November 2, 2017 by BizWhiz Admin in Economy Snapshot 0 comments 1001

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

Indian market is at the peak now. Nifty is at 10,400 levels and Sensex is at 33,600 levels. Quarterly results of Corporates have come in and in most of the cases the results are not in line with the market expectations. Announcement on recapitalization of capital of PSU Banks lifted the share prices of PSU Banks significantly and currently the Bank Nifty is trading at 25,500 levels. Indian markets went up by 6% last month with all the sectors going up by 3% to 6%. Despite the rise of the indices, FII’s invested only 2,000 crores in Equity market and Mutual funds invested only Rs.8,600 crores. Together they have invested around 45,000 crores in the debt market. This shows the nervousness on their part to invest further in the equity markets. Globally the stock markets went up. US markets went up by 4% while the Japan market went up by 8%. Indian Rupee is currently at Rs.64.75 against the US Dollar. Gold and Silver prices went down by 1% while Crude went up by 6%.

Yesterday’s news of India registering the 100th place (from 130 last year) in Ease of Doing Business has given a positive signal and market is up today. While the US markets are going up, there are many reports to say that there will be a free fall. Certainly the market is over heated and some nervousness as the market is just going only in one direction. FII’s normally sell their holdings to book profits before the calendar year and this can trigger some panic. While I am not negative on the India Story, the current rise is certainly puzzling!

Happy reading!

Regards
V Murali

General News

  • Assembly elections 2017: Gujarat polls on December 9 and 14; result on December 18. Himachal polls
    to be held on November 9, counting on December 18.
  • PM Modi launches Ro-Ro Ferry from Ghogha to Dahej and lays foundation stones for a number of
    projects in Gujarat.
  • Rahul Gandhi visits poll-bound Gujarat; Hardik Patel, who was reported to have met Rahul Gandhi
    amid speculations, extends his support to beat the BJP.
  • India and USA are natural allies, US to provide India its best military technologies: US Secretary of
    State Rex Tillerson in India.
  • Afghan President Ashraf Ghani reviews bilateral ties with India during New Delhi visit.
  • French defence minister Florence Parley was in India to boost defence and security ties.
  • Sushma Swaraj opens India’s new chancery complex of the Indian High Commission in Dhaka;
    inaugurates 15 development projects funded by India.
  • Amit Shah launched BJP’s 15-day ‘jan raksha yatra’ in Kerala, UP CM Yogi Adityanath participated.
  • Indian Navy inducts newest anti-submarine warfare (ASW) corvette, INS Kiltan.
  • Over 100 ceasefire violations by Pakistan in Jammu region this year: BSF.
  • Banwarilal Purohit, Satya Pal Malik and B.D. Mishra swear in as Governors of Tamil Nadu, Bihar and
