Economy / Market Snapshot – February 2016

General

• Union Budget 2016-17: I-T slabs remain unchanged .
• Direct tax proposals result in revenue loss of 1,060 crores, Indirect tax proposals result in gain of ₹ 20,670 crores.
• The Economic Survey has revised India’s GDP growth range to 7 to 7.75 % for 2015-16 as against earlier government projected growth rate of 7 to 7.5%.
• Rail Budget 2016-17 : No hike in rail fares; increase in quota for senior citizens , women.
• 4 new trains including Antodaya, Tejas, Humsafar announced.
• Railway Minister announces a capital plan of Rs. 1,21,000 crores for 2016-17; claims action initiated on 139 budget announcements made last year.
• Indian Railways plans to garner Rs. 1,84,820 crores revenue in FY17.
• Railways to generate employment of 14 crore man-days.
• Make in India Week : Over a 1,000 companies and delegates from over 60 countries participated; garners Rs. 15.20 lakh crores investment proposals.
• Karnataka eyes over Rs. 2.5 lakh crore from global investors meet; approves IT projects worth Rs.3000 crores.
• SC clears the decks for Gail natural gas pipeline in Tamil Nadu.
• 12 nations sign Trans-Pacific Partnership trade deal.
• Bihar approves Rs. 16,960-crore metro rail project for Patna.
• Abu Dhabi crown prince visits India ; keen to invest Rs 35,000 crore in Indian highways.
• BJP , allies win 7 out of 12 Assembly seats in bypolls.
• DA case: SC begins hearing on Jayalalithaa’s acquittal.
• Election Laws (Amendment) Bill introduced in LS.
• Congress rebel Kalikho Pul sworn in as Arunachal CM.
• Government to spend Rs. 4,000 crores to develop first 20 smart cities.
• Subramanian Swamy moves SC for construction of Ram temple in Ayodhya.
• Narendra Modi gets Bihar’s support for Rs. 5 trillion power-reform agenda
• Congress, DMK firm up alliance in Tamil Nadu.
• Jawaharlal Nehru University (JNU) Students union protest against the execution of 2001 Parliament attack convict Afzal Guru and Kashmiri separatist leader Maqbool Bhat, and for Kashmir’s right to selfdetermination.
• Arrest of the JNU Students’ Union President Kanhaiya Kumarand Umar Khalid on charges of sedition leads to a major political controversy.
• The National Investigation Agency to hand over photos of Pathankot attackers to Pakistan.
• 26/11 attacks: Headley names JuD chief Hafiz , ISI in Mumbai court. He says ISI provides financial, military support to Lashkar.
• Narendra Modi, K.P. Oli discuss India-Nepal ties; India and Nepal sign 9 agreements.
• India readies billion defence deals with Israel; fresh push for Israeli missile system.
• Naveen Patnaik elected BJD president for 7th term.
• Actor Sanjay Dutt walks out free of Yerawada jail.
• India-born judge Srikanth Srinivasan gets elevated as US Supreme Court judge.
• Cricket : India lose U-19 World Cup trophy to West Indies.
• Cricket: India wins T20I series against Sri Lanka 2-1.
• Indian men beat China in Badminton Asia Team championships.
• Oscars 2016: DiCaprio wins best actor, Spotlight is best picture.

