3 Years after exit, SoftBank looking to reinvest in Flipkart
SoftBank Vision Fund has held discussions with Flipkart to invest around $600-700 million, three years after the Japanese group exited the Indian online retailer by selling shares to Walmart Inc. This would mean that Flipkart will stay on as a private company for longer than what was being earlier talked about going Public early next year.
Flipkart is pushing to build an ecosystem in order to compete with Amazon, Reliance and the Tata Group. While it leads in fashion e-commerce with Myntra. Online payments player PhonePe, which was a part of the Flipkart Group, was spun off from the e-commerce company last year. In April, the online retailer acquired Cleartrip to strengthen its presence in the travel and hotel booking space. Last year, Flipkart invested ₹1,500 crore to pick up nearly 8% stake in brick-and-mortar fashion retailer Aditya Birla Fashion and Retail Ltd (ABFRL) and also bought a 27% stake in Arvind Fashions’ subsidiary Arvind Youth Brands. Other recent investments include Shadowfax, a logistics startup and Ninjacart, a fresh produce supply chain company.
If the deal materialises, it will be a big move by SoftBank in India’s e-commerce market, which it has reordered with massive cash infusions.
DMart acquired as many as seven properties worth ₹400 crore
DMart goes on a property acquisition spree during COVID-19 as the company looks to increase its footprint by taking advantage of the subdued real estate prices. The company has the same ideology as that of McDonald’s that is instead of leasing the property it purchases the property in this way the Assets of the company increases and also the ecosystem that it will build near its property increases the value of the property multifold times. DMart has increased its presence in places such as Mumbai, Hyderabad, Pune and Bengaluru with the recent property acquisition.
Rossari Biotech to acquire Unitop Chemicals
Rossari Biotech a specialty chemicals company on Wednesday announced that it will acquire Unitop Chemicals, a supplier of surfactants, emulsifiers, and specialty chemicals, for ₹421 crores. Rossari will be acquiring 100 percent of the equity capital of Unitop Chemicals. The acquisition will be done on an all-cash basis as the company concluded a preferential issue of equity aggregating to ₹300 crores to augment the strength of its balance sheet. In this way, the company won’t be adding any additional debt to its book and would just use the money raised from equity to fund its acquisition.
This acquisition will bring complementary dimensions to Rossari Biotech and help expand its product portfolio, presence in adjoining areas of specialty chemical segments, pooling together of related technologies, larger international exposure, better domestic market reach, well-experienced and competent talent pool, and increased end-user industry applications.
RBI’s Monetary Policy Committee meeting
India’s Monetary Policy Committee meeting announced that the panel is maintaining repurchase rate unchanged at 4%. The RBI expects the economy to expand 10.5% in FY2022E, and its view on GDP growth rate after a slew of recent high-frequency indicators showed a hit to activity will be key to watch out for. RBI’s current reading is underpinned by expectations of a normal monsoon, a return of pent-up demand once lockdowns end and an improved pace of vaccination. A rise in input and wholesale costs due partly to supply disruptions caused by the pandemic are beginning to feed into retail inflation — the measure targeted by the RBI to decide its monetary policy setting. That could nudge the central bank to revise its forecast, which is pegged at 5.2% for H1 FY2022, 4.4% for the Q3 FY2022E and 5.1% for Q4 FY2022E.
Model Tenancy Act
The Centre on Wednesday had approved the Model Tenancy Act(MTA), 2021 with a provision to set up district-wise rental courts, authorities and tribunals across the country for adaptation of enacting fresh legislation or amending existing rental laws.
India has over 1 crore units which are lying unutilised, and the number may be much higher now. The MTA will unlock vacant houses for renting purposes and promote private participation in addressing the housing shortage. This move will be a big boost for the rental housing space in India.
Balanced Advantage Funds have cut their exposure to Equity
Fund Managers have reduced their equity stake in Balanced Advantage Funds as they see that the valuations of the companies are no longer cheap and the current bullish run of the market is due to the excess liquidity present in the market. Fund managers feel that there is a bubble in the market which would bring a correction in the market. Most of the fundhouses have reduced their stake towards equity to approximately 30-35% of the total portfolio and are currently sitting on cash reserves.
