March 5, 2018 by BizWhiz Admin in Economy Snapshot 0 comments 1936

Dear Colleagues,
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!

Regards
V Murali

General News

  • 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
    along LoC.
  • 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
    birth anniversary.
  • 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.

Business News

  • 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.

Q3 Results

  • 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.
WORLD INDICES
Indices 28-Feb 31-Jan % 1M 01-Jan % since Jan
BSE 34184 35965 -4.95% 33813 1.10%
NSE 10493 11028 -4.85% 10436 0.55%
DOW 25029 26149 -4.28% 24719 1.25%
NASDAQ 7273 7411 -1.87% 6903 5.35%
FTSE 7232 7534 -4.00% 7688 -5.93%
Nikkei 22068 23098 -4.46% 22765 -3.06%
Hang Seng 30845 32887 -6.21% 29919 3.09%
Straits Times 3518 3534 -0.45% 3403 3.38%
Shanghai 3259 3481 -6.36% 3307 -1.44%
USD 65.27 63.58 2.66% 63.68 2.51%
Euro 79.62 78.99 0.80% 76.48 4.11%
GBP 89.79 90.30 -0.56% 86.06 4.34%
Yen/100INR 0.61 0.58 5.16% 0.56 8.25%
Gold 30365 30117 0.82% 29123 4.26%
Silver 38167 39319 -2.93% 39176 -2.58%
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
28-Feb 25107 12809 11157 26514 8960
31-Jan 27379 12986 11612 27127 9385
% 1M -8.30% -1.37% -3.92% -2.26% -4.52%
01-Jan 25318 11566 11891 26686 9618
% since Jan -0.83% 10.75% -6.17% -0.65% -6.84%

INDIAN TRADE( USD MILLION)
Exports 24384
Imports 40682
FDI 4323
Government Bond 10Y 7.43%
GDP YoY 7.20%
Inflation Rate 5.07%
Forex Reserves $ M 421720
IIP % 7.10%
INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs.crore) MF (Rs.crore)
Equity (10773) 13176
Debt (1025) 23047
Total 1 M (11798) 36223
Total Since Jan 10373 67800
Equity 3230 22167
Debt 7143 45634

Crude Oil Brent, Economy / Market Snapshot -February 2018

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