September 3, 2018 by BizWhiz Admin in Economy Snapshot 0 comments 1786

Dear Colleagues

I am pleased to attach the Economy / Market Snapshot covering all the major events in August, 2018.

Indian markets are at peak with gains of 3% last month. Sensex crossed the 38,000 mark. All the sectoral indices went up without any exception with Pharma gaining about 13%, IT by 8%, FMCG by 6% and Bank Nifty by 1%. FII’s came back to the market and bought Rs.900 crores in the equity market and Rs.2,700 crores in the debt market. Indian Mutual funds invested Rs.3,800 crores in the equity market and Rs. 26,000 crores in the Debt market. US Markets continue to scale to another peak with Nasdaq crossing the 8,000 mark and the DOW set to cross the 26,000 mark. UK, Hong Kong and China lost 2% to 5% last month. Indian Rupee crossed the Rs.71 mark but settled at Rs.70.99 to 1 US $. Gold gained by 1% while Silver lost about 4%. Crude went up by 5% last month with the Diesel prices in India touching an all-time high!

We lost tall leaders like Atalji Vajpayee and Kalaignar Karunanidhi last month; May their soul rest in peace. Trump’s domination continues with utmost pressure on China. Despite a testimony by Cohen against Trump, the US markets are going up without any break. India has done extremely well in the Asian Games 2018 in Jakarta and Palembang in Indonesia. As of 31st August, 2018, India had won 13 Gold Medals, 23 Silver Medals and 29 Bronze Medals and is on 8th position. China with 122 Gold Medals, 86 Silver Medals and 62 Bronze Medals dominated the Games with its supremacy. Happy reading!…….

