| Major News Item | Impact Analysis |
| Ø SEBI to permit REITs and INVITs to raise money through bonds | Ø This move is likely to get more corporates and investors interested in these vehicles
Ø That will encourage better monetization of real estate and infrastructure projects in future
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| Ø Government to raise Rs.15,000 crore through sale of non-life insurers | Ø To begin with, the government will divest part of its stake in profit making GIC RE and New India Assurance
Ø This will substantially aid the government in getting closer to its Rs.72,500 crore divestment target for the fiscal year
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| Ø RBI likely to maintain status quo in rates in October policy | Ø With inflation moving up by 190 basis points in 2 months, the RBI may wait for food inflation to stabilize
Ø The government is also worried about the rise in price of crude which has a strong downstream impact on prices
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| Ø Tata Sons approves conversion into a private limited company | Ø The vote on 21st Sep was a big victory for Ratan Tata as now Mistry will not able to sell his stake in the company
Ø While Mistry has an 18.4% stake in Tata Sons, it could be just about 2.82% if preference shares are also considered
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| Ø Small victory for Mistry as NCLAT allows filing of minority interest petition | Ø Mistry had sought minority interest petition filing against Tatas post his removal from chairmanship of Tata Sons
Ø However, this may not be too relevant if preference shares have voting rights after 2 years of skipped dividends
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| Ø India’s forex reserves finally cross the $400 billion mark | Ø Even as FII equity flows have been tepid, there are strong FII debt flows and FDI flows at record levels
Ø The only worry could be that the trade deficit for the year will nearly be $150 billion, or 40% of the forex chest
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| Ø Fed maintains status quo on rates but talks hawkish language | Ø The Fed kept rates at the 1-1.25% range but hinted at another possible rate hike in December Fed meet
Ø The Fed has also spoken about commencing the bond taper in October at the rate of $10 billion of taper per month
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| Ø Exporters request Hasmukh Adhia for urgent tweaking of GST norms | Ø Exporters have got into a liquidity bind after nearly Rs.25,000 crore worth of export credits were stuck in GST
Ø The exporters are expecting exports to the tune of nearly $10 billion impacted due to GST delays
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| Ø TRAI sharply cuts telecom IUC charges and will move to zero IUC by 2020 | Ø This move is likely to substantially benefit Reliance Jio, which is the latest entrant in the telecom space
Ø Bharti is the worst affected due to its vast rural network and the COAI will be moving the court on the issue
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| Ø Jaitley promises drastic fiscal measures to revive GDP growth | Ø This was the first admission of a slowdown by the government after GDP growth for Q1 came in lower at 5.7%
Ø Jaitley has indicated at a mix of fiscal and monetary measures including public spending and monetary stimulus |
| Ø Further dilution of promoter holding in ICICI Prudential Life likely | Ø Exactly 1 year after the OFS, ICICI Bank and Prudential are looking to further dilute their stake in ICICI Prudential Life
Ø This move will bring the public holding in ICICI Prudential Life to 25% in line with the SEBI public holding mandate
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| Ø India imposes import duty on radial tyres imported from China | Ø Chinese radials had cornered 25% market share due to their artificially deflated manufacturing costs
Ø This import duty will give a major relief to Indian radial manufacturers like JK Tyres and Apollo Tyres
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| Ø Tata Steel Europe to form a JV with Thyssen Krupp of Germany | Ø This move will create the second largest steel producer in the whole of Europe after Arcelor Mittal
Ø The merger JV was stuck due to the British Pension system issue which has since been amicably resolved
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| Ø Brokers may be allowed to carry on equity and commodity jointly | Ø This was a long-standingdemand of the broking community for greater integration of the value chain
Ø It is not very clear if cross-margining will be permitted across accounts or whether Chinese walls will be maintained
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| Ø Wall Street retreated over the week end on Fed hawkishness | Ø Wall Street was weak due to the sudden hawkishness shown by the Fed after inflation came in at 1.9%
Ø Higher rates will mean higher yields on debt and that will make equities relatively less attractive
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| Ø India may stretch its fiscal deficit targets for the year | Ø To address the slowdown in the economy, the government intends to spend nearly $7 billion in public spending
Ø This may result in the fiscal deficit going up from 3.2% to 3.7% but that will still be within the 50-bps range approved
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| Ø S&P has cut the sovereign credit rating of China for first time since 1999 | Ø This downgrade followed the consistent rise in debt levels in China both at the government level and retail level
Ø China also suffers from an overhang of a huge shadow banking with real estate being largely financed by shadow banks
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| Ø North Korea hints at another H-Bomb test in the Pacific Ocean | Ø This has raised the panic buttons in South Korea and Japan as these actions are increasingly peace in the Pacific
Ø At the UN, Donald Trump has already warned N Korea of dire consequences. Markets have corrected sharply on Friday
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| Ø Rupee touched a 4-month low and crossed the psychological 65-mark | Ø The weakness in rupee was driven by N Korea tensions and consistent selling by FIIs in equities
Ø Despite this weakness in the rupee, it is still overpriced in REER terms, which is detrimental to exporters
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| Ø Power projects worth 32,000 MW in the lurch due to policy delays | Ø The government is yet to release funds to the tune of Rs.6500 crore under the Mega Power Policy
Ø The MPP had identified 25 power projects in 2014 entitled to earn additional benefits, but that is yet to materialize
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| Ø Ajay Singh of Spice Jet picks up a 40% stake in NDTV | Ø This will make the Roy family a minority shareholder in the company with a stake of just 20%
Ø The company has been making huge losses annually and is also currently facing legal hurdles |
