India Weekly Market Updates from 16 July to 22 July 2016

India Market Weekly Economy: Service tax collection by the city zone department in the first quarter has increased by 23 per cent, which has helped it surpass the target by nearly 4 per cent for the period. http://buff.ly/2a4Bta0 Foreign investors have brought in over Rs 9,700 crore into the Indian capital markets in the first two weeks of this month on improving prospects for the economy. http://buff.ly/29Lkvtx Venkaiah Naidu on Sunday said that the tax-rate cap on GST in the Constitution bill sought by the Congress was not feasible but hoped that the GST bill will be passed. http://buff.ly/2a4Cqzn Amid a clamour among bankers for immunity from action by agencies like CBI and CVC, RBI Guv Raghuram Rajan has disapproved of any "blanket sort of relief." http://buff.ly/29VhU4o Labour Minister Bandaru Dattatreya has said the EPFO may invest up to 12 per cent of its investable amount in equities over a period of time. http://buff.ly/29VhJGh IDS: Taxmen to seek info from black money holders. http://buff.ly/29VhMBO Companies will now have to ensure that all statements annexed with the cost audit report are first approved by their board of directors before final submission. http://buff.ly/2a7aL2p Introduction of the much-awaited GST is likely to address issue of cascading and dual taxation impact on Indian media and entertainment industry, a sunrise sector, says report. http://buff.ly/29RTeGv Imports will become easier from the next year as the CBEC is planning to go paperless and move towards a completely integrated Customs system for facilitating documentation and fast-tracking clearances of consignments. http://buff.ly/29QHQQh Banks and financial institutions have sanctioned about Rs 78,830 crore funding for clean energy projects, of which Rs 33,482.83 crore has been released till March end this year, Parliament was informed on Monday. http://buff.ly/2a4nEZl In a bid to shore up cash- strapped public sector banks, the government on Tuesday injected Rs 22,915 crore capital in 13 lenders including SBI and Indian Overseas Bank to revive loan growth that has hit a two-decade low. http://buff.ly/29VpbBn GSMA launches mobile connect in India. At present, around 42 operators in 22 countries around the world are implementing Mobile Connect, making it available to nearly three billion customers. http://buff.ly/2a7QvvX The payments landscape in emerging markets, including India, is expected to transform in the wake of accelerating growth in electronic payments with advent of new and disruptive market players and alternative business models, a PwC report said. http://buff.ly/29SZ3EN The International Monetary Fund on Tuesday slightly trimmed India's growth projections to 7.4 per cent for 2016 and 2017, a drop of 0.1 per cent from its previous forecast, attributing it to a more sluggish investment recovery while declaring Brexit as a "spanner" in the global economic recovery. http://buff.ly/2a7YY2c Boeing Co (BA.N) said on Tuesday it expects Indian airlines to order 1,850 new aircraft worth $265 billion over the next 20 years. http://buff.ly/29NUeuP The National Highways Authority of India (NHAI) on Tuesday said it would issue bids for construction of roads and highways with a total length of 10,000 km by the end of the current fiscal. http://buff.ly/29UHvJG Minister of State for Finance Santosh Kumar Gangwar on Tuesday, quoting the Financial Stability Report of RBI, said bad loans of public sector banks may rise to 10.1 per cent by March 2017. http://buff.ly/29NVaPF Govt against raising FDI cap in newspapers, periodicals. http://buff.ly/29T3FL8 In face of a CAG report drilling holes into subsidy savings made on LPG, the government on Wednesday asserted that over Rs 21,000 crore was indeed saved in two years by directly transferring subsidy to user bank accounts. http://buff.ly/2a0xSuf Tesla motors on Saturday said that India will "definitely" be a market for their next generation low-cost sustainable model-3, with the Union road and transport minister Nitin Gadkari asking the iconic company to outline their proposals for entry into the Indian market. http://buff.ly/2a75FTu Negative global cues, combined with a logjam in parliament and disappointing quarterly results, subdued the Indian equity markets on Friday. http://buff.ly/29RvHW The additional capital infusion of Rs 22,915 crore into 13 weak banks announced recently by the central government is positive for them but the actual capital needs were much more higher, said global credit rating agency Moody's Investors Service. http://buff.ly/29SV89t Corporates:  Fashion apparel brand Spykar, which is expanding its presence in the women''s wear segment, is aiming to double its sales to Rs 700 crore in the next four years. http://buff.ly/2a79rfS In a bonanza to oil producing states like Assam, the government has ordered state-owned ONGC and Oil India to pay royalty to them on the gross price for crude oil and not the net rate they actually realise. http://buff.ly/29RHrrm Bandhan Bank on Monday further eased the micro lending rate by 60 basis points to bring interest rate down to 19.9% with immediate effect. http://buff.ly/29V5FET Homegrown FMCG major Dabur on Monday said it has acquired South Africa-based Discaria Trading (PTY) Ltd, a firm engaged in manufacturing and trading of cosmetics, for an undisclosed amount. http://buff.ly/29V6y0k Shares of Reliance Industries on Monday rose by nearly 3 per cent after the company reported a bigger-than-expected 18 per cent jump in June quarter profit. http://buff.ly/29VlDPn Infosys co-founder and former CII president Kris Gopalakrishnan has said that almost 70% of startups globally will fail and only 5 to 10% will become large and scale up. http://buff.ly/29VryUy? Storage battery major Exide Industries will be investing Rs 1,400 crore over the next two years, of which Rs 700 crore will be at Haldia in West Bengal to introduce high performance automotive batteries with new-age punch-grid technology. http://buff.ly/2a4PxAe Glenmark Pharmaceuticals has received final approval from the US health regulator USFDA for rosuvastatin calcium tablets, used in lowering cholesterol. http://buff.ly/2afSyPE Adani Group flagship Adani Enterprises on Wednesday said it plans to raise up to Rs 6,000 crore via issuance of securities to sustain rapid growth. http://buff.ly/29NjaXz Piramal Enterprises on Thursday said it is looking to raise up to Rs 1,000 crore through issuance of non-convertible debentures (NCDs) on private placement basis. http://buff.ly/29XSH6X Ford Motor Company is in the process of setting up a Research and Development (R&D) centre here, the first such facility to be located outside of the US, Finance Minister O Panneerselvam told the House. http://buff.ly/29Ybh2T ITC Ltd has planned multiple projects with an outlay of Rs 25,000 crore over the next five years, Chairman and Chief Executive Officer Y.C. Deveshwar told shareholders on Friday. http://buff.ly/29YtDAL Global events: The United States and India have agreed to take several key steps in petroleum and energy sector, aimed towards achieving the ambitious goal of energy independence. http://buff.ly/29ThLjN State-owned Saudi Aramco says it has signed a deal for a new gas project that will be worth more than 50 billion Saudi riyals (USD 13.3 billion) when complete in 2019 aimed at meeting the kingdom’s growing domestic demand for energy. http://buff.ly/2a129ZU Politics: American Ports have evinced a keen interest in a comprehensive port-led development, especially the ambitious Sagarmala programme, Indian officials said as the Union Road Transport and Highways Minister Nitin Gadkari concluded his week-long trip in Los Angeles. http://buff.ly/2a5zVvt

