September 5, 2017 by BizWhiz Admin in Economy Snapshot 0 comments 1609

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

After touching the peak, Indian markets fell last month by 2%. Banks lost about 3%, Auto by 3% and Pharma by 6%. FII’s were net sellers in the equity market to the extent of Rs.13,000 crores while domestic institutions were net buyers in the equity market to the extent of Rs.14,000 crores. US, UK markets went up. In Asia, Hong Kong and China went up but Tokyo and Singapore lost out. Indian Rupee came below the Rs.64 mark and currently at Rs.63.90 against 1 US Dollar. Gold went up by 4% while Silver went up by 3% after the tensions between US and North Korea intensified with war of words. Crude remained at the same levels. The havoc created by Harvey in Texas is the worst ever in US and has crippled life in Houston. In India, the board room battle in Infosys hit all time high with Vishal Sikka resigning from the CEO position. While Infosys lost heavily, the return of Nandan as the Chairman of Infosys is taken well by the market and the share price of Infosys recovered quite well.

Mr Venkiah Naidu became the Vice President of India and the Prime Minister is likely to carry out changes in the Ministry with Nitish Kumar’s representatives likely to join the Government.

The Market has not fallen significantly and currently at 9,900 levels. September will see whether the market goes up further or go in the negative territory!

Happy reading!

Regards
V Murali

General News

 

Business News

  • NDA nominee M. Venkaiah Naidu elected as the new Vice President of India.
  • India celebrated its 71st Independence Day.
  • Gujarat RS polls: Ahmed Patel clinches fifth Rajya Sabha term after EC invalidates two votes cast by
    rebel Congress MLAs; BJP’s Amit Shah, Smriti Irani win comfortably.
  • Mamata Bannerjee, Akhilesh, Sharad Yadav attend Lalu Prasad Yadav’s mega ‘BJP bhagao, Desh
    bachao’ rally; Sonia and Rahul Gandhi skip the rally.
  • Sharad Yadav removed as leader of JD(U) in Rajya Sabha after he signalled separation.
  • Rahul Gandhi, top opposition leaders attend Sajha virasat bachao conclave led by JD(U) leader Sharad
    Yadav.
  • 2 AIADMK factions merge; O Panneerselvam made coordinator of the party and named Deputy Chief
    Minister and gets finance ministry.
  • Gorakhpur hospital tragedy: UP CM Adityanath orders criminal action against hospital, gas firm.
  • Railway Minister Suresh Prabhu offered to quit after back to-back train derailments of Utkal Express
    and Kafiyat Express.
  • Railway Board chairman AK Mital resigns; present Air India CMD Ashwani Lohani named as Chairman.
  • Pakistan violates ceasefire, drawing retaliation from the Indian Army.
  • Rahul Gandhi launches the Karnataka govt’s subsidised food canteens ‘Indira Canteen’.
  • Maratha group held biggest silent march in Mumbai to press reservation demand.
  • Rajya Sabha bid adieu to 3 retiring members –Sitaram Yechury-CPI(M), D Bandyopadhyay-TMC and
    Dilip Pandya-BJP.
  • Supreme Court invalidates triple talaq practice, calls it unconstitutional.
  • Right to Privacy is a fundamental right, it is intrinsic to right to life: Supreme Court.
  • Govt makes Aadhaar number mandatory for the registration of death from October 1.
  • Devastating floods claim over 700 lives in Bihar, Assam, West Bengal, and Uttar Pradesh.
  • PM Modi announces Rs 2,350 crores for floods in north eastern states, Rs 500 crores for Bihar.
  • Trinamool Congress sweeps civic polls in West Bengal while BJP dominates in MP civic polls:
  • India, China agree to disengage troops in Dokalam after 2 months standoff.
  • Heavy rains brought Mumbai to its knees.
  • Nepalese PM Sher Bahadur Deuba arrives on four-day India visit.
  • Justice Dipak Misra sworn in as the 45th Chief Justice of India.
  • Govt merges 3-decade old National Crime Records Bureau with Bureau of Police Research and
    Development.
  • Supreme Court grants bail to Lt. Col. Shrikant Purohit in 2008 Malegaon case.
  • CBI court sentences Dera Chief Gurmeet Ram Rahim Singh to 20 years in jail.
  • CBI questions Karti Chidambaram twice in INX Media corruption case.
  • North Korea threatens missile strike near US territory Guam.
  • UN Security Council unanimously adopts tougher sanctions on North Korea.
  • Trump announces new Afghan policy; takes tough line on Pakistan as terrorist safe haven.
  • Barcelona van attack: At least a dozen dead and scores injured; ISIS claims responsibility.
  • Cabinet of new Pakistan Prime Minister Shahid Khaqan Abbasi sworn in.
  • Qatar restores diplomatic ties with Iran amid regional crisis.
  • Harvey, the costliest natural disaster in US history kills 38, leaves tens of thousands homeless.
  • India wrap the test series against Sri Lanka 3-0 and leads the 5 ODI series against Sri Lanka 4-0.
  • Kerala High Court lifts BCCI’s lifetime-ban on Sreesanth.
  • Australia cricket pay war ends with players and management agreeing on a new in-principle deal.
  • PV Sindhu settles for silver at the World Badminton Championship.
  • Germany’s Alexander Zverev beats Roger Federer to win Rogers Cup final.
  • Usain Bolt beaten in his last ever solo 100m race; collapses in final race of world 4x100m.

