Dear Colleagues,
I am pleased to attach the Economy / Market Snapshot covering all the major events in May, 2018.
Indian markets ended almost flat last month. Market corrected down initially but recovered towards the end of the month. FII’s sold Rs.7,600 crores in the equity market and Rs.17,500 crores in the debt market. Indian Mutual funds invested Rs.13,700 crores in the equity market which helped the market not to fall. On the sectoral front, Pharma lost 9%, Auto by 5%, IT by 2% while Bank Nifty went up by 5.50%. On the Global front, Dow went up by 1%, Nasdaq went up by 5% and London market went up by 2%. Tokyo and Hong Kong went down by 1% while Shanghai remained flat. Indian Rupee crossed the Rs.68 mark but settled at Rs.67.41 to 1 US $. Gold went down by 0.50% while Silver went up by 3%. Crude prices shot up and currently at $ 78 a barrel.
Except for the public sector banks, Quarterly / Annual results of Companies were generally good. Karnataka Elections gave a hung verdict but with the quick move of Congress and JD to form an alliance, Kumaraswamy has become the Chief Minister but still struggling on the cabinet formation with pulls and pressures. On the other important event for June regarding the meeting between the Presidents of US and North Korea, we have still keep our fingers crossed and see whether the meeting can still take place on 12th June 2018 or get postponed to another date. Holiday and Summer season is coming to an end and hope June will be a busy month for all.
Regards
V Murali
General News
- Karnataka Elections: HD Kumaraswamy sworn-in as Karnataka CM and Congress’ G Parameshwara as the Deputy CM after Congress offers support to JD(S).
- BS Yeddurappa steps down as Karnataka CM without facing trust vote 3 days after swearing-in.
- Cabinet reshuffle: Piyush Goyal gets finance ministry till Arun Jaitley recovers from a kidney transplant; Rajyavardhan Rathore named I&B minister, SS Ahluwalia as Minister of Electronics & IT.
- SC approves Centre’s amended draft Cauvery management scheme; asks for it to be implemented before the monsoon session of Parliament.
- Anti-Sterlite protest in Tamil Nadu’s Tuticorin turns violent on 100th day, claims 13 lives.
- Tamil Nadu govt orders permanent closure of 1st plant, cancels the land allotted for 2nd copper smelting plant in Tuticorin.
- PM Modi discusses bilateral and global issues in his first informal summit with Russian President Vladimir Putin.
- India holds bilateral talks with Myanmar, Iran.
- PM Modi embarks on tour to Indonesia, Malaysia and Singapore to boost Act East Policy.
- MoS External Affairs Gen VK Singh makes India’s first high-level visit to North Korea in 20 years.
- Bangladesh PM Sheikh Hasina seeks India’s help in urging Myanmar to take Rohingya refugees back.
- President Ram Nath Kovind gives nod to Bill amending Journalist Act.
- Oommen Chandy named Congress in-charge of Andhra Pradesh, Tarun Gogoi for West Bengal.
- Congress withdraws plea on impeachment move against Chief Justice Dipak Misra.
- Centre asks security forces not to launch operations in J&K during the month of Ramzan.
- Army finalises ₹15,000-crore ammunition production project.
- Indian Army tests Air Cavalry concept in Rajasthan’s desert terrain.
- All-women crew of INSV Tarini return to India after historic global circumnavigation.
- Former Attorney General of India Mukul Rohatgi appointed eminent jurist in Lokpal panel.
- Sunanda Pushkar death case: Shashi Tharoor charged with abetment to suicide.
- Vijay Mallya loses $1.55 billion assets case filed by the Indian banks in UK court.
- Massive dust storms, thunderstorms hit North India; More than 100 killed in Uttar Pradesh, Rajasthan.
- Nipah virus claims 15 lives in Kerala.
- Southwest monsoon arrives in Kerala three days ahead of schedule.
- NASA reveals major changes in worldwide water availability, warns of freshwater decline in India.
- Nepal’s ruling CPN-UML and CPN-Maoist Centre merge to form Nepal Communist Party.
