Anil Ambani to appear before SC, OYO’s tussle with small hotels continue, GST relief to small businesses- Weekly Digest #73

Monday- 7th January 2019

  • After issuing a circular that sought to clarify taxes on valuations, the CBDT withdrew it following a Congress party press conference at which it said the move would exonerate Rahul and Sonia Gandhi over income-tax liabilities in the Associated Journals Ltd case.
  • The CCI has sought details from Samara Capital on the role of Amazon and how the proposed deal by them to acquire the More chain of supermarkets from ABRL is in line with the government’s revised FDI policy in e-commerce.
  • The Supreme Court issued a notice to RCom chairman Anil Ambani over the company’s failure to pay dues worth ₹550 crore to Ericsson and also refused to exempt him from personal appearance in court at the next hearing.
  • The union cabinet passed a Constitutional Amendment Bill to give 10% reservation to the economically backward sections of society, over and above the 49.5% quota in place for SC, ST and OBCs.
  • The NSE announced via a circular that weekly options contracts on the Nifty index will be made available for trading in the F&O segment with effect from February 11.

 

Tuesday-  8th January 2019

  • The SC reinstated Alok Verma as the CBI director after he appealed against the Centre’s decision to send him on leave. However, Verma would not be able to take any policy decisions until a high-powered panel took a call on the move to divest him of powers.
  • The Budget Hotel Association of Mumbai has formed a pan-India association called Hotel Association Confederation of India and is planning a city-wide boycott of OYO. OYO has been under fire for deep discounting and arbitrary contract changes.
  • The tax department has increased demand on advertising, marketing and sales promotion (AMP) expenses of multinationals by about 15%. The department says the AMP spend for promoting the global brand and not local products and hence should be subject to tax.

 

Wednesday-  9th January 2019

  • Billionaire Jeff Bezos, founder and chief executive of Amazon.com Inc, and wife MacKenzie Bezos are divorcing after 25 years of marriage, the couple said in a joint statement on Twitter.
  • The Supreme Court has allowed Aircel employees to file a contempt case against Bharti Airtel, its unit Bharti Hexacom and the telecom department for not returning ₹453 crore to the company as ordered by the apex court.
  • Raymond Group promoter and chairman Gautam Hari Singhania said he will step down as chairman from all group companies and dissociate himself from day-to-day functioning.
  • Royal Dutch Shell has completed the acquisition of Gujarat-based Hazira LNG and Port Ventures from French energy major Total Gaz Electricité Holdings. It acquired a 26% stake for an undisclosed amount.
  • IndusInd Bank reported a rise in net profit for Q3 of 5% to ₹985 crore, from ₹936 crore a year earlier. This has been attributed to fee and trading income, although its provisions for likely losses jumped due to loans to IL&FS.

 

Thursday- 10th January 2019

  • The prime minister-led three-member panel removed Alok Verma as director of the CBI, barely 48 hours after he was reinstated by the Supreme Court, on charges of corruption and doubtful integrity as per the findings of the Central Vigilance Commission.
  • The GST Council approved a series of measures aimed at benefiting small businesses, such as a doubling of the exemption threshold to ₹40 lakh and an increase in the turnover limit for service providers looking to avail the composition scheme to ₹1.5 crores.
  • TCS reported a Q3 result with revenue at ₹37,338 crore and the net income of ₹8,105 crore. The increased costs of hiring employees and sub-contractors in the United States has hurt its margins.
  • Hospitality firm OYO on said it would take strict legal action for breach of contract against any hotel on its platform that boycotts bookings under the influence of small vested interest groups.
  • Hong Kong-based Steadview Capital has invested over ₹520 crore in Ola as part of an ongoing financing round that values the Indian company between $5.5 billion and $6 billion. This would make Ola the third-most valued Indian private internet company after Flipkart ($22 billion) and Paytm ($15-16 billion)

 

Friday- 11th January 2019

  • For Q3, Infosys reported revenue of ₹21,400 crore while margins dropped to 22.6%. The board of the company approved ₹8,260-crore buyback and a special dividend of ₹4 per share, as it made good on its promise to return as much as ₹13,000 crore to shareholders in FY19.
  • Alok Verma, who was removed as director of the CBI, quit government service after refusing to accept his posting as director-general of fire services, civil defence and home guards and defending himself against bribery accusations.
  • Ashok Chawla resigned as chairman of the NSE “with immediate effect in light of recent legal developments”. This followed reports that he was among those that the government had allowed the CBI to proceed against in the Aircel-Maxis case.
  • Digital payments company Amazon Pay has received ₹300 crore in fresh funding from its parent, Amazon. The investment comes in the wake of increased competition from homegrown payments rivals Paytm and Phone-Pe.