Business News

• Budget 2016 : Companies with revenue less than ₹ 5 crores to be taxed at 29% plus surcharge.
• Limited tax compliance window from Jun 1 – Sep 30 for declaring undisclosed income at 45% including surcharge and penalties.
• Deduction for rent paid will be raised from ₹ 20,000 to ₹ 60,000 to benefit those living in rented houses.
• 15 per cent surcharge on income above ₹ 1 crore.
• ₹ 25,000 crores towards recapitalisation of public sector banks.
• Excise 1 per cent imposed on articles of jewellery, excluding silver.
• SUVs, Luxury cars to be more expensive. 4% high capacity tax for SUVs.
• Government to take measures to support export sector: Jaitley .
• Infrastructure and agriculture cess to be levied.
• Withdrawal from NPS on maturity made tax-free upto 40%.
• FM Jaitley announces 20% cess on domestic crude oil.
• Jaitley announces tax dispute resolution scheme.
• Budget 2016 removes dividend distribution tax on REITs.
• Retrospective Tax: High level committee headed by Revenue Secretary to allay fears.
• 10% tax on dividends in excess of Rs 10 lakh received by individuals, HUFs; in addition to DDT.
• Government allocates ₹ 500 crores to support SC/ST, women entrepreneurs.
• S&P holds India sovereign rating, says government debt burden a constraint.
• Tax rebate for persons with income upto ₹ 5 Lakhs increased by ₹ 3,000.
• Restaurant bills, travel to cost more from June.
• Shops to be given option to remain open all seven days in a week across markets.
• 100 per cent FDI in marketing of food products produced and marketed in India.
• Government will pay EPF contribution of 8.33% for all new employees for first three years.
• Government to set up ₹ 1,000 crore higher education financing agency.
• First home buyers get ₹ 50,000 more deduction on interest.
• Centre to provide ₹ 1 lakh per family health cover.
• Railways to borrow Rs 20,000 crores from markets in Financial Year 17.
• Rail Budget: Target operating ratio of 92% for FY17.
• LIC to invest Rs.1.5 lakh crores in Railways on ‘favourable’ terms.
• Manufacturing Purchasing Managers’ Index (PMI) jumps to 4-month high of 51.1 in January : Nikkei survey.
• China January factory activity falls at fastest pace since 2012 – official PMI.
• December core sector up 0.9% vs -1.3% in November.
• Services PMI scales a 19-month high of 54.3 in January (as against 53.6 in December).
• China foreign reserves fall almost billion to lowest since May 2012.
• GDP growth rises 7.3% in December quarter, meets estimates; pegged at 7.6% for F.Y 2016.
• India’s Per capita income seen slightly up at Rs 6,453/month in FY16.
• China sets 2016 economic growth projection range at 6.5 to 7%.
• Retail inflation hits 17-month high in January.
• December industrial output contracts 1.3% Y-O-Y.
• WPI inflation drops to (-) 0.9% in January as vegetables, pulses turn cheaper.
• CPI inflation likely to remain in 5.6-5.8% range over next 2 months: Deutsche.
• Private Equity, M&A deals rise 18% to 141 in January.
• G20 to tell each other in advance about moves that could devalue currencies.
• RBI keeps key rates unchanged.
• Government hikes import tariff value on gold, silver.
• Government to meet FY16 tax target of Rs 14.49 lakh crore.
• Private Equity investment in realty up 72% at Rs 25,683 crore in 2015.
• Capgemini to complete IGATE merger by June.
• IL&FS Transportation sells 49% in Gurgaon’s rapid metro rail for million.
• Wipro to buy US HealthPlan Services for million.
• Ashok Leyland takes Nissan to court in JV assets.
• Oracle to invest million in India.
• Walmart eyes -milllion investment in India by 2020.
• Four banks plan to sell Kingfisher Airlines’ assets to asset reconstruction companies(ARCs).
• M&M to invest Rs 1,000 crores for developing petrol engines.
• LIC buys over Rs1.5 trillion in govt. bonds in fiscal 2016.
• Listed banks’ Non Performing Assets surge by Rs 1 trillion in December quarter.
• EPFO offers 8.80% for 2015-16, unions protest.
• I-T department sends tax reminder to Vodafone for ₹ 14,200 crore dues.
• CBDT resolves cases worth ₹ 5,000 crore through Mutual Agreement Procedure.
• Small savings rates cut by 0.25 per cent.
• Finance Ministry clarifies on tax reporting norms under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards.
• NSE, BSE says one person company can act as stock broker.
• Service fee, surcharge on debit and credit card payments scrapped.
• 19,400 start-ups in India, exit valuation still low.
• Samsung wins appeal in patent dispute with Apple.
• U.K. Sinha gets one-year extension as SEBI chairman.
• Vijay Mallya steps down as USL chairman.
• Christine Lagarde appointed for second term as IMF chief.
• Vinod Rai appointed Chairman of Banks Board Bureau.
• Atulesh Jindal to be New CBDT Chief.

Market

• Indian markets fell by 7% in just one month.
• All sectoral indices fell with the Bank Nifty falling over 10%.
• US and UK markets neutral.
• Japanese market fell by 8%.
• Indian rupee cross Rs.68 vs US Dollar; Closed the month at Rs.68.19.
• Gold prices surged by 5% and Silver was up by 3%.
• Crude bounced back and settled around level.
• FII’s sold Rs.15,000 crores during the month.
• Mutual funds invested around Rs.30,000 crores out of which about Rs.25,000 crores on Debt.