October 3, 2016 by BizWhiz Admin in Economy Snapshot 0 comments 1891

Dear Colleagues,

I am pleased to attach the Economy / Market Snapshot covering all the major events in September, 2016.

Indian markets fell by 2% last week considering the tension between the India / Pakistan relationship. India carried out surgical strikes taking everyone by surprise. Global markets also showed little weakness last week; The first presidential debate between Hilary and Trump concluded last week with Hilary securing a better position than Trump. FII’s were net buyers in the market last month but have to see how they will view the current tense scenario and October can be a crucial month to assess the direction of the market – will the market scale the all time high or it is time for a fall. Auto sector alone went up last month with FMCG, Banks and IT losing ground. L & T Technology Services was listed with gains but ICICI Pru Life was listed at a discount.

Gold and Silver prices went up; similarly Crude prices went up by 6% resulting in increase of petrol and diesel prices in India. Implementation of GST is confirmed now to be effective from 1st April 2017 and a number of actions are being taken now by the Government. The Cauvery water dispute continues to be a major issue with imminent confrontation between the Supreme Court and the Karnataka Government. This may affect the business climate in Bangalore which is not a good news for India and Bangalore. While the Tamil Nadu Chief Minister is in the hospital for more than a week now, her case in the Supreme Court will also be decided in October.

Indian won the 500th Test match and currently playing the 250th Test in India.

Happy reading!

V Murali

General News

  • India carried out surgical strikes on terror launchpads across the LoC of POK.
  • Rajnath Singh takes stock of country’s security, asks forces to be on alert.
  • Militants attack Army’s HQ in Uri, 18 army soldiers were killed, all four terrorists eliminated.
  • US lawmakers introduce bill to designate Pakistan a terrorist state.
  • PM to review the Most Favoured Nation (MFN) status to Pakistan.
  • SAARC summit postponed after 5 nations pulls out including India.
  • President Pranab Mukherjee signs the GST bill after 16 states ratify it.
  • GST council met to finalize the rules of conduct and business for the council.
  • Govt plans Rs 4,000-crores overhaul of 80 check posts for GST; an app to link Centre and state
    governments check posts in the works.
  • Cabinet Committee on Economic Affairs(CCEA) clears Rs 2,256 crores project for Central Board of
    Excise and Customs(CBEC)’s GST integration.
  • Exemption threshold fixed at Rs 10 lakhs for NE states and Rs 20 lakhs for other states.
  • Assessees below Rs 1.5 crores to come under State, while above Rs 1.5 crores either under Centre or
    State. Govt appoints Arun Goyal as Additional Secretary of GST council.
  • Centre, states agree on timetable for April 1 roll out.
  • Cabinet approves merging Railway Budget with the General Budget.
  • India, France sign $8.9-billion Rafale deal for 36 fighter jets.
  • ISRO: GSLV-F05 carrying advanced Weather Satellite INSAT-3DR and PSLV-C35 with 8 satellites were
    launched successfully.
  • India successfully test fires surface-to-air missile Barak-8.
  • Government integrates DigiLocker with driving licence and vehicle registration certificates.
  • PM Modi chairs meeting to review Indus Water Treaty.
  • Afghanistan President Ashraf Ghani’s was on a 2-day visit to India; India extends $ 1 billion
  • Govt announces 3rd Smart Cities list, made 27 new additions to the Smart Cities Mission.
  • Mormugao, Indian Navy’s most advanced guided missile destroyer, launched in Mumbai.