Cryptocurrency V/S Traditional Assets (Stocks, Mutual Funds and other Debt products)
What is Cryptocurrency? How does it work? And why are they so popular?
- A cryptocurrency is a form of payment that can be exchanged online for goods and services.
- Cryptocurrencies work using a technology called a blockchain. Blockchain is a decentralized technology spread across many computers that manage and record transactions.
- As an asset class, its underlying asset is not a business, currency, building, or commodity. Instead, it is a multi-dimensional digital value container powered by a public blockchain.
- People in support of cryptocurrencies as the currency of the future and are racing to buy them now, presumably before they become more valuable
- Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, as historically these banks tend to reduce the value of money via inflation.
- Other supporters like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and can be more secure than traditional payment systems.
- Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way to move money.
Should you look at Cryptocurrencies as an investment?
Price volatility and lack of inherent value
For those who see cryptocurrencies such as Bitcoin as the currency of the future, it should be noted that a currency needs stability so that merchants and consumers can determine what a fair price is for goods. Bitcoin and other cryptocurrencies have been anything but stable through much of their history. For example, while Bitcoin traded at close to $20,000 in December 2017, its value then dropped to as low as about $3,200 a year later. By December 2020, it was trading at record levels of $48,000.
This price volatility creates a conundrum. If bitcoins might be worth a lot more in the future, people are less likely to spend and circulate them today, making them less viable as a currency. Why spend bitcoin when it could be worth three times the value next year?
Not an asset backed investment
Since cryptocurrencies are not backed by any asset, the underlying value of the asset is 0. So if an individual is looking at cryptocurrencies from an investment perspective and wants to link any goal with it, it becomes very risky as he doesn’t know what the future value of the investment will be.
No Regulatory Body
Cryptocurrency is not centrally regulated by any government, so every government is taking different approaches to regulate cryptocurrencies. There are several areas of regulation like reporting for tax purposes and regulating initial coin offerings the way that securities are regulated.
As a digital technology, cryptocurrencies will be subject to cybersecurity breaches and may fall into the hands of hackers. Mitigating this will require continuous upkeep of security infrastructure.
Influence by bigger players
The crypto market is dominated mainly by ten big whales or privates. They are massive in the market and take up a lot of space and volume. It is too easy to manipulate the market so far. They make it very difficult to put any price target on the cryptocurrency.
Cryptocurrency v/s Traditional Investments
|Presence of Underlying Asset||No||Yes|
|Availability of Data||Limited||High|
|Regulatory Body||Not present||Different for every asset class and present in every country|
|Fundamental research possible||No||Yes|
|Technical research possible||Yes||Yes|
|Global acceptance||Banned in a few countries||Yes|
Cryptocurrencies appear to be a lucrative form of investments today because of the historical return it has delivered compared to other asset classes. But in the case of cryptocurrencies, its pros like it is seen as a futuristic currency, it has low transaction costs for global transaction, elimination of banking charges are outweighed by its flaws like that it has like it has no underlying asset, no regulator, prices easily influenced by a few players, limited data, etc. So at this point in time, it won’t be wise enough to diversify your portfolio by purchasing cryptocurrency.
RBI brings large NBFCs, UCBs under risk based audit system
The Reserve Bank of India (RBI) has brought all deposit-taking non-banking finance companies (NBFCs), non-deposit NBFCs with assets of Rs 5000 crore and more and also urban co-operative banks (UCBs) with assets of Rs 500 crore and above under a risk-based internal audit (RBIA) framework.
The risk assessment framework covers risks at corporate, branch, portfolio and individual transactions levels and associated processes. It should include identification of inherent business risks and drawing-up a risk-matrix for both the factors inherent business risks and control risks, the RBI said.
