| News Announcement |
Impact Analysis |
- Crude oil prices cross above $60/bbl for the first time in October
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- The sharp rise in crude prices was driven by OPEC chairman committing they were open to further supply cuts
- But the real boost for oil prices came from geopolitical factors after Iranian tankers were attacked off the Saudi coast
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- Wall Street and other global markets rallied through the week
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- The rally was driven by hopes of a trade truce between the US and China as well as a BREXIT resolution
- The prospects of progress on the US/China talks improved after China agreed to a partial trade deal
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- Infosys profits fall but guidance better than expectations
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- Infosys Q2 profits fell by 2.2% to Rs.4019 crore, better than market estimates. Growth guidance was upped to 11%
- It was hardly surprising that Infosys was the top gainer on Friday and the rally looks all set to continue in days to come
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- Most global brokerages downgrade price target for TCS
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- The company did disappoint the street after its growth in profits turned out lower than street expectations
- For over 5 years, TCS sustained its premium valuation spread over Infosys but analysts see that spread narrowing
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- Passenger car sales fell by 23.7% for the month of September on a YOY basis
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- The sharp fall in car sales has been attributed to weak demand and weak financing cycles due to the NBFC crisis
- Most auto companies have already planned shutdowns in factories to align demand with supply
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- IIP growth for August 2019 shrinks to a 7 year low of (-1.1%)
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- The sharp fall in IIP was expected after the extremely weak GDP number and core sector numbers we got to see
- Not surprisingly, manufacturing which accounts for nearly 75% of the IIP drove the IIP growth lower.
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- Singh brothers of Ranbaxy arrested in the Rs.740 crore fraud case
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- This pertains to the fraud at Religare Finvest, where the Singh brothers had round-tripped funds to personal accounts
- Apart from the two Singh brothers, key company officials including Mr Godhwani were also arrested
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- Fed to infuse $60 billion into the financial markets each month
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- This was in line with the promise made by the US Federal Reserve in its previous FOMC meeting
- This will be an important part of the liquidity support that the Fed will provide to US markets
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- Reliance Capital completes the sale of RNAM stake to Nippon Life
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- Post the stake sale, Nippon Life now holds 75% stake in RNAM and the name change is likely to reflect the new ownership
- Nippon Life has already invested close to Rs.7600 crore into RNAM and underlines its long term interest in India
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- Sundaram AMC shifts its registry business back to Karvy
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- Sundaram MF had moved out of Karvy registry more than 12 years back to set up its own in-house registry with BNP
- However, the shift back is in line with the group decision to focus their efforts on the fund management business
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- BOB AMC to merge with BNP Paribas AMC to create scale
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- Both the AMCs were too small and the merger would at least provide them the scale to expand operations
- Indian mutual fund industry may need another round of consolidation after the recent SEBI rules
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- Gold and jewellery demand remains tepid in the festive season
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- The weak demand has been driven by a cautious approach, high gold price and high cost of credit
- As auto sales have shown, the problem of consumer willingness is a lot deeper than we can imagine
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- India’s forex reserves surge by $4.37 billion to $438 billion
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- Forex reserves have touched a record as the RBI intervention to support the INR has sharply reduced
- The improved forex reserves gives an import cover of more than 10 months, which is globally comparable
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- RBI considers the regulatory framework for co-operative banks post PMC crisis
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- The PMC Bank had contravened all banking conventions by taking nearly 50% exposure to the HDIL group
- RBI wants to put in a place a methodology to regulate cooperative banks, just like scheduled banks
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- Edelweiss has sought High Court injunction against DHFL
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- This injunction is against DHFL repaying any unsecured creditor before the secured loans are repaid
- Edelweiss has sought a court injunction asking DHFL to disclose all assets and liabilities and appoint a receiver
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- Moody’s lowered GDP estimates for the full fiscal to 5.8%
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- This is much lower than the RBI estimates of 6.1% for the full year. RBI still expects 7% growth in last 2 quarters
- Moody’s has attributed the growth downgrade to weak consumption, NBFC crisis and tepid capital cycle
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- PSU banks cut rates rapidly as new benchmarking takes over
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- Under the new external benchmarking rules, PSU banks will have to peg loan costs to T-bill yield or repo rate
- This will enable easy and seamless transmission of rate cuts, which was not happening till date
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- China and the US may be all set for a trade and currency deal
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- With China agreeing to a limited trade deal, the US may look to postpone any tariff hike for the time being
- The agreement may include a clause wherein China will not artificially weaken the Yuan to boost exports
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- RBI cancelled the proposed merger of Indiabulls Housing and LVB
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- RBI rejected after Indiabulls got embroiled in a legal tangle pertaining to round-tripping of funds
- LVB was also recently referred to PCA and the Religare exposure may have really worked against them
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- Mutual fund AUM slips by Rs.97,000 crore to Rs.24.50 trillion in September
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- The sharp fall in AUM in the month of September was driven largely by debt funds and liquid funds due to half year end
- While equity funds saw inflows, the SIP inflows continued to be robust at Rs.8,262 crore
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- FPIs from tax havens may have a problem due to new rules
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- As per new rules, only FPIs located in FTAF compliant locations are allowed to get Category 1 FPI status
- This could lead to an exodus of FPIs from Mauritius and Cyprus to Singapore and the Netherlands
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