Regards
V Murali

General News

  • Former Prime Minister of India, Atal Bihari Vajpayee dies at 93.
  • DMK Chief and former Tamil Nadu CM M Karunanidhi dies at the age of 94. Madras HC allows burial
    site for Karunanidhi at Marina beach after TN govt rejects request.
  • President Kovind gives assent to the Criminal Law (Amendment) Act and to Bill deterring economic
    offenders to flee the country.
  • Cabinet approves provision of bail in instant triple talaq bill.
  • Monsoon session: A total of 20 bills, including six financial bills, were passed in session this year.
  • NDA candidate Harivansh Narayan Singh (JDU) elected as the deputy Chairperson of the Rajya Sabha.
  • Indian will take national flag to space on board ‘Gaganyaan’ by 2022: PM in Independence Day speech.
  • PM Modi attends the BIMSTEC Summit in Nepal.
  • Sushma Swaraj was on 3-nations visit to Kazakhstan, Kyrgyzstan, and Uzbekistan; embarks on four-day
    visit to Vietnam, Cambodia.
  • Nirmala Sitharaman holds delegation level talks with Japan Defence Minister Itsunori Onodera.
  • India, China agree to draft new defence MoU, better military communication to avoid standoffs.
  • Kerala floods: Centre releases ₹ 600 crores, CM seeks ₹2,600 crore special package; death toll at 445.
  • UAE denies Rs 700 crore offer, BJP and Left trade charges.
  • SC asks Tamil Nadu to keep Mullaperiyar dam water level at 139 ft till Aug 31 in view of Kerala floods.
  • Karnataka floods: CM seeks ₹2000 crore assistance from Centre as 12 killed and over 5,000 displaced.
  • MK Stalin elected DMK President unopposed at the party’s general council meeting held in Chennai.
  • People not on the Assam NRC draft list can vote if they are on electoral rolls: EC.
  • Article 35A: SC adjourns hearing to January 2019 as Centre, Jammu & Kashmir warn of unrest.
  • CM Arvind Kejriwal, deputy Manish Sisodia, 11 AAP legislators charged for assault on Chief Secretary.
  • Violence hits parts of Maharashtra on anniversary of Maratha quota agitation.
  • Uttar Pradesh govt sanctions ₹150 crores for developing pilgrim centres.
  • Haryana gets first civil airport at Hisar as Independence Day gift.
  • Somnath Chatterjee, former Lok Sabha Speaker, dies at the age of 89. Former Rajya Sabha MP
    Nandamuri Harikrishna, dies in a road accident in Telangana’s Nalgonda.
  • Aadhar challenge: Hackers deposit ₹1 in TRAI chairman R S Sharma’s bank account.
  • UIDAI makes face recognition feature mandatory for Aadhaar authentication.
  • Rahul Gandhi forms 6-member task force to ‘expose’ Rafale deal ahead of 2019 general elections.
  • Rafale deal row: Anil Ambani files ₹5,000 crore defamation case against National Herald.
  • No income generated from Young Indian-National Herald transaction: Sonia Gandhi to HC.
  • Govt clears elevation of Justice KM Joseph to SC.
  • 5 rights activists arrested for alleged maoist links to be kept under house arrest till next hearing: SC
  • India formally hands over extradition request to authorities in Antigua and Barbuda for Mehul Choksi.
  • CBI sends extradition request for Nirav Modi after UK confirms his presence.
  • Vijay Mallya extradition case: CBI submits video footage of Mumbai’s Arthur Road jail to UK court.
  • Defence Acquisition Council approves procurement of defence platforms worth ₹46,000 crores, gives
    approval for buying 111 Helicopters for Navy at ₹21,000 crores.
  • Govt sets up two task force for making aircraft, Unmanned Aerial Vehicles.
  • Centre spends over ₹72.7 crore for indigenous defence products in 2017-18.
  • NASA’s Parker Solar Probe blasts off on epic journey to ‘Touch the Sun’.
  • Sunita Williams among 9 astronauts named by NASA for its first human spaceflight.
  • US Congress passes bill to slash Pakistan’s defence aid to $150 million.
  • US waives sanctions against India for buying Russian arms.
  • NAFTA: Trump announces US-Mexico trade deal; US and Canada aim to finalise trilateral deal.
  • Donald Trump cancels Mike Pompeo’s North Korea trip, citing lack of progress.
  • John McCain, US Senator and former Presidential candidate, dies at 81.
  • Imran Khan sworn in as Pakistan’s 22nd Prime Minister.
  • Scott Morrison replaces Malcolm Turnbull as Australia’s new Prime Minister.
  • Emmerson Mnangagwa former ally of Mugabe narrowly wins Zimbabwe Presidential poll.
  • Kofi Annan, former Secretary-General of the UN, dies at 80.
  • Italy bridge collapse: Genoa death toll rises to 43, govt declares year-long state of emergency.
  • Asian Games 2018: India at 8th position with a total of 65 medals — 13 gold, 23 silver and 29 bronze.
  • India vs England: India trails the 5-Test match series 2-1.
  • SC modifies ‘one state, one vote’ policy of BCCI; approves cricket board draft constitution.
  • Former Indian cricket team captain and coach Ajit Wadekar dies aged 77.
  • Cincinnati Open: Djokovic beats 7-time winner Federer; Kiki Bertens stuns Simona Halep to win title.

 

