Dear Colleagues
I am pleased to attach the Economy / Market Snapshot covering all the major events in March, 2020
Indian Markets lost an unprecedented 23% last month with the Coronavirus spreading across the World and creating a panic in all the markets. On the sectoral indices, Bank Nifty lost about 34%, Auto 31%, IT 16% and FMCG/Pharma at about 5%. FII’s pulled out 58,600 crores from the equity market while Domestic Institutions had invested Rs.26,350 crores. Indian Rupee was under pressure and closed at Rs.75.55 for 1 US $.
On the Global markets front, DOW lost 14%, FTSE lost 14%, Nikkei lost 10%, Nasdaq lost 10%, Hang Sang lost 10% and Shanghai lost 5%. On the commodities side, Gold went up by 4.50% while Silver lost 10%. Crude lost a whopping 55% and currently trading at $ 23 a barrel.
With the number of confirmed cases reaching about 850,000, governments across the World are coming with measures and actions to contain the deadly virus. In India, we have a 21 day lock down announced by our Prime Minister and already a week has gone. The support and co operation from the public is overwhelming except for few issues relating to movement of migrant workers. With the next two weeks being critical, hopefully with the measures taken by the Government of India, we should see the numbers coming down. New way of working from home is the mantra and the financial year 2019-2020 has come to an end without the usual tension and confusion. The lock down will certainly have an effect on our economy and our people but if we are able to conquer this with this lock down, we have the resilient power to bounce back and recoup the losses quickly. For businesses, this is the time to think calmly and identify areas to strengthen and look at new opportunities to mitigate our losses. Let us all pray, work together, support the initiatives of the Government and fully comply with their decisions so that we can get out this mess created by an unknown enemy called Coronavirus and restore normalcy and peace in the World!
Happy reading!……
Regards
V Murali
General News
- WHO declares COVID-19 as a ‘pandemic’; global death toll crosses 38,900, almost 800,000 people infected.
- Confirmed cases of Coronavirus in India crosses 1200; death toll reaches 32.
- Iran, Italy and S Korea account for 80% coronavirus cases outside China.
- PM Modi announces 21-day complete lockdown across the country to curb coronavirus.
- Centre directs all states to ensure unhindered movement of essential goods & services.
- 29 private laboratory chains 16,000 collection centres across the country approved for testing COVID-19.
- Nations across the world impose travel restrictions to curb the spread of the coronavirus.
- PM Modi leads video-conference of SAARC leaders on coronavirus; proposes emergency COVID-19 fund.
- PM Modi attends Virtual G20 Leaders’ Summit to discuss the challenges posed by coronavirus outbreak.
- Second half of Parliament’s Budget Session adjourned sine die after passage of Finance Bill.
- Delhi clashes lasted 36 hours, thank Police for bringing peace: Amit Shah in Lok Sabha.
- EC defers Rajya Sabha election; fresh dates to be announced later.
- Delhi Assembly constitutes a 9-member ‘Peace and Harmony Committee’ to act against fake news.
- UP CM Yogi Adityanath inaugurates, lays foundation for projects worth ₹2,821 crore in Noida.
- TN CM launches ₹2,857 crore Tamil Nadu Health System Reform Programme (TNHSRP).
- Don’t want to be CM, I have decided to be the party head: Rajinikanth reveals his political roadmap.
- Former PDP leader Syed Altaf Bukhari launches ‘Jammu and Kashmir Apni party’.
- NC President Farooq Abdullah and Former J&K CM Omar Abdullah released after 8 months.
- Shivraj Singh Chouhan wins floor test, takes oath as CM of Madhya Pradesh for the fourth time.
- Jyotiraditya Scindia resigns from Congress, joins BJP; 19 Congress rebel MLAs join BJP.
- India, US sign ₹1,200 crore deal for missile protection suites for new VVIP planes.
- India supplies bullet proof jackets to 18 countries: Rajnath Singh.
- Launch of GISAT-1 onboard GSLV-F10, planned for March 05, 2020, postponed due to technical reasons.
- SC cancels benches, only one court to hear urgent cases through video-conferencing.
- UNHCR moves Supreme Court against CAA; India says it is internal matter.
