| News Announcement | Impact Analysis |
| Ø Monetary policy announced by the RBI keeps repo rates unchanged at 4% | Ø The status quo decision may have been determined by the need to observe the US Fed action before taking a view
Ø Contrary to expectations of a likely hike, even the reverse repo rates were kept static at 3.35% amidst rising inflation
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| Ø RBI maintained the accommodative stance of the monetary policy | Ø With growth still staging a nascent recovery, the RBI opted to keep the monetary stance accommodative as long as needed
Ø As in previous policies, 5 of the MPC members voted for this proposal with J R Varma being the sole dissenting voice
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| Ø FY23 inflation downsized to 4.5% and FY23 GDP growth estimated at 7.8% | Ø The GDP estimates have been adjusted for the possible impact of the Omicron virus, especially on contact intensive sectors
Ø The surprising part was RBI lowering the inflation, especially considering that oil prices had rallied 25% in last 2 months
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| Ø Government cancels the Rs.20,000 crore bond auctions on 11th February | Ø That was necessitated by a sharp spike in bond yields, which rallied from 6.65% to 6.93% post the Union Budget 2022
Ø That spike in yields happened after the Budget announced a 25% hike in total borrowings in FY23 at Rs.14.95 trillion
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| Ø IIP growth for Dec-21 comes in sharply lower at 0.44% on Omicron effect | Ø The big hit was on manufacturing after the disruption of manufacturing in December due to the Omicron variant
Ø This data, which was announced after the credit policy, also ratifies the stance of the RBI to keep focus on growth revival
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| Ø Ruchi Soya to launch its Rs.4,300 crore public issue in last week of Feb-22 | Ø The issue is likely to be structured as a follow-on public offer or FPO, since Ruchi Soya is already a listed company
Ø It may be recollected that Ruchi Soya was bought by the Patanjali group as part of the NCLT liquidation process
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| Ø Adani Wilmar has a stellar post listing performance on the stock exchange | Ø Adani Wilmar listed at Rs.227, against issue price of Rs.230, but by weekend had rallied almost by 80% over listing price
Ø With this rally, the market cap of Adani Wilmar crossed the Rs.50,000 crore mark, the seventh Adani group stock to list
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| Ø US retail inflation for Jan-22 comes in at a 40-year high level of 7.5% | Ø This 40-year high inflation is likely to trigger a faster increase in the pace of rate hikes by the US Fed in this year
Ø Goldman Sachs has now raised its estimate for number of rate hikes in year 2022 at 7 hikes of about 200 bps overall
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| Ø N Chandrasekharan appointed as the chairman of Tata Sons for 5 more years | Ø Under the leadership of Chandra, the Tata group saw a big focus on shareholder value and market cap of the group
Ø Another 5 year term for Chandra also means that the digital initiatives will remain the focus of Tata group in the future
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| Ø US 10-year bond yields closes in on 2% after a long time over inflation fears | Ø The bond yields spiked after inflation for Jan-22 came in at a 40-year high level of 7.5% on supply chain constraints
Ø This has substantially increased the likelihood of a 50 bps rate hike by the Fed when it meets next in March 2022 |
| Ø India’s mutual fund AUM crossed Rs38 trillion in the month of Jan-22 | Ø During the month of Jan-22, there were inflows across debt funds, equity funds, hybrid funds and passive fund categories
Ø The highlight of the month was the SIP flows at record Rs.11,517 crore and SIP folios crossing 5 crore accounts
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| Ø LIC IPO likely to be a complete offer for sale with no fresh issue component | Ø With overall valuations of $200 billion, the government just needs to sell 5% equity to raise the balance Rs.65,000 crore
Ø Even a truncated IPO issue by the LIC would be 3.5 times as large as the current record IPO size held by Paytm
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| Ø Cloud Nine files DRHP with SEBI for its proposed Rs.1,200 crore IPO | Ø The IPO is likely to a combination of Rs.300 crore of fresh issue and Rs.900 crore OFS by promoters and early shareholders
Ø The fresh issue component will be predominantly used for debt reduction and organic expansion of the business
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| Ø Piramal Enterprises reports 11% growth in profits at Rs.888 crore for Q3 | Ø With sales growth of 20.4%, PEL saw solid traction across both its financial services and its pharmaceuticals vertical
Ø The company has affirmed that the acquisition of DHFL during the previous year had been value accretive for Piramal group
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| Ø Government bans the import of drones to encourage domestic manufacturing | Ø This ban on drones will apply to the CKD, SKD and CBU form, but excludes imports for defence, security and R&D
Ø With a PLI allocation of Rs.120 crore to drones, government wants to encourage domestic drones for general purposes
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| Ø STT collections surge to Rs.19,200 crore for the fiscal year 2021-22 till date | Ø With STT collections 70% higher than FY22, even the revised estimate of STT of Rs.20,000 crore will be taken out in FY22
Ø The surge in FY22 can be largely attributed to a massive growth in retail participation in the Indian equity markets
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| Ø Bharti Airtel expects ARPUs to grow to Rs.200 per customer per month | Ø That is nearly 23% higher than the current elevated level of ARPUs at around Rs.163 reported in the Dec-21 quarter
Ø Apart from tariff hikes, Bharti has also focused more on the high value customers with scope to expand the ROI
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| Ø Blackrock raises red flags on auditor objections to SpiceJet Accounts | Ø Blackrock refused to approve the accounts and also rejected the re-appointment of Shivani Singh to the board
Ø Blackrock, the world’s largest fund manager, signifies the growing activism that global fund managers are showing
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| Ø Vedanta drops plans to restructure its group along business verticals | Ø The decision to separate steel, aluminium and oil and list them as separate entities has been shelved for the time being
Ø However, it is not clear if the plan to merge the UK based parent with Vedanta India is still on or has also been shelved
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| Ø Nalco announces 3-fold increase in net profits for the Dec-21 quarter | Ø This was on the back of a 58% boost in top line sales helped by higher volumes as well as robust aluminium prices in Q3
Ø This has been the trend with most aluminium companies with the likes of Hindalco also reporting stellar numbers
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| Ø RBI may allow NBFCs to issue credit cards on a standalone basis | Ø This is a clear shift from the current situation when NBFCs can only issue credit cards that are co-branded with banks
Ø With rising Fintech culture, RBI sees merit in allowing NBFCs to have options commensurate with their 30% credit share |
