Top 10 News for the Month of July 2018

July was the month of news. Several headlines were made in the month of July. Some of the prominent ones are mentioned hereby

1. Top News 2018: Trade war damages the international equity market

Stocks fell down while dollar increased and the commodities across the global market suffered. Some of the prominent markets that suffered due to these were the Asians, Europeans and the United States. All of this happened due to the increased trade war among the two nations of China and United states.

The S&P 500 Index came to cease after a long run when back in July, Trump declared that they would apply an extra tariff of $200 billion on the Chinese products. The Asian nation, China said that it would give an answer to Trump’s policy by bringing down the shares across European and Asian markets. The metal market suffered the most because of the step. Products such as that of copper, nickel and zinc suffered the most.

• According to New York time of 9:57am, the S&P index fell down by 0.5%.
• Europe suffered a great loss as the Stoxx Europe 600 fell nearly by 1.3%.
• The Topix Index also witnessed a massive decline.
• Hong Kong’s Hang Seng Index also decreased by 1.1%, which is one of the biggest in the previous one week.

2. Top News 2018: Sensex and Nifty experience loss due to the increasing trade war dangers

India’s equity limit also suffered in its three day rise because of the increasing risk of trade wars among China and USA.

The S&P BSE Sensex also saw a rise by 0.07% to 36266 and the nifty also experienced a change in 10948. For maximum time the Nifty and Sensex movement saw a gradual rise due to the profits in TCS. Reliance Industries saw a loss because ICICI Bank, HDFC and Maruti Suzuki.

Most of the sectors organized by BSE, had to suffer backdrop because of the S&P BSE Metal Index by a drop of 3%. Nevertheless, the S&P BSE IT Index sector saw a significant rise by 2.4%.

The small and medium shareholders also suffered because of decline by 0.3% in S&P BSE SmallCap index while S&P BSE MidCap index saw the decline by 0.7%.

3. EU fines Google for a record of $5 billion

European Union imposed a fine of 4.3billion euros which is $5 billion upon Google. EU also order Google to bring about a change in the way it customizes search and web browser apps on the Android devices. This put up to be one of the highest antitrust penalties in the Google records.

Netherland contributes about the same amount of penalty to the European Union’s every year budget. This is considered to be more than that of the US, Chinese and other antitrust authorities. European Union also gave a time frame to Google stating that it should stop all its “illegal practises” in contract to the manufacturers that bring out Google to the users.

4. Reliance Planned to borrow $6 billion to encourage customer push

The second-largest company of India, Reliance Industries Ltd had a plan to borrow 400 billion rupees which is approx. $5.8 billion this financial year in order to improve the customer business. This company is led by the billionaire Mukesh Ambani who is planning to collect funds from loans and banks. Most of the funds would be raised in Indian currency and the person who informed the media chose to stay anonymous since he is not authorised to speak to the media. They also have the shareholder approval of raising about 200 billion rupees from the non-convertible debentures.

The overall debt of Reliance has increased about three times in the last five years since till now it has borrowed for more than 3.3trillion rupees. It had borrowed the amount to spend on its new ventures of telecom and petrochemical business. Ambani is all set to invest in fiber-based broadband service this year and will also purchase some of the assets of Reliance Communications Ltd from brother Anil Ambani. As per the data, Ambani is yet to pay 2.2 trillion rupees and half of it is due by 2022.

5. Top News 2018: Sun Pharma got the Drug Approval of Halol after five years

Sun Pharmaceuticals Industries Ltd finally received the first drug approval for its plant in Halol, Gujarat from US drug regulator. The key facility for this was cleared off last month itself.

The company produced the exchange file, in which it stated that it has received approval from Food and Drug Administration for producing the cancer injectable Infugem at its Halol plant.

This new drug will prove to offer a boost in the medicine production of the company on the basis of oncology portfolio. The market size of the company was about $35million in the past one year. Nevertheless, it all came to a halt in March, 2018.

The Chief executive officer of Sun Pharma (North America), Abhay Gandhi said, “We’re pleased to add this novel product to our expanding oncology portfolio as gemcitabine is one of the most commonly used cytotoxics in oncology practices.”

6. Top News 2018: The Quarter Earning boost

India-Inc. expected that it would be able to provide a strong corporate report for the quarters from April-June. It was the same time previous year, that the company had a profit despite the roll-out of Goods and Service Tax and demonetisation.

