| News Announcement |
Impact Analysis |
| Nifty closed the week at a historic level of 11,360 on Friday |
- The rally was driven largely by a bounce in banking stocks after a steep correction on Thursday
- The Indian markets have touched a new peak despite global worries over crude oil prices and the trade war
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| The Met Department has projected a normal monsoon for this year |
- Despite a negative view by SKYMET, markets celebrated the IMD’s positive picture of the progress and spread of rains
- Timely and adequate rains are the key to a good Kharif output and that impacts food inflation In a big way
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| Jet shares slumped sharply on Friday on the back of cash crunch rumours |
- Jet has been badly hit by a combination of higher ATF prices and consistently lower spreads in the business
- Despite a 19% growth in the aviation volumes, airlines are not able hike prices due to the stiff competition in the industry
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| Uday Kotak pares his stake in the bank through preference issue |
- Being a perpetual non-convertible preference share, it is classified as equity for the purpose of dilution
- This brings down Uday Kotak’s stake in Kotak Bank below the 20% mark as stipulated by the RBI guidelines
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| Apple becomes the first global firm to cross $1 trillion in market cap |
- In 2007, Petro China had briefly crossed $1 trillion after listing but currently quotes 80% below that price
- This is Apple’s 7th year of leadership and only GE has topped the market cap charts for longer at 11 years
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| SAIL reported a Q1 profits of Rs.540 crore against a loss last year |
- SAIL profit growth was also helped by better cost control apart from 22% growth in the revenues for the quarter
- SAIL is also making big bets in the steel space like Tata Steel and JSW to capitalize on the big demand surge in India
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| SEBI does away with the sub-broker category altogether in markets |
- Fresh registrations for sub-brokers have stopped in the light of the rapid spread of online trading facilities
- All existing sub-broker will either have to migrate to become an authorized person or a trading member on the exchange
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| US Federal Reserve opted to maintain status quo on Fed rates |
- This was a tad surprising considering that the US GDP had grown at 4.1% in the last quarter
- Donald Trump has been pushing for a more benign approach to rate setting considering the emerging growth in the US
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| GST Council to consider relief for small taxpayers in its 04th August meeting |
- While quarterly filing of returns is already permitted, the Council may also permit them to pay quarterly
- The 04th August meet is likely to have a single point agenda to prop up the MSME sector in particular
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| ONGC reports a stellar 61% growth in profits in the first quarter |
- The sharp surge in the first quarter was despite the overall oil extracted being lower than the previous year
- ONGC actually benefited by its per barrel realization going up by over $22/bbl on a YOY basis
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| Pharma Index has outperformed the index touching a 6-month high |
- With IT looking stretched in valuation terms, defensive investors are looking to the safety of pharma stocks
- Markets are also expecting the US FDA risks to bottom out making a case for pharma at relatively cheap valuations
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| Bank of England became the second central bank to embark on rate hikes |
- The 25 basis rate hike to 0.75% was the first hike by the BOE since the lows touched during the financial crisis
- Markets are worried about the outcome of these rate hikes considering the BREXIT continues to be an overhang
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| Apollo Tyres reported a 200% growth in profits for the first quarter |
- Tyre companies have been benefiting substantially from the robust demand from growing auto sales
- Additionally, the consistent fall in rubber prices and radial protection has also worked in favour of tyre companies
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| Rupee reverses and strengthens from the 69/$ levels |
- There was clear RBI support coming in at the 69/$ level as was evident from the depleting forex reserves with the RBI
- In the latest monetary policy, the 25 basis points hike has also been instrumental in curbing the pressure on the rupee
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| LIC gets approval to buy majority stake in IDBI Bank |
- The Cabinet Committee approved dilution of government stake below the 50% mark in IDBI Bank
- This paves the way for LIC to get access to a banking license indirectly through the acquisition of the bank
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| Eicher comes under pressure on Harley Davidson competition |
- Harley Davidson is planning to enter India in the 250-300 CC segment, which is the fastest growing segment
- With US sales almost flat, Harley Davidson is seriously looking at India and Asia to boot its fortunes
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| Tata Motors reported a record Rs.1902 crore loss for the quarter |
- The sharp rise loss in the quarter was triggered by JLR taking a hit on its pound exposures and slowing sales in China
- The probably explains the reason why the stock has been correcting so violently in the last few months
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| India may reduce Iran shipments by 12% to please Donald Trump |
- After the US imposed sanctions on Iran, India has been under pressure to stop doing business with Iran
- India stands to lose as Iran has been a reliable and low-cost supplier of oil to India, especially to IOCL refineries
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| Suresh Prabhu expects investments of $500 billion in logistics |
- While we have heard these lofty numbers before, it looks more plausible in the backdrop of the infra thrust
- Also logistics is likely to get a boost in the post-GST scenario as logistics networks get reworked
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| Reliance records 18% growth in profits to all time high of Rs.9459 crore |
- The sharp uptick in profits came from an extremely strong performance put up by the petchem margins
- Both the consumer facing businesses, retail and telecom, did extremely well in the first quarter
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| SEBI looks to reduce the dependence of large corporates on banks |
- SEBI is now likely to mandate that all large corporates to borrow 25% of their debt form bond markets
- This will reduce the pressure on the banking system that has seen maximum NPAs from large corporates
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