Business News

  • GST collection for first month at Rs 92,283 crore, exceeds estimates: FM Arun Jaitley.
  • 89 million of Rs 1,000 notes did not return to the system: RBI’s Annual Report.
  • Finance Minister Arun Jaitley announces new ETF Bharat-22.
  • Deadline for linking Income Tax, PAN with Aadhaar extended till December 31.
  • Govt notifies e-way bill, exempts vegetables, fruits out of its ambit.
  • Govt extends tax exemption for industry in North Eastern, hilly states under GST regime.
  • RBI cuts the repo and reverse rate by 25 basis points each to 6% and 5.75% respectively.
  • RBI to pay Rs 30,659 crores as dividend to govt in 2016-17, less than half of the dividend transferred an
    year ago.
  • SBI slashes its interest rate on savings account deposits; 11 more banks follow suit.
  • Cabinet gives in-principle nod for public sector banks merger.
  • Regional rural banks’ merger gets exemption from seeking approval from CCI.
  • PSU banks take recovery action against 5,954 wilful defaulters.
  • Govt orders shuttering of 1.
  • 75 lakh shell companies found to be funnelling black money.

  • FPIs pull out a massive $2 billion from equity markets in August.
  • India’s forex reserves surge to record $392.86 billion.
  • Vishal Sikka resigns as Infosys MD and CEO, takes up the role of Executive Vice-Chairman briefly before
    he resigned from the Board; COO, U.B. Pravin Rao appointed the interim CEO.
  • Nandan Nilekani back at Infosys, named as Chairman of Board.
  • R Seshasayee resigns as Chairman; Prof Jeffrey Lehman and Prof John Echtemendy exit board.
  • Aadhaar not mandatory for insurance: IRDAI.
  • Tata Group draws up restructuring plan, hires bankers to sell or merge misfiring businesses.
  • Infosys announces Rs 13,000 crore share buyback offer.
  • US law firms initiate investigation against Infosys over violation of federal securities laws.
  • HCL Infosystems in pact to distribute Apple products in India.
  • Google reveals Android Oreo, the newest version of its mobile operating system.
  • NCLT overrules DoT objections on RCom-Aircel merger.
  • Cabinet approves hike in GST cess on luxury cars, SUVs to 25% from 15%.
  • Bajaj Auto ties up with UK’s Triumph Motorcycles to make mid-capacity motorcycles.
  • Energy Efficiency Service Ltd (EESL) to procure 10,000 electric cars for various ministries.
  • PSA finalises purchase of Opel/Vauxhall from General Motors.
  • India becomes largest 2-wheeler market for Honda globally, dethrones Indonesia.
  • Maruti continues to lead PV segment, 7 models in top 10 list.
  • DGCA implements 1-year notice period rule for pilots.
  • L&T gets Rs 1050 crore contract for rail tracks electrification.
  • SC gives nod to GMR for commercial use of Delhi airport land.
  • 23 states, UTs set up real estate regulatory as deadline ends.
  • Sahara’s Aamby Valley auction process begins at Rs 37,000 crore reserve price.
  • Consignments of American crude oil leaves the US shores; to reach Paradip in September.
  • Indian Oil, Odisha govt find middle ground on Paradip Refinery tax dispute.
  • ONGC board approves Hindustan Petroleum corp takeover.

  • Tata Sons to scrap all business dealings with Shapoorji Pallonji group.
  • Tata Power launches electric vehicle charging facility.
  • Adani’s Australia Carmichael coal project to begin operations next month.
  • US law firm files class action lawsuit against Dr Reddy’s for misleading statements.
  • India surpasses China on Retail Development Index in H1 FY2017.
  • Central Railway records 25% jump in fines imposed on pantry cars.
  • Govt bans export of gold items above 22-carat purity.
  • China implements new UN sanctions; suspends North Korean iron, seafood imports.
  • Flipkart completes merger with eBay India.
  • McDonald’s terminates franchise agreement with Connaught Plaza Restaurants Pvt. Ltd (CPRL) for 169
    outlets.
  • Johnson & Johnson ordered to pay $417 million in trial over talc cancer risks.
  • Airtel Payments bank ties up with HPCL and IDFC Bank with Zeta for digital payments solution.
  • Uber in pact with Axis, HDFC Bank for UPI-based payments.
  • Startup ecosystem under scanner as SEBI sends notice to Angel networks.
  • Samsung scion Lee Jae-Yong sentenced to 5 years in prison for bribery and other charges.
  • Niti Aayog Vice-Chairman Arvind Panagariya resigns.
  • Voltas appoints Noel Tata as chairman from September.

