise their opposition.
  • India, Pakistan knock the doors of ICJ on Kulbhushan Jadhav sentence, ICJ orders Pakistan to stay
    Jadhav execution.
  • SC orders six-month jail for Justice Karnan in contempt case; Justice Karnan still elusive petitions SC
    against punishment.
  • SC holds Vijay Mallya guilty of contempt, orders him to appear on July 10.
  • CBI registers a series of cases against Air India, aviation ministry.
  • Nirbhaya case: SC upholds death sentence of 4 convicts.
  • Swachh Bharat Rankings: Indore cleanest in India, Mysuru slips to fifth place from first rank.
  • Presidential polls: 17 Opposition parties gang up against NDA regime.
  • Environment Minister Anil Dave passes away, Harsh Vardhan gets additional charge of the Ministry.
  • Tejas Express, India’s newest train, makes its first trip on Monday from Mumbai to Goa.
  • EC bribery case: Money laundering case registered against AIADMK’s TTV Dinakaran.
  • Rajnikanth announces entry into politics.
  • EC cancels Anantnag Lok Sabha bypoll citing poor law and order situation.
  • Sacked AAP minister Kapil Mishra lists out allegations against AAP and Arvind Kejriwal.
  • Donald Trump visits Saudi Arabia, Israel, Vatican in his first foreign trip.
  • US House passes Obamacare replacement bill; downshifts Michelle Obama’s healthy school food
    scheme.
  • Trump fires FBI Chief James Comey.
  • Hillary Clinton launches new political action group, Onward Together.
  • Emmanuel Macron takes office as France’s youngest ever President.
  • Iran’s Hassan Rouhani wins second term as President.
  • Nepal PM Prachanda resigns to pave way for Nepali Congress Chief Sher Bahadur Deuba.
  • Kabul bomb blast: More than 80 dead, scores injured after explosion near embassies in Afghan capital.
  • North Korea stages 3rd missile test in 3 weeks.
  • Manchester Arena attack: At least 22 dead, 50 injured in suicide bomb attack in UK. ISIS claims
    responsibility.
  • Prince Philip steps down from carrying out royal engagements; Former UK PM Tony Blair announces
    return to politics to fight against Brexit.
  • Wrestler Bajrang Punia wins gold at Asian Championships.
  • Arjun Maini becomes first Indian to win GP3 race.
  • Indian fencer CA Bhavani Devi strikes gold in tournament in Iceland.
  • IPL 2017: Mumbai Indians nudge Rising Pune Supergiant to clinch third IPL title.
  • Champions Trophy: Defending champions India hopes to retain the trophy.
  • Pakistan win Test series in West Indies for first time.

 

Business News

  • GST Council finalises tax rates on 80-90% goods and services, 83 services exempt; No decision on tax
    on Gold; Food grains, common-use products to get cheaper.
  • Indian stock market indices and US stock market indices reach record highs.
  • RBI gets powers for ‘clean banks’ with Presidential nod to NPAs ordinance; outlines action plan to
    implement ordinance on NPAs.
  • ICICI Bank dedicates 100 ICICI Digital Villages to the nation, targets 500 more by 2017.
  • Bank of England leaves interest rates unchanged and trims 2017 growth forecast.
  • Federal Reserve keeps interest rate unchanged.
  • Attorney General refuses to give opinion on HDFC Life, Max Life merger, returns file to IRDA.
  • Mutual Funds’ asset base crosses Rs 19 lakh crore mark; asset base from smaller cities surge 41% in
    FY 2017.
  • CSO announces new series of WPI and IIP data; base year changed to 2011-12.
  • BSNL starts satellite phone service through INMARSAT.
  • Reliance Jio plans to lease dark fibre laid under BharatNet initiative; in talks with govt.
  • Manufacturing sector grows for 4th straight month in April: Survey.
  • World food prices fall for third straight month in April.
  • Overall job market sees an 11% dip in April, IT worst hit with a 24% fall.
  • India’s forex reserves go up $4 billion to touch new high of $379.3 billion.
  • US economy grows at tepid 1.2%; business spending softens.
  • India to clock 7.1% GDP this year, 7.5% in 2018: UN report.
  • India retains World’s highest FDI recipient crown ahead of China and the US: Report.
  • Layoffs in Indian IT may continue for 1-2 yrs: Experts.
  • IT workers forum FITE (Forum for Information Technology Employees) to register as union as layoffs
    loom large.
  • India overtakes China to become the World’s largest two- wheeler market.
  • Maruti sells record 144,081 cars in April, domestic volumes up 23%.
  • Niti Aayog recommends limiting the registration of petrol and diesel cars via public lotteries.
  • Govt planning multi-billion-dollar push for electric vehicles; NTPC to invest Rs 10,000 crores.
  • Govt in talks with SoftBank for funding two lakh electric buses: Nitin Gadkari.
  • BS 3 fire sale: Car & bike makers suffered a toll of Rs 500 crore on discounts in March.
  • Daimler India crosses export milestone of 10,000 trucks.
  • A computer failure at British Airways causes chaos for flyers.
  • The Real Estate (Regulation and Development) Act, 2016 (RERA) came into effect in 13 states and
    united territories, including Maharashtra.
  • OPEC sees much higher oil supply from non-member countries in 2017.
  • Iraq replaces Saudi as top oil supplier to India in April: Trade flow data.
  • India, Japan JV to set up LNG import terminal in Sri Lanka.
  • IOC overtakes ONGC to become India’s most profitable PSU.
  • India imposes anti-dumping duty on 47 steel products for 5 years.
  • Steel exports jump 142% to 0.747 million tonnes in April.
  • Adani reaches royalty deal for $16.5 billion Australia coal mine.
  • Paytm launches Payments Bank, targets 500 million customers in 3 years.
  • Nisaba Godrej to head Godrej Consumer Products; Adi Godrej to remain as Chairman Emeritus.
  • Khadi industry witnesses record sales of Rs 50,000 crores for the first time in India.
  • Govt tweaks Startup definition, benefits to flow for 7 years.
  • Sahara’s Aamby Valley to be auctioned in June, valued at Rs43,000 crores.
  • EU raises eurozone growth outlook despite high uncertainty; 1.7% in 2017 followed by 1.8% in 2018.
  • IMF Chief urges eurozone to back Greece debt relief; EU ministers fail to reach deal, delaying release
    of fresh bailout cash.
  • Fitch keeps India’s sovereign rating unchanged at BBB- with a stable outlook.
  • Moody’s downgrades China, warns of fading financial strength as debt mounts, hints another downgrade is possible; cuts Hong Kong rating too

