Dear Colleagues
I am pleased to attach the Economy / Market Snapshot covering all the major events in April, 2020
Financial Year 2020-2021 began with the lock down erasing a complete month in our history; No business could take place except for the testing and hospitalization of Covid patients and availability of essentials like vegetables, fruits and other essentials in the market. All of us learnt to live and work from home. Each one has different problems and each business has several issues for solutions to be found in the near future. Many businesses and individuals are worried about the dark side of the future. One month of lockdown has shaken everyone and has taught many lessons.
Indian Markets bounced back with a gain of 14% last month after losing 23% in March thus trailing only by 9% from March but 19% since January, 2020. Nifty is close to 10,000 mark and we need to see whether this is just a relief rally after a deep cut or we will sustain this rally and move forward. On the sectoral indices, Pharma gained the most with 30%, Auto gaining 25%, Bank Nifty gaining 12%, IT gaining 11% and FMCG gaining 5%. FII’s pulled out 3,000 crores from the equity market while Domestic Institutions pulled out 6,700 crores from the equity market. Indian Rupee closed at Rs.75.11 for 1 US $.
On the Global markets front, DOW gained 11%, Nasdaq gained 15%, FTSE gained 4%, Nikkei gained 7%, Hang Seng gained 4% and Shanghai gained 4%. On the commodities side, Gold and Silver went up by 4% each. Brent Crude gained by 17% and currently trading at $ 27 a barrel after touching record lows of less than $15 per barrel.
With the news of opening up of the lock down in multiple countries and the fact that the lock down in India will conclude by 3rd May, 2020 and the Government’s thinking of opening the economy in phases based on the criticality of the zones, we need to see how well the opening will be managed. The Governments have taken extraordinary steps during this lock down to flatten the curve and we need to see how this is contained once the economy is opened up. We cannot afford to see another wave and the virus scare should go away once for all for the economy to survive. Maruti has reported ZERO sale in April and the GST collections have dropped by a whopping 75%; we will get more bad news in the days to come; it is equally a tough time for the government to find various avenues to announce relief measures. Among the major cities, Bangalore is expected to open on 4th May, 2020 but the other cities like Mumbai, Pune, Delhi, Hyderabad and Chennai are not likely to be opened for some time or may be limited to few green zones. Hopefully movements will be permitted within the State and then Inter State and the airports are likely to opened in May is the best case scenario.
While the government has done its part, it is the responsibility of each of the citizens to practice social distancing, good hygiene and support and co operate with the processes set up by the Government and work towards containment of the virus and move forward to repair the massive damage created in just one month. Let us all work hard in a responsible manner and build our nation back to the glorious past!!
Happy reading!……
Regards
V Murali
General News
- Global Coronavirus death toll touches 234,112 with 3,308,513 cases registered.
- Death toll in India reaches 1,154, cases surge to 35,043; recovery rate improves to 25%.
- Maharashtra, Delhi, Gujarat account for half of India’s COVID cases.
- PM Modi extends COVID-19 lockdown till May 3, makes wearing masks in public places mandatory.
- Nations eye COVID-19 lockdown extensions as global cases rise.
- PM asks CMs to continue the lockdown in hotspots beyond May 3, ease restrictions in non-hotspot areas.
- Govt launches mobile app AarogyaSetu to track spread of COVID-19.
- All social, political, sports, religious functions, religious places, places of worship closed till May 3: MHA.
- Govt appeals people to avoid religious congregation, adhere to social distancing during lockdown.
- Inter-state, inter-district movement of people, metro, bus services continue to be prohibited till May 3.
- Centre allows neighbourhood and standalone shops to reopen; malls, restaurants, hair salons, liquor shops to stay closed.
- Govt issues guidelines on use of AC, coolers, Fans amid Coronavirus outbreak.
- Govt extends regular and e-visas of all foreigners stranded in India till May 3.
- Centre approves COVID-19 Emergency Response and Health System Preparedness package for States, UTs.
- Centre plans Red, Orange, Green zones to navigate through lockdown.
- President approves ordinance making violence against COVID doctors, healthcare workers punishable offence.
- Central government asks States to ensure safety, shelter and food for stranded migrant workers.
- Center makes over 50 crore poor people eligible for free COVID-19 testing, treatment under Ayushman Bharat scheme.
