March 1, 2017 by BizWhiz Admin in Economy Snapshot 0 comments 1943

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

February is one the best months in the recent past for the markets across the World; Indian markets went up by 4% while US markets went up by 5%. Budget presented by the Finance Minister on 1st February created a positive impact on the market; All the sectors moved up except Auto sector. IT was the star performer with the IT index scaling up by 8% followed by Bank Index by 5%. FII’s were net buyers in the market with Rs.9,450 crores in the Equity market and Rs.5,800 crores in the Debit market; Indian Mutual Funds were neutral in the Equity market and net buyers of Rs.30,000 crores in the Debt Market. Gold, Silver and Crude prices moved up by about 2% to 3%. Indian Rupee is trading below the Rs.67 mark against the US Dollar.

RBI kept the rates steady while all eyes are on the US with the first ever budget by Donald Trump. While the Budget is the highlight in India, the verdict in the Jayalalitha’s case which sent her aide Sasikala to the Jail dashing her hopes to become Chief Minister is the closely followed event and the consequent turmoil in the Tamil Nadu politics. India sent record 104 satellites into the Orbit. Different phases of the elections are underway in various States and we will get to know the verdict of the people and the winning chances of BJP in the next 10 day’s time.

India won the cricket series against England and the one off test match against Bangladesh. But it faced one of the worst defeat in the 1st Test against Australia by scoring very poor scores in both the innings. The second test will be played in Bangalore and to be seen whether Virat Kohli and team can equalize the scores.

Happy reading!

Regards
V Murali

General News

  • Assembly Elections: Polling ends for Uttarakhand, Goa and UP (5 phases out of 7).
  • Akhilesh Yadav and Rahul Gandhi held joint rally; Priyanka Gandhi campaigned in Rae Bareli, while
    Sonia Gandhi reaches out to U.P. voters through letter.
  • O Paneer Selvam submitted his resignation to the Governor and V K Sasikala was set to become the
    Tamil Nadu CM.
  • OPS revolted against Sasikala and claimed he was forced to resign; Sasikala met the Governor claiming
    support in writing of all of 134 AIADMK legislators.
  • Governor delayed his decision till the SC delivers the DA case verdict; SC convicted Sasikala & 2 others.
  • Sasikala to serve 13 more months in jail, on failing to pay Rs 10 crore fine.
  • Sasikala’s pick Edappadi K.Palanisamy sworn in as the CM and proved his majority in the assembly.
    Opposition DMK moved HC against vote of confidence motion and the Speaker.
  • Madras HC to hear DMK’s petition challenging the validity of the trust vote in the assembly.
  • Shiv Sena won the BMC elections followed closely by BJP.
  • Vice President Hamid Ansari embarks on five-day visit to Rwanda, Uganda; India, Rwanda sign 3
    agreements to boost bilateral relations.
  • Thousands protested in US, Europe over Trump travel ban.
  • More than 100 start-ups urge President Trump to not issue any executive order on H-1B visas.
  • The killing of an Indian engineer in US in an apparent hate crime incident evoked outrage.
  • Last month oil spill incident along the Ennore coastline in Chennai escalated at an alarming pace,
    though the authorities initially downplayed the incident.
  • J&K govt issued an advisory asking people to stay away from encounter sites following Army Chief
    Bipin Rawat’s warning of tough action against stone-pelters.
  • J&K govt mandates austerity in weddings, official events; max 500 guests, ban on loudspeakers.
  • Irom Sharmila’s Peoples’ Resurgence and Justice Alliance (PRJA) party crowdfunds to raise money for
    fighting polls.
  • Arvind Kejriwal, AAP MP Bhagwant Mann donate to Irom Sharmila’s party in Manipur.
  • Telangana CM K Chandrasekhar Rao offered Rs 5 crore gold ornaments to Lord Venkateswara at
    Tirumala and gold moustache worth Rs 75000 to Veerabhadra Swamy Temple.
  • Fake Rs 2,000 notes worth Rs 96,000 seized along Indo-Bangla border in West Bengal.
  • Karnataka Assembly passed the Kambala bill to allow conduct of the popular buffalo racing sport.
  • ISRO scripted history by successfully launching 104 satellites in a single flight.
  • However, G. Madhavan Nair, the former chairman of ISRO, said it may cause space debris.
  • Supreme Court gets 5 more judges, taking the strength to 28 including the Chief Justice of India.
  • British delegation meet Indian officials, Mallya’s extradition process begins.
  • 2G Special court discharges all accused in Aircel Maxis deal cases lodged by CBI.
  • ED moves SC against special court’s order to discharge Maran brothers.
  • SC says audience need not stand when Anthem played in films.
  • Uphaar tragedy: SC orders 1 year in jail for Gopal Ansal and Sushil Ansal to stay out of jail because of his age.
  • Over 3% drugs in India substandard: Health Ministry survey.
  • India, China account for half the world’s pollution deaths in 2015: Study.
  • India slips to 143 in economic freedom index.
  • Mumbai India’s richest city with $820 billion; Delhi distant second with $450 billion.
  • Theresa May wins crucial vote in UK Parliament to trigger Brexit; faces delay in House of Lords.
  • Syrian President Bashar Assad accuses his French Francois Hollande of sponsoring terror in Syria.
  • Pakistan arrested Hafiz Saeed in larger interest of nation and claimed he posed a serious threat.
  • Kuwait suspended the issuance of visas for nationals of Syria, Iraq, Pakistan, Afghanistan and Iran.
  • Oscars 2017: Moonlight won the Best Picture; La La Land bagged the Oscar in 6 categories.
  • India beat England by 75 runs to win the series 2-1
  • India vs Bangladesh, Test only: India won by 208 runs, Kohli was adjudged as the player of the match.
  • Australia thrash India by 333 runs to end record winning streak in the 1st Test.
  • Kohli became the first batsman in Test history to score a double century in four consecutive series.
  • R Ashwin breaks Denis Lillee’s record to become the fastest bowler to scalp 250 Test wickets.
  • Pakistani cricketer Shahid Afridi announced international retirement.
  • Sachin Tendulkar adopted Donja village in Osmanabad (Maharashtra) under the Sansad Adarsh Gram
    Yojna