The central bank’s move is in response to failures in large NBFCs and UCBs in recent times like IL&FS and Punjab and Maharashtra Co-operative Bank (PMC) which did not throw up risks in their internal audits.
Kishore Biyani barred for one year on insider trading charges by SEBI
India’s markets regulator on Wednesday barred Future Group founder Kishore Biyani and several related entities, including his brother Anil, from accessing the securities market in an insider trading case dating back to 2017.
Apart from the ban, the Securities and Exchange Board of India (Sebi) also ordered a penalty and disgorgement of illicit gains from Biyani-family-controlled entities that include Future Corporate Resources Pvt. Ltd (FCRL), FCRL Employee Welfare Trust (FCRLWT) and several individuals found to be acting in connivance with the Biyanis.
SC orders disbursement of Rs 9,122 crore to investors of 6 Franklin MF schemes
In a relief to over 3 lakh unitholders, the Supreme Court on Tuesday allowed the disbursement of Rs 9,122 crore to investors of the six shut Franklin Templeton Mutual Fund (FTMF) schemes in “proportion to their respective interest in the assets of the scheme” within 20 days. The six debt schemes were wound up by FT on April 23, citing difficulties in the bond market conditions due to the pandemic.
The exercise for distribution of money has to be completed expeditiously, preferably within 20 days from Tuesday’s order, the apex court said, while giving liberty to parties to approach it in case of any difficulty arising out of the process.
Maruti Suzuki ties up with ALD Automotive for subscription programme
The country’s largest carmaker Maruti Suzuki on Wednesday announced its partnership with ALD Automotive India, the operational leasing and fleet management business line of the Société Générale Group, for its subscription program.
Maruti Suzuki Subscribe offers cars in eight other cities including Delhi-NCR, Bengaluru, Hyderabad, Pune, Mumbai, Chennai, Kochi and Ahmedabad. The subscription plan is now available with varied mileage options of 10K, 15K, 20K and 25K km annually and 12, 24, 36 and 48-month tenures, which brings wide range of choices for customers. After the completion of subscription tenure, the customer can also opt to extend, upgrade the vehicle, or buy the car at market price.
Bharti Airtel posts net profit after six straight quarters; Arpu at 3-year high of Rs 166
Bharti Airtel returned to the profits, posting a net profit of Rs 854 crore in the October-December period after six straight quarters of losses.
Airtel added 14.2 million users – the most in four quarters – and subscribers moved to higher-paying plans, helping drive up average revenue per user (ARPU) to a three-year high of Rs 166, from Rs 162 in July-September.
IIFL Asset Management appoints Manoj Shenoy as CEO
IIFL Asset Management (IIFL AMC) has appointed Manoj Shenoy as its chief executive officer with effect from February 2, 2021.
Shenoy joined the IIFL Wealth group (IIFLW) in April 2020 as executive director following IIFLW’s acquisition of L&T Capital Markets (LTCM), a wholly-owned subsidiary of L&T Finance Holdings (LTFH).
Brookfield REIT issue subscribed 15% on Day 1
The Brookfield REIT is the third issue to enter the primary market in the REIT segment. It is India’s only institutionally managed public commercial real estate vehicle. The IPO consists of fresh issue of units with a price band of Rs 274-275. The IPO opened on Wednesday and will close on Friday.
The issue received bids for 1,15,12,600 units out of the 7,62,78,200 units on offer.
The REIT includes five properties in Mumbai, Delhi-NCR and Kolkata that yielded Rs 455.14 crore in the first six months of this quarter.
Ahead of the IPO, Brookfield REIT had raised Rs 1,710 crore from anchor investors. Sources said the anchor investment round saw participation from financial institutions such as HDFC AMC, SBI Life, Tata AIG, HDFC Life, Kotak Mahindra AMC and Bajaj Holdings, among others. Foreign portfolio investors such as Schroders and Prusik also invested.
Jeff Bezoz steps down as CEO of Amazon
Jeff Bezos is to step down as chief executive of Amazon. He’ll be succeeded by Andrew Jassy, the head of Amazon Web Services, the division that accounts for most of the group’s profits. The succession symbolizes how the company has moved away somewhat from its original e-commerce roots.
