Short Market Update: Nifty and Sensex gain 1% each during the week, thumbs up to the interim budget, Cobrapost unearths a scam, high unemployment rate in India, Chanda Kochhar to repay ICICI Rs350 crore, Revised growth rates show the economy grew at a faster pace
Markets started the week on a weaker note and remained volatile for the next two days. However, they ended strongly on F&O expiry and extended gains on the Budget day.
On Friday, markets gave a thumbs up post the budget announcement. BSE Sensex up 212.74 points or 0.59% and closed at Rs 36,469.43, and NSE Nifty up 62.70 points or 0.58% at Rs 10,893.65. BSE Midcap up by 81.29 points or 0.56% and closed at Rs 14,641.38. And, BSE Small Cap up 24.23 points or 0.17% and ended at Rs 13,950.45.
This week, Sensex rose 443.89 points or 1.23% and closed at Rs 36,469.43. While Nifty was up 113.10 points or 1.04% and closed at Rs 10,893.65.
During the week Rupee fell marginally against the dollar and ended at Rs 71.24.
Interim Finance Minister Piyush Goyal gives the budget for FY19-20
India got its budget for FY19-20 on Feb 1st, 2019. Modi Government gave mega announcements for the middle class, rural citizens, farmers, and unorganized sector workers. With the elections around the corner the government’s budget made everyone happy with tax benefits for the salaried class, direct income for farmers, pensions for unorganized sector workers and other reforms. The market rallied after the budget presentation and the week ended on a positive note.
Cobrapost unfolds India’s largest scam, DHFL denies it.
Cobrapost finds in a sting operation that DHFL promoters siphoned over Rs 31,000 Cr public money calling it India’s biggest scam. It said that the company allegedly used the money for political charity to BJP to sanction loans to companies in Gujarat and Karnataka before state elections. However, DHFL denied it and has filed a complaint against the accuser. Though they have accepted that funds have been transferred to certain companies mentioned but nature of them being shell companies is not correct.
India’s unemployment rate at 45 years high in 2017-18
Government official survey showed that the unemployment rate for 2017-18 is at 6.1%. This is the highest since 1972-73. The joblessness stood at 7.8% in urban areas compared to 5.3% in the countryside. The unemployment rate stood at 4.3% for males and 8.7% for women.
ICICI bank’s CEO Chanda Kochhar to repay ICICI the bonus and ESOPs
Chanda Kochhar, the ex-CEO of ICICI might have to repay about Rs 350 crore to ICICI. She received up to Rs 343 crore in employee stock options and Rs 10 crore cash bonus. Between FY09-FY18 she has been issued 94 lakh shares (data collated by ET).
Revised growth rates for FY17 and FY18 shows the economy grew much faster
India’s economy grew at a much faster rate than the initial estimates according to the numbers released by the government. The growth remained high despite roll out of GST and demonetization. The Indian economy grew at 8.2% for FY17 (7.1% reported earlier). Growth for FY18 was at 7.2% (6.7% reported earlier). The upward revision was on account of agricultural and industrial production.