October 5, 2020 by BizWhiz Admin in Economy Snapshot 0 comments 1157
Dear Colleagues

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

Indian Markets lost about 1.50% last month. Despite the drop, Sensex is holding on to 38,000 levels. On the sectoral indices, Bank Nifty lost about 10%, FMCG by 2.50% while IT went up by 11%, Pharma by 6% and Auto by 1%. FII’s sold 4,250 crores in the equity market and Domestic Institutions sold about 3,450 crores in the equity market. Indian Rupee closed at Rs.73.77 for 1 US $.

On the Global markets front, DOW lost 2%, Nasdaq lost 5%, FTSE lost 1.50%, Hang Seng lost 7% and Shanghai lost 5%. Nikkei was marginally higher. On the commodities side, Gold lost 2.50% and Silver lost 11%. Brent Crude lost 10.50% and currently trading at $ 41 a barrel.

The first half of the financial year 2020-21 has come to an end with almost the entire period knocked off by Covid. Economic activity has certainly picked up in September despite the rising number of confirmed cases. Bank stocks gained 10% in August but the entire 10% was lost in September. Quarterly results will start coming towards the second / third week of October and set a direction for the market. The unlock guidelines of the central government provide for more relaxations. Air traffic in India is picking up but the international travel is still banned upto 31st October,2020 except for Vandhe Bharat mission and other air bubbles with overseas carriers. The first debate in the US Presidential election concluded last week and brought down the confidence in the leadership, both the sides. Two more debates will happen in October before the election on 3rd November, 2020.

Let us hope that we are able to handle this difficult situation and bounce back!

