Dear Colleagues,
I am pleased to attach the Economy / Market Snapshot covering all the major events in July, 2018.
One of the best months so far for the Indian market; Market went up by 6% and is at record all time high; BSE crossed 37,000 mark and NSE crossed 11,000 mark; All the sectoral indices were positive with Bank Nifty gaining 5%, IT – 4%, FMCG – 7% and Auto 2.50%. Despite this, FII’s sold Rs.400 crores in the equity market and Rs.500 crores in the debt market. Indian Mutual funds invested Rs.5,500 crores in the equity market and Rs. 24,000 crores in the Debt market. Global markets gained last month except for Hang Seng which lost about 1%. DOW went up by 4.70% while Nasdaq went up by 2%. Indian Rupee against crossed the Rs.69 mark but settled at Rs.68.54 to 1 US $. Gold and Silver lost about 2% while Crude lost about 7%.
Despite the Trade war between China and US, markets are going up non-stop. Though not much of interest shown by FII’s which is reflected in the INR-USD position as well, Indian mutual funds are supporting the market with a number of SIP schemes. There is some nervousness in the market with many of the investors holding to cash and not taking fresh positons. With the elections in India in the next 6 to 8 months, how long the market will go up is the big question in everyone’s mind. Most of the quarterly results were very good which held the market. Let us see how August will pan out …….
Regards
V Murali
General News
- Monsoon session: Govt comfortably wins against the no-confidence motion moved by TDP.
- Congress moves privilege motion against PM Modi, Nirmala Sitharaman on Rafale deal.
- Piyush Goyal moves the Insolvency and Bankruptcy Code (Second Amendment) bill in Lok Sabha.
- Samsung’s Noida plant: PM Modi, S Korean President Moon Jae launch world’s largest mobile factory.
- India, South Korea sign 11 agreements during President Moon Jae-in’s visit.
- PM Modi embarks on tour to Rwanda, Uganda and South Africa.
- BRICS summit: PM Modi reaffirms India’s commitment to multilateralism and international trade.
- Sushma Swaraj co-chairs joint commission meet with her Bahrain counterpart in Bahrain, sign MoUs.
- India, US to hold 2+2 dialogue on September 6 in New Delhi.
- India, Japan hold maritime affairs dialogue, discuss Indo-Pacific region and maritime security.
- Nirmala Sitharaman hands over “Made in India” high-power multi-fuel engines to Indian Army.
- Assam NRC final draft published with 2.9 crore names out of the total 3.29 crore applicants.
- Truckers call off their strike demanding reduction in diesel prices and toll fees after govt’s assurance.
- Doctors call nationwide 12-hour strike against new medical bill.
- Govt approves hike in MSP for 14 Kharif crops.
- Govt asks states to issue instructions to conduct inspection of all Missionaries of Charity homes.
- Srikrishna panel submits Draft Data Privacy Bill to government.
- 100 militants killed in six months, govt tells Rajya Sabha.
- Terror violence has dipped in J&K under Governor’s rule: Home Ministry Data.
- PDP vice-president, office-bearers submit resignations to Mehbooba Mufti.
- Delhi CM Arvind Kejriwal okays doorstep ration delivery, orders implementation.
- Tamil Nadu CM E Palaniswami releases water from Mettur dam; claims victory in Cauvery dispute.
- UP govt issues order to ban plastic cups, glass, polythene from July 15.
- Goa to impose heavy fine for drinking alcohol in public from August 15: CM Manohar Parrikar.
- India successfully test-fires BrahMos supersonic cruise missile in Odisha.
- ISRO passes first test to qualify for manned space mission.
- 537 dead in monsoon rains, floods in 6 states so far.
- Won’t revise ‘One Rank-One Pension’ Formula: Centre to SC.
- Can’t sell 2 & 4-wheelers from Sept 1 without mandatory 3rd party insurance for 2 and 5 years respectively: SC.
- SC slams Centre for ‘lethargy’ in protecting Taj Mahal. UP Govt files draft vision document before SC.
- BSNL telephone exchange case: Madras HC orders framing of charges against Maran brothers.
- India asks Antigua to detain Mehul Choksi after info of his presence on island.
- Vijay Mallya granted bail by UK Court in the extradition case.
- EC launches mobile app “cVIGIL” to enable citizens to report on violation of election code of Conduct.
- Public Affairs Index: Kerala tops in governance; Tamil Nadu, Telangana, Karnataka and Gujarat follows.
