Dear Colleagues,
I am pleased to attach the Economy / Market Snapshot covering all the major events in July, 2016.
FII’s poured money into Indian markets which made the market to go up by 4% last month; Except for the IT sector, all the other sectors like Bank, Auto, Pharma, FMCG did quite well. BSE index crossed 28,000 mark. Quarterly results were mixed with some companies beating the street estimates and some of them disappointing ! Parliament session is on and the cabinet has approved the GST bill with certain amendments sought by opposition. Barring Congress, all the other parties seem to be satisfied and the Rajya Sabha is likely to consider the GST bill in the coming week. Market is rallying with an expectation that the GST bill will be passed this time. Global markets went up last month and so is the case of Gold and Silver. Silver has been on a bull run with about 10% gains over the month. Indian rupee is stable and currently at Rs.67.02 for every 1 US $. Domestic mutual funds were not very active in the equity market but invested heavily in the debt market.
In the US, the election is about 100 days away; Both the Parties announced their candidates and it will be Donald Trump Vs Hilary Clinton; Looking at the impact of Brexit and the outcome of US elections, IT sector may not see big movements while after the clean up, the Public Sector Banks can surprise the markets.
India is playing West Indies and the second test is on now; Sri Lanka surprised Australia in the recent test match. Euro 2016 saw Protugal taking the cup in the final match with France. Andy Murray won the Wimbledon men’s finals while Serena Williams won the women’s final. Rio Olympics will commence on 5th August, 2016 and we will see how India is going to fair in this event !
Happy reading!
Regards
V Murali
General News
- US Republican Party nominates Trump and Democratic Party nominates Hillary Clinton as presidential candidates. Trump and Hillary chosen Mike Pence and Tim Kaine as their running mates.
- PM Narendra Modi visited four African nations.
- India has offered USD 92 million Line of Credit to Tanzania for a key water supply project and signed
five agreements with it. - PM Modi held talks with South African President Jacob Zuma on a wide range of issues
- In Mozambique, PM Modi held talks with President Filipe Nyusi. The two countries signed three
pacts, including a significant “long-term agreement” under which India will buy pulses - India, Kenya sign 7 pacts; to deepen cooperation in security.
- Theresa May becomes Britain’s PM, makes Boris Johnson foreign minister.
- The government seemed to achieved a breakthrough in the GST Bill with most opposition parties
barring the Congress satisfied with two key changes made by the government. - On 3 July 2016, Twin bombings in Baghdad killed more than 300 people and injured hundreds more,
ISIS claims responsibility. - Modi brings in 19 new face s in cabinet reshuffle; Prakash Javadekar promoted to cabinet rank, gets
HRD Ministry; Smriti Irani moved to Textiles; Ravi Shankar Prasad, Anil Dave and MJ Akbar takes
charge as Law Minister, Environment Ministry and Ministry of External Affairs respectively. - Najma Heptulla and GM Siddeshwara resign after Cabinet reshuffle.
- BJP MP Navjot Singh Sidhu resigns from Rajya Sabha, may join AAP.
- Maharastra CM Fadnavis expands his council of ministers; including 10 new faces, in the exercise
which left Shiv Sena unhappy as it was denied a Cabinet berth. - India inks $1 billion deal with US for 4 maritime spy planes, bolsters navy.
- Assam reels under floods, atleast 22 killed in Madhya Pradesh and Assam; over 1.5 lakh affected.
- Kashmir violence: Death toll climbs to 42; curfew imposed in all 10 districts.
- Sunder Pichai, Vikram Malhotra among 4 Indian-Americans honoured with Great Immigrants Award.
- ED issues fresh notice to Robert Vadra linked firm in Bikaner land case.
- Sheila Dikshit named Congress’ CM candidate in UP and Raj Babbar appointed as Congress chief in UP.
- PM Modi okays $1-billion deal with US for 4 Poseidons.
- Dhaka cafe attack: IS gunmen kill 20 foreigners before commandos end siege.
- US court rejects Visa, MasterCard’s $7.25 billion pact with retailers.
- CJI rejects govt’s move to set up panel for appointment of new judges.
- No non-bailable warrant, Mumbai court summons Vijay Mallya on September 3.
- SC revives 2014 HC order asking Subrata Roy to pay Rs 93 crores to I-T.
- National Herald case: Relief for Sonia, Rahul Gandhi; Delhi HC sets aside trial court order.
- Nice terror attack kills 84 people; French police arrest three; Islamic State claims for Bastille day attack.
- India opens access to its secretive army to companies as Modi moves to spend $150 billion.
- LS nod for NEET; States’ quotas to stay.
- Panama agrees to sign tax treaty.
- Indian Air Force plane with 29 people on board goes missing; descended rapidly from 23,000 feet,
hunt on. - 80 dead as IS claims twin blasts during Kabul protest.
