Dear Colleagues,
I am pleased to attach the Economy / Market Snapshot covering all the major events in May, 2016.
Indian markets went up by 4% last month despite weak results from the public sector banks. Nifty regained the 8,000 mark and currently nearing 8,200 levels. Overall the market is up by 2% in the Calendar year 2016. Both FII’s and Mutual funds are net buyers in the Equity market which is a good sign. Much awaited election results came in May and gave some edge to BJP. Though Congress did not fare well in Kerala and other states, it gained power in Puducherry. Mamata and Jayalalitha were winners beating the anti-incumbency. Gold and Silver prices fell while Crude prices started moving up and close to $ 50 a barrel now. Most of the public sector banks booked losses on account of the NPA’s and some of them have come with highest ever losses in their lifetime. Hopefully after this clean up, we can assume that the worst is over and see some good steps in making the public sector banks bounce back with good results.
Global markets were stable with minor changes. Nikkie (Japan) and Nasdaq (US) went up by 3%. Indian Rupee is at Rs.67.17 at the end of the month.
The IPL season is over with a surprising result of the Sunrisers, Hyderabad winning the final against the strong Royal Challengers, Bangalore, thanks to the single handed effort of their captain, Warner. Of course, Kohli scored the maximum runs in the tournament making him the best player of the tournament. Holiday season is over and schools and colleges would reopen in June making parents and children busy and getting into routine.
Happy reading!
Regards
V Murali
General News
- State legislative assembly election for the States of Tamil Nadu, West Bengal, Kerala, Puducherry,
Assam were held in the month of May. - AIADMK, under the leadership of Jayalalithaa, won a majority and formed the government in the state
of Tamil Nadu. - BJP’s first government in Assam, Sarbananda Sonowal sworn-in as Chief Minister.
- Pinarayi Vijayan takes charge as Kerala Chief Minister.
- Congress-DMK alliance wins 2016 Puducherry assembly elections. Narayanaswamy to be CM;
- All India Trinamool Congress under Mamata Banerjee won 211 seats, and thus was re-elected with an
enhanced majority. - EC cancels polls to Aravakurichi, Thanjavur Assembly seats in Tamil Nadu over bribery concerns.
- PM Modi in Iran: Historic Chabahar port pact inked; India to provide $500 million.
- Indian Regional Navigation Satellite System (IRNSS): India’s mini GPS to liberate India from
dependence on US, Russia. - EgyptAir flight crashed with 66 people on board.
- President’s Rule lifted, Rawat is the Chief Minister again in Uttarakhand.
- Pranab signs National Eligibility cum Entrance Test (NEET) ordinance, states to hold tests.
- President Pranab Mukherjee returns after six-day state visit to New Zealand.
- 2,508 cities selected under PM Narendra Modi’s scheme for affordable housing.
- UN owes India $62 million for peacekeeping contribution.
- Government releases Rs 9,367 crores under MGNREGA to drought-hit states.
- AgustaWestland chopper case: SC seeks Centre’s reply on PIL for FIR against Congress leaders and the
CBI said that retired Air Chief Marshal S.P. Tyagi, a prime accused in the AgustaWestland bribery case,
received foreign remittances in his bank account in 2009. - ED seeks Interpol arrest warrant against Vijay Mallya in money laundering case.
- Mallya dud cheque case: Court asks GMR to get correct address.
- Modi to meet U.S. investors, CEOs on June 7th.
- Forest fires in Uttarakhand destroy 180 hectares of green cover.
- Ujjwala Yojana will be one of the largest programmes of the government: PM Narendra Modi.
- Panama papers leak: SC seeks Centre’s reply on plea for CBI inquiry.
- Supreme Court allows diesel taxis to operate in Delhi & NCR; bans fresh registration of diesel cabs.
- Chinese executive Xu Qin ‘confesses’ to $800 million fraud.
- Pakistan to raise India’s Prithvi-II missile test at international level.
- MCD bypoll results: BJP loses ground, AAP makes a lukewarm debut and Congress gets on track.
- 71 killed, 127 missing as foreign aid reaches flood-hit Lanka.
- Taliban leader Mullah Akhtar Mansour ‘likely killed’ in US drone strike.
- India successfully launches reusable launch vehicle RLV- TD.
- Ashok Lavasa takes over as finance secretary.
- Celebrate tech that India creates,’ says Microsoft CEO Nadella; to meet Modi.
- India to crack down on Ponzi schemes as Modi backs banking for all.
- Indian women’s squash team ended their successful Asian Team Squash Championship with a silver
medal. - Shashank Manohar elected as ICC chairman for 2-year term.
- Anil Kumble re-appointed as ICC Cricket Committee chairman.
- Anurag Thakur becomes youngest BCCI President, Ajay Shirke is Secretary.
