I am pleased to attach the Economy / Market Snapshot covering all the major events in February, 2018.
After touching the peak in January, market fell in February; Indian markets fell by 5% last month. Long Term Capital Gain proposal in the budget was seen as a negative measure. Nirav Modi’s issues with Punjab National Bank and the Rotamac matter brought the bank index down by 8%. Pharma and Auto indices lost about 4%. FII’s sold about Rs.10,800 crores in the equity market while Domestic funds had pumped in Rs.13,200 crores. Indian Rupee climbed to at Rs.65.27 against 1 US Dollar. Global markets also fell last month with Hong Kong and China losing about 6%. Dow lost about 4%, Nasdaq lost about 2% and FTSE lost about 4%. Gold went up by 1%, while Silver lost about 3%. Crude was down by 5%. Results of the elections held in Meghalaya, Tripura and Nagaland are expected soon. Exit Polls suggest that BJP will gain in couple of these States. Financial year will come to a close in March and set the direction with the Annual financial results coming in April / May 2018. Considering the global situation, sentiments are not that positive for the market to go up. Let us watch!
- Assembly Elections: 67% voter turnouts recorded in Meghalaya and 75% in Nagaland.
- PM Modi conferred ‘Grand Collar of the State of Palestine’ by President Mahmoud Abbas on his first
visit to Palestine.
- PM Modi lays the foundation stone of a temple in Abu Dhabi during his visit to the UAE.
- India, UAE sign 5 agreements including a historic pact awarding a consortium of Indian oil companies a
10% stake in offshore oil concession.
- India, Oman sign 8 agreements as PM Modi meets Sultan of Oman.
- Canadian Prime Minister Justin Trudeau visits India; Six MoUs signed between Canada and India.
- India and Iran seal 9 agreements including a lease contract for Chabahar port operations.
- Sushma Swaraj holds bilateral talks with Saudi Arabia’s King Salman in Riyadh.
- Avani Chaturvedi becomes first woman fighter pilot to undertake solo flight in MiG-21.
- India successfully test fires ballistic missiles- Agni I,II, Prithvi II and Dhanush off Odisha coast.
- Sunjwan Army camp attack: 6 soldiers and 1 civilian killed by terrorists.
- Indian Army gives full freedom given to commanders to retaliate to Pakistan’s ceasefire violations
- Army Chief General Bipin Rawat, Foreign Secretary Vijay Gokhale and National Security Adviser Ajit
Doval visit Bhutan to discuss strategic issues.
- Arvind Kejriwal govt completes 3 years in Delhi.
- AAP MLAs Amanatullah Khan, Prakash Jarwal arrested over alleged assault of Delhi Chief Secretary.
- UP govt presented a ₹4.28 lakh crore budget, focuses on farmers & infrastructure development.
- Rajasthan budget: CM Raje announces a ₹8,000 crore farm loan waiver scheme.
- Gujarat presented a ₹1,83,666 crore budget, allocates ₹14,895 crores for Narmada, water resources.
- Kerala budget: FM Thomas Isaac raises tax slabs for liquor, ₹2,000 crore package for coastal areas.
- Karnataka budget: Focuses on water conservation projects; allocates ₹2500 crores for Bengaluru.
- AIADMK unveils 7-foot portrait of Jayalalithaa inside TN Assembly, DMK moves HC seeking its removal.
- PM Modi launches Tamil Nadu govt’s Amma scooter scheme on the occasion of Jayalalithaa’s 70th
- Kamal Haasan officially launches his new political party ‘Makkal Needhi Maiam’.
- SC directs Karnataka to release 177.25 tmcft Cauvery water to Tamil Nadu.
- PM Modi inaugurates new BJP headquarters at Deen Dayal Upadhyay Marg in Delhi.
- No understanding or electoral alliance with Congress: CPM draft political resolution.
- Ayodhya Case: SC adjourns final hearing till March 14, to seal with it as ‘Pure Land Dispute’.
- SC adopts roster system, CJI Dipak Misra to hear PILs.
- SC allows Centre to withdraw force from Darjeeling hills.
- Karti Chidambaram arrested by CBI at Chennai Airport in money laundering case.
- US makes H-1B visa approval tougher for 3rd-party worksites.
- 17 dead in Florida school after expelled student opened fire.
- US launches new air attacks against Taliban in Afghanistan, destroyed 24 Taliban posts in 96 hours.
- Maldives declares state of emergency, arrests 2 Supreme court judges and former President.
- Pakistan signs ordinance for action against terrorist organisations and its individuals.
- Pakistan approves Mandarin as one of its three official languages.
- Israeli PM Benjamin Netanyahu faces corruption charges, refuses to quit.