- Two killed, 14 injured in Florida nightclub shooting.
- Lok Sabha clears Lokpal amendments without discussion.
- Chidambaram likely to be made Tamil Nadu Congress Committee chief.
- T.M. Krishna and Bezwada Wilson win Magsaysay Award.
- Renowned writer and social thinker Mahasweta Devi dies at 90.
- 2016 Wimbledon — Andy Murray of Scotland took home the men’s singles trophy and Serena Williams tied the open-era world record of 22 grand slams after winning the women’s singles title.
- Euro 2016: Portugal beat France to win European title.
- Lionel Messi has retired from Argentina national team.
- Hockey legend Mohammad Shahid passes away at 56.
- Neeraj Chopra wins javelin gold with new U-20 World Record.
- Boxing: Vijender Singh beats Kerry Hope to clinch WBO Asia Pacific title
Business News
- Telecom ministry clears Airtel-Aircel 4G spectrum trading deal.
- RBI’s new deputy governor Vishwanathan takes charge.
- Maran brothers seek bail in money-laundering case.
- ED summons Karti Chidambaram in Aircel-Maxis case.
- Flipkart’s Myntra acquires Jabong from Global Fashion Group for $70 million.
- Cognizant acquires digital design firm Idea Couture for an undisclosed amount.
- Green energy: SBI inks $625 million deal with World Bank.
- RIL and SBI sign agreement for payments bank.
- Petrol Price Slashed By Rs. 2.25/Litre, Diesel Cheaper By 42 Paise/Litre
- Reliance Jio to go for Rs 15,000 crores rights issue.
- Federal Bank ties up with Reliance Jio Money.
- Cabinet nod for changes to Benami Transactions Bill
- Brookfield plans to invest $1 billion in stressed assets JV with SBI.
- SBI raises Rs 911 crores by selling stake in NSE.
- FPIs invest Rs 3,700 crores in June, total hits Rs 20,600 crores in 2016.
- Global M&A falls 18% to $1.71 trillion in first half of 2016.
- Axis Bank to raise foreign shareholding to 74%; cuts base rate by 10 bps to 9.35 per cent.
- Aditya Birla Fashion buys India business of Forever 21 for $26 million.
- Singapore snaps up 17 M&A deals worth $940 million in India.
- HDFC to sell masala bonds, plans to raise Rs 3,000 crores.
- WPI inflation hardens for 3rd month, hits 1.62% in June.
- Warren Buffett donates $2.2 billion to Bill Gates Foundation.
- Equity MFs see sharp plunge in inflows at Rs 9,400 crores in Q1 .
- Government infuses Rs 22,915 crores capital into 13 PSU banks.
- HC refuses SIT probe in Essar phone tapping case.
- FICCI calls for Free Trade Agreements with EU and UK.
- Cairn India, Vedanta merger sealed with revised terms.
- Government asks RBI to provide low interest-rate loans to Export Import Bank of India(EXIM) Bank.
- India receives $5.34 billion FDI in April-May.
- FPIs pump in $2 billion in July on GST traction, earnings outlook.
- Verizon to buy Yahoo’s core business for $4.83 billion
- Mutual fund folio count rises 12.61 lakh to 4.9 crores in June quarter.
- RBI slaps Rs.27 crores penalty on 13 banks.
- Sahara rejects $1.3 billion offer, calls it attempt to lower price.
- UK drugs giant GSK invest 275 million despite Brexit.
- Voda India may get $4 bn equity infusion from UK parent.
- Infosys will grant shares to staff over next 4-5 years, says HR Head Krishnamurthy Shankar.
- Bank of Japan ups ETF purchases, keeps interest rates steady.
- India’s oldest Parle factory in Mumbai shuts down after 87 years.
- Fiscal deficit reaches 61% of budgeted target in June
Q1 Results
- RIL beats estimates, Q1 standalone net at Rs 7,548 crores.
- Infosys Q1 profit falls 4.5%, topline below estimates; cuts FY17 dollar revenue guidance.
- L&T Q1 misses estimates, profit jumps 46%; order inflows up 14%.
- TCS beats estimates, Q1 net profit at Rs 6,310 crores.
- Wipro Q1 PAT at Rs 2,052 crores, down 9.1%; cons revenue down 0.3% at Rs 13,700 crores.
- Dr Reddy’s Q1 disappoints; profit cracks 76%, US sales fall 16%.
- Yes Bank Q1 profit up 33%, revenue in-line; asset quality stable.
- HDFC Q1 profit up 38% to Rs 1871 crores on stake sale in insurance biz.
- HDFC Bank Q1 profit rises 20%, provisions & NPA remain higher.
