| News Announcement |
Impact Analysis |
| Devendra Fadnavis sworn in as CM of Maharashtra for the second term |
- The decision to revoke the president’s rule was taken early in the morning and Fadnavis had the support of Ajit Pawar
- The NCP, Congress and the Shiv Sena have approached the Supreme Court against the decision
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| Odisha tops Maharashtra in fresh investments in H2 fiscal 2020 |
- Odisha cornered 18% of the fresh investments into India followed by Maharashtra at 16%
- Naveen Patnaik of Odisha has been pushing to position Odisha as the biggest magnet for foreign investments in India
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| Karvy Stock Broking barred from fresh accounts and execution of trades |
- This ex-parte order from SEBI comes in the light of the suspected Rs.2000 crore default by Karvy Stock Broking
- Karvy had been in the news for some time over client defaults and delay in payments to employees
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| Bharti and Vodafone Idea approach the Supreme Court on payment of dues |
- This is a review petition to take a second look at the 3 month time frame to pay all pending AGR charges
- The telecom industry had been asking for waiver of interest and penalty and moratorium on AGR payment
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| Hong Kong ends up as the best performer in last 50 years |
- The Hang Seng index has given an overall return of 16,700% over the last 50 years since its inception
- That makes the HKSE the biggest wealth creator over the last fifty years as the index rode on the big China story
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| Global investors evince interest in junk bonds at massive yields |
- Buying distressed debt is high risk but that is a strategy followed by many investors globally
- Some global investors were lapping up bonds of Altico and Reliance Capital at yields of over 80% in the open market
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| Tata Motors, Vedanta and Yes Bank to be dropped from the Sensex |
- The BSE Sensex is expected to add Nestle, Titan and Ultratech Cements in place of these three stocks removed
- The index regularly keeps changing the stock composition to ensure that the index is a better reflection of the economy
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| BPCL and SCI among the major privatization candidates this year |
- In both the cases, the government will be completely exiting these businesses and look for a strategic investor
- While, BPCL is attracting a lot of global interest, SCI may be a more complex affair due to its diversified fleet
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| RBI supersedes the board of directors of Dewan Housing Finance |
- RBI had to take the decision to protect the interests of the stakeholders in the light of repeated defaults
- The supersession was based on the recent amendment on Nov-15 allowing RBI to directly refer NBFCs to NCLT
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| NSE to introduce interest rate options from December 09 |
- Interest rate futures (IRF) have been in existence on the NSE for quite some time to manage interest rate risk
- IRF has not really taken off in a big way but it is expected that interest rate options would give a lower cost hedging tool
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| Muthoot Finance to acquire control over IDBI Mutual Fund |
- This gives Muthoot Finance a strong presence in the highly lucrative AMC business
- Muthoot would look to use the synergy to launch a series of gold funds as a logical extension to its gold funding business
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| Telecom operators get some relief on payment of Spectrum usage charges |
- The government decided to offer a 2 year moratorium to telcos like Bharti and Vodafone to pay SUC charges
- However, analysts are sceptical that this would have limited impact if the full AGR was still payable
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| Subhash Chandra finally manages to find a buyer and pay off MFs |
- This stake sale will leave Chandra with just a 5% stake in the Zee Entertainment group of which 1.1% is pledged
- The debt problems of the Essel group first came to light in March when it had sought a 6 month extension to pay
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| Oil ends a volatile week on contrary cues at the macro level |
- The rising political unrest in OPEC nations like Iran, Iraq, Venezuela and Algeria pushed oil prices higher
- However, the delay in the trade deal and the comments from Trump managed to pull down oil prices on slowdown fears
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| The 12,000 level continued to elude the Nifty during the week |
- After touching the 12,000 mark for the fourth time during the year, Nifty again gave up gains through the week
- However, the Sensex has managed to decisively hold above the 40,000 mark and appears to be moving to 41,000
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| SBI AMC likely to list itself in the next two years as per SBI MF CEO |
- SBI is in the top-3 in terms of AUM and has an equity AUM that is larger than HDFC and ICICI Pru
- This should ensure premium valuations as it could be the third AMC to plan a listing after HDFC AMC and Nippon AMC
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| Banks give out loans worth Rs.250,000 crore in the month of October |
- This was largely an aggressive strategy by banks and the Finance Ministry to push credit in the festive season
- However the overhang of NPAs remain and DHFL could now add a new Rs.35,000 crore problem for banks
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| Aramco IPO gets oversubscribed in its institutional portion |
- Aramco received bids worth $17.1 billion on the institutional portion although retail portion remained tepid
- The IPO of Aramco is at a valuation of $1.71 trillion making it the most valuable company in the world.
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| SEBI gives 31 day deadline for reporting of defaults by listed companies |
- This comes as a big relief compared to the 24 hour deadline given earlier, which many had considered impractical
- This would avoid the panic caused by last minute downgrades by rating agencies and a gradual downgrade will happen
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| Jio faces weaker subscription numbers in the month of October |
- For the first time in two years, the subscriber addition at Reliance Jio fell below the 7 million per month mark
- Clearly, higher ARPUs are taking away the low cost sheen and that is slowing subscriber addition in telecom
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| PSU banks report Rs.95,700 crore of frauds in first half of fiscal 2020 |
- This is a record for half year frauds with nearly 5500 cases of frauds reported by banks
- SBI, PNB and BOB led the fraud ranking in PSU banks while ICICI Bank led the rankings in the private banks
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