September 2, 2020 by BizWhiz Admin in Economy Snapshot 0 comments 1040
Dear Colleagues

I am pleased to attach the Economy / Market Snapshot covering all the major events in August, 2020.

Indian Markets gained 3% last month. Sensex touched the 38,000 mark and holding on to the levels. On the sectoral indices, Bank Nifty gained about 10%, Auto by 8% while IT, Pharma and FMCG lost around 1%. FII’s invested 40,200 crores in the equity market while Domestic Institutions sold about 6,800 crores in the equity market. Indian Rupee closed at Rs.73.61 for 1 US $.

On the Global markets front, DOW gained 7.50%, Nasdaq gained 9.50%, FTSE gained 1%, Nikkei gained 6.50%, Hang Seng gained 2.50% and Shanghai gained 2.50%. On the commodities side, Gold lost 4% while Silver went up by 3.50%. Brent Crude gained 6% and currently trading at $ 45 a barrel.

Indian market has recovered significantly and is currently down only 6% in this year. It was down almost 36% on 18th March, 2020. Inter State and Intra State movements have been allowed and more relaxations have been given. However the number of confirmed cases has been going up and with around 80,000, Indian has hit the world’s single day largest number of confirmed cases. Good part is the recovery rate has crossed 75% and the death rates are quite low. World markets were in the green zone last month. The announcement of the GDP numbers yesterday showing contraction of over 20% is a worrying metric. With the opening up, a number of agencies are predicting higher numbers for India in the next couple of months.

Let us hope that we are able to handle this difficult situation and bounce back!

