June 3, 2019 by BizWhiz Admin in Economy Snapshot 0 comments 350

Dear Colleagues

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

May was a great month for the Indian Stock Market. With BJP winning the election by more seats than the previous election took the market to all time high with the Sensex crossing 40,000 mark. Overall the markets went up by 1.50% last month. However, on the sectoral indices, all the indices registered losses except Bank Nifty which zoomed by 5% crossing 31,000 mark. Pharma lost about 10%, IT lost about 3%, Auto lost about 2%. FII’s invested about Rs.8,800 crores in in the equity market while Domestic Institutional Investors invested about 4,800 crores. Indian Rupee closed at Rs.69.68 for 1 US $.

On the Global markets front, it was all RED last month with the trade war between China and US getting out of control. DOW lost about 7%, Nasdaq 8%, London 3%, Tokyo 7%, Hong Kong 9% and Shanghai 6%. Gold was up by 1% while Silver lost about 2% last month. Crude went down by 11% and currently trading at $64 a barrel.

Barring the current issues between China and US, we hope that the Indian market will consolidate at this level and move upwards in the years to come.

Happy reading!…….

Regards
V Murali

General News

  • PM Modi begins 2nd term with 57 ministers as BJP scores a triple ton by winning 303 seats in the LS polls.
  • Amit Shah gets Home, Rajnath Defence, Nirmala Sitharaman gets Finance and Corporate Affairs.
  • Former Foreign Secretary S Jaishankar becomes Minister of External Affairs.
  • Nitin Gadkari retains road transport and highways, Piyush Goyal Railways and given charge of Commerce.
  • Ravi Shankar Prasad assigned ministry of telecom, while he retains the IT and law ministries.
  • Smriti Irani gets Women and Child Development; Gajendra Singh Shekhawat gets Jal Shakti ministry.
  • Assembly elections: Jagan Mohan Reddy takes oath as Andhra Pradesh CM, Prem Singh Tamang as Sikkim CM, Naveen Patnaik as CM of Odisha, Pema Khandu as Arunachal Pradesh CM.
  • Cash, drugs, liquor and precious metals worth ₹3,449.12 crore seized since LS polls were announced: EC.
  • EC curtails West Bengal campaigning after Kolkata violence, a day before its scheduled deadline.
  • Supreme Court dismisses PIL seeking 100% matching of VVPAT slips with EVMs.
  • Sushma Swaraj speaks of Pulwama, Sri Lanka attacks at SCO meeting in Kyrgyzstan.
  • Chinese envoy meets Sikkim CM Pawan Kumar Chamling, discusses border trade.
  • Iran’s Foreign Minister Mohammad Javad Zarif meets External Affairs Minister Sushma Swaraj.
  • Cyclone Fani: At least 72 people have been killed, total damage estimated at ₹12,000 crore.
  • J&K withdraws restriction on civilian highway movement between Srinagar and Baramulla.
  • Lokpal Chairperson Justice Pinaki Chandra Ghose launches Lokpal website.
  • Rahul Gandhi ‘unconditionally apologises’ to SC for wrongly attributing ‘chowkidar’ remark to it.
  • Ayodhya land dispute case: SC extends time for mediation panel till August 15.
  • Mulayam Singh, Akhilesh Yadav get CBI clean chit In Disproportionate Assets case.
  • CBI withdraws application from court seeking permission for further probe in Bofors case.
  • CJI Gogoi gets clean chit as complainant pulls out of inquiry, in-house panel dismisses harassment charges.