 

Source: The Economic Times
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Maggi in trouble, Reliance Jio – RCom deal revives, Jet Airways crash – Weekly Digest #72

Monday- 31st December 2018

  • The RBI has forecasted gross bad loans will decline to 10.3% of total loans by March 2019 from 10.8% at the end of September 2018 and 11.5% in March 2018. This is the first time since 2015 that the regulator has believed that the industry will report a decline in NPAs.
  • Reliance Communications and Reliance Jio have extended till June 28 the term of the pact under which the former will sell some wireless assets to the latter. This comes amidst speculation that the deal between the two companies will not materialize.
  • The plans to deliver 10,000 e-cars for the government use has been delayed second time, extending the deadline from March 2019 to September 2019. The order was earlier delayed due to sufficient charging infrastructure for the cars and now due to the fact that many states are still finalizing policies regarding e-vehicles
  • Paytm Payments Bank has received approval from the RBI to restart opening accounts for its customers. The RBI had asked the bank to stop adding new customers back in June when lapses were found on the part of the entity to stick to RBI’s requirements.

 

Tuesday-  1st January 2019

  • The RBI has provided a loan-restructuring window for MSMEs for a year, yielding to a key demand of the government that had sought such a facility. The RBI has allowed a one-time restructuring of existing loans to MSMEs that are in default but ‘standard’ as on January 1, 2019
  • Sazerac, US-based spirits company, has completed its acquisition of a significant minority stake in John Distilleries Pvt Ltd (JDPL), a leading liquor maker in India. Sazerac has acquired the 20% stake at a valuation of ₹1,000 crore, taking its overall holding to 43%.
  • The Indian rupee entered 2019 on a positive note, building upon the gains of the previous two sessions and adding another 34 paise to close at 69.43 against the USD. This has been due to increased selling of the USD by exporters and smart gains in domestic equities.
  • The market regulator, SEBI has decided to implement mandatory physical settlement for all stock derivatives by October 2019. According to a circular, the new system will be implemented in three phases starting April.

 

Wednesday-  2nd January 2019

  • The shares of Jet Airways crashed and rating agency ICRA downgraded its debt to D from C as the airline revealed that it had defaulted for the first time regarding repayment of dues. The airline’s share price ended at ₹263.75 on Wednesday, down 6.16%.
  • Companies faced with a 30% tax bill over valuation-premiums are set to get relief after a recent government clarification asked officials not to scrutinise such transactions. Many firms had received tax demands after premiums were paid over the ‘fair price’ or ‘fair market value’ for fresh shares.
  • About 500 midsized restaurant companies alleged misuse of dominant position by food delivery companies, signing an online petition addressed to the CCI and the PMO to this effect. The accusations include the use of deep discounting, in-house kitchens and internal sourcing.
  • Indian stock indices slumped as a weak reading of China’s manufacturing data signalled slowing growth in the world’s second-largest economy weighed on sentiment across markets in Asia. The Sensex ended down 363 points at 35,892 points while the Nifty ended down 117.60 points at 10,793 points.

 

Thursday- 3rd January 2019

  • Private equity group Apax Partners is poised to become the single-largest shareholder in Fractal Analytics by picking up a significant minority stake of around 45% for $175-200 million, valuing the firm at $350-400 million.
  • Cars priced higher than ₹10 lakh may start costing Indians more, following the latest directive from the CBIC as it has said GST is payable on the invoice value plus TCS under the income tax act.
  • The Supreme Court gave the National Consumer Disputes Redressal Commission the go-ahead to proceed with a class action suit brought against Maggi noodle makers Nestle three years ago by the Centre for allegedly selling noodles that fell short of food standards.
  • GirnarSoft, the owner of online auto classifieds portal CarDekho, has raised $110 million from existing backers Sequoia Capital India, CapitalG, Hillhouse Capital and Axis Bank, valuing the company at $400-$500 million. The proceeds to be used to push insurance and financing business for used cars.
  • Indian stock indices weakened for the second consecutive session on weak cues from overseas markets amid continued worries on slowing global growth. The Sensex ended about 378 points lower at 35,514 points while the Nifty ended down 120 points at 10,672 points.

