SBI’s corp loan book hints at a change in market growth dynamics-
India’s largest lender, State Bank of India, posted a total corporate credit growth of 2.6% in FY21, including loans and debt investments such as bonds and commercial papers; however, if only loans are considered, SBI’s corporate book contracted 3%. Indian banks are realizing that to be able to see any sustainable growth in corporate credit, they also need to invest in debt securities of their borrowers, signaling a shift from their loan-driven growth strategy. The bank’s chairman Dinesh Khara pointed out that working capital utilization for large corporates is even below 70%, and the bank is looking to support them in raising money from the debt market.
After Jio, Airtel plans to add airwaves in eight key markets-
Airtel is set to add airwaves in the 900 MHz band in Gujarat, UP-East, Kerala, Bihar, Odisha and Jharkhand to boost high-speed data capacity, a senior company executive told ET. Both Telcos aim to boost 4G broadband coverage as vast swathes of India’s corporate workforce operate from home amid lockdowns during the Covid second wave. The two operators are leveraging recent spectrum purchases to attract new data subscribers and users from Vodafone Idea.
India: Westbridge Capital-backed Star Health set to file for IPO-
Health insurer Star Health and Allied Insurance Co Ltd, owned by a consortium of investors including Rakesh Jhunjhunwala and Westbridge Capital, is planning a public share sale to raise at least ₹2,000 crores. The initial public offering (IPO) is likely to be a mix of primary and secondary share sales by the company and the investors, he added. “Around 10-12 investment banks are working on this IPO including Kotak Mahindra Capital, Citibank, Credit Suisse and Bank of America,” the second person said. Emails sent to Rakesh Jhunjunwala, Westbridge Capital, and Star Health remained unanswered. The investor consortium, which also includes Madison Capital, had in August 2018 agreed to acquire over 90% stake in Star Health from existing investors Star Health Investments Pvt. Ltd and private equity funds managed by ICICI Venture, Tata Capital and Apis Partners. The consortium had acquired the insurer at a valuation of close to ₹6,000 crores. Star Health has underwritten a gross written premium of ₹6,865 crores during 2019-20 and had a net worth of ₹1,889 crores as on 31 March 2020. It has over 12,800 employees and over 640 branch offices across India.
COVID-19 impact: FPIs net sellers of Indian equities worth Rs. 4,444 cr in May so far-
Foreign investors pulled Rs 4,444 crore from Indian stock markets in May so far in the wake of concerns over the second wave of the COVID-19 pandemic and its likely impact on the Indian economy. FPIs withdrew Rs 6,370 crore from equities but infused Rs 1,926 crore in the debt segment between May 1-21, as per depositories data, taking the overall net outflow to Rs 4,444 crore. The total net outflow from the Indian capital markets was at Rs 9,435 crore in April. FPI outflows are a temporary phenomenon as per Harsh Jain, co-founder and COO at Groww.
The number of covid cases in the country is falling and vaccination rates are slowly climbing; and as the economy reopens, FPI investments will “dramatically climb,” he said.
NBFC: NBFCs stop lending on fear of rising defaults-
Hit with a drop in installment collections due to the Covid-induced lockdowns across the country, non-bank lenders are slowing fresh disbursements and even halting them for unsecured loans.
From an average default rate in collection efficiency at 2-3% in pre-Covid times, non-banking finance companies (NBFCs) are now seeing 6-8% of borrowers missing their payment schedules during the second wave of the pandemic. IIFL Finance has halted fresh disbursements for unsecured loans for micro-businesses & personal loans.
It has also tightened scrutiny and disbursements for secured loans like loans against property, housing loan, and gold loan. According to chief risk officer Sanjeev Srivastav, even in secured advances like loans against property, the company has reduced the loan-to-value ratio to 50-40% from 70% earlier.
US: Manufacturing and Services PMIs reach new series highs in May-
The business activity in the US manufacturing sector continued to expand at a robust pace in May with the IHS Markit’s manufacturing PMI rising to a new series high of 61.5 from 60.5 in April. This reading came in better than the market expectation of 60.2.
Further details of the publication revealed that the Employment Index edged lower to 53.3, the lowest level since December, from 55.7 in April. On a negative note, “input costs rose in May at a pace not seen since July 2008,” the IHS Markit noted.
The US Dollar Index gained traction after this report and was last seen gaining 0.3% on the day at 90.01.
