Weekly Market Report

Finance is not merely about making money. It’s about achieving our deep goals and protecting fruits of our labor. It’s about stewardship and, therefore, about achieveing the good society.
– Robert .J. Shillar

As the countdown begins for the Interim Budget 2019, it looks like the D-Street is experiencing some nervousness. The S&P BSE Sensex and the Nifty50 were down by about 1 percent for the week ended January 25. As many as 52 stocks on BSE 500 index hit a fresh 52 week low in the matter of a week. The Indian Rupee (INR) however, registered a marginal gain of Rs. 0.02. INR closed at 71.17 against the US dollar amid increasing demand for the greenback from exporters and heavy selling in domestic equities.

Key Updates for the week

• BJP-led NDA government will present the interim budget on 1st February. Finance Ministry officials organized the customary ‘Halwa Ceremony’ to mark the printing of budget documents. However, Finance Minister Arun Jaitley was absent for this customary ceremony due to health reasons. Piyush Goyal has been entrusted with the responsibility to present the interim budget. This is the second instance in eight months when Goyal will be stepping in for Jaitley. The Interim Budget is expected to make some key announcements, including relief package for farmers, poor and sops for the middle-class.
• China’s economy slumps to 28 years low to 6.6% in 2018. The 6.6% growth rate is the slowest rate since 1990, which was at 3.9%. The growth rate of the Chinese economy was at 6.8% in 2017. The deteriorating situation in China, a market that businesses around the world rely upon for growth, has spooked investors and prompted warnings from top companies from all over the world. The US government and the Chinese government have been locked in an escalating trade war since early 2018, raising import tariffs on each other’s goods.
• IndiGo Airlines Q3 net profit dives 75% YoY. InterGlobe Aviation, a parent of IndiGo Airlines, reported a 75 percent fall in profit at Rs 190.9 crore in the quarter ending December 2018, as high fuel prices and currency depreciation adversely impacted the bottom line. The airline had a profit after tax of Rs 762 crore in the corresponding period of 2017-18. IndiGo’s co-founder and interim CEO Rahul Bhatia believe that the aviation has been performing well in a continued difficult environment and have grown its fleet by one aircraft a week, which has increased their capacity by 33%.

HRITHIK Performance

• HRITHIK stocks stand for HDFC Bank, Reliance Industries, Infosys, Tata Consultancy Services, Hindustan Unilever Limited, IndusInd Bank and Kotak Mahindra Bank. HRITHIK stocks have an enormous impact in the Indian market and possess a combined market capitalization that is bigger than the size of most national economies.
• HRITHIK stocks are considered the FAANG of India. FAANG stands for stocks of Facebook, Apple, Amazon, Netflix, and Google. This term was coined by CNBC Analyst Jim Cramer, to highlight that these 5 stocks have enormous impact as a collective group.