Oil prices on the rise again
The U.S. government will release official inventory data for last week, a day after the American Petroleum Institute reported a surprisingly sharp drop of over 2 million barrels in crude stocks, Chinese crude stocks have also fallen to their lowest in a year, Bloomberg reported.
The OPEC’s Joint Technical Committee said on Tuesday that it expects world stockpiles to fall to their five-year average by the middle of the year. That’s been its quantitative objective in keeping supply off the market since the pandemic exploded.
OPEC’s Joint Ministerial Monitoring Committee is expected to decide against any immediate changes to output when it meets later.
Stimulus hopes in the US
The Democratic-led U.S. Senate and House of Representatives are set to take their first steps toward delivering fresh financial relief to families and businesses affected by the pandemic that has killed more than 433,000 Americans.
The Senate is to begin work on legislation this week, despite misgivings among Republicans and some Democrats about the size of President Biden’s proposed $1.9 trillion package.
The U.S. national debt ballooned 40% under Donald Trump and expectations for more stimulus were among factors that recently pushed Treasury yields to 10-month highs.
Manhattan Office Supply Hits Record High With Skyscrapers Empty
Manhattan’s office supply has surged since March when the pandemic emptied out skyscrapers and companies turned to remote working. Efforts to bring employees back to offices have been hampered by rising Covid-19 cases.
With workers stuck at home, the office availability rate rose to 14.9% in January, the highest in data going back to 2000, according to a report by Colliers International.
Union Budget 2021-22 to be presented on February 1
The Union Budget for 2021-2022 will be presented on February 1. According to PTI, the Cabinet Committee on Parliamentary Affairs (CCPA) has said the Budget will be presented on February 1 and President Ram Nath Kovind will address a joint sitting of both the Houses of Parliament on January 29.
Telecom dept likely to issue a notice for spectrum auction this week
The Department of Telecom is expected to issue the notice for an upcoming spectrum auction this week that will have timelines and rules to bid for airwaves. The Union Cabinet approved a proposal for the auction of 2,251.25 Megahertz (MHz) of spectrum worth Rs 3.92 lakh crore at the base price on December 17, 2020.
The DoT was expected to issue the Notice Inviting Application (NIA) for the auction in December but due to an emergency engagement of a top authority, it got delayed.
RBI imposes a penalty on Bajaj Finance for rule violations on recovery practices
The Reserve Bank of India (RBI) on January 5 imposed a monetary penalty of Rs 2.50 crore on Bajaj Finance Limited for violation of rules pertaining to recovery and collection methods.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of the Reserve Bank of India Act, 1934, taking into account the failure of the company to ensure that its recovery agents did not resort to harassment or intimidation of customers as part of its debt collection efforts and thereby failing to adhere to the aforesaid directions issued by RBI.
HDFC’s individual loan disbursements rise 26 pc in the December quarter
Mortgage firm HDFC Ltd on Monday said its disbursements in the individual loan category have grown by 26% during the third quarter ended December 2020. The individual loan business continued to see improvements during the December quarter, HDFC Ltd said in a regulatory filing. Disbursement growth over the corresponding quarter of the previous year was 26 percent. For the nine months ended December 31, 2020, individual loan disbursements stood at 86 percent of the levels in the corresponding period of the previous year.
IndusInd Bank posts 3.2% quarterly growth in net advances
Private lender IndusInd Bank has registered a 3.2% quarter-on-quarter (q-o-q) growth in the net advances in the December quarter, according to provisional data released by the bank on Tuesday. However, the loan growth remained flat during the quarter on a year-on-year (y-o-y) basis. The lender has also managed a 5% quarterly growth in deposits during the December quarter of the current fiscal. On a y-o-y basis, the deposits saw double-digit growth of 10.56% in the December quarter.