Happy reading!……

Regards
V Murali

General News

  • India celebrated its 74th Independence Day.
  • PM Modi announces launch of National Digital Health Mission; all Indians to get Health IDs.
  • Global COVID-19 cases surpass 25.6 million-mark, recoveries cross 17.9 million.
  • India’s COVID tally crosses 36.9 lakh mark, 4,33,24,834 samples tested, recovery rate improves to 76.94%.
  • Govt announces guidelines for ‘Unlock 4’ to be in force till September 30 – no restrictions on inter-state
  • and intra-state movement of people and goods.
  • Metro rail will be allowed to operate with effect from 7th September 2020 in a graded manner.
  • Centre releases over ₹890 crore as second instalment of emergency COVID-19 package to 22 States/UTs.
  • Films and TV shoots allowed to resume all across the country, govt releases SOP.
  • PM inaugurates 2,300-km long submarine Optical Fibre Cable project connecting Chennai, Port Blair.
  • PM Modi performs Bhoomi Pujan for Ram Temple in Ayodhya; releases a commemorative postage stamp.
  • PM Modi holds telephonic conversation with Afghan President, discusses evolving security situation.
  • S Jaishankar, Mike Pompeo discuss efforts to combat COVID, peace process in Afghanistan.
  • Foreign secretary meets Harsh Vardhan Shringla Bangladesh PM amid rising Chinese influence.
  • Cabinet approves setting up of ‘National Recruitment Agency’ to conduct Common Eligibility Test.
  • India, China held Major General-level talks on border disengagement.
  • Defence ministry approves procurement of weapons and basic trainer aircraft worth ₹8,722 crore.
  • Two light combat helicopters developed by HAL deployed in Ladakh for high altitude IAF operations.
  • Rajnath Singh launches Naval Innovation and Indigenisation Organisation.
  • Chhattisgarh gets defence category industry to manufacture bulletproof jackets, helmets.
  • J&K Lt Governor Girish Murmu resigns; former Union Minister Manoj Sinha appointed new LG.
  • Former J&K LG Girish Chandra Murmu appointed as the Comptroller & Auditor General of India.
  • Satya Pal Malik appointed Meghalaya Governor; Maharashtra’s Koshyari gets additional charge of Goa.
  • Rakesh Asthana appointed Director General of Border Security Force.
  • Election Commissioner Ashok Lavasa resigns, set to join ADB as Vice President.
  • Former Finance Secretary Rajiv Kumar replaces Ashok Lavasa as Election Commissioner.
  • Sonia Gandhi to continue as Congress interim president until next All India Congress Committee session.
  • Rajasthan assembly session convenes; Chief Minister Ashok Gehlot wins trust vote.
  • Biren Singh-led BJP coalition in Manipur wins controversial trust vote, eight Congress MLAs abstain.
  • Bihar Floods: Around 78 lakh people affected, death toll mounts to 25.
  • Assam floods: Death toll reaches 113, over 56.9 lakh people affected in 30 districts.
  • AI Express flight from Dubai with 191 onboard crash-lands at Kozhikode; 19, including pilot dead.
  • Landslide after heavy rainfall in Idukki, Kerala kills 65.
  • Indore in Madhya Pradesh declared as the cleanest city in national Swachh Survekshan 2020 awards.
  • Chandrayaan-2 completes a year in lunar orbit, adequate fuel to last for 7 years: ISRO.
  • JEE-Main, NEET-UG exams to be held as per schedule in September.
  • Karnataka govt announces all colleges to start offline classes from October 1; online classes from Sept 1.
  • Supreme Court refuses to direct transfer of contributions made to PM CARES to NDRF.
  • SC gives equal inheritance right to daughters from 1956.
  • India, Pakistan should resolve dispute on two hydroelectric: World Bank on Indus Waters Treaty.
  • Former President of India, Pranab Mukherjee passed away at 84.
  • WHO team ends first round visit to China to probe COVID-19 origin.
  • Republicans nominate Donald Trump as presidential candidate and Mike Pence for Vice President.
  • Joe Biden nominated as Democratic presidential candidate; Kamala Harris accepts VP nomination.
  • Trump signs executive order against hiring H1B visa holders for federal contracts.
  • Donald Trump meets Iraq PM Mustafa al-Kadhemi, says US troops to exit ‘at some point’.
  • US State Secretary Pompeo starts his visit to Israel, Sudan, Bahrain, UAE.
  • Shinzo Abe resign as Japanese Prime Minister due to health concerns.
  • Russia starts production of Sputnik V, to be rolled out by end of August.
  • French President Macron meets German Chancellor Merkel; offers EU mediation in Belarus.
  • Israel agrees to halt further annexation of Palestine under ‘historic’ US-brokered deal with UAE.
  • Australia to manufacture ‘promising’ COVID-19 vaccine and give it free to citizens, says PM Scott Morrison.
  • North Korea’s Kim Jong Un in coma, sister declared de facto second-in-command.
  • Pakistan bans 88 new terrorists in bid to slip out of FATF’s grey list.
  • Mahinda Rajapaksa takes oath as Prime Minister of Sri Lanka for fourth time.
  • More than 170 dead and 4,000 wounded as massive explosion rocks Beirut port
  • UAE becomes first Arab nation to open a Nuclear Power plant with operations starting at Barakah plant.
  • Mali President steps down after being detained by mutinous troops; Military promises elections.
  • National Sports Awards 2020: 5 sportspersons named for Rajiv Gandhi Khel Ratna award and 27 athletes
  • for Arjuna Award.
  • ICC ODI rankings: Kohli, Rohit hold on to top two batting spots, Bumrah remains second among bowlers.
  • India to host 2021 World T20, Australia get 2022; Women’s ODI World Cup postponed to 2022.
  • Dream 11 replaces Vivo as IPL 2020 title sponsor, to pay BCCI ₹222 crore.
  • Emirates Cricket Board gets BCCI’s official clearance to host tournament.
  • England to host Australia for T20I, ODI series in September behind closed doors.
  • ‘Consider me retired’: MS Dhoni announces exit from international cricket; Suresh Raina follows.

 

