Dear Colleagues,
I am pleased to attach the Economy / Market Snapshot covering all the major events in April, 2018.
Financial Year 2018-2019 started with a bang for the Indian Markets. Market went up by 6% with the Sensex crossing 35,000 mark again. All sectoral indices went up last month with IT leading with 12%, FMCG 10%, Pharma and Auto 8% and Banks 5%. This is despite the fact that the FII’s pulled out Rs.5,500 crores from the Equity market and Rs.10,000 crores from the Debt market. With the Crude prices going up to $ 75 a barrel (8% up from last month) and the FII’s selling, Indian Rupee peaked to Rs.66.66 against US Dollar. Domestic Institutions had put in Rs.9,500 crores in the Equity market and 25,000 crores in the Debt market which helped the market to go up. US Markets were neutral while London shot up by 6%. Asian markets were in Green except for Shanghai which lost about 3%. Gold went up by 2% and Silver went up by 1%.
Quarterly / Annual results started flowing and generally the results are good. Private sector banks have done well and most of the IT Companies have also reported good results. Elections in Karnataka will be held on 12th May and the results are expected on 15th May, 2018. Opinion polls have predicted a hung assembly with Kumaraswamy (former Chief Minister of Karnataka and Son of H D Deve Gowda, former Prime Minister of India) as a King Maker. PM Modi is expected to campaign vigorously in the next few days. Market will see some volatility at the time of results. Most important news of the month was the meeting between the North and South Korean leaders and North Korea talking about de-nuclearisation. Stage is set for the meeting between the North Korean President, Kim Jong Un and the US President, Donald Trump.
Rishad Premji, son of Wipro Chief Azim Premji has taken over as Chairman of Nasscom. He should be one of the youngest to take over the reins of Nasscom when Indian IT has started gaining strength over the last few months.
Regards
V Murali
General News
- PM Modi holds informal talks with Chinese President Xi Jinping in Wuhan, China.
- India, China agree on strategic guidance to armies for border peace.
- N Korea’s Kim Jong-un walks into S Korea for historic peace summit; both leaders agree to goal of complete denuclearisation of Korean Peninsula.
- PM Modi embarked on 5 day tri nation tour to Sweden, UK and Germany.
- PM Modi holds several bilateral talks on the sidelines of Commonwealth Heads of Government Meeting in London.
- India, Japan and US hold 9th trilateral meeting on connectivity and counter-terrorism.
- Sushma Swaraj and Nirmala Sitharaman attend the Shanghai Cooperation Organisation summit.
- Nirmala Sitharaman attends the 7th Moscow Conference on International security.
- DEFEXPO18: Major global and domestic military firms showcase latest weapons and platforms; Indian and Russian firms sign 7 deals for defence hardware.
- Cabinet approves amendments to Protection of Human Rights Bill, Fugitive Economic Offenders Ordinance 2018.
- President Kovind clears Centre’s ordinance seeking death penalty for child rapists.
- Congress holds nationwide fast to protest against Centre, non-functioning of Parliament.
- PM Modi leads BJP fast across India over ‘washout’ of Parliament proceedings.
- Karnataka elections: CM Siddaramaiah to contest from Chamundeshwari, Badami; B S Yeddyurappa from Shikaripura constituency.
- Andhra special status: N Chandrababu Naidu meets senior MPs in parliament to garner support.
- Telangana CM K Chandrasekhar Rao meets former PM Deve Gowda, DMK leaders M Karunanidhi, MK Stalin; discusses “Federal Front” for 2019 General election.
- Bharat Bandh: Dalit groups across the country protest against SC/ST Act dilution ruling.
- Former Union Minister Yashwant Sinha quits BJP.
- Pakistan violated ceasefire 633 times in 2 months: Govt tells Parliament.
- Centre to set up high-level committee for defence planning under national security adviser.
- Monsoon 2018: IMD forecasts normal rains this year; expects 97% of a long-term average.
- PMO directs I&B Ministry to withdraw its guidelines to regulate fake news.
- ISRO loses contact with communication satellite GSAT-6A; launches navigation satellite IRNSS-1I.
- Vice President Venkaiah Naidu rejects opposition’s impeachment notice against CJI Dipak Misra.