Happy reading!……

Regards
V Murali

General News

  • Global tally of Coronavirus cases stands at 34 million with over 1 million fatalities.
  • India tally crosses 6.3 million mark with 98,708 deaths; 7,56,19,781 tests conducted so far.
  • Health ministry issues guidelines for reopening schools from 9 to 12 classes on voluntary basis.
  • Metro services resume across the country after a gap of over five months.
  • Education Ministry releases new calendar for UG, PG 1st year, full refund on admission cancellation.
  • Monsoon session commenced on September 14, ended 8 days ahead of schedule amid pandemic.
  • 25 Bills passed by Parliament; productivity of Lok Sabha was 167% and Rajya Sabha was 100.47%.
  • Parliament passes two key agricultural reforms bills amid opposition ruckus through a voice vote.
  • Harsimrat Kaur Badal quits Cabinet over Centre’s new farm bills; Shiromani Akali Dal quits BJP-led alliance.
  • President Kovind gives his nod to all 3 farm bills, government notifies them.
  • PM Modi inaugurates Kosi Rail mega bridge and 12 railway projects in Bihar through video conferencing.
  • PM Modi lays foundation of 9 highway projects, launches optical fibre internet services in Bihar.
  • PM Modi hold virtual bilateral summits with Sri Lankan PM and Dutch PM.
  • Rajnath Singh attends SCO Defence Ministers’ meet; meets Chinese counterpart amid border tension.
  • S Jaishankar attends SCO Foreign Ministers meet; India, China reach consensus on easing border tensions.
  • India, China agree to stop sending more troops to forward areas in Ladakh.
  • IAF formally inducts first batch of 5 Rafale fighter jets at Ambala airbase.
  • India deploys T-72, T-90 tanks in eastern Ladakh’s Chumar-Demchok area to counter China.
  • In a first, two women officers to operate helicopters from warships.
  • Jaishankar, G4 country’s foreign ministers call for decisive push for UN Security Council reforms.
  • S Jaishankar proposes voluntary G-20 principles on cross border movement at the G-20 meet.
  • Govt sets up expert committee to probe reports of China snooping on Indians.
  • EC announces Bihar poll dates: Voting in 3 phases on Oct 28, Nov 3 and Nov 7; result on November 10.
  • PM Modi inaugurates 1.75 lakh houses built under PM Awas Yojana in Madhya Pradesh.
  • Punjab launches smart ration cards for 1.41 crore people, separate scheme announced for 9 lakh others.
  • Govt refuses to extend 4G internet services outside Ganderbal and Udhampur districts in J&K.
  • Assam govt appeals to Supreme Court for re-Verification of NRC.
  • Congress overhauls CWC, Digvijay, Jairam, Khursheed enter CWC.
  • Students appear for JEE Main, NEET across India amid COVID-19.
  • Babri Masjid case: Not enough evidence to suggest demolition was pre-planned: Court acquits all accused.
  • Ex-Finance secretary Rajiv Kumar assumes charge as new election commissioner of India.
  • Former health Secretary Preeti Sudan appointed WHO panellist for pandemic preparedness.
  • Adhir Ranjan Chowdhury appointed as president of West Bengal Congress.
  • NDA candidate Harivansh Narayan Singh re-elected as Rajya Sabha Deputy Chairman.
  • Jaswant Singh – founding member of BJP, Union minister Suresh Angadi and legendary singer
  • SP Balasubrahmanyam passed away.
  • India votes in favour of UNGA resolution, calling for multilateral cooperation to combat Coronavirus.
  • Landmark 75th session of UN General Assembly commences in largely virtual format amidst COVID-19.
  • US elections 2020: Trump, Biden spar in first presidential debate.
  • US reimposes UN sanctions on Iran amid increasing tensions in the region.
  • US announces $150 million grant programme to invest in training for H-1B workforce.
  • US vetoes United Nations anti-terrorism resolution.
  • Israel, UAE, Bahrain ink historic Abraham Accord in White House ceremony.
  • US backs out from global effort to develop, distribute COVID-19 vaccine.
  • Trump signs new, expanded executive order to lower US drug prices.
  • Donald Trump nominated for 2021 Nobel Peace Prize for brokering UAE-Israel peace deal.
  • British PM sets out new Coronavirus curbs, curfews to last 6 months.
  • Second wave of COVID-19 underway in parts of Canada: PM Justin Trudeau.
  • Israel cabinet tightens Coronavirus lockdown as infections rise.
  • Afghanistan frees nearly 200 Taliban prisoners to push peace talks.
  • Iran and Russia to cooperate on joint production of COVID-19 vaccine.
  • EU, China sign agreements on food protection and Geographical Indications(GIs).
  • Pakistan Parliament extends ordinance allowing Kulbhushan Jadhav to file appeal for 4 months.
  • UK government reaches deal with Conservative rebels on breaching Brexit deal.
  • British PM Boris Johnson sets October 15 as deadline for Brexit negotiations with EU.
  • Russia starts giving new Covid-19 vaccine to volunteers in Moscow.
  • Japanese PM Shinzo Abe and his Cabinet officially resigns; Yoshihide Suga elected new Prime Minister.
  • Germany joins Indo-Pacific club aimed at securing trade routes from aggressive China.
  • Jamal Khashoggi killing: Saudi Arabia hands 20-year jail terms to five of eight convicts.
  • Sri Lankan govt gazettes 20A Constitution Amendment draft, restores full legal impunity to President.
  • The 13th edition of the IPL kicks off in UAE after a long wait due to an outbreak of coronavirus pandemic.
  • US Open 2020: Dominic Thiem wins maiden Grand Slam, Naomi Osaka wins third career Grand Slam.
  • Italian Open: Simona Halep wins first title in Rome; Novak Djokovic wins his fifth title.
  • Lionel Messi to stay at Barcelona next season despite transfer row.

 