- CBI court accepts closure report giving clean chit to former special director Rakesh Asthana in bribery case.
- HC sets aside order which asked Puducherry L-G Kiran Bedi not to interfere in govt matters.
- Allahabad HC asks UP to remove ‘name and shame’ posters of anti-CAA protesters; UP govt challenges HC
- order; SC sends privacy issue to larger bench.
- Bimal Julka appointed as Chief Information Commissioner of Central Information Commission.
- DK Shivakumar and Anil Chaudhary appointed as Presidents of Karnataka and Delhi Congress respectively.
- Wuhan eases travel restrictions, first trains arrive more than 2 months after COVID-19 lockdown.
- US overtakes China & Italy to top world in Coronavirus cases, New York emerges epicentre.
- Prince Charles, UK PM Boris Johnson test positive for COVID-19.
- World Bank unveils $12 billion coronavirus aid package; South Korea unveils $9.8 billion stimulus.
- Trump signs largest-ever financial stimulus package, worth $2 trillion to tackle the economic distress.
- US announces $174 million aid to 64 countries including $2.9 million to India.
- US and Taliban sign historic agreement; US begins troops withdrawal from Afghanistan 10 days after deal.
- Ashraf Ghani, rival Abdullah Abdullah both take oath as Afghan Presidents at same time.
- Afghan President Ghani signs decree to release Taliban prisoners as part of Afghan peace talks.
- Mike Bloomberg, Elizabeth Warren end their 2020 Presidential campaign.
- US Congress votes to limit Trump’s war powers against Iran.
- EU unveils climate law to go net zero by 2050.
- Rishi Sunak unveils £12 billion stimulus to counter UK coronavirus shock, makes UK visas costlier.
- Prince Harry, Meghan take final bow with Queen on Commonwealth Day.
- PM Benjamin Netanyahu wins Israel election but falls short of majority, begins coalition talks.
- Putin backs proposal allowing him to remain in power in Russia beyond 2024.
- Sri Lankan President dissolves Parliament; calls for general elections on April 25.
- Pakistan receives first batch of locust control pesticide, equipment from China.
- China assumes presidency of UN Security Council for March 2020.
- North Korea launches 4 unidentified projectiles in a months time; China calls for peace dialogue.
- Tokyo Olympics, deferred over Coronavirus, to be held from July 23 to August 8, 2021.
- All professional tennis tournaments cancelled until 20 April because of outbreak.
- ICC postpones qualifiers for 2021 Twenty20, 2023 ODI World Cups.
- NZ vs IND: New Zealand beats India by seven wickets, sweep series.
- India vs South Africa ODI series called off due to coronavirus threat.
- ICC Women’s T20 WC, IND vs AUS final: Australia register 85-run win to clinch 5th title.
- Shafali Verma becomes 2nd Indian after Mithali Raj to top Women’s T20I Rankings.
- Poonam Yadav lone Indian in Women’s T20 World Cup Team of the Tournament, Shafali 12th woman.
- Sunil Joshi named BCCI’s selection committee chairman, Harvinder Singh added to panel.
- IPL likely to be called off due to the situation surrounding COVID-19 in India.
Business News
- World markets topple after Coronavirus declared a global pandemic.
- Oil prices plunge OPEC deal failure sparks price war.
- FM Nirmala Sitharaman announces ₹1.7 lakh crore economic rescue package.
- Centre asks states to use ₹31,000 crore fund for construction workers; ₹50 lakh medical insurance announced for every health worker.
- Government approves a package of ₹13,760 crore to boost manufacturing of APIs, medical devices.
- Cabinet approves 72 changes in Companies Act, 2013 to decriminalise offences.
- Parliament passes Amendments to IBC Bill, 2020; Direct Tax Vivad se Vishwas Bill, 2020.
- Cabinet approves inclusion of the AYUSH Health-Wellness Centres in National Ayushman Mission.
- Prices of alcohols used in making hand sanitizers capped under Essential Commodities Act.
- GST council increases the rate on mobile phones and specific parts to 18% from 12%.
- RBI cuts repo rate to 4.4%, reverse repo to 4%; defers term-loan EMIs for 3 months.
- Last date for GST, IT filing, Aadhaar – pan linking extended to June 30, 2020.
