Dear Colleagues,
I am pleased to attach the Economy / Market Snapshot covering all the major events in August, 2016.
Indian markets are at their highs with Sensex crossing 28,000 mark and Nifty crossing 8,750 mark. FII’s and domestic mutual funds continued to bet on the markets; FII’s have invested Rs.8,800 crores in the Equity market in August, 2016. Except IT, all the sector indices went up. Bank Index went up by 4% while IT index lost 4%. Public sector banks like SBI, Canara Bank have gained considerably post the quarterly results.
The highlight of the week was the listing of RBL Bank (Ratnakar Bank Limited) which got listed on 31^st August, 2016. The shares were subscribed over 69 times with the issue price of Rs.225 per share. Today, the share closed at Rs.305, an increase of 36% in just two days of listing; It is all the timing when the market is going up and the appetite is high ! US / UK markets were stable; China market zoomed by 4%; Gold and Silver lost by 3% and 7% respectively; Crude went up by 8% resulting in increase in Petrol and Diesel prices last night;
GST bill was finally approved both in Rajya Sabha and Lok Sabha unanimously paving way for merger of several indirect taxes. More and more states have started approving the GST bill; Concerns on the timing of implementation remains; Olympic games concluded last month with India scoring 1 silver and 1 bronze medal; the winners were promptly rewarded with monetary and non-monetary awards.
Couple of days back, England scored 444 runs in 50 overs, the highest ever in an one day international against Pakistan! Of course they won the match.
Happy reading!
Regards
V Murali
General News
- GST Bill was passed in Rajya Sabha on August 3rd with 203 members voting in favour, in the 243-
member house. AIADMK members staged walkout - On August 9th GST was passed in Lok Sabha with 443 members favouring it;
- Assam, Bihar, Jharkhand, Chhattisgarh, Gujarat, Himachal Pradesh, Maharashtra, Madhya Pradesh and Telangana have passed the GST Bill.
- Mehbooba Mufti met PM Modi to update on the situation. An all-party delegation to visit Kashmir in September. Omar Abdullah-led opposition delegation met PM Modi.
- After 52 days of deadlock, curfew lifted in most parts of Kashmir.
- India’s Scorpene submarine’s data spreading over 22,000 pages was revealed in Australian media.
- Narendra Modi, Vladimir Putin and J Jayalalithaa dedicated to the nation the first 1,000 MW unit of the Kudankulam Nuclear Power Project (KNPP) via video conference.
- John Kerry met Sushma Swaraj in Delhi. US promises to look into visa concerns of IT industry
- India-US military cooperation deal was finalised during Manohar Parrikar’s ongoing US visit.
- Singur Tata plant: Supreme Court quashes acquisition, orders Bengal government to return land in 12weeks.
- 70th Independence Day was celebrated across India with fervour, Narendra Modi’s address the Nation.
- PM Modi’s Independence Day speech included Pakistan’s oppression in Balochistan.
- A R Rahman paid tribute to M S Subbulakshmi at the United Nations on India’s 70th Independence Day on occasion of her birth centenary.
- Sushma Swaraj meets Aung San Suu Kyi; the first high-level visit from India to Myanmar after the
latter’s party assumed power. - Vijay Rupani was elected as the new Gujarat CM; Nitin Patel as the Deputy CM.
- Najma Heptullah, V.P Singh Badnore, Banwarilal Purohit and Jagdish Mukhi appointed as the new
Governors of Manipur, Punjab, Assam and Andaman and Nicobar Islands respectively. - Arvind Kejriwal loses turf battle to Delhi Lt Governor, moves to Supreme Court. LG Najeeb Jung forms panel to examine around 400 files of AAP government.
- Justice SN Dhingra Commission which probes the controversial land deals in Haryana, involving Vadra and his firms, submitted its report.
- Heavy rain caused several rivers, tributaries of the Ganga, to flood and rise to record levels. Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan and Uttarakhand under the impact of floods; more than 26,400 were rescued by the National Disaster Response Force.
- Railway budget’s 92-year-old journey set to end in 2017; Finance Ministry accepted Railway Minister’s proposal to merge it with the General Budget.
- Irom Sharmila ended her 16 years long fast on 9th August; decides to plunge into politics.
- Maoist chief Prachanda elected as Nepal’s new Prime Minister.
- An earthquake, measuring 6.2 on the moment magnitude scale, hit Central Italy on 24 August; quake death toll hits 284 on day of mass funeral.
- US’s military and economic aid to Pakistan shrinks amid mounting frustration over militants.
- Rio Olympics: Started on August 5th with Abhinav Bindra leading the Indian Contingent.
- Wrestler Sakshi Malik opened India’ medal account with a Bronze followed by PV Sindhu with a Silver in Women’s Badminton. Gymnast Dipa Karmakar finished fourth in the Vaults finals.
