November 1, 2019 by BizWhiz Admin in Economy Snapshot 0 comments 19

Dear Colleagues

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

Indian Markets registered a gain of 4% last month taking the Sensex above 40,000 mark again. Auto stocks rebounded with a 13% gain, Pharma and FMCG gained 4%, Bank Nifty gained 3% and IT remained neutral last month. FII’s are back in the market with an investment of about Rs.12,600 crores in the equity market while Domestic Institutional Investors invested about 3,200 crores. Indian Rupee closed at Rs.70.95 for 1 US $. Quarterly results have not been negative so far and the mood with the festival of Diwali is great. IT index did not gain considering the news of the whistleblower on Infosys.

On the Global markets front, it was all GREEN last month except FTSE which lost about 2%. All the markets went up by 3% to 5% with DOW remaining marginally higher. On the commodities side, Gold gained about 4% and Silver gained about 6%. Crude lost about 2%.

Happy reading!……

Regards
V Murali

General News

  • Jammu and Kashmir bifurcated: India gets two new Union Territories in J&K, Ladakh.
  • RK Mathur sworn-in as the first LG of Ladakh, G C Murmu as first LG of J&K.
  • Assembly Elections: BJP wins Maharashtra with Shiv Sena, Devendra Fadnavis set to be CM for 2nd term.
  • Manohar Lal Khattar takes oath as Haryana CM for second term, Dushyant Chautala as deputy CM.
  • Election Commission fixes November 25 for West Bengal, Uttarakhand assembly bypolls.
  • Winter session of Parliament to commence from November 18 and continue till December 13.
  • Chinese President Xi Jinping and PM Modi hold 2nd Indo-China informal meet in Mamallapuram.
  • President Ram Nath Kovind embarks on 7-day visit to Philippines & Japan.
  • Bangladesh PM Sheikh Hasina visits India; sign 7 pacts, launch 3 projects on LPG .
  • Vice President Venkaiah Naidu visits Comoros, Sierra Leone.
  • India, Saudi Arabia establish Strategic Partnership Council in areas ranging from trade to energy security.
  • PM Modi embarks on two-day Saudi Arabia visit; investments, strategic relations in focus.
  • Mahatma Gandhi’s 150th birth anniversary: PM Modi releases commemorative ₹150 coins.
  • PM Modi meets bollywood celebrities to mark 150 years of Mahatma Gandhi, release special video.
  • Parliamentary panel to review functioning of UIDAI, examine citizens’ data security and privacy.
  • Kartarpur Corridor: India, Pakistan sign historic pact; PM Modi to inaugurate Indian side on Nov. 8.
  • Rajnath Singh receives IAF’s first Rafale fighter jet from a series of 36 aircraft purchased from France.
  • Government approves procurement of indigenously developed military hardware worth ₹3,300 crore.
  • Mexico flies 300 Indian migrants to New Delhi in ‘unprecedented’ mass deportation.
  • J&K administration orders abolition of Legislative Council; postpaid mobile phone services restored.
  • Thirty members of the European Parliament panel visit J&K and meet civil groups amid criticism.
  • Government approves ₹5.5 lakh package for left out PoK migrants.
  • Free bus ride scheme for women begins in Delhi.
  • Siddaramaiah named leader of opposition in Karnataka; Doordarshan to cover Assembly proceedings.
  • Telangana transport strike enters 27th day, talks between transport workers, management fail.
  • Former Maharashtra CM Narayan Rane joins BJP with his outfit Maharashtra Swabhiman Paksha.
  • Ayodhya Case: Supreme Court finishes hearing arguments by all parties, reserves judgment.