Q4 Results

  • SBI Q4 net profit more than doubles to Rs 2,814 crores; asset quality stable.
  • ICICI Bank reports a 3-fold jump in Q4 net profit at Rs 2,025 crores YoY; to issue bonus shares of 1:10.
  • Punjab National Bank posts Q4 profit at Rs 262 crores, Net interest income at Rs 3,683.5 crores.
  • Bank of Baroda posts profit at Rs 155 crores; expects new NPAs to reduce to Rs 3,000 crores.
  • Bank of Maharashtra Q4 loss widens to Rs 455 crores as provisions up 170% at Rs 1,833.4 crores.
  • Canara Bank posts Rs 214 crore profit for Q4.
  • Bank of India narrows loss to Rs 1045 crores in Q4; asset quality worsens.
  • HDFC Q4 profit falls 22% to Rs 2044 crores, NII soars 26%; provisions decline 73%.
  • Cognizant reports 26.3% YoY in net income at $557 million, total revenue at $3.55 billion.
  • HCL Tech Q4 net profit rises 12% QoQ to Rs 2,325 crores, revenues up 2% higher at Rs 12,053 crores.
  • Tech Mahindra’s Q4 net falls 30% to Rs 589 crores, EBIT falls 34.4% to Rs 615 crores.
  • HPCL posts 14% rise in Q4 net profit at Rs 1,819 crores, revenues at Rs 58,779 crores.
  • IOC reports 85% YoY jump in Q4 net profit Rs 3,720.62 crores, total income up to Rs 1.22 lakh crores.
  • Dr Reddy’s Lab Q4 net profit jumps three-fold to Rs 337.60 crores.
  • M&M Q4 profit rises 26.3% YoY to Rs 873.72 crores, revenue increases 4.3% to Rs 10,612 crores.
  • Patanjali reports Rs 10,561 crore turnover for FY17, eyes 2-fold rise in revenue at Rs 20,000 crores in
    FY18.
  • Dabur India Q4 net profit flat at Rs 333.11 crore YoY, total income down 4% to Rs 1,979.72 crores.
  • HUL’s Q4 beats Street as profit rises 6% to Rs 1,183 crores, EBITDA up 12% at Rs 1,651 crores.
  • Idea posts Q4 loss of Rs 328 crores amid Reliance Jio onslaught.
  • ITC Q4 net profit up 12.1% YoY to Rs 2,669 crores.
  • L&T Q4 profit jumps 28% to Rs 3,180.41 crores; announces 1:2 bonus issue.
WORLD INDICES
Indices 31-May 28-Apr % 1M 02- Jan % since
Jan
BSE 31146 29918 4.10% 26,595 5 17.11%
NSE 9621 9304 3.41% 8,180 17.63%
DOW 21009 20941 0.33% 19,763 6.31%
NASDAQ 6199 6048 2.50% 5,383 15.15%
FTSE 7520 7204 4.39% 7,143 5.28%
Nikkei 19651 19197 2.36% 19,114 2.81%
Hang Seng 25661/td>

24615 4.25% 22,001 16.64%
Straits Times 3211 3175 1.11% 2,881 11.46%
Shanghai 3117 3155 -1.19% 3,104 0.44%
USD 64.50 64.53 -0.05% 68.22 -5.45%
Euro 72.46 70.62 2.61% 71.32 1.60%
GBP 83.02 83.58 -0.67% 83.70 -0.81%
Yen/100INR 0.58 0.58 0.21% 0.58 0.02%
Gold 28843 28873 -0.10% 27,570 4.62%
Silver 40096 39503 1.50% 39,136 2.45%
Crude Brent $ 51.11 51.84 -1.42% 57.16 -10.59%
Crude Nymex $ 48.70 49.14 -0.89% 54.05 -9.90%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
31-May 23425 10549 10871 25841 9025
28-Apr 22358 9944 10255 23675 10121
% 1M 4.77% 6.09% 6.00% 9.15% -10.83%
02-Jan 17970 10367 9327 20710/td>

10310
% since Jan 30.36% 1.76% 16.55% 24.78% -12.46%

INDIAN TRADE( USD MILLION)
Exports 24635
Imports 37884
FDI 395
Government Bond 10Y 6.65%
GDP YoY 6.10%
Inflation Rate 2.99%
Forex Reserves $ M 379310
IIP % 2.70%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
Equity 8825 8960
Debt 19437 8218
Total 1 M 28262 17177
Total Since Jan 117029 204016
Equity 49874 29845
Debt 67155 174171

Crude Oil Brent, Economy / Market Snapshot -May 2017

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