- Sakshi Malik was the flag bearer at the closing ceremony of the Rio Olympics which concluded on
August 21st. U.S, Great Britain and China topped the medal table. - Michael Phelps and Usain Bolt ended their Olympic careers in Rio.
- Narsingh Yadav was ousted from Olympics; faces a 4 year ban by The Court of Arbitration of Sports
- India becomes No. 1 Test team in the world.
- PV Sindhu, Sakshi Malik, Dipa Karmakar and Jitu Rai have been conferred with Rajiv Gandhi Khel
Ratna awards. - Dipa Karmakar’s coach Bishweshwar Nandi nominated for the Dronacharya Award.
- Cricketer Ajinkya Rahane, hockey player VR Raghunath, athlete Lalita Babar, boxer Shiva Thapa and shooter Apurvi Chandela to receive the Arjuna Award.
- Sachin Tendulkar gifts BMW cars to PV Sindhu, Sakshi Malik, Dipa Karmakar, coach Pullela
Gopichand. - India lose first T20 International by one run against West Windies. The 2nd T20 was washed out on Sunday. Windies won the two-match series 1-0.
- England set a world record for an innings in one-dayers, scoring 444/3 against Pakistan.
- Gujarat to host 2016 Kabaddi World Cup.
- Nita Ambani elected as the first Indian International Olympic Committee (IOC) member.
Business News
- Urjit Patel appointed as Governor of Reserve Bank of India.
- Zee Entertainment sells Ten Sports to Sony Pictures for Rs 2,600 crores.
- Uber merged its China service With Didi Chuxing in a massive $35 billion deal.
- EU orders Apple to pay up to 13 billion euros tax to Ireland; Ireland and Apple to challenge it.
- Centre plans to lower Employees’ State Insurance (ESI) contribution rate to 4%.
- RBI launches portal to curb illegal money pooling by firms.
- RBI, govt will work to contain inflation at 4 per cent: Narendra Modi.
- Reliance industries seeks shareholders’ nod to raise Rs 10,000 crores via NCD
- SEBI releases discussion paper for regulations on algorithmic trading.
- Google executive Chris Urmson quits self-driving car project .
- Apple acquires machine learning and AI startup Turi for $200 million.
- Monetary policy review: RBI leaves repo rate unchanged at 6.50 percent.
- RBI retains growth projection at 7.6 per cent, warns of global impact.
- Randstad to buy jobs portal Monster for $429 million.
- London Metal Exchange is back with gold and silver contracts after 30 years.
- Apollo Tyres declares 200% dividend.
- Airtel completes acquisition of 4G airwaves in Orissa.
- Greenko raises $500 million via India’s first high yield green bond
- US approves sale of arms worth $1.15 billion to Saudi Arabia.
- Hindustan Copper Limited inaugurates country’s first facility to produce nickel.
- UK to provide £4.5 million for smart cities mission.
- Google fined $6.8 million for breaking Russian antitrust rules.
- Industrial production expands 2.1 per cent in June.
- Government notifies revised tax treaty with Mauritius.
- ONGC sets up Rs. 100-crores fund for start-ups.
- India’s wholesale price inflation in July more than doubles to 3.55%.
- Infosys says 3,000 people to be reallocated after RBS project loss.
- India rises to 66th rank in innovation.
- Mark Zuckerberg sells $95 million in Facebook shares for Charity.
- India’s air traffic grows over 25% in July from year-ago period.
- Narayana Murthy was named in Fortune’s greatest entrepreneurs list.
- UK welcomes first London sale of rupee bond from HDFC.
- Japan cabinet approves $130 billion in fiscal steps to boost growth.
- American big car maker Jeep brings Wrangler Unlimited and the Grand Cherokee to India.
- Lupin to buy 21 generic brands from Japan’s Shionogi for $150 million.
- Government is set to ban cash transactions over Rs 3 lakhs.
- Centre rejects Infosys’ proposal to set up IT SEZ in West Bengal.
- Railways hikes coal freight rates by 8-14% for distances between 100-700 km.
- Anil Ambani’s elder son Jai Anmol joins Reliance Capital board.
- India ranks 7th in the top 10 wealthiest countries in the world with a total individual wealth of $5,600 billion; U.S tops the chart.
- Google, Colgate and LG were ranked the top three brands in the Indian market.
- Ratan Tata, Nandan Nilekani to start microfinance company, Avanti Capital.
- Microsoft sells MSN China operations to its local partner Xichuang Technology (Beijing) Co.
Q1 Results
- SBI Q1 net profit down 31.72 per cent at Rs 2520.96 crores; Net NPAs at 4.05 per cent
- TechMahindra beats Q1 estimates, PAT down 9.5% QoQ to Rs 796.5 crores.
- Voltas Q1 net profit jumps 53.7% to Rs 157.62 crores.
