I am pleased to attach the Economy / Market Snapshot covering all the major events in September, 2019
Indian Markets registered a gain of 4% last month after the announcement of several measures including reduction of corporate tax by the Finance Minister. BSE could regain the levels of 39,000 again. Bank Nifty, Auto and FMCG indices recovered and gain by 6% while Pharma lost about 6% and IT losing 3%. FII’s pulled about Rs.4,150 crores from the equity market while Domestic Institutional Investors invested about 8,300 crores. Indian Rupee closed at Rs.70.87 for 1 US $.
September was a month of action with several announcements by the Finance Minister to reverse the slow down and the fear of recession. While the corporate rate cut is good from a long term perspective, one has to see how the deficit of Rs.1.45 lakh crore arising out of the announcements will be managed by the government. PMC Cooperative Bank is in the news with the RBI registering FIR against the promoters and CEO. Lakshmi Vilas Bank was in news with PCA by RBI. Lending has become an issue and more defaults are being reported which is making one to believe about slowdown. Quarterly results will start flowing in October, 2019 which can give some pointers on the economy and its impact on the Companies.
On the Global markets front, it was all GREEN last month. DOW gained about 2%, Nasdaq about 0.50%, London by 3%, Tokyo by 5%, Hong Kong by 1.50% and China by 0.50%. The continuing uncertainty of US-China trade war, the impeachment enquiry initiated against Donald Trump, the potential trade issues between India and US, the propaganda of Pakistan on the Kashmir issue in the international forum will keep both the Indian markets and the world markets guessing and nervous. Though Prime Minister Modi managed to get the support from the international leaders on the Kashmir issue, there will be pressure on the government to bring back normalcy in the Valley. Any untoward incident will make the situation worse and give rise to the claims of Pakistan. End of October, UK’s move on the Brexit will be tested and this can put UK in great trouble.
On the commodities side, Gold lost about 4.50% and Silver lost about 5.50%. After the drone attack of Aramco Oil Field in Saudi Arabia, Crude went up but after immediate measures, it finally settled down at almost the same levels of $ 60 a barrel by the end of the month.
Despite all the above ifs and buts, with the beginning of the festive season, let us hope that October turns out to be a good month for the market.
Happy reading!……
Regards
V Murali
General News
- Assembly election: Maharashtra, Haryana to vote on October 21, results on October 24.
- EC announces bypolls to 64 Assembly seats in 18 states, Samastipur Lok Sabha constituency in Bihar.
- Howdy Modi: PM Modi, President Trump share stage in Houston.
- PM inaugurates Gandhi Solar Park at UN, stamp commemorating Gandhi’s 150th birth anniversary released by the UN.
- Gates Foundation confers ‘Global Goalkeeper’ award to PM Modi for Swachh Bharat Abhiyan.
- PM Modi calls for comprehensive approach to avert climate crisis at UN Climate Change Summit.
- PM Modi meets Iranian President Rouhani; attends India-Caribbean Community leaders’ meeting.
- Quad foreign affairs meeting between US, Japan, India, Australia held on side-lines of UNGA.
- 74th session of UNGA: PM Modi, Pakistan PM Imran Khan address the world body.
- President Ram Nath Kovind embarks on a 3-nation tour to Iceland, Switzerland and Slovenia.
- PM Modi meets Russian President Putin; sign 25 pacts in sectors including trade, defence, energy.
- 5th Eastern Economic Forum: India extends $1 billion line of credit for development of Far East.
- Rajnath Singh visits Japan, South Korea to strengthen defence, military ties.
- Piyush Goyal embarks on two-day visit to UAE to seek FDI in petroleum, railways, aviation sectors.
- Farooq Abdullah, under house arrest since August, detained under stringent public safety act.
- Omar Abdullah, Mehbooba Mufti finally allowed to meet relatives after weeks of detention.
- UNHRC session: Pakistan minister Qureshi raises J&K issue, demands UN probe.
- President appoints new Governors in 5 States- Maharashtra, Himachal, Kerala, Telangana, and Rajasthan.
- PM Modi China’s Xi Jinping meet scheduled to be held from October 11 to 13 at Mahabalipuram.
- Chandrayaan 2: Vikram Lander fails to make a soft landing, loses contact with ISRO just before touchdown.
- Orbiter continues to orbit the moon, will conduct remote-sensing observations.
- SC gets 4 new judges, taking its total strength to 34.
