Dear Colleagues
I am pleased to attach the Economy / Market Snapshot covering all the major events in June, 2020.
Indian Markets gained about 7.50% last month. Nifty has been able to hold the 10,000 levels and currently at 10,302. On the sectoral indices, Bank Nifty gained 11%, IT gained 5%, Auto gained 8%, Pharma gained 2% and FMCG gained 3%. FII’s invested 23,400 crores in the equity market while Domestic Institutions sold about 1,900 crores in the equity market. Indian Rupee closed at Rs.75.50 for 1 US $.
On the Global markets front, DOW gained 2%, Nasdaq gained 6%, FTSE gained 1.50%, Nikkei gained 2%, Hang Seng gained 6% and Shanghai gained 4%. On the commodities side, Gold went up by 4.50% and Silver was marginally down by 0.50%. Brent Crude gained 16% and currently trading at $ 41 a barrel.
One quarter has gone in this financial year and we will start getting the quarterly results in the next few weeks in July 2020. While the Unlock 1.0 started in June, cases have gone up in major cities like Mumbai, Delhi, Chennai. Tests have gone up significantly and the recovery rates have been over 50%. Death rates are also low but the number of cases are rising making the governments to think of more stricter lockdown in select cities. This may bring back the fear of slowdown when the economy has started the recovery process. The daily cases in India are around 18,000 per day while the US has peaked at around 40,000 cases per day. Brazil has been also recording cases of around 30,000 per day. In Europe, life is slowly returning to normal with the cases under control. Rising cases in US, Brazil and India, decisions like freeze on H1B visas in US, US elections in November, standoff between India and China, poor quarterly results will certainly make the market very volatile in July. While the governments are doing their best in this difficult situation, it is the responsibility of every citizen to stay safe, wear masks, practice social distancing and avoid going out as much as possible. We have to be extra careful in our own interest without undermining the spread of this deadly virus. Of course, there is no doubt that economic activity must continue and cannot be stopped. There has to be a proper balance and adequate safety precautions and life has to move on.
Month of July will be critical and we need to see whether the cases can take a U turn and come down in India and across the World paving way to a slow and steady recovery.
Happy reading!……
Regards
V Murali
General News
- Global COVID-19 cases crosses 10.5 million with over 5,14,000 deaths.
- India climbed to the 4th spot with 5,85,792 cases and 17,410 deaths.
- 3,47,839 recovered from COVID-19, recovery rate improves to 59.38%; 88,26,585 samples tested till 30th
- June.
- Maharashtra, Tamil Nadu and Delhi account for 60% of total caseload in country.
- Centre releases Unlock 2.0 guidelines: Schools, colleges, cinemas, religious shrines to be closed till July 31.
- Maharashtra, Nagaland and Tamil Nadu extends lockdown till July 31.
- Govt launches AarogyaPath portal for healthcare supply chain.
- Global Vaccine Summit: India pledges $15 million to international vaccines alliance Gavi.
- Maharashtra CM Uddhav Thackeray launches world’s largest convalescent plasma therapy trial.
- Delhi govt to set up plasma bank, CM Arvind Kejriwal urges COVID-19 survivors to donate.
- State governments fix rate for private hospitals treating COVID-19 patients.
- India approves emergency use of remdesivir to treat COVID-19 patients.
- Vande Bharat Mission and Operation Samudra Setu bring back more stranded Indians.
- Delhi LG overrules govt’s order denying treatment of non-resident COVID-19 patients in city hospitals.
- UN honours Kerala Health Minister KK Shailaja for efforts to fight pandemic.
- Andhra govt gives nod for darshans at Tirumala Tirupati Devasthanam.
- 20 soldiers martyred in violent clashes with Chinese troops in Galwan area of Ladakh region.
- US Intel estimates Chinese side suffered over 40 casualties in face-off.
- India, China agree to implement disengagement and de-escalation as diplomatic talks conclude.
- Rajnath Singh discusses ‘strategic partnership’ with Russia; attends 75th Victory Day Parade at Red Square.
- Rajya Sabha election 2020: BJP bags 11 of 24 seats; NDA crosses 100 seats in upper house.
- Adesh Kumar Gupta replaces Manoj Tiwari as Delhi BJP President, Vishnu Deo Sai to head Chhattisgarh.
- Cyclone Nisarga: Rare storm in decades pounds India’s west coast.