Brent oil rises to highest since February after Saudi Arabia output cut
Brent oil prices rose on Wednesday to the highest since February after Saudi Arabia agreed to make bigger cuts in output than expected during a meeting with allied producers, while industry data showed U.S. crude stockpiles fell last week.
Brent crude rose as much as 0.6% to $53.94 a barrel, the highest since Feb. 26, 2020. It was at $53.79 a barrel at 0147 GMT and gained 4.9% on Tuesday. The reductions agreed by Saudi Arabia were included in a deal to persuade other producers in the OPEC+ group to hold output steady.
With coronavirus infections spreading rapidly in many parts of the world producers are trying to support prices as demand takes a hit from new lockdowns being put in place.
Indian steelmakers have raised product prices effective 1 April to factor in rising raw material costs
State-run Steel Authority of India, world’s No. 8 Tata Steel, India’s No. 3 producer JSW Steel, Ispat Industries, and secondary steel maker Uttam Galva have all announced price increases for April.
The price hike is driven by cost on account of coke, iron ore and ferrous alloys.
Iron ore prices have surged more than two-fold in the last 12 months on strong demand from China and a recovery in Europe and the United States to near $160 a tonne.
Tata Steel to develop GreenPro Ecolabel to help steel sector reduce carbon emission
Tata Steel has embarked on developing a GreenPro framework, GreenPro Ecolabel, to manufacture steel rebars, a first of a kind initiative in India, that would help the steel sector reduce the carbon footprint while manufacturing steel products.
The company has joined hands with the CII green business center to develop the framework that offers the Ecolabel program, enabling end-users to buy steel having the lowest environmental impact.
The use of green or low carbon materials has the potential to reduce emissions due to the construction and dismantling of buildings by up to 50%- 70% by 2050.
From performance cars to SUVs and sedans, Audi lines up new cars for India comeback
Audi is looking to make a comeback and is lining up a series of cars – right from small SUVs and sedans, to sports cars and electrics as the company plans fresh investments and new models to gain back the luxury market share which it once dominated.
It is planning to localize certain models, such as the Q2 mini SUV. Also on cards is the much-anticipated eTron electric SUV (and other electric derivatives) which will be priced upwards of Rs 1 crore. Inline are also the Q3, Q5, and Q7 SUVs, the RS5 and S5 performance cars, and the A3 entry sedan.
Rising demand for an owned mode of transport, coupled with decadal low auto loan rates, has resulted in the return of a waitlist for car buyers for up to 10 months.
Dealers said the inventory pipeline has been wiped clean with December being a good month. Hence, because of a gap in the demand and supply, the current situation will take several weeks more to ease out.
Passenger vehicles original equipment manufacturers dispatched 18% more vehicles year-on-year in December. At 2,76,500 units, which was the highest December sales in the last decade.
Bharat Earth Movers Limited bagged an order for the supply of High Mobility Vehicles from the ministry of Defence with an approximate value of Rs 758 Cr. These High Mobility vehicles would play a key role in the logistics management of the Indian Army.
Indian Bond Market:
Indian firms raised a record Rs 7.67 lakh cr in local bond sales
Record low-interest rates prompted many large companies to prefer the local market to that overseas. Excess liquidity in the system paved the way for the record high local bond sales in a single calendar year.
|Year||Funds Raised (Rs. in Crs)|
Covid-19: Boris Johnson announces new national lockdown in UK for 6 weeks
UK Prime Minister Boris Johnson on Monday announced a six-week lockdown for England’s 56 million people, including the closure of schools, after a surge in coronavirus cases brought warnings that hospitals could soon face collapse.
Britain, one of the worst-affected countries by the global health crisis, with over 75,000 deaths has been pinning its hopes on the mass vaccination drive. But more than 50,000 positive cases were recorded across Britain every day for the last week.
With the new lockdown, all non-essential shops will be shut across England, along with bars, restaurants, and other hospitality and entertainment venues.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 986.3 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 490.03 crore in the Indian equity market on January 5, as per provisional data available on the NSE.