- Supreme Court targets October 18 to complete Ayodhya hearings.
- SC sets up 5-judge Constitution Bench to hear pleas challenging abrogation of Article 370.
- P Chidambaram sent to Tihar jail Oct 3 in INX Media case, HC transfers Aircel-Maxis cases to Special judge.
- Saradha Scam: CBI sets up special team to trace former Kolkata Police commissioner Rajeev Kumar.
- After 4 days of questioning, ED arrests DK Shivakumar in money laundering case.
- Mehul Choksi will be extradited: Antigua PM Browne.
- AgustaWestland chopper scam: Ratul Puri arrested by ED.
- Air Chief Marshal Rakesh Kumar Bhadauria takes charge as new IAF chief.
- Pramod Kumar Mishra appointed as new Principal Secretary to PM Modi.
- PM Modi, Nepal PM jointly inaugurate South Asia’s 1st cross-border petro pipeline.
- PM launches national pension scheme for small traders, self employed persons.
- EC launches Electors Verification Programme to verify and authenticate voter details.
- Indian Air Force inducts 8 Apache AH-64E attack helicopters acquired from the US.
- India participate in multi-nation war games with Pakistan, China armies in Russia.
- Pakistan to open Kartarpur corridor for Indian Sikh pilgrims on November 9, agrees on visa-free travel.
- Tamil Nadu CM Edappadi K Palaniswami embarks on a two-week official travel to the UK, USA, and Dubai.
- Chandrababu Naidu, son put under house arrest for 24 hours ahead of TDP rally against YSRCP govt.
- India declares Saeed, Azhar, Dawood, Lakhvi terrorists under new anti-terror law.
- Veteran lawyer and former Union minister Ram Jethmalani passes away at 95.
- Trump meets Imran Khan on UNGA sidelines, says ready to mediate on J&K if India and Pakistan agree.
- Trump declares US-Taliban talks ‘dead’; Taliban vows to continue fighting against US force.
- Speaker Nancy Pelosi announces formal impeachment inquiry of Trump.
- Pentagon diverts $3.6 billion in military construction funds to build Trump’s border wall.
- John Bolton out as Trump’s National Security Adviser.
- 2 Saudi Aramco oil facilities hit by drones; Saudi displays arms to UN, says attack sponsored by Iran.
- Greta Thunberg tells UN climate summit to take action needed to avert worst effects of climate change.
- UK PM Boris Johnson suspends Parliament; UK Supreme Court rules it unlawful.
- Boris Johnson suffers major defeat in no-deal Brexit vote and in call for an early election.
- Amazon leaders sign rainforest preservation pact amid wildfire crisis.
- Israel elections : Netanyahu and rival Gantz short of majority, coalition talks loom.
- Justin Trudeau calls for Canadian polls in October, dissolves Parliament.
- Hong Kong’s Carrie Lam formally withdraws extradition bill, holds open dialogue with protesters.
- Zimbabwe ex-President Robert Mugabe, former French President Jacques Chirac dies.
- Delhi and District Cricket Association (DDCA) renames Feroz Shah Kotla as Arun Jaitley stadium.
- ICC Test Rankings: Smith retains top spot, Kohli No 2; Cummins No 1 bowler.
- India vs West Indies: India sweep the test series 2-0.
- India vs South Africa: T20 series levelled 1-1.
- Mithali Raj announces retirement from T20 Internationals.
- Ashes 2019: Australia take home Urn but England level the series 2-2.
- Pakistan vs Sri Lanka: 10 SL cricketers opt out of Pakistan tour, 1st ODI abandoned due to rain.
- ICC announces digital content partnership with Facebook till 2023.
- World Wrestling Championships: Injured Deepak Punia settles for silver; claims World No 1 spot in 86kg .
- Vinesh Phogat wins maiden Wrestling World Championships Bronze medal, qualifies for 2020 Olympics.
- World Boxing Championships: Amit Panghal loses final to settle with historic silver.
- Shooting World Cup: India tops the tally; Yashaswini Deswal secures 9th Olympic quota for India.
- US Open: Canadian Bianca Andreescu clinches maiden Grand Slam title, Rafael Nadal his 19th Slam title.
- Lionel Messi won the FIFA Men’s Player of the Year award, Megan Rapinoe bagging the women’s prize.
Business News
- Govt slashes Corporate tax rates for domestic and new domestic manufacturing companies.
- Surcharge levied on capital gains on FPIs and domestic investors withdrawn; pre-budget tax rates restored.