  • Justice Sharad Arvind Bobde appointed as 47th Chief Justice of India.
  • INX Media case: ED arrests Chidambaram after 55 days of CBI and judicial custody.
  • Chidambaram gets bail from Supreme Court in CBI’s INX Media case, stays in ED custody.
  • Delhi HC grants bail to DK Shivakumar in money laundering case.
  • SC orders transfer of Assam NRC Coordinator Prateek Hajela to MP on deputation.
  • Saradha scam: Rajeev Kumar surrenders before city court, granted bail.
  • Aarey forest: SC stays further felling of trees for Mumbai Metro construction.
  • Kochi Maradu flats: Eviction process begins; SC orders ₹25 lakh interim compensation to all flat owners.
  • India’s highest altitude all-weather permanent Bridge inaugurated by Rajnath Singh in Eastern Ladakh.
  • Delhi’s Odd-Even rule: ₹4,000 fine for violation, two-wheelers, vehicles with school children exempted.
  • UP CM Yogi Adityanath flags off India’s first corporatized train Lucknow-Delhi Tejas Express.
  • Govt launches Surakshit Matritva Aashwasan, SUMAN, an initiative for quality health care at no cost.
  • Heaviest monsoon rains in 25 years kill 1,600 people since June in India.
  • Chandrayaan-2: Latest Moon flyby finds no trace of Vikram lander says NASA.
  • NASA’s Christina Koch and Jessica Meir creates history by completing the first ever all-female spacewalk.
  • Nobel Peace Prize awarded to Ethiopian Prime Minister Abiy Ahmed Ali.
  • Abhijit Banerjee, Esther Duflo and Michael Kremer jointly won the 2019 Nobel Economics Prize.
  • EU and UK agree to new deal in key Brexit breakthrough; UK set for election on December 12.
  • American troops withdraw from Syria, Trump lifts sanctions on Turkey; House approves sanctions.
  • Trump confirms Islamic State leader Abu Bakr al-Baghdadi blew himself up as US troops closed in.
  • Nancy Pelosi announces formal impeachment inquiry into President Donald Trump.
  • FATF’s Grey List: Sri Lanka removed, Pakistan to remain till February 2020.
  • Tibetan government passes resolution on ‘reincarnation of Dalai Lama’.
  • Hong Kong govt formally withdraws extradition bill; region enters recession as protests enter 5 months.
  • Justin Trudeau wins 2nd term but loses majority, will return to power as a minority government.
  • Russia’s Putin meets with Turkey’s Erdogan, Russia agrees to help Turkey expand buffer zone in Syria.
  • ICC scraps boundary count rule that cost New Zealand World Cup 2019.
  • Sourav Ganguly takes over as 39th BCCI President.
  • India v South Africa: Hosts wrap up series whitewash with dominant third Test win.
  • India vs South Africa 1st match records most sixes(36) in a test match ever.
  • Kohli becomes first Indian to score 40 international hundreds as captain.
  • ICC Test Championship Points Table: India remain No. 1 with 240 points.
  • Kohli rested, Rohit Sharma to lead India’s 15-member T20I squad for 3-match series against Bangladesh.
  • Sarfaraz Ahmed sacked as Pakistan’s Test and T20 captain; Azhar Ali, Babar Azam to take over.
  • T20 World Cup Qualifier: Papua New Guinea book maiden T20 World Cup place.
  • Badminton: 17-year-old Priyanshu, mixed doubles pair Juhi-Venkat win Bahrain International Series title.
  • Satwik-Chirag lose French Open final, settle for silver.
  • Avinash Sable seals Olympics berth, sets new national record at IAAF World Athletics Championships.
  • Mithali Raj becomes the only female cricketer in the world to have played ODIs for 20 years.
  • World Boxing Championships: Mary Kom settles for bronze in 51kg, Manju Rani bags silver in 48kg

 