  • Centre approves the renaming of Gurgaon as “Gurugram”.
  • Bharat Bandh called by 10 trade unions on September 2 which evoked a mixed response.
  • AIR resumes Balochi broadcast; launches website and app of its radio service.
  • Mother Teresa was formally canonized by Pope Francis at Vatican City; IndiaPost releases postage
    stamp on Mother Teresa.
  • Protests erupt and normal life hit in Karnataka over SC’s order to release water to TN.
  • Retailers across Tamil Nadu and Puducherry shut shop in protest against Karnataka violence.
  • Karnataka legislative assembly passes resolution against releasing water to TN.
  • Uma Bharti convenes meeting with Karnataka, TN govts.
  • Arunachal CM Pema Khandu along with 43 Congress MLAs join the People’s Party of Arunachal
    Pradesh (PPA).
  • Shivpal Yadav replaces Akhilesh Yadav as new SP UP chief.
  • Amar Singh named as Samajwadi Party National General Secretary.
  • Patna High Court imposes ban on Bihar’s anti-liquor law.
  • WB returns land ownership to 9117 farmers in Singur and cheques to 800 farmers who have not taken
    money, following the SC verdict.
  • Centre announces financial package for Andhra Pradesh that includes full funding of Pollavaram
    irrigation project, tax concessions and a special assistance.
  • Heavy rain triggers flood-like situation in Andhra pradesh.
  • Rahul Gandhi granted relief in criminal defamation case filed against him by a RSS functionary.
  • Navjot Singh Sidhu launches his own party, Awaaz-e-Punjab.
  • Directorate General of Civil Aviation (DGCA) and more airlines banned passengers from carrying
    Samsung Galaxy 7 in switch on mode on flights.
  • Supreme Court cancels Shahabuddin’s bail, who was out of jail after 11 years, sends him back to jail.
  • The UN Charter translated into Sanskrit.
  • The 1st of the 3 presidential debates between Donald Trump and Hillary Clinton drew more than 84
    million viewers.
  • World leaders adopt the ‘New York Declaration for Refugees and Migrants’ at the United Nations.
  • Congress overrides Barack Obama’s veto of 9/11 bill that allows family members of 9/11victims to
    sue Saudi Arabia.
  • Permanent arrest warrant issued against Pervez Musharraf in murder case of Lal Masjid deputy cleric.
  • North Korea conducts fifth and largest nuclear test; fires three ballistic missiles off east coast.
  • Malaysia confirms debris found in Tanzania in June is from MH370.
  • BCCI invites all former India captains for ‘500th Test’ which was played against New Zealand in
    Kanpur from September 22.
  • BCCI names Ajay Shirke as the Secretary, MSK Prasad as head of selection committee, Venkatesh
    Prasad as chairman of the junior selection committee.
  • SC slams BCCI for non-adherence of Justice Lodha reforms; BCCI misses 1st deadline to implement
    Lodha reforms as it adjourns its Special General Meeting on technical grounds.
  • India wins their 500th Test match by 197 runs, take 1-0 lead against NZ.
  • R Ashwin breaks Waqar Younis’ record, becomes second fastest to take 200 Test wickets in his 37th
  • Paralympics: Mariyappan Thangavelu (high jump) and Devendra Jhajharia (javelin throw) had won
    gold, with the veteran javelin thrower setting a new world record.
  • Deepa Malik (shot put) and Varun Singh Bhati (high jump) bagged silver and bronze respectively.
  • Switzerland’s Stan Wawrinka and Germany’s Angelique Kerber claim their first US Open title in men’s
    and women’s singles respectively.
  • Sania Mirza and Czech’s Barbora Strycova win the women’s doubles titles at Toray Pan Pacific Open.
  • Sania Mirza tops the latest WTA women’s doubles ranking following her win.