India Weekly Market Updates from 25th June to 1st July 2016

India Market Weekly

Economy

·      RBI Governor on Thursday called on Finance Minister as the central bank and the government seek to quickly put in place a broad-based 6-member panel — the Monetary Policy Committee (MPC) which is being set up to decide on lending rates instead of the present practice of RBI Governor taking a call in this regard. MPC will set interest rates by a majority, with a casting vote for the governor in the case of a tie. Out of the six members of MPC, three will be from RBI — the Governor, who will be the ex-officio chairman, a deputy Governor and an executive director. The other three members will be appointed by the government on recommendations of a search-cum-selection committee, which will be headed by the Cabinet Secretary. http://goo.gl/mx94xc

·        Large part of banks' bad loans result of fraud: CAG  http://goo.gl/3Le7UM

·     The World Bank Thursday committed USD 1 billion to support solar energy programme in India, which is reducing dependence on conventional energy sources to reduce greenhouse gas emissions. http://goo.gl/VxLKdR

·         The tax department Thursday notified rules for calculating fair market value of assets located in India in case of indirect transfer by multi-national companies for the purpose of levying tax. http://goo.gl/2Oz7jH

·         The central government on Thursday asked the Odisha government to expedite the process for mines auction, an official said. http://goo.gl/KG5L1B

·         The stressed assets problem affecting the banking sector is still not over and the menace will continue for some more time, SBI chief Arundhati Bhattacharya said today.  "In terms of asset quality, I did not say 2016-17 will be a lot better. In fact, I said there could be pains as well because the numbers we have taken are basically on the fund- based part but the non-fund based part also gets converted subsequent to classification," SBI Chairman Bhattacharya told reporters after the AGM of the bank. http://goo.gl/hRdw6g