Business News

  • FM Arun Jaitley presented the Union Budget 2017 subsumed with rail budget.
  • Allocation to PM Mudra Yojana doubled to Rs 2.44 lakh crores.
  • National Highways allocation stepped up to Rs 64,000 crores.
  • Defence expenditure at Rs 2.74 lakh crores, excluding pensions.
  • Affordable housing given infrastructure status. Integrated public sector oil major to be created.
  • New law to confiscate assets of offenders who escape the country under consideration.
  • FIPB to be abolished; Caps political donations from one source to Rs 2000.
  • No transactions above Rs 3 lakh will be allowed in cash.
  • Start-ups can avail three-year tax holiday in its first seven years of existence.
  • Tax rate for small firms cut to 25% from 30%.
  • Jewellery purchase in cash above Rs. 2 Lakh to attract tax from April 1.
  • Govt removes restrictions as re-monetisation reaches the final stage.
  • RBI kept the rates unchanged; keeps repo rate steady at 6.25%; reverse repo and bank rate stand at
    5.75% and 6.75%.
  • National Pharmaceutical Pricing Authority slashed the stent prices by up to 85%.
  • Cabinet approves SBI merger with its 5 associate banks.
  • N. Chandrasekaran took charge as Tata Sons chairman.
  • Vikram Limaye named the new MD & CEO of NSE and Ajay Tyagi as SEBI chief.
  • Centre tells SC it plans to verify all mobile subscribers within a year.
  • Reliance Jio ends it free services on 31st March; launches Jio Prime Membership offer for Rs 99 and
    Rs 303 per month
  • Reliance Jio joins hands with Cisco to build largest all-IP services platform.
  • Airtel buys Telenor’s India operations in seven circles.
  • Tata Sons agrees to pay $1.17 billion to DoCoMo, withdraws case in HC.
  • TCS board approves Rs 16,000 crore buyback at Rs 2,850/share; Rajesh Gopinathan takes over as CEO.
  • Infosys Chairman R. Seshasayee clarifies the corporate governance lapses at the company raised by the
    co-founders.
  • Sony completes the first phase of TEN Sports Network acquisition.
  • NASSCOM delays the FY18 guidance.
  • Sony completes the first phase of TEN Sports Network acquisition.
  • NASSCOM delays the FY18 guidance.
  • Microsoft launches Project Sangam powered by LinkedIn and Made for India Skype Lite app.
  • Apple set to begin India manufacturing soon with iPhone SE.
  • Samsung Group chief Jay Y. Lee was arrested as South Korean corruption probe deepens.
  • Hindustan Motors sells Ambassador brand to Peugeot S.A; Peugeot likely to relaunch Ambassador
    with multiple variants.
  • Reliance Defence signs warship repair pact with US Navy.
  • Airbus signs MoU for setting up centre of excellence in Hyderabad.
  • Two-day Global Investor Summit, Momentum Jharkhand, secured investment commitments worth
    over ₹3 lakh crore, with 210 MoUs signed.
  • Remove India from patent violator list: Indian pharma body to US.
  • Pharma industry body proposes guidelines on data reliability to help improve quality systems.
  • Microsoft, Flipkart announce strategic cloud partnership.
  • Snapdeal laid off 600 and founders forego salary.
  • Indian economy to reach $5 trillion by 2025: Morgan Stanley.
  • GST adoption could raise India’s GDP to over 8%: IMF.
  • FDI inflow zooms 18% to $46 billion in 2016.
  • Telecom industry lost 20% revenue due to Reliance Jio giveaways: India Ratings and Research.