 

Q1 Results

  • SBI’s consolidated net profit came at Rs 3,032 crores, NII at Rs 19,323 crores; Net NPA rose to 5.97%.
  • IDBI Bank reported a net loss of Rs 853 crores, NII dropped 18% at Rs 1,402 crores, GNPAs came in at
    Rs 50,173 crores.
  • Bank of Baroda Q1 profit tanks 52% to Rs 203.4 crores; gross NPA spikes to 11.4%, slippages surges to
    Rs 5,200 crores.
  • Punjab National Bank’s Q1 net profit increase 12.09% to Rs. 343.40 crores, NII rise 4% to
    Rs 3,855.1 crores.
  • Bank of India’s Q1 profit comes at Rs 87.7 crores, NII fell 8.7% YoY to Rs 2,533 crores.
  • Cognizant’s revenue came at $3.67 billion, net income stood at $470 million.
  • IOC’s Q1 net profit came at Rs 4,548.51 crores, revenue soared to Rs 129,418.11 crores.
  • HPCL reports 49.2% YoY decline in its Q1 net profit at Rs 925 crores, revenue up 2% to
    Rs 59,975 crores.
  • Tata Motors Q1 consolidated profit up 42% to Rs 3,200 crores on JLR one-time gain, standalone loss
    stood at Rs 467 crores.
  • TVS Motor Q1 profit rises 6.8% YoY to Rs 129.5 crores; revenue up 19% to Rs 3,743 crores.
  • M&M Q1 profit fell by 20.1% YoY to Rs 768.3 crores.
  • Tata Power’s Q1 net profit increased 68% YoY to Rs 221 crores, revenues grew 2% to Rs 6,969 crores.
  • BHEL’s Q1 profit up 3.9% at Rs 81 crores; EBITDA loss came at Rs 88.3 crores.
  • Lupin Q1 net profit drops 59.4% to Rs 358 crores, revenues drop 13.4% to Rs 3,869 crores.
  • Sun Pharma posts Q1 loss at Rs 425 crores, revenue from operations fell 24.8% to Rs 6,209 crores.
  • Dabur reports 10% YoY drop in its Q1 net profit at Rs 265 crores, revenue down 8.3% at
    Rs 1,790 crores.
  • Britannia’s consolidated profit comes at Rs 216 crores, revenue at Rs 2,339.81 crores.
WORLD INDICES
Indices 31-Aug 31-Jul % 1M 02- Jan % since Jan
BSE 31730 32515 -2.41% 26,595 19.31%
NSE 9918 10077 -1.58% 8,180 21.25%
DOW 21948 21891 0.26% 19,763 11.06%
NASDAQ 6429 6348 1.27% 5,383 19.42%
FTSE 7431 7372 0.80% 7,143 4.03%
Nikkei 19646 19925 -1.40% 19,114 2.78%
Hang Seng 27970 27324 2.37% 22,001 27.13%
Straits Times 3277 3330 -1.57% 2,881 13.76%
Shanghai 3361 3273 2.68% 3,104 8.29%
USD 63.90 64.18 -0.44% 68.22 -6.33%
Euro 73.10 75.91 -3.70% 71.32 2.49%
GBP 82.72 84.79 -2.44% 83.70 -1.17%
Yen/100INR 0.58 0.58 -0.34% 0.58 -0.12%
Gold 29745 28557 4.16% 27,570 7.89%
Silver 39798 38645 2.98% 39,136 1.69%
Crude Brent $ 52.73 52.77 -0.08% 57.16 -7.75%
Crude Nymex $ 46.96 50.25 -6.55% 54.05 -13.12%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
31-Aug 24318 10558 10613 25835 8860
31-Jul 25104 10756 11003 25744 9476
% 1M 3.13% -1.84% -3.55% 0.35% -6.51%
02-Jan 17970 10367 9327 20710 10310
% since Jan 35.33% 1.84% 13.78% 24.74% -14.07%

INDIAN TRADE( USD MILLION)
Exports 22544
Imports 33994
FDI 2544
Government Bond 10Y 6.49%
GDP YoY 5.70%
Inflation Rate 2.36%
Forex Reserves $ M 393400
IIP % -4.10%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
Equity -13076 14277
Debt 14783 30579
Total 1 M 1707 44855
Total Since Jan 168378 328000
Equity 43841 65519
Debt 124537 262481

Crude Oil Brent, Economy / Market Snapshot -August 2017

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