| FPI flows into debt in 2017 was to the tune of Rs.150,000 crore |
- The inflows into debt more than compensated for the tepid flows into equities on the back of valuation concerns
- Debt flows continued to be elevated on the back of positive rate differential in India with strong rupee
|
| TCS announced good growth in digital but tepid growth in BFSI |
- The net profits actually saw a 3% fall during the quarter as revenues for the quarter were up by 3.9%
- Despite operating margins at 25.2%, cost pressures and tepid growth in BFSI took its toll on quarterly numbers
|
| IndusInd Bank continued its healthy 25% profit growth in the quarter |
- The company grew profits on the back of healthy growth in loan book, especially auto loans, and the NII
- Gross NPAs were marginally up by 8 basis points at 1.16% but that is the spillage expected across most private banks
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| Government to ease MAT requirements for companies under insolvency |
- The IT department will allow brought forward losses and accumulated depreciation to be set off
- This will be a boost for buyers of assets as earlier the depreciation benefits were excluded
|
| Patanjali to make a massive online foray to push its FMCG products |
- The company has already touched Rs.10,500 crore annual sales and likely to again double sales from here
- Patanjali has already tied up with marquee online names like Flipkart, Paytm, Big Basket, Grofers and Amazon India
|
| FPIs infused nearly $217 billion into emerging markets in 2017 |
- This EM trade was largely a return to growth in most emerging markets supported by higher commodity prices
- Nearly 75% of these flows came into debt which was supported by higher net interest rates and a weak dollar
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| PIMCO warns about the end of the 30-year bull market in bonds |
- Bonds could be negatively impacted by rising yields as central banks adopt a more hawkish approach to rates
- The return to higher growth across the developed markets is likely to create a fresh appetite for equities over bonds
|
| GVK has signed a definitive agreement to develop the Navi Mumbai airport |
- The news came as a big sentimental boost for GVK which is already mired under a huge mountain of debt
- The stake will be managed by MIAL; the GVK subsidiary that currently manages the Mumbai airport.
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| The government took some huge steps on the FDI relaxation front |
- The government officially permitted 100% FDI through the automatic route in case of single-brand retail
- Airlines and construction will also be allowed 49% FDI under automatic route, in a big boost to Air India divestment
|
| The government betters last year’s direct tax collections by 18.2% |
- This could be largely attributed to the low base effect as 2016 3rd quarter was a demonetization quarter
- However, the government appears to have made progress in broadening the tax base and using digital to plug loopholes
|
| Gold gains over $100/oz in the aftermath of the Fed rate hike |
- There appears to be a lot of safe haven money that is flowing into gold as market uncertainty looks imminent
- Gold has also benefited from the sharp volatility in Bitcoins, which was seen as a non-fiat alternative to gold
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| Prime Minister meets up with over 40 leading Indian economists |
- The focus was more on reviving growth and addressing the problem of weak agricultural growth in GDP
- It also indicates that the budget 2018 may focus largely on enhancing rural purchasing power
|
| Brent Crude finally crossed a 3-year high of $70/bbl this week |
- The rise in Brent crude has been supported by OPEC supply cuts and rising oil demand across the world
- US shale oil inventories, which had put a cap on oil prices, have also been consistently dwindling in the last few weeks
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| Knight Frank has reported a 5-10% fall in Mumbai residential prices |
- This sharp fall has been led by builders dropping prices to clear their inventories post RERA implementation
- This has forced most of the existing developers to focus on completing ongoing projects rather than focus on new ones
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| Potential bidders emerge for Bhushan Steel and Electrosteel |
- Both these companies, currently referred to NCLT, have seen interest from other steel producers
- Steel demand is likely to expand 3-fold in India by 2030 and this offers a good inorganic way to expand capacity
|
| SBI plans to raise Rs.20,000 crore by way of bonds for low cost housing |
- SBI has identified low cost housing as a big opportunity after the government accorded it infrastructure status
- This fund raising also helps SBI to meet its capital needs ahead of the Basel requirements by March 2019
|
| Reliance Jio could turn into profits in the December quarter |
- If it happens then it could be a big boost for the RIL group within just 18 months of the launch
- Jio had reported operating profits last quarter and has already triggered a major consolidation in the industry
|
| SEBI has imposed a ban on Price Waterhouse from audit for 2 years |
- This is the first time that SEBI has come down heavily on an auditor for obvious lapses in the Satyam case
- SEBI has also passed a disgorgement order of Rs.13 crore against PW for losses caused by its actions
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| Aadhar likely to offer 16-digit virtual id to overcome privacy concerns |
- This 16 digit virtual id will be issued effective from March 2018 and will be one more layer of security in Aadhar
- The 16-digit Aadhar id will be mapped to the Aadhar number and it can be changed by the holder of the Aadhar card
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| SAT strikes down IRDAI order to force Sahara Life merger with ICICI Pru |
- SAT has observed that this decision issued ex-parte violated the principle of natural justice
- Now IRDA has been asked to give Sahara an opportunity to be heard and also respond to the order
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| Fed’s Dudley fears that US tax cuts could heat the US economy |
- This appears to be a clear indication that the Fed could be aggressive in favour of 4 rate hikes instead of 3 this year
- Tax cuts by the Trump government are expected to spur a spending boom across the US and push growth
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