Dear Colleagues
I am pleased to attach the Economy / Market Snapshot covering all the major events in October, 2020
Indian Markets gained about 4% last month. On the sectoral indices, Bank Nifty gained about 11.50% and IT by 5% while Pharma lost about 4.50%, Auto by 2% and FMCG by 1%. FII’s were buyers in the equity market and invested around 19,800 crores while Domestic Institutions sold about 11,950 crores in the equity market. Indian Rupee closed at Rs.74.59 for 1 US $.
On the Global markets front, DOW lost 4.50%, Nasdaq lost 2%, FTSE lost 5%, Japan lost 1% while Hang Seng gained 3% and Shanghai gained 0.20%. On the commodities side, Gold gained 0.50% and Silver gained 1.50%. Brent Crude lost 8.50% and currently trading at $ 37 a barrel.
Market was very volatile towards the end of the month with the elections in the US slated to be held on 3rd November, 2020. While the predictions by majority of the agencies show that Biden has the edge, it is widely believed that Trump will win. Even if he loses, he will not concede defeat that easily. On the Covid scenario, the situation in India is much better than the last month with the numbers sliding down while the testing is also coming down. While Delhi is surging again, Bangalore, Chennai, Pune, Mumbai are under control. More relaxations are announced for November while the international skies are yet to be opened. Many countries in Europe like France, UK, Belgium, Spain have seen significant surge in the number of confirmed cases over the last two weeks causing concern. In the US, after settling down lower, the numbers have started increasing with almost 1 lakh case per day on Friday. Quarterly results in India are mixed; While IT has done very well, other sectors have not reported good results. Reliance announced its results on Friday which was not upto the mark.
With the US election results, we expect the market to be extremely volatile. With festive season in India and the festival of lights in November, we need to see how November will be for the markets.
Happy reading!……
Regards
V Murali
General News
- Global COVID-19 cases cross 46 million with over 1.2 million fatalities and more than 33 million recoveries.
- India’s COVID-19 caseload goes past 81 lakh with 10.8 crore tests conducted; recovery rate reaches 91.5%.
- PM Modi launches ‘Jan Andolan’ campaign on COVID-19 appropriate behaviour.
- MHA allows gatherings of over 100 persons in election-bound areas but with strict conditions.
- Centre eases visa restrictions, allows OCI, PIO, foreigners to visit India for any purpose, except for tourism.
- First phase of Bihar poll passes off peacefully with 54.26% voter turnout.
- EC reduces notice period from 30 days to seven days for registration of political parties.
- Rajya Sabha Election For 11 Seats in UP, Uttarakhand to be held on November 9; results on same day.
- NDA reaches seat-sharing deal, JD(U) allotted 122 seats, BJP one less.
- Tejashwi Yadav to lead Grand Alliance; RJD to contest from 144 seats, Congress on 70.
- Mike Pompeo, Mark Esper arrives in India for third India-US 2+2 ministerial dialogue.
- Basic Exchange & Co-operation Agreement(BECA) signed between India & US to deepen military ties.
- Quad foreign ministers of India, USA, Japan, Australia meet in Tokyo amid post-pandemic concerns.
- India, Japan hold strategic dialogue; focus on expanding collaboration in third countries.
- Centre notifies land laws, paving the way for any Indian citizen to buy land in Jammu and Kashmir, Ladakh.
- Ladakh standoff: India-China to hold 8th round of military-level talks next month.
- PM Modi inaugurates Atal Tunnel, longest highway tunnel in the world at 3,000-meter altitude.
- India successfully test-fires Brahmos supersonic cruise missile; INS Kavaratti commissioned into Navy.
- Rajnath Singh approves new DRDO procurement manual to facilitate indigenous defence industry.
- Rajnath Singh inaugurates BRO-built 44 major bridges across 7 states/UTs.
- Air India receives 2 Boeing 777 aircrafts, to fly President, Vice-President & PM on international visits.
- Groundwork for new Parliament building begins; to be completed in 22 months.
- Punjab govt introduces 4 Bills in Assembly to negate Centre’s farm reform laws.
- PDP chief & former J&K CM Mehbooba Mufti released from detention after 14 months.
- Widespread power outage brings Mumbai to a halt; supply being restored in a phased manner.
- Goa becomes first ‘Har Ghar Jal’ state to provide tap water connections to every rural household.
- President signs ordinance to constitute Commission for Air Quality Management in NCR & adjoining areas.
- Union Minister Ram Vilas Paswan passes away; Piyush Goyal assigned Consumer Affairs ministry.