Manufacturing could return to China, as Covid cases spike in India and Vietnam-
Previously, the U.S.-China trade war caused companies to move their supply chains out of China. As a result, countries like Vietnam and India benefited as companies set up shop there. But the situation is changing, and supply chains could pivot back to China as cases spike in India and Vietnam, according to Zhang Zhiwei, the chief economist at Pinpoint Asset Management. “Before the pandemic, we saw factories moving out of China — Samsung, Foxconn these big-name companies — setting up factories in Vietnam, India,” he told CNBC’s “Street Signs Asia” on Monday.
DHFL lenders challenge NCLT order on considering Wadhawan’s offer-
The committee of creditors of DHFL has challenged the National Company Law Tribunal (NCLT) order directing the lenders to consider the offer by the debt-ridden mortgage firm’s erstwhile promoter Kapil Wadhawan.
An appeal challenging the NCLT Mumbai bench’s order has been filed before the National Company Law Appellate Tribunal (NCLAT) and is scheduled for hearing on Tuesday.
The matter will be heard by a vacation bench of NCLAT comprising Acting Chairman Justice A I S Cheema and Member Technical V P Singh.
The petition has been filed by the Union Bank of India on behalf of the Committee of Creditors (CoC) of Dewan Housing Finance Corporation Ltd (DHFCL). According to sources, lenders in their petition have requested the appellate tribunal to stay the NCLT order
DHFL had gone bankrupt with more than Rs 90,000 crore in debt to various lenders, including banks, mutual funds and individual investors who kept fixed deposits with the company.
Centre discusses with stakeholders abnormal rise in edible oil prices, asks for steps to soften rates-
Amid concerns over up to 62 percent spike in domestic edible oil prices, Food Secretary Sudhanshu Pandey on Monday discussed in detail the reasons for the “abnormal rise” in local prices, and asked the states and industry stakeholders to take measures to soften the prices.
Pandey also said in the meeting that suggestions offered by stakeholders would help the government to arrive at “wholesome solutions” to ensure edible oils are available at reasonable rates to consumers.
Pandey further said that the suggestions presented in the meeting would help in arriving at wholesome solutions to address the issue of edible oil prices and achieve growth in the domestic oilseeds sector. Besides Pandey, Union Agriculture and Consumer affairs Secretaries and senior officials from Gujarat, Maharashtra, Madhya Pradesh and Tamil Nadu governments were present. According to the government data, retail prices of palm oil rose by 62.35 percent to Rs 138/kg on Monday from Rs 85/kg in the year-ago period.
Auto Industry & Its Impact On Indian Economy – India became the fourth largest auto market in 2019 displacing Germany with about 3.99 million units sold in passenger & commercial vehicles categories. India is expected to displace Japan as the third-largest auto market by 2021. Our country is also a prominent auto exporter and has strong export growth expectations for the near future.
- Domestic automobile production increased at 2.36% CAGR between FY16-20 with 26.36 million vehicles being manufactured in the country in FY20. Overall, domestic automobile sales increased at 1.29% CAGR between FY16-FY20 with 21.55 million vehicles being sold in FY20.
- Passenger vehicle (PV) sales stood at 3,10,294 units in October 2020, compared with 2,71,737 units in October 2019, registering a 14.19% growth. As per the Federation of Automobile Dealers Associations (FADA), PV sales in November 2020 stood at 2,91,001 units, compared with 2,79,365 units in November 2019, registering a 4.17% growth.
- EV sales, excluding E-rickshaws, in India witnessed a growth of 20% and reached 1.56 lakh units in FY20 driven by two-wheelers.
- The industry has attracted Foreign Direct Investment (FDI) worth US$ 24.53 billion between April 2000 and June 2020, according to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT).
- In November 2020, Mercedes Benz partnered with the State Bank of India to provide attractive interest rates, while expanding the customer base by reaching out to potential HNI customers of the bank.
- Hyundai Motor India invested ~Rs. 3,500 crore (US$ 500 million) in FY20, with an eye to gain the market share. This investment is a part of Rs. 7,000 crore (US$ 993 million) commitment made by the company to the Tamil Nadu government in 2019
- In October 2020, Kinetic Green, an electric vehicles manufacturer, announced plan to set up a manufacturing facility for electric golf carts besides a battery swapping unit in Andhra Pradesh. The two projects involving setting up a manufacturing facility for electric golf carts and a battery swapping unit will entail an investment of Rs. 1,750 crore (US$ 236.27 million).
