| News Announcement |
Impact Analysis |
| Government confirms over Rs.3 trillion of stressed assets resolved |
- This included resolution plans, cases settled and recoveries over the last 2 years since the IBC Act was passed
- The Indian banking industry is fighting with stressed assets in excess of $200 billion due to faulty loans
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| Stock markets may be up but stock brokers are down 70% since 2013 |
- This is largely an outcome of greater institutionalization of broking and extensive use of automation in the last 5 years
- Costs have gone up sharply but margins in broking have come down drastically in the last five years
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| IL&FS may put up 10 of its subsidiaries for sale to recover dues |
- As of now, the board has already called for expression of interest (EOI) for the securities business
- The IL&FS group has been consistently defaulting on loan repayments since the beginning of July this year
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| Trillion dollars US tech companies take deep cuts in price |
- Both Amazon and Apple have lost over 25% of their value from their peak market cap of $1 trillion a few months back
- Microsoft has now emerged as the most valuable company in the world followed closely by Apple, Amazon, and Google
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| OPEC to meet on December 06th in Vienna on future of oil pricing |
- OPEC and Russia have been talking about supply cuts once again to stabilize the prices after the sharp crash
- But the real issue may be the global slowdown and hence the G-20 meet in Buenos Aires may be more critical for oil
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| IIFL Finance looks to raise Rs.5000 crore via nonconvertible debentures |
- IIFL Finance is looking to use the capital to prop up its capital base even as NBFCs are facing a liquidity crunch in markets
- This money will be raised through the public issue route although it may be spread across a couple of tranches
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| The government of India may fall short of its GST targets by nearly Rs.1 trillion |
- At the current run rate, the GST revenues have been falling short in almost all the months compared to estimates
- The worry is that it will have to be made up through other revenue sources and may impact the fiscal deficit estimates
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| Jio Phones may be helping Reliance Jio to growth in non-metro markets |
- Jio’s revenue growth in metros has been just 0.02% as against its non-metro revenue growth of close to 17.87%
- Both Vodafone and Bharti have been witnessing positive growth in metros and negative growth in non-metros
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| Jaitley confirms that the government will not need funds from the RBI |
- There had been a controversy over the government asking RBI to transfer part of its reserves to the government
- Jaitley has clarified that the government does not intend to use the RBI funds for bridging its deficit
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| Bajaj Finance and HCL Tech to enter Sensex from December 24th |
- The two companies will actually replace Wipro and Adani Ports and SEZ, which are currently part of the Sensex
- Normally, the index inclusions lead to aggressive ETF and index fund buying from global investors
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| Indian telcos not too keen to invest money in 5G infrastructure |
- Telecom is currently facing the worst resource crunch after tariffs were sharply beaten down by Jio
- Government plans to roll out 5G by 2022 but telecom companies may be more keen on deleveraging
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| After a 3-year hiatus, the Greek problem may be back to roost |
- Greek banks are currently sitting on bad loans to the tune of nearly 50% and have been surviving on EU support
- Greece already has a deal with EU to delay most of its repayments by 10 years but banks could be the problem
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| Brent Crude fell below the $60/bbl mark during the week |
- The fall in Brent has been sharp from $86/bbl a little over a month ago after Iran sanctions were diluted
- Apart from fears of a global slowdown, there are also fears of a major supply glut of oil in the coming year
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| More than 50% of the ATM machines may be actually unviable in India |
- The warning has been sounded by the Confederation of ATM Industry as costs were going out of hand
- ATMs became prohibitive on the back of regular hardware and software upgrades and cassette swap method adopted
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| Dewan Housing undertakes a re-haul of its complete balance sheet |
- After the run on NBFCs, Dewan has taken urgent steps to reduce the maturity mismatch in its lending books
- It has repaid short-term loans to the tune of Rs.14,000 crore and reduced its dependence on CPs to a negligible level
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| Kumar Birla raises concerns over the viability of the telecom sector |
- Birla expressed concerns over Rs.30,000 crore blocked up In GST reverse charges and the high spectrum charges
- Vodafone had recently reported a quarterly loss of Rs.4,973 crore and is planning to cut down on low-value customers
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| HDFC returns to the Masala Bond market with a $70 million issue |
- HDFC was using this channel after over a year since the government had relaxed taxation on overseas borrowings
- The funds were raised at an all-in cost of 8.75%, which is nearly 200 bps higher than the rate last year
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| Goldman Sachs sees double-digit growth return to emerging markets |
- Strong positive stock market returns may return in 2019 after a tepid 2018 as trade war fears are likely to recede
- Goldman, however, expects most of the Latin American economies and markets to perform better than Asian peers
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| RBI – Finance Ministry meet concluded on a positive note for both sides |
- For the RBI there was not much dilution of powers as the capital support would be subject to committee scrutiny
- However, the RBI has agreed to lend a more liberal hand in PCA lending and ensuring NBFC liquidity support
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| GAIL moves NCLT for rejection of Arcelor’s bid for Essar Steel |
- GAIL is an operational creditor and gets just 5% of its dues while banks will get 80%, which is what GAIL is objecting to
- Arcelor had recently won the bid to take over Essar Steel after it had made a winning bid of Rs.42,000 crore
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| RBI net sells dollars worth $18.7 billion in the first half of fiscal 2018-19 |
- RBI has been consistently selling dollars in the spot and in futures with a view to supporting the INR at around 74/$
- This is one of the reasons, the RBI reserves have fallen from $427 billion to a low of $393 billion this fiscal year
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