| News Announcement |
Impact Analysis |
| World markets fell sharply as US and Europe touched multi-month lows |
- US markets were hit by the potential outcome of a trade slowdown caused by the sanctions
- European Union has been trying hard to save the Euro by forcing Italy to go for more austerity in its budget
|
| RBI forex reserves fall by $5.2 billion to $394 billion in October 2nd week |
- The sharp fall in the forex reserves has been largely due to the RBI supporting the rupee at around the 74/$ level
- With falling forex reserves, the options in front of the RBI may be limited and aggressive forex intervention may not be viable
|
| Arun Jaitley sounds out PSBs to ensure no defaults by NBFCs |
- After the IL&FS defaults, the government is cautious of any negative impact on the NBFCs and bond markets
- SBI had promised to triple its NBFC lending this year and other banks are also following suit
|
| Viral Acharya of RBI cautions against any relaxation to PCA norms |
- Government had sought concessions for Prompt Corrective Action (PCA) banks to resume their lending operations
- However, RBI has turned down that idea since it could potentially undermine the entire NCLT process
|
| Government to inject Rs.40,000 crore liquidity into markets in November |
- This infusion will be done by the RBI via open market operations i.e. buying bonds to infuse liquidity
- These OMOs will keep the liquidity situation comfortable also keep the bond yields at the short end under check
|
| ICICI Bank turns around to report profit of Rs.909 crore in Q2 |
- While the profits were 56% lower than Q2 last year, it is surely an improvement over the huge loss in the first quarter
- While gross NPAS were still higher, net NPAS showed up lower at 3.65% compared to 4.19% previously
|
| Equitas and Ujjivan hit all-time lows after RBI ruling on listing of small bank |
- On Thursday, the RBI had instructed Ujjivan and Equitas to list their small banking business as a separate entity
- Existing shareholders sold out on worries that they may not be allotted shares of the small finance bank
|
| US GDP forecast for the 3rd quarter comes in higher at 3.50% |
- This positive news comes on the back of fears that the trade war with China could hit US GDP growth
- The higher GDP cues from the US economy could mean that the US Fed could sustain its path of hawkishness on rates
|
| NASDAQ worst hit after weak results from Amazon and Google |
- IT companies with predominantly global businesses are feeling the heat of a strong dollar
- Most tech stocks were also quoting at very rich valuations and this correction had a spill-off on Indian IT stocks too
|
| NBFCs buy back commercial paper from the market ahead of redemption |
- The trend began with IIFL and JM and now Edelweiss has also bought back CP worth Rs.1000 crore
- Buy back of CP is a message to the markets that the company has sufficient cash reserves to handle liquidity pressures
|
| Weak rupee boosts remittances into India in the last year |
- Remittances during 2018 have been higher by 10% at $76 billion compared to the previous year
- NRIs do look at bringing in funds when the rupee weakens to benefit from higher return and a strengthening rupee
|
| Bharti Airtel reported 58% fall in the net profits for the second quarter |
- The sharp fall in the net profits was on the back of ARPUs falling to just Rs.101 due to stiff competition
- During the week, Bharti had received commitments from 6 global investors to invest $1.25 billion in its Africa business
|
| Committee of Creditors reject Ruia offer to buy their own shares |
- After the Arcelor offer, Ruias offered to pay Rs.54,389 crore to retain their stake in the company
- The COC, however, rejected the bid as being against the basic NCLT principles and opted to go with the Arcelor Mittal bid
|
| Indigo Airlines reported a loss of Rs.652 crore for the second quarter |
- This is the first loss reported by Indigo in its 12 quarters of listing and was driven largely by higher fuel prices
- While ATF and competition have hit Indigo, their spread are still among the best and they retain a 42% market share
|
| Cadilla group to buy part of the food portfolio of Kraft Heinz |
- The bid for $628 million will be made jointly by Cadilla Healthcare and Zydus Cadilla
- The purchase will include some of the marquee brands of Kraft Heinz like Complan and Glucon-D
|
| Brent Crude fell sharply during the week and settled well below $80/bbl |
- The slowdown in oil prices was primarily driven by rising inventories in US oil
- The markets are also fearing a compression in global oil demand due to a slowdown caused by trade wars
|
| Adani Ports net profits drops by 39% on the back of forex losses |
- The lower profits of Rs.606 crore was largely due to a one-time forex loss of Rs.570 core during Q2
- The company, in the meanwhile is all set to achieve its target of 200 million tonnes of cargo at its Mundhra port
|
| Bajaj Finance flatters the street with a 54% jump in net profits in Q2 |
- In the midst of the NBFC melee, Bajaj Finance reported sharp rise in profits on the back of 42% growth in NII
- Gross NPAs were marginally up in the quarter to 1.49% but Bajaj Finance does not have a maturity mismatch challenge
|
| Oberoi Realty surprised the street with 100% growth in net profits in Q2 |
- Oberoi saw a 100% growth in sales and profits during the quarter resulting in net margins of over 33%
- The company has benefited from a small but focused franchise in the top end of the Mumbai segment
|
| Tata Sons writes off Rs.28,652 crore of its investment in telecom sector |
- This includes the entire investment made by Tata Sons into Tata Tele over the years
- The mobile business of Tata Tele was sold to Bharti and the enterprise business to transferred to Tata Communications
|
| HDFC Bank reports 21% growth in revenues and profits for Q2 |
- The bank also showed a 20% growth in the net interest income (NII) and in CASA deposits
- The bank did see a marginal rise in gross NPAs from 1.26% to 1.33% during the second quarter
|