- King George Medical University in Lucknow becomes 1st govt hospital in country to successfully launch Plasma Therapy Treatment for COVID-19.
- Record 1.5 lakh million tonne free rice distributed in a single day in UP, 72 lakh families covered.
- Bihar transfers money to bank accounts of over 1 lakh stranded migrant workers.
- Delhi govt announces ₹1 crore to families of those who die serving COVID-19 patients.
- Goa, Manipur, Tripura, Sikkim, Nagaland, Arunachal Pradesh declared COVID-19 free.
- HRD Ministry Ramesh Pokhriyal Nishank launches VidyaDaan 2.0 to facilitate e-learning for students.
- UGC releases guidelines on Exams & Academic Calendar for Universities.
- CBSE to promote students of class 1st to 8th to next grade; to conduct only main exams of 10th and 12th.
- Election Commission further defers Rajya Sabha polls for 18 seats.
- Madhya Pradesh Cabinet expansion: Five ministers inducted into cabinet, 2 Congress rebels among them.
- Monsoon rainfall to be normal this year, expected to hit Thiruvananthapuram in Kerala on June 1: IMD.
- Centre amends domicile rules for J&K, makes everyone living in UT for 15 years eligible.
- Mehbooba Mufti shifted from a make-shift jail to her residence, detention continues.
- Zoos in India put on high alert after Bronx Zoo tiger tests positive for COVID-19.
- Internet not a fundamental right, being used by ‘terror handlers’: J&K to SC on restoring 4G.
- India’s defence exports rise over 5 times to ₹15,000 crores in last 4 years.
- Worldwide military expenditure in 2019 reached $1.92 trillion, India at 3rd place after US and China.
- Millions of Coronavirus patients who lack health insurance will be covered: US govt.
- Donald Trump announces visa sanctions on countries refusing to accept their citizens.
- Trump signs executive order to temporarily suspend immigration into US; extends H1-B visas and allows those who lose jobs to stay on 8 months.
- Donald Trump signs fourth coronavirus relief package worth $484 billion, to aid employers, hospitals.
- Bernie Sanders drops out of the 2020 race, clearing Joe Biden’s path to the Democratic nomination.
- Taliban breaks off ‘fruitless’ talks with Afghan government on prisoner exchange.
- UN watchdog rules Syrian govt behind 2017 toxic attacks.
- Canada approves its largest economic aid program of $52 billion since WWII.
- China’s Wuhan declared COVID-19 free as last patient leaves hospital.
- Boris Johnson discharged from hospital seven days after being admitted for coronavirus symptoms.
- South Korea’s ruling party wins election landslide amid coronavirus outbreak.
- Japan bans entry of people from 87 countries, including Russia, Peru and Saudi Arabia.
- Saudi Arabia suspends Ramadan prayers at Holy Mosques.
- Iraq President nominates intel chief Mustafa al-Kadhimi as PM, country’s third Prime Minister in 10 weeks.
- Israel’s Netanyahu, rival Gantz sign unity government deal, ending long impasse.
- BCCI shares archival match footage with DD for free, to be telecast during coronavirus lockdown.
- India qualify for Women’s World Cup 2021 after ICC allocates points for cancelled series.
- Ben Stokes named Wisden Cricketer of the year 2019-20.
- Wimbledon cancelled for first time since World War II as coronavirus outbreak continues.
Business News
- Centre allows states to avail of up to 50% of their 2020-21 borrowing requirements in April itself.
- Centre allows jobs under MGNREGA from 20 April.
- Manufacturing units – producing essential goods & functioning from SEZs operate from April 20.
- Industries functioning in rural areas to resume operations from April 30 with strict social distancing norms.
- 30 crore poor gets ₹28,256 crore financial assistance under Pradhan Mantri Garib Kalyan Yojana.
- Union Cabinet clears proposal to give relief from insolvency for six months amid COVID-19 crisis.
- DA hike for Central Govt employees, pensioners put on hold till July 2021.
- Centre releases ₹34,053 crore in two phases as GST compensation to states.
- GST e-way bill validity extended, 10% ITC deferred.
- Interest on small savings schemes slashed by up to 1.4%, effective for first quarter of FY21.
- PPF rate slashed to 7.1%, lowest in 43 years.
- Firm, individual from country sharing border with India can invest only after govt approval: DPIIT.