Business News

  • RBI cuts repo rate from 5.40% to 5.15%; GDP outlook for 2019-20 revised to 6.1% from 6.9%.
  • Cabinet hikes dearness allowance for govt employees by 5% to 17%.
  • Govt approves BSNL-MTNL merger, clears ₹70,000-crore relief package.
  • IRCTC makes blockbuster stock market debut; lists at ₹644, 101.25% premium over its issue price.
  • PMC Bank crisis: PMC, HDIL directors arrested; RBI raises withdrawal limit to raised to ₹40,000.
  • RBI rejects proposed merger of Lakshmi Vilas Bank, Indiabulls Housing Finance.
  • Kerala Bank set to be formed as RBI approves merger of state cooperative banks.
  • ICICI Bank sells entire stake in GST Network to 13 state governments.
  • Yes Bank gets a binding offer from a global investor for an investment of $1.2 billion in the bank.
  • Fintech start-up Subh Loans gets NBFC licence from RBI.
  • Reliance Nippon Life AMC rechristened Nippon India Mutual Fund.
  • Sundaram BNP Paribas Registrar and Transfer Agent (RTA) business merges with Karvy.
  • SEBI notifies exit load on redemptions from liquid funds within 7 days of investment.
  • Warburg Pincus, Premji Invest buys Insurance Australia Group’s stake in SBI General for $432 million.
  • India gets first tranche of Swiss account details under automatic exchange framework.
  • India Post launches mobile banking facility for savings accounts.
  • India signs deal with Saudi Arabia to launch RuPay card in the Kingdom.
  • IMF slashes India’s GDP growth forecast to 6.1% in 2019; World Bank cuts FY20 growth projection to 6%.
  • Trade ministers of 16 RCEP countries meet in Bangkok; RCEP group, India fail to reach a common ground.
  • US Fed cuts key rate by 25 bps, but signals pause in its easing cycle.
  • China’s third-quarter GDP growth grinds to near 30-year low of 6% as tariffs hit production.
  • China offers to buy $10-billion US goods to ease trade war.
  • Whistleblowers accuses Infosys CEO, CFO of unethical practices; SEC, SEBI initiate investigation.
  • SAP strikes three-year cloud computing deal with Microsoft.
  • Microsoft beats Amazon for Pentagon’s $10 billion cloud computing contract.
  • BS-VI fuel available across NCR, 6 months ahead of country-wide deadline.
  • M&M forms JV with Ford; announces 51% stake in new entity, plans to launch 3 utility vehicles.
  • Tesla gets approval to start manufacturing in China.
  • Ford partners with Volkswagen, Amazon to build charging network for cars.
  • MG Motor India partners eChargeBays for setting up home charging infrastructure for EVs.
  • Air India subsidiary Alliance Air gets nod for foreign flights.
  • Etihad Airways, Air Arabia partner to set up Abu Dhabi’s first low-cost airline, Air Arabia Abu Dhabi.
  • UP CM flags off India’s first private train Lucknow-New Delhi Tejas Express.
  • Oil & Gas: Total buys 37% stake in Adani Gas for ₹5,662 crore; Exxon Mobil, ONGC sign MoU.
  • SC rejects telecom companies’ definition of AGR, companies to pay ₹92,000 crore as licence fee dues.
  • Jio charges 6 paise per minute IUC charge to its customers for calls to other networks.
  • Facebook officially launches Libra, announces 21 founding members, including Uber, Lyft and Spotify.
  • Samsung ends mobile phone production in China.
  • Apple begins manufacturing of iPhone XR in India, iPhone 11 next in line.
  • Telangana goes for drone-driven healthcare, ties up with Apollo Hospitals unit.
  • Ola launches self-drive platform Ola Drive in India, aims to host 20,000 cars by 2020.
  • Uber CEO Dara Khosrowshahi launches its public transport feature in Delhi, its first for Asia.
  • Oyo opens 100 hotels in partnership with Softbank in Japan.
  • WeWork seals multi-billion-dollar rescue deal with SoftBank, founder to exit with $1.7 billion.
  • Flipkart forays into original video content, takes on Amazon and Netflix.
  • India moves up 14 spots to 63 on World Bank’s Ease of Doing Business, New Zealand tops the list.
  • Global Competitiveness Index 2019: India slips to 68th rank from 58th, Singapore replaces US at top.
  • India ranked third in 2019 Hurun Global Unicorn List; China pips US to top ranking.
  • Forbes India Rich List 2019: Mukesh Ambani tops for 12th year; Gautam Adani jumps to No 2.
  • Karnataka, Tamil Nadu and Maharashtra ranked top 3 states in Niti Aayog’s India Innovation Index 2019.
  • Economic Affairs Secretary Atanu Chakraborty gets additional charge of Expenditure department.
  • Neelkanth Mishra, Nilesh Shah, Anantha Nageswaran inducted into PM Economic Advisory Council.
  • Infosys deputy CFO Jayesh Sanghrajka resigns; exit comes after 14-year stint in IT major.
  • Former IMF chief Christine Lagarde appointed head of European Central Bank.
  • Indian Banks Association elects Rajnish Kumar as chairman.