- Fodder scam: Jharkhand HC grants bail to Lalu Prasad Yadav in Chaibasa Treasury case.
- UN food agency World Food Programme wins Nobel Peace Prize 2020 for its efforts to combat hunger.
- With 50 signatories, nuclear weapons ban treaty to enter into force: UN.
- Donald Trump signs bill to keep the government running into December after funding briefly lapsed.
- US President Donald Trump, first lady Melania test COVID-19 positive after top aide contracts virus.
- US President Trump’s pick Amy Coney Barrett sworn in as the 115th Supreme Court justice.
- Early U.S. vote surpasses 85 million , including 9 million in Texas.
- Twitter, Google, Facebook CEOs rebuff political ‘bias’ claims, vow to defend polls.
- Trump administration proposes to scrap computerised lottery system to select H-1B visas.
- Japan’s Cabinet approves measure to provide free COVID-19 vaccines to public.
- China, Pakistan and Russia win seats on UN human rights council, Saudi Arabia lose.
- China joins WHO-backed global vaccine alliance COVAX.
- British PM announces 3-tier local lockdown system amid rising coronavirus concerns.
- France and Germany Announce New Restrictions as Cases Surge in Europe.
- Spain enters six-month state of emergency to tackle pandemic.
- Russia begins production of second COVID-19 vaccine despite pending Phase 3 trials.
- Jacinda Ardern’s Labour Party wins New Zealand’s general election by landslide.
- Lebanon, Israel announce US-mediated talks over sea border.
- Pakistan to remain in FATF ‘grey’ list till Feb 2021 as nation fails to fulfil six key obligations.
- French Open: Rafael Nadal clinches 20th Grand Slam title, Iga Swiatek first Pole to win Grand Slam title.
- Honda to quit Formula 1 after end of the 2021 season.
- Lewis Hamilton wins Eifel GP to equal Michael Schumacher’s F1 win record.
- IPL: Mumabi Indians lead the table, CSK becomes first team to bow out from IPL 2020.
- Delhi Capitals pacer Anrich Nortje clocks over 156 kmph, bowls fastest ball in IPL.
- Pakistan pacer Umar Gul announces retirement from all forms of cricket.
Business News
- RBI monetary policy: MSF, Repo and Reverse Repo Rates remain unchanged, stance to be accommodative.
- RTGS system for real time fund transfer to become 24×7 from December: RBI.
- Centre waives interest on interest during moratorium for loans upto ₹2 crore.
- Indian economy to contract by 10.3% in 2020; to bounce back with 8.8% growth in 2021: IMF.
- World Bank ups FY21 GDP contraction forecast for India to 9.6%.
- 42nd GST Council meet: Centre to help 21 states borrow ₹1.1 lakh crore.
- Nirmala Sitharaman announces major schemes to boost demand in country by ₹73,000 crore.
- Govt to give ₹12,000 crore interest-free 50-year loan to states for capital projects.
- FM announces ₹37,000 crore additional capital expenditure for infrastructure.
- Government extends LTC cash voucher scheme to non-central government employees.
- Cabinet approves ₹3,737 crore bonus for 30 lakh central government employees.
- Finance Ministry kick-starts budget-making exercise for FY22.
- Last date for filing of Income Tax and GST returns extended till 31st of December.
- Govt extends bid deadline for Air India to Dec 14; revises bid criteria to enterprise value.
- Ministry of Urban Affairs-Swiggy partner to take street food vendors’ businesses online.
- FSSAI’s new food safety compliance platform to become operational across India from Nov 01.
- Govt kickstarts market borrowing, transfers ₹6,000 crore to 16 states, 2 UTs.
- Centre mandates all ministries, public departments, CPSUs to use BSNL, MTNL services.
- Govt clears 16 proposals under PLI scheme to manufacture mobile phones.
- 7,000 tonnes of onions imported, 25,000 tonnes expected before Diwali: Piyush Goyal.
- Kasturi Cotton: Smriti Irani launches first ever Brand & Logo for Indian Cotton on 2nd World Cotton Day.
- CAMS, UTI AMC, Angel Broking make their debut in the market.
- TCS surpasses Accenture to become the world’s most valuable IT company by market cap.
- IRDAI allows renewal, migration and porting of COVID specific policies.
- India’s first COVID-19 vaccine candidate approved for phase III trials.
- USFDA approves use of remdesivir to treat COVID-19 patients in hospitals.