The head of India equity research at Citigroup informed Bloomberg, “We have highlighted that a low base of last year is why you have such a strong 21 percent earnings growth expectation this quarter.” He also added, “There are certain headwinds on the macroeconomic front. But at the company level we are starting to see the aggregate performance improve.”

7. Hike in Sugarcane prices, ISMA confirms that it is hard for the mills to afford such high prices

The government initially took the decision to increase the minimum price of sugar mills pay for the cane growers by Rs20 per quintal to Rs275 quintal from the month of coming October as per PTI.

Cabinet Committee on Economic Affairs decided to increase the price and the remuneration price of the sugarcane for the marketing year of 2018-19.

The government took to announce the initial increase in price for helping the price of kharif crops as well as paddy.

The Commission for Agricultural Costs and Prices was the one to suggest the increase of Rs20 per quintal FRP to that of Rs275 per quintal for the upcoming season. For the 2017-18 season, the FRP that the sugar mills had to pay to the sugarcane farmers was Rs255 per quintal which is now set to Rs275 per quintal.

8. Top News 2018: Incentives for milk exports, tariffs on solar imports

India’s dairy product manufacturers are confused on how the decision of the government of applying 10 percent subsidy will be helpful. Hatsun Agro Products Ltd’s RG Chandramogan informed that the incentives are regarded as “too little, too late”. Nonetheless, Vivek Nirmal from Prabhat Dairy said this incentives increase may have a positive effect on the industry.

Union Minister Nitin Gadkari said that India is all set to increase 10 percent incentive on the export of dairy products. The government is also taking necessary steps to distribute the milk by mid-day meals and anganwadis so that the producers get more and better returns.

The cost of Solar projects and tariffs in India will also increase from the lows if the government accepts the proposal to apply 25 percent safeguard duty upon the photovoltaic panels that are being imported from China and Malaysia from the past two years.

Girish Kadam, sectorial head and vice-President of the corporate rating of ICRA Ltd, in an interview told that the proposal will help to increase the capital costs of the solar power projects by 15 percent and also ensure proper returns. This will help the developers to bring an increase of hike by 30-35 paise per unit. One of the statements from Crisil stated, “The duty could raise capital costs for solar projects based on imported modules by nearly 15-20 percent (at current prices).”

The Directorate General of Trade Remedies suggested the safeguard duties despite the price of solar tariffs decreasing in the largest federal auction of India regarding the 3 gigawatts of projects. For the initial year, 25% of safeguard duty has been suggested upon the modules and solar cells. In the second year, the duty will be lowered for the first six months by 20 percent and then it will face reduction of 15 percent for the next six years.

9. Top News 2018: India’s Confusion: Trump or Cheap Iran Oil?

The US ban on the shipments of Iran oil has proved to be a confusion to India’s Prime Minister, Narendra Modi. If India follows Trump’s side India will benefit in trade, but if it takes Iran’s side, it will benefit in getting supplies at low price and precious foreign exchange.

The price of oil imports from Iran was about $9 billion was over by the month of March. It then took up to contracts with North America for crude oil that will assist India to decrease the price of $24.5 billion trade surplus which functions with the largest economy is world. As per the data collected from Census Bureau and Energy Information Administration, India is buying a lot of crude oil from the United States.

If India ends it deal of purchasing crude oil from Iran it will be saved against the shipping costs for a long time which is usually offered by any supplier. If India pairs up with America, it will get a lot of benefits from Trump’s side in its trade war with that of China. If India pairs up with America, it will be beneficial as a number of problems would then be solved. One of the prominent problems that will be solved is that in the watchlist of US treasury, India is regarded as one of the significant currency manipulators that increases its exports by the help of exchange rates.

10. BookMyShow Raises $100 Million in TPG Group-Led Funding

Online ticket booking platform BookMyShow has become quite famous in the recent years. It has been able to raise around $100 million, about Rs680 crore from the fresh-fund program by the TPG Growth. This firm is an essential funding part of the “private equity firm TPG”.

This infusion has been brought in the forefront to increase the plans for improvement and growth, as per BookMyShow. The Chief executive officer and founder of BookMyShow, Ashish Hemrajani in a statement said, “They (TPG group) bring with them extensive experience across the global media and entertainment sector, which will be instrumental as we look to accelerate our growth plans in this space.”

However, BookMyShow has refused from making any comments on the transaction.