- Govt approves plan to convert FCI’s surplus rice into ethanol.
- Government declares banking industry as public utility service till October 21.
- RBI lowers Reverse Repo Rate by 25bps, from 4% to 3.75%, Repo Rate remains unchanged.
- Liquidity Coverage Ratio requirement of banks brought down to 80% from 100%.
- ₹50,000 crore special financial facility announced for NABARD, SIDBI and NHB.
- Banks shall not announce dividends until further notice.
- 90-day NPA classification norm to exclude 3-month moratorium period till May-end.
- RBI increases Ways and Means Advances limit of states, UTs by 30%; increases overdraft period of states, UTs until September 30.
- RBI asks banks to extend all benefits announced by govt pertaining to short-term crop loans to farmers.
- Railways, airlines extend suspension of all services till May 3.
- Indian Railways converts 2500 coaches as isolation coaches.
- Govt notifies schemes with ₹48,000 crore incentive to boost electronics production.
- RBI cuts trading hours for forex, bond and money markets.
- SEBI relaxes AGM deadline for certain companies; gives time till September-end.
- SEBI cuts time gap on capital raising after buyback to six months from one year.
- RBI announces ₹50,000 crore special liquidity facility for mutual funds.
- Franklin Templeton shuts down six credit risk strategy debt funds.
- Axis Bank buys 29% in Max Life Insurance for ₹1,600 crore, raise its total stake to 30%.
- IRDAI asks health insurers to decide coronavirus treatment requests within 2 hours.
- Reliance General Insurance launches coronavirus protection insurance cover.
- NHAI resumes toll collection on National highways from April 20.
- UPI transactions drop in March to ₹2.06 lakh crore, RTGS shoots up 34% due to lockdown.
- G20 countries agree debt freeze for world’s poorest countries.
- World Bank approves $1 billion emergency aid for India.
- IMF approves nearly $1.4 billion to Pakistan to meet balance of payment crisis.
- EU Finance ministers agree €500 billion coronavirus rescue plan.
- Asian Development Bank assures $2.2 billion COVID-19 relief package to India.
- SAARC nations unveil emergency stimulus packages to tackle COVID-19 economic fallout.
- US President Donald Trump proposes $2 trillion infrastructure fund to spur economy.
- Australia’s Central Bank keeps record low rates, warns of ‘very large’ GDP slump.
- Government lifts curbs on exports of formulations made from Paracetamol amid COVID-19.
- India lifts temporary ban on exports of hydroxychloroquine, paracetamol.
- OPEC and Russia reach deal to historic 10 million barrel per day production cut.
- Crude oil prices hit lowest this century as coronavirus crisis hammers demand.
- BS-VI: India switches to world’s cleanest petrol, diesel with no increase in prices.
- Carmakers join global race to make ventilators amid virus crisis.
- Mahindra rejects plans to inject ₹3,078 crore in SsangYong.
- Ashok Leyland to resume operations at Alwar, Bhandara, Pantnagar plants.
- Tata Steel seeks £500 million government bailout in UK.
- Gold scales seven-year high on rising economic worries.
- State-run telecom company BSNL starts countrywide 4G rollout.
- Facebook buys 9.99% stake in Jio for ₹43,574 crore.
- Twitter, Facebook, Google join hands to fight coronavirus misinformation.
- Zoom rolls out new measures to tackle security breach as MHA warns against its use.
- Vodafone Group makes about ₹1,530 crore accelerated payment to Vodafone-Idea.
- Airtel signs ₹7,636 crore deal with Nokia to enhance 4G network, lay foundation for 5G network.
- Jio launches JioPOS lite app allowing regular subscribers to recharge other users and earn commission.
- Apple, Google partner on COVID-19 contact tracing technology via APIs, Bluetooth.
- Xerox abandons $35 billion hostile bid for HP.
- Doordarshan launches new channel ‘DD Retro’ to telecast all classic hit shows.
- E-commerce firms tie up with retailers and e-grocers to help in last mile delivery
- Amazon launches Local Shops program to tie up with local kirana stores; launches Pay later credit facility.
- JioMart gets a WhatsApp number, rolls out services in areas near Mumbai.
- Disney+ Hotstar launched in India, reaches 8 million paid subscribers within one week of launch.