Q3 Results

  • SBI Q3 profit jumps 134% to Rs 2610 crores, NII up by 7.7% to Rs 14,754.54 crores with loan growth of 4.06% at Rs 14.47 lakh crores.
  • IDBI Bank Q3 loss widens to Rs 2255 crores, NII falls by 45.3% to Rs 850.4 crores and net NPA jumps
    to 9.61%.
  • PNB Q3 profit up 4-fold at Rs 207.2 crores, Net interest income fell 9.4% YoY to Rs 3,730.80 crores.
  • Bank of Baroda posts Q3 profit at Rs 252.67 crores, NII up by 15.85% to Rs 3,134.36 crores.
  • BSE reports 17% decline in net profit at Rs 63.73 Cr, while total income increases to Rs 174.72 Cr Dr
    Reddy’s Labs profit declines 16% YoY to Rs 492.3 crores, revenue slips 6.4% to Rs 3,723.2 crores due
    to weak global generics.
  • Divis Labs reports 8.73% rise in net profit Rs 268.32 Cr, income from operations rises to Rs 976.48 Cr
  • Abbott India Q3 net up 26.21% at Rs 85.56 Cr, income from operations also up to Rs 755.72 Cr
  • Cipla’s Q3 profit grew by 43.9% YoY to Rs 375 crores from Rs 260.6 crores, driven by strong
    operational performance.
  • Sun Pharma’s Q3 profit fell 4.7% YoY to Rs 1,472 crores, revenue increased 11.1% to Rs 7,912.6
    crores. Operating profit margin stood at 31%.
  • Jubilant Foodworks Q3 profit falls 31.9% to Rs 20 crores, revenue increases 3.9% to Rs 659 crores.
  • Tata Steel reports Q3 net income at Rs 232 crores, revenue grows by 14% to Rs 29,391.6 crores.
  • Hexaware’s Q4 profit grew by 9% to Rs 121.5 crores, rupee revenue up 4.1% to Rs 941 crores and
    dollar revenue by 2.7% to $138.9 million.
  • M&M posts 5.7% decline in its net profit at Rs 801 crores, total income up by 1.2% at Rs 10,587
    crores.
  • Tata Motors Q3 profit tanks 96% to Rs 112 crores, revenue declines 4.3% to Rs 68,541 crores.
  • Vedanta Q3 profit zooms 4.5 times to Rs 1,866 crores, revenue up 31% on consolidated basis to Rs
    19,320 crores.

Market News

  • Indian markets went up by 4%; All sectors went up except Auto; Global markets up
  • US markets on a bull run touching life time high
  • Indian Rupee below Rs.67 against US $; Currently at 66.69;
  • Gold, Silver and Crude up
  • FII’s net buyers in the equity market to the extent of Rs.9,450 crores;
WORLD INDICES
Indices 28-Feb 31-Jan % 1M 02- Jan % since
Jan
BSE 28,743 27656 3.93% 26,595 8.08%
NSE 8,880 8561 3.72% 8,180 8.56%
DOW 20,812 19864 4.77% 19,763 5.31%
NASDAQ 5,825 5615 3.75% 5,383 8.22%
FTSE 7,263 7099 2.31% 7,143 1.69%
Nikkei 19,119 19041 0.41% 19,114 0.02%
Hang Seng 23,741 23361 1.63% 22,001 7.91%
Straits Times 3,097 3047 1.63% 2,881 7.49%
Shanghai 3,242 3159 2.61% 3,104 4.45%
USD 66.69/td>

67.86 -1.72% 68.22 -2.24%
Euro 70.42 72.82 -3.30% 71.32 -1.26%
GBP 82.48 84.83 -2.77% 83.70 -1.46%
Yen/100INR 0.59 0.60 -1.92% 0.58 8 1.27%
Gold 29566 28942 2.16% 27,570 7.24%
Silver 43247 41911 3.19% 39,136 10.50%
Crude Brent $ 56.63 55.42 2.19% 57.16 -0.92%
Crude Nymex $ 54.11 52.71 2.66% 54.05 0.11%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
28-Feb 20607 10681 9655 22338 10585
31-Jan 19515 9849 9838 21833 10236
% 1M 5.60% 8.45% -1.86% 2.32% 3.41%
02-Jan 17970 10367 9327 20710 10310
% since Jan 14.68% 3.03% 3.51% 7.86% 2.67%

INDIAN TRADE( USD MILLION)
Exports 22115
Imports 31956
FDI 3081
Government Bond 10Y 6.93%
GDP YoY 7.00%
Inflation Rate 3.17%
Forex Reserves $ M 362730
IIP % -1.29%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
Equity 9451 -54
Debt 5777 29969
Total 1 M 15228 29915
Total Since Jan 10461 66254
Equity 8442 5180
Debt 2019 61074

Crude Oil Brent, Economy / Market Snapshot -FEB 2017

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