| News Announcement |
Impact Analysis |
| Trump announces fresh 10% tariffs on Chinese imports worth $300 billion |
- Trump announced a fresh set of tariffs as China was allegedly moving too slow on the trade deal
- As a result of the announcement, oil prices crashed by 7% on Thursday on global growth concerns and equities were down
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| The US Federal Reserve cut the funds rate by 25 basis points |
- This is the first rate cut by the Fed in 10 years and takes the interest rate range lower to 2.00-2.25%
- Markets were largely disappointed as the cut was lower than anticipated by the global markets which wanted 50 bps cut
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| V G Siddhartha of Coffee Day Enterprises commits suicide |
- In a letter to the board he had alleged extreme harassment by the tax authorities and also by private equity players
- The two major stocks of the group, Coffee Day Enterprises and SICAL Logistics have been on lower circuit for the last 5 days
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| Kharif crop output lower by 6.6% on a YOY basis this year, but could pick up |
- The weak Kharif output was largely on the back of a 9% shortfall in rains in the months of June and July
- IMD expects rainfall to be normal in August and September but the impact of delayed sowing will only be known later
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| Deutsche Bank to offload all its derivative positions into bad bank |
- With an exposure of $45 trillion to derivatives, Deutsche Bank has been on the brink for quite some time now
- Deutsche has set aside $1.1 billion to take care of the losses that the bad bank may have to incur due to the positions
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| Maruti Suzuki cuts its sales force by 6% as sales sink to new lows |
- With the sharp fall in auto sales by over 25% YOY, the company had no choice but to lay off workers
- Maruti has already shed nearly 45% of its peak value in price and expects more pain in the months ahead
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| PMO cheers market by calling for a rethink on the FPI tax |
- The markets were enthused on Friday by the PMO calling upon the finance minister to review FPI surcharge
- FPIs have pulled out nearly $3 billion from the Indian markets since the Union Budget announced the additional surcharge
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| Decision on 35% public holding deferred for the time being |
- The Budget announced a proposal to increase the public holding from 25% to 35% to bring more free float
- With companies expressing concerns over too much of dilution, the decision on the subject has been put off
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| Rupee slumps on Friday on trade war fears and dollar strength |
- One of the factors that was driving rupee weakness was the escalating trade war and the likely global slowdown
- At the same time, the lower than expected rate cut by the Fed is likely to make the dollar stronger and the rupee weaker
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| HDFC reports sharp rise in profits for the June quarter |
- The sharp rise in the net profits was largely driven by profit booked on sale of stake in Gruh Finance during the quarter
- However, HDFC managed to maintain NIMs at around 3.5% and NPAs were also in check
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| SBI posts an increase in profits to Rs.2312 crore for June quarter |
- The sharp rise in profits for SBI was largely driven by lower provisioning and a pick-up in lending during the quarter
- However, the gross NPAs of SBI remained static at around the 7.53% even as the net NPAs also remained static
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| Government to infuse Rs.10,000 crore into housing finance companies |
- The special line of credit will be in addition to the Rs.1trillion already committed to NBFCs via banks
- Currently, realty sector is suffering because NBFCs are caught between tight liquidity and high borrowing costs
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| Markets positive on Bharti Airtel despite Rs.2866 crore loss in Q1 |
- Markets were largely enthused with the sharp rise in operating margins which saw a spurt of nearly 700 bps
- Also, the ARPU of the company got closer to the Rs.130 mark, thanks to weeding out of low value customers
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| FPIs withdrew a total of $2.7 billion from equities in July |
- The selling was largely in the aftermath of the Union Budget and the selling is expected to continue through August
- However, the FPIs were buying into bonds due to the rate differential which kept the rupee under check
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| Zee manages to sell an 11% stake in the company to Oppenheimer |
- The deal happened at a price of Rs.400 but only 11% could be sold for Rs.4224 crore against the 20% anticipated
- Zee needs to repay Rs.11,000 crore to mutual funds and banks that was taken as promoter funding against shares
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| CRISIL downgrades GDP growth for current fiscal to 6.9% |
- This is lower than the 7% growth outlook that the RBI and the Finance Minister have been talking about
- CRISIL has underlined global economic slowdown, trade war and the weak consumption in India as key reasons
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| Core sector growth came in at just 0.2% for the month of June 2019 |
- Core sector saw weak performance from refining, crude oil production and cement while steel was strong
- The core sector growth becomes critical as it accounts for nearly 40% of the overall IIP number each month
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| India crosses 60% of full year fiscal deficit in the first quarter |
- This is likely to put pressure on the current fiscal deficit target of 3.4%, although CAG pegs it closer to 5.8%
- The good news is that it was worse in the previous year wherein the first quarter had seen 69% target breached
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| Karma Capital rules out shifting FPIs from trusts to corporates |
- According to Karma Capital, even if the shift was done it would attract the provisions of the GAAR Act
- FPIs fear that even if a one-time exception is made, it makes them vulnerable to hounding in future
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| GBP slumped to a multi-year low on negative BREXIT noises |
- With Boris Johnson being okay with a no-deal BREXIT, the UK Pound tanked to as low as Rs.84/GBP
- The Bank of England has already hinted that a no-deal BREXIT could hit GDP growth by as much as 6%
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| India calls on Iran to free the Indian nationals on the British shipq |
- The demand was made after Iran released 9 Indian crew members working on board the ship
- The ship was detained by the Iran Revolutionary guards in retaliation to a similar action by the UK
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