- In October 2020, Japan Bank for International Cooperation (JBIC) agreed to provide US$ 1 billion (Rs. 7,400 crore) to SBI (State Bank of India) for funding the manufacturing and sales business of suppliers and dealers of Japanese automobile manufacturers and providing auto loans for the purchase of Japanese automobiles in India.
- MG Motor India planned to launch MG ZS EV electric SUV in early 2020 and have plans to launch affordable EV in the next 3-4 years.
- The coronavirus pandemic has hit the Indian auto industry hard.
- Commercial & Passenger Vehicle Sales, Commercial Vehicle sales have plummeted around 90% for all manufacturers. Therefore, the segment was under tremendous pressure due to the economic slowdown, Liquidity crunch.
|Company||March Sales Growth|
|TATA Motors||90% ( YoY)|
|Ashok Leyland||90% (YoY)|
|Volvo Eicher||82.7% (YoY)|
- Two Wheelers & Three Wheels Sales- 42% of down fall in sales, companies like Hero Moto & Eicher Motors. M&M Posted a decline of 93.9% & TVS motor with 25.5% fall.
- Tractor Sales & Exports- Again Fall in the tractor sale company like M&M posted 31% fall & Escorts with 54.3%.
- Recovery will be challenging for the auto industry. BS VI implementation is a challenge as the cost of ownership is expected to rise.
- The Government of India encourages foreign investment in the automobile sector and has allowed 100% foreign direct investment (FDI) under the automatic route.
- Under Union Budget 2019-20, the Government announced to provide additional income tax deduction of Rs. 1.5 lakh (US$ 2,146) on the interest paid on the loans taken to purchase EVs.
- Vehicle Scrappage Policy Announced- Old cars to be removed.
- Atma Nirbhar Bharat -Special economic & Comprehensive package of INR 20 Lakh Cr towards promoting manufacturing in India.
- Production – Linked Incentive (PLI)- Automobile sector have a financial outlay of INR 51,000 Cr under the Atma Nirbhar Bharat Package.
Future of Automobile Industry in India
- Incentive-Based Scrappage policy will support sales growth in the long run & more importantly reduce the age of vehicles on India’s road, thereby reducing fuel import and air pollution.
- In 2025, the India Electric Vehicle market will be 50,000 Cr approx. $7 billion, therefore generating a number of jobs.
1. Petrol Diesel Price Rise-
India is the World’s Third- largest oil market and depends heavily on crude oil. India consumes nearly 211.6 million tonnes of oil every year. India does not have enough reserves. India depends on imports with some of the blame on the Organisation of petroleum exporting countries, and they have cut supplies but the demand is rising. Owing to this, prices have gone up. People in India are paying more than 100 rupees a litre for petrol and this rise in fuel prices is affecting every Indian Household.
2. Government’s Taxes-
It’s important to understand fuel pricing in India and the global price is currently 60 dollars per barrel somewhere around 28 rupees per litre.
Indians are paying 100 rupees because of taxes. India has the highest tax on fuel 260% on the base price of petrol & 256% for diesel, according to CARE rating.
3. Govt committed to bring natural gas under GST regime: PM Modi-
India is committed to bringing natural gas into the Goods and Services Tax (GST) regime to make prices cheaper and uniform across the country. PM Narendra Modi said the government was spending ₹7.5 lakh crore over 5 years to build oil and gas infrastructure. India will generate 40% of all its energy from renewable sources by 2030.
Natural gas is currently outside the ambit of GST, and existing legacy taxes – central excise duty, state VAT, central sales tax — continue to be applicable on the fuel. Non-inclusion of natural gas under the GST regime is having an adverse impact on its prices due to the stranding of taxes in the hands of gas producers/suppliers and is also impacting natural gas-based industries due to the stranding of legacy taxes paid on it,” the Federation of Indian Petroleum Industry.
4. Industries affected by high oil prices-
- Consumer Discretionary
5. OPEC+ is due to meet on 4th March 2021
The Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, is due to meet on 4th March 2021, group will discuss a modest easing of oil supply curbs from April given a recovery in prices.
