| News Announcement |
Impact Analysis |
| US-China trade war took a turn for the worse during the week |
- A day after Trump imposed punitive tariffs, China also responded with tariffs on $60 billion of US goods
- In the meanwhile, Trump also expanded the scale by blacklisting Huawei from selling products in the US
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| Senior officials of Jet resign putting the Jet stake sale in peril |
- The CEO, CFO and the head of HR at Jet Airways resigned on the same day raising doubts on the sustainability of Jet
- In the meanwhile, Etihad has also decided to withdraw its board members from Jet, in what could be the last nail
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| India goes to the last round of polling on 19th of May |
- With the completion of the 7th round, the exit polls will be telecast from 19th evening onwards
- The final counting will happen on the 23rd of May which will determine the nature of the next government
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| CPI inflation came in at 2.92% for April and WPI inflation at 3.07% |
- Both CPI and WPI inflation hinted at sharply higher food inflation and lower fuel inflation in the basket
- Although the inflation is still below the RBI 4% comfort zone, it does pave the way for another rate cut in June
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| Indian markets bounced back sharply on Thursday and Friday |
- The bounce was largely ahead of the exit polls on Sunday, which is expected to suggest a stable government
- However, the global reality of the trade war and geopolitical risk in the Middle East will be an overhang
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| Tata Chemicals to sell its consumer business to Tata Global |
- This is part of the restructuring of the Tata group to bring like businesses under one banner for better synergies
- Shareholders of Tata Chemicals will get 1.14 shares of TGBL for every share of Tata Chemicals held
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| Bajaj Finance reports 57% growth in net profits in a tough quarter |
- In a bad quarter for NBFCs, Bajaj has maintained growth due to its focus on consumer financing
- With low NPAs and no risk of maturity mismatch, the stock is back to its all-time high price levels
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| NSE to appeal against the SEBI order in terms of severity and penalty amount |
- SEBI had imposed a total penalty of Rs.1000 crore on NSE for its role in the co-location fiasco for preferential access
- Key investors of NSE have been insisting that NSE pay the penalty and proceed with its IPO in 6 months
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| VIX continues to remain above the 28 marks despite the 2-day rally |
- VIX is also the fear index and shows the amount of panic in the markets. Currently, it is high ahead of the election outcome
- However, VIX staying at around 28 sharply limits any sustained upside in the market from current levels
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| Indigo price cracks on perceived promoter differences |
- The crash came after promoters confirmed appointing law firms to help redraft the shareholder agreement
- One promoter group had a much bigger say in the operations of the airline and that had become the bone of contention
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| Tensions in the Middle East mounted after alleged attacks by Iran |
- Saudi Arabia has alleged attacks by Iran on its vessels and its facilities in clear aggression outside Hormuz
- The attacks were an outcome of the sanctions imposed by the US on the export of Iranian oil to Asia and Europe
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| RBI exercises greater control over NBFC operations |
- As a first step, the RBI has asked all NBFCs with AUM more than Rs.5000 crore to appoint Chief Risk Officers
- The CRO will have a fixed tenure and cannot be removed without the sanction of the board
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| The big ecommerce sale may finally be coming to an end in India |
- Large players like Amazon and Wal-Mart have confirmed that they are not selling below cost price any longer
- Ecommerce players are wary about the new ecommerce rules of selling and local data maintenance
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| Trade deficit comes in sharply higher at $15.4 billion for April |
- While exports were flat, the imports were up by 4%, with the sharpest rise seen in gold
- The trade deficit is extremely vulnerable to the rise in oil prices as it puts pressure on the import bill
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| IL&FS independent directors could come under the MCA radar |
- The MCA is now investigating lapses by the independent directors of IL&FS, apart from auditors and rating agencies
- This could be a template for other companies to look closely at the role of independent directors
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| Investment banks rule out the devaluation of Yuan beyond 6.60/$ |
- Both UBS and Morgan Stanley expect only a calibrated attempt by China to weaken the Yuan
- There were fears that China may weaken the Yuan to give a bigger boost to its exports
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| Monsoons may be delayed and both IMD and SKYMET concur |
- Both the agencies have pegged a 6-day delay in the onset of Southwest Monsoons in Kerala
- That is likely to delay the onward movement of the rains and impact the sowing cycle in the month of June
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| NCLAT may have collected nearly Rs.70,000 crore in fiscal 2018-19 |
- This translates into a recovery percentage of 43%, which is at par with the global best practices
- Another Rs.1 trillion is expected to be recovered via the NCLT process in the current fiscal year boosting bank profits
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| Japan drags India to WTO over mobile import duties |
- Japan’s contention is that India charges effective duties much higher than the WTO mandated rates
- However, Japan continues to be a small player with China and Korea taking the bulk of the Indian market
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| Pharma stocks cracked sharply in the markets this week |
- The fall was triggered by the US filing a lawsuit against Indian pharma companies for inflating prices of generics
- The US government has consistently expressed reservations about profiteering on generics and this could be serious
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| Vinita Bali points to multiple indicators of a consumption slowdown |
- Bali underlined that the signs of consumption were always there in the macros and growth numbers
- In fact, the slowdown in durables has been more acute than in consumer staples
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