Business News

  • 29th GST Meet: Council forms Group of Ministers headed by MoS Finance to look into MSME issues;
    cashback incentives for digital payments to be rolled out on a pilot basis.
  • Parliament passes Insolvency & Bankruptcy Code (Second Amendment) Bill,2018.
  • Govt, EESL, World Bank sign $300 million pact to boost energy efficiency programme in India.
  • Centre approves Digilocker; soft copies of Driving license, Registration now legal.
  • Govt earmarks ₹1,000 crores for MSME sector in Northeast.
  • Cabinet approves 2% hike in DA for central govt employees.
  • RBI raises repo rate by 25 bps to 6.5%, reverse repo rate rises to 6.25%, holds neutral stance.
  • Fed leaves interest rate unchanged, says economy growing at strong pace.
  • RBI unveils UPI 2.0 version, allow customers to use overdraft limit for making payments to merchants.
  • Processing of old 500, 1000 rupees notes complete, 99.3% notes returned: RBI Annual report.
  • Rupee breaches 71/$ mark for the first time ever from rising crude oil price.
  • Oil rises on Iran sanctions, lower US fuel inventories.
  • NCLAT declines stay on Tata Sons’ conversion to pvt co; says Cyrus Mistry can’t be forced to sell stake.
  • Cabinet approves purchase of 51% stake in IDBI by LIC.
  • No ATM to be replenished with cash after 9 pm from next year: Home Ministry.
  • NSE unveils new logo to mark its entry into 25th year of existence.
  • BSE market cap hits record high as Sensex scales new peak; RIL hits market cap of ₹8 lakh crores.
  • HDFC AMC, CreditAccess Grameen, Amaravati Bonds 2018 listed in the exchanges.
  • China dethroned by Japan as world’s second-biggest stock market amid trade war with US.
  • PNB case: Govt sacks ex MD Usha Ananthasubramanian, allows prosecution; granted bail by CBI Court.
  • RBI cancels licences of 368 NBFCs in first half of 2018.
  • Bad loans of listed domestic banks dipped by ₹220 billion in Q1.
  • Bharti AXA, Airtel Payments Bank team up to offer Pradhan Mantri Jeevan Jyoti Bima Yojana.
  • Infosys opens new technology and innovation hub in North Carolina, hires 4,700 in the US.
  • Tech Mahindra inks pact with Telangana for ‘Blockchain district’.
  • DoT blacklists bank guarantees issued by Standard Chartered Bank.
  • RComm and Ericsson reach $80 million settlement.
  • RComm sells media convergence nodes for ₹2,000 crores and fiber assets for ₹3,000 crores to RJio.
  • Australia bans China’s Huawei, ZTE from mobile network build over security fears.
  • Ashok Leyland bags tender for defence tracked combat vehicles; makes foray into niche segment.
  • Tesla to remain public, Elon Musk says, ending go-private effort.
  • Passenger vehicle sales dip 2.71% to 2,90,960 units in July, car sales decline marginally: SIAM.
  • Air India board meets; to receive ₹980 crore capital from govt for interest payments on NCDs.
  • Jet Airways gets $300 million as lease incentives & debt from banks.
  • SpiceJet flies India’s first biofuel flight, from Dehradun to Delhi.
  • L&T Board approves share buyback of ₹ 9,000 crore at ₹1,500 apiece.
  • RIL wins arbitration case against govt’s claim of illegal gas production; govt to move HC.
  • Adani wins gas licences for 21 cities; BPCL bags 11 cities.
  • Govt allows pet coke import for use as feedstock in cement & gasification industries.
  • Saudi Arabia calls off both the domestic and international stock listing of state oil giant Aramco.
  • CCI gives nod to Adani Wilmar’s acquisition of Ruchi Soya.
  • PVR completes acquisition of 71.6% stake of South India based SPI Cinemas.
  • Samsung partners with PVR to launch India’s first Onyx Cinema LED theatre.
  • US tariffs on $16 billion worth of Chinese imports took effect, Beijing retaliates.
  • Russian ruble drops to 21-month low as US imposes fresh sanctions on Moscow.
  • Turkish lira hits new lows; govt drafts economic action plan; Qatar, Turkey ink currency swap deal.
  • Saudi Arabia freezes Canada trade ties for urging activists’ release.
  • Greece exits bailout programme after eight years.
  • IKEA opens its first in India with a 4 lakh sqft showroom in Hyderabad.
  • Walmart completes acquisition of Flipkart, pumps in $2 billion.
  • Warren Buffett’s Berkshire Hathaway picks up ₹2,500 crore stake in Paytm.
  • Ola launches its UK operations with ride-sharing offerings in South Wales, Greater Manchester.
  • WhatsApp limits ‘forwards’ to 5 users to contain rumours; rejects India’s demand for message traceability.
  • Exports rise 14% to $25.77 billion in July, trade deficit soared to a near 5 year high of $18.02 billion.
  • Indian smartphone market grows 20% in Q2 2018, Xiaomi leads tally: International Data Corporation.
  • Kumar Mangalam Birla, Y.C. Deveshwar appointed non-official directors in Air India.
  • Govt appoints S Gurumurthy, Satish Marathe as part-time directors on RBI board.
  • PNB MD Sunil Mehta becomes Indian Banking Association Chairman.
  • Chanda Kochhar back on ICICI Securities’ board after Bank votes in her favour.
  • Rana Kapoor to serve as Yes Bank MD & CEO till further notice from RBI.
  • Cabinet approves appointment of RS Sharma as TRAI Chairman till September 2020.
  • Indra K. Nooyi to end tenure as PepsiCo CEO; President Ramon Laguarta to take over.
  • Infosys CFO MD Ranganatha resigns to pursue professional aspirations.
  • Anil Ambani resigns as Director of Reliance Naval and Engineering.

