| News Announcement |
Impact Analysis |
| Rating agency, Fitch, downgrades full year FY20 GDP growth to 5.5% |
- This is the lowest full year estimate put out by any rating agency and a sign of consumption stress
- Fitch has specifically pointed to the liquidity pressures created by the NBFC crisis as a key trigger for this growth downgrade
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| Samvat 2075 ends with more than 10% returns on the Nifty |
- The returns were largely driven by a handful of stocks like TCS, HDFC Bank, Reliance Industries, Infy and Hindustan Unilever
- The index performance in Samvat 2075 has been the best performance in the last four years
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| BJP close to forming government in the state of Haryana |
- The JJP party of the breakaway Chautala faction with 10 seats has agreed to support the BJP in Haryana
- The shape of the government in Maharashtra is yet to fully crystallize although the BJP+SS have a clear majority
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| Reliance to hive off telecom debt into a separate company |
- This will be part of a complex structure wherein RIL will invest in the optionally convertible bonds of the unit
- This will leave Jio with a net debt of just Rs.35,000 crore towards spectrum fees, enabling better valuations
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| US and China may be close to finalizing Phase 1 of the trade deal |
- This assumes a lot of significance ahead of the critical meeting between Donald Trump and Xi of China
- While the US has put off tariff hikes, China will buy more of US agri products but IP issues will be put aside for now
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| Tata Motors reports loss but much lower than anticipated |
- The improvement in performance had lot to do with the better off-take for JLR products across the globe
- The company had also undertaken significant cost cuts to turn around the financial performance this quarter
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| Indigo reports a larger than expected loss for the September quarter |
- Indigo loss was despite a sharp increase in the revenues almost to the tune of 31%
- While fuel costs were marginally higher, the pressure came from depreciation costs and maintenance costs
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| Maruti witnesses a 31% fall in sales during the September quarter |
- Maruti saw a sharp fall in sales and also led to the company market share falling by 300 bps to 48.29%
- The big reason for the weak profitability was the substantially higher discount (at 30%) that Maruti had to offer`
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| SBI manages to grow profits almost three fold in September quarter |
- The quarter saw the gross NPAs of the company coming down by more than 220 bps to around the 7.50% mark
- A major reason for the profits of SBI was also the profit of Rs.3800 crore it earned on the SBI Life partial stake sale
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| Piramal Enterprises okays fund raising to the tune of Rs.5500 crore |
- The whole purpose of the fund raising was to bank roll the future plans and provide capital adequacy to the company
- However, the stock corrected by nearly 15% on Friday as the markets were not happy with the capital dilution
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| Microsoft pips Amazon to bag the prestigious Pentagon contract |
- Amazon was considered to be the favourite to bag the $10 billion Pentagon contract from the US government
- However, Microsoft has managed to bag the contract and that is evident in the recent valuations of Microsoft
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| Supreme Court asks telcos to pay Rs.92,000 crore in 3 months |
- SC recently struck down the plea of telecom companies and allowed the government to levy the penalty on telcos
- However, the government may go slow considering the stress that telecom sector balance sheets are already in
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| EU has agreed to the BREXIT extension but has not specified any date |
- The EU wants to set the date as a full and final date but only after clarity on the elections front
- Johnson has already called for elections on 12th December if the BREXIT does not happen on October 31st
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| Gold and silver sales were sharply down by 40% this Dhanteras |
- The 40% fall in gold demand was due to a combination of weak spending and high gold prices
- Most jewellery stocks took a sharp hit on the back of weak festival sales; normally a peak period for jewellers
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| Foreign currency assets with the RBI go past the $440 billion mark |
- This is the highest level of forex reserves in history and has been driven by limited RBI intervention in forex markets
- Close to $410 billion consists of foreign currencies with the balance accounted by gold land Special Drawing Rights
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| Infosys comes in for trouble after whistle blower allegations |
- There have been allegations of concealment of information for showing more than actual profits by the company
- Three law firms are also going ahead with class action suits against Infosys for causing losses
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| Tata MF moves NCLT to recover Rs.120 crore from DHFL |
- Similar plea has been already made by other funds like Kotak AMC, Nippon India AMC and Edelweiss AMC over DHFL bonds
- There is a major issue for recovery of such bonds were the mutual funds are not part of the Inter Creditor Agreement
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| Large caps funds largely under perform in last one year; midcaps do better |
- The dichotomy is surprising because the large cap index actually did much better than the mid cap index
- Among the large caps, the outperformance was limited to just a handful of front line stocks with pressure across
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| Brent Crude prices sustain above $61/bbl on US reserve draw downs |
- Apart from the reserve draw downs, the crude prices were also higher due to OPEC willing to cut supplies further
- Brent crude has faced pressure at higher levels due to uncertainty over the US-China trade resolution
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| Copper prices rise for the third week in succession on supply concerns |
- The civil unrest in Chile (the world’s largest copper producer) has left the world copper market grossly under supplied
- This has more than made up for the demand concerns on slower growth in the Chinese economy
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| UTI IPO to come out shortly to become the third listed AMC in India |
- Currently, only HDFC AMC and Nippon India AMC are listed on the bourses UTI will see a partially OFS
- The issue size is expected to be around Rs.2600 crore with some of the original investors cashing out
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