India’s October factory growth at decade high
India’s factory activity expanded at its fastest pace in over a decade in October as demand and output continued to recover strongly from corona virus-related disruptions. Companies were convinced that the resurgence in sales will be sustained in coming months, as indicated by a strong upturn in input buying amid restocking effort.
|Month||Manufacturing Performance Index|
Also, the GST collection crossed Rs 1 lakh crore mark for the first time since February.
RBI increases trading hours for rupee and bond markets
The Reserve Bank of India has increased trading hours for the rupee and bond markets following easing COVID-19 lockdown restrictions. The trading hours for foreign currency and rupee market including Forex derivatives, government securities, commercial paper and certificates of deposit has been increased by 1.5 hours.
Now, the rupee market will close at 3:30 pm as per Indian Standard Time instead of earlier closing time of 2 pm, after opening at 10 am. The revised timings will be effective from November 9, 2020.
Manipal Hospitals to Pay Rs. 2,100 Cr to acquire Columbia Asia Assets
Company will become India’s second largest chain after Apollo Hospitals after the expected integration by early 2021. Manipal Health will also absorb ₹300 crores of Columbia Asia’s debt, a move that will help the Ranjan Pai-led hospital chain expand in key markets such as the National Capital Region and Kolkata. The acquisition will help Manipal Health add more than 1,300 beds across 11 hospitals in India. The combined entity will have 27 hospitals across 15 cities with more than 7,200 beds, and around 4,000 doctors and more than 10,000 employees.
Corporate bond risk back to pre-Covid levels
The difference between the yield on a corporate bond and a government bond has declined to pre covid levels, this means these bonds have become less risky and are at the same level of risk before the onset of the pandemic COVID-19. These spreads are unlikely to widen further and the corporate bond market may grow by 9.2 to 10 per cent, ICRA said.
Fresh bond issuances are expected to rise to Rs 8-8.2 lakh crores during the fiscal from Rs 6.55 lakh crore during FY2020. With estimated redemption of Rs 4.95 lakh crore, the volume of corporate bonds outstanding is estimated to rise to Rs 35.5-35.8 lakh crore translating to YoY growth of 9.2-10% for FY 2021.
L&T lowest bidder for 88-km viaduct of bullet train project, set to get Rs 7289-cr contract
The contract is worth Rs 7,289 crore and comes close on the heels of the company bagging the Rs 24,985 crore mega tender of designing and constructing a 237-km long viaduct for the project. The financial bids for the design and construction of the 88 km viaduct between Vadodara and Ahmedabad in Gujarat.
Total of three bidders involving seven major Indian infrastructural companies had participated in the competitive bidding, and other bidders were (1) Afcons Infrastructure Limited IRCON International Limited JMC Projects India Ltd- Consortium and (2) NCC Limited Tata Project Ltd.- J. Kumar Infra Projects Ltd. – HSR Consortium.
Equity MFs log Rs 7,200-cr outflow in Sept quarter on profit-booking
Investors pulled out over Rs 7,200 crore from equity-oriented mutual funds during the July-September quarter this year in comparison, such schemes had witnessed a hefty inflow of Rs 23,874 crore in the same quarter last fiscal. There was a net addition of 12.27 lakh folios whereas this year during the same quarter it is just 1.53 lakh. This is because new investors addition in equity funds have dropped and existing investors continue to redeem their investments in the previous quarter
In terms of segment-wise, multi cap was the worst hit with an outflow of Rs 3,334 crore, followed by large-cap (Rs 2,495 crore), value fund (Rs 1,817 crore) and mid-cap (Rs 1,250 crore). On the other hand, focused fund, equity-linked saving schemes (ELSS ) and sectoral category saw inflows of Rs 1,363 crore, Rs 269 crore and Rs 205 crore respectively.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 740.61 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 533.97 crore in the Indian equity market on November 2, as per provisional data available on the NSE.
Emerging markets suck in $17.9 billion during October: IIF
Emerging markets sucked in $17.9 billion of portfolio flows in October, up from $7.5 billion the month before, buoyed by an improving outlook for the global economy and strength of the tech sector, data from Institute of International Finance showed.
