Economy / Market Snapshot – December 2016

General News

• PM Modi in a nation wide address announces few measures for farmers, small traders, housing sector
  and women.
• No new measures on demonetisation were included though PM acknowledged the inconveniences
  faced by people following the note ban.
• PM Modi launched BHIM: Bharat Interface for Money, a new e-wallet app at the DigiDhan Mela.
• Govt announced various measures to promote cashless transactions, including 0.75% discount on
  digital payments at petrol stations and lucky draws.
• Service tax on card transactions up to Rs 2,000, tax for small traders and businesses with a turnover of
  up to Rs 2 crores on digital transactions were lifted.
• Govt clarifies no tax on ancestral jewellery, purchase from disclosed income.
• Income tax raids in Delhi, Chennai and other parts of the country yield large cache of black money,
  gold bars.
• TN Chief Secretary P Rama Mohana Rao’s Chennai home raided by IT Officials, following which he was
  removed from the post.
• Election Commission asks IT authorities to look into finances of 200 parties.
• Rs 104 crores deposited in BSP’s party after note ban came under scanner.
• Rahul Gandhi-led Congress delegation met Narendra Modi on farmers’ woes.
• Winter Session of Parliament concluded with govt and opposition blaming each other for disruptions.
• The Rights of Persons with Disabilities Bill, 2016 was passed by the Houses of Parliament.
• Congress releases Sahara diaries targeting PM Modi.
• Delhi former CM Sheila Dikshit junks Sahara diaries after her name appears in the list.
• Delhi LG Najeeb Jung submits resignation; Former top IAS officer Anil Baijal appointed as Delhi LG.
• Delhi Court dismisses petition asking for documents from Congress in the National Herald Case.
• Govt to install laser walls at Indo-Pak border to thwart infiltration attempt.
• Centre approves Rs 2,000 crores package for Pakistan occupied Jammu and Kashmir (POJK) refugees.
• J Jayalalithaa, died on December 5, nearly three months after she was admitted for fever and
  dehydration.
• O Paneerselvam sworn in as TN CM, late J Jayalalithaa’s aide Sasikala appointed AIADMK chief.
• Severe cyclonic storm Vardah severely hit Chennai and its suburbs.
• Fresh power play in UP as CM Akhilesh and Shivpal Yadav come up with their own list of candidates.
• Akhilesh Yadav was expelled from the party and later taken back.
• India’s most lethal missile Agni-V successfully tested.
• Justice J.S. Khehar appointed as the 44th Chief Justice of India.
• Outgoing Obama administration announces sanctions in retaliation for Russian election meddling.
• Obama expels 35 Russian diplomats and closes two diplomatic compounds.
• Russia shuts down American school, vacation house in Moscow in retaliation.
• Donald Trump picks Exxon Mobil CEO Rex Tillerson for Secretary of State and Indra Nooyi to the
  President’s Strategic and Policy Forum.
• White House also blocks new leases for oil and gas drilling in sections of the Arctic and Atlantic.
• US President Barak Obama cancels 9/11-era registry for Muslims.
• Syrian army retakes complete control of Aleppo in victory for President Bashar al-Assad.
• Turkey, Russia agree on a ceasefire for the whole of Syria.
• Former Portuguese Prime Minister Antonio Guterres sworn in as UN secretary-general.
• New Zealand Prime Minister John Key resigns; Bill English becomes next Prime Minister.
• Australia should be republic after Queen Elizabeth II’s reign, claimed Australian Prime Minister
  Malcolm Turnbull.
• A Libyan plane with 118 on board hijacked, later hijackers surrender after releasing Libyan
  passengers.
• Former Sri Lankan PM Ratnasiri Wickremanayake passed away.
• Pakistan appoints Lt Gen Naveed Mukhtar as new ISI chief.
• Pakistan frees 220 Indian fishermen as a goodwill gesture.
• South Korea President Park impeached over corruption scandal.
• Italian PM Matteo Renzi announces resignation after losing referendum.
• French Prime Minister Manuel Valls quits to enter Presidential race; Bernard Cazeneuve appointed as
  French PM.
• IMF chief Christine Lagarde faced trial in France over payout to a French businessman.
• Christine Lagarde keeps IMF job, escapes penalty after negligence conviction.
• Sushma Swaraj was named in the ‘Decision-makers’ category in the Global Thinkers of 2016 List
  compiled by the Foreign Policy magazine.
• Vladimir Putin is world’s most powerful man, PM Modi in 9th spot: Forbes.
• Donald Trump named as Time magazine’s person of the year.
• Yoga makes it to UNESCO’s intangible cultural heritage list.
• India beats England by an innings and 75 runs in the 4th test, wins the five-match series 4-0.
• Virat Kohli (235) became the 1st Indian and the 5th batsman overall to score 3 double tons in a
  calendar year.
• International Boxing Association grants full membership to Boxing Federation of India.
• Mary Kom receives Legends Award and Vikas Krishnan AIBA Pro Boxing Best Boxer trophy at AIBA
  70th anniversary gala.
• Virat Kohli named captain of the ICC ODI Team of the Year, R Jadeja and R Sharma also in the team.
• R Ashwin named Test Cricketer of the year 2016 and Cricketer of the year.
• India women’s team beat Pakistan by 17 runs to win Asia Cup T20 for the sixth time.
• India beat Belgium 2-1 to win Junior Hockey World Cup title.
• India beat hosts Sri Lanka by 34 runs to lift Under-19 Asia Cup.
• Former World No.1 Ana Ivanovic retires from tennis at age 29.