- Two firefighters die, over 50 houses gutted as fire at Assam’s Baghjan oil well spreads.
- Cabinet clears new space industry body, Indian National Space Promotion and Authorisation Centre.
- CBSE, ICSE cancel Class XII, Class X exams; CBSE Class XII students can opt for exams to be conducted later.
- Asiatic lion population in Gujarat rises to 674 in 5 years, up by almost 29%.
- Rath Yatra goes off in Odisha’s Puri amid COVID-19, but without devotees in a historic first.
- G20 countries pledge over $21 billion to combat the COVID-19 pandemic.
- US, Canada, Mexico to keep borders shut until July 21 over Coronavirus.
- French President Emmanuel Macron announces France fully reopening its economy.
- Germany lifts travel restrictions for 31 European countries, including UK.
- Saudi Arabia ends lockdown despite spike in infections; Dubai opens up to tourists from July 7.
- Italy reopens to tourists from Europe, three months after the country went into coronavirus lockdown.
- New Zealand ends COVID-free run with 2 cases from UK; puts military in charge of quarantine.
- China puts half a million people in lockdown as Beijing fights new cluster of Coronavirus cases.
- Nepal’s Parliament passes constitution amendment bill to update map incorporating Indian territories.
- President Trump signs order on police reform after weeks of protests about racial injustice.
- Trump issues executive order limiting temporary work visas, extends freeze on the issuance of green cards.
- Former Vice President Joe Biden formally clinches US Democratic Presidential nomination.
- Washington, DC, Statehood approved by US House in historic vote.
- Brexit: UK and EU agree not to extend transition period beyond December 2020.
- Terror financing watchdog FATF decides to continue Pakistan in Grey List till October.
- North Korea cuts off all communications lines to South Korea.
- China passes controversial Hong Kong national security law.
- Hong Kong’s Legislative Council passes the controversial national anthem bill.
- Afghan government, Taliban agree to Doha as venue for first peace talks.
- India along with Mexico, Ireland, Norway and Kenya elected as non-permanent member of the UNSC.
- Oscars 2021 ceremony switched to April from February due to coronavirus.
- Absolved of doping charges, weightlifter Sanjita Chanu to receive Arjuna Award withheld since 2018.
- Asian Football Confederation grants India the rights to host AFC Women’s Asian Cup 2022 finals.
- Australia and New Zealand named hosts for 2023 Women’s World Cup football tournament.
Business News
- President Ram Nath Kovind promulgates ordinance to bring co-operative banks under RBI supervision.
- PM Modi launches ₹50,000 crore Garib Kalyan Rojgar Abhiyaan to generate jobs for migrant workers.
- India’s federal fiscal deficit touches 58.6% of annual target in two months.
- Finance Ministry releases ₹15,187 crore to states as rural local bodies grant.
- UP employs 57.13 lakh under MGNREGA, ‘highest in country’ and generates 7.93 crore man days.
- Centre amends Essential Commodities Act; Cereals, pulses, onion and potatoes removed from list.
- Govt amends insolvency law; suspends initiation of fresh proceedings for six months starting from Mar 25.
- Centre releases ₹36,400 crore as December to February GST compensation to states.
- GST Council meet: Maximum late fee for non-filing of monthly GST sales return for July 2017 to January
- 2020 capped at ₹500.
- Last date for filing IT return for 2019-20 extended till Nov 30th; PAN, Aadhaar linking to Mar 31, 2021.
- Govt mandates distinct colour strip on top of sticker carrying details of registration for BS-VI vehicles;
- further extends validity date of motor vehicle documents till Sept 2020.
- Govt announces schemes worth of ₹50,000 crore for electronics sector.
- Govt makes mandatory for sellers to mention ‘country of origin’ on products for GeM platform.
- Government launches scheme to provide ₹20,000 crore guarantee cover to 2 lakh MSMEs.
- Govt approves ₹15,000 infra fund for Animal Husbandry, likely to create 35 lakh jobs.
- Ministry of Skill Development and Entrepreneurship, IBM unveil ‘SkillsBuild Reignite’ for job seekers.
- Govt bans 59 Chinese apps for safety, security and integrity of India.
- All regular train services to remain cancelled till August 12; All 230 special trains to continue to operate.
- International flights to start when domestic traffic reaches 50%, says Hardeep Singh Puri.