Business News

  • PM Modi launches ‘Transparent Taxation – Honoring the Honest’ platform.
  • 41st GST Council: GST collection shortfall stands at ₹2.35 lakh crore due to COVID-19 impact.
  • Centre proposes 2 borrowing options before States to meet GST compensation shortfall.
  • NITI Aayog releases Export Preparedness Index 2020.
  • Govt operationalises ₹20,000 crore stressed fund for MSMEs; expected to benefit around 2 lakh MSMEs.
  • ₹10,300 crore approved for 101 stressed housing projects under SWAMIH.
  • PM Modi launches financing facility worth ₹1 lakh crore under Agricultural Infrastructure Fund.
  • Nitin Gadkari inaugurates 45 Highway projects of over ₹11,000 crore in Madhya Pradesh.
  • Textile ministry abolishes All India Handicrafts Board, All India Handloom Board and powerloom board.
  • Government launches online registration of gold hallmarking centers.
  • Kisan Rail: India’s first train to transport perishable commodities begins journey.
  • Railways suspends all regular passenger services indefinitely, 230 special trains will continue to run.
  • Private trains should have sliding doors, talk-back, coach surveillance, alarms: Railways draft specification.
  • Finance Ministry asks banks to refund charges collected on electronic transactions after 1st Jan 2020.
  • RBI leaves repo rate unchanged at 4% and reverse repo at 3.3%; maintains accommodative stance.
  • RBI to pay ₹57,128 crore dividend to centre for FY20; NABARD, RBI get ₹10,000 crore liquidity facility.
  • RBI raises LTV ratio for gold loans to 90% from 75%; extends loan restructuring facility to corporates.
  • Punjab National Bank recovers ₹24 crore by liquidating Nirav Modi’s US assets.
  • People’s Bank of China invests ₹15 crores in ICICI Bank through QIP.
  • ICICI Lombard signs definitive agreement to acquire non-life insurance business of Bharti AXA.
  • ₹1,000 fine per day if companies fail to redress investor complaints: SEBI.
  • MCX launches Bulldex, India’s first bullion index.
  • SBI Life, Divis Labs to replace Bharti Infratel, ZEE in Nifty50 effective September 25.
  • UK enters recession after GDP plunged by a record 20.4% in the second quarter.
  • Japan economy shrinks 27.8% in April-June, the worst contraction on record.
  • China, US hold trade talks, agree to push forward phase one economic deal.
  • Madras HC refuses to allow the reopening of Sterlite Copper smelting plant in Tamil Nadu’s Thoothukudi.
  • US expands sanctions, adds 38 affiliates of China’s Huawei to entity list.
  • Serum Institute signs deal with GAVI, Gates Foundation to deliver 100 million doses.
  • US inks $2.1 billion deal with Sanofi, GSK for COVID-19 vaccine; $1.5 billion deal with Moderna.
  • Lupin, Dr Reddy’s and MSN Labs launch COVID-19 drug Favipiravir in India.
  • China grants country’s first COVID-19 vaccine patent to CanSino Biologics.
  • US FDA-approved ointment found to treat, kill viral infections including COVID-19.
  • DGCA extends suspension of international flights till September 30.
  • Govt extends last date for receiving EoI in disinvestment case of Air India till Oct 30.
  • Cabinet clears proposal for leasing out Jaipur, Guwahati, Thiruvananthapuram airports through PPP.
  • Kerala Assembly passes unanimous resolution against leasing out Trivandrum airport.
  • Virgin Atlantic airline files for US bankruptcy protection.
  • IndiGo completes engine replacement exercise for 128 Pratt & Whitney-powered A320 neo aircraft.
  • Supreme Court allows registration of BS-IV vehicles bought before lockdown.
  • UK govt’s bailout talks for Jaguar Land Rover and Tata Steel fall through.
  • Eicher Motors and Volvo VECV acquire Volvo’s India bus business for ₹100 crore.
  • Abu Dhabi to merge oil services firms into $2.4-billion national champion.
  • Vodafone Idea pays ₹1,200 crore dues towards license and spectrum dues after initial delay.
  • Bharti Airtel signs pact with Amazon Web Services for cloud services.
  • Bharti Airtel becomes first operator to launch ‘Ultra-Fast 4G’ services in Andaman and Nicobar.
  • IBM collaborates with National Skill Development Corporation (NSDC) to offer free digital skills training.
  • US makes exception to visa ban, allows H-1B visa holders to return for same jobs they did before ban.
  • Trump signs executive order giving Chinese owner ByteDance 45 days to sell TikTok.
  • Walmart teams up with Microsoft in joint bid to acquire TikTok.
  • Oracle enters race to buy TikTok’s US operations.
  • IBM rolls out newest processor chip, taps Samsung for manufacturing.
  • Apple vendors, Samsung, propose ₹11 lakh crore mobile phone production in India.
  • Nokia phone maker HMD Global secures $230 million in new funding from Google, Qualcomm.
  • India blocks top Chinese apps Baidu, Weibo, to be taken off from app stores.
  • Reliance Retail buys Future Group’s retail, wholesale, logistics, warehousing business for ₹24,713 crore.
  • Amazon upgrades ‘Amazon Easy’ stores in India with touch-and-feel product experience, last-mile delivery.
  • Amazon forays into online pharmacy space with the launch of Amazon Pharmacy.
  • Flipkart partners with Sastodeal in Nepal to enable cross-border trade.
  • Paytm Money launches stock broking with free delivery trades, intraday trades at ₹10.
  • Paytm ties up with StockHolding Corpoation for payment gateway services.
  • RBI Gives Nod For Sashidhar Jagdishan as Aditya Puri’s Successor at HDFC Bank.
  • Govt extends Ajay Tyagi’s term as SEBI chairman by 18 months till Feb 2022.
  • Ford names Jim Farley as new CEO, succeeding Jim Hackett.
  • TikTok CEO Kevin Mayer resigns amid ongoing disputes with the Trump administration and sale talk.
  • ZEEL appoints Subhash Chandra as Chairman Emeritus, R Gopalan as Chairman of the Board.