- Sundaram AMC to take over Principal Mutual Fund in India:
Sundaram Asset Management Company Limited has announced the purchase of the asset management businesses of Principal Asset Management Pvt. Ltd. Sundaram will acquire the schemes managed by Principal Asset Management and acquire 100% of the share capital of Principal AMC. Sundaram Mutual has over Rs 40,000 crores in assets under management, the majority of which is in equity-oriented schemes. Principal Asset Management on the other has assets under management of Rs 7,447 crore as of December 31, 2020, with about 90% of this in equity-oriented schemes.
- Indians join the game on GameStop:
Market estimates peg the Indian retail bet on the stock of GameStop — previously a little-known US video game retail chain — at Rs 60-65 crores since Monday. All Indian retail plays are like those that started when groups of American small investors began punting against hedge funds’ bet that GameStop stock will fall. Dubbed the ‘Rob the Wall Street Movement,’ small bets fuelling the GameStop stock’s spectacular rise have come from around the world, with the stock price rising 700% to $347.5.
- Bharti Airtel Says its network is now 5G ready:
Bharti Airtel on Thursday said its network is now 5G ready and successfully demonstrating live 5G service over a commercial network in Hyderabad. He added that the company will be able to switch on 5G at any point using the existing spectrum like they have done in Hyderabad once the government approvals are received. However, they said they will get the true power of 5G when they get the spectrum in the mid-band, at which point in a matter of months they can actually roll out and make sure that 5G is available in as many parts of India as relevant.
- Swiggy Auditor KPMG points out discrepancy in accounting:
KPMG, one of the world’s biggest audit firms, has pointed out discrepancies in food delivery firm Swiggy’s accounting practices in its audit report. It has given what is known as a ‘qualified opinion’ to Swiggy. Swiggy’s investors, including Prosus Ventures (Naspers), Tencent, Coatue Management, and others hold preference shares, which have a buyback right on them. This right is meant to protect investors when the company shuts down. However, these investors still do have a buyback right, which is why they need to be classified by law as a liability from the company’s perspective- which Swiggy did not do.
- IRFC makes tepid debut; lists at 4% discount over issue price
Shares of Indian Railway Finance Corporation (IRFC) made a tepid listing on Friday. The stock was listed at ₹24.90, a 4.2% discount over its share price of ₹26.
Why to keep for long term- IRFC IPO
1) IRFC has a unique business model & relies heavily on Indian railways for profits.
2) As long as the agreement between IRFC & MoR keeps renewing, the company runs a risk-free business despite having high long-term debt.
3) It is the first public sector NBFC to get listed.
4) With the indian railways looking to expand & reach more people, infrastructure requirements will mean revenue for IRFC.
5) However, if the Union Government or MoR changes its policies regarding IRFC, then its profitability can get affected.
- Airtel adds more subscribers than Jio for 4th straight month in Nov, Vi loses more:
Airtel gained 4.37 million wireless subscribers against Jio’s 1.93 million while struggling Vi lost 2.89 million users in November. Trai’s mobile user data showed Airtel’s November user base swelled to 334.65 million while Jio’s rose to 408.29 million. Loss-making Vi’s user base, though, fell further to 289.94 million. Jio has recently attributed its low net 4G user additions and higher churn in the December quarter to the continuing impact of Covid-19 and “malicious and motivated campaigns” against the Reliance group in some areas, especially in the aftermath of the ongoing farmers’ agitation in Punjab and Haryana.
- Defence Ministry acquires land in Arunachal Pradesh’s border village-
Amid the border tension with China, the defense ministry has moved to acquire strategic land 30 km from the line of actual control (LAC) in Arunachal Pradesh to establish a military garrison. The land parcel, measuring 14.128 acres, is located in the village of Yorni II in West Siang district. The rural development ministry has notified the defense ministry as “appropriate authority” under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 for the acquisition of the land in the village, which has a population of about 150. As per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013, any land can be acquired for defense purposes, railways, and communication without the requirement of a gram sabha meeting.