- IPL 2016: Sunrisers Hyderabad beats RCB wins maiden IPL title.
Business News
- Apple CEO Tim Cook Visits India; opens iOS App Development Centre in Bengaluru and the new Development office dedicated to Apple Maps in Hyderabad.
- Forex reserves grow just $18 billion to $360 billion in FY16.
- Core output rises 8.5% in April.
- Housing.com appoints former KPMG Director Dilip Tuli as Senior Vice President.
- Government wants PSUs to emulate private sector, buy back shares.
- Indian-origin tycoon Sanjeev Gupta’s firm confirms bid for Tata Steel in UK.
- China central bank injects $110.5 billion liquidity in April.
- Dell retains name in biggest tech merger in history.
- Tata group doubles published patents in 2 years to 7,000.
- Telecom sector sees over $4 billion FDI in nearly two years.
- MedPlus to set up 1,100 franchise stores; ties up with SBI.
- Government drops cap gains tax on startup shares held for 2 years.
- ITC shuts down cigarette units.
- Nasscom, Facebook partner to support over 500 product startups in India.
- Facebook wins trademark case in China.
- Former Deutsche Bank co-chief Anshu Jain, ex-colleague Bhupinder Singh to launch NBFC in India.
- April CPI may rise to 5.05%, March IIP may inch up to 2.52%.
- RIL gives 8-10% hike to 20,000 junior & mid-level managers, 100% bonus to some.
- Cairn extends maturity for $1.25 billion loan to Vedanta.
- Cabinet approves country’s first intellectual property rights policy.
- SEBI approves Ashok Chawla as NSE chairman.
- Exports shrink 6.7 per cent in April.
- Wholesale prices rise for first time in 18 months in April.
- India to renegotiate tax treaty with Singapore: FM Arun Jaitley.
- Warren Buffett’s Berkshire takes $1 billion bite of Apple.
- Warren Buffett, Quicken Loans founder in Yahoo bid: Sources.
- Google faces record 3 billion euro EU antitrust fine: Telegraph.
- RBS to close retail banking operations in India.
- SBI Associate banks propose merger with parent SBI.
- Vodafone India revenue rises 5% to Rs 44,490 crores in financial year ’16.
- MTR founder P Sadananda Maiya raises Rs 200 crores to build food venture from Peepul Capital.
- Infosys CEO Vishal Sikka rakes in $7.45 million in salary, other top executives also see jump in pay.
- CBDT releases FAQs on black money scheme.
- HP Enterprise to merge IT services unit with Computer Sciences.
- Microsoft to cut 1,850 jobs and write down $950 million in smartphone business.
- Lenovo posts $128 million annual loss, first in 6 years.
- Flipkart valuation marked down by Morgan Stanley fund to $9.39 billion.
- Google beats Oracle on Java APIs copyright, defeating $9 billion claim.
- Janet Yellen says Fed Rate hike likely appropriate in coming months.
- Tech Mahindra buys UK fintech firm in deal valued at more than 112 million pounds.
- Bad loans of SBI, Punjab National Bank, Bank of Baroda and ICICI Bank now at a staggering $18.5 billion.
- 1% tax on cash purchase of gold jewellery rolled back.
Q4 Results
- Bajaj Finance Q4 net up 36%; board declares Rs. 7/share final dividend.
- NCC net profit up 38%; board proposes 30% equity dividend.
- HUL Q4 net up 7% at Rs 1,090 crores; volume growth at 4%, lowest in six quarters.
- TVS Motors Q4 net up 30%, EBITDA margin at 6% misses estimates.
- Tata Steel’s Q4 loss at Rs 3,214 crores.
- ONGC Q4 net up 12.2% at Rs. 4,416.11 crores.
- India Cements Q4 profit up 49% at Rs 51 crores.
- ITC Q4 net up 6% at Rs. 2,495 crores; board proposes Rs. 8.50/share dividend.
- Lupin Q4 profit soars 47% on US biz despite 65% rise in R&D cost.
- Hindalco Industries’ Q4 profit more than doubles to Rs 356 crores.
- IOB posts net loss of Rs.936 crores.
- M&M Q4 profit up 6%, volume growth helps revenue beat estimates.
- Sun Pharma Q4 profit seen up 113%, Gleevec may drive US sales.
- NTPC Q4 profit falls 8% to Rs 2716 cr, revenue misses estimates.
- GMR Infra posts Rs. 953.5 crores net loss.
- SAIL posts Rs. 1,230 crores net loss due to lower steel prices.
- IL&FS Engineering Q4 net profit at Rs. 33 crores.
- GAIL (India) Q4 net up 40%.
- Jet Airways Q4 net profit at Rs 397 crore on low fuel cost.