Business News

  • Govt appoints Chetan Ghate, Pami Dua, Ravindra Dholakia-members to Monetary Policy Committee.
  • US Fed keeps interest rates steady, signals one hike by end of the year.
  • India likely to post its first current account surplus in 9 years in the latest quarter.
  • August CPI falls to 5.05%; July IIP shrinks by 2.4%.
  • World Bank President Jim Yong Kim heads for a second five-year term.
  • Mukesh Ambani tops Forbes’ ‘100 richest Indians’ list followed by Sun Pharma’s Dilip Shanghvi and
    Patanjali’s Balkrishna at 48th position.
  • India slipped down by 10 positions to 112th spot on World Economic Freedom Index.
  • India’s foreign exchange reserves went down to $369.60 billion as on September 16 as against
    $371.27 billion as on September 9.
  • SEBI allows Commodity exchanges to trade Options.
  • Mukesh Ambani unleashes Reliance Jio, from September 5 to December 31, it will be free for all; aims
    for 100 million customers.
  • China’s green car subsidy scandal spreads, 20 more car makers, including Nissan and Hyundai named.
  • Hyundai car workers start first full strike in 12 years in South Korea.
  • Mahindra to buy out Peugeot’s stake in two-wheeler joint venture.
  • Indian banks moving past asset quality problems, outlook stable: Moody’s.
  • Axis Bank buys 13.67% in Asset Care and Reconstruction Enterprise (ACRE) from IFCI Ltd.
  • Bank Of India sells 18% stake in insurance JV to its partner Dai-ichi Life.
  • Yes Bank sells United Breweries shares pledged with it by Vijay Mallya to Heineken International.
  • SEBI questions the legality of equity crowdfunding platforms serving startup companies.
  • FPIs infuse Rs 6,800 crores in capital markets in September.
  • RBI allows 100 % foreign investment in Crompton Greaves Consumer Electricals.
  • Patanjali to venture into garments and a ‘swadeshi’ jeans will be launched by next year.
  • Freecharge partners with Axis Bank, launches UPI payment.
  • Mahindra forays into fruits, juices retailing business under the Saboro brand.
  • Alibaba market value, at the NYSE, has surpassed all other Asian listed firms, totalling over $266 B
    ABB India opens solar inverter manufacturing factory.
  • Adani unveils world’s largest solar plant at Kamuthi, Tamil Nadu which is built at a cost of around Rs
    4,550 crores and will generate 648MW of electricity.
  • India’s coffee exports up 18.15% in April-August.
  • India’s mineral production was Rs 17,339 crores in July.
  • Zee Entertainment forays into radio industry with the acquisition of UAE’s Hum 106.2 FM radio.
  • DLF exits cinema business, sells 7 screens to Cinepolis for Rs 64 crores.
  • US firm Liberty Media buying Formula One auto racing series.
  • Anil Ambani: Reliance Communication has “virtually merged” with Reliance Jio.
  • Samsung issues global recall of Galaxy Note 7.
  • Vodafone India receives Rs 47,700 crores as equity infusion from its parent Vodafone Plc.
  • Lupin arm gets US regulator’s tentative nod for anti-bacterial drug.
  • Glenmark gets USFDA nod for Diclofenac Sodium gel used for treatment of skin lesion.
  • India Jumps 19 places to 35 in World Bank’s Logistics Performance Index.
  • Wipro bags 3-year IT deal from Norway’s NSB.
  • HP to buy Samsung’s printer business in $1.05 billion deal.
  • Indian e-commerce market could reach USD 28 billion by FY2020.
  • Flipkart crosses 100 million customers after six months it touched the 75 million user mark in March
    this year.
  • Wal-Mart in talks to invest up to $1 billion in Flipkart.
  • Google launches ‘Allo’ messaging app for Android and IOS.
  • Marriott Buys Starwood, Becoming World’s Largest Hotel Chain.

Market News

  • Indian markets down by 2% due to tension on the India – Pak relations and Global weakness
  • FII net buyers of Rs 9500 crores in September in the Equity market.
  • FMCG down by 4%, Banks down by 2.5% and IT down by 2%; Auto up by 1.5% and Pharma neutral
  • Nasdaq up; London Up, Dow neutral; Shanghai down but Hong Kong up up
  • Gold up by 1.5%, Silver up by 6%; Crude up by 6%; Petrol prices increased in India
  • INR to US $ at 66.61
Indices 30-Sep 31-Aug % 1M 01- Jan % since
BSE 27866 28,452 -2.06% 26,161 6.52%
NSE 8611 8,786 -1.99% 7,963 8.14%
DOW 18308 18,401 -0.50% 17,425 5.07%
NASDAQ 5312 5,213 1.89% 5,007 6.08%
FTSE 6899 6,782 1.74% 6,242 10.53%
Nikkei 16450 16,887 -2.59% 19,034 -13.58%
Hang Seng 23297 22,977 1.39% 21,914 6.31%
Straits Times 2869 2,821 1.73% 2,883 -0.46%
Shanghai 3005 3,085 -2.62% 3,539 -15.10%
USD 66.61 66.97 -0.54% 66.23 0.57%
Euro 74.73 74.57 0.21% 71.92 3.90%
GBP 86.61 87.96 -1.54% 97.88 -11.52%
Yen/100INR 0.66 0.65 1.11% 0.55 19.49%
Gold 31155 30718 1.42% 26,320 18.37%
Silver 46781 44062 6.17% 33,080 41.42%
Crude Brent $ 50.02 47.16 6.05% 37.28 34.16%
Crude Nymex $ 48.04 45.06 6.60% 37.09 29.51%
30-Sep 19286 10292 10029 21542 11461
31-Aug 19788 10496 9876 22506 11457
% 1M -2.54% -1.94% 1.56% -4.28% 0.04%
01- Jan 17039 11175 8328 20185 11980
% since Jan 13.18% -7.90% 20.42% 6.72% -4.33%

Exports 21519
Imports 29193
FDI 4739
Government Bond 10Y 6.82%
GDP YoY 7.10%
Inflation Rate 5.05%
Forex Reserves $ M 370770
IIP % -3.70%
Particulars FII (Rs.crore) MF (Rs.crore)
Equity 9520 1518
Debt 10531 59604
Total 1 M 20051 61122
Total Since Jan 57994 291359
Equity 46348 13138
Debt 11646 278221

Crude Oil Brent, Economy / Market Snapshot -September 2016

Sorry, the comment form is closed at this time.