| News Announcement |
Impact Analysis |
| IIP growth for September falls to a multi-year low of (-4.3%) |
- The sharp fall in the IIP was triggered by weakness across mining, electricity and manufacturing
- The major lead indicator of the capital goods segment actually saw a negative growth of (-20.5%) for September
|
| CPI inflation comes higher at 4.62%, WPI inflation lower rate of 0.16% |
- Retail inflation was led higher by a sharp rise in food inflation which actually got closer to the 8% mark for October
- WPI inflation, representing producer prices, actually fell due to the predominance of weak manufacturing inflation
|
| Trade deficit for the month of October comes in lower at $11 billion |
- The lower trade deficit was triggered by a sharper fall in imports as compared to the fall in exports
- Imports have dipped in the last few months due to weak oil prices and an overall slowdown in global trade growth
|
| Passive funds in India beat active fund returns by 400 bps year to date |
- This marks the second year in succession when the passive funds have outperformed the active funds
- This has been largely due to high skewness in returns which has made alpha difficult and costs appear inflated
|
| Telecom losses for the September quarter mount to Rs.102,000 crore |
- While nearly 50% of the losses were accounted for by Vodafone Idea, the rest was Bharti and RCOM
- These losses were an outcome of telcos writing off their AGR losses as per SC order in the current quarter itself
|
| Supreme Court upholds right of COC in taking final call in IBC cases |
- This had become a big issue in Essar case where the NCLAT had awarded better distribution to an unsecured creditor
- Supreme Court struck down the NCLAT order restoring powers to COC and also laying down a clear waterfall in distributionMoody’s slashes full year GDP growth for calendar 2019 to 5.6%
|
| Moody’s slashes full year GDP growth for calendar 2019 to 5.6% |
- This projection still assumes a growth of over 6.5% in the second half of the year, which looks steep
- The downgrade was on the back of weak consumption, the NBFC crisis and weak capital investment cycle
|
| Deposit insurance to be raised above the current limit of Rs.1 lakh |
- This was indicated by the finance minister, Nirmala Sitharaman, although the new level was not indicated
- Deposit insurance is available to savings and FD holders in scheduled banks and is governed by the DICGC
|
| Global indices could fast track Saudi Aramco into their indices |
- Global indices like the DJIA, S&P 500 and the FTSE Russell may include Aramco soon to give a better reflection
- This will also ensure large passive flows into the stock as ETFs and passive index funds start their allocations
|
| Wheat sowing area down by 23% during the current Rabi season |
- The season beginning from October has been hit by unseasonal rains, taking its toll on wheat output
- Among the wheat producers, Punjab and Madhya Pradesh are likely to be the worst affected in terms of wheat output
|
| Government scraps the NSO survey on Consumer Expenditure |
- The decision was taken by the government after it raised some serious doubts over the data quality
- The NSO survey had reportedly shown consumer spending falling for the first time in 40 years during fiscal 2017-18
|
| WTO upholds anti-India duties on Indian steel imports into the US |
- India had protested that the US was not respecting an earlier WTO ruling on steel subsidies in India
- India had been recently pulled up by the WTO for offering subsidies to a number of domestic industries in India
|
| Indian rupee finds support around the Rs.72/$ mark during the week |
- The rupee had weakened sharply after Moody’s outlook downgrade and a series of GDP downgrades
- THE RBI has been supporting the rupee around the 72/$ mark by selling dollars and that continued this time too
|
| Global debt tops $255 trillion as of year 2019; an all time record |
- The quantum of global debt assumes a per capita debt of nearly $32,500 for each of the 7.7 billion on earth
- This debt binge has expanded in the last 10 years as low interest rates made consumer loans very attractive
|
| Government likely to offer relief to Indian telecom companies |
- FM hinted at a telecom rescue package after telcos clocked Rs.1 trillion of losses in the September quarter
- Government may offer waiver of interest and penalty and a deferred payment of charges by telecom companies
|
| Hong Kong GDP shrinks by 3.2% for the first time in the recent past |
- This fall in GDP is an outcome of continued protests over autonomy and also the ongoing trade war
- Hong Kong has been protesting for a long time against increased interference from the Chinese government
|
| Bankruptcy laws amended to allow resolution of NBFC cases too |
- This was triggered after IL&FS and DHFL imploded with nearly Rs.2 trillion worth of loans outstanding
- However, the bankruptcy process will still require the approval of the respective regulator in such cases
|
| Vodafone losses raises the spectre of debt fund exposures |
- Indian debt funds have an exposure of Rs.2700 crore to Vodafone debt spread across nearly 29 debt fund schemes
- The massive Q2 loss may trigger a downgrade forcing these MFs to write off half of their exposure
|
| Gold prices fell after the US-China trade deal started taking shape |
- A trade deal and better growth is likely to be more positive for equities than for gold as an asset class
- That is because gold has normally thrived in times of economic and political uncertainty
|
| India returns to buying palm oil from Malaysia after recent ban |
- India had recently banned imports of palm oil from Malaysia over its support to the cause of Kashmir
- However, India decided to resume imports from Malaysia after they offered a larger discount on suppliels
|