 

Business News

  • PNB Q1 net profit plunges 70% to ₹308 crore; Total income up at ₹24,293 crore; NII stood at ₹6,749 crore.
  • Tata Motors Q1 loss widens to ₹8,444 crore; revenue declines 48% YoY to ₹31,983 crore.
  • M&M Q1 net profit plunges 97% YoY to ₹68 crore, revenue fell 56% YoY to ₹5,589 crore.
  • Ashok Leyland Q1 reports net loss of ₹389 crore, revenue dips 77% to ₹1,486 crore.
  • Vodafone Idea reports Q1 loss of ₹25,460 crore; revenue down 5% YoY to ₹10,659 crore.
  • Lupin Q1 net profit drops 65% to ₹107 crore, revenue stood at ₹3,528 crore.

 

WORLD INDICES
BSE 38628 37607 2.72% 41306 -6.48%
NSE 11388 11073 2.84% 12183 -6.53%
DOW 28430 26428 7.57% 28538 -0.38%
NASDAQ 11775 10745 9.59% 8973 31.24%
FTSE 5964 5898 1.12% 7542 -20.93%
Nikkei 23140 21710 6.59% 23657 -2.18%
Hang Seng 25177 24595 2.37% 28190 -10.69%
Straits Times 2533 2530 0.11% 3223 -21.42%
Shanghai 3396 3310 2.59% 3050 11.33%
USD 73.61 74.81 -1.60% 71.22 3.35%
Euro 88.30 88.12 0.21% 79.94 10.47%
GBP 98.73 97.89 0.85% 94.36 4.63%
Yen/100INR 0.70 0.71 -1.37% 0.66 6.35%
Gold 51701 53828 -3.95% 39067 32.34%
Silver 67318 64984 3.59% 46665 44.26%
Crude Brent $ 45.74 43.30 5.64% 66.29 -31.00%
Crude Nymex $ 43.01 40.27 6.80% 61.30 -29.84%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX  AUTO CNX FMCG CNX  PHARMA
31-Aug 23754 17929 7840 30595 11080
31-Jul 21640 18072 7280 30872 11149
% 1M 9.77% -0.79% 7.70% -0.90% -0.62%
01-Jan 32103 15722 8210 30234 8047
% since Jan -26.01% 14.04% -4.50% 1.19% 37.69%

INDIAN TRADE(USD MILLION)
Exports 23640
Imports 28470
FDI 2016
Government Bond 10Y 6.08%
GDP YoY (23.90%)
Inflation Rate 6.93%
Forex Reserves $ M 537548
IIP % 20.40%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs. crore) MF (Rs. crore)
Equity 40,204 (6,852)
Debt (2,932) 15,879
Total 1 M 37,272 9,027
Total Since Jan (76,622) 1,50,533
Equity 33,299 16,110
Debt (1,09,921) 1,34,423

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