- Buybacks announced pre-July 5 exempted from buyback tax.
- Govt announces ₹50,000 crore export incentive scheme and ₹10,000 crore push for affordable housing.
- Mega shopping festival to be held across the country in four destinations, by March 2020.
- 37th GST meet: GST Council cut rates for hotel tariffs, hikes tax on caffeinated beverages.
- Rates cut on job work in diamond industry, 1,500cc diesel, 1,200cc petrol vehicles.
- GST Annual filing waived off for taxpayers below ₹2 crore turnover.
- Govt bans production and sale of e-cigarettes citing health hazards.
- Centre to infuse ₹12,000 crore in state general insurance firms.
- Govt’s total capex spend at 42% till August-end; PSUs, ministry to share capex plans for next 4 quarters.
- CBDT sets up National e-Assessment Centre for faceless scrutiny of IT returns.
- NITI Aayog gets ₹7,000 crore for AI project.
- J&Ks 1st global investors’ summit postponed to next year.
- Govt asks banks not to declare any stressed MSME as NPA till March 2020.
- RBI increases banks’ loan exposure limit to single NBFC from 15% to 20% of its capital base.
- RBI places Punjab and Maharashtra Cooperative Bank under directions for 6 months.
- RBI initiates prompt corrective action for Lakshmi Vilas Bank after directors probed for alleged fraud.
- Rana Kapoor to sell entire Yes Bank stake to Brookfield Asset Management.
- Muthoot Finance closes down 15 branches in Kerala.
- Oriental Bank reveals loan exposure of ₹289 crore to Nirav Modi, Mehul Choksi.
- Securities Appellate Tribunal squashes SEBI’s ban on PwC in Satyam scam.
- US Fed cuts interest rate by 25bps, citing ‘uncertainties’; describes US economic outlook as favourable.
- Bank of Japan leaves policy unchanged, calls for review in October as risks rise.
- IRCTC IPO hits market, price band fixed at ₹315-320 a share.
- Tech Mahindra secures large multi-year AT&T deal to accelerate IT network.
- Microsoft approves $40-billion share buyback programme, raises quarterly dividend by 11%.
- MTNL raises ₹800 crore claims from DoT, seeks reimbursement on past bond issue, rent dues.
- Reliance Jio launches its Jio Fiber broadband service; Airtel takes on with Xstream STB, smart stick.
- Apollo launches ‘ProHealth’, an AI powered personalized healthcare programme.
- US, China wrap up mid-level trade talks, agree for high-level trade negotiators in early October.
- India, ASEAN agree to review free trade pact in goods.
- Petronet signs MoU with US firm Tellurian to boost LNG imports.
- India Inc’s foreign borrowings more than double to $4.98 billion in July: RBI.
- TN govt launches EV Policy, announces 100% tax exemption to EVs till 31 December 2022.
- Passenger vehicle sales decline for 10th straight month; log worst-ever fall of 31.57% in August.
- Ashok Leyland, Maruti Suzuki, Mahindra, Daimler announce cut down on working days at its plants.
- Tata Motors unveils new modular Ziptron EV technology.
- Hyundai Motor Group, Aptiv to set up $4 billion self driving car venture.
- TVS Motor gets nod for patent on its hybrid 3-wheeler.
- GM taps Google for in-vehicle apps, voice assistant starting in 2021.
- Toyota Tsusho & Maruti Suzuki to jointly setup high-end vehicle scrappage unit.
- Hyundai, Kia Motors to acquire stake in Ola Electric Mobility.
- Hyundai Motor joins European electric car charging venture Ionity.
- M&M acquires 55% stake in Meru for cash consideration of up to ₹201.5 crore.
- Boeing suspends testing of long-haul 777X aircraft; take off postponed.
- IndiGo partners with SonyLIV to provide mobile inflight entertainment.
- Google For India: Google Search launched in 7 Indian languages; launches AI Research Lab in Bengaluru.
- Facebook, YouTube, Twitter & Microsoft to set up independent watchdog to tackle online extremism.
- Alibaba unveils self-developed AI chip for cloud computing services.
- Huawei begins producing 5G base stations without US components.
- OnePlus begins smartphone exports from India.
- WeWork delays IPO; CEO Adam Neumann steps down to stay on as non-executive chairman.
- AB InBev Asia unit raises $5 billion in world’s second largest 2019 IPO.
- Amazon Alexa voice assistant gets Hindi, Hinglish support in India.
