| News Announcement |
Impact Analysis |
| Asian markets lose nearly $4.3 trillion in market cap as dollar strengthens |
- Energy and new technology companies like Tencent have been the major losers in the Asian sell-off
- With most currencies vulnerable to a weak dollar and a weak Yuan, the market correction just got exacerbated
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| NBFC CP repayment comes back to haunt as the year comes to a close |
- Indian NBFCs have billions of dollars of CP to be repaid by the end of December and defaults are a clear possibility
- While NBFCs like Edelweiss and India Infoline have bought back some of their CPs, bank funding is the big question
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| Rupee showed a sharp appreciation to 72.50/$ on Friday |
- The jump in the rupee was largely driven by weak prices of Brent Crude which dipped below the $70/bbl mark
- The dollar also weakened after the Democrats put in a better than expected show in the mid-term elections in the US
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| Equity mutual fund collections touch a record Rs.12,622 crore in October |
- Out of the total flows, nearly Rs.7,965 crore came in via the systematic investment plan (SIP) route alone
- These smart inflows, despite the sharp correction in the markets, is surely a gratifying sign for markets
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| Sobha becomes one more realty company to show healthy profits |
- Net profits at Sobha, a South-based realtor, was up by 21% at Rs.61.30 crore in the second quarter
- Growth in top line and the bottom line was driven by higher sales off taking in the southern region
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| Bharti Airtel International begins buyback of $1.5 billion of its bonds |
- The company is making use of the proceeds from anchor investors to repay its global debt
- These bonds were due only in 2023 but Bharti is trying to deleverage its balance sheet for its India price war
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| India’s growth held back by note ban and GST, says Raghuram Rajan |
- Rajan has underscored that the adjustment may take time and the 7% growth in GDP may just not be enough
- Rajan has called 7% growth the new Hindu Rate of Growth, which was defined as 3.5% in the past
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| Nifty and Sensex post first weekly gain in the last two months |
- The Nifty and the Sensex benefited from weak global crude prices and from a return of stability in domestic markets
- However, global headwinds and the domestic liquidity challenge still remain concerns
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| Saudi Arabia and Iraq may coordinate supplies ahead of OPEC meeting |
- With Brent Crude falling sharply below the $70/bbl mark, OPEC members have been debating another supply cut
- OPEC members are wary that the current rate of production could again lead to an oil surplus in 2019
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| Digital transactions soar to Rs.245 crore in the month of August 2018 |
- This roughly reflects a three-fold rise from the corresponding period in Oct 2016 when demonetization was launched
- These exclude credit and debit card transactions and are those done on the BHIM and the UPI app
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| Finance Ministry seeks review of central bank balance sheet |
- Finance ministry officials have denied seeking capital support from the RBI to shore up government resources
- It is feared that if the government insists on RBI funding then the RBI governor may be forced to resign
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| Farmers don’t bite bait to sell their produce in the open market |
- The government permission to sell farm produce outside the APMC has not found too many takers among farmers
- This hesitation was due to a lack of awareness and APMC still being the most profitable avenue for small farmers
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| Dr. Reddy Labs gets 5 repeat observations for its Duvvada plant |
- Repeat observations are normally taken by the FDA very seriously as it shows wilful lack of compliance
- The Duvvada plant accounts for nearly 20% of all future filings of Reddy Labs and will impact its profitability
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| Titan profit misses estimates even as margins show shrinkage |
- Net profits rose by a mere 3% at Rs.314 crore, representing its lowest quarterly profit in the last 2 years
- The weak growth in profits despite healthy growth in revenues reflects a clear case of margin compression
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| TCS to go on trial in the US over racial discrimination |
- The company will have to answer to court on cases of discrimination against local American employees
- TCS and Infosys had aggressively recruited local Americans to subdue the furor over H1-B visas to the US
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| SBI reported Rs.945 crore net profit during the week |
- The SBI profit was a major boost to the banking sector as SBI returned to profits after four quarters
- Not only did the gross NPAs fall below 10%, but the provisions halved and the NIMs expanded during the quarter.
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| S&P placed Tata Motors on “Credit Watch” during the week |
- The Credit Watch status could actually impact the borrowing costs of JLR and Tata Motors in global markets
- JLR has taken a serious hit on the back of a distinct weakness in Chinese demand, a key market for JLR
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| Iran sanctions go life but in a largely diluted manner |
- A total of 8 countries including India, China, Japan, and Korea have been exempted from the ban on buying oil from China
- With exemptions also given to Iraq to source gas from Iran, the original intent of sanctions are largely diluted
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| Services sector reported a PMI of 52.2%, a three month high |
- This comes in the aftermath of the better than expected surge in PMI manufacturing too
- The services sector has seen a distinct pick up in order inflows and also in pricing power
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| FPIs sell nearly Rs.39,000 crore in the month of October |
- Selling was dominated in equities with nearly Rs.29,000 crore of selling and the balance in debt
- Apart from valuation concerns, domestic problems with the rupee value also exacerbated the equity selling
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| Finance Ministry to finalize Rs.54,000 crore capital infusion for PSBs |
- This will be largely be designed to increase the credit growth to the MSME sector India
- Government is also looking to free up funds by diluting the restrictions on credit creation by PCA banks
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