- Dr Reddy’s receives DCGI’s approval to conduct clinical trial for Sputnik V vaccine in India.
- Russian Sputnik V COVID-19 vaccine to be tested on 100 Indian volunteers.
- IAVI, Merck KGaA, Serum Institute join hands to develop monoclonal antibodies for COVID-19.
- Passenger Vehicle sales rise 17% in Jul-Sept, Car sales up 16%, commercial vehicles sale falls 20% : SIAM.
- Vehicle registration across India decline 10.24% YoY in Sept, Passenger vehicle retail sales rise 10%: FADA.
- Supreme Court approves DGCA’s proposal on refund on air tickets booked prior and during lockdown.
- Indian Railways approves Alstom’s e-locos to run freight trains at maximum speed of 120 kmph.
- US proposes $1.5 trillion stimulus, $20 billion aid extension for Airlines.
- China’s economy grows 4.9% in Q3, extending Coronavirus recovery.
- UK budget deficit climbed to an unprecedented £208.5 billion in H1FY21 amid calls for more aid.
- COVID relief pushes US budget deficit to a record $3.1 trillion, largest since World War II.
- World Bank approves $12 billion to help developing countries finance Coronavirus vaccines.
- Britain signs first major post-Brexit trade agreement with Japan.
- Bharti Airtel rolls out cloud-based communications platform for business; tunes into $1-billion market.
- Vodafone Idea gets shareholders’ nod for increasing borrowing limit, issuance of securities.
- Reliance’s Jio Platforms receives ₹2,624 crore from Intel Capital, Qualcomm Ventures.
- Verizon signs up Microsoft, Nokia to help clients build private 5G networks.
- Sweden bans Huawei, ZTE from upcoming 5G networks.
- Nokia picked by NASA to build first cellular network on the Moon.
- Reliance Jio, Qualcomm collaborate to expand 5G trials in India, achieve over 1Gbps speeds.
- IBM to break up 109-year old company to focus on cloud growth.
- South Korea’s SK Hynix buys Intel’s NAND business for $9 billion.
- Wipro, SAP collaborate to offer advanced customer-specific content and boost productivity.
- Microsoft, AICTE collaborate to skill students and educators in next-gen technologies.
- Microsoft partners with SpaceX’s Starlink satellite service for Azure Space cloud platform.
- Paytm launches its own ‘Mini App Store’, over 300 apps join it.
- Reliance Retail gets investments from Silver Lake co-investors, GIC, TPG Capital and KKR.
- Amazon sends legal notice to Future Group for alleged breach of RoFL rights in Reliance deal.
- Digital media, news aggregators, agencies need to comply with 26% FDI cap: Govt.
- TRP scam: BARC temporarily suspends weekly ratings of news channels.
- ₹3,600 crore recovered from Vijay Mallya, SBI-led consortium of banks tells Supreme Court.
- SC junks United Breweries Holdings Ltd plea against HC order to wind up Vijay Mallya’s firm.
- Tata Group to invest ₹5,000 crore to set up phone component plant for Apple in Hosur.
- Govt appoints Ashima Goyal, Shashanka Bhide and Jayant Varma as new MPC members.
- Dinesh Kumar Khara appointed new SBI Chairman for 3 years.
- M Rajeshwar Rao appointed as Deputy Governor of RBI.
- Aditya Puri retires; Sashidhar Jagdishan takes over as HDFC Bank MD and CEO.
- Hyundai Motor Group heir apparent Euisun Chung appointed as Chairman.
Business News
- HDFC Bank reports 18.4% jump in Q2 profit at ₹7,513 crore, NII rises 16.7% to ₹15,776.4 crore.
- Kotak Mahindra Bank Q2 net profit jumps 26% YoY to ₹2,184 crore, NII rose 17% to ₹3,913 crore.
- Yes Bank posts ₹129 crore net profit in Q2, NII fell by 9.7% YoY to ₹1,973.4 crore, provisions down 11%.
- TCS Q2 net profit rises 6.6% QoQ to ₹7,475 crore, revenue rose 4.73% to ₹40,135 crore, declares ₹12
- interim dividend; approves buyback of over 5.33 crore equity shares for up to ₹16,000 crore.
- Infosys Q2 reports rises in net profit of 20.5% to ₹4,845 crore; revenue grows 8.6% YoY to ₹24,570 crore.
- HCL Tech Q2 net profit rises 7% QoQ at ₹3,142 crore, announces interim dividend of ₹4 per share.