- Cauvery water dispute: SC directs Centre to formulate draft scheme by May 3.
- Indu Malhotra becomes first woman lawyer to take oath as Supreme Court Judge.
- Supreme Court dismisses petitions seeking probe into Judge Loya’s death.
- Delhi HC disposes of ₹10-crore defamation suit filed by Arun Jaitley against Arvind Kejriwal.
- 2G scam: CBI moves Delhi HC against acquittal of Essar promoters, others.
- Blackbuck poaching case: Salman Khan found guilty, gets 5 year jail term; other actors acquitted.
- Mortal remains of 38 Indians killed in Iraq arrive in Amritsar; PM announces ₹10-lakh ex-gratia.
- PM Modi inaugurates 1st health centre in Chhattisgarh under Ayushman Bharat Scheme.
- CBSE conducts re-exam for Class 12 economics; no re-test for Class 10 Maths paper.
- Delhi upgrades to Bharat Stage VI fuel norms, two years before the rest of India.
- 65th National Film Awards: Sridevi named Best Actress, Vinod Khanna honoured with Dadasaheb Phalke Award.
- US, France, Britain launch air strikes in Syria over suspected chemical attack.
- UNSC overwhelmingly rejects Russian resolution calling for condemnation of air strikes in Syria.
- CIA Director Mike Pompeo meets North Korea’s Kim Jong Un to discuss US-N Korea summit.
- France’s Emmanuel Macron lands in US; urges the US to engage more with the world.
- Nawaz Sharif disqualified from holding office for life; Foreign Minister Khwaja Asif disqualified as member of Parliament for holding UAE work permit.
- Cinema opens in Saudi Arabia, ending decades-old ban.
- Sri Lanka PM Ranil Wickremesinghe survives no-confidence motion.
- Malaysia’s Prime Minister Najib Razak dissolves Parliament, general elections on May 9.
- Commonwealth Games 2018: India finishes 3rd in the medal’s tally with 66 medals – 26 gold, 20 silver and 20 bronze; a total of 11 records were smashed by Indian sportspersons.
- IPL 2018 Season 11 begins; Chennai Super Kings at No. 1 in IPL points table.
- All 6 home IPL matches of CSK shifted out of Chennai amid Cauvery protests.
- Star India wins BCCI media rights for ₹6138.10 crores from 2018 to 2023 in first-ever e-auction.
- Rafael Nadal reclaims ATP top spot after Roger Federer slip-up in Miami Open.
- 2019 Cricket World Cup: India to start vs South Africa on June 5, play Pakistan on June 16.
Business News
- RBI holds repo rate unchanged at 6%, cuts inflation forecast for first half of FY19 to 4.7-5.1%.
- ATMs go dry in some states; govt ups the printing of ₹500 notes to tackle cash crunch.
- Intra-state e-way bill rolled out in 16 states and 1 union territory.
- GST mop-up at ₹7.41 lakh crore in July-March period; average monthly collection at ₹89,885 crores.
- Kerala, Karnataka, Andhra Pradesh and Puducherry govts say terms of reference of 15th Finance
- Govt meets ₹10 lakh crore credit disbursal target for FY18.
- Govt kickstarts merger process for 3 PSU general insurers.
- Govt raises NABARD’s authorised capital by six-times to ₹30,000 crores.
- Maharashtra CM Fadnavis approves Mumbai developmental plan 2034.
- 1.55 lakh post offices to be empowered as Payments Banks: Communications Minister Manoj Sinha.
- Singapore Exchange to list Indian equity derivative products in June 2018.
- SEBI hikes FPI investment limit for government debt, corporate bonds in 2 tranches.
- RBI drops Axis Bank, Karur Vyasa and South Indian Bank from list of bullion importers.
- Axis Bank board approves CEO Shikha Sharma’s request to reduce her new term to 7 months.
- SBI announces the launch of its UK subsidiary, SBI (UK) ltd, with an initial capital of £225 million.
- Govt intervenes in Nirav Modi firms’ bankruptcy case in US; CBI likely to file chargesheet in May.
- CBI questions Chanda Kochhar’s brother-in-law Rajiv Kochhar in Videocon loan case.