- RBL Bank Q3 results: Net profit rises 110% to ₹147 cr, asset quality improves-
Private sector RBL Bank on Thursday posted a 110% rise in its net profit year-on-year at ₹147.1 crores in the quarter ended December 31, 2020. In the corresponding quarter, the Mumbai-headquartered bank posted a net profit of ₹6,995 crores. Its total revenue grew by 6% year-on-year to ₹1,488 crores as against ₹1,388 crores a year ago. The net interest income fell 2% to ₹932 crore. RBL Bank said “Our operating performance this quarter has been quite satisfactory. Our capital and liquidity levels continue to be robust. It has been heartening to see the growth in the deposit franchise and we continue to grow granular deposits and reducing our funding and operating costs this financial year, making us more competitive as an institution. This should stand us in good stead particularly as we have a couple of market-leading businesses, where we see growth revival happening. Having said that, we are monitoring the recovery in the economy and are cautiously optimistic.”
- Shriram Transport Q3 profit down 17% on additional pandemic provision-:
17 percent decline in net profit at Rs 727.72 crore for December quarter 2020-21 as it made additional provisions related to the COVID-19 pandemic. The key net interest income rose to Rs 2,148.22 crore from Rs 2,113.75 crore in the same period of the previous year. Gross NPA and net NPA as of December 2020 stood at 5.33 percent and 3.22 percent, respectively, as against 8.71 percent and 6.09 percent by the same period a year ago. However, such accounts have been classified as stage 3 and provisioned accordingly. Had the company classified these borrower accounts as NPA after August 2020, the gross NPA and net NPA ratio would have been 7.11 percent and 4.31 percent.
- Sudarshan Chem Consolidated December 2020 Net Sales at Rs 506.38 crore, up 19.56% YoY:
Net Sales at Rs 506.38 crore in December 2020 up 19.56% from Rs. 423.53 crore in December 2019. Quarterly Net Profit at Rs. 39.16 crore in December 2020 up 38.31% from Rs. 28.31 crore in December 2019. EBITDA stands at Rs. 82.19 crore in December 2020 up 27.78% from Rs. 64.32 crore in December 2019. Sudarshan Chem EPS has increased to Rs. 5.70 in December 2020 from Rs. 4.10 in December 2019. Sudarshan Chem shares closed at 491.45 on January 28, 2021 (NSE) and have given 27.58% returns over the last 6 months and 3.44% over the last 12 months.
- UK bans direct flights from UAE, shutting world’s busiest international route:
Britain is banning direct passenger flights to and from the United Arab Emirates from Friday, shutting down the world’s busiest international airline route from Dubai to London. Britain said it was adding the United Arab Emirates, Burundi, and Rwanda to its coronavirus travel ban list because of worries over the spread of a more contagious and potentially vaccine-resistant COVID-19 variant first identified in South Africa.
Govt announced the PLI scheme, finance minister Nirmala Sitharaman addresses the media.
In a momentous push to make India a manufacturing hub, the Modi govt has approved the Production-Linked Incentive (PLI) scheme to 10 more key sectors after mobile, electronic components, and pharma sectors. The total financial outlay stands at about Rs 2 lakh crore.#AatmaNirbharBharat
GDP to contract 8.6% in Q2; India has entered recession for the first time: RBI official
The pandemic-induced lockdowns had led to a steep contraction of 23.9 percent in the GDP for the April-June quarter as compared to the same period a year ago. The GDP is likely to contract by 8.6 percent for the July-September period, which means India will enter into a recession for the first time in history in the first half of this fiscal with two successive quarters of negative growth due to the COVID-19 pandemic.
Tata Capital, Honda Motorcycle & Scooter India announce festive two-wheeler loan offerings
Tata Capital and Honda Motorcycle & Scooter India (HMSI) on Thursday announced festive two-wheeler loan offerings for the latter’s customers, including 100 percent finance of on-road price. The benefits of Tata Capital’s festive offerings for HMSI’s eligible customers include loan up to 100 percent of the on-road price of the two-wheeler, customized loan options, instant approval on loans with minimum documentation and flexible option to choose the tenure up to 36 months, the two companies said in a joint statement. These offers can be availed till November 30, 2020
Tata Steel to lift 45,000 tonnes metal from Hind Zinc in Atmanirbhar move
Tata Steel, the country’s oldest producer, has signed a Memorandum of Understanding to procure its complete domestic zinc requirements from Hindustan Zinc, India’s largest and the world’s fifth-largest zinc producer. Under this MoU, Hindustan Zinc will cater to both Tata Steel & Tata Steel BSL (Earlier known as Bhushan Steel Limited, now a subsidiary of Tata Steel.