Debt accounted for the majority of inflows, mostly to emerging Asia and China, as investors were attracted by a steady pipeline of external issuance. Debt inflows were around $11.7 billion during the month.
Equities were more sensitive to political risk and uncertainty stemming from the upcoming US election. Equity inflows stood at $6.3 billion, of which $4.7 billion were to China.
US Elections and US markets
The Dow and S&P closed higher on Monday with the NASDAQ posting slimmer gains on the eve of the U.S. presidential election, as investors girded for what could be big market swings this week.
The Dow Jones Industrial Average rose by 1.6% to 26,925.05, the S&P 500 gained 1.23%, to 3,310.24 and the NASDAQ Composite gained 0.42%, to 10,957.61.
- WIPRO reported a dollar revenue growth of 3.75 at $ 1,992.4 million against $ 1,921.6 million QoQ. Management expects dollar revenue growth at 1.5-3.5% inQ3. The company announced a buy back of shares worth Rs. 9,500 Crs at Rs. 400 per share.
- Future outlook: The company said that it has signed a definitive agreement to acquire Eximius Design, a leading engineering services company with strong expertise in semiconductor, software and systems design.
- Bajaj Finserv applies for a mutual fund license. Bajaj Finance’s wide branch network and spread into smaller cities can help MF business. The entry of Bajaj Finserv is likely to add to the competitive intensity of the MF industry, which already has 40 fund houses where 57.85 per cent of investor assets is controlled by the top five fund houses, a new entrant such as Bajaj Finserv can gradually gain a solid footing given its wide distribution reach.
- Similar news in the field: NJ India Invest and Samco Securities had received in-principle approval from the market regulator for starting the MF business. Applications from Zerodha Broking and Frontline Capital Services are still being reviewed by SEBI.
- Failed delisting by Vedanta. A large number of unconfirmed bids and some technical glitches in the tender process are likely to have contributed to the failure. For successful delisting of the shares, 134.12 crore shares needed to have been validly tendered for the promoter shareholding to cross the 90% shareholding threshold as per regulations.
- OPEC cuts 2021 oil demand forecast again as coronavirus cases rise. A further weakening of demand could threaten plans by OPEC and allies to taper in 2021 the record oil output cuts they made this year. Demand will rise by 6.54 million barrels per day(bpd) next year to 96.84 million bpd, the Organization of the Petroleum Exporting Countries said in a monthly report. Due to the sluggish demand oil prices continue to go in a backward direction.
- According to the IMF report, India is about to slip below Bangladesh in per capita gross domestic product in 2020 as a result of lockdown impact. The IMF sees India’s per capita GDP (in dollar terms, at current prices) falling to $1,877 in 2020, a decline of 10.3 per cent. For Bangladesh, the corresponding figure is seen growing to $1,888, a rise of 4 per cent. This growth can be attributed due to cheap labour for manufacturing purposes and rapidly rising exports.
- Reliance Industries Ltd (RIL) is eyeing the smart electricity meter market and plans to leverage its Jio business to offer meter data collection, communication cards, telecom and cloud hosting services to electricity distribution companies (discoms). This aims to replace 250 million conventional meters to help raise annual revenues of debt-laden discoms to ₹1.38 trillion.
- India plans to change all electricity meters to prepaid smart meters by 2022. The plan comes at a time when the government is trying to step up its efforts to supply 24×7 power to all. The government believes that the plan will increase distribution substation capacity by 38% by 2022.
- US stock futures are mixed following strong finishes for the Dow, S&P 500 and Nasdaq Composite on Monday. Markets in Europe fell in early trading after a key reading of economic sentiment in Germany declined sharply. Stocks in Asia mostly rose.
- FII net bought shares worth Rs. 832.14 Crores, whereas DII net sold shares worth Rs. 1,674.46 Crores in the Indian equity market on October 13, as per provisional data available on NSE.