  • 4 new SC judges administered oath of office by CJI Ranjan Gogoi, apex court strength reaches 31.
  • Centre extends ban on LTTE for five more years, says organisation poses a grave threat to Indians.
  • CBI issues lookout notice against former Kolkata police chief Rajeev Kumar from leaving country.
  • UK court denies bail to Nirav Modi for third time.
  • India sets up Armed Forces Special Operations Division, with commandos from Army, Navy and Air Force.
  • Indian Air Force receives its first Apache Guardian attack helicopter at its production facility in Arizona, US.
  • ISRO releases the dates for Chandrayaan-2; launch between 9-16 July, landing expected in September.
  • DRDO conducts successful flight test of ABHYAS, a high-speed expendable aerial target (HEAT).
  • Statue of Unity enters prestigious 2019 World Architecture News Awards.
  • Kami Rita Sherpa climbs Mt Everest for 24th time, creates record.
  • Biopic on PM Modi releases on May 24, day after election results.
  • UN designates JeM’s Masood Azhar as global terrorist.
  • Theresa May to step down as British PM on June 7.
  • Donald Trump arrives in Japan, both countries agree to cooperate on space exploration.
  • US approves nearly $6 billion in weapons sales to gulf allies, missile sales to South Korea, Japan.
  • Robert Mueller denies probe cleared Trump, hands baton to Congress.
  • Trump picks acting Pentagon chief and former Boeing executive Patrick Shanahan for Defence Secretary.
  • Federal judge blocks Trump from using Defence funds for parts of border wall.
  • FBI adds Osama bin Laden’s son to its ‘seeking more information list.
  • US renews Iran sanctions waivers for civilian nuclear work.
  • Sri Lankan Parliament approves committee to investigate Easter bombings.
  • Chinese Vice President arrives in Pakistan; hold talks PM Imran Khan and Army Chief Qamar Javed Bajwa.
  • North Korea fires two short-range missiles, US seizes North Korean ship for violating sanctions.
  • Australia election: Prime Minister Scott Morrison seizes a stunning win.
  • South Africa Lawmakers Re-elect Cyril Ramaphosa as President.
  • TV comedian Volodymyr Zelensky sworn in as Ukraine’s sixth President.
  • Indonesia election: Joko Widodo re-elected as president.
  • King Maha Vajiralongkorn crowned Rama X of Thailand.
  • IPL: Mumbai Indians seal 4th title by beating CSK; David Warner wins Orange cap, Imran Tahir Purple cap.
  • ICC World Cup 2019: Hosts England defeat South Africa in the tournament opener by 104 runs.
  • Appellate Tribunal grants interim relief to former IPL Chairman Lalit Modi and N Srinivasan in FEMA case.
  • Asian Champion Gomathi Marimuthu provisionally suspended after testing positive for banned substance.
  • Novak Djokovic ties Rafael Nadal’s record for Masters 1000 titles with his third Madrid Open title.
  • Indian Open Boxing: Mary Kom, Sarita Devi, Amit Panghal bag Gold Medal.
  • Saurav Ghosal, Joshna Chinappa win Asian Squash Championship titles.
  • Apurvi Chandela becomes world No 1 in women’s 10m air rifle, Anjum claims second position.
  • Croatia legend Igor Stimac appointed new coach of India’s Men Football team.
  • Donald Trump awards Presidential Medal of Freedom to Golfer Tiger Woods.