Business News

  • Parliament passes bill to amend Companies law; various offences decriminalised.
  • Parliament clears Banking Regulation bill to bring co-operative banks under RBI.
  • Centre suspends operation of Insolvency and Bankruptcy Code by another 3 months.
  • Govt gives nod to 27 integrated cold chain development projects under PM Kisan SAMPADA Yojana.
  • PM Modi launches Pradhan Mantri Matsya Sampada Yojana and e-Gopala app for farmers.
  • Centre releases ₹6,195 crore to 14 states as 6th instalment of the Post Devolution Revenue Deficit Grant.
  • 21 States and UTs opt for Centre’s ₹97,000-crore RBI window option to meet GST collection shortfall.
  • Cabinet approves restructuring of Railway Board, VK Yadav becomes first CEO in rail history.
  • Government constructs 3,181 km national highways in April-August, surpasses target of 2,771 km.
  • Centre increases FDI limit in defence from 49% to 74% under automatic route.
  • Government allows airlines to decide baggage limitations for domestic flights.
  • MCA extends deadline for holding AGMs from Sep 30 to Dec 31.
  • Govt forms three-member expert panel to assist in assessment of relief to bank borrowers.
  • Government to infuse ₹20,000 crore in India’s state-run banks.
  • RBI broadly accepts KV Kamath panel’s recommendations on loan restructuring.
  • RBI issues new compliance norms for banks; expands priority sector lending categories; includes startups.
  • Yes Bank repays entire ₹50,000 crore special liquidity facility dues to RBI.
  • Banks free to restructure loans, but can’t penalise borrowers availing moratorium benefit: SC.
  • Banks shouldn’t declare accounts as NPAs till further order: Supreme Court.
  • FM Nirmala Sitharaman launches Doorstep Banking Services by PSBs.
  • SBI introduces new voluntary retirement scheme.
  • IRDAI allows general insurers to issue policy documents in electronic format.
  • Happiest Minds, Route Mobile make their debut on exchanges.
  • Reliance Industries crosses $200 billion market cap, TCS crosses ₹9 lakh crore market valuation mark.
  • SEBI orders attachment of bank, demat accounts of Mehul Choksi, Gitanjali Gems.
  • ICICI Bank-Videocon case: ED arrests Deepak Kochhar in money-laundering probe.
  • Bank of Japan keeps monetary policy steady, sees economy improving slightly.
  • Euro zone banks get €73 billion ECB relief to withstand pandemic.
  • AstraZeneca’s COVID-19 vaccine reaches phase 3 clinical trials in US: Donald Trump.
  • Sanofi and GSK launch trial for COVID-19 protein-based vaccine.
  • Russia releases 1st batch of COVID-19 vaccine Sputnik V into public.
  • Dr. Reddy’s partners with Russia for clinical trial of Sputnik V in India.
  • Bharat Biotech gets Centre’s nod to start Covaxin phase II trials.
  • DCGI approves commercial launch of India’s first paper-strip Covid Test – FELUDA.
  • Oxford and AstraZeneca resume Coronavirus vaccine trial after suspension over a participant’s illness.
  • SC gives telecom firms 10 years to clear AGR dues of ₹1.6 lakh crore; 10% to be paid by March 31, 2021.
  • Vodafone Idea unveils new integrated brand identity ‘Vi’.
  • ₹20,000 crore retro tax case: Vodafone wins arbitration against India.
  • Samsung bags $6.6-billion 5G deal from Verizon.
  • HCL tech acquires Australian IT firm DWS for $115.8 million.
  • Wipro enters into a multi-year global agreement with Marelli for automotive engineering services.
  • Pentagon sticks with Microsoft for Cloud Computing contract.
  • Microsoft acquires ZeniMax Media, owner of id Software, Bethesda and more studios.
  • Intel gets U.S. licences to supply some products to Huawei.
  • L&T sells its electrical and automation business to Schneider Electric for ₹14,000 crore.
  • International Solar Alliance signs MoUs with NTPC, MNRE and World Bank; 5 Indian PSUs to join alliance.
  • BP and Equinor form strategic partnership to develop offshore wind energy in US.
  • Shapoorji Pallonji Group agrees to exit Tata Sons, calls for separation.
  • TVS Motor invests additional ₹30 crore in electric vehicle startup Ultraviolette Automotive.
  • Honda, GM sign deal to work on battery-powered and self-driving vehicles together.
  • General Motors to make electric vehicle, supply batteries for Nikola Corp.
  • Harley-Davidson exits India, books $75 million in fresh restructuring costs.
  • Silver Lake buys 1.75% stake in Reliance Retail; KKR picks 1.28% stake and General Atlantic 0.84% stake.
  • Amazon announces Luna, a cloud gaming service for Fire TV, desktop and mobile.
  • Flipkart Group launches Flipkart Wholesale to connect local manufacturers with retailers.
  • Government bans 118 Chinese apps and games including PUBG mobile, Apus launcher, Rules of Survival.
  • PUBG Corp takes control of India Franchise from Tencent Games.
  • Trump approves bid by Oracle and Walmart to take over TikTok’s US operations.
  • US Judge temporarily blocks Trump administration ban on new TikTok downloads from app stores.
  • YouTube enters short video space with YouTube Shorts.
  • Facebook India chief appears before Parliamentary panel debating misuse of social media platforms.
  • Byju’s raises $500 million in fresh funding round led by Silver Lake.
  • Zomato raises $102 million from Tiger Global, valued at $3.4 billion.
  • Unacademy enters unicorn club after raising $150 million in fresh round led by SoftBank.
  • Times Network expands its global footprint; launches channels on ONEHUBTV.
  • WeWork sells control of China business in $200 million deal.
  • Tencent increases its stake in Flipkart with fresh infusion of $62.8 million.
  • Apple Store Online launched in India with direct customer support, trade-ins, and more.
  • Apple Unveils Apple Watch Series, iPad Air, Fitness Service, Bundled Subscription Options in global event.
  • India jumps 4 places to rank 48 on Global Innovation Index 2020.
  • Ease of doing business ranking 2019: Andhra Pradesh retains top position; UP, Telangana follow.
  • India slips 26 spots to 105th position on Economic Freedom Index.
  • Asian Development Bank appoints Takeo Konishi as Country Director for India.
  • RBI appoints former Union Bank of India executive A K Dixit as the new administrator of PMC Bank.
  • SIAM appoints Maruti Suzuki India CEO Kenichi Ayukawa as its new President.
  • Citigroup’s Jane Fraser to succeed Michael Corbat as CEO, first woman to lead a major Wall Street bank.