- Donald Trump pulls US out of Iran nuclear deal; Iran sets end of May deadline to see EU measures to save nuclear deal.
- Gina Haspel sworn in as first female director of CIA.
- Vladimir Putin sworn in as President for fourth Kremlin term.
- N Korea destroys nuclear site after Donald Trump walks out of the summit with Kim Jong Un.
- US and N Korea actively prepare for the summit in Singapore.
- German Chancellor Angela Merkel holds talk on economy, trade, rule of law with Chinese Premier Li Keqiang.
- US opens embassy in Jerusalem; Guatemala and Paraguay follow suit.
- Nawaz Sharif admits Pakistan-based terrorists carried out 26/11 Mumbai attack; Govt and the army reject the allegations.
- Pakistan names Ex-Chief Justice Nasir Ul Mulk as interim PM until general elections.
- Mahathir Mohamad sworn in as Malaysia’s Prime Minister; Ousted PM Najib Razak barred from leaving country.
- 4-year search for Malaysia Airlines flight MH370 ends; search to resume if new evidence found.
- Venezuela: Nicolas Maduro wins second term as President amid outcry over vote.
- Cuba air crash: Over 100 dead after Boeing 737 crashes after taking off from Havana.
- IPL 2018 : Chennai Super Kings beat Sunrisers Hyderabad to win third IPL title.
- Roger Federer replaces Rafael Nadal as number one.
- AB de Villiers announces retirement from all forms of International Cricket.
Business News
- GST revenue collection in April 2018 comes at ₹1,03,458 crores.
- Finance Minister Piyush Goyal vows clean-up of banks after meeting heads of PSBs.
- Cabinet clears ordinance to amend Insolvency and Bankruptcy Code.
- Terms of Reference: Finance Ministers of five States submit memo to President Ram Nath Kovind.
- NITI Aayog ties up with Google to accelerate the future of AI and ML (Mission Learning) in India.
- RBI appoints NSDL’s Sudha Balakrishnan as its first CFO.
- Govt’s Bank Note Paper Mill India (BNPM) gets green nod to increase bank note paper production.
- Bank Unions call for two-day nationwide strike from May 30, to protest a nominal 2% wage hike.
- CBI files charge sheet in Nirav Modi case, names PNB ex chief, senior officials; files supplementary chargesheet against Mehul Choksi, Gitanjali Group companies.
- SEBI serves notice to ICICI Bank, CEO Chanda Kochhar.
- ICICI Bank to form independent panel to probe allegations against Chanda Kochhar.
- DSP Group buys out BlackRock’s 40% stake in joint venture.
- Dai-ichi Life buys 39.62% stake in Union Asset Management Co.
- Domestic passenger vehicle sales rose 7.5% to 2,98,504 unit in April.
- China cuts import tariffs for most vehicles to 15% from 25% w.e.f July 01.
- Toyota and Suzuki agree to discuss projects for tech and market development, vehicle production.
- Mercedes clocks production of 1 lakh cars in India.
- Railways to roll out smart coaches with black boxes, coach information and diagnostics systems.
- Centre announces ₹1 lakh crore investment to upgrade airports in next 5 years.
- CBI files case against AirAsia CEO Tony Fernandes, civil aviation ministry officials for alleged corruption.
- Oil hits multi-year high on tight supply, Iran sanctions; Petrol, diesel touch all-time highs as oil companies hike rates.
- Petronet to partner ONGC Videsh Ltd for stake in Qatar Petroleum LNG project.
- Indo-Pacific infrastructure forum launched to tap private sector in India, US, Japan.
- Biocon sells 1.88% stake in its research arm Syngene International for ₹230 crores.
- Telecom panel approves in-flight connectivity in Indian Airspace.
- Jio enters post-paid market, announces ₹199 Jio post-paid plan with “Zero-Touch” feature.
- Patanjali enters telecom domain , ties up with BSNL for Swadeshi Samriddhi SIM cards.
- RCom moves NCLAT challenging NCLT order allowing its insolvency.
- NCLAT refuses to stay Binani Cement insolvency proceedings.
