Dear Colleagues
I am pleased to attach the Economy / Market Snapshot covering all the major events in March, 2018.
Financial Year 2017-2018 has come to an end and the new Financial Year 2018-2019 has begun ! Some of the new budget proposals like Long Term Capital Gain will come into force from today. Market was closed for the last 4 days due to holidays. Indian markets came down by 3.50% last month; Nifty even came down below 10,000 mark briefly before bouncing back. All the sectors came down with Pharma losing as high as 7%. FII’s bought about Rs.13,400 crores in the equity market and the Domestic funds had pumped in Rs.5,000 crores. Indian Rupee closed at Rs.65.17 against 1 US Dollar. Global markets fell in the range of 2% to 3% without any exception.
Trade war between US and China commenced with import tariffs and restriction by both the sides. Good news is the meeting between the North Korean and Chinese Presidents giving a major relief. While BJP could win in some of the States when went on Poll, it lost the by-polls in UP and Bihar giving a shock to its leadership. Sonia’s effort to bring all the opposition parties together with Mamata Banerjee and Chandrasekara Rao seeking the unity of the Opposition will gather strength in the coming months. One more ally fell out of BJP with the Telugu Desam moving out due to non-granting of special status to Andhra Pradesh. The next battle is the Karnataka election which is scheduled to take place in beginning of May. On the business front, ICICI Bank’s Chanda Kochar was on the headlines with CBI registering a Preliminary Enquiry on the complaint that there was a quid pro quo in the lending to Videocon Group Companies.
Gold and Silver were almost neutral while Crude went up by 7% coming closer to the $ 70 mark. Annual / Quarterly results will start in the next few weeks setting a direction for the new financial year. Many articles about another recession in the US and a free fall of markets are going round. However the fundamentals of India are sound and hopefully we should not see a huge correction. Of course, we will have the elections next year and there are talks that these may even be preponed. We can see some volatility in the coming months. Let us hope that we have a good financial year 2018-2019!
Happy Financial Year and Happy reading!
Regards
V Murali
General News
- Karnataka Election 2018: EC announces single-phase polling on 12 May, counting on 15 May.
- TDP officially exits NDA over Andhra Pradesh special status row; TDP ministers in central cabinet
P Ashok Gajapathi Raju and Y Satyanarayana Chowdary resigned. - Rajya Sabha polls: BJP continues to be largest party with 69 seats, Congress’ number decreases to 50.
- Bypoll results: BJP lost four out of five bypolls held in Uttar Pradesh and Bihar.
- BJP-IPFT alliance ends 25-year Left rule in Tripura, Biplab Kumar Deb takes oath as Tripura CM.
- NDPP’s Neiphiu Rio sworn in as Nagaland CM; CPP’s Conrad Sangma as Meghalaya CM.
- Congress hints at readiness for tie-ups to beat BJP in 2019 at Congress 84th plenary session.
- Leaders of 19 opposition parties attend Sonia Gandhi’s dinner meet.
- Telangana CM K Chandrashekar Rao, West Bengal CM Mamata Banerjee meet for talks on third front.
- Mamata Banerjee meets Sharad Pawar, Shiv Sena and Telangana Rashtra Samithi MPs.
- Ram Nath Kovind becomes first Indian President to visit Madagascar.
- French President Emmanuel Macron visits India; India, France sign 14 deals.
- King of Jordan visits India; India, Jordan sign 12 agreements, including a MoU on defence cooperation.
- India and Vietnam ink 3 MoUs in the areas of trade, agriculture and atomic energy.
- Rahul Gandhi meets Singapore PM Lee Hsien Loong, addresses Indian-origin CEOs in Singapore.
- Data politics: BJP, Congress in spat over sharing app data without users’ consent.
- Defence Ministry clears purchase of light machine guns, carbines worth ₹9,435 crores.
- Indian Air Force lands its largest transport aircraft, C-17 Globemaster, in Arunachal’s Tuting airfield.
- BrahMos, supersonic cruise missile, successfully flight tested with an indigenous seeker from Pokhran.
- Sunjwan army camp attack mastermind, JeM terrorist Mufti Waqas gunned down in Pulwama.
- Tamil Nadu govt files contempt petition against Centre for not setting up Cauvery Management Board.