- Mumbai Court denies interim bail to Yes Bank founder Rana Kapoor.
- Vijay Mallya loses UK High Court appeal in extradition case.
- Tarun Bajaj, Additional Secretary in the Prime Minister’s Office, appointed as new Economic Secretary.
- Sundar Pichai, Satya Nadella among 6 Indian-Americans on Trump’s list of Economic Advisers.
- IMF MD ropes in former RBI Governor Raghuram Rajan, 11 others to key external advisory group.
- Syndicate Bank, Andhra Bank chiefs appointed as OSDs in Canara Bank, Union Bank of India.
Q1 Results
- HDFC Bank Q4 net up 18% at ₹6,928 crore YoY; provisions double to ₹3,785 crore. GNPA eased to 1.26%.
- Axis Bank posts Q4 net loss at ₹1,388 crore as provisions more than double to ₹7,730 crore.
- IndusInd Bank Q4 Profit falls 77% to ₹302 crore QoQ as provisions spike 134%, NII grew by 5.1%.
- HDFC Life Insurance Q4 net profit drops 14.4% YoY to ₹311.71 crore, net premium income grew by 2.1%.
- Infosys reports 6% YoY rise in consolidated profit for Q4 at ₹4,321 crore, revenue rose 8% to ₹23,267 crore.
- Wipro Q4 profit falls 6.3% YoY to ₹2,326 crore, EBIT declined 2.9% at ₹2,692.5 crore.
- Mindtree Q4 net profit jumps 3.9% YoY to ₹206.2 crore; announces dividend of ₹10 per share.
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 30-Apr | 31-Mar | % 1M | 01-Jan | % since Jan |
| BSE | 33718 | 29468 | 14.42% | 41306 | -18.37% |
| NSE | 9860 | 8598 | 14.68% | 12183 | -19.07% |
| DOW | 24346 | 21917 | 11.08% | 28538 | -14.69% |
| NASDAQ | 8890 | 7700 | 15.45% | 8973 | -0.93% |
| FTSE | 5901 | 5672 | 4.04% | 7542 | -21.76% |
| Nikkei | 20194 | 18917 | 6.75% | 23657 | -14.64% |
| Hang Seng | 24644 | 23603 | 4.41% | 28190 | -12.58% |
| Straits Times | 2624 | 2481 | 5.76% | 3223 | -18.57% |
| Shanghai | 2860 | 2750 | 3.99% | 3050 | -6.23% |
| USD | 75.11 | 75.55 | -0.58% | 71.22 | 5.46% |
| Euro | 82.22 | 83.31 | -1.30% | 79.94 | 2.86% |
| GBP | 94.38 | 93.57 | 0.87% | 94.36 | 0.03% |
| Yen/100INR | 0.70 | 0.70 | -0.04% | 0.66 | 6.99% |
| Gold | 44906 | 43255 | 3.82% | 39067 | 14.95% |
| Silver | 40989 | 39523 | 3.71% | 46665 | -12.16% |
| Crude Brent $ | 26.72 | 22.74 | 17.50% | 66.29 | -59.69% |
| Crude Nymex $ | 19.44 | 20.56 | -5.45% | 61.30 | -68.29% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors | BANK NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 30-Apr | 21535 | 14108 | 5901 | 28669 | 9327 |
| 31-Mar | 19144 | 12764 | 4731 | 27319 | 7177 |
| % 1M | 12.49% | 10.54% | 24.73% | 4.94% | 29.97% |
| 01-Jan | 32103 | 15722 | 8210 | 30234 | 8047 |
| % since Jan | -32.92% | -10.26% | -28.12% | -5.18% | 15.91% |
| INDIAN TRADE(USD MILLION) | |
|---|---|
| Exports | 21410 |
| Imports | 31160 |
| FDI | 2873 |
| Government Bond 10Y | 6.11% |
| GDP YoY | 1.10% |
| Inflation Rate | 5.91% |
| Forex Reserves $ M | 479570 |
| IIP % | (2.80%) |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs. crore) | MF (Rs. crore) |
| Equity | (3,097) | (6,741) |
| Debt | (6,242) | 4,733 |
| Total 1 M | (9,338) | (2,009) |
| Total Since Jan | (1,35,891) | 75,494 |
| Equity | (57,332) | 29,320 |
| Debt | (78,559) | 46,175 |
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