9/22/2018 Wealth Overview

onal (/) Privilege (/privilege-banking/index.page?) Wealth (/wealth-management/index.page?)

(/wealth-
management/index.page?)
ate (http://www.icicibankprivatebanking.com/) Insights (/wealth-management/insights/insights-landing.page?)
NRI (/nri-banking/nri-banking.page?) Corporate (/corporate/corp-index.page?)
Tap here to enter search term
ness (/business-banking/index.page?) About Us (/aboutus/about-us.page?) Rewards (/wealth-management/offers/offer-listing.page?)

elp/support-center.page?)
Products (/wealth-management/personal/productandservice.page?)
Search

Wealth Management (/wealth-management/index.page) › Insights (/wealth-management/insights/insights-landing.page) ›

Rewards (/wealth-management/offers/offer-listing.page?)
Government’s focus on external stability
Speak of the Week 1 day ago

Overview (/wealth-management/personal/aboutwealthmanagement.page?) Get in Touch (/customer-care.page?)

Government’s focus on external stability

Personal Banking LOGIN (/safe-online-banking/safe-online-banking.page?)

(https://www.icicibank.com/campaigns/mailers/2016-june/sotw-17-06-2016/voice116.html)

Indian Economic Update

Government has announced five capital account based measures which could help
bolster confidence somewhat provided they are backed up by current account
measures as well.
https://www.icicibank.com/wealth-management/insights/wealth-overview.page?insightcategory=Article&insightid=insight-governments-focus-on-external-stability-20182109120429406#IEU 1/6
9/22/2018 The measures announced focus on the capital account and include: Wealth Overview

1. Review of mandatory hedging conditions for infrastructure loans

2. Relaxation of manufacturing sector External Commercial Borrowing (ECB)
3. Allowing Indian banks to make markets in masala bonds
4. Removal of withholding tax
5. Relaxation of FPI exposure limits

To ease the pressure on the rupee and address the widening in the Current Account
Deficit (CAD), the finance ministry on September 18 asked ministries to shortlist
commodities and goods for import curbs by increasing customs duty.
According to the Finance Minister Mr Arun Jaitley, Indian government will stick to the
fiscal deficit target of 3.3% this fiscal as it expects buoyant tax revenues and exceeding
disinvestment target. He said that the government is confident of surpassing the 7.2-
7.5% GDP growth rate projected in the Budget for FY2019.
After a detailed discussion with empowered committee - comprising Mr Arun Jaitley, Ms
Sushma Swaraj and Mr Nitin Gadkari, India will be making payments of Iran oil through
INR soon. The payments will be made through Iran Federal bank branch in Mumbai.
India expects Iran oil payment concerns to be eased in next 8-10 days.
Prime Minister Mr Narendra Modi said that the size of Indian economy will double to
USD 5 trillion by 2022 with manufacturing and agriculture contributing USD 1 trillion
each.

Global Update

Both the ECB and Bank of England (BoE) maintained status quo on expected lines, not
offering any surprises to the market.
The Bank of Japan maintained status quo on all fronts—policy rate, quantum of asset
purchases yields curve control programme and forward guidance.
Brazil’s central bank held interest rates at an all-time low at 6.5% but said it could
gradually raise them if the outlook on the currency worsens.
Bank of Thailand left its key interest rate unchanged at 1.5% as it awaited more signs of
a broad-based economic recovery as U.S.-China trade tensions fuel global uncertainty.
China is planning to cut average tariff rates on imports from the majority of its trading
partners as soon as next month.
The Trump Administration said it hasn’t established a process for companies to get
exemptions from the 10 percent tariffs it’s imposing from September 24 on USD 200
billion worth of goods, in a departure from earlier rounds of duties.
https://www.icicibank.com/wealth-management/insights/wealth-overview.page?insightcategory=Article&insightid=insight-governments-focus-on-external-stability-20182109120429406#IEU 2/6
9/22/2018 South Korea’s President Mr Moon Jae-in has stated that North Korea’s Mr Kim
Wealth Jong Un
Overview
wants a second summit with US President Mr Donald Trump soon to hasten
denuclearisation.
According to International Monetary Fund (IMF), Britain's economy will shrink if it leaves
the European Union without a Brexit deal and predicted Britain's economy would grow
by about 1.5% a year in 2018 and 2019 lagging behind Germany and France if a broad
Brexit agreement was struck.

Equity

Domestic stock markets showed improvement on Friday, but ended lower on a weekly
basis, owing to Fast Moving Consumer Goods (FMCG) and banks stocks.
Outlook for exports is improving as demand commentary in IT remains encouraging and
there are signs of stabilisation in US businesses in pharma sector.
Probable recovery in Public Sector Undertakings (PSUs) and corporate financials could
be underway as pre provisioning operating profit improves and asset quality seems to
be stabilising.
Earnings surprises, upturn in Foreign Portfolio Investment (FPI) flows, neutral sentiment
indicators and positive momentum may yield a little more upside in indices while rising
valuations continue to moderate out incremental value in Equities.

During the week Sensex lost 3.28% to close at 36841.6 and Nifty declined 3.23% to close at
11143.1.

Debt

After weakening during the start of the week, government bond prices recovered on
report of Reserve Bank of India (RBI) mulling special Dollar window for oil companies.
Upward bias for yields remain owing to depreciation in rupee, deteriorating outlook for
emerging markets, worsening fiscal and current account metrics, tightening domestic
liquidity and rising global yields.
RBI injected liquidity to the tune of INR 132.17 million (net) under Liquidity Adjustment
Facility (LAF) (including fixed and variable rate repos and reverse repos) as of
September 18, 2018. It injected Marginal Standing Facility of INR 1.5 billion and Special
Refinancing Facility of INR 18.45 billion.
https://www.icicibank.com/wealth-management/insights/wealth-overview.page?insightcategory=Article&insightid=insight-governments-focus-on-external-stability-20182109120429406#IEU 3/6
9/22/2018 Wealth Overview
The 10Y benchmark yield ended at 8.08% as compared to the previous week’s close of
8.13%.

Oil

Oil prices edged higher after Saudi Arabia indicated it was comfortable with a higher
price range ahead of a meeting between major producing countries in Algeria.
Crude prices were also lifted after the Energy Information Administration (EIA) data
showed that crude inventories fell by 2.1 million barrels for the week ending September
14th, which was not in sync with the American Petroleum Institute (API) data that
showed a surprise build up.
Oil markets are in a tug of war as Iran sanctions will continue to provide near-term
support, while discussions around global demand in the wake of tariffs and speculation
of further Organization of Petroleum Exporting Countries (OPEC) supply increases
should temper the upside potential in prices.

Gold

Gold prices are currently trading around the USD 1,200 per ounce threshold.
Gold prices have declined about 12% since April, hurt by the intensifying US-China
trade dispute and on rising US interest rates.

Currency

Indian Rupee showed some improvement earlier today after crossing the 72-mark
during the week.
Dollar index traded marginally lower in the European session. The greenback neared a
seven-week low against a basket of other currencies as markets took relief from the
latest round of tariffs announced from US and China, which were at more subdued rates
compared to what was expected originally.
The Euro broke off the 1.17 handle for the first time since July as the Dollar weakened.
The Sterling held firm around ~1.3 levels on hopes about progress towards a Brexit
deal ahead of an informal European Union summit in Salzburg today and tomorrow.
https://www.icicibank.com/wealth-management/insights/wealth-overview.page?insightcategory=Article&insightid=insight-governments-focus-on-external-stability-20182109120429406#IEU 4/6
9/22/2018 The Yen traded flat against the Dollar at ~112, near its two-month lowsWealth
as the Bank of
Overview
Japan left interest rates unchanged and reiterated its desire to boost consumer inflation
to 2%.

Source: ICICI Bank Research, Private Banking Investment Strategy Team, Bloomberg and
CRISIL.

