March 3, 2020 by BizWhiz Admin in Economy Snapshot 0 comments 949

Dear Colleagues

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

Indian Markets lost 6% last month with the Coronavirus spreading all over and creating panic on the global economy. Auto took the maximum brunt with a loss of 14% with the other sectors losing as high as 6%. FII’s invested 1,800 crores and Domestic Institutions had put in Rs.3,500 crores in the equity market. Indian Rupee closed at Rs.72.20 for 1 US $.

On the Global markets front, DOW lost 10%, FTSE lost 10%, Nikkei lost 9%, Nasdaq lost 6% and Shanghai lost 3%. On the commodities side, Gold went up by 1% while Silver lost 6%. Crude lost about 13% and currently trading at $ 50 a barrel.

With the Coronavirus spreading across several countries and the likely impact it will create on global economy, the Chinese dependence of the Indian Auto industry etc are creating havoc in the market; We need to see whether the market reverses its losses or go further down ???

Happy reading!……

Regards
V Murali

General News

    • Arvind Kejriwal takes oath as Delhi chief minister for 3rd time after AAP wins 62 of the 70 assembly seats.
    • Parliament: First leg of Budget Session ends; second leg to begin on March 2.
    • Cabinet approves Swachh Bharat Mission (Grameen) Phase II, 22nd Law Commission of India.
    • Cabinet clears purchase of 24 MH-60R Seahawk helicopters worth $2.5 billion.
    • NPR process to begin on Apr 1: President Kovind to be the1st to be enrolled; PM, Vice-President to follow.
    • 11th edition of DefExpo-2020, Lucknow: Indian, Russian companies sign 11 MoUs; UP govt sign 23 MoUs.
    • US President Donald Trump visits India; India and US sign 3 pacts, finalise defence deal worth $3 billion.
    • India-US reaffirm ties, ask Pakistan to ensure its territory is not used to launch terror attacks.
    • India complies with Paris Agreement’s goal to check rise in temperature: PM Modi at COP13 convention.
    • Sri Lankan PM Mahinda Rajapaksa, Portuguese President Marcelo Rebelo de Sousa, Vietnamese Vice President Dang Thai Ngoc Thinh, Myanmar President U Win Myint visit India.
    • External Affairs Minister S Jaishankar attends Munich Security Conference.
    • Defence Minister Rajnath Singh holds talks with Defence Minister of Qatar.
    • India and Maldives signs five MoUs for establishing the Addu Tourism zone in five islands of Addu.
    • India-South Korea hold ministerial-level defence dialogue.
    • CAA protests in Delhi turn violent, death toll touches 34.
    • Shri Ram Janmabhoomi Teerth Kshetra to oversee construction of temple; Gopal Das elected as President.
    • Sunni Board accepts 5-acre land near Ayodhya; to build mosque, hospital, library and research centre.
    • PM Modi launches 50 development projects worth over ₹1,200 crore at Varanasi.
    • Second batch of 25 foreign envoys visit Kashmir to witness ground situation.
    • Omar Abdullah, Mehbooba Mufti and two others booked under Public Safety Act.
    • MP, Puducherry and Bihar pass resolution against CAA; Goa pass congratulatory motion for CAA.
    • Tamil Nadu Assembly passes bill to declare Cauvery Delta Region a Protected Special Agriculture Zone.
    • DMK teams up with Prashant Kishor’s I-PAC for 2021 Tamil Nadu Assembly election.
    • Karnataka gets 10 more ministers as CM Yediyurappa inducts former JDS-Congress coalition rebels.
    • Reservation in promotions not a fundamental right; states not bound to give quota: Supreme Court.
