| News Announcement |
Impact Analysis |
| IL&FS Board calls for a full audit of all group companies |
- It has emerged that the actual subsidiaries and group companies may be closer to 350 rather than 150
- The balance sheet of the company needs to be fully transparent before the board can make commitments
|
| Sensex loses over 5000 points from its peak touched in late August |
- The correction of 13% was triggered by the IL&FS fiasco but fanned by a weak rupee and weaker macros
- In the last two weeks, global cues like US treasury yields, Italian defiance and China slowdown are also hurting
|
| Global markets take deep cuts during the week gone by |
- US markets fell sharply in response to benchmark 10-year yields crossing the 3.2% mark on allocation worries
- Europe has been hit by worries that an Italian secession from the Euro could roil the $1 trillion Italian bond market
|
| Rupee stayed beyond the 74/$ mark for most part of the week |
- The rupee took a hit after the RBI maintained status quo on repo rates in its October policy
- There appears to be some sanity returning after the RBI promised liquidity support and an NRI special deposit issue
|
| FIIs sell Indian equity and debt worth Rs.18,000 crore in first 2 weeks |
- After a weak September, the month of October saw aggressive FII selling on dollar strength and macro worries
- FII selling in equities has been much higher than debt due to valuation concerns at the current price levels
|
| Brent Crude tapered closer to $81/bbl after touch a peak of $86/bbl |
- Hurricane Michael is expected to reduce crude demand by nearly 1 million bpd, which has depressed prices
- There has also been a sustained increase in US inventory and Iran sanctions are unlikely to really impact supply
|
| CESC demerger into 3 different companies approved by NCLT |
- CESC will now only retain the power business of the
RP Goenka group with other businesses going out
- While RP and SP Goenka retail interests will be merged into one company, there will also be merger of venture businesses
|
| Avenue Supermarts (D-Mart) reports 26% rise in profits to Rs.226 crore in Q2 |
- Revenues for the quarter sustained near 40% growth and is now inching towards the Rs.5000 crore per quarter mark
- The stock has corrected from higher levels but still retains its premium valuations among retail peers
|
| Emerging Markets see a total equity wealth erosion of $1 trillion |
- The losses have been driven by a strong dollar and the spectre of a trade war between the US and China
- Most emerging markets, including India and China, have suffered from weak markets and a weaker currency
|
| SBI agrees to triple its lending support for Indian NBFCs |
- SBI will increase its lending support to last mile NBFCs from Rs.15,000 crore to Rs.45,000 crore
- With other banks also joining the fray, the bond market liquidity issue should be resolved for the NBFCs
|
| Bandhan Bank promoters get exemption for post-IPO lock-in |
- Bandhan Bank was pulled up by RBI for not diluting stake but that was held up due to the post-IPO lock-in stipulations
- With the SEBI granting exemption, Bandhan Bank can dilute through fresh issue or through a major acquisition
|
| TCS came up with another set of sterling results in 2nd quarter |
- The big news was that the OPM of TCS was up by 150 bps at 26.5%, one of its best performances in 7 quarters
- With a 28% share of digital revenues, TCS is poised to sustain its growth in top-line and bottom-line in coming quarters
|
| RBI shifts onus of intervention from spot dollar to forward dollar market |
- This strategy was started by Dr. Rajan and has been sustained under the new RBI head too
- Spot selling of dollars compresses liquidity in rupee markets and so forward dollar intervention is now twice spot volumes
|
| There was a sharp 14% fall in the gold imports during September 2018 |
- The fall in gold demand was due to the base effect and the fact that jewellers had stocked heavily in August
- There was also some fall in gold imports due to the Kerala impact, which is the largest per capita gold consumer
|
| CPI inflation for the month of September comes in at 3.77% |
- This is marginally higher than 3.69% in August due to slightly higher food and oil prices during the month
- However, the overall retail inflation still remains well below the RBI comfort level of 4%
|
| IIP at a four month low of 4.3% for the month of August 2018 |
- This is a sharp fall from the average IIP growth of around 6% in the months of June and July this year
- While mining showed negative growth, manufacturing disappointed with just 4.6% growth on a YOY basis
|
| Government cuts excise duty on ATF from 14% to 11% |
- This move should come as a boon for airline companies that are trapped between high fuel costs and competition
- However, the impact may just about neutralize the effect of the rise in import duties announced last month
|
| JLR to shut production for 2 weeks due to weak demand in China |
- China has hit by the trade war with the US and there is an overall slowdown in demand for consumer products
- The move also had a negative impact on Tata Motors as the stock crashed to a 7-year low during the week
|
| Liquid funds see outflows of Rs.3 trillion but equity funds see inflows |
- Liquid fund redemptions by corporates became rampant after the IL&FS default and the DSP sell-off
- However, equity SIP inflows continued to flow at the rate of $1 billion per month
|
| CBDT extends the tax filing deadline for audited entities to Oct 31st |
- This was largely to give more time to tax assessees to reconcile their accounts with the GST data
- This is the first full year assessment after the GST was introduced in India in July 2017
|
| BOI AXA wrote off Rs.100 crore exposure to IL&FS Bonds |
- It is the first fund to write off the entire amount and this write off will render a 5% hit on the NAV of the fund
- AMCs like DSP and Aditya Birla MF have exposure in excess of Rs.600 crore to IL&FS bonds
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