- CBSE question paper leak: Class XII Economics re-exam on April 25; decision on Class X in 15 days.
- Diu becomes first Union Territory to run 100% on solar power.
- 39 Indians kidnapped by IS in 2014 in Iraq’s Mosul were killed: Sushma Swaraj informs Parliament.
- Supreme Court allows passive euthanasia, upholds right to die with dignity.
- Foreign law firms can’t practice in India, but foreign lawyers can visit to advise clients: SC.
- INX media case: Delhi High Court grants bail to Karti Chidambaram after 23 days in custody.
- Anti-money laundering court issues non-bailable warrant against Nirav Modi, Mehul Choksi.
- Delhi High Court restores membership of 20 disqualified AAP MLAs.
- CBI court discharges Maran brothers and all other accused from illegal telephone exchange case.
- Fodder scam: Lalu Yadav gets 14-year imprisonment in Dumka treasury case, fined ₹60 lakhs.
- 2G spectrum case: Delhi HC issues notices to Raja, Kanimozhi on appeals filed by CBI and ED.
- Kejriwal tenders unconditional apology, gets acquitted in defamation cases lodged by Gadkari, Sibal.
- Kerala ‘love jihad’ case: SC annuls Kerala HC order, restores marriage of Hadiya.
- Delhi adopts BS-VI fuel; Supreme Court wants more cities to follow suit by April 1.
- Bhagwant Mann quits as AAP’s Punjab Chief over Arvind Kejriwal’s apology to Akali Dal minister.
- Anna Hazare begins indefinite hunger strike over Lokpal, ends fast after Centre’s assurance.
- Maharashtra farmers march from Nashik to Mumbai demanding proper implementation of the govt’s
loan waiver scheme; the state govt accepts their demands. - TTV Dinakaran launches new party – Amma Makkal Munnetra Kazhagam.
- Donald Trump accepts invitation to meet with N Korean leader Kim Jong Un by the end of May.
- March For Our Lives: Huge gun-control rallies sweep US.
- Donald Trump fires Rex Tillerson and FBI deputy director Andrew McCabe.
- North Korean leader Kim Jong-un meets Xi Jinping in China, commits to denuclearisation of N Korea.
- Kim Jong Un and South Korean envoys discuss possible inter-Korean summit.
- Vladimir Putin wins 4th Presidential term with 76.6% of vote.
- China’s parliament abolishes presidential term limits, allows President Xi Jinping to rule indefinitely.
- Angela Merkel re-elected by German parliament to fourth term.
- Nepal’s First Woman President Bidya Devi Bhandari re-elected for second term.
- Myanmar’s first democratically elected President, Htin Kyaw, resigns.
- Mauritius President Ameenah Gurib-Fakim resigns over shopping scandal.
- Sri Lankan President Sirisena lifts nationwide state of emergency following Buddhist-Muslim clash.
- Maldives President Abdulla lifts the State of Emergency after 45 days.
- Syrian forces escalate attacks in Eastern Ghouta, 1,100 people dead within 3 weeks.
- Nidahas Trophy Final: India beat Bangladesh to win the tri-nation series title.
- Steve Smith and David Warner step down following ball-tampering by Cameron Bancroft.
- ICC bans Steve Smith for one Test and fined 100% of the match fees and 75% of match fees to Bancroft.
- BCCI bars Steve Smith, David Warner from IPL 2018 following Cricket Australia’s ban.
- ICC Cricket World Cup qualifier: Nepal achieve ODI status after beating Papua New Guinea.
- England’s Stuart Broad becomes youngest pacer to enter 400 Test wicket club.
Business News
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- RBI to infuse ₹1 lakh crores through special auction into banking system.
- Finance Ministry rules out privatisation and merger of public sector banks for next one year.
- Govt to consolidate 35 overseas branches of state-run banks, to examine 69 for viability.
- PNB issued over 41,170 LoUs since 2011; FM Arun Jaitley informs Rajya Sabha.
- Banks write off NPAs worth ₹516 crores of 38 wilful defaulters in H1 FY18.
- Allahabad Bank gets nod from Ministry of Corporate Affairs to amalgamate subsidiary with itself.
- UCO Bank to merge branches in Hong Kong as it realigns overseas operations.
