| News Announcement |
Impact Analysis |
| Fed hiked rates by 25 basis points in its 26th September meet |
- This was largely along expected lines as the CME Fed Tool was already indicating a 95% probability of a rate hike
- This will impel the RBI to also hike rates by 25 bps when it meets in October and also encourage risk-off selling
|
| Nifty failed to sustain above 11,000 and closed at 10,930 for the week |
- Apart from the rate hikes, the worry about the contagion effect of IL&FS is proving costly for the market.
- SEBI asked mutual funds to be cautious on their exposure to financials and this spooked financial stocks across the board
|
| Yes Bank stock price corrects 60% in a little over a month |
- The sharp fall in Yes Bank started after the RBI refused permission to extend the tenure of Rana Kapoor
- The stock also came under attack after markets were rife with rumours that Yes Bank’s NPAs may have been understated
|
| RBI withdraws Bandhan Bank’s general permission to open new branches |
- The ban was imposed in the light of the promoters not diluting the stake in line with RBI mandate
- The pay and remuneration of the MD & CEO has also been frozen till further notice
|
| Beleaguered IL&FS to implement a comprehensive restructuring plan |
- A series of defaults by IL&FS group companies have become a major issue considering its outstanding debt of $12 billion
- This includes filing with NCLT for protection to prevent creditors from dragging them to court
|
| FPIs pull out nearly Rs.21,000 crore from markets in September |
- FPIs pulled out nearly an equal amount of money from equity and debt on rate and rupee concerns
- The hawkish stance of the Fed and the bond worries in India are also keeping many foreign investors on tenterhooks
|
| Gujarat High Court dismisses Adani Gas plea on gas distribution |
- The case had been filed against the contract to supply gas in Sanand, Bavla & Dholka to Gujarat Gas Ltd. in 2016
- The original 2006 Act gave permission to Adani to supply gas in Ahmadabad area subject to passage of future acts
|
| Government cuts second half borrowing to Rs.2.47 trillion |
- This is sharply lower than the Rs.3.2 trillion the government would have had to borrow to meet its full year target
- In terms of maturity profile, nearly 70% of the total borrowings will have a maturity of more than 10 years
|
| MCA to probe the accounts and operations of Vakrangee |
- The stock which had become the darling of the bourses lost nearly all its value in the last year
- The MCA will do a detailed probe into Vakrangee’s operations and the reason for the resignation of the auditors
|
| Infibeam cracks 73% on Friday after key corporate governance issues raised |
- A WhatsApp message began the rout after it was mentioned that Infibeam had given Rs.135 crore of inter group loans
- While the news of the loan is correct, the company has denied any concerns about liquidity and transparency
|
| SEBI asks mutual funds to be cautious with DHFL and Indiabulls bonds |
- SEBI wants to avoid a repeat of what happened in the case of IL&FS bonds and Amtek Auto bonds in the past
- Since both these companies are vulnerable to debt market worries, debt funds have been asked to stay cautious
|
| Jet Airways defers salaries to its pilots for the month of August |
- Jet gave another indication of its liquidity problems by deferring part of the pilot salaries till further notice
- The liquidity problem is an outcome of stiff price competition and higher prices of ATF
|
| Aadhar verdict is bad news for Fintech companies and new age banks |
- The outcome of the verdict is still not clear but apparently banks cannot insist on Aadhar data for accounts
- Many new age banks had expanded their base sharply in the last couple of years with the help of Aadhar e-authentication
|
| India raises tariffs on 19 items classified as non-essential goods |
- The list of items includes products like ACs, refrigerators, washing machines, diamonds and ATF
- The purpose is to curb imports and to also to apply brakes on the falling rupee, which is closer to 73/$
|
| Reuters poll hints at 25 basis points hike by RBI in its October policy |
- According to economists, the RBI may be constrained to hike rates by 25 bps in the light of inflation and weak rupee
- The Fed decision to hike the rates may also be instrumental in influencing the RBI to hike rates in October
|
| Brent Crude crossed $82/bbl during the week on Iran concerns |
- With just one month to go for Iran to be cut out of the global oil market due to US sanctions, oil markets are worried
- OPEC nations have already refused to cut production in anticipation that an output boost may be required soon
|
| RBI disappointed the bond markets with just Rs.10,000 crore OMO |
- The idea of the OMO was to reduce the liquidity crunch in the call money markets which has a deficit of Rs.1.40 trillion
- The OMO was too small by that standard and hence it was unlikely to really impact rates in the bond market
|
| After oil and bank, now power giants will be forced to take over smaller firms |
- The government will start this process by selling its stake in SJVN to NTPC to ostensibly add a hydro franchise to NTPC
- In another deal, the government will also to look to consolidate PFC under the aegis of REC
|
| First REIT likely to be launched by Blackstone and Embassy |
- While REITs were first allowed in 2014, it took another 2 years for the government to clarify on its pass-through tax status
- Embassy group, in association with Blackstone, will put 33 million SFT of office and hospitality space in the REIT
|
| World Gold Council expects 25% growth in gold demand in 2Q |
- WGC expects the higher agricultural incomes post MSP to drive the demand for gold in the second half of the year
- This impact is likely to be immediately visible as 70% of the gold demand comes from rural areas
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| US and China go ahead with tariffs and counter tariffs on each other |
- US took its total import tariffable goods from China to $250 billion and China took it to $110 billion
- Recently India also imposed import tariffs and we could see this spreading quick and fast
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