- Netflix, Karan Johar’s Dharmatic Entertainment announce multi-year content partnership.
- Accenture launches largest interactive experience centre in Mumbai.
- Blackstone signs definitive deal to buy Coffee Day’s tech park for ₹2,700 crore.
- British travel giant Thomas Cook declares bankruptcy, German subsidiary files insolvency to restructure.
- OYO Hotels and Homes enters Mexico as part of expansion plans in Latin American markets.
- Global Economic Freedom index: India jumps 11 spots to 79; Hong Kong and Singapore top the table.
- Infosys ranks 3rd in Forbes ‘World’s Best Regarded Companies’ list.
- ISB Hyderabad ranks 7th in Forbes list of ‘Best Business School 2019’.
- India moves up 6 places to 34th rank on world travel & tourism competitiveness index: WEF report.
- Jack Ma steps down as chairman of Alibaba on 55th birthday amid uncertainty, Sino-US trade tariff war.
- Ramkumar Ramamoorthy appointed Chairman and MD, Cognizant India.
- Bulgarian economist Kristalina Georgieva named IMF MD.
- ADB president Takehiko Nakao resigns, to continue in office till January next year.
- Juul boss exits as Philip Morris, Altria end merger talks.
- Ebay CEO Devin Wenig steps down.
| WORLD INDICES | |||||
|---|---|---|---|---|---|
| Indices | 30-Sep | 30-Aug | % 1M | 01-Jan | % since Jan |
| BSE | 38667 | 37333 | 3.57% | 36255 | 6.66% |
| NSE | 11474 | 11023 | 4.09% | 10910 | 5.17% |
| DOW | 26917 | 26403 | 1.95% | 23327 | 15.39% |
| NASDAQ | 7999 | 7963 | 0.46% | 6635 | 20.56% |
| FTSE | 7408 | 7207 | 2.79% | 6728 | 10.11% |
| Nikkei | 21756 | 20704 | 5.08% | 20015 | 8.70% |
| Hang Seng | 26092 | 25725 | 1.43% | 25846 | 0.95% |
| Straits Times | 3120 | 3107 | 0.43% | 3069 | 1.67% |
| Shanghai | 2905 | 2886 | 0.66% | 2494 | 16.49% |
| USD | 70.87 | 71.40 | -0.74% | 69.45 | 2.05% |
| Euro | 77.17 | 78.49 | -1.68% | 79.50 | -2.94% |
| GBP | 87.06 | 88.82 | -1.98% | 88.40 | -1.51% |
| Yen/100INR | 0.65 | 0.67 | -2.50% | 0.63 | 3.15% |
| Gold | 36913 | 38656 | -4.51% | 31422 | 17.48% |
| Silver | 44119 | 46742 | -5.61% | 38786 | 13.75% |
| Crude Brent $ | 60.78 | 60.43 | 0.58% | 53.50 | 13.61% |
| Crude Nymex $ | 54.56 | 55.10 | -0.98% | 45.31 | 20.41% |
| NIFTY SECTORAL INDICES | |||||
|---|---|---|---|---|---|
| Sectors | BANK NIFTY | CNX IT | CNX AUTO | CNX FMCG | CNX PHARMA |
| 30-Sep | 29103 | 15540 | 7493 | 31135 | 7548 |
| 30-Aug | 27428 | 16010 | 7009 | 29257 | 8072 |
| % 1M | 6.11% | -2.94% | 6.90% | 6.42% | -6.50% |
| 01-Jan | 27392 | 14451 | 9182 | 30398 | 8882 |
| % since Jan | 6.25% | 7.54% | -18.40% | 2.42% | -15.02% |
| INDIAN TRADE(USD MILLION) | |
|---|---|
| Exports | 26130 |
| Imports | 39580 |
| FDI | 3812 |
| Government Bond 10Y | 6.70% |
| GDP YoY | 5.00% |
| Inflation Rate | 3.21% |
| Forex Reserves $ M | 428570 |
| IIP % | 1.50% |
| INSTITUTIONAL TRADING ACTIVITY | ||
|---|---|---|
| Particulars | FII (Rs.crore) | MF (Rs.crore) |
| Equity | (4157) | 8284 |
| Debt | (125) | 30540 |
| Total 1 M | (4282) | 38824 |
| Total Since Jan | 75967 | 460655 |
| Equity | 45894 | 48937 |
| Debt | 30073 | 411718 |
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