- Brexit trade deal worth £9 billion and 2,500 jobs signed by British PM Theresa May on China visit.
- UN Security Council unanimously demands a 30-day cease-fire across Syria as death toll climbs to 500.
- Jacob Zuma resigns as South Africa’s President, mired in corruption scandal.
- Ethiopia declares State of emergency after PM Hailemariam Desalegn resigns.
- Bangladesh court sentences ex-PM Khaleda Zia for 5 years in graft case.
- Nepal Prime Minister Sher Bahadur Deuba resigns, K P Sharma Oli becomes PM for second time.
- Legendary actor, Sridevi passes away at 54 after a cardiac arrest in Dubai.
- India vs South Africa: India wrapped up six-match ODI series 5-1, 3 match T20I series 2-1.
- Virat Kohli-led India presented with ICC Test Championship mace.
- ICC Rankings: Kohli takes top spot, crosses the 900-point mark concurrently in Tests and ODIs.
- Jasprit Bumrah grabs the joint-top position along with Afghanistan’s Rashid Khan.
- India beat Australia by 8 wickets to claim record 4th Under-19 Cricket World Cup title.
- Star signs 11 IPL sponsors, sells ₹500 crore worth of ad inventory.
- Odisha govt to sponsor Indian Hockey Teams for 5 years.
- Winter Olympics: N Korean leader’s sister and US Vice President Mike Pence attend the opening
ceremony while Ivanka Trump and N Korean General attend the closing ceremony.
- Indra Nooyi appointed ICC’s first independent female director.
- Union Budget 2018-19: Ayushman Bharat programme, a health insurance cover of Rs 5 lakh per family
benefitting 10 crore families introduced.
- Budget Highlights: LTCG exceeding ₹1 lakh to be taxed at the rate of 10%, Dividend Distribution Tax of
10% introduced in equity oriented mutual funds, Corporate tax of 25% extended to companies with
turnover up to ₹250 crores in FY17.
- Govt to merge the 3 public sector general insurance companies and list subsequently.
- RBI keeps repo rate unchanged at 6% in neutral policy stance, lowers GVA growth forecast to 6.6%.
- WPI inflation eases to 2.84 % in January from 3.58% in December 2017.
- Punjab National Bank detects ₹11,360 crore worth fraudulent transactions in Mumbai branch over
LoUs issued to jewellery designer Nirav Modi and Gitanjali Gems promoter Mehul Choksi.
- RBI sets up committee to check on NPA divergences and SWIFT-like frauds.
- CBI seals PNB’s Brady House branch in Mumbai; arrests retired PNB deputy manager, two others.
- ED attaches Nirav Modi group property worth ₹523 crores.
- CBI arrests Rotomac owner Vikram Kothari, son Rahul in ₹3,695 crore loan default case.
- Govt asks PSBs to report NPAs over ₹50 crore for possible fraud; gives 15-day deadline to take action.
- LIC buys additional 2.11% stake in Indiabulls Housing Finance, taking the total shareholding to 9.33%.
- Vijay Rupani inaugurates Air Odisha’s first flight under UDAN scheme.
- Emirates Group signs MoU with AP to boost aviation sector.
- Maharashtra govt inks ₹35,000 crore pact with a pilot to build 1st plane factory of India.
- Virgin group signs deal with Maharashtra to build Mumbai-Pune hyperloop by 2025.
- Not possible to manufacture BS VI vehicles before 2020: Automakers tell SC.
- Auto Expo 2018 sees 100 launches and 6 lakh visitors.
- Porsche, Audi and Volkswagen to develop joint electric car platform to save costs.
- Kia Motors installs framework for greenfield plant in AP, increases investment in India to $2 billion.
- Donald Trump criticises India for import tax on Harley-Davidson bikes, threatens ‘reciprocal tax’.
- Singapore-based BOC Aviation wins $90 million claim against Vijay Mallya’s Kingfisher Airlines.
- Venezuela becomes 1st country to launch its own digital currency ‘Petro’.
- India’s antitrust regulator imposed a fine of ₹136 crores on Google for unfair business practices.
- NASSCOM Indian IT outlook FY19: Export revenues to grow at 7-9%, domestic revenues at 10-12%.
- Infosys seeks ₹100 crores from Rajiv Bansal, alleges breach of trust and non-fulfilment of obligations.
- Apple and Cisco team up with Aon and Allianz for Cyber Security Insurance for the Enterprise.
- Microsoft partners with Chalkup to enhance classroom learning experiences across the globe.
- Xiaomi, Microsoft join hands to develop AI-Powered smartphones, speakers.
- Tech Mahindra sets up 5G lab in Bengaluru with Intel.
