| News Announcement |
Impact Analysis |
| Tata group has moved the Supreme Court against the NCLAT order |
- The Tata Group had appealed against the NCLAT order reinstating Mistry as chairman of Tata Sons
- Tatas have appealed against the NCLAT order as being biased and being a threat to the powers of corporate boards
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| Bharti gets approval to raise close to $3 billion in the form of debt and equity |
- These funds will be utilized to clear the AGR dues to the DOT and also to have a war chest for expansion
- Bharti has been aggressively monetizing assets and also raising capital to compete effectively with Jio
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| Geopolitical risk is back to haunt the Middle East after US bombs Iran |
- The US carried out a drone attack on a top functionary of the Iranian Revolutionary Guards to protect US security
- Trump has accused Iran of deliberately attacking US targets in Iraq. Crude prices were up by 4% on the day of the attack
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| Chinese central bank infuses $115 billion into the economy |
- This liquidity infusion was done by way of cutting the statutory reserve ratios for banks
- The global metals sector has been waiting for a serious Chinese stimulus pending the trade deal with the US
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| Forex reserves touched a record $457 billion during the week |
- Forex reserves have consistently grown due to limited intervention by the RBI in dollar buying
- The sharply higher forex reserves combined with falling imports makes the situation comfortable for trade position
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| DSP Mutual Fund makes big profits going long on G-Sec bonds |
- DSP MF was one of the few mutual funds to really benefit from the Operation Twist of the RBI
- The purchase of long term bonds led to a fall in long term yields and created hefty profits for the fund
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| SBI to sell 1.01% stake in NSE by selling 5 million shares in the IPO |
- NSE IPO to give an exit option to most of the institutional investors looking to monetize holdings
- SBI is looking to monetize a number of its holdings including its stake in subsidiaries like AMC and cards business
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| Gold prices in India scales past the Rs.41,000 /10 gram mark |
- Indian gold prices are at an all-time high due to a combination of high global prices and weak rupee
- Gold prices were also helped during the week after the drone attacks on Iran worsened the geopolitical situation
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| Rishad Premji to be non-executive chairman of Wipro |
- This is in line with the latest SEBI policy to separate the role of the chairman and the CEO of the company
- This could also mean that officially, Rishad will not be involved in the day to day management of the company
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| Adani SEZ to buy 75% in Krishnapatnam Port for Rs.13,572 crore |
- Adani is already the largest port operator and this gives them a foothold in the East Coast of India
- India has been building up trade with its eastern neighbours and that should gel perfectly with this acquisition
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| Suzlon offers 68% haircut on loans for banks ahead of NCLT |
- This is far more than the 50% haircut that the banks were agreeable to in the case of Suzlon
- If the banks do not agree to the 68% haircut, then the only choice will be to liquidate the company under NCLT
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| Sugar output fell by nearly 30% to 7.79 million tonnes for first 3 months |
- The sharp fall in sugar output was largely on account of the steep drop in sugar production in the state of Maharashtra
- The fall in supply has been instrumental in holding up sugar prices and helping the cause of the sugar mills
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| Bajaj does better than Hero Moto in two wheeler sales growth |
- For the month of December 2019, the overall sales of Bajaj Auto fell by 3% largely helped by 13% growth in exports
- It is due to its predominance of exports that Bajaj has been able to dominate the two wheeler space growth
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| Indian indices touched all time highs during the week |
- The sharp in the markets was largely led by the hopes of a trade deal and the Chinese stimulus
- On the domestic front, the FM is going aggressive on infra and budget expectations are keeping markets hopeful
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| Aviation minister, Puri, warns that Air India needs divestment to survive |
- Air India is currently losing nearly Rs.20 crore per day and has overall debt of Rs.60,000 crore in its books
- The divestment may not happen in this fiscal as the FDI policy on aviation and land monetization is yet to be worked out
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| Operation twist is back for the third time on 06 January |
- Operation Twist is expected to taper yields at the long end and benefit holders of long duration bonds
- It is also expected that by forcing long end yields down, the Operation Twist may also result in better transmission
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| Core sector growth comes in at -1.5% for the month of November 2019 |
- This is the fourth successive month that core sector growth has been negative
- This time around, there were pockets of growth within specific sectors like cement and oil refining in the core sector mix
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| GST revenues for the month of December crossed Rs.1 trillion |
- On a MOM basis, the GST revenues were up by 9% and it was the third occasion of above Rs.1 trillion GST this year
- India needs GST revenues of close to Rs.1.25 trillion in the last 3 months to get close to the full year target
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| Fiscal deficit widens, current account deficit under check |
- Fiscal deficit had already touched 115% of full year target by November making the 3.3% target quite infeasible
- Current account deficit came down sharply to 0.9% of GDP largely due to a sharp fall in trade deficit post weak imports
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| NASDAQ gains 38% for the full year 2019 making it a star performer |
- The NASDAQ rally has been led by a handful of stocks like Apple, Microsoft, Facebook and Amazon
- Despite crossing the 9,000 mark, the valuations at 27X P/E is way below the valuations in year 2000
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| CARE ratings downgrades Yes Bank bonds worth Rs.21,000 crore |
- The downgrade was largely on account of doubts over the ability of Yes Bank to raise equity capital on time
- The core capital of Yes Bank is down to 8.6% against the statutory requirement of 8% as per Basel guidelines
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