    Arunachal Pradesh respectively.
  • Govt appoints former IB Director Dineshwar Sharma as special interlocutor on Kashmir.
  • SC slams Mamata government on Aadhaar plea, says state can’t challenge law passed by Centre.
  • Truckers staged two day strike demanding GST, fuel prices.
  • SC bans sale of firecrackers in Delhi-NCR till November 1.
  • Rajasthan govt defends ordinance shielding judges and public servants from probe.
  • Tamil star Vijay’s movie ‘Mersal’ created controversy after BJP objected to GST references in the movie.
  • UP CM Yogi Adityanath visits Taj Mahal amid controversies.
  • UP govt proposes Lord Rama statue on Saryu River.
  • Honeypreet Insan arrested by Haryana Police in Punjab; confesses to inciting Panchkula violence.
  • SC says no need to stand when National Anthem plays in theatres to prove patriotism.
  • Doklam, Rohingya issue to be examined by parliamentary panel headed by Shashi Tharoor.
  • SC appoints amicus curiae in petition seeking reinvestigation of Mahatma Gandhi’s assassination.
  • AgustaWestland VVIP helicopter scam: Court issues summons to ex-IAF chief Tyagi.
  • Vice-President Venkaiah Naidu released a book ‘Those Eventful Days’ written by Vidyasagar Rao.
  • China opens 409-km long highway in Tibet close to Arunachal Pradesh border.
  • Chinese President Xi Jinping begins second term by ordering army to ‘be combat ready’.
  • Obama, Bush, Clinton didn’t confront North Korea for 25 years, I will: US President Donald Trump.
  • Trump releases some John F Kennedy assassination files, blocks other under CIA and FBI pressure.
  • Trump says ‘total termination’ of Iran deal possible.
  • California wildfires extended to 100 miles wide as death toll reaches 40.
  • UK and EU formally inform WTO of post-Brexit tariff quota plan.
  • Spain dissolves Catalan parliament and calls fresh elections.
  • Earthquake hits North Korea near nuclear test site.
  • Japanese Premier Shinzo Abe sweeps the snap elections.
  • Nawaz Sharif re-elected as head of ruling Pakistan Muslim League-Nawaz Party.
  • Afghan suicide mosque attacks kill scores of worshippers, IS claims responsibility.
  • Mogadishu car bombing death toll rises to 358.
  • Man Booker Prize 2017: George Saunders wins for Lincoln in the Bardo.
  • UK author Kazuo Ishiguro wins Nobel Prize for Literature and American economist Richard H. Thaler
    for Economics.
  • India vs New Zealand: India win the ODI series 2-1.
  • India vs Australia: India win the ODI series 4-1, levels the T20 series after 3rd match was called off.
  • Kidambi Srikanth lifts French Open, wins fourth Super Series title of 2017.
  • ICC gives nod to nine-team Test Championship, 13-team ODI League.
  • FIFA Under-17 World Cup: England outclasses Spain in Final, Brazil finishes third.
  • Cristiano Ronaldo voted FIFA player of the year, joins Lionel Messi as five-time winner.