- CBI books Ex-UCO bank CMD Arun Kaul in connection with an alleged ₹621-crore loan fraud.
- RBI asks banks to stop services to those dealing in cryptocurrencies.
- Kotak Mahindra Bank pips SBI to become India’s second most valuable bank.
- Deposits in Jan Dhan accounts cross ₹80,000 crores as on April 11, 2018.
- TCS becomes first Indian technology firm to hit $100 billion in market capitalisation.
- Tech Mahindra partners with ChromaWay to deliver blockchain technology solutions to India.
- Infosys puts Skava, Panaya on sale.
- NASSCOM, techUK ink MoU for collaboration on tech skills.
- No junk food ads aimed at kids: FSSAI.
- China targets US soybeans, cars, planes with new 25% tariffs.
- SC refuses to allow out-of-court settlement for Binani Cement.
- Supreme Court stays NCLAT order on RCom’s tower assets sale to Jio.
- RBI asks payment operators to store data only in India, comply by October 15.
- Maruti Suzuki grabs 50% market share in passenger vehicles segment.
- Mahindra and Japan’s ShinMaywa Industries sign amphibious aircraft MoU.
- Boeing partners HAL, Mahindra for ‘Make in India’ Super Hornet fighter jets.
- Petrol, diesel rates hit 55-month high as global crude price rises.
- India sign MoU with Saudi Aramco on $44 billion refinery-petchem project.
- IndianOil buys 17% stake in Oman’s Mukhaizna oilfield.
- India’s manufacturing sector growth falls to 5-month low of 51.0 in March: PMI.
- Start-ups with up to ₹10 crore investments to get tax concession.
- India imposes 10% tax on import of key smartphone components.
- Xiaomi sets up three new smartphone manufacturing units in Tamil Nadu and Andhra Pradesh.
- India, Finland resolve Nokia tax dispute allowing Finnish firm to sell idle Chennai manufacturing plant.
- I run Facebook and I am responsible for everything: Mark Zuckerberg’s congressional testimony.
- Facebook suspends Canadian political firm AggregateIQ; partners with “BOOM” to spot false news.
- Federation of Indian Export Organisations, PayPal tie-up to empower SMEs in International transactions.
- PE, VC investments surge 60% to a record $26 billion in 2017.
- MFs garner over ₹67,000 crores in FY18 through SIP, an increase of 53% from the preceding fiscal.
- India pips Japan to become second largest crude steel manufacturer.
- India’s rice exports surge 18% to a record 12.7 million tonnes in 2017/18.
- MakeMyTrip, Flipkart announce strategic partnership to transform travel industry.
- Indian Hotels Company Ltd launches its first Taj property in Saudi Arabia in the city of Makkah.
- Tata Sons names former Foreign Secretary S Jaishankar as Group President, Global Corporate Affairs.
- Wipro’s Rishad Premji named NASSCOM chairman for 2018-19.
Commission unfair; PM Modi rejects allegations.
Q4 Results
- HDFC Bank’s Q4 net up 20% to ₹4,799.28 crores; GNPA at 1.30%, NII up 17.70% to ₹10,657.71 crores.
- Kotak Mahindra Bank Q4 net profit rises 15.1% YoY to ₹1,124 crores, GNPA declined to 0.98%.
- Yes Bank Q4 profit up 29% YoY at ₹1,179 crores, GNPA drops to 1.28%, Net NPA to 0.64%.
- IDFC Bank Q4 net profit plunges 76% to ₹41.93 crores, GNPA rises 3.31% to ₹1,779.06 crores.
- IndusInd Q4 net profit jumps 26.8% to ₹953.10 crores; GNPA rises 14% to ₹1,704.91 crores.
- TCS Q4 net profit rises 4.48% to ₹6,904 crores; Net sales increased 8.2% to ₹32,075 crores.
- Infosys Q4 net profit falls 28% to ₹3,690 crores; revenue comes at ₹18,083 crores.
- Mindtree Q4 net profit comes at 182.2 crores, reports revenue at ₹1,464 crores.
- Wipro Q4 profit fell 6.7% to ₹1,800 crores, rupee revenue from IT services at ₹13,412 crores, up 1.3%.