Equity funds see 4th straight month of outflows; multi-cap funds suffer the most
Equity mutual fund schemes noticed a fourth straight month of outflows in October as buyers continued to guide earnings as an alternative of staying invested, as the market inched in the direction of their report excessive degree.
In the month of October, buyers withdrew a web Rs 2,724.95 crore, greater than earlier month’s Rs 734.40 crore from equity-oriented funds, due to selloff in multi-cap, large-cap, and contra funds.
Equity mutual funds noticed a total inflow of Rs 17,514.02 crore and outflow of Rs 20,238.98 crore. Barring sectoral and thematic funds, all schemes noticed web outflows throughout the month. The complete mutual fund AUM as of October 31 rose to highest ever at Rs 28.22 lakh crore, due to web inflows of Rs 98,575.96 crore and market-to-market good points.
Prestige group to sell commercial projects to Blackstone for Rs 9,160cr
US-based Blackstone has invested around USD 8 billion in Indian real estate The deal is expected to be closed in early December after all the necessary approvals including that of the Competition Commission of India (CCI).
Realty firm Prestige Estates Projects Ltd on Monday said it has agreed to sell a large portfolio of office, retail and hotel properties to global investment firm Blackstone for an enterprise value of Rs 9,160 crore.
The deal will be completed through a combination of primary investments, secondary investments, business transfers, asset transfers, joint ventures, de-mergers, and slump sales. US-based Blackstone has invested around USD 8 billion in Indian real estate. It has sponsored two REIT (real estate investment trust) launched and listed so far in India — Embassy Office Parks REIT and Mind-space Business Park REIT.
TCS to acquire 100% shares of Post-bank Systems from Deutsche Bank
India’s largest IT services firm Tata Consultancy Services (TCS) will acquire 100 percent shares of Post-bank Systems AG (PBS) from Deutsche Bank AG. PBS has been the internal IT provider for Post-bank AG, a subsidiary of Deutsche Bank, catering to the German retail banking market. PBS has approximately 1,500 employees across nine locations in Germany.
The transaction will see the employees of PBS become a part of the Mumbai-based company. The deal will further add to the TCS’ scale in Germany and strengthen its growth outlook.
Wellness Forever raises Rs 130 cr from UAE’s Allana group, Adar Poonawalla, and others
Wellness Forever will utilize the funds for store expansion, strengthening its highly profitable private label brands under its subsidiary Amore, and invest more in e-commerce. Pharmacy retail chain Wellness Forever in Novem raised Rs 130 crore from UAE-based Allana Group, Adar Poonawalla, and other existing investors, including banker Rajiv Dadlani and venture capitalist Sajid Fazalbhoy.
The company plans to add over 150 more stores in the next year and 1,000 retail outlets in the next three years. The company is on track to achieve sales of around Rs 4,000 crore in the next 3-4 years with a 1,000 store count across the country.
Bitcoin Enters New Bullish Cycle, Aiming for New All-Time Highs
A significant number of buy orders were filled around this support level. The spike in demand helped propel prices to $11,736, representing a 13.24% upswing within ten days. Some market participants appear to have taken advantage of the rising price action to realize profits, which caused prices to retreat 4.56%.
If the buying pressure seen in October spills over November, Bitcoin would likely take aim at the $16,500 threshold. Moving past this psychological resistance barrier may ignite FOMO among market participants sending prices to $20,000 or higher. As speculation mounts around ETH 2.0, prices will likely surge towards $500 or $800.
China halts $37bn Ant Group IPO, citing ‘major issues’
China has suspended the $37bn listing of Ant Group, which had been set to become the world’s largest IPO, one day after regulators had grilled Jack Ma, who founded the company. The Shanghai Stock Exchange said in a statement that Mr. Ma, who also founded Alibaba, had been called in for “supervisory interviews”. There had been “other major issues”, including changes in “the financial technology regulatory environment”.
Cracker dealers stare at Rs 2,000 crore loss, writes to PM
The National Green Tribunal’s ban on the sale and use of firecrackers could deal a Rs 2,000 crore blow to distributors across the country.
1- Oil falls as possible OPEC+ supply boost, COVID-19 spike weigh on sentiment
A technical committee of the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers, a group known as OPEC+, ended a meeting on Thursday expressing concerns about rising oil supply as social restrictions to curb the spread of COVID-19 limit fuel usage. OPEC+ is set to reduce its current supply cuts of 7.7 million barrels per day (bpd) by 2 million bpd in January even as OPEC Secretary General Mohammed Barkindo admits fuel demand is looking “anaemic.”