- WhatsApp limits message forwarding to five chats in India to counter mob lynching.
- IAF spent ₹29.41 crores to ferry currency notes post demonetisation: RTI reply.
- Trump holds his first summit meeting with Russian President Vladimir Putin in Helsinki, Finland.
- Russia did interfere in US election: Trump admits he misspoke when he failed to blame Russia.
- Trump administration misses deadline to reunite immigrant families with young children.
- US govt announces $12 billion in aid to farmers hurt by Trump’s trade war.
- N Korea hands over 55 cases of remains thought to be US war dead.
- Ex- Pakistan PM Nawaz Sharif, daughter Maryam sentenced to prison in the Avenfield properties case.
- Pakistan elections: Imran Khan wins 115 of the 269 seats, to take oath as Prime Minister on August 11.
- US President Trump visits UK amid mass protests; hails ties with UK despite Brexit criticism.
- Brexit secretary David Davis and Foreign Secretary Boris Johnson resign.
- Chinese President Xi Jinping discuss strengthening strategic bilateral ties with UAE leaders.
- Iran lodges complaint with ICJ against US over renewed sanctions.
- Thai cave rescue: All 12 boys and coach successfully rescued after being trapped for 18 days.
- Fierce heatwave hits Japan following historic floods.
- Recep Tayyip Erdogan sworn in as Turkey’s President with vast new powers.
- Former Malaysian PM Najib Razak arrested over his alleged role in Malaysia’s 1MDB scandal.
- Former South Korean President Park Geun-hye sentenced to 8 more years in jail for misusing funds.
- NASA prepares “Parker Solar Probe” to fly into Sun’s scorching atmosphere.
- Under-20 World Athletics: Hima Das scripts history, wins gold in 400m final.
- Dipa Karmakar grabs the gold medal in the vault event of FIG Artistic Gymnastics World Challenge Cup.
- India’s star javelin thrower Neeraj Chopra wins gold at Sotteville Athletics meet in France.
- Indian Olympic Association announces 524-member contingent for 2018 Asian Games.
- FIFA 2018: France ends 20-year itch, lifts second World Cup after defeating Croatia 4-2.
- Wimbledon 2018: Novak Djokovic wins fourth tittle, Angelique Kerber her maiden title.
- India vs England: India clinch T20I series 2-1 while England clinch the 3-match ODI series 2-1.
- Virat Kohli becomes fastest player to score 2000 T20I runs.
Business News
- GST Council’s 28th meet: Govt slashes GST on 100 mass use items.
- Income Tax refunds worth ₹70,000 crores issued, 99% claims processed as on June end: CBDT.
- PAN-Aadhaar linking deadline extended till March 31, 2019.
- Govt increases load carrying capacity of trucks.
- RBI to issue new ₹100 notes, earlier series to continue to be legal tender.
- Govt hikes threshold limit for tax department appeals in Tribunals, Courts.
- NSE signs post-trade technology and strategic partnership agreement with Nasdaq.
- Reliance Industries crosses the $100-billion market cap, joining the TCS in the elite club.
- SME IPOs garner ₹825 crores in April-June quarter.
- RBI issues licence to Bank of China to operate in India.
- Banks must to comply with 16 SWIFT security principles by December to avoid RBI action.
- SBI lays out action against Mallya, says recovered around ₹950 crore for the entire banking sector.
- ICICI Bank commissions external probe into whistleblower’s complaint about 31 loan accounts.
- SBI, PNB, Canara Bank and other PSBs to shut one-third of foreign branches.
- Federal Bank gets RBI nod to enter Bahrain, Kuwait, Singapore.
- LIC board approves acquisition of up to 51% stake in IDBI Bank.
- US – China trade war escalates as both countries exchange tariffs.
- US and EU agree to work towards lower trade barriers.
- Import of oil from Iran from November 4 will be sanctionable activity: Mike Pompeo.
- India reduces duties on 3142 imports from China, Asia Pacific nations.
- June total vehicle exports rises 32.6% to 3.94 lakh units YoY, car sales up by 34%: SIAM.
- Passenger vehicles export from India dips 7.37% to 1,67,161 units in Q1.
- Pharma companies pledge to freeze planned price hikes for rest of 2018 after meeting with Trump.
- Fortis accepts $584 million stake deal from Malaysia’s IHH Healthcare.
- BSNL starts first internet telephony service in India.