- Jaypee promoters submit over ₹10,000 crore revival plan for Jaypee Infratech.
- Hero’s Munjal, Dabur’s Burman win bidding for hospital chain Fortis.
- NCLT approves Tata Steel bid for Bhushan Steel.
- India drags US to WTO over steel, aluminium duties.
- Qatar bans goods from four Arab nations – Saudi, UAE, Egypt and Bahrain.
- Cabinet okays ₹5.5 per quintal subsidy to sugarcane farmers.
- Niti Aayog inks pact with IBM to develop crop yield prediction model using Artificial Intelligence.
- L&T sells electrical & automation business to Schneider Electric for ₹14,000 crores.
- China’s Xiaomi officially files for Hong Kong IPO to raise a reported $10 billion.
- Apple pays Ireland first tranche of disputed taxes.
- US Federal court jury orders Samsung to pay Apple $533 million for copying iPhone design.
- China approves sale of $18 billion Toshiba chip unit to Bain-led consortium.
- Xerox pulls out of Fujifilm merger and teams up with activist investors Carl Icahn and Darwin Deason.
- Walmart acquires 77% stake in Flipkart for $16-billion; Flipkart Co-Founder Sachin Bansal announces exit.
- Amazon India gets fresh infusion of ₹2,600 crores from its parent company.
- Cambridge Analytica shuts down citing losses after Facebook data breach scandal.
- Facebook suspends 200 apps over data misuse probe.
- Google, Facebook face over $9 billion in fines under new EU data protection law.
- Paytm acquires Alibaba-backed TicketNew for around $40 million.
- Hackers steal up to 400 million pesos from Mexican banks in cyber-attack.
- NYSE appoints Stacey Cunningham as first female President.
- Amazon, Google lead global smart speaker market, Apple fourth: Report.
- Xiaomi tops smartphone market, Jio leads 4G handset segment in India: International Data Corporation.
- Number of electric vehicles on road reach 3 million worldwide in 2017: IEA.
Q4 Results
- SBI posts Q4 loss of ₹7,718 crores as provisions surged 48.8% to ₹28,096 crores.
- ICICI Bank reports 49.62% drop in Q4 net profit to ₹1,020 crores, GNPA rose to 8.84%.
- PNB reports a net loss of ₹13,416.91 crores for Q4, GNPA declines to 18.38%, net NPA to 11.24%.
- IDBI Bank Q4 loss widens to ₹5,663 crores as provisions swell; gross NPAs at 27.95%.
- Canara Bank reports Q4 net loss of ₹4,859.77 crores, provisions rises over 3 times to ₹9,075.04 crores.
- IndianOil posts 40% jump in Q4 profit at ₹5,218 crores, revenue increases 12.29% to ₹1.37 lakh crores.
- HPCL Q4 net profit falls nearly 4% to ₹17.48 billion, income from operations rose 13% to ₹663.51 billion.
- HCL Tech Q4 net profit rises 7.46% to ₹2,230 crores, revenue up by 2.9% to ₹13,178 crores.
- Tech Mahindra reports 108% YoY surge in net profit at ₹1,222 crores, revenue rose 7% at ₹8,054 crores.
- Cognizant Q4 net profit declines 6.6% to $20 million, revenues rise 10.3% to $3.91 billion.
- Apple reports record 20% rise in India revenue to $61.1 billion in fiscal 1st half.
- Tata Motors Q4 consolidated profit at ₹2,176.16 crores, revenue comes at ₹91,279 crores.
- Ashok Leyland Q4 standalone profit rises 40% to ₹667 crores, net sales grew 24% to ₹8,772.5 crores.
- M&M reports 50% jump in Q4 profit at ₹1,155 crores, total income rose 24% to ₹13,355 crores.
- TVS Motor’s Q4 profit rises 31% YoY to ₹166 crores, total sales up 32% to 8.89 lakh units.
- Dr Reddy’s reports Q4 net profit at ₹302.20 crores, revenues inches lower to ₹3,534.90 crores.