- SC settles middle seat row, confirms that there is no need to keep middle seat vacant.
- RBI modifies framework for financial market infrastructure, retail payment system.
- RBI extends ₹50,000 crore special liquidity window for YES Bank by 3 months.
- Uday Kotak sells 5.6 crores shares in Kotak Mahindra Bank to comply with RBI norms.
- ICICI Bank offloads 3.96% equity in ICICI Lombard General Insurance for ₹2,250 crore; raises ₹3,090 crore
- via 1.5% stake sale in life, general insurance businesses.
- BNP Paribas shuts down onshore wealth management business in India.
- Petrol, diesel prices rise to highest in more than a year.
- India launches maiden gas exchange; GAIL, Petronet join India’s first gas trading platform.
- BSE shifts expiry of weekly derivatives contracts to Monday from Thursday.
- NCDEX launches 2 non-tradable rainfall-based indices, Indian Monsoon Index and Indian Rain Index.
- BSE bags 10th spot among world’s most valued exchanges with a market cap of $1.7 trillion; Nasdaq tops.
- Reliance closes ₹53,125 crore rights issue with 1.59 times subscription, raises over ₹84,000 crore.
- RIL becomes the first Indian company to be valued at $150 billion, raises over ₹168,818 crore,
- becomes ‘net debt free’ ahead of its March 2021 target.
- Hexaware Technologies and Adani Power boards approve delisting from stock exchanges.
- Govt extends deadline for Air India bidding to August 31.
- US trade deficit widens in April as exports hit 10-year low, jumped 16.7% to $49.4 billion.
- Trump issues memorandum to protect US investors from Chinese companies.
- China keeps benchmark lending rate unchanged for second consecutive month.
- Bank of Japan keeps policy steady, eyes recovery from pandemic.
- Govt approves lifting ban on export of anti-malarial drug hydroxychloroquine.
- Bangladesh to get zero tariff facility on 97% goods exported to China under WTO rule.
- AIIB approves $750 million loan to India and $500 million loan to Pakistan for COVID-19 response.
- Bank of England pumps out extra stimulus of €112 billion.
- SC directs Centre, RBI to review loan moratorium scheme; defers hearing in the case till August 1st week.
- Govt withdraws 96% of ₹4 lakh crore AGR related dues raised against PSUs.
- SC defers AGR case to July third week; ask Telecom companies to furnish audited B/S of 10 years.
- Microsoft joins Amazon, IBM in banning face-recognition technology sales to police.
- India becomes founding member of Global Partnership for Artificial Intelligence.
- Apple switches to its own chips for Mac computers in split from Intel.
- US companies can work with Huawei on 5G, other standards: US Commerce Department.
- Dr Reddy’s inks pact with Gilead to manufacture COVID-19 drug Remdesivir.
- Glenmark launches COVID-19 drug ‘FabiFlu’ in India after DCGI approval, priced at ₹103 per tablet.
- Cipla and Hetero Labs launch generic remdesivir under brand names Cipremi and Covifor respectively.
- Maharashtra, Delhi, Tamil Nadu, Gujarat and Telangana get first batch of COVID-19 medicine, Covifor.
- Maharashtra bans Ramdev’s Patanjali ‘Coronil’ anti-COVID tablets that claims cure in 14 days.
- MG Motor India partners with Tata Power to install 50 Kw electric car chargers at dealerships.
- Fiat Chrysler wins trade case over Mahindra’s Jeep copy.
- MG Motor begins production of Hector Plus at Halol plant, to launch in July.
- China’s Great Wall Motor signs MoU with Maharashtra, to invest $1 billion.
- Kerala govt buys 65 Tata Nexon EVs, becomes 1st state to use electric SUVs for enforcement drives.
- FAA Chief acknowledges agency, Boeing made mistakes on 737 MAX.
- Virgin Australia administrators name Bain Capital as new owner.
- Oil companies have raised the rates of jet fuel by 50% following a rise in international rates.
- OPEC and allied nations extend 9.7 million barrel per day oil output cut through July.
- List of companies that join advertiser boycott on Facebook grows as it fails to stop the spread of hate.
- World’s first gold-backed digital gold currency launched in India and Middle East.
- Byju’s raises funding from Mary Meeker’s VC firm, valuation rises to $10.5 billion.
- Unilever to change Fair & Lovely brand name; to end references to fair, white, light.
