| News Announcement |
Impact Analysis |
| One of the most productive Monsoon sessions concluded on 10th August |
- The Monsoon session saw important amendments to the IBC Bill as well as to the GST Bills
- The all important Fugitive Offenders Bill was also passed in parliament although the Triple Talaq Bill has been deferred
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| Turkey’s economic woes deepened with a 40% crash in the Turkish Lira |
- Turkey was badly hit by the steep doubling of tariffs on steel and aluminium imposed by the Trump government
- While this has boosted Turkish tourism, both inflation and Lira weakness are now almost out of control
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| Jet Airways plunged on Friday after it deferred results announcement |
- While the ostensible reason was the audit committee not recommending results, problems appear to be bigger
- Jet has assured the markets that it has enough liquidity to meet employee costs and loan repayments
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| Coal India announced 61% growth in its net profits to Rs.3,786 crore |
- The Q1 profits came on the back of a 17% growth in net revenues for the quarter to Rs.25,471 crore
- Coal production at 137 million tonnes and coal off-take at 153 million tonnes remain at record levels
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| After stellar results from BP and HP, IOCL reported 50% jump in profits |
- The higher net profit of Rs.7092 crore came on the back of 15% higher revenues at RS.1,52,000 crore
- Like in the case of BPCL and HPCL, IOC also benefited from higher realizations of Gross Refining Margins per barrel
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| Hindalco reports 43% growth in profits at RS.4,140 crore for Q1 |
- Hindalco has benefitted substantially from Narendra Modi’s “Make in India” program that has boosted infrastructure
- Domestic prices of copper saw a sharp spurt after the Vedanta plant in Tuticorin was closed on environmental grounds
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| SBI reported 3rd consecutive quarterly loss at Rs.4876 crore |
- While NPA cycle may have bottomed out, SBI took a pre-emptive hit on depreciation of investments post yield rise
- The bank expects to return to profitability by the December quarter as investment losses have been front ended.
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| World Bank to raise A$50 million through the issue of Blockchain bonds |
- Blockchain is a digital registry of services which is expected to have a substantial change in the financial services industry
- The issue will not be backed by digital currencies but by A$ since central banks are averse to crypto currencies
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| HDFC Bank second-in-command Paresh Sukhthankar quits |
- The news shocked the banking world as Paresh was expected to walk into Aditya’s Puri’s shoes
- While Paresh’s future plans are not clear, he is rumoured to be headed to another private bank as its CEO
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| SFIO arrests Neeraj Singal, former CEO of Bhushan Steel |
- Singal has been accused by the SFIO of having siphoned out Rs.2000 crore from the company
- Investigative agencies are also tightening the screws on errant promoters of big bank defaulters
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| WTO warns of a major trade slowdown in the aftermath of trade wars |
- China is already showing signs of trade and economic activity slowing in the light of the trade tariffs
- With both nations retaliating, the focus is now on whether it eventually leads to a currency meltdown in EMs
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| SEBI panel recommends phone tapping powers to SEBI for market monitoring |
- Currently SEBI only has the powers to summon for call records and not to tap phones
- While the idea may be positive in intent, it raises serious concerns over privacy for the market participants
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| Nifty closed near an all-time high after banks and oil drove markets higher |
- Oil companies appeared to benefit from the fact that the trade slowdown could keep crude prices subdued
- Banks were actually celebrating the front-ending of rate hikes by the RBI in its August credit policy
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| Bharti Airtel looks to monetize its African business through an IPO |
- The IPO is likely to happen in the next few months with the Africa business contributing Rs.20,000 crore in revenues
- Bharti needs a war chest to counter the Jio challenge and the merged entity of Idea and Vodafone
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| RBI to pay Rs.50,000 crore as dividends to the government of India |
- This is higher by nearly 70% compared to the Rs.30,000 crore that RBI paid for the year ending June 2017
- Last year the RBI had reduced the total dividends to factor the cost of demonetization and printing of fresh notes
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| Government doubles import taxes on textiles products |
- The tariffs on textiles imports has been doubled to 20% on nearly 300 products
- The idea is to protect the Indian manufacturers from the onslaught of Chinese competition
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| Government may plan NRI bond issue to the tune of $35 billion in Q3 |
- The NRI bond issue is aimed to shore up the forex reserves at a time when the RBI is aggressively defending the rupee
- The last time such a bond issue was done was at the peak of the currency crisis in 2013
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| HDFC AMC listed at a premium of 65% and has managed to hold gains |
- The brand value of HDFC backed by it strong equity funds and SIP franchise has attracted phenomenal demand for the issue
- However, at 14% of the AUM there are concerns that the medium term goodies may be factored in the stock
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| Britannia announced the issue of bonus debentures in 1:1 ratio |
- Each bonus debenture worth Rs.60 will be issued free to the existing shareholders as a fixed income source
- Additionally, Britannia is also planning a stock split to bring the stock into a more favourable trading range
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| Draft ecommerce policy has been released subject to comments |
- The policy aims to create a central regulator for ecommerce on the lines of SEBI, IRDA, TRAI etc
- The draft policy also proposes to regulate steep discounts by making these discounts time-bound
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| Chandra looks to turnaround TAMO with focus on electric cars |
- JLR was hit by Rs.1902 crore net loss due to slowing Chinese demand in the light of the tariff wars
- JLR also has a bigger problem in the form of BREXIT which is likely to create Pound worries for JLR
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