Business News

  • India jumps 30 spots into top 100 in World Bank’s ease of doing business rankings for the year 2017.
  • Cabinet announces Rs 2.11 lakh crore recapitalisation package for PSU Banks.
  • Cabinet approves mega Rs 7-lakh crore Bharatmala project to develop 83,000 km highways in 5 years.
  • Govt collects Rs 92,150 crore in GST for the month of September.
  • GST rate on many daily-use items, unbranded snacks, ayurvedic medicines reduced.
  • GST council announces relief for exporters: GST refunds in 2 months, no tax for 6 months.
  • August’s IIP comes at 4.3%; September retail inflation at 3.28%, wholesale inflation falls to 2.6%.
  • PM’s Economic Advisory Council meets; acknowledges slowdown, identifies 10 priority areas.
  • Finance minister Arun Jaitley launches gold options trading on the MCX on Dhanteras.
  • Govt makes Aadhaar mandatory for PPF, post office and Kisan Vikas Patra deposits.
  • Govt proposes new bill to enable power supplier portability.
  • India sends wheat to Afghanistan via Chabahar port bypassing Pakistan.
  • General Insurance Corporation’s (GIC Re), Godrej Agrovet, Reliance Nippon Life Asset Management,
    Mahindra logistics launched their IPOs.
  • Hindustan Aeronautics files for IPO papers with SEBI.
  • IPOs raise record Rs 27,000 crore in April-September this year.
  • Govt appoints executive directors in 9 public sector banks.
  • RBI keeps Repo rate unchanged at 6%, cuts Statutory Liquidity Ratio by 50 bps to 19.5%.
  • Rajnish Kumar named new SBI Chairman for 3 years.
  • IDFC board calls off merger talks with Shriram group.
  • Infosys announces November 1 as the record date for its Rs 13,000 crore share buyback programme.
  • TRAI begins pilot testing for interoperable set-top boxes.
  • Tata Teleservices merges its consumer mobile business with Bharti Airtel.
  • Reliance Communications calls off merger with Aircel.
  • Qualcomm files lawsuits in China to ban iPhones.
  • Excise duty on petrol and diesel cut by Rs 2/litre.
  • India receives first-ever shipment of 1.6 million barrel parcel of US crude oil at Paradip port in Odisha.
  • IOC drops plans to merge Chennai Petroleum with itself.
  • Maruti becomes No. 1 exporter of passenger vehicles from India, Hyundai 4th.
  • Honda seeks roadmap on EVs before commercial launch in India.
  • Tata Motors begins E-bus pilot runs in Guwahati.
  • Tesla to build manufacturing plant in China.
  • Air India seeks Rs 1,500 crore short term loan to meet working capitals.
  • Govt finalises blueprint for modernisation of 12 major ports.
  • 331 infrastructure projects see cost overrun of Rs 1.72 lakh crores (10.93% of the original).
  • Foundation stone of Rs 6,500 crore Dassault-Reliance aerospace facility laid in Nagpur SEZ.
  • US presses India to avoid capping medical device prices, allow withdrawals from the market.
  • Lupin’s US arm takes over Symbiomix Therapeutics for Rs 980 crores.
  • Tata Group to bring consolidation, simplification into play: N Chandrasekaran.
  • JP Associates seeks SC nod to sell Yamuna Expressway to compensate homebuyers.
  • Samsung CEO Kwon Oh-hyun announces resignation.
  • India’s pension system showing steady improvement: Melbourne Mercer Global Pension Index 2017.
  • World Bank reduces India GDP growth forecast to 7% for 2017-18, attributes it to demonetisation, GST.
  • Mutual fund assets in North East rise 66% during August.
  • Uday Kotak-led corporate governance panel submits its report.
  • Future Retail acquires HyperCity for Rs 655 crore from Shoppers Stop.
  • Alibaba launches $15 billion drive to build overseas research hubs.
  • Amazon files patent for deploying exclusive drones in India.
  • Mastercard, Andhra Pradesh govt sign MoU to digitally transform the state into a fintech valley.
  • Odisha Govt, SBI signed an MOU for integration of SBI e-Pay with Cyber Treasury, Odisha.
  • A Los Angeles judge tosses $417 million award against Johnson & Johnson in cancer case.

