Daily News and Market Round-Up - 13th June 2018

 

                                                                                                                                                                         

Today's Headlines – 13th June 2018 Market and Economy  ·         Rise in inflation, industrial production likely to spur more RBI rate hikes ·         Monetary policy: RBI rate hike will impact India Inc's capex, says CII ·         RBI seeks more powers to ably regulate PSBs ·         Banks lost ₹ 75,000 cr in frauds in 3 years: RBI to House panel ·         Equity MFs record Rs 22,500-crore inflows in April-May ·         Trump, Kim sign agreement after historic summit ·         Gold imports may fall 18% in 2018 as price rise cuts demand   Market Round-Up                                                  EQUITY Market   8th June,2018 11th June,2018 12th June,2018 change from Prev Day Nifty Fifty 10767.65 10786.95 10842.85 55.90 Sensex 35443.67 35483.47 35692.52 209.05 Nifty MidCap 100 18830.60 18825.10 18985.50 160.40 Nifty SmallCap 100 7658.10 7673.70 7726.70 53.00 Sensex P/E (Trailing) 22.91 23.37 23.51 0.14 Nifty Fifty P/E (Trailing) 27.27 27.47 27.60 0.13 Nifty MidCap 100 P/E (Trailing) 53.60 52.89 53.34 0.45 Nifty SmallCap 100 P/E (Trailing) 65.40 65.53 65.72 0.19

