Weekly Market View – 25th November 2019

Indian Market Outlook:

Indian market ended flat for the week ended  as it remained volatile throughout amid no major domestic cues and no concrete signs of progress on the US-China relations.
In the week ended on Friday, 22 November 2019, the Sensex rose 2.72 points or 0.01% to settle at 40,359.41 while Nifty index rose 18.95 points or 0.16% to settle at 11,914.40.BSE Mid Cap and Small Cap indices also closed mixed this week, BSE Mid cap  fell  0.23% whileBSE Small cap index rose 0.21%.

Foreign Institutional investors were the net buyers for the week with net inflow of Rs. 4709.75 Crore while Domestic institutional investors inject Rs.330.01 Crore.
Going forward,A number of data will be released in coming week, starting from US new home sales data for October. On Wednesday, China will come out with industrial profits number for October while US GDP Q3 estimates will be released.India will release its GDP growth for September quarter on Friday.

Focus would be on India’s second quarter GDP print, which is expected to dive further, besides taking cues from global factors in the expiry week ahead.

Latest Spot Price (in US $)

Global Weekly Events

Domestic Economy Indicators

Economic News:

• India’s economic growth probably hit a new low last quarter, with early forecasts showing expansion below 5%.Economists at State Bank of India, Nomura Holdings Inc. and Capital Economics Ltd. lowered their growth forecasts for the quarter ended September to between 4.2% to 4.7%. The government is scheduled to publish the data on Nov. 29.Growth of 4.2% would be the lowest since authorities adopted a new base year for gross domestic product data in 2012. The economy expanded 5%
• Tax officers based in small towns have started sending notices to many financial services companies seeking information regarding these firms’ organizational structures, revenues and Goods and Services Tax (GST) paid. A spurt in such written queries has scared companies that fear an increase in their compliance burden. Businesses that have come under the radar of indirect tax offices are as distant as Kolhapur, Rajahmundry, Vijaywada, Mysore and Mangalore.

Industry News:

• As part of a government-mandated outreach programme, public sector banks disbursed a record Rs 2.5 lakh crore of loans during the festive month of October. As per the data released, corporates availed maximum of Rs 1.22 lakh crore during the month, followed by agri loans (Rs 40,504 crore) and MSMEs (Rs 37,210 crore). Home loans to the tune of Rs 12,166 crore were given by banks while vehicle loans stood at Rs 7,058 crore
• The Narendra Modi-headed Cabinet on Wednesday approved the recommendation of the Committee of Secretaries (CoS) on the relief to the stressed telecom sector, and allowed telcos a 2-year moratorium on spectrum-related dues.These deferred amounts bill be spread equally in the remaining installments to be paid by telecom companies. Interest, as stipulated while auctioning the concerned spectrum, will, however, be charged so that NPV is protected.
• India’s information technology services companies may shed 30,000 to 40,000 middle-level employees this year as growth slows down. The former Chief Financial Officer of IT major Infosys termed these job losses as once-in-five-years normal phenomenon with maturing of the industry.

Company News:

• Japan’s Sony Corp is in talks to buy stake in Network18 Media and Investments Ltd, promoted by Mukesh Ambani owned-Reliance Industries (RIL). The deal is a win-win situation for both the companies. If successful, it will aid Sony strengthen its local offerings taking on its competitors such as Netflix and also give Ambani access to international content.
• The Cabinet on Wednesday gave in-principle approval for disinvesting stake in 5 blue-chip PSUs, including state-owned Bharat Petroleum Corporation Ltd (BPCL). “Numaligarh Refinery will be with the government only. It shall not go in for disinvestment. BPCL minus Numaligarh Refinery will go for disinvestment,” Apart from BPCL, the government has also approved disinvestment in four other central public sector enterprises (CPSEs), Shipping Corp of India (SCI), Container Corp of India, THDC India and North Eastern Electric Power Corporation Ltd (NEEPCO).
• Tata Power on Thursday said it has raised Rs 1,500 crore by issuing unsecured, non-cumulative, redeemable, taxable, listed, rated, non-convertible debentures (NCDs) through private placement.” The company has issued 15,000 NCDs worth Rs 1,500 crore on November 21, 2019,” Tata Power Company said in a filing to the Bombay Stock Exchange.The Company said the NCDs would be listed on WDM (wholesale debt market) segment of National Stock Exchange (NSE).

Global News:

• Chinese President Xi Jinping said Friday that Beijing wants to work for a trade deal with the United States but is not afraid to fight back. As we always said we don’t want to start the trade war but we are not afraid, Xi said. When necessary we will fight back but we have been working actively to try not to have a trade war.
• Saudi Aramco’s initial public offering (IPO) has attracted approximately 73 billion riyals (15.1 billion pounds) in institutional and retail orders so far. Some 1.8 million retail subscribers have injected more than 14 billion riyals into the IPO so far, Samba, one of the banks managing the deal. Retail and Institutional subscription levels for the first five days of the offering have reached an unprecedented scale, demonstrating the confidence of investors in Saudi Aramco.

(Source:Economic Times, BusinessToday, Moneycontrol)

Forthcoming Corporate Actions (23^rd November to 30^th November)

Source:BSE, Elite wealth Research

Upcoming Board Meetings (23^rdNovember to 30^th November)

Source: BSE, Elite wealth Research

Major Economy Indicators

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