    • SC upholds constitutional validity of SC/ST Amendment Act, 2018; reintroduces bar on anticipatory bail.
    • Supreme Court clears permanent commission, command roles for women officers in Indian Army.
    • Sabarimala case: SC upholds referring religious questions to larger Bench, frames 7 questions of law.
    • Aircel-Maxis deal: CBI and ED file status reports in court.
    • SC appointed mediators submit report after meeting with the Shaheen Bagh protesters.
    • CBI gives clean chit to Rakesh Asthana in bribery case.
    • Nirbhaya case: Convicts to hang on March 3 at 6 am, Delhi court issues new death warrant.
    • Uphaar fire: SC dismisses curative plea; no further jail term for Ansal brothers.
    • Jaipur receives UNESCO World Heritage City certificate.
    • Sanjay Kothari, President’s Secretary selected as next CVC; Ex-IAS Officer Bimal Julka to be CIC.
    • Coronavirus spreads across continents; Countries evacuate citizens from China as toll crosses 2,800.
    • WHO raises risk assessment of Coronavirus to ‘very high’ at global level.
    • US Senate acquits President Trump of all impeachment charges.
    • Trump’s $4.8 trillion budget sees deep cut to safety net programs; increases defense and space spending.
    • US launches 27-nation International Religious Freedom Alliance.
    • Senate approves legislation to limit President’s war powers against Iran.
    • US approves sale of Integrated Air Defence Weapon System to India.
    • Organisation of Islamic Cooperation(OIC) and EU rejects Trump peace plan.
    • Malaysian PM Mahathir Mohamad resigns; King appoints Muhyiddin Yassin as Prime Minister.
    • Pakistan court convicts JuD chief Hafiz Saeed for 5 years in terror financing cases.
    • Pakistan remains in FATF Grey List, gets stern warning on terror funding; Iran remains in Blacklist.
    • 3 Indian-origin MPs inducted in UK Cabinet; Rishi Sunak appointed UK Finance Minister.
    • President Ashraf Ghani declared winner of Afghan election, after five-month delay.
    • North Korea enhanced nuclear, missile programs in 2019 in breach of sanctions: UN report.
    • NASA astronaut Christina Koch returns to Earth after a record-breaking 328 days in space.
    • Oscar 2020: South Korean hit ‘Parasite’ creates history, wins Best Film, Best Director and Best Screenplay.
    • Joaquin Phoenix, Renee Zellweger wins Best Actor and Actress; Brad Pitt Best Supporting Actor.
    • IND vs NZ: India wins T20 series; NZ wins ODI series, leads Test series 1-0.
    • Women’s T20 World Cup 2020: India reach Semis.
    • Australia wins the Women’s T20 tri-nation series.
    • ICC U-19 World Cup: Bangladesh beat India by 3 wickets to win the maiden title.
    • IPL 2020 schedule: Mumbai Indians to play Chennai Super Kings in March 29 opener.
    • Sachin Tendulkar’s 2011 World Cup-winning moment voted the Laureus Sporting Moment of 2000-2020; Lionel Messi, Lewis Hamilton share Sportsman of the Year award; Simone Biles wins World Sportswoman.
    • Indian hockey captain Manpreet Singh named Player of the Year 2019; Lalremsiami named Women’s Rising
    • Star of the Year by the International Hockey Federation.
    • Asian Wrestling Championships: Sunil Kumar wins India’s 1st Greco-Roman gold. Ravi Dahiya wins gold, Sakshi Malik and Bajrang Punia finishes with silver, Vinesh Phogat gets bronze
    • FC Goa becomes first Indian club to qualify for AFC Champions League group stage.
    • Australian Open: Novak Djokovic clinches his 8th title, 17th Grand Slam; Sofia Kenin wins her first title.

     

