| News Announcement |
Impact Analysis |
| ICICI Bank reports 158% growth in profits for the Dec-19 quarter |
- The sharp rise in the net profits was largely driven by halving of provisions and contingencies
- However, the bank also witnessed a sharp rise in the BB and below rated pool of assets in its loan portfolio
|
| CBDT calls for 20% TDS if PAN and Aadhar number are not quoted |
- The Income Tax department has clarified that 20% TDS will be mandatory under Section 206-AA of the Act
- The government had once again postponed the deadline for linking of Aadhar and PAN from December last year
|
| Ind-Ra downgrades Vodafone NCD rating from BBB to BBB minus |
- The downgrade was necessitated after there were serious doubts about the ability of Vodafone to service AGR dues
- This would also mean that lenders and MFs who have invested in these bonds will have to take additional write-offs
|
| CLSA estimates cuts in personal tax rates in the Union Budget 2020 |
- According to CLSA, these expectations have been built after the cut in corporate taxes in September last year
- CLSA expects the slabs to be moved up and also the rates to be cut across the board
|
| Bank of Baroda reports loss of Rs.1407 crore on higher provisions |
- To a large extent, the higher losses were a partial reflection of the merger of Dena and Vijaya Bank into BOB
- Otherwise, the bank did well on other parameters like the Net interest margins, NII growth and even on gross NPAs
|
| Global markets continue to bear the brunt of the Chinese Corona virus |
- The Chinese virus has already resulted in over 40 deaths and has affected thousands more
- With the virus being hard to treat, the markets are afraid that the impact on demand could be much sharper
|
| Infosys dismisses news of SEBI calling for forensic audit of Infosys |
- Newspapers had reported that SEBI had called for forensic audit after the whistleblower allegations; which Infy denies
- The whistle blower had alleged that the CEO and CFO had deliberately overplayed profits to keep prices buoyant
|
| JSW Steel saw Q3 PBT falling by 82% on the back of weak realizations |
- The weak realizations ensured that top-line revenues were also lower by 23% on a YOY basis
- Most steel stocks had been under pressure for some time now due to cost pressures and dumping from Asian economies
|
| After Trump, it looks like India will also be moving the protectionist way |
- India is likely to target imports to the tune of $56 billion from select nations for higher import duties
- This move is likely to hit products ranging from mobile phones, chemicals, jewellery and handicraft items
|
| Fiscal deficit expected to widen in Budget 2020 to 3.8% |
- This would be in line with the 50 bps leeway permitted by the NK Singh committee on fiscal deficit limits
- The high fiscal deficit has been the outcome of weak consumption leading to fall in direct and indirect taxes
|
| Crude oil prices crack below $61/bbl on China virus concerns |
- Oil prices had already been under pressure due to the US Supply likely to cross 21 million bpd by end of 2020
- In addition, the Chinese virus also raised fears that demand could see a slowdown across China and most of Asia
|
| Power Grid moves Supreme Court against Rs.22,000 crore AGR demand |
- DOT has sent AGR notices to all companies that got spectrum allocation irrespective of their core business
- Like GAIL and OIL, Power Grid also has a strong case on AGR as clubbing non-telecom business is a harsh interpretation
|
| RBI governor calls for a mix of structural reforms and fiscal measures |
- Das has underlined that tax cuts and higher spending must be backed by fundamental structural changes in the economy
- That is also a broader hint at the emerging opinion that monetary policy may have its limits in economic strategy
|
| FPIs have sought clarification from SEBI on debt status in event of bankruptcy |
- This clarification was sought after the RBI hiked the FPI limit for short term debt from 20% to 30%
- In the event of bankruptcy, as in IL&FS or DHFL, it is still not clear how the waterfall would function
|
| Government may resort to $28 billion of off-budget funding this year |
- Off budget funding results in raising funds outside the fiscal deficit so that it does not get impacted
- Generally, global rating agencies do not look at such off-budget funding too favourably in terms of ratings
|
| Jio could touch EBITDA profits of Rs.52,400 crore in next 2 years |
- This will approximately entail a valuation of $66 billion leaving substantial upside room in the stock
- The company is expected to touch 500 million customers and an ARPU of Rs.168 by that point of time
|
| HDFC Bank ropes in Egon Zehnder to find a replacement for Aditya Puri |
- Puri’s term comes to an end in October this year when he turns and needs to move on as per RBI policies
- While Puri has wanted an internal candidate, Parekh has been more in favour of reinstating Paresh Sukthankar
|
| Sensex sheds 820 points in the first three days of the week |
- The fall in the indices was largely driven by the sharp IMF downgrade of India’s GDP growth to 4.8% for full year
- The recent virus pandemic in China is also taking its toll on the global stock markets due to the likely demand compression
|
| Adani group plans to become the largest solar player in the world |
- The group plans to enhance its renewable energy capacity to 5 GW by 2020 and to 18 GW by the year 2025
- Adani is already the 6th largest solar player and proposes to allocate 70% of its power outlays into clean energy
|
| Actual tax collections for 2018-19 were short of target by Rs.191,000 crore |
- This gap is likely to worsen in the fiscal 2019-20 due to lower growth and lower direct and indirect tax contributions
- With disinvestments also tepid in the current year, the government may end up with a huge funding gap
|
| Domestic air passenger traffic growth for 2019 falls to just 3.74% |
- This sharp fall comes on the back of an 18.6% growth in civil aviation in the previous year 2018
- The shutdown of Jet Airways in April combined with aircraft problems in the 737 slowed down aviation growth
|
