October 3, 2016 by BizWhiz Admin in Economy Snapshot 0 comments 1772

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!

Regards
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
    game.
  • 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
WORLD INDICES
Indices 30-Sep 31-Aug % 1M 01- Jan % since
Jan
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%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX AUTO CNX FMCG CNX PHARMA
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%

INDIAN TRADE( USD MILLION)
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%
INSTITUTIONAL TRADING ACTIVITY
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.