- Charges for ATM cash withdrawal, not keeping saving account minimum balance waived for 3 months.
- ICICI Bank launches banking services on WhatsApp; Karur Vysya Bank enters into bullion business.
- Merger of 10 Banks into four to come into effect from April 1: FM Nirmala Sitharaman.
- Cabinet clears SBI’s draft resolution scheme for Yes Bank, SBI to buy 725 crore shares of Yes Bank at ₹10.
- ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank, investors Radhakishan Damani, Rakesh Jhunjhunwala, the Azim Premji Trust to put over ₹12,000 crore into YES Bank.
- Moratorium on Yes Bank lifted; Prashant Kumar appointed MD, CEO of the newly-reconstructed board.
- 8 PSU banks announce share swap ratios for mergers.
- Monthly balance maintenance waived off on 44.51 crore SBI savings bank accounts.
- IRDAI issues guidelines on handling of claims reported under COVID-19; directs insurers to provide
- 1-month grace period for renewal premium payments.
- Validity of driving licences, vehicle registration expired since Feb 1 extended till June 30.
- MCX, ICEX cut trading hours to 5 pm from March 30 to April 14.
- SEBI allows listed companies till June 30, to submit Q4 & FY20 results.
- No F&O contracts for Yes Bank from 29 May; NSE not to accept fresh bank guarantees by lender.
- SBI Cards ₹10,355-crore IPO oversubscribed 26.54 times; lists at 12% below issue price of ₹755.
- US Fed cuts rates to near zero and launches massive $700 billion quantitative easing program.
- Bank of England cuts interest rates to all-time low of 0.1%.
- ECB announces €750 billion Pandemic Emergency Purchase Programme (PEPP).
- Reliance sets up India’s 1st dedicated COVID-19 hospital, to pay contract workers wages.
- Excise duty hiked on petrol, diesel by ₹3 per litre.
- IOC becomes 1st company to begin supply of BS-VI fuel across country.
- Indian Railways suspends all train operations till April 14; turns old train coaches into isolation wards.
- Govt suspends toll collection on national highways to ease emergency services.
- Govt approves 100% FDI by NRIs in Air India; deadline for bids to buy 100% stake in extended till April 30.
- Centre allows airlines to provide in-flight Wi-Fi services in India.
- DGCA extends ban on domestic and international flights till April 14.
- Jet Airways gets 90 days more for resolution under IBC from NCLT.
- China rolls out cash support to domestic, foreign airlines amid coronavirus outbreak.
- All metro rail services, including Delhi Metro, suspended till March 31, 2020.
- Supreme Court allows auto dealers to sell 10% of BS-IV inventory beyond the March 31 deadline.
- SIAM, ACMA ask automakers, auto component manufacturers to shut their plants.
- Ashok Leyland buys 19% additional stake in Hinduja Leyland Finance for up to ₹1,200 crore.
- Vodafone Idea pays ₹3,042 crore, Airtel ₹1,950 crore, Reliance Jio ₹1,053 crore, to DoT for spectrum.
- SC asks telecom companies to pay up ₹1.47 lakh crore; rules out re-assessment of AGR dues.
- SBI board approves RCom resolution plan.
- Trump signs law to prevent U.S. rural telecom carriers from using Huawei network equipment.
- US Commerce Department extends Huawei license through May 15.
- Aon buys Willis for $30 billion in world’s largest insurance deal.
- Government asks Infosys Chairman for clarification regarding failure to fix technical glitches in GSTN.
- SC allows trading in cryptocurrency, quashes RBI’s 2018 ban.
- Bombay HC dismisses Chanda Kochhar’s plea against termination of employment.
- ED arrests Yes Bank founder Rana Kapoor under PMLA; CBI names Rana Kapoor’s family as accused.
- China allows key industries resume work in Wuhan, epicentre of virus outbreak.
- Govt bans export of anti-malarial drug hydroxychloroquine, sanitisers, ventilators and masks.
- Abbott receives approval for test that can detect coronavirus in 5 minutes.
- Pfizer signs deal with Germany’s BioNTech to co-develop a potential vaccine for the coronavirus.
- Sun Pharma approves share buyback of ₹1700 crore at max price of ₹425 per share.