- Japan’s Akatsuki ties up with Netflix, Amazon for Indian animation.
- CBI files charge sheet against Yes Bank’s Rana Kapoor, Dewan Housing’s Wadhawans.
- SoftBank Group founder Masayoshi Son steps down from Chinese e-commerce firm Alibaba’s board.
- SEBI removes Rana Kapoor as Yes Bank promoter.
- Vikram Pawah to head BMW Group India.
- Volkswagen appoints Ralf Brandstaetter as VW brand CEO; Herbert Diess will remain Group CEO
Q4 Results
- SBI posts 4-fold jump in Q4 net profit at ₹3,580.81 crore, income at ₹76,027.51 crore; Net NPA at 2.23%.
- Punjab National Bank Q4 net loss narrows down to ₹697.20 crore, GNPA declines 14.21%, NNPA to 5.76%.
- IDBI Bank clocks net profit of ₹135 crore in Q4FY20 after 13 straight quarters of net losses.
- Bank of Baroda reports Q4 profit at ₹506.6 crore; Net interest income increases 5.02% YoY to ₹6,798 crore.
- Ashok Leyland Q4 net profit plunges 92% to ₹57.78 crore, revenue stood at ₹5,088.04 crore.
- M&M posts ₹3,255 crore Q4 net loss, revenue declines 35% YoY to ₹9,005 crore.
- BPCL posts loss of ₹1819.6 crore on inventory loss, lower GRMs; revenue down 8% YoY at ₹68,997.8 crore.
- Glenmark net profit jumps 36% to ₹220 crore, revenue rose 7.96% to ₹2,767.48 crore.
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 30-Jun | 29-May | % 1M | 01-Jan | % since Jan |
| BSE | 34916 | 32424 | 7.68% | 41306 | -15.47% |
| NSE | 10302 | 9580 | 7.53% | 12183 | -15.44% |
| DOW | 25813 | 25383 | 1.69% | 28538 | -9.55% |
| NASDAQ | 10059 | 9490 | 5.99% | 8973 | 12.11% |
| FTSE | 6170 | 6077 | 1.53% | 7542 | -18.20% |
| Nikkei | 22288 | 21878 | 1.88% | 23657 | -5.78% |
| Hang Seng | 24427 | 22961 | 6.38% | 28190 | -13.35% |
| Straits Times | 2590 | 2511 | 3.15% | 3223 | -19.64% |
| Shanghai | 2985 | 2852 | 4.64% | 3050 | -2.15% |
| USD | 75.50 | 75.62 | -0.15% | 71.22 | 6.01% |
| Euro | 84.82 | 83.93 | 1.06% | 79.94 | 6.11% |
| GBP | 93.49 | 93.35 | 0.14% | 94.36 | -0.92% |
| Yen/100INR | 0.70 | 0.70 | -0.09% | 0.66 | 6.97% |
| Gold | 48796 | 46654 | 4.59% | 39067 | 24.90% |
| Silver | 49824 | 50118 | -0.59% | 46665 | 6.77% |
| Crude Brent $ | 41.15 | 35.49 | 15.95% | 66.29 | -37.92% |
| Crude Nymex $ | 39.76 | 35.33 | 12.54% | 61.30 | -35.14% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors | BANK NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 30-Jun | 21370 | 14754 | 6719 | 30063 | 9985 |
| 29-May | 19297 | 14011 | 6219 | 29297 | 9769 |
| % 1M | 10.74% | 5.31% | 8.05% | 2.62% | 2.22% |
| 01-Jan | 32103 | 15722 | 8210 | 30234 | 8047 |
| % since Jan | -33.43% | -6.16% | -18.16% | -0.57% | 24.08% |
| INDIAN TRADE(USD MILLION) | |
|---|---|
| Exports | 19050 |
| Imports | 22200 |
| FDI | 1366 |
| Government Bond 10Y | 5.89% |
| GDP YoY | 3.10% |
| Inflation Rate | 5.84% |
| Forex Reserves $ M | 505570 |
| IIP % | -10.00% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs. crore) | MF (Rs. crore) |
| Equity | 23,394 | (1,913) |
| Debt | (2,501) | 29,976 |
| Total 1 M | 20,893 | 28,063 |
| Total Since Jan | (1,21,523) | 1,19,415 |
| Equity | (15,392) | 31,971 |
| Debt | (1,06,131) | 87,444 |
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