DEBT Market ( weighted Average Yield) 8th June,2018 11th June,2018 12th June,2018 change from Prev Day Call Rates 6.02 6.04 6.10 0.06 Repo  5.87 5.91 6.03 0.12 CBLO  5.07 6.06 6.12 0.06 10 years – 7.17% Govt Stock 2028 7.9400 7.9628 7.9662 0.0034   Rise in inflation, industrial production likely to spur more RBI rate hikes India's retail inflation in May rose to a four-month high of 4.87%—courtesy costly petrol and diesel, and a weak rupee—while industrial production recovered marginally to grow at 4.9% in April, data from the Central Statistics Office (CSO) showed on Tuesday. This, after the Reserve Bank of India (RBI) on 6 June raised repo rate by 25 basis points to 6.25%—the first rate hike in over four years. One basis point is one-hundredth of a percentage point. While manufacturing grew at a robust 5.2%, slow electricity generation (2.1%) dragged down overall growth in the index of industrial production (IIP), CSO data showed. Read more at: https://www.livemint.com/Industry/PS4IiZXUDpKtqrMOQe9PIP/Indias-industrial-output-grows-49-yearonyear-in-April.html Monetary policy: RBI rate hike will impact India Inc's capex, says CII Rate hike by the Reserve Bank of India will increase the cost of doing business and impact capital expenditure by India Inc, industry body Confederation of Indian Industry (CII) warned on Tuesday. "The cost of doing business goes up because of the hike and it will impact capex (capital expenditure) by the industry," CII president and vice-chairman of Bharti Enterprises Rakesh Bharti Mittal told reporters here. He was, however, quick to add that the normal monsoon and supply side measures will have a cooling effect on inflation and help restrict the rate hikes to just the one taken earlier this month. Read more at: https://www.business-standard.com/article/finance/monetary-policy-rbi-rate-hike-will-impact-india-inc-s-capex-says-cii-118061300008_1.html RBI seeks more powers to ably regulate PSBs Amid tough questioning by lawmakers over increasing bad loans and frauds in the banking sector, the Reserve Bank of India governor Urjit Patel on Tuesday made a strong case for more powers to effectively regulate public sector banks (PSBs). The governor assured the House panel members that steps were being tak­en to str­engthen the syst­em to prevent frauds. Pa­tel informed the standing committee on finance that RBI is in communication with the government for discontinuing the practice of appointing RBI nominees on boards of PSBs to avoid any conflict of interest between the regulator and regulated entities. Regarding PSBs, Patel told the panel that RBI has "inadequate" control over them and asked for more powers to regulate them. Read more at: http://www.mydigitalfc.com/plan-and-policy/rbi-seeks-more-powers-ably-regulate-psbs Banks lost ₹ 75,000 cr in frauds in 3 years: RBI to House panel Shishir Sinha The Reserve Bank of India, on Tuesday, informed a Parliamentary Committee that banks have reported 15,673 incidents of frauds during the last three financial years (2015-16, 2016-17 and 2017-18), involving a total amount of ₹74,993 crore. RBI Governor Urjit R Patel appeared before the Standing Committee on Finance, on Tuesday, to record evidence of the Governor on 'Banking Sector in India: Issues, Challenges and the Way Forward, Including Non-Performing Assets/Stressed Assets in Banks/Financial Institutions'. The regulator was also asked whether the failure to detect irregularities in issuance of letters of undertaking (in the Nirav Modi scam) point to the failure of the supervisory function of the RBI. The RBI made it clear that it monitors banks on a continuous basis through 'offsite reporting mechanism, coupled with need-based on-site inspection'. Read more at: https://www.thehindubusinessline.com/money-and-banking/banks-lost-75000-cr-in-frauds-in-3-years-rbi-to-house-panel/article24146498.ece?homepage=true Equity MFs record Rs 22,500-crore inflows in April-May Equity mutual funds had recorded net inflows of over Rs 1.7 lakh crore in financial year 2017-18, with a monthly average of around Rs 14,200 crore. But in the first two months (April-May) of the current fiscal, inflows into equity funds have slowed down and stood at Rs 11,171 crore and Rs 11,350 crore respectively, data from Association of Mutual Funds in India (Amfi) showed. Market participants say that the slow pace of inflows into equity funds (also includes equity-linked saving schemes-ELSS) is largely to do with the volatility in the equity markets. In the month of March this year, inflows in equity mutual were at Rs 6,657 crore — lowest in 13 months as investors redeemed funds to avoid the tax on long-term capital gains (LTCG) that was effective for transactions done from April 1. Read more at: https://www.financialexpress.com/money/mutual-funds/equity-mfs-record-rs-22500-crore-inflows-in-april-may/1203808/ Trump, Kim sign agreement after historic summit US President Donald Trump and North Korean leader Kim Jong Un pledged on Tuesday to work towards complete denuclearisation of the Korean peninsula while Washington committed to provide security guarantees for its old enemy. But a joint statement signed at the end of their historic summit in Singapore gave few details on how either goal would be achieved. "President Trump committed to provide security guarantees to the DPRK and Chairman Kim Jong Un reaffirmed his firm and unwavering commitment to complete denuclearisation of the Korean Peninsula," said the statement. DPRK is the Democratic People's Republic of Korea, the formal name of North Korea. Trump said he expected the denuclearisation process to start "very, very quickly". US Secretary of State Mike Pompeo and North Korean officials would hold follow-up negotiations "at the earliest possible date", the statement said. Read more at: https://www.thehindubusinessline.com/news/world/kim-commits-to-complete-denuclearisation-and-trump-to-provide-security-guarantee/article24143143.ece?homepage=true Gold imports may fall 18% in 2018 as price rise cuts demand Gold imports into India, the world's second biggest buyer of the metal, could drop by 18 percent in 2018 from a year ago as rising prices and a falling rupee have dented demand from retail jewellery buyers, according to a Reuters poll. This year's imports are likely to be 725 tonnes, according to the median of responses from 12 industry participants in the poll. The range of responses was between 650 tonnes to 800 tonnes. India imported 880 tonnes of gold in 2017, according to data compiled by precious metals consultancy GFMS, a division of Thomson Reuters. A drop in imports from India could weigh on global prices but would help the South Asian country reduce its trade deficit. Read more at: //economictimes.indiatimes.com/articleshow/64560903.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst