7th January 2017
The Weekly Business Digest
Markets Weekly
EQUITIES NIFTY 8,243.8 + 0.7 % SENSEX 26,759.2 + 0.5 % S & P 500 2,269.0 + 1.4 % NASDAQ 4,965.0 + 2.1 % FTSE 7,185.6 + 0.6 % DAX 11,566 + 0.7 % NIKKEI 225 19,454 + 1.8 % HANG SENG 22,503 + 2.3 % KOSPI 200 263.2 + 1.2 %
FX USD 67.96 + 0.1 % EUR 71.99 + 0.4 % GBP 84.04 + 0.7 % JPY 0.59 + 0.9 % COMMODITIES
BRENT CRUDE($)
57.23 + 0.7 %
GOLD MCX 28,302 + 1.7 % SILVER MCX 40,032 + 1.5 %
INTEREST RATES
INDIA 10-YR BOND
US 10-YR BOND
6.150 %-6 bps
2.366 %-7 bps
ANSWER TO THE PREVIOUS QUIZ— Previous instances of demonetization in India are:
STORY OF THE WEEK
Bitcoin- new safe haven replacing Gold? Becomes best performing currency of 2016, however fell 14 % in this week Amidst global economic and geopolitical uncertainty, Bitcoin, the cryptocurrency, is being seen as a hedge against currency devaluations. It has risen + 122 % YoY in value, also driven by high demand and falling supply while falling 14 % this week. To read more, click here: CNBC | Mint | Fortune
SBI starts new year with rate cut war SBI, country’ s largest lender, has reduced its MCLR by a whopping 90 basis points. Its one year MCLR is now 8 % compared to earlier 8.9 %. Necessitated by surplus liquidity, this move also aims at boosting credit growth which has hit multi-decade low due to demonetisation. The new MCLR will apply to new loans and to old loans only when they are renewed or repriced. Other banks like UBI, IDBI, HDFC, PNB, etc. have also cut MCLR or reduced interest rates.
To read more, click here: The Hindu
Paytm gets RBI approval for payment bank On 3rd January, RBI gave permission to Paytm to launch its payment bank. Paytm is expecting to launch its payment bank in the next 30 to 60 days with the first branch coming up in Noida, Uttar Pradesh. To read more, click here: Economic Times | Mint
Relief to all foodies: Service Charge not mandatory at restaurants and hotels Department of Consumer Affairs has stated that payment of service charge is not mandatory and can be waived if a consumer is dissatisfied with the services, based on a clarification received from the Hotel Associations of India. The department has asked state government to sensitise customers while the Federation of Hotel & Restaurant Associations of India denies any such clarification given by them and will present a legal case to the department. To read more, click here: Economic Times
Tata Sons Calls Shareholders Meet to Oust Mistry From Board Tata Sons Ltd., the holding company of India’ s largest conglomerate, has called for an extraordinary general meeting on Feb. 6 to oust former Chairman Cyrus Mistry from the board of the closely held firm. This is the final step that Tata Trusts can take to oust Cyrus Mistry. To read more, click here: Bloomberg | Business Today
In 1946, Rs 1,000 and Rs 10,000 banknotes were withdrawn. In 1954, Rs 1,000, Rs 5,000, Rs 10,000 notes were reintroduced but again demonetized in January 1978.
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