- ICICI Bank’s ₹3,250 crore loan to Videocon under scanner; CBI begins preliminary enquiry.
- US Federal Reserve raises rates 0.25%; raises 2018 GDP forecast from 2.5% to 2.7%.
- China raises a key market interest rate by 5 bps, following Fed’s move.
- European Central Bank sets new rules on bank capital and cash.
- India’s GDP growth rises from 6.3% to 7.2% in the third quarter of 2017.
- WPI inflation eases to 2.48% in February.
- India’s trade deficit for Feb came at $12 billion as exports grew at 4.5% and imports grew at 10.4%.
- E-Way Bill to be rolled out from April 1; Time for GST return filing extended by 3 months.
- GST collection falls for the 2nd consecutive month in February by ₹1,144 crores to ₹85,174crores.
- SC extends Aadhar linkages deadline till Constitution bench delivers its verdict.
- UIDAI to roll out face ID from July 1 for Aadhaar authentication.
- Cabinet clears Ayushman Bharat -National Health Protection Mission.
- Govt releases Draft Defence Procurement Policy (DIPP) 2018.
- Govt makes passport mandatory for bank loans above ₹50 crores.
- Aadhaar card should not be mandatory for withdrawing pension: Supreme Court.
- Nirav Modi got 1,213 fraudulent guarantees in six years: Arun Jaitley.
- ED begins process to stall bankruptcy proceedings of Nirav Modi’s Firestar Diamonds in US.
- Axis Bank discloses ₹200 crore exposure to companies owned by Nirav Modi and Gitanjali group.
- Union Bank disclose another direct exposure of ₹295 crores to Nirav Modi, Gitanjali firms.
- ED attaches 41 properties, valued at over ₹1,200 crore of Mehul Choksi group.
- ICICI Securities, Bandhan Bank Lemon Tree IPOs hits the market.
- Mutual Fund inflows decline 60% YoY in February, 2018.
- US President Trump imposes 25% tariff on steel imports and 10% on aluminium imports.
- Canada, Mexico, Australia, EU and 6 other allies exempted from steel, aluminium import tariff.
- India scraps 20% sugar export tax to boost overseas sales.
- Air India makes history by flying to Israel via Saudi airspace.
- Air India mopped up ₹543.03 crore from asset monetisation.
- CCI imposes ₹54 crore penalty on Jet, SpiceJet, IndiGo for fixing fuel surcharge.
- IndiGo, GoAir cancel 65 flights after DGCA grounds planes with faulty Pratt & Whitney (P&W) engines.
- Tata Boeing Aerospace commissions Apache fuselage facility in Telangana.
- Godrej Aerospace expands tie-up with Rolls-Royce, bags order of worth ₹200 crores.
- SpiceJet inks record $12.5 billion deal with French major Safran for aircraft engines.
- Asian Development Bank commits $120 million loan to improve Indian railways infrastructure.
- Finance Ministry gives nod to scrap vehicles older than 15 years.
- 16 Korean companies sign MoU with Andhra government to set up auto ancillary units.
- BlackBerry ink pacts with Jaguar Land Rover to provide software for EVs.
- Force Motors inks JV with Rolls-Royce’s arm to foray into the business of engines.
- Hyundai Motor India draws up ₹6,500 crore 3-year investment plan for development of 9 new models.
- Telecom licence fee collections shrink 4.46% to ₹3,104 crores in Q3.
- Reliance Jio added 8.3 million users in Jan, Bharti Airtel’s market share gain modestly to 25.32%: TRAI.
- India ranks 67th in fixed broadband speed, 109th in mobile Internet speed globally : Ookla report.
- CEO Balesh Sharma to lead the Vodafone-Idea Merger chaired by Kumar Mangalam Birla.
- Cognizant launches $300 million accelerated share repurchase.
- TCS ranked as the fastest growing IT services brand in 2018.
- US President Donald Trump signs order prohibiting Broadcom takeover of Qualcomm.
- International Solar Alliance Summit: PM Modi lays down 10-point action plan for clean energy.
- Asian Development Bank, International Solar Alliance sign pact to promote solar energy.
- Tata power sells Tata Communications shares to Tata Sons for ₹2,150 crores.
- ONGC Videsh, Oil India gets Mozambique govt nod for gas field development in the Rovuma basin.