- Indian Bank Q1 Net Profit Zooms 43% To Rs. 307 Crores.
- HCL Tech Q1 profit, revenue up 6%; expects FY17 revenue growth at 12-14%
- Sun TV Q1 net profit rises 19% to Rs 233.1 crores.
- Jet Airways Q1 profit slumps 53.5% to Rs103 crores.
- Central Bank of India posts Rs600 crores loss in Q1.
- Bosch posts marginal rise in profit at Rs 378.72 crores in Q1.
- Industrial Finance Corporation of India (IFCI) reports net loss of Rs. 110 crores in Q1.
- Cognizant Q2 Net Dips 40% To $252.4 Million On Higher Tax Provision.
- Amara Raja Batteries Q1 net up at Rs. 130.6 crores.
- Birla Corp’s net profit jumps over three-fold to Rs 94 crores in Q1 FY2017.
- Lupin Q1 profit jumps 55% to Rs 882 crores, US biz surges 82%.
- IDBI Bank reports 78% jump in Q1 profit; GNPA rises to 11.92%
- Godrej Industries Q1 net up at Rs 64 crores.
- Bank of Baroda Q1 profit falls 59.74% to Rs423 crores.
- M&M reports 16% jump in Q1 net profit; volume climbs 9.7% to 1.11 lakh units.
- Hindustan Petroleum Corporation Ltd Q1 net profit up 30% at Rs 2,098 crores.
- Hindustan Copper reported a net loss of Rs. 2.88 crore for the quarter ended June 30, 2016.
- IOC Q1 net profit up 25.4% YoY to Rs 8,270 crores; board approves 1:1 bonus.
Market News
- Indian markets went up by 1.50%; Nifty and Sensex touched high.
- Bank, Auto, FMCG winners; IT and Pharma losers
- FII and Mutual Funds net buyers in the market
- US and UK markets neutral with positive bias; China and Hong Kong markets up
- Gold down by 3%; Silver down by 7%
- Crude up by 8%
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 31- Jul | 30- Jun | % 1M | 01- Jan | % since Jan |
| BSE | 28,452 | 28,052 | 1.43% | 26,161 | 8.76% |
| NSE | 8,786 | 8,639 | 1.71% | 7,963 | 10.34% |
| DOW | 18,401 | 18,432 | -0.17% | 17,425 | 5.60% |
| NASDAQ | 5,213 | 5,162 | 0.99% | 5,007 | 4.11% |
| FTSE | 6,782 | 6,724 | 0.85% | 6,242 | 8.64% |
| Nikkei | 16,887 | 16,569 | 1.92% | 19,034 | -11.28% |
| Hang Seng | 22,977 | 21,891 | 4.96% | 21,914 | 4.85% |
| Straits Times | 2,821 | 2,869 | -1.68% | 2,883 | -2.16% |
| Shanghai | 3,085 | 2,979 | 3.56% | 3,539 | -12.82% |
| USD | 66.97 | 67.02 | -0.07% | 66.23 | 1.12% |
| Euro | 74.57 | 74.50 | 0.09% | 71.92 | 3.68% |
| GBP | 87.96 | 88.15 | -0.22% | 97.88 | -10.13% |
| Yen/100INR | 0.65 | 0.65 | 0.00% | 0.55 | 18.18% |
| Gold | 30,718 | 31,549 | -2.63% | 26,320 | 16.71% |
| Silver | 44,062 | 47,480 | -7.20% | 33,080 | 33.20% |
| Crude Brent $ | 47.16 | 43.53 | 8.34% | 37.28 | 26.50% |
| Crude Nymex $ | 45.06 | 41.60 | 8.32% | 37.09 | 21.49% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors | BANK NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 31- Aug | 19,788 | 10,496 | 9,876 | 22,506 | 11,457 |
| 30- Jul | 18,953 | 10,913 | 9,471 | 22,229 | 11,697 |
| % 1M | 4.40% | -3.82% | 4.27% | 1.25% | -2.05% |
| 01- Jan | 17039 | 11175 | 8328 | 20185 | 11980 |
| % since Jan | 16.13% | -6.07% | 18.58% | 11.50% | -4.37% |
| INDIAN TRADE( USD MILLION) | |
|---|---|
| Exports | 21690 |
| Imports | 29451 |
| FDI | 1547 |
| Government Bond 10Y | 7.11% |
| GDP YoY | 7.10% |
| Inflation Rate | 6.07% |
| Forex Reserves $ M | 367170 |
| IIP % | 0.70% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs.crore) | MF (Rs.crore) |
| Equity | 8863 | 1908 |
| Debt | -2208 | 13944 |
| Total 1 M | 6655 | 15852 |
| Total Since Jan | 37762 | 239278 |
| Equity | 35905 | 10811 |
| Debt | 1857 | 228467 |
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