Business News

• RBI keeps repo rate unchanged at 6.25%; withdraws incremental CRR.
• RBI cuts growth forecast to 7.1%, sees short-term disruption due to demonetisation.
• Nearly 12 lakh crore old notes deposited in banks so far: RBI.
• Demonetisation could push inflation to 14-month low: Reuters poll.
• Asian Development Bank slashes India’s 2016 growth estimate to 7% from the previous 7.4%.
• India overtakes Britain as the world’s sixth largest economy.
• Global merger & acquisition deal tally hits $3.1 trillion mark in 2016: Report.
• NusliWadia files a criminal defamation suit against Tata and other board members.
• Tata Sons slaps legal notice on Cyrus Mistry for breach of confidentiality.
• Tata Sons asks Cyrus Mistry to return documents with confidential info.
• Salaries through banks ordinance gets President’s nod.
• NITI Aayog, NASSCOM, Telcos announce 14444 helpline for digital payment queries.
• Chitra Ramkrishna resigned as NSE MD and CEO; J Ravichandran took charge for interim period.
• V.K. Sharma appointed LIC chief for five years.
• Sachin Bansal and Binny Bansal chosen “2016 Asian of the Year – The Disruptors” by the Straits Times.
• Indian origin Vivek Ramaswamy(24th) and Apoorva Mehta(31st) included in Forbes’ under 40 Richest
  Entrepreneurs list.
• HDFC bank sacks 4 employees, including branch manager over unauthorised exchange of notes.
• SBI saving accounts swell by Rs 1 lakh crore post demonetisation.
• AU Financiers gets final licence from RBI to start small finance bank.
• FM Arun Jaitley urges GST Council to adhere to roll-out calendar.
• TCS, Deloitte Touche, EY and Tally Solutions among the 34 firms shortlisted for GST services.
• Deutsche Bank to pay $7.2 billion to settle US subprime mortgage case.
• Credit Suisse agrees to pay $5.3 billion to settle US mortgage case.
• New Reliance Jio subscribers get free data and voice offer till March 31.
• Existing Jio subscribers to be auto-migrated to the “Happy New Year” offer.
• Interest rates on provident fund deposits slashed to 8.65% for FY17.
• Morgan Stanley and Vanguard trims Flipkart’s valuation to $7.3 billion.
• China’s per-capita touches $ 8000, 70% poverty eradicated.
• Production in leather clusters down by 60% due to demonetisation: ASSOCHAM.
• US fines Deloitte record $8 million over audit fraud in Brazil.
• EU clears $26 billion Microsoft-LinkedIn deal.
• Samsung wins over Apple in $399 million patent appeal.
• Toyota Fortuner crosses 1 lakh sales milestone in India.
• IOC, BPCL, HPCL join hands to set up India’s biggest oil refinery.
• MoUs for 5 2G ethanol plants signed at Petrotech 2016.
• Japan drags India to WTO against certain measures on imports of iron and steel products.
• ED summons AirAsia India over alleged FEMA violation.
• Canara Bank raises Rs 1,000 crores through issue of Basel III-compliant bonds.
• Byju’s raises funds from World Bank arm, International Finance Corporation (IFC).
• Global drug market to reach $1.5 trillion in 2021, up 33% from 2016 levels: Study.
• Cipla to set up manufacturing facility for pharmaceuticals in Iran.
• Yahoo says one billion accounts exposed in security breach in August 2013,
• Facebook gets over 6,000 data requests from Indian government agencies in the first half of 2016.
• Snapdeal launches Cash@Home service which delivers Rs 2,000 at the doorstep.
• Pakistan lifts undeclared ban on Indian cotton imports.
• US Fed raises key interest rate by 0.25%.
• Online travel firm Yatra was listed on Nasdaq.

Market News

• Indian markets marginally down last month; IT up by 3%; FMCG up by 1% while Auto neutral;
• Pharma down by 7% and Bank Nifty down by 2%
• FII’s net sellers of Rs.7,800 crores in the equity market and Rs.19,400 crores in Debt market; Indian
  mutual funds net buyers in both the markets
• US, UK and Japan Markets significantly up last month;
• Asian markets negative – Shanghai and Hangseng significantly down;
• Major currencies did well against Indian Rupee; US $ hovering around Rs.68 a dollar.
• Gold and Silver prices dropped.