 

Business News

  • GST collections in April at ₹ 1,13,865 crore, highest since roll out of the tax.
  • GST Network releases prototype of new simplified return filing form; to be launched later this year.
  • India Manufacturing Purchasing Managers’ Index declined from 52.6 in March to 51.8 in April.
  • WPI inflation falls to 3.07% in April on cheaper fuel; food prices still high.
  • Sensex crosses 40,000 for the first time, Nifty goes past 12,000 mark as PM Modi wins second term.
  • Govt formally takes over National Housing Bank (NHB) from RBI.
  • Bar council asks Big 4 not to offer legal services.
  • Centre decides to merge statistics bodies CSO and NSSO into a National Statistical Office.
  • RBI directs banks to enhance housing loan limits for eligibility under priority sector lending.
  • RBI releases draft liquidity framework guidelines for ailing NBFCs.
  • PSBs recovered ₹1.22 lakh crore from stressed assets, meeting over two-thirds of their target for the FY19.
  • ICICI-Videocon case: Chanda Kochhar, husband Deepak appears before ED.
  • BSE launches ‘BSE StAR MF’ mobile app for its mutual fund platform.
  • Reliance Capital exits mutual funds business; sells stake to JV partner Nippon Life Insurance.
  • L&T buys more shares of Mindtree from open market, hikes shareholding to 28.88%.
  • India again postpones retaliatory tariff deadline on US products to June 16.
  • India stops purchasing Iranian oil after US waivers expired.
  • US hikes tariffs on $200 billion of Chinese goods, later raises tariffs on remaining imports from China.
  • China hits back at US with tariffs on goods worth $60 billion.
  • China’s Huawei, 70 affiliates placed on US trade blacklist.
  • Pakistan reaches agreement with IMF, to get $6 billion over three years.
  • US Central Bank holds rates steady; Pakistan raises key interest rate to 12.25%.
  • Uber lists at lower side of price band, valued at $82 billion.
  • HCL Comnet, HCL Eagle, HCL Technologies Solutions and Concept2silicon Systems to merge with HCL Tech.
  • IBM-backed Project Owl creates Wi-Fi network for natural disasters.
  • Voda-Idea, IBM sign $700-800 million five-year IT outsourcing deal.
  • Vodafone Idea signs pact with Hyundai arm for connected car services.
  • India’s passenger vehicle sales decline 17% in April, worst fall in nearly 8 years: SIAM.
  • MG Motor India commences production of Hector SUV at its Halol facility.
  • E-vehicle manufacturers asked to indigenise components to avail FAME 2 incentives.
  • Nissan bags patent related to wireless charging technology for EVs.
  • Jet Airways talks: Etihad Airways, Hinduja & AdiGro talk about operational roles and board seats.
  • Spicejet adds 100th plane to fleet, 4th domestic airline to do so.
  • Adani wins Queensland govt’s approval to protect endangered finch bird at coal mine site in Australia.
  • Tata Chemicals and Tata Global Beverages merge consumer business.
  • CCI approves GSK, Pfizer consumer healthcare JV formation.
  • Zydus Wellness’ Heinz India and Zydus Nutrition merge post NCLT approval.
  • PepsiCo withdraw cases filed against Gujarat farmers for allegedly infringing its patent.
  • McDonald’s buys out Vikram Bakshi’s stake in Connaught Plaza Restaurants Pvt Ltd (CPRL).
  • Anil Ambani to sell BIG FM for ₹1,050 crores to Jagran’s Music Broadcast.
  • Flipkart launches online grocery store ‘Supermart’ in Mumbai.
  • Snapdeal close to acquire rival ShopClues in all-stock deal pegged around $200-250 million.
  • Paytm First Card launched in partnership with Citi, a credit card with ‘Universal Unlimited Cashback’.
  • India’s longest serving corporate chairman, ITC’s YC Deveshwar dies at 72.
  • Jet Airways’ Deputy CEO and CFO Amit Agarwal steps down, cites personal reasons for exit.
  • Uber’s first employee, Ryan Graves, resigns from Board.
  • British beverage giant Diageo wins $135 million claim against Vijay Mallya in UK Court.
  • Google cuts ties with Huawei that involves the transfer or hardware, software and key technical services.
  • Trump unveils new immigration plan, proposes to replace green card with Build America Visa.
  • Reliance Industries buys British toy retailer Hamleys.
  • Connaught Place in Delhi is fourth most expensive office market in Asia-Pacific: Knight Frank report.
  • 1.37 crore formal sector jobs created in FY19: EPFO subscription data.
  • UK Rich List 2019: Hinduja brothers top rankings for third time.
  • India ranks 3rd among nations that lost most millionaires in 2018: Global Wealth Migration Review 2019.

 

