Brazil’s inflation rate forecast has been cut to 7.04% from 7.23% unexpectedly in September to its lowest for the month since 1998, consumer prices measured by the benchmark IPCA index BRCPI-ECI rose 0.08 percent in September.
China’s trade balance showed a surplus of USD 41.99 billion. Exports were down by 10% (Y-o-Y) and imports were down by 1.9%(Y-o-Y)
South Korea’s central bank kept interest rates unchanged at 1.25 percent for a fourth consecutive month. The central bank is set to revise economic forecasts from late July when it projected this year’s growth at 2.7% and next year’s at 2.9%.
U.S Department of Labour on 13th October 2016 reported number of individuals filing for jobless benefits in the week ended 8th October held at 246,000 against the expectation of 254,000.
U.S consumer credit rose to USD 25.87 billion from USD 17.78 billion. Analysts had expected a figure of USD 16.50 billion. Rise in consumer credit shows increase in money supply in the economy, which in turn affects the inflation figures.
Twitter share price is down by approximately 5% in last week after Sales Force has denied for further bids to buy Twitter. Earlier Google has also withdrawn its interest in buying Twitter.
Samsung on 12th October 2016 announced the withdrawal of its flagship product Galaxy Note 7 due to serial spontaneous explosions. After the announcement, shares of Samsung tumbled by 8.04%. Samsung also slashed further earning guidance.
Russian oil giant Rosneft is buying 49% stake in Essar Oil. Trafigura (European commodities trader) and UCP consortium (Russian fund) will be buying another 49% in Essar Oil. Present existing promoters will be left with 2% stake post the deal. Deal values at Rs. 728,000 million.
The Sensex and the Nifty fell by 1.38% and 1.31% in the last week.
India’s trade deficit stood at USD 8.4 billion in September from USD 10.34 billion last year. The trade deficit stood at USD 7.9 billion in August. After consecutive two month fall in export figures, September figures saw a spike of 4.6% (Y-o-Y). Exports stood at USD 23 billion mainly driven by engineering and gem & jewellery sector. Imports declined to USD 31.3 billion, down by 2.5% (Y-o-Y).
Coal imports fell by 6% (Y-o-Y) to 16.01 million tonnes in September from 17.10 million tonnes in last year.
Consumer inflation fell consecutively for the second month. Consumer inflation is at 4.31% in September compared with 5.05% in August. The decline was due to drop in food inflation to 3.88% in September from 5.91% in August.
ITC to sell 100% equity stake in King Maker Marketing, which is engaged in distribution of cigarettes in USA. ITC is selling the stake to Premier Manufacturing for USD 24 million.
Reliance Communication gets Bombay High court approval for Sistema acquisition; deal is valued at USD 690 million. Post the deal Rcom will have 118 million subscribers and also to access spectrum of 850Mhz band which can be used for 4G services. Rcom shares rose by 2.03% in last week.
Ashok Leyland is planning to set up 500- crore unit in Telangana. Telangana government introduced an industrial policy to pass all the necessary licenses within 15 days to set up new units.
Cipla had signed a MOU for South Africa’s biosimilars manufacturing facility. New manufacturing facility to be set up at a cost of USD 90 million. Cipla shares are up by approximately 3% last week.
Bank of Baroda is raising Rs. 10000 million through Basel III compliant additional tier- I capital – perpetual debt instruments and the same instruments with green shoe option of Rs. 10000 million on private placement basis. Total not exceeding Rs. 20000 million.
Infosys had posted Q2FY17 results, consolidated revenue is up by 10.5% (Y-o-Y) and net profit is at Rs. 36060 million.Infosys had cut down the future revenue guidance to 8% – 9% from 10% in dollar terms. The downgrade disappointed the market as Infosys shares tumbled appx 2.5% post announcement of earnings.
TCS had posted Q2FY17 results, consolidated revenue up by 8% (Y-o-Y) and net profit is at Rs. 60730 million. Company had announced dividend Rs. 6.5 per share. TCS share price is down by 0.59% in last week.
This week Reliance Industries, Wipro, UltraTech cement, ACC, Hindustan Zinc, Cairn India and HCL Technologies are some companies which are slated to announce their quarterly results.
Our model Twelve Stock Retirement Portfolio has given a one-year return of 35.54% and has outperformed the benchmark Sensex by 32.20%.
On a weekly basis, Twelve Stock Portfolio has lost 0.18% in value and the Benchmark BSE Sensex has lost 1.38%. The Portfolio outperformed the benchmark by 1.20%.
The Nineteen Stock Portfolio has given a one-year return of 41% and has outperformed the benchmark BSE 500 by 31%.
On a weekly basis, the Nineteen Stock Portfolio has lost1% in value and the Benchmark BSE 500 has lost 1.11%. The Portfolio underperformed the benchmark by 0.11%.
Our Global Ten Stock Model Retirement Portfolio has given one-year return of 6.34% and has outperformed the benchmark S&P 500 index by 1.43%.
On a weekly basis, Global Ten Stock Model Retirement Portfolio has lost 0.90% in value and the Benchmark S&P 500 has lost by 0.97%. The Portfolio outperformed the benchmark by 0.06%.
Industry and Stock Specific trends
The sectoral indices closed in the mixed territory last week. The S&P Bankex, PSU and Auto indices lost by 1.97%, 0.76% and 1.29% respectively. The S&P IT and Oil &Gas gained by 0.72% and 0.80% respectively in the last week.
Infosys has witnessed rise in turnover and open interest in the stock futures segment. The Stock price of Infosys rose by1.28% in the last week. The Nifty Index futures saw fall in open interest by 10.13% for the October series. There was a rise in open interest by 29% and 486% for the November and December series respectively.
Indian Rupee depreciated by 0.09% against USD in last week.