 

Q2 Results

  • HDFC Bank Q2 net jumps 26.8% to ₹6,345 crore, NII grew by 14.89% YoY to ₹13,515.04 crore.
  • ICICI Bank Q2 profit falls 27.90% YoY to ₹654.96 crore, NII increased 25.53% YoY to ₹8,057 crore.
  • Kotak Mahindra Bank Q2 profit jumps 51% YoY to ₹1,724 crore, NII grows 25% to ₹3,350 crores.
  • SBI Q2 profit zooms 3-fold to ₹3,012 crore on one-time gain, NII up at 17.67%.
  • Axis Bank logs net loss of ₹112 crore in Q2, NII grew 17% YoY to ₹6,102 crore.
  • Bajaj Finance Q2 profit rises 63% YoY to ₹1,506 crore, revenue rises 47.95% YoY to ₹6,322.55 crores.
  • Maruti Suzuki posts Q2 profit dips 39% YoY to ₹1,359 crore; Net sales down 22.50% at ₹16,120.40 crore.
  • Tata Motors reports consolidated loss of ₹216.56 crore in Q2; revenue fell 9% to ₹65,432 crore.
  • TCS Q2 net rises 1.8% YoY at ₹8,042 crore, revenue up 6% at ₹38,977 crore, announces special dividend.
  • Infosys posts 6% rise in Q2 net profit at ₹4,019 crore (QoQ); declares dividend at ₹8 per share.
  • Wipro Q2 profit climbs 36% YoY to ₹2,561 crores, revenue rose 4% YoY to ₹15,130 crores
  • Mindtree posts 35% YoY fall in Q2 profit at ₹135 crore, revenue grew 9% to ₹1,914 crore.
  • HUL Q2 profit jumps 21% YoY to ₹1,848 crore; announces ₹11 per share dividend.
  • Reliance Jio net profit rises 45% to ₹990 crore in Q2 FY20; subscriber base crosses 350 million.

 

WORLD INDICES
Indices 31-Oct 30-Sep % 1M 01-Jan % since Jan
BSE 40129 38667 3.78% 36255 10.69%
NSE 11877 11474 3.51% 10910 8.87%
DOW 27046 26917 0.48% 23327 15.94%
NASDAQ 8292 7999 3.66% 6635 24.97%
FTSE 7248 7408 -2.16% 6728 7.73%
Nikkei 22927 21756 5.38% 20015 14.55%
Hang Seng 26907 26092 3.12% 25846 4.11%
Straits Times 3230 3120 3.52% 3069 5.25%
Shanghai 2929 2905 0.82% 2494 17.45%
USD 70.95 70.87 0.11% 69.45 2.16%
Euro 79.21 77.17 2.64% 79.50 -0.38%
GBP 91.97 87.06 5.63% 88.40 4.04%
Yen/100INR 0.66 0.65 0.29% 0.63 3.45%
Gold 38490 36913 4.27% 31422 22.49%
Silver 46689 44119 5.83% 38786 20.38%
Crude Brent $ 59.65 60.78 -1.86% 53.50 11.50%
Crude Nymex $ 54.35 54.56 -0.38% 45.31 19.95%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
31-Oct 30066 15559 8450 32320 7878
30-Sep 29103 15540 7493 31135 7548
% 1M 3.31% 0.12% 12.76% 3.81% 4.38%
01-Jan 27392 14451 9182 30398 8882
% since Jan 9.76% 7.67% -7.98% 6.32% -11.30%

INDIAN TRADE(USD MILLION)
 Exports 26030
 Imports 36890
 FDI 1824
 Government Bond 10Y 6.43%
 GDP YoY 5.00%
 Inflation Rate 3.99%
 Forex Reserves $ M 440750
 IIP % (3.70%)
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
 Equity 12667 3272
 Debt 3999 32479
 Total 1 M 16666 35750
 Total Since Jan 92005 497978
 Equity 58262 52493
 Debt 33743 445484

 

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