·         Owing to policy measures taken by the government, India has improved in global rankings in terms of transparency in real estate sector in Asia Pacific, says a report. http://goo.gl/KgAi6E

·         India telecom market to face ‘massive’ tariff erosion post Jio entry: Sunil Mittal http://goo.gl/LwrVXu

·         The government is mulling an additional Rs 25,000 crore allocation to roads, railways and power sectors over and above the allocation made to them in the Union Budget, potentially providing a mid-year boost to public spending. http://goo.gl/xiujOM

·         Cabinet approves rise in salaries, pension for government employees http://goo.gl/NfRULL

·         Centre clears a move that makes 24x7 malls, movie theatres, eating joints a reality http://goo.gl/H0sjrn

·         Government asks LIC to fund road expansion projects http://goo.gl/j8A7k5

·         World Bank chief Jim Yong Kim said that Reserve Bank of India Governor Raghuram Rajan's decision to not take a second term at the bank will not affect the Indian economy http://goo.gl/LFaSB9

·         Output of India's core industries declined in May after five consecutive months of rise, official data showed on Thursday http://goo.gl/rx55Pu

Corporates

·         DLF promoters to make the company debt-free by infusing Rs 10,000 crore http://goo.gl/LcPXiR

·         Hit by a fire incident at one of its key vendors, Maruti Suzuki India reported 13.9 per cent in total sales in June at 98,840 units as against 1,14,756 in June 2015.  Hyundai Motor India Ltd (HMIL) on Friday said its domestic sales in the month of June grew 9.7 per cent to 39,806 units.  Ashok Leyland Ltd closed last month with a volume growth of seven per cent, the company said on Friday. Eicher Motors Ltd. closed last month with 36 per cent growth in sales volumes
Equitas Holdings Ltd. on Friday said it had got the final licence from the Reserve Bank of India to start operations as small finance bank. http://goo.gl/GfdPeS
Indian Oil Corp (IOC) has cut the price of transport fuel effective on Friday by under a rupee each, of petrol by 89 paise a litre and of diesel by 49 paise

·         Reliance Defence gets Reserve Bank nod to exit CDR http://goo.gl/7snjB3

·        Dairy major GCMMF, which markets milk and dairy products under Amul brand , will invest Rs 3,000 crore over the next four years on its expansion plans.     http://goo.gl/P6bCQI

 
Global events

·         China bank PSBC files for 2016's biggest IPO http://goo.gl/6CFBQs

·        EU decides to block itself as a single market to UK: Europe had made it "crystal clear" that access to the European single market remained contingent on accepting its four principles of free movement - applying to goods, services, capital, and people. "There will be no single market access 'a la carte'," European Council President Donald Tusk Angela Merkel, meanwhile, rejected the idea of treaty change or reform in light of the UK's referendum, saying voters would rather see results - not debate - from Brussels. http://goo.gl/tFRcgq

Politics

·         Modi cabinet reshuffle likely in first week of July, poll-bound UP may get more say http://goo.gl/4vA8Or

·         Government feels it has got numbers in Rajya Sabha to move GST Bill http://goo.gl/Yg26Dv

·         Amid a fresh controversy over its legal validity, the one-man Justice S.N. Dhingra Commission of Inquiry set up by the Haryana government to probe controversial land deals in Gurgaon district has sought extension of time for six weeks to submit its report, state government sources said on Thursday. 

·         Three-year tenure for RBI governor is short, says Raghuram Rajan. On Thursday he pitched for a longer tenure for the central bank head, saying the global practice has to be emulated in India as well. http://goo.gl/9ekNft