- Reliance launches Jio GigaFiber, Jiophone 2 among other services at AGM.
- Centre clears Vodafone-Idea merger to create India’s largest telecom firm.
- Google faces record $5-billion penalty by EU over Android antitrust violations.
- Facebook fined over ₹4 crores in UK for its role in Cambridge Analytica scandal.
- Big Twitter accounts see follower numbers drop after fake-user purge.
- Yahoo Messenger shuts down after 20 years, users redirected to Squirrel group chat app.
- Nearly 10 lakh traders hold nationwide protest Flipkart-Walmart deal.
- Paytm partners with SoftBank-Yahoo’s PayPay to enter Japan’s digital payments market.
- Paytm launches Forex services; offers 20 international currencies.
- Plastic ban impact: Coke, Pepsi, Bisleri start printing buyback value on PET bottles.
- Godrej exits baby care space, sells Snuggy to Nobel Hygiene.
- Johnson & Johnson to pay $4.7 billion damages in talc cancer case.
- NCLT dismisses Cyrus Mistry’s plea challenging his dismissal as Chairman of the Tata Sons.
- Vijay Mallya, Nirav Modi, Mehul Choksi summoned by PMLA court under new Fugitive Ordinance.
- UK court lets Indian banks search, seize Vijay Mallya’s properties.
- Ex-Spicejet owner Kalanithi Maran loses ₹1,323-crore arbitration against Spicejet.
- Arijit Basu takes charge as Managing Director of SBI.
- FPI outflow hits 10-year high at ₹48,000 crores in H1 2018.
- India beat France to become world’s 6th largest economy: World Bank report.
- Ease of doing business rankings: Andhra Pradesh retains top spot, Telangana slips to 2nd spot.
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 31-Jul | 29-Jun | % 1M | 01-Jan | % since Jan |
| BSE | 37607 | 35423 | 6.16% | 33813 | 11.22% |
| NSE | 11357 | 10714 | 5.99% | 10436 | 8.83% |
| DOW | 25415 | 24271 | 4.71% | 24719 | 2.82% |
| NASDAQ | 7672 | 7510 | 2.15% | 6903 | 11.13% |
| FTSE | 7749 | 7637 | 1.46% | 7688 | 0.79% |
| Nikkei | 22554 | 22305 | 1.12% | 22765 | -0.93% |
| Hang Seng | 28583 | 28955 | -1.29% | 29919 | -4.47% |
| Straits Times | 3320 | 3269 | 1.56% | 3403 | -2.44% |
| Shanghai | 2876 | 2847 | 1.02% | 3307 | -13.03% |
| USD | 68.54 | 68.49 | 0.08% | 63.68 | 7.64% |
| Euro | 80.19 | 79.78 | 0.51% | 76.48 | 4.86% |
| GBP | 89.90 | 89.99 | -0.10% | 86.06 | 4.46% |
| Yen/100INR | 0.61 | 0.62 | -1.07% | 0.56 | 8.41% |
| Gold | 29686 | 30432 | -2.45% | 29123 | 1.93% |
| Silver | 38340 | 39228 | -2.26% | 39176 | -2.13% |
| Crude Brent $ | 73.86 | 79.23 | -6.78% | 67.13 | 10.03% |
| Crude Nymex $ | 68.35 | 74.25 | -7.95% | 60.62 | 12.75% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors | BANK NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 31-Jul | 27764 | 14588 | 10974 | 31007 | 9179 |
| 29-Jun | 26364 | 13990 | 10709 | 28966 | 9173 |
| % 1M | 5.31% | 4.28% | 2.47% | 7.05% | 0.07% |
| 01-Jan | 25318 | 11566 | 11891 | 26686 | 9618 |
| % since Jan | 9.66% | 26.13% | -7.71% | 16.19% | -4.56% |
| INDIAN TRADE( USD MILLION) | |
|---|---|
| Exports | 27700 |
| Imports | 44300 |
| FDI | 3971 |
| Government Bond 10Y | 7.77% |
| GDP YoY | 7.77% |
| Inflation Rate | 5.00% |
| Forex Reserves $ M | 405140 |
| IIP % | 4.80% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs.crore) | MF (Rs.crore) |
| Equity | (413) | 5512 |
| Debt | (529) | 24379 |
| Total 1 M | (942) | 29891 |
| Total Since Jan | (40722) | 227333 |
| Equity | (1126) | 70989 |
| Debt | (41848) | 156344 |
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