- Amara Raja Batteries Q4 net up at Rs. 109 crores.
- Dr Reddy’s sees 85% YoY fall in Q4 net profit over Venezuela squeeze.
- Bajaj Auto Q4 net up 29% at Rs 803 crores; board proposes Rs 5/share final dividend.
- PNB reports Q4 loss of Rs 5,370 crores, biggest in Indian banking history.
- Godrej Properties Q4 net profit down 65% to Rs 18 crores.
- City Union Bank net up 13% at Rs. 112 crores.
- Kotak Bank Q4 PAT in line with Street estimates, up 15.6% to Rs 1,055 crores.
- HDFC Ltd Q4 net profit jumps 31% to Rs. 3,460 crores.
- Andhra Bank net profit tumbles 72% on higher provisioning for NPAs.
- Bank of Baroda Q4 net loss at Rs 3230 crores, provision at Rs 6858 crores.
- SBI Q4 net tanks 66%, provisions up 143%, slippages at Rs 30313 crores.
- Canara Bank posts Rs. 3,905 crores loss in Q4; shares fall 2.94%.
- Central Bank of India reported a loss of Rs.898 crores for the quarter ended.
- Karur Vysya Bank’s Q4 net up 0.12% at Rs. 138 crores.
Market News
- Indian Market went up by 4%; Nifty regains 8,000 mark.
- Auto an Bank index went up by 5%; Pharma index down by 2.6%
- Nasdaq and Japan markets went up by 3% while Dow and FTSE (London) were neutral
- Other Asian markets marginally down
- Gold down by 5% while Silver down by 7%
- Crude close to $ 50 mark;
- Indian markets up by 2% in 2016 after the fall in Jan and Feb.
- FII’s net buyers in the Equity market to the extent of Rs.2,500 crores but sellers in Debt market
- Mutual Funds net buyers in the Equity market to the extent of 6,300 crores.
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 31- May | 30- Apr | % 1M | 01- Jan | % since Jan |
| BSE | 26,668 | 25,606 | 4.15% | 26,161 | 1.94% |
| NSE | 8,160 | 7,850 | 3.95% | 7,963 | 2.47% |
| DOW | 17,783 | 17,774 | 0.05% | 17,425 | 2.05% |
| NASDAQ | 4,948 | 4,775 | 3.62% | 5,007 | -1.19% |
| FTSE | 6,231 | 6,242 | -0.18% | 6,242 | -0.18% |
| Nikkei | 17,235 | 16,666 | 3.41% | 19,034 | -9.45% |
| Hang Seng | 20,815 | 21,067 | -1.20% | 21,914 | -5.02% |
| Straits Times | 2,791 | 2,839 | -1.69% | 2,883 | -3.18% |
| Shanghai | 2,917 | 2,938 | -0.73% | 3,539 | -17.59% |
| USD | 67.17 | 66.33 | 1.26% | 66.23 | 1.41% |
| Euro | 74.96 | 75.91 | -1.26% | 71.92 | 4.22% |
| GBP | 98.40 | 97.06 | 1.38% | 97.88 | 0.53% |
| Yen/100INR | 0.60 | 0.68 | -11.76% | 0.55 | 9.09% |
| Gold | 28,612 | 30,116 | -4.99% | 26,320 | 8.71% |
| Silver | 38,555 | 41,630 | -7.39% | 33,080 | 16.55% |
| Crude Brent $ | 49.41 | 47.37 | 4.31% | 37.28 | 32.54% |
| Crude Nymex $ | 48.68 | 45.92 | 6.00% | 37.09 | 31.23% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors | BANK NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 31- May | 17621 | 11396 | 8720 | 20522 | 10995 |
| 30- Apr | 16795 | 11196 | 8289 | 19738 | 11293 |
| % 1M | 4.92% | 1.78% | 5.21% | 3.97% | -2.64% |
| 01- Jan | 17039 | 11175 | 8328 | 20185 | 11980 |
| % since Jan | 3.41% | 1.98% | 4.71% | 1.67% | -8.22% |
| INDIAN TRADE( USD MILLION) | |
|---|---|
| Exports | 20570 |
| Imports | 25410 |
| FDI | 1850 |
| Government Bond 10Y | 7.47% |
| GDP YoY | 7.90% |
| Inflation Rate | 5.39% |
| Forex Reserves $ M | 360910 |
| IIP % | 7.37% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs.crore) | MF (Rs.crore) |
| Equity | 2,559 | 6,329 |
| Debt | (4,920) | (1,093) |
| Total 1 M | (2,361) | 5,236 |
| Total Since Jan | 70,170 | 6,19,707 |
| Equity | 25,121 | 75,026 |
| Debt | 45,050 | 5,44,681 |
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