    Business News

    • Budget 2020-21: Receipts pegged at ₹22.46 lakh crore, expenditure ₹30.42 lakh crore; FY 20 fiscal deficit seen at 3.8%; FY21 fiscal deficit set at 3.5% of GDP.
    • Tax payers given option of lower IT rates, new tax slabs minus 70 exemptions; DDT abolished.
    • Government to sell balance stake in IDBI Bank, to raise fund via LIC IPO.
    • ₹103 trillion infrastructure projects launched under National Infrastructure Pipeline (NIP).
    • Govt clears ₹540 crore investments in stuck housing projects from ₹25,000 crore stress fund.
    • Govt clocks ₹40,000 crore in public procurement transactions through GeM portal.
    • Cabinet approves 10,000 Farmer Producer Organizations; ₹50,850 crore paid under PM-KISAN scheme.
    • Centre approves levy of 28% GST on lotteries from March 1.
    • Govt allows firms to list global depository receipts at IFSC.
    • PAN to become inoperative after 31 March if not linked with Aadhaar: Income Tax department.
    • 15th Finance Commission forms panel on defence, internal security funding.
    • Cabinet approves amendments to bring co-operative banks under RBI regulation.
    • RBI keeps repo rate unchanged at 5.15%, sees GDP growth in FY21 at 6%.
    • RBI clears plan for dilution of promoters’ shareholding in Kotak Mahindra Bank.
    • Govt to infuse ₹2,500 crore in 3 state-run insurance firms; notifies 100% FDI for insurance intermediaries.
    • LIC staff hold nationwide one-hour strike today against govt’s IPO proposal.
    • Shree Cement to replace YES Bank in Nifty50 from March 27.
    • India allots import licences for 1.1 million tonnes of refined palmolein from Indonesia.
    • ISMA revises India’s sugar output upward by 2% to 26.5 million tonnes for 2019-20.
    • AGR dues: SC issues contempt notices against telcos over payment delay.
    • Bharti Airtel pays ₹18,004 crore and Vodafone Idea ₹3,500 crore to DoT as part of their AGR dues.
    • Telecom companies asked to submit self-assessed AGR dues calculation.
    • NCLAT allows JSW Steel to acquire Bhushan Power.
    • Govt revises framework for enhanced disclosures in auditor reports of companies.
    • China cuts benchmark lending rates amid coronavirus outbreak.
    • China halves retaliatory tariffs on hundreds of US goods worth about $75 billion.
    • IRCTC’s third private train Kashi Mahakal Express begins its commercial run.
    • Nitin Gadkari inaugurates India’s first inter-city electric bus service between Mumbai and Pune.
    • VW becomes the fourth company after Maruti Suzuki, Renault and Volvo to give up diesel engines in India.
    • JLR beats Audi, takes third spot in India’s luxury car market in 2019; Mercedes, BMW continue to lead.
    • Mahindra XUV300 receives Global NCAP’s first ever ‘Safer Choice’ for India award.
    • China’s passenger car sales fall 92% in February due to virus scare.
    • Toyota and Panasonic announce JV to make EV batteries for sale to global automakers.
    • Hyundai and Kia develop world’s first predictive gear shift control system.
    • Paytm Bank partners with Ola & Uber to issue FASTags to one lakh drivers.
    • Adani Group signs agreement with AAI for operations, management & development of 3 airport.
    • GMR sells 49% stake in airports business to France’s Groupe ADP for ₹10,780 crore.
    • BHEL, BEL sign pact to develop products for defence, non-defence applications.
    • L&T & ideaForge sign MoU to develop unmanned aerial vehicles for defence usage.
    • LPG price hiked by ₹144.5 per cylinder, steepest hike in rates since January 2014.
    • ExxonMobil, IOC ink gas transport pact.
    • French group Total strikes renewable energy deal with Adani Group.
    • HCL Technologies enters Sri Lanka, sets up global delivery center in Colombo.
    • Infosys signs deal with GE Appliances to streamline its IT operations.
    • Amazon wins court order to suspend $10 billion US military contract with Microsoft.
    • Mobile World Congress cancelled in Barcelona amid Coronavirus concerns.
    • Dr Reddy’s buys Wockhardt’s India business for ₹1,850 crore.
    • Reliance Industries gets TV18 Broadcast, Hathway Cable, DEN Networks merged into Network18.
    • Amazon pumps ₹2,563 crore into Amazon Pay and Amazon Wholesale.
    • Amazon invests over ₹2,500 crore into Amazon Seller Services, Amazon Data Services India.
    • WhatsApp Pay set for phased roll out in India; granted NPCI permission.
    • Ola launches services in London; 25,000 drivers sign up.
    • SoftBank invests $300 million in baby, mother products retailer FirstCry.
    • Pepperfry raises $40 million in Series F round led by Pidilite Industries.
    • Debasish Panda appointed new Finance Secretary.
    • Senior bureaucrat Rajiv Bansal appointed Air India CMD.
    • Mastercard CEO Ajay Banga steps down, takes over as executive chairman, Michael Miebach named CEO.
    • Bob Iger steps down as Disney CEO, Bob Chapek take reins.
    • MakeMyTrip founder Kalra steps down as group CEO, co-founder Rajesh Magow to take over.

