| News Announcement |
Impact Analysis |
| IIP growth for December 2019 came in lower at (-0.30%) |
- The IIP once again turned into negative territory after briefly jumping into positive zone in November 2019
- As expected, the negative turn in the IIP was largely triggered by the (-1.2%) de-growth in manufacturing IIP
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| CPI inflation comes in at a 68-month high level of 7.59% |
- While food inflation was flat to soft during Jan-20, it was the sharp rise in core inflation that took the CPI higher
- This sharp spike in inflation almost rules out any repo rate cuts by the RBI in the next couple of policies, at least
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| Supreme Court pulls up telecom companies and DOT |
- SC has asked the telcos to at least make partial payment of the AGR dues by the weekend to respect the court verdict
- DOT, which had asked officials to go easy on telcos, pulled back the notice after it came in for criticism from the SC
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| AGR order may pose a real challenge for Vodafone Idea and the banks |
- Vodafone has a total debt of Rs.130,000 crore and is unlikely to be able to pay up unless promoters infuse capital
- Any default or solvency at Vodafone Idea will have large implications for the banks that have telecom exposure
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| Chinese virus pandemic continues to haunt with death toll mounting |
- With more than 1500 dead and close to one lakh infected, the Coronavirus promises to have long lasting impact on growth
- The impact on overall growth and trade is already visible with trade and travel embargoes issued by most countries
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| SEBI calls for removal of CARE chairman, Mainak, on IL&FS issue |
- The forensic audit has proved that Mainak had exerted influence on the rating committee to change IL&FS rating
- While Mainak has resigned, SEBI has already undertaken a wider investigation and more show-causes being issued
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| RCOM reports a huge loss in the December 2019 quarter |
- RCOM reported net loss of Rs.9091 crore on revenues of Rs.238 crore for the Dec-19 quarter
- This includes provisions for the statutory payments that the company needs to make to the DOT on the AGR issue
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| DMART completes its QIP and its OFS issue during the week |
- DMART completed its Rs.4098 crore QIP during the week placing shares to marquee investors
- In the OFS, the promoter entity is exiting part of its stake, leading the stock to fall by nearly 7% on Friday
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| Vinay Dube appointed as the CEO of GO Air, belonging to the Wadia group |
- Vinay Dube, who was earlier the CEO of Jet Airways, will directly report into Nusli Wadia
- Spice Jet had reported a massive Rs.246 crore other income in the Dec-19 quarter, as advance recognition of Boeing payouts
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| Russia likely to participate with the OPEC in further supply cuts |
- Russia had been unsure of supply cuts due to the Coronavirus impact and the US supply glut risk
- However, the strong Rouble has given an incentive for Russia to join the OPEC to deepen supply cuts of crude
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| Donald Trump to meet top Indian business leaders on February 25th |
- The move is to explore closer business ties with India, one of the few nations with whom the US has a trade surplus
- The first visit to India by Trump will include separate meetings with the prime minister and a visit to Ahmadabad
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| Foreign assets of Videocon may come under NCLT settlement |
- The argument is that the Indian entity had guaranteed loans to these entities making it part of Videocon India assets
- If this goes through, it will be the first instance of including foreign assets in NCLT and could become a template
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| Trade deficit for the month of January 2020 crosses the $15 billion mark |
- While the exports and imports continued to fall, the gap has considerably narrowed leading to higher deficit
- However, with a forex chest of $473 billion, this really may not pose a major problem for the Indian economy and the RBI
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| Mindspace IPO may be put off on lack of clarity on dividend tax |
- Mindspace was the second REIT IPO planned after the success of the Embassy REITs IPO last year
- The issue pertains to the taxation of dividends in the hands of the investor, which could make REITs unattractive
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| IRDA may look to standardize hospital charges to avoid random pricing |
- IRDA is planning an online system where claims can be made on the net and customers can opt for the TPA of choice
- It may also look to standardize hospital charges, like the government does under the CGHS health program
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| CBDT has notified Forms 10-IC and 10-ID to avail lower corporate taxes |
- Form 10-IC will pertain to corporates that want to give up exemptions and opt for 22% concessional tax rate
- Form 10-ID will have to be electronically filled up by new companies intending to be taxed at concessional 15%
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| SEBI launches online surveillance system to avoid pledge of client shares |
- In the aftermath of the Karvy fiasco, SEBI has launched a method of verifying ownership in a real time format
- The exchanges will be notified immediately if SEBI finds any discrepancy between demat holdings and its master ledger
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| NASSCOM pegs IT industry growth in FY2020 at the rate of 7.7% |
- At $191 billion, Indian IT has surely attained scale and most of its incremental orders coming from the digital space
- NASSCOM also claimed that IT industry had created 2 lakh jobs in the year taking its total manpower to 43.6 lakhs
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| SBI Mutual Fund becomes the largest Indian mutual fund by AUM |
- With an AUM of Rs.3.82 trillion, SBI MF just about overtakes HDFC MF which stood at Rs.3.78 trillion in AUM
- With an equity fund exposure of $29 billion, SBI MF is already much larger than HDFC and ICICI PRU MF
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| SBI Cards IPO could hit the market in the last week of February |
- The total IPO is expected to raise up to Rs.10,000 crore and is likely to add to the SOTP attractiveness of SBI
- Currently, SBI holds 76% in SBI Cards with Carlyle holding the remaining 24% in the cards business
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| The AAP returned to power in Delhi winning 62 out of the 70 seats |
- Despite the high octane campaign of the BJP in the last few days, the people of Delhi voted largely for the AAP
- The bigger concern could be for the Congress party which drew a blank for the second election in succession
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