- Lupin posts net loss of ₹783.5 crores in Q4 due to one-time write off on the US-based Gavis acquisition.
- SpiceJet Q4 net profit jumps 5% to ₹40.5 crores, operating revenue comes at ₹2,029.3 crores.
- HUL Q4 profit rises 14% YoY to ₹1,351 crores, revenue at ₹9,097 crores, EBITDA up 18% to ₹2,048 crores.
- ITC’s Q4 net profit up 10% YoY at ₹2,933 crores, EBITDA grew 6.9% to ₹4,144 crores.
- Dabur reports 18.9% Q4 profit growth at ₹396.20 crores, revenue rises 6.2% to ₹2,032.90 crores.
- India Cements reports 3% rise in Q4 net profit at ₹34.30 crores, revenue slips 8.2% at ₹1,398 crores.
- JSW Steel reports 3-fold rise in Q4 profit at ₹2,879 crores, (YoY) revenue jumps 16% to ₹20,817 crores.
- BHEL March quarter profit doubles at ₹457.10 crores, sales up by 3.73% to ₹9,832.82 crores.
- NTPC Q4 profit jumps 41% YoY to ₹ 2,926 crores, revenue increases 13.14% to ₹23,100.26 crores.
- L&T Q4 net profit rises 5.6% to ₹3,167 crores, revenue grew 11% to ₹40,678 crores.
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 31-May | 30-Apr | % 1M | 01-Jan | % since Jan |
| BSE | 35322 | 35160 | 0.46% | 33813 | 4.46% |
| NSE | 10736 | 10739 | -0.03% | 10436 | 2.88% |
| DOW | 24416 | 24163 | 1.05% | 24719 | -1.23% |
| NASDAQ | 7442 | 7066 | 5.32% | 6903 | 7.80% |
| FTSE | 7678 | 7509 | 2.25% | 7688 | -0.12% |
| Nikkei | 22202 | 22468 | -1.18% | 22765 | -2.47% |
| Hang Seng | 30469 | 30808 | -1.10% | 29919 | 1.84% |
| Straits Times | 3428 | 3614 | -5.14% | 3403 | 0.74% |
| Shanghai | 3095 | 3082 | 0.43% | 3307 | -6.40% |
| USD | 67.41 | 66.66 | 1.12% | 63.68 | 5.86% |
| Euro | 78.80 | 80.52 | -2.13% | 76.48 | 3.04% |
| GBP | 89.91 | 91.76 | -2.01% | 86.06 | 4.47% |
| Yen/100INR | 0.62 | 0.61 | 1.58% | 0.56 | 9.59% |
| Gold | 30831 | 31036 | -0.66% | 29123 | 5.86% |
| Silver | 39904 | 38642 | 3.27% | 39176 | 1.86% |
| Crude Brent $ | 77.50 | 74.91 | 3.46% | 67.13 | 15.45% |
| Crude Nymex $ | 66.94 | 68.81 | -2.72% | 60.62 | 10.43% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors BANK | NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 31-May | 26956 | 13666 | 10994 | 28814 | 8220 |
| 30-Apr | 25532 | 13986 | 11626 | 28773 | 9061 |
| % 1M | 5.58% | -2.29% | -5.43% | 0.14% | -9.28% |
| 01-Jan | 25318 | 11566 | 11891 | 26686 | 9618 |
| % since Jan | 6.47% | 18.16% | -7.54% | 7.97% | -14.53% |
| INDIAN TRADE( USD MILLION) | |
|---|---|
| Exports | 25910 |
| Imports | 39630 |
| FDI | 4007 |
| Government Bond 10Y | 7.86% |
| GDP YoY | 7.70% |
| Inflation Rate | 4.58% |
| Forex Reserves $ M | 415050 |
| IIP % | 4.40% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs. crore) | MF (Rs. crore) |
| Equity | (7566) | 13691 |
| Debt | (17474) | (12113) |
| Total 1 M | (25039) | 1578 |
| Total Since Jan | (30393) | 154342 |
| Equity | 850 | 59063 |
| Debt | (31243) | 95280 |