India Weekly Market of Economy, Corporates, Global Events & Politics

      India Market Weekly

Economy	·         Brexit drags rupee lower, RBI tries to arrest steep fall. The rupee took a sharp plunge of 96 paise against the US dollar to crash below the 68-level today as Britain's vote for leaving the EU played havoc in global markets. http://goo.gl/KRiOVl ·         India ranks 10th in FDI inflows: UNCTAD report: India’s FDI inflows have increased to $44 billion in 2015 as compared to $35 billion in 2014, and the growth has been across the board, the report said. http://goo.gl/9S9ZbJ ·         LIC Chairman S K Roy, appointed by previous UPA government, has resigned nearly two years ahead of completion of his five-year term. http://goo.gl/FcifyX ·           ·         NITI Aayog member Bibek Debroy said on June 22 reiterating the suggestion made by a panel headed by him last year for scrapping separate railway budget http://goo.gl/rvoBDq ·         Govt said it is revising its drugs law to make it easier for companies to do business while ensuring the safety and efficacy of medicines. Ministers decided the current law cannot effectively regulate areas such as biological drugs, stem cells and regenerative medicines, medical devices, and clinical trials http://goo.gl/tMBo3W ·         Cabinet has given approval for a special package for employment generation and promotion of exports in Textile and Apparel sector. It will have 3years sunset clause.   http://goo.gl/oevtUi ·         The pharma sector is expected to grow by 20% on account of relaxed FDI norms and a separate ministry to focus on the sunrise sector is on the anvil, Chemical and Fertiliser Minister said. ·         The Union Cabinet has approved the establishment of "Fund of Funds for Startups" (FFS) at SIDBI for contribution to various Alternative Investment Funds (AIF), registered with SEBI which would extend funding support to Startups. (PIB) ·         Cabinet gave a go-ahead to auctions across seven bands. The sale will see the government put around 2,300 MHz of spectrum on sale — the highest-ever in a single auction — which is likely to fetch the exchequer at least Rs 5.5 lakh crore if all the mobile airwaves are sold at the reserve price. http://goo.gl/mwHqkC ·         Execution of works in 20 smart cities will kick-start from June 25 with PM launching 14 projects in Pune, while 69 others will commence in other parts of the country (PIB) ·         The railways was also asked to increase its share in freight transport from the current 33% to 37% in the next three years in a NITI Aayog report to the PM. Among other targets are doubling the average speed of freight trains from 24 kmph to 48 kmph in three years, and raising that of mail and express trains to 80 kmph in three years, and 110 kmph in 15 years. The targets take into consideration the fact that the railway’s dedicated freight tracks in the western and eastern corridors are expected to be completed by 2019 and 2021, which will divert many freight trains to these corridors. (PTI)
Corporates	·         As Britain voted to exit the EU, Tata Motors-owned Jaguar Land Rover today said it is "business as usual" and will manage the long-term impact and implications of the decision, insisting "nothing will change" overnight for it and the automotive industry. ·         CARE, CRISIL may face SEBI action in Amtek Auto case: The crisis drew attention to the conduct of the rating agencies in assigning a credit rating to the Amtek Auto bonds and the JP Morgan schemes. CARE Ratings chose to suspend its rating on Amtek Auto on 7 August 2015. The agency had given Amtek Auto an AA- rating. Crisil Ltd had assigned a rating of AAAmfs (signifying the highest portfolio credit quality) to the JP Morgan India Treasury Scheme in May 2015. http://goo.gl/05k2IQ ·         Indiabulls Alternative Investments Ltd (AIF) to raise Rs1,000 cr from NRIs for realty fund having a tenure of four years, extendable by a year. Indiabulls Asset Management Co. Ltd, a unit of Indiabulls Housing Finance Ltd, is currently raising its second fund— Indiabulls High Yield Fund— that aims to raise up to Rs1,000 cr from domestic investors to invest in residential projects in key property markets. http://goo.gl/Y2L3tn ·         The Motherson Sumi Group is mulling a mega restructuring plan that will allow to it raise more funds and expand its business http://goo.gl/Bqy70F​
Global events	·         Prime Minister David Cameron on Friday announced his resignation in the wake of defeat in the crucial referendum after Britain voted to leave EU in a deadly blow to the 28-nation bloc that triggered a panic reaction in world markets and raised questions over immigration and other issues in the UK after the divorce. ·         The pound has fallen to levels not seen since about 1985 ·         Making the first moves to calm the markets following Britain's vote to leave the European Union (EU), Bank of England Governor Mark Carney on Friday announced that it was ready to provide additional liquidity worth £250 billion and take any other steps needed to ensure market functioning. ·         Bank stocks were pummeled at the open of European trade Friday in the aftermath of a landmark vote by the U.K. to leave the European Union, which has roiled global markets. ·         Gold prices zoomed to 26-month high of Rs 30,885 per ten gram today in the biggest single-day gain of Rs 1,215 since August 2013 as Britain voted to exit the European Union leading to bloodbath in global equity and currency markets.
Politics	·         As Britain voted to leave the European Union in a landmark referendum, India on Friday said it values its ties with both the UK and EU and will strive hard to strengthen these relationships in the years ahead. ·         Meghalaya seeks exemption from coal mining law ·         US reiterates support for India's NSG bid ·         Govt may review provisions of Geospatial Bill that proposes jail term of seven years and a fine up to Rs 100 crore if anyone wrongly depicts India's map http://goo.gl/PlkfYR