 

Q1 Results

  • SBI reports loss of ₹4,875.85 crores in Q1 as provisions double to ₹19,228 crores.
  • IDBI bank reports Q1 net loss of ₹2,410 crores, provisions spiked over 157% to ₹5,236 crores.
  • PNB reports Q1 net loss of ₹940 crores, GNPA reduced to 18.26%, NNPA fell to 10.58%.
  • M&M Q1 profit grew 67% YoY to ₹1,257 crores, revenue rose 23% YoY to ₹13,551 crores.
  • Sun Pharma Q1 profit stood at ₹983 crores, revenues rose 16.7% YoY to ₹7,423.9 crores.
  • Lupin net profit slumps 43% to ₹202.8 crores in Q1, total income rose 3.6% to ₹4,040 crores.
  • IOC Q1 profit jumps 50% to ₹6,831 crores on inventory gains, revenue rose to ₹1,49,747 crores.
  • Coal India Q1 net profit surges 61% to ₹3,786 crores, revenue rose 17.96% to ₹24,260.87 crores.
  • Jet Airways posts Q1 loss at ₹1,323 crores, total revenue up 5.2% to ₹6,257 crores, fuel expense up 53%.
  • Britannia Q1 profit rises 19.4% YoY to ₹258.10 crores, revenue rises 12.4% to ₹2,544 crores.
WORLD INDICES
Indices 31-Aug 31-Jul % 1M 01-Jan % since Jan
BSE 38645 37607 2.76% 33813 14.29%
NSE 11681 11357 2.85% 10436 11.93%
DOW 25965 25415 2.16% 24719 5.04%
NASDAQ 8110 7672 5.71% 6903 17.47%
FTSE 7432 7749 -4.08% 7688 -3.32%
Nikkei 22865 22554 1.38% 22765 0.44%
Hang Seng 27889 28583 -2.43% 29919 -6.79%
Straits Times 3213 3320 -3.20% 3403 -5.57%
Shanghai 2725 2876 -5.25% 3307 -17.60%
USD 70.99 68.54 3.57% 63.68 11.49%
Euro 82.29 80.19 2.61% 76.48 7.60%
GBP 91.97 89.90 2.30% 86.06 6.87%
Yen/100INR 0.64 0.61 4.44% 0.56 13.22%
Gold 30129 29686 1.49% 29123 3.45%
Silver 36701 38340 -4.27% 39176 -6.32%
Crude Brent $ 77.42 73.86 4.82% 67.13 15.33%
Crude Nymex $ 69.80 68.35 2.12% 60.62 15.14%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
31-Aug 28062 15811 11009 32912 10391
31-Jul 27764 14588 10974 31007 9179
% 1M 1.07% 8.39% 0.32% 6.14% 13.20%
01-Jan 25318 11566 11891 26686 9618
% since Jan 10.84% 36.71% -7.41% 23.33% 8.03%

INDIAN TRADE( USD MILLION)
Exports 25770
Imports 43790
FDI 1168
Government Bond 10Y 7.95%
GDP YoY 8.20%
Inflation Rate 4.17%
Forex Reserves $ M 401290
IIP % 7.00%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
Equity (872) 3808
Debt (2707) 25991
Total 1 M (3578) 29799
Total Since Jan (-35532) 227600
Equity (2901) 73280
Debt (-38433) 154321

 

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