2- The Equitas Small Finance: Equitas Mulls Merger With NBFC To Pare Promoter Stake
The Equitas Small Finance has begun exploring the possibility of a merger with a non-bank lender as a follow-up measure to pare promoters’ holding to 40% as mandated by the Reserve Bank of India. The bank’s initial public offer (IPO), which will be open for subscription on October 20, would help it to reduce promoter holding to about 82% from 95%. As per the licensing agreement with RBI, the bank needs to pare it further to 40% by September 2021.
3- IT Companies Save Over 70% in Travel Cost In Sept quarter.
Increased digital adoption and deal wins has helped the performance of the IT industry to bounce back in the July-September quarter. What has also benefited the margins of the top tier IT giants is the reduction of travel expenses of more than 70% year-on-year.
4-India bans import of ACs with refrigerants, frees export of all alcohol-based hand sanitisers.
India on Thursday prohibited the imports of air conditioners-both split and window- with refrigerants. Their imports were free till now.”Import policy of air conditioners with refrigerants…is amended from ‘free’ to ‘prohibited’,” the Directorate General of Foreign Trade (DGFT) said in a notification.India imported ACs worth $158.87 million in the April-July period with more than 97% ($154.85 million) coming in from China and Thailand. While India has already restricted the imports of tyres, some televisions and toys through licenses and quality control orders to check unnecessary imports from China, Thursday’s order is a blanket ban on import of ACs with refrigerants.India’s imports from China were $16.6 billion in the April-July period while exports were $7.27 billion.
5- Indian companies may get a nod to list in 7 countries.
Paving the way for a global listing by the likes of Reliance Jio, LIC and Indian start-ups, the government is set to notify seven countries and the Gujarat International Finance-Tec (GIFT) City where these companies can go public, while easing several norms to facilitate the process. the US, the UK and Japan. While the list will be expanded later, Hong Kong is a notable exclusion and comes in the midst of India’s border tension with China. Several companies have opted to list in Hong Kong, which is a financial hub in the region.
6- Gold prices today drop, down ₹5,500 from record highs; silver rates slip.
Gold and silver prices in India struggled for direction amid muted global rates. On MCX, December gold futures were down ₹50,653 per 10 gram while silver futures edged slightly lower to ₹61,512 per kg. Gold and silver prices in India have been volatile this week. In the previous session, gold prices edged up 0.3% while silver rates fell 0.3%. In August gold had hit a record high of ₹56,200 per 10 gram while silver had inched closer to ₹80,000 per kg.
7- PFRDA likely to finalise guaranteed return product under NPS by fiscal end
Pension Fund Regulatory and Development Authority (PFRDA) on Thursday said it expects to finalise the assured return product under the National Pension System (NPS) by the end of this fiscal.
NPS is a market linked insurance product and it has been generating returns close to 10 per cent in the last ten years. whatever guaranteed products were there in the insurance sector, they were slowly withdrawn as it was felt that they were not feasible for a long period for the organisations. Even market regulator Sebi does not encourage any guaranteed products.
8- Amazon, Flipkart, Myntra all set to roll out festive season sales; to focus on fashion.
With the festive season around the corner, e-commerce websites such as Amazon, Flipkart and Myntra have announced their much-awaited annual sales. While Flipkart’s Big Billion Days and Myntra’s Big Fashion Festival start on October 16, Amazon is expected to reveal the dates for its Great Indian Festival sale soon.
According to the Retailers Association of India, non-essential retail sales plunged 80 percent in May after seeing a 50 percent erosion in March. Myntra is expecting to double sales growth from the previous year as most Indians will be shopping for fashion online during this festive season. Tier 2 and 3 cities and towns will be a key focus area for the platform this time around. While Flipkart and Amazon have not revealed their sales targets for this year, they generated Rs 19,000 crore in festive sales last year.
9- Russia grants regulatory approval to the second Covid-19 vaccine.
Russia has granted regulatory approval to a second Covid-19 vaccine, a delighted President Vladimir Putin announced at a government meeting on Wednesday. Putin congratulated scientists for approving the new jab, which was developed by Siberia’s Vector Institute and completed early-stage human trials last month.