Q4 Results

  • SBI reports net profit of ₹838.4 crore; GNPA declines to 7.53%, NNPA falls to 3.01%.
  • ICICI Bank Q4 profit falls 5% YoY to ₹969 crore; asset quality improves net NPA down from 2.58% to 2.06%.
  • PNB Q4 net loss narrows to ₹4,750 crore; GNPA drops to 15.5%, NNPA falls to 6.56%.
  • IDBI Bank’s Q4 net loss widens to ₹15,013 crore on higher provisions, NII grew by 76% YoY to ₹1,609 crore.
  • Bank of Baroda narrows Q4 loss to ₹991 crore, NPA provisions at over ₹5,550 crore.
  • HDFC Q4 net jumps 27% to ₹2,861.60 crore, interest income rises 19%; announces ₹17.50/share dividend.
  • HCL Tech Q4 profit rises 15% YoY to ₹2,568 crore; guides for 14-16% FY20 revenue growth.
  • Cognizant Technology Solutions reports a 18% drop in net profit to $441 million.
  • L&T Infotech profit surges 36.2% to ₹1,515.5 crore in FY19, revenue jumps 29%.
  • Bharti Airtel posts 24% jump in Q4 net profit at ₹107.2 crore aided by exceptional gain of ₹2,022 crore.
  • RCom reports Q4 net loss at ₹7,767 crore, total income rose to ₹1,089 crore.
  • SpiceJet Q4 profit rises 21.86% YoY to ₹56.30 crore, Operating revenues stood at ₹2,531.30 crore.
  • IOC Q4 profit rises 17% to ₹6,099 crore; gross refining margin falls to $5.41/barrel in FY19.
  • ITC Q4 profit rises 19% YoY to ₹3,482 crore, revenue stood at ₹12,206 crore.
  • Tata Motors Q4 profit slumps 47% YoY to ₹1,117 crore, revenue for the quarter fell to ₹85,676.33 crores.
  • Ashok Leyland Q4 profit slips 12% at ₹653 crore, revenue falls 0.75% to ₹8,846 crore.
  • M&M Q4 profit dips 16% to ₹969 crore, revenue grew by 4.7% to ₹13,808 crore.
  • Bajaj Auto Q4 profit grows 21% to ₹1,306 crore; revenues from operations rose 9% to ₹7,395 crore.
  • IndiGo Q4 profit jumps 5-fold to ₹589.60 crore, revenue rose 35.9% to ₹788.34 crore.
  • India Cements Q4 profit up 24% at ₹43.85 crore on improved prices.
  • BHEL posts 49% YoY jump in Q4 profit at ₹683 crore, other expenses falls to ₹1,081.10 crore.
  • Dr Reddy’s Q4 profit jumps 44% YoY to ₹434 crore, sales for the quarter rose 14% to ₹4,016.60 crore.

 

WORLD INDICES
Indices 31-May 30-Apr % 1M 01-Jan % since Jan
 BSE 39714 39032 1.75% 36255 9.54%
 NSE 11923 11748 1.49% 10910 9.28%
 DOW 24815 26593 -6.69% 23327 6.38%
 NASDAQ 7453 8095 -7.93% 6635 12.33%
 FTSE 7162 7418 -3.46% 6728 6.44%
 Nikkei 20601 22259 -7.45% 20015 2.93%
 Hang Seng 26901 29699 -9.42% 25846 4.08%
 Straits Times 3118 3400 -8.31% 3069 1.60%
 Shanghai 2899 3078 -5.83% 2494 16.23%
 USD 69.68 69.56 0.17% 69.45 0.33%
 Euro 77.84 78.03 -0.24% 79.50 -2.09%
 GBP 88.12 90.71 -2.86% 88.40 -0.32%
 Yen/100INR 0.64 0.62 3.12% 0.63 1.37%
 Gold 32098 31756 1.08% 31422 2.15%
 Silver 36449 37209 -2.04% 38786 -6.03%
 Crude Brent $ 64.49 72.80 -11.41% 53.50 20.54%
 Crude Nymex $ 53.50 63.28 -15.46% 45.31 18.08%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
31-May 31375 16161 8176 29850 8455
30-Apr 29765 16705 8351 30337 9403
% 1M 5.41% -3.26% -2.10% -1.60% -10.08%
01-Jan 27392 14451 9182 30398 8882
% since Jan 14.54% 11.83% -10.97% -1.80% -4.81%

INDIAN TRADE(USD MILLION)
 Exports 26070
 Imports 41400
 FDI 3724
 Government Bond 10Y 7.03%
 GDP YoY 5.80%
 Inflation Rate 2.92%
 Forex Reserves $ M 419990
 IIP % 10.00%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
 Equity 8832 4809
 Debt 1869 33851
 Total 1 M 10701 38660
 Total Since Jan 77650 236107
 Equity 76892 962
 Debt 759 235145

 

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