     

    Q3 Results

    • PNB reports Q3 net loss at ₹492.28 crore as provisions spike 73% to ₹4,445.36 crore.
    • IDBI Bank Q3 loss widens to ₹5,763 crore; GNPA at 28.72%.
    • Airtel reports consolidated loss of ₹1,035 crore for Q3, revenue increased 3.86% QoQ to ₹21,947.1 crore.
    • Vodafone Idea reports ₹6,453 crore loss for Q3, revenue up 2.3% to ₹11,089.4 crore.
    • RCom Q3 loss widens to ₹10,598 crore, total income of RCom slips to ₹263 crore.
    • IRCTC Q3 profit zooms 179% YoY to ₹206 crore, revenue up 62% to ₹734.98 crore.
    • M&M Q3 profit tumbles 73% to ₹380 crore on one-time loss, revenue fell 6% to ₹12,120 crore.
    • Ashok Leyland Q3 net profit drops 93% YoY to ₹27.75 crore, revenue declines 37% to ₹4,016.65 crore.
    • Eicher Motors Q3 profit drops 6% to ₹499 crore, total sales rose 0.95% to ₹2,350.45 crore.
    • Hexaware reports Q3 PAT at ₹168 crore down 8.7% YoY, revenue up 3.2% at ₹1,529 crore.
    • Sun Pharma reports 26% drop in YoY net profit at ₹913.52 crore, revenue rose 5% to ₹8,038.65 crore.

     

    WORLD INDICES
    Indices 28-Feb 31-Jan % 1M 01-Jan % since Jan
     BSE 38297 40723 -5.96% 41306 -7.28%
     NSE 11202 11962 -6.36% 12183 -8.05%
     DOW 25409 28256 -10.07% 28538 -10.96%
     NASDAQ 8567 9151 -6.38% 8973 -4.52%
     FTSE 6581 7286 -9.68% 7542 -12.75%
     Nikkei 21143 23205 -8.89% 23657 -10.63%
     Hang Seng 26130 26313 -0.69% 28190 -7.31%
     Straits Times 3011 3154 -4.52% 3223 -6.57%
     Shanghai 2880 2977 -3.23% 3050 -5.57%
     USD 72.20 71.34 1.21% 71.22 1.37%
     Euro 79.64 79.15 0.62% 79.94 -0.37%
     GBP 92.60 94.22 -1.71% 94.36 -1.86%
     Yen/100INR 0.67 0.66 1.53% 0.66 1.98%
     Gold 41397 41000 0.97% 39067 5.96%
     Silver 43979 46989 -6.41% 46665 -5.76%
     Crude Brent $ 50.52 58.16 -13.14% 66.29 -23.79%
     Crude Nymex $ 44.76 51.56 -13.19% 61.30 -26.98%
    NIFTY SECTORAL INDICES
    Sectors BANK NIFTY CNX IT CNX  AUTO CNX FMCG CNX  PHARMA
    28-Feb 29147 15213 6904 29310 7577
    31-Jan 30834 16144 8087 30755 8139
    % 1M -5.47% -5.77% -14.62% -4.70% -6.90%
    01-Jan 32103 15722 8210 30234 8047
    % since Jan -9.21% -3.24% -15.91% -3.06% -5.84%

    INDIAN TRADE(USD MILLION)
    Exports 25970
    Imports 41140
    FDI 3016
    Government Bond 10Y 6.37%
    GDP YoY 4.70%
    Inflation Rate 7.59%
    Forex Reserves $ M 476122
    IIP % -0.30%
    INSTITUTIONAL TRADING ACTIVITY
    Particulars FII (Rs. crore) MF (Rs. crore)
    Equity 1820 3501
    Debt 2097 18787
    Total 1 M 3917 22288
    Total Since Jan 2422 53138
    Equity 11539 638
    Debt -9117 52500

     

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