| News Announcement |
Impact Analysis |
| RBI holds repo rates at 5.15% largely along expected lines |
- High inflation at 7.35% forced the RBI to maintain status quo on repo rates and therefore on reverse repo and MSF
- However, the stance of the monetary policy has been kept at “Accommodative” hinting at a dovish monetary stance
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| CRR exemptions extended to loans given to autos, realty and MSMEs |
- Banks will be allowed to deduct incremental loans to these sectors for the calculation of NDTL for CRR purposes
- The idea is to reduce the idling cost of CRR funds and give an incentive to banks to lend to these sectors
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| RBI proposes to launch a digital payment index (DPI) this year |
- This index will track the spread and flow of digital payments in India and provide a reliable and veritable benchmark
- To boost digital payments, the government has also decided to extent CTS facility pan-India by September this year
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| RBI gives a boost to commercial realty sector via loan extension |
- Now loans to commercial realty cannot the classified as bad loans if the reason for default is genuine cash problem
- This will stall the cascading effect of bad ratings having an impact on fund raising and on cash flows of the company
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| Tata Steel records a loss of Rs.1229 crore in the December quarter |
- The loss was largely driven by a sharp rise in provisioning for impairment of the European operations of the company
- In addition, the top line was also under pressure due to weakening demand from the Chinese markets
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| Delhi goes to polls on 08th February to decide the next government |
- Kejriwal has been fighting for a thumping return while the BJP is trying hard to recover the state they lost 20 years ago
- During the last 2015 elections, the AAP party under Kejriwal had won more than 92% of the seats in Delhi
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| Coronavirus may have subsided but is far from gone; Chinese authorities |
- There was some respite to global markets after news that a cure for the virus had been found; despite WHO advisory
- Chinese authorities have conceded that the impact could be deeper than SARS in 2003 due to the pivotal role of China
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| Yes Bank gets shareholder nod to raise Rs.10,000 crore from the market |
- This is almost becoming absurd after the banks had committed to raise money, but failed, in the past too
- Yes Bank needs to urgently raise equity money as its core capital has gotten close to the statutory 8% mark
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| Oil continues to be weak after Russia refuses to commit on supply cuts |
- The OPEC, not being the swing producer any longer, needs the support of Russia to make a dent on global oil supply
- However, Russia has a major reliance on oil and gas revenues and hence wants to go slow on further supply cuts
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| Byju’s raises a sum of $200 million from General Atlantic Partners |
- Online tuition courses offered by Byju’s have become a major hit among the venture capital and P/E crowd
- The latest round of funding values Byju’s at closer to $8.2 billion making it among the expensive Indian unicorns
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| FM agrees to review LTCG tax on equities after markets stabilize |
- FM was worried that there was too much of a hype created by the non abolition of the LTCG tax on equities
- Since the LTCT tax was only introduced in 2018, FM wants to wait for a stable year before taking a final call
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| PFRDA doubles net worth of pension fund managers |
- The net worth requirement of pension fund managers has been raised from Rs.25 crore to Rs.50 crore
- This shift will ensure that only serious players will enter the pension fund management business
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| Indian rupee slips by 22 bps to Rs.71.40 during the week |
- The rupee weakness has been on fears of a sell-off in debt by the foreign portfolio investors
- The dollar has also been showing some strength in the last few days and that is adding to the rupee weakness
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| GST Compensation Fund to fall short of target by Rs.25,000 crore |
- ICRA has estimated that the losses to the state between Oct-19 and Jan 20 would be close to Rs.70,000 crore
- Based on current run rate the shortage will be hard to make up and the government has to either delay or bridge the gap
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| Fitch expects the RBI to cut rates by up to 40 bps in fiscal 2020-21 |
- According to Fitch, this would be necessitated after the Budget failed to give any relief to boost consumption
- RBI has maintained status quo in the last few policies due to the rising impact of inflation on the real rates of return
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| SBI has reduced its lending rates across various term categories |
- This cut in rates was undertaken by SBI in various phases across various maturities despite status quo on rates
- SBI has responded to the sharp surge in liquidity as promised in the monetary policy by the RBI
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| LIC valuation yet to be decided as per the Chairman of LIC |
- The chairman of LIC has confirmed that the staff and the unions will also be involved in the LIC IPO pricing process
- Informal estimates have placed the value of the LIC at around $150 billion with stake sale via IPO planned at 10%
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| Lakshmi Vilas Bank moves up sharply on stake sale news |
- Big names like DBS Bank of Singapore, Indostar of India and Capri Global are said to be in the race to buy LVB
- While LVB is badly starved for cash and prices had crashed, the management has denied any stake sale confirmation
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| Cash rich companies could pay out a dividend bonanza in March 2020 |
- This would be designed to escape the steep promoter dividend tax imposed in Budget 2020
- The top 60 companies are expected to pay out a dividend bonanza of nearly Rs.89,000 crore in March this year
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| Sensex and Nifty correct on Friday but end the week in the green |
- The markets appear to have put the damage of the post budget reaction behind them during the week
- Apart from hopes from China stimulus, Indian markets also celebrated the sharp fall in Brent Crude oil prices
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| Emami sells its cement business for Rs.5500 crore to Nuvoco |
- Nuvoco is the arm of Nirma and had beaten larger names like Ambuja and Ultratech Cements to the deal
- The deal will allow the Emami Group to substantially reduce its outstanding debt, which had swelled in last few years
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