- Infosys joins hands with IBM to launch industry-specific cloud services for businesses.
- SEC concludes probe in whistleblower case; no further action expected: Infosys.
- BSNL, SBI partner to launch UPI-based payment platform Bharat InstaPay.
- NPCI allows UPI-based cash withdrawals at merchant points.
- Amazon starts selling its futuristic cashierless technology, ‘Just walk out’, to other retail stores.
- Flipkart partners with Aegon to sell quick-access life insurance policies.
- PhonePe integrates Swiggy on its switch platform, registered users can access Swiggy within the app.
- SoftBank unveils buyback up to 7% of stock for $4.8 billion.
- Oppo launches its financial services arm, Oppo Kash, in India.
- Yes Bank reports ₹18,654 crore loss for December quarter, GNPA shot-up to ₹40,709 crore.
- Revenue Secretary Ajay Bhushan Pandey appointed as Union Finance Secretary.
- Chalasani Venkat Nageswar gets additional charge of Deputy Managing Director, CFO of SBI.
- Jack Welch, former chairman and CEO of GE, dies at 84.
- Microsoft co-founder Bill Gates leaves Board, to focus on Philanthropy.
- Arundhati Bhattacharya appointed as Chairperson and CEO of Salesforce India.
- Twitter inks pact with Elliott Management, Jack Dorsey to remain CEO.
- Sumant Kathpalia takes over as IndusInd Bank MD, CEO.
- Walmart India elevates Sameer Aggarwal as CEO.
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 31-Mar | 28-Feb | % 1M | 01-Jan | % since Jan |
| BSE | 29468 | 38297 | -23.05% | 41306 | -28.66% |
| NSE | 8598 | 11202 | -23.25% | 12183 | -29.43% |
| DOW | 21917 | 25409 | -13.74% | 28538 | -23.20% |
| NASDAQ | 7700 | 8567 | -10.12% | 8973 | -14.18% |
| FTSE | 5672 | 6581 | -13.81% | 7542 | -24.80% |
| Nikkei | 18917 | 21143 | -10.53% | 23657 | -20.04% |
| Hang Seng | 23603 | 26130 | -9.67% | 28190 | -16.27% |
| Straits Times | 2481 | 3011 | -17.60% | 3223 | -23.01% |
| Shanghai | 2750 | 2880 | -4.51% | 3050 | -9.83% |
| USD | 75.55 | 72.20 | 4.64% | 71.22 | 6.08% |
| Euro | 83.31 | 79.64 | 4.60% | 79.94 | 4.22% |
| GBP | 93.57 | 92.60 | 1.05% | 94.36 | -0.83% |
| Yen/100INR | 0.70 | 0.67 | 4.95% | 0.66 | 7.03% |
| Gold | 43255 | 41397 | 4.49% | 39067 | 10.72% |
| Silver | 39523 | 43979 | -10.13% | 46665 | -15.30% |
| Crude Brent $ | 22.74 | 50.52 | -54.99% | 66.29 | -65.70% |
| Crude Nymex $ | 20.56 | 44.76 | -54.07% | 61.30 | -66.46% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors | BANK NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 31-Mar | 19144 | 12764 | 4731 | 27319 | 7177 |
| 28-Feb | 29147 | 15213 | 6904 | 29310 | 7577 |
| % 1M | -34.32% | -16.10% | -31.47% | -6.79% | -5.28% |
| 01-Jan | 32103 | 15722 | 8210 | 30234 | 8047 |
| % since Jan | -40.37% | -18.82% | -42.37% | -9.64% | -10.82%% |
| INDIAN TRADE(USD MILLION) | |
|---|---|
| Exports | 27650 |
| Imports | 37500 |
| FDI | 5668 |
| Government Bond 10Y | 6.12% |
| GDP YoY | 1.10% |
| Inflation Rate | 6.58% |
| Forex Reserves $ M | 469909 |
| IIP % | 2.30% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs. crore) | MF (Rs. crore) |
| Equity | (58632) | 26358 |
| Debt | (58111) | (8498) |
| Total 1 M | (116742) | 17859 |
| Total Since Jan | (119927) | 76013 |
| Equity | (50434) | 33527 |
| Debt | (69493) | 42486 |
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