- IBM launches Bluewolf, a Salesforce consulting agency in India.
- Custom duty on mobiles increased from 15% to 20%.
- Samsung scion Jay Y. Lee walks free as South Korea court suspends jail term.
- Samsung, Qualcomm partner to produce mobile chipsets for 5G network service.
- Aircel to file for bankruptcy at NCLT, services hit in Tamil Nadu, customers line up to port number.
- M2M Mobile numbers in India will have 13 digits starting July 1, 2018: DoT.
- DoT unveils strategic plan for operational synergy of seven telecom PSUs.
- Australian official confirms no federal financing for Adani’s Carmichael rail line.
- Govt allows private companies to bid for coal mines for commercial production.
- GMR buys out Malaysia Airports’ stake in Hyderabad airport for ₹484 crores.
- Global ports operator DP World signs pact with J&K govt to develop trade infrastructure.
- Govt signs MoU with NBCC for construction of housing project for India Economic Services Officers.
- India’s first online radio station ‘Radio Umang’ launched.
- Global Investors’ Summit held in Assam gets ₹651.86 billion investment.
- UP attracts investments worth ₹4.28 lakh crores in UP investors’ Summit.
- ITC merges tobacco leaf, agri-business units.
- Assam govt, Ola sign MoU for river taxi service in Guwahati.
- WhatsApp gets National Payments Corporation of India nod to launch payments service in India.
- Alibaba invests $146 million in Indian online grocer BigBasket.
- SpaceX launches Falcon Heavy, world’s most powerful rocket, toward Mars.
- SBI reports Q3 net loss at ₹2,416 crores, NNPA stood at 5.61%.
- PNB reports 11% rise in Q3 profit at ₹230.11 crores; gross NPAs stood at 12.11%.
- Bank of Baroda Q3 profit slumps 56% to ₹112 crores, NPAs stood at ₹3,155 crores.
- Allahabad Bank posts Q3 loss ₹1,264 crores, provisions spike 169%; net NPA up at 7.7%.
- Bank Of India reports Q3 Net Loss at ₹2,341.2 crores, NII down 18.4% at ₹2,501 crores.
- BSE Q3 net profit increased by 11% to ₹58.67 crores, revenue increased by 45% to ₹125.70 crores.
- Cognizant reports a net loss of $18 million in Q4 on new US tax, revenue rose to 1.6%.
- Hexaware Q3 net profit slips 15% to ₹120.9 crores, revenue stood at ₹15.61 crores.
- Flipkart losses swell 68% to ₹8,771 crores in FY17.
- Bajaj Auto Q3 profit inches up 3% to ₹952.4 crores, EBIDTA rose 17% to ₹1,325 crores.
- Tata Motors reports Q3 net profit at ₹1,215 crores, revenue grew by 16% to ₹74,156 crores.
- Apollo Tyres reports 17% decline in Q3 profit at ₹245.29 crores, revenue stood at ₹4,096.44 crores.
- Sun Pharma Q3 profit falls 75% to ₹365.4 crores on tax cost; revenue slips 16% to ₹6,653.23 crores.
- Lupin Q3 profit tanks 65% to ₹222 crores, revenue fell 11.3% to ₹3,976.6 crores.
- Cipla reports 4.8% growth in Q3 profit at ₹403.5 crores, revenue grew by 7.3% to ₹3,913.8 crores.
- ACC Q4 profit rises 126% to ₹206 crores, revenue grew by 29.5% to ₹3,494.2 crores.
- BHEL Q3 profit jumps 64% to ₹153.19 crores, revenue grew 0.4% to ₹ 6,626.35 crores.
- HPCL Q3 net profit rises 12% to ₹1,950 crores, EBITDA rose to 8.7%.
- Tata Steel reports Q3 profit at ₹1,136 crores, revenue grew by 20.8% to ₹33,447 crores.
|Indices||28-Feb||31-Jan||% 1M||01-Jan||% since Jan|
|Crude Brent $||64.71||68.67||-5.77%||67.13||-3.60%|
|Crude Nymex $||61.71||64.79||-4.75%||60.62||1.80%|
|NIFTY SECTORAL INDICES|
|Sectors||BANK NIFTY||CNX IT||CNX AUTO||CNX FMCG||CNX PHARMA|
|% since Jan||-0.83%||10.75%||-6.17%||-0.65%||-6.84%|
|INDIAN TRADE( USD MILLION)|
|Government Bond 10Y||7.43%|
|Forex Reserves $ M||421720|
|INSTITUTIONAL TRADING ACTIVITY|
|Particulars||FII (Rs.crore)||MF (Rs.crore)|
|Total 1 M||(11798)||36223|
|Total Since Jan||10373||67800|