| News Announcement |
Impact Analysis |
| Trade war between the US and China subsided but issues still remain |
- The trade war appeared to subside after China hinted that the US and China may be willing to roll back previous tariffs
- However, Trump has not committed to total elimination of tariff hikes leaving the markets in a state of flux
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| Moody’s downgraded India’s outlook from stable to negative |
- This downgrade of outlook was done even as Moody’s maintained the India rating at Baa2
- The outlook was downgraded due to weak rural demand, tepid GDP growth and likely pressure on fiscal deficit
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| Mutual fund AUM up sharply by 7% at Rs.26.50 trillion in September |
- The surge in AUM was largely led by liquid funds which saw net inflows of Rs.93,000 crore in September
- While equity flows were flat at around Rs.6100 crore, the monthly SIPs continued to be robust at above Rs.80000 crore
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| Gold faces resistance around the $1500/oz mark during the week |
- Gold faced resistance after the trade truce hopes gave a boost to equities and other growth asset classes
- Gold has traditionally been a safe haven for investors and they have done best at times of global uncertainty
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| Moody’s also downgrades major banks and oil companies in India |
- On the back of the weaker outlook, the rating agency lowered ratings on SBI, Infosys, HDFC Bank and 11 others.
- However, experts believe that this is unlikely to substantially increase the cost of borrowing of these companies
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| Bajaj Finserv becomes the latest entrant into Zero Broking |
- In competition with Zerodha and 5Paisa, Bajaj Finserv has entered with flat fee of Rs.10 and lower for intraday trades
- Zerodha has already become the largest player in the retail broking space on the back of its low cost model
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| Nomura slashes India’s GDP growth target to 4.9% for fiscal 2020 |
- This is the lowest growth projection made till date and broadly syncs with the concerns expressed by ministry officials
- Nomura has slashed growth on the back of concerns over the economic slowdown and the rising fiscal deficit possibility
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| ETFs catch on in a big way in the April – September period |
- The AUM of exchange traded funds (ETFs) was up by 9% in the April-September period to Rs.150,000 crore
- The number of ETFs during this period also increased from 66 to 71 with index ETFs being the most popular
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| CPI inflation may have breached 4% mark in the October month |
- Economists expect that the CPI inflation may have risen above 4% due to strong food and vegetable inflation
- If it is above the RBI comfort zone, the only worry is that it could force the RBI to rethink on rate cuts
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| M&M second quarter profits slip by 27% as auto slowdown lingers |
- The weak profits were largely driven by weak sales and high costs still persistent
- Earlier, Maruti, the largest player in the auto space also saw its monthly sales falling by 30% on a YOY basis
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| SEBI chief underlines that Infosys probe is under way at this point of time |
- Infosys is being probed by SEBI and SEC on the back of allegations made by a whistle blower
- The allegations pertain to certain costs deliberately being concealed by the CEO and the CFO of the company
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| The week also marked the third anniversary of demonetization |
- Over the last 3 years the GDP growth has fallen from a high of 7.5% to a low of 5% in the June quarter
- Surprisingly, during the same period, the market cap of the market saw an accretion of close to Rs.43 trillion
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| China exports fell for the month of October but less than expected |
- China saw a fall in export s and imports but the fall was much lower than what the markets had anticipated
- This will be seen as a positive by the world markets, which looks at China as the leader in global growth
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| Supreme Court allows temple to be built on disputed Ayodhya site |
- The Verdict was finally read out on 09th November based on the arguments and the ASI report on the subject
- As a precautionary measure the government has imposed Section 144 in most of the sensitive cities in India
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| Maharashtra Chief Minister, Devendra Fadnavis, quits his post |
- With the Shiv Sena continuing to play hard ball, the CM had to resign as his term ended on the 08th of November
- The onus will now be on the governor of Maharashtra to take a calling on inviting the BJP or to impose President’s rule
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| Altico bonds trade in the bond markets at a yield of 75% |
- Altico had defaulted on its obligations a couple of months back and is now under the rescue mode
- Bonds trading at a yield of 75% mean that the market is almost according default status to the bonds
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| Mutual funds must now disclose change in investment terms to CRAs |
- In the past, the change in investment terms had to be only disclosed to valuation agencies
- Now SEBI has made it mandatory to disclose these ratings to credit rating agencies at the same time
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| Government unlikely to participate in the DHFL bailout |
- Government fears that it could result in a case of moral hazard for the private sector defaulters
- DHFL currently has outstanding debt to the tune of Rs.1 trillion owed to banks and other creditors
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| Raheja Realty may hit the IPO market with a $500 million issue |
- This will be the second major REIT IPO after the Embassy IPO ended up being a major success previously
- REITs as an investment option have become extremely attractive after SEBI gave it pass through status
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| Individual holdings in mutual funds touched a high of 55% |
- For the first time, the retail share is nearly 10% more than the institutional share of MF AUM
- The sharp increase in individual holdings has been very pronounced in the last five years
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| Saudi Aramco kicks off IPO process but valuations remain uncertain |
- The Aramco IPO is likely to happen in the first half of 2020 but Aramco’s valuation demand of $2 trillion looks tough
- Most investment bankers are gravitating towards a valuation of more like $1.3 to $1.5 trillion for Aramco
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