Q2 Results

  • HDFC Bank Q2 profit rises 20% YoY to Rs 4,151 crores, NII up 22% at Rs 9,752 crores.
  • ICICI Bank Q2 Net profit falls 33.66% to Rs 2,058 crore; NII rose 9% to Rs 5,709 crores.
  • Kotak Mahindra Bank Q2 profit up 22.2% at Rs 994.31 crores, GNPA fell to 2.47% and NNPA to 1.26%.
  • Axis Bank Q2 profit came at Rs 432.4 crores, NII at Rs 4,540 crores, provisions up at Rs 3,140 crores.
  • Yes Bank Q2 profit grows 25% YoY at Rs 1,002.7 crores, provisions up 176.5% YoY at Rs 447.1 crores.
  • IDBI Bank posts net loss of Rs 197.84 crore in Q2, provision rose 57.34% QoQ to Rs 3,256.60 crores.
  • IndusInd Bank posts 25% YoY surge in Q2 profit at Rs 880 crores, GNPA at 1.08%, Net NPA at 0.44%.
  • Canara Bank Q2 profit slumps 28% to Rs 260 crore; GNPA stood at 10.51% while NPA at 7.02%.
  • HDFC Q2 profit up 15% to Rs 2,101 crores, NII by 13.7% to Rs 2,612 crores, provisions at Rs 95 crores.
  • Dr Reddys Labs Q2 profit falls 3.4% YoY to Rs 295 crores, revenue fell 1.1% to Rs 3,546 crores.
  • Lupin net profit falls 31% in Q2 to Rs 455 crores, revenue drops 8% to Rs 3951.9 crores YoY.
  • TCS Q2 profit rises 8.4% to Rs 6,446 crores, revenues rose 3.2% QoQ to Rs 30,541 crores.
  • Infosys Q2 profit up 7% QoQ to Rs 3,726 crores, cuts revenue growth forecast to 5.5-6.5%.
  • Wipro’s Q2 profit rises 5.5% to Rs 2,191.7 crores, revenue falls 1.4% to Rs 13,468.7 crores.
  • HCL’s Q2 profit up 0.8% at Rs 2,188 crores, rupee revenue at Rs 12,434 crores and dollar revenue at
    $1,928 million.
  • Bharti Airtel Q2 profit falls 5.1% YoY to Rs 586.1 crores, revenue slips 0.8% to Rs 21,776.9 crores.
  • Maruti Suzuki Q2 net profit rises 3.4% at Rs 2,484.3 crores, revenues rose 21.8% at Rs 21,768 crores.
  • Tata Sons net profit falls 73% to Rs 824 crores, revenue up 23% at Rs 9,985 crores (standalone basis).
  • HUL reports 16.4% rise in net profit at Rs 1,276 crores; revenue down by 2% at Rs 8,309 crores.
  • Dabur India’s Q2 net profit comes at Rs 362.7 crores, revenues at Rs 1,959 crores.
  • ITC’s Q2 profit reported at Rs 2,640 crores, revenue at Rs 10,314 crores; margin dips to 36.52%.
  • Reliance Ind Q2 consolidated net profit comes at Rs 8,097 crores.
  • Rel Jio’s reports Q2 net loss at Rs 270 crores, revenue at Rs 6,147 crores.
  • Asian Paints Q2 profit up by 20% YoY to Rs 593.66 crores, revenue up by 2.3% to Rs 4,274.2 crores.
  • ONGC Q2 profit rises 3% to Rs 5,130 crores; revenue at Rs 18,964.9 crores.
  • IOC Q2 Net profit falls 18.7% to Rs 3,696 crore, revenue 13.7% lower at Rs 1.1 lakh crores
WORLD INDICES
Indices 31-Oct 29-Sep % 1M 02-Jan % since Jan
BSE 33213 31284 6.17% 26595 24.88%
NSE 10335 9789 5.59% 8180 26.36%
DOW 23377 22405 4.34% 19763 18.29%
NASDAQ 6728 6496 3.57% 5383 24.98%
FTSE 7493 7373 1.63% 7143 4.90%
Nikkei 22012 20356 8.13% 19114 15.16%
Hang Seng 28246 27554 2.51% 22001 28.39%
Straits Times 3374 3220 4.79% 2881 17.12%
Shanghai 3393 3349 1.33% 3104 9.33%
USD 64.75 65.28 -0.82% 68.22 -5.09%
Euro 75.37 77.13 -2.27% 71.32 5.68%
GBP 85.82 87.44 -1.84% 83.70 2.54%
Yen/100INR 0.57 0.58 -1.69% 0.58 -1.79%
Gold 29153 29557 -1.37% 27570 5.74%
Silver 38818 39457 -1.62% 39136 -0.81%
Crude Brent $ 61.21 56.79 7.78% 57.16 7.09%
Crude Nymex $ 54.67 51.67 5.81% 54.05 1.15%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
31-Oct 25019 10838 11370 25688 9756
29-Sep 24053 10475 10811 24481 9173
% 1M 4.02% 3.46% 5.17% 4.93% 6.36%
02-Jan 17970 10367 9327 20710 10310
% since Jan 39.23% 4.54% 21.91% 24.03% -5.38%

INDIAN TRADE( USD MILLION)
Exports 28613
Imports 37598
FDI 8579
Government Bond 10Y 6.48%
GDP YoY 5.70%
Inflation Rate 3.28%
Forex Reserves $ M 399920
IIP % 4.30%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
Equity 1978 8621
Debt 16197 29299
Total 1 M 18175 37919
Total Since Jan 177453 424784
Equity 35503 95261
Debt 141949 329523

Crude Oil Brent, Economy / Market Snapshot -October 2017

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