| News Announcement |
Impact Analysis |
| Second quarter GDP growth came in at 4.5% and GVA growth at 4.3% |
- The GDP growth was impacted by mere 2% growth in agriculture and a negative -1.1% growth in manufacturing
- This is the lowest GDP growth in the last 24 quarters and is likely to pull down the full year GDP to around 5%
|
| September quarter sees pressure on consumption and capital formation |
- The Private Final Consumption Expenditure (PFCE) fell sharply in September quarter on the back of weak demand
- The Gross Capital Formation (GCF) for the quarter came deep in the negative territory hinting at business pressure
|
| Core Sector growth came in for October at a negative level of (-5.8%) |
- There was pressure across the 8 key sectors with oil refining and drilling taking the deepest hits in the quarter
- With negative IIP and core sector growth for 2 quarters in succession, it does not bode well for Q3 GDP growth
|
| Uddhav Thackeray wins the trust vote on the floor of the assembly |
- With the BJP staging a walk-out from the assembly the outcome was almost a foregone conclusion
- The combination of NCP / Shiv Sena and Congress had a total tally of 169 seats with the help of smaller parties too
|
| Finance Minister hints at more interventions after GDP numbers |
- GDP numbers at 4.5% pushed Nirmala Sitharaman to hint at more fiscal push for tax cuts and public spending
- The sharp fall in the GDP almost makes the RBI rate cut in December a foregone conclusion
|
| US law on Hong Kong could be the thorn in the trade deal |
- The US House went ahead and passed a resolution supporting the freedom movement in Hong Kong
- This has irked China as the US has also called on China to exercise restraint. This could delay the trade deal further
|
| RBI refers Dewan Housing to NCLT for debt resolution plan |
- This will be the first case of an NBFC being referred to the NCLT for debt resolution under the November 15th rule
- Dewan Housing owes close to Rs.92,000 crore to banks and financers and may entail a 50% haircut to lenders
|
| Chanda Kochhar drags ICICI Bank to Bombay High Court over termination |
- The contention is that ICICI Bank could not terminate her services after her resignation had already been accepted
- ICICI Bank had terminated Kochhar and also cancelled all benefits given to her since the year 2008
|
| Government may look to expand its disinvestment list of PSUs |
- According to CLSA, the government could look to divest BHEL, GAIL, Hindustan Zinc and NALCO; apart from BPCL and SCI
- The government is likely to fall well short of its revenue targets with direct taxes and GST collections weak
|
| SEBI gives go ahead for Debt ETFs but with caveats included |
- SEBI has stipulated that the Debt Fund ETF must have minimum 8 issuers with maximum 15% exposure for one
- Debt ETFs are expected to be a solid tool for investors to invest in quality debt paper via the passive route
|
| Yes Bank board approves raising of capital of up to $2 billion |
- Yes Bank has seen its core capital ratio falling to 8.7%, just above the statutory limit of 8%; calling for more equity
- The capital base of Yes Bank has been eroded due to huge divergence in NPA reporting by the bank
|
| October non-food credit growth slows to just about 8.3% |
- This is a sharp fall in the non-food credit growth compared to the 13.4% credit growth witnessed in last October
- However, the non-food credit growth is expected to pick up in the third quarter with the onset of the busy season
|
| SEBI refuses to review the POA trading ban on Karvy Stock Broking |
- Karvy had approached SAT against the SEBI decision to ban Karvy from opening fresh accounts and operating its POA
- In turn, the SAT had asked SEBI if the ban could be lifted till the final order. The SAT order is expected on 02nd December
|
| Fiscal deficit for the current year touches 102% of budget target |
- In the first seven months, the fiscal deficit had managed to cross the full year fiscal target of Rs.7.20 trillion
- This would clearly mean that the actual fiscal deficit could overshoot the 3.3% budget target by a margin
|
| C Rangarajan bats for cash based capitalization of PSU banks |
- According to the former RBI governor, cash capitalization of PSU banks would be more value accretive than bonds
- Currently, the government recapitalizes banks through the issue of recap bonds; which has its own limitations
|
| Gold sees worst month in November after the year 2016 |
- Global gold prices fell sharply during November as the world appeared to be moving towards a US / China trade deal
- In the last 6 months, gold had seen a rally to cross the $1500/oz mark on the back of rising global uncertainty
|
| Reliance looks to sell its news based media assets soon |
- Times Group is already conducting the due diligence of the News 18 books to arrive at a valuation
- The idea of integrating media content was to gel with the ecosystem of Reliance Jio, which has been done now
|
| US oil industry may be facing funding problems for the first time |
- Low rates, which drove the shale oil rally, has now come under question with rates and risk higher now
- Markets fear that if the US is unable to continue pumping oil then the global oil market may be undersupplied
|
| Total revenues of telecom sector contract by Rs.44,000 crore in 2 years |
- This has been largely driven by falling ARPUs in the back of tough price competition from Reliance Jio
- The recent AGR penalty to the tune of $13 billion is only going to compound the problem further from here on
|
| RBI deputy governor raises some serious concerns over Mudra loans |
- While the NPA percentage is just above 2.5%, RBI is worried about the number of borrowers in default status
- One of the concerns has been that Mudra loans are given without proper due diligence due to limited information
|
| Pre poll estimates peg Boris Johnson comfortably ahead in UK elections |
- The Conservatives lead has narrowed but should still romp home in the December 12 elections in UK
- This would mean that the BREXIT would get pushed through as a top priority under the new government
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