- Wipro Q2 profit slips 3.4% to ₹2,466 crore; approves ₹9,500 crore buyback plan.
- Tech Mahindra sees 9.5% QoQ jump in Q2 net profit at ₹1,064 crore, announces special dividend of ₹15.
- Maruti Suzuki Q2 profit rises 1% YoY to ₹1,372 crore, revenue jumped 10.4% to ₹18,744.5 crore.
- Tata Motors Q2 Net loss widens to ₹307 crore; revenue drops 18% YoY to ₹53,530 crore.
- RIL reports 15% YoY drop in consolidated net profit at ₹9,567 crore, revenue fell 24% to ₹1.16 lakh crore.
- Reliance Retail Q2 EBITDA falls 14% to ₹2,009 crore, revenue down 5% at ₹39,199 crore.
- Jio Q2 net profit jumps 3-times to ₹2,844 crore; revenue zooms 33% to ₹17,481 crore.
- IOC Q2 profit up 11-fold at ₹6,227 crore, revenue from operations rose 30% QoQ to ₹1,15,749.43 crore.
- HUL Q2 profit rises 9% to ₹2,009 crore, revenue up 16% to ₹11,442 crore; announces ₹14 interim dividend.
- Britannia Q2 net profit up 23% YoY to ₹495 crore, revenue grew 12.1% to ₹3,419.11 crore.
- Biocon Q2 net profit drops 22% to ₹169 crore on higher R&D cost; revenue jumps 10% to ₹1,760 crore.
- Dr Reddy’s Laboratories Q2 net profit dips 30% YoY to ₹762.3 crore; revenue rises 2% to ₹4,897 crore.
- Vodafone Idea Q2 loss narrows to ₹7,218 crore, total income declined by about to ₹10,791 crore
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 30-Oct | 30-Sep | % 1M | 01-Jan | % since Jan |
| BSE | 39614 | 38068 | 4.06% | 41306 | -4.10% |
| NSE | 11642 | 11248 | 3.51% | 12183 | -4.43% |
| DOW | 26502 | 27782 | -4.61% | 28538 | -7.14% |
| NASDAQ | 10912 | 11168 | -2.29% | 8973 | 21.61% |
| FTSE | 5577 | 5866 | -4.92% | 7542 | -26.05% |
| Nikkei | 22977 | 23185 | -0.90% | 23657 | -2.87% |
| Hang Seng | 24107 | 23459 | 2.76% | 28190 | -14.48% |
| Straits Times | 2424 | 2467 | -1.73% | 3223 | -24.79% |
| Shanghai | 3225 | 3218 | 0.20% | 3050 | 5.72% |
| USD | 74.59 | 73.77 | 1.12% | 71.22 | 4.72% |
| Euro | 87.38 | 86.63 | 0.87% | 79.94 | 9.32% |
| GBP | 96.70 | 95.43 | 1.33% | 94.36 | 2.48% |
| Yen/100INR | 0.71 | 0.70 | 1.23% | 0.66 | 8.06% |
| Gold | 50700 | 50404 | 0.59% | 39067 | 29.78% |
| Silver | 60920 | 59919 | 1.67% | 46665 | 30.55% |
| Crude Brent $ | 37.46 | 40.95 | -8.52% | 66.29 | -43.49% |
| Crude Nymex $ | 35.79 | 40.17 | -10.90% | 61.30 | -41.62% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors | BANK NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 30-Oct | 23901 | 20917 | 7758 | 29428 | 11244 |
| 30-Sep | 21452 | 19951 | 7908 | 29842 | 11773 |
| % 1M | 11.42% | 4.84% | -1.89% | -1.38% | -4.49% |
| 01-Jan | 32103 | 15722 | 8210 | 30234 | 8047 |
| % since Jan | -25.55% | 33.04% | -5.50% | -2.67% | 39.72% |
| INDIAN TRADE(USD MILLION) | |
|---|---|
| Exports | 27580 |
| Imports | 30310 |
| FDI | 17800 |
| Government Bond 10Y | 5.88% |
| GDP YoY | -23.90% |
| Inflation Rate | 7.34% |
| Forex Reserves $ M | 560532 |
| IIP % | -1.30% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs. crore) | MF (Rs. crore) |
| Equity | 19,806 | (11,954) |
| Debt | 2,816 | 22,739 |
| Total 1 M | 22,622 | 10,785 |
| Total Since Jan | (59,265) | 1,77,383 |
| Equity | 45,057 | (926) |
| Debt | (1,04,322) | 1,78,309 |
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