Related Content

Video (/wealth-management/insights/insights- Article (/wealth-management/insights/insights- Article (/wealth-management/insights/insight

landing.page?insightcategory=Video) landing.page?insightcategory=Article) landing.page?insightcategory=Article)

Mr. Sailesh Raj Bhan keeps faith Further improvement in inflation GDP growth for Q1 FY2019 at
in India and the equity market and industrial growth (/wealth- 8.2% (/wealth-
despite the current market management/insights/wealth- management/insights/wealth-
scenario. (/wealth- overview.page? overview.page?
t- management/insights/wealth- insightcategory=Article&insightid=insight- insightcategory=Article&insightid=ins
overview.page? further-improvement-in-inflation- gdp-growth-for-q1-fy2019-at-82-
insightcategory=Video&insightid=insight- and-industrial-growth- 20180709120613530)

https://www.icicibank.com/wealth-management/insights/wealth-overview.page?insightcategory=Article&insightid=insight-governments-focus-on-external-stability-20182109120429406#IEU 5/6

9/22/2018Explore
Investor Relations
(/aboutus/invest-relations.page?
#toptitle)
ICICI Bank Answers (/Personal-
Banking/faq/index.page?)
Credit Cards (/Personal-
Banking/credit-card/index.page?)
Internet Banking (/Personal-
Banking/insta-banking/internet-
banking/index.page?)
Mobile Banking (/mobile-
banking/index.page?)
Safe Banking (/online-safe-
banking/index.page?)
Initiatives
CSR (/csr/index.html)
Go Green (/go-green/Index.html) Feedback (/feedback.page?)
Awards
(/aboutus/awards.page?)
2017 (/aboutus/awards.page?
year=2017&type=Awards)
2016 (/aboutus/awards.page?
year=2016&type=Awards)
2015 (/aboutus/awards.page?
year=2015&type=Awards)
https://www.icicibank.com/wealth-management/insights/wealth-overview.page?insightcategory=Article&insightid=insight-governments-focus-on-external-stability-20182109120429406#IEU
Rates and Charges
Interest Rates (/interest-
rates.page?)
Gold Rate Today
(https://infinity.icicibank.co.in/BANKAWAY?
Action.Gold.NLI=Y)
Service Charges and Fees
(/service-charges/service-
charges.page?)
Others
Customer Care (/customer-
care.page?)
Form Center (/form-center.page?)
Media Gallery (/media-
gallery/media-gallery.page?)
Notice Board (/notice-
board.page?)
Sitemap (/sitemap.page?
tabname=wealth)
About Us (/aboutus/about-
us.page?)
Regulatory Disclosure Section
(/regulatory-disclosure.page?)
 Wealth
Get updates Overview
from Facebook
ICICI Bank Group Websites
 Follow us on Twitter
Select Website
 Join our network on LinkedIn
Visit Us ICICI Bank Country Websites
 ICICI Bank Facebook Page Select Country
(https://www.facebook.com/icicibank)
 ICICI Bank Twitter Page
(https://twitter.com/icicibank)
 ICICI Bank Linkedin Page
(https://in.linkedin.com/company/icici-
bank)
Terms & Conditions (/terms-condition/terms-and-conditions.page?) | Do Not Call Registry (/do-not-call.page?) | Disclaimer (/wm-
disclaimer.page?) | Multilingual Disclaimer (/multilingual-disclaimer.page?) | Code of Commitment (/code-of-
commitment.page?) | Group Code of Business Conduct and Ethics (/managed-assets/docs/about-
us/code_of_business_conduct_ethics.pdf) | Use of Unparliamentary Language by Customers (/unparliamentary-language-by-
customers.page?) | Privacy (/privacy.page?) | USA Patriot Act Certification (/usa-patriot-act-certification.page?) | Fair Practice
Code for Lenders (/managed-assets/docs/personal/general-links/Bank-Fair-Practices-Code-April-2014.pdf)
6/6