- PNB Q1 profit tanks 57%; NPA nearly 14%, fresh slippages at Rs 7,533 crores.
- Axis Bank Q1 profit falls 21.38% to Rs1,555.53 crore as provisions jump.
- IndusInd Bank Q1 net profit rises 26% to Rs. 661 crores.
- Godrej Consumer Q1 profit doubles to Rs 244 crores, margin beats estimates.
- HUL Q1 net up 10%, revenue below estimates; volume growth at 4%.
- TVS Motor Q1 net profit up 21%, EBITDA margins rise 16%
- Maruti Q1 net profit jumps 23% to Rs. 1,486 cr on higher turnover.
- Bajaj Finance Q1 net up 54%; board approves stock split, bonus.
- NIIT Tech Q1 net falls 47.5% to Rs 28.6 crores.
- LIC Housing Fin net up 6.3% at Rs. 408 crores.
- Dabur Q1 net profit up 12% at Rs 293 crores, volume growth at 4%.
- Bajaj Auto Q1 profit up 2% at Rs 978 crores, topline meets estimates.
- JSW Energy Q1 profit up 29%; lenders nix bid to buy Monnet Power.
- Vedanta Q1 net profit down 30% to Rs615 crores.
- ITC Q1 profit seen up 10%, cigarette volume likely at 2- 4%.
- Vodafone income dips 3.4% in June, service revenue growth improves.
- Havells India Q1 net up 36% at Rs. 145.58 crores.
Market News
- Indian markets were up by 4%; Sensex crosses 28,000 mark
- Bank, Auto and Pharma stocks move up over 5%; IT down by 2%
- FII’s pump in Rs.11,000 crores in Equity market and Rs.7,000 crores in Debt market
- Global markets went up last month; Nasdaq, Hang Seng and Nikkei went up over 5%
- Gold went up by 1% while Silver went up by 10%
- Rupee at rs.67.02 against the US $
- Crude came down by 13% to $ 43 a barrel
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 31- Jul | 30- Jun | % 1M | 01- Jan | % since Jan |
| BSE | 28,052 | 27,000 | 3.90% | 26,161 | 7.23% |
| NSE | 8,639 | 8,288 | 4.23% | 7,963 | 8.48% |
| DOW | 18,432 | 17,783 | 2.80% | 17,425 | 5.78% |
| NASDAQ | 5,162 | 4,948 | 6.59% | 5,007 | 3.09% |
| FTSE | 6,724 | 6,231 | 3.39% | 6,242 | 7.72% |
| Nikkei | 16,569 | 17,235 | 6.38% | 19,034 | -12.95% |
| Hang Seng | 21,891 | 20,815 | 5.28% | 21,914 | -0.11% |
| Straits Times | 2,869 | 2,791 | 0.97% | 2,883 | -0.49% |
| Shanghai | 2,979 | 2,917 | 1.68% | 3,539 | -15.82% |
| USD | 67.02 | 67.17 | -0.74% | 66.23 | 1.19% |
| Euro | 74.50 | 74.96 | -0.61% | 71.92 | 3.59% |
| GBP | 88.15 | 98.40 | -2.79% | 97.88 | -9.94% |
| Yen/100INR | 0.65 | 0.60 | -1.52% | 0.55 | 18.18% |
| Gold | 31,549 | 28,612 | 1.05% | 26,320 | 19.87% |
| Silver | 47,480 | 38,555 | 9.74% | 33,080 | 43.53% |
| Crude Brent $ | 43.53 | 49.41 | -12.99% | 37.28 | 16.77% |
| Crude Nymex $ | 41.60 | 48.68 | -14.42% | 37.09 | 12.16% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors | BANK NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 31 – Jul | 18953 | 10913 | 9471 | 22229 | 11697 |
| 30 – Jun | 17935 | 11120 | 8864 | 21608 | 11142 |
| % 1M | 5.68% | -1.86% | 6.85% | 2.87% | 4.98% |
| 01- Jan | 17039 | 11175 | 8328 | 20185 | 11980 |
| % since Jan | 10.10% | -2.40% | 12.06% | 9.19% | -2.42% |
| INDIAN TRADE( USD MILLION) | |
|---|---|
| Exports | 22572 |
| Imports | 30688 |
| FDI | 1547 |
| Government Bond 10Y | 7.14% |
| GDP YoY | 7.90% |
| Inflation Rate | 1.17% |
| Forex Reserves $ M | 362690 |
| IIP % | 3.60% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs.crore) | MF (Rs.crore) |
| Equity | 11,130 | 249 |
| Debt | 7,382 | 22,225 |
| Total 1 M | 18,512 | 22,473 |
| Total Since Jan | 81,945 | 6,86,299 |
| Equity | 36,270 | 76,584 |
| Debt | 45,675 | 6,09,715 |
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