| News Announcement |
Impact Analysis |
| Nearly 75% of BSE brokers have shut shop in India since 2014 |
- Traditional brokers have found it tough to survive against the onslaught of low cost broking and the use of technology
- The number of active brokers on the BSE has fallen from 9600 to a little under 2400, showing the churn in the business
|
| Government and SEBI unable to agree upon sharing of surplus funds |
- After RBI, the government has asked SEBI and IRDA to hand over their surplus funds of Rs.3500 crore to the government
- However, the regulators feel that these reserves would be key to more effective regulation and regulator independence
|
| Market indices gain sharply on Friday helped by positive news flows |
- On the global front, hopes of an imminent Phase 1 of the trade deal between China and the US, kept indices buoyant
- The bond twisting by the RBI also led to lower yields on the 10-year bonds giving a positive signal for the equity markets
|
| DICGC may take a hit of Rs.14,000 crore in the PMC Bank case |
- This is in the recent aftermath of the PMC Bank dissolution for which DICGC had to pay the insured amount per account
- DICGC came back into the limelight only after RBI placed restrictions on withdrawals by PMC Bank depositors
|
| HFCs double their share of builder loans in the last 4 years |
- This has come at a time when the PSU banks have reduced their exposures to builders by nearly 50%
- NBFCs have also seen their exposure to builders going up sharply and builder stress could be a concern for HFCs
|
| Oil prices scale a 3-monthy high on trade deal hopes |
- Brent Crude prices scaled the $68/bbl mark after the US and China gave renewed hopes of an early Phase 1 trade deal
- The prices are also up due to enhanced supply cuts but this does pose a CAD problem for the Indian economy
|
| SEBI insists on registered investment advisors to advise based on risk profile |
- Now RIAs can neither offer free look-in period nor give any advice without the risk profile being completed
- The idea is to ensure that investment recommendations are only based on risk appetite and risk capacity of the client
|
| Indian start-ups raise $14.5 billion in 2019, a YOY growth of 30% |
- This spurt in start up funding was driven by some big names like OYO Rooms and Paytm raising big money from VCs.
- However, the chunk of the money raised is in businesses like room syndication, cab pooling, food delivery service etc
|
| Annual FPI flows into India cross $20 billion in calendar year 2019 |
- One major driver for the flows came from the central elections, which perpetuated the stable government
- Meanwhile, the MSCI EM index has raised India’s weight from 8.9% to 9.6% assuring flows of nearly $2.5 billion
|
| RBI proposes major changes to the NEFT / RTGS fund transfer system |
- The first change will be that RBI will make all NEFT and RTGS transactions free of any charges from Jan-2020
- In addition, RBI also plans to allow Fintech companies also to participate in NEFT / RTGS money transfer services
|
| RBI expects gross NPAs of banks to rise to 9.9% by end of 2020 |
- In the RBI annual report, the concern is that rising cases of delinquency could lead to a 60 bps rise in gross NPAs
- According to Das, the slowdown in the twin engines of investment and consumption is likely to be the reason
|
| Adani group enters cold chain business with stake in Snowman Logistics |
- Adani has acquired a 40% stake in Snowman at a price of Rs.296 crore for its cold storage chain
- This deal gives a logical extension to the ambitious plans that Adani has in the wholesale foods business
|
| IOB, Allahabad Bank and UCO Bank get capital infusion from the government |
- All the three banks are under the PCA and this will help them emerge out of PCA at an earlier date
- However, NPAs for these 3 banks are in excess of 15% at a gross levels and that could be the big challenge to growth
|
| SBI launches OTP based cash withdrawals from ATMs |
- This facility will be available to all withdrawals above Rs.10,000 as an additional level of security
- This will protect the depositors from unauthorized usage of the card as OTP will be sent on the registered mobile number
|
| Sugar stocks advance during the week on major supply shortfall |
- The shortfall in sugar supply was an outcome of excessive unseasonal rains in Maharashtra and Uttar Pradesh
- In addition, the incentives given by the government for sugar exports has also kept the prices of sugar buoyant
|
| SEBI imposes Rs.25 lakhs penalty on ICRA and CARE on IL&FS case |
- The penalty was towards lapses in assessing the credit risk of IL&FS leading to huge bond losses
- Subsequently, the rating agencies had sharply downgraded the bonds of IL&FS leading to further losses for investors
|
| RBI asks for small savings rate to be aligned to market rates |
- The small savings rates on PPF and post office deposits are nearly 100-150 bps higher than what banks pay
- This has prevented banks from passing on RBI rate cuts as lower cost of deposits are not feasible in such conditions
|
| Dilip Sanghvi of Sun Pharma to take a huge hit as Suzlon moves to bankruptcy |
- Sanghvi had invested Rs.1400 crore in Suzlon back in 2014 to take a stake, which may have to be written off
- Suzlon had made heavy investments in alternate energy which eventually turned out to be unviable with its high debt
|
| Mistry unlikely to take position in the Tata Sons board |
- After the unseemly controversy of 2016, Mistry is unlikely to return to the Tata Sons board in his personal capacity
- He may either appoint a nominee for the job or may choose to officially resign from his position
|
| Experts feel that divestment targets could fall short by Rs.50,000 crore |
- Against the full year target of Rs.105,000 crore, it has only achieved Rs.17,000 crore of divestments as of date
- The big names like BPCL, Air India and Container Corporation may see a delay in their IPOs to the next fiscal year
|
| Government considering serious penalties for GST non-compliance |
- These penalties could include attachment of properties and also attachment of bank accounts
- Government plans to make failure to pay GST as well as failure to file returns on time punishable under the GST Act
|