 

WORLD INDICES
Indices 30-Sep 31-Aug % 1M 01-Jan % since Jan
BSE 38068 38628 -1.45% 41306 -7.84%
NSE 11248 11388 -1.23% 12183 -7.67%
DOW 27782 28430 -2.28% 28538 -2.65%
NASDAQ 11168 11775 -5.16% 8973 24.46%
FTSE 5866 5964 -1.63% 7542 -22.23%
Nikkei 23185 23140 0.20% 23657 -1.99%
Hang Seng 23459 25177 -6.82% 28190 -16.78%
Straits Times 2467 2533 -2.60% 3223 -23.46%
Shanghai 3218 3396 -5.23% 3050 5.51%
USD 73.77 73.61 0.21% 71.22 3.57%
Euro 86.63 88.30 -1.90% 79.94 8.37%
GBP 95.43 98.73 -3.34% 94.36 1.13%
Yen/100INR 0.70 0.70 0.37% 0.66 6.75%
Gold 50404 51701 -2.51% 39067 29.02%
Silver 59919 67318 -10.99% 46665 28.40%
Crude Brent $ 40.95 45.74 -10.47% 66.29 -38.23%
Crude Nymex $ 40.17 43.01 -6.60% 61.30 -34.47%
NIFTY SECTORAL INDICES
Sectors BANK NIFTY CNX IT CNX  AUTO CNX FMCG CNX  PHARMA
30-Sep 21452 19951 7908 29842 11773
31-Aug 23754 17929 7840 30595 11080
% 1M -9.69% 11.28% 0.86% -2.46% 6.26%
01-Jan 32103 15722 8210 30234 8047
% since Jan -33.18% 26.90% -3.68% -1.30% 46.30%

INDIAN TRADE(USD MILLION)
Exports

22700

Imports

29470

FDI

3269

Government Bond 10Y

5.99%

GDP YoY

-23.90%

Inflation Rate

6.69%

Forex Reserves $ M

545038

IIP %

8.40%

H

INSTITUTIONAL TRADING ACTIVITY
Particulars FII (Rs. crore) MF (Rs. crore)
Equity (4,359) (3,468)
Debt 4,293 9,062
Total 1 M (66) 5,593
Total Since Jan (79,272) 1,59,662
Equity 26,582 10,155
Debt (1,05,854) 1,49,507

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