- IRDAI to lower third-party insurance premium on small cars from April 1.
- Videocon exits insurance business; sells stake to DP Jindal Group, Enam Securities.
- Edelweiss ends deal to buy Religare Enterprises securities unit as it fails to get approvals.
- Yes Bank sells 2.17% stake in Fortis Healthcare, out of over 17% it acquired last month.
- India imposes anti-dumping duty on import of Chinese pharma product ‘Ofloxacin’.
- Indiabulls to sell stake in assets to Blackstone at enterprise valuation of ₹9,500 crores.
- Apple supplier Wistron gets approval from Karnataka govt to build a new assembly facility in the state.
- Reliance Jio buys stake in music app Saavn for its digital music service ‘JioMusic’.
- Arvind Ltd signs a MoU with the AP govt to set up an integrated apparel and textile park in Chittoor.
- Blue Star launches 40 new energy-efficient air conditioner models.
- GSK buys Novartis stake in consumer healthcare venture for $13 billion.
- Facebook, Cambridge Analytica sued in US by users over data harvesting.
- Swiggy partners with ICICI bank to launch digital payment solutions for its delivery fleet.
- Flipkart infuses ₹518 crore of fresh capital into payments app ‘PhonePe’.
- Paytm gets SEBI approval to roll out its investment advisory arm, Paytm Money.
- Ola launches operations in second Australian city, Sydney.
- Uber halts self-driving tests after pedestrian killed in Arizona.
- Mumbai’s Chhatrapati Shivaji International Airport ranked as the World’s Best Airport for customer
experience.
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 30-Mar | 28-Feb | % 1M | 01-Jan | % since Jan |
| BSE | 32969 | 34184 | -3.56% | 33813 | -2.50% |
| NSE | 10114 | 10493 | -3.61% | 10436 | -3.08% |
| DOW | 24103 | 25029 | -3.70% | 24719 | -2.49% |
| NASDAQ | 7063 | 7273 | -2.88% | 6903 | 2.32% |
| FTSE | 7057 | 7057 | -2.42% | 7688 | -8.21% |
| Nikkei | 21454 | 22068 | -2.78% | 22765 | -5.76% |
| Hang Seng | 30093 | 30845 | -2.44% | 29919 | 0.58% |
| Straits Times | 3428 | 3518 | -2.56% | 3403 | 0.74% |
| Shanghai | 3169 | 3259 | -2.78% | 3307 | -4.18% |
| USD | 65.17 | 65.27 | -0.16% | 63.68 | 2.35% |
| Euro | 80.32 | 79.62 | 0.87% | 76.48 | 5.02% |
| GBP | 91.31 | 89.79 | 1.69% | 86.06 | 6.11% |
| Yen/100INR | 0.61 | 0.61 | 0.29% | 0.56 | 8.57% |
| Gold | 30408 | 30365 | 0.14% | 29123 | 4.41% |
| Silver | 38322 | 38167 | 0.41% | 39176 | -2.18% |
| Crude Brent $ | 69.34 | 64.71 | 7.15% | 67.13 | 3.29% |
| Crude Nymex $ | 64.91 | 61.71 | 5.19% | 60.62 | 7.08% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors | BANK NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 30-Mar | 24263 | 12512 | 10821 | 26127 | 8358 |
| 28-Feb | 25107 | 12809 | 11157 | 26514 | 8960 |
| % 1M | -3.36% | -2.32% | -3.01% | -1.46% | -6.72% |
| 01-Jan | 25318 | 11566 | 11891 | 26686 | 9618 |
| % since Jan | -4.17% | 8.18% | -8.99% | -2.09% | -13.10% |
| INDIAN TRADE( USD MILLION) | |
|---|---|
| Exports | 25834 |
| Imports | 37814 |
| FDI | 1921 |
| Government Bond 10Y | 7.40% |
| GDP YoY | 7.20% |
| Inflation Rate | 4.44% |
| Forex Reserves $ M | 442533 |
| IIP % | 7.50% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs.crore) | MF (Rs.crore) |
| Equity | 13372 | 4958 |
| Debt | (7298) | 31042 |
| Total 1 M | 6075 | 36001 |
| Total Since Jan | 12982 | 110074 |
| Equity | 14883 | 29781 |
| Debt | (1901) | 80293 |