- LIC Housing Finance posted Q4 net profit at ₹539 crores, GNPAs stood at 0.78%, NNPA rose to 0.43%.
- HDFC Q4 net profit soars 39% to ₹2,846.22 crores, total income comes at ₹ 9,633.89 crores, up by 13%.
- DHFL Q4 profit jumps 25.8% to ₹312.4 crores, revenue grew by 18% to ₹2,802 crores.
- Maruti Suzuki Q4 profit rises 10% to ₹1,882 crores; announces ₹80 per share dividend.
- Biocon posts 2% rise in its consolidated net profit at ₹130 crores, revenue up 27% to ₹1,237 crores.
- ACC Q4 net profit up 19% at ₹250 crores, net sales increased by 14% at ₹3,557 crores.
- UltraTech Cement Q4 net profit falls 39% to ₹446 crores, revenue rose 29% ₹9,421 crores.
- Bharti Airtel Q4 net profit plunges to ₹83 crores; revenue fell over 3% to ₹19,634 crores.
- Reliance Jio posts 1.20% rise in Q4 net profit to ₹510 crores, EBIDTA rose 2.50% to ₹2,694 crores.
- Idea Cellular Q4 net loss widens to ₹962 crores, total income slipped 22% to ₹6,387.70 crores.
- Facebook revenue surges 49% to $12 billion in Q1 despite privacy scandal.
- Twitter reports $61 million profit in Q1 2018, has 336 million monthly active users.
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 30-Apr | 30-Mar | % 1M | 01-Jan | % since Jan |
| BSE | 35160 | 32969 | 6.65% | 33813 | 3.99% |
| NSE | 10739 | 10114 | 6.19% | 10436 | 2.91% |
| DOW | 24163 | 24103 | 0.25% | 24719 | -2.25% |
| NASDAQ | 7066 | 7063 | 0.04% | 6903 | 2.36% |
| FTSE | 7509 | 7057 | 6.42% | 7688 | -2.32% |
| Nikkei | 22468 | 21454 | 4.72% | 22765 | -1.30% |
| Hang Seng | 30808 | 30093 | 2.38% | 29919 | 2.97% |
| Straits Times | 3614 | 3428 | 5.42% | 3403 | 6.20% |
| Shanghai | 3082 | 3169 | -2.74% | 3307 | -6.80% |
| USD | 66.66 | 65.17 | 2.29% | 63.68 | 4.69% |
| Euro | 80.52 | 80.32 | 0.25% | 76.48 | 5.28% |
| GBP | 91.76 | 91.31 | 0.48% | 86.06 | 6.62% |
| Yen/100INR | 0.61 | 0.61 | -0.62% | 0.56 | 7.90% |
| Gold | 31036 | 30408 | 2.07% | 29123 | 6.57% |
| Silver | 38642 | 38322 | 0.84% | 39176 | -1.36% |
| Crude Brent $ | 74.91 | 69.34 | 8.03% | 67.13 | 11.59% |
| Crude Nymex $ | 68.81 | 64.91 | 6.01% | 60.62 | 13.51% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors BANK | NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 30-Mar | 25532 | 13986 | 11626 | 28773 | 9061 |
| 28-Feb | 24263 | 12512 | 10821 | 26127 | 8358 |
| % 1M | 5.23% | 11.79% | 7.43% | 10.12% | 8.41% |
| 01-Jan | 25318 | 11566 | 11891 | 26686 | 9618 |
| % since Jan | 0.84% | 20.93% | -2.23% | 7.82% | -5.80% |
| INDIAN TRADE( USD MILLION) | |
|---|---|
| Exports | 29110 |
| Imports | 42800 |
| FDI | 4007 |
| Government Bond 10Y | 7.77% |
| GDP YoY | 7.20% |
| Inflation Rate | 4.28% |
| Forex Reserves $ M | 423580 |
| IIP % | 7.10% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs. crore) | MF (Rs. crore) |
| Equity | (5552) | 9483 |
| Debt | (10036) | 25346 |
| Total 1 M | (15588) | 34828 |
| Total Since Jan | (2606) | 156135 |
| Equity | 9331 | 43561 |
| Debt | (11937) | 112573 |
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