 

Friday- 4th January 2019

  • Several top corporates and banks are experimenting with virtual currency as a more transparent treasury management tool for optimal utilisation of working capital while being cautious about regulatory compliance. HUL, RIL, HDFC Bank, ABG Shipyard among cos running pilots for treasury management.
  • The Supreme Court sought responses from Bharti Airtel and the DoT on a contempt plea filed by a group of Aircel employees, who accused the two sides of failing to release ₹453 crore to the debt-laden telco despite an earlier order of the apex court.
  • Ambani brothers-led telecom firms have jointly approached the telecom ministry to seek clarification on the government’s stand over their spectrum trading deal. The DoT had put the spectrum trading between the two companies on hold after Jio refused to bear the burden on any past dues that RCom owes to the government.
  • The Indian arm of Nestle is set to release advertisement campaigns highlighting the “trustworthy facts” about its instant noodles brand Maggi. This comes a day after the Supreme Court revived the class-action suit by the government against the company in the National Consumer Disputes Redressal Commission.

 

Source: The Economic Times

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HDFC’s Bond Issue, Relief for Rcom, Rupee recovery – Weekly Digest #71

Monday- 26th November 2018

  • Co-founder of Flipkart, Sachin Bansal, to establish a holding company through which he will run and invest in the emerging sectors- agri-tech and fin-tech. This comes after Bansal’s resignation from Flipkart following its acquisition by Walmart.
  • IIFL Securities has acquired a 15% strategic stake in the Bengaluru-based fin-tech startup, Trendlyne, a stock market analytics platform for retail investors, analysts, fund managers and advisors for an undisclosed amount.
  • Yum! Brands-owned KFC India has divested an additional 13 restaurants to Devyani International. This comes in line with its global strategy of reducing ownership of restaurants and being a brand custodian.
  • After Morgan Stanley’s double upgrade of emerging markets, the Sensex climbed 373 points to close at 35,354 points and the Nifty gained 102 points to close at 10,629 points.

 

Tuesday-  27th November 2018

  • Bharti Airtel is planning to raise an amount of ₹12,000-15,000 crore through issue of fresh equity in the current fiscal year, with the objective to reduce debt and financing costs, bolster cash flows and meet capital expenditure to fight the price war
  • Lodha Developers is nearing materializing the sale of its two residential projects in London — Lincoln Square on Carey Street and 1 Grosvenor Square in Mayfair — to an international fund to reduce borrowings. The transaction is expected to fetch about ₹4,200 crore.
  • Spotify is in the final stages of negotiations with top Indian labels such as T-Series, Times Music, Eros Music and Zee Music to provide services in India. The company’s earlier plan to enter India through an acquisition failed after those talks collapsed.
  • WhatsApp’s chief business officer, Neeraj Arora has resigned from his position as he joins the list of top executives who have parted ways with Facebook and its group companies in the past year.
  • The rupee recovered by 8 paise to close at 70.79 against the US dollar. The rupee’s rise was supported by dollar-selling by exporters and banks after the Chinese foreign ministry announced a mutually beneficiary agreement with the US.

 

Wednesday-  28th November 2018

  • Shares of Sun Pharma fell as much as 3% but recovered to close at ₹486, as Aussie brokerage firm Macquarie raised concerns over corporate governance practices at the firm prompting an angry rebuttal from India’s largest drugmaker.
  • Unilever is likely to acquire Glaxo SmithKline’s nutrition business with a $3.4-billion all-cash offer for a 72.5% stake. This comes after nearly a year-long contest for Horlicks, the popular malted drink brand in India.
  • Retail-focused nonbanking financial company Kogta Financial has raised an amount of ₹154 crore in a financing round led by a fund managed by Morgan Stanley Private Equity Asia and existing backer IIFL Seed Ventures. The amount to be used to expand the company’s operations and enter new geographies.
  • VC firm Kalaari Capital has roped in KPMG India executive Sreedhar Prasad as a partner. This comes after the departure of at least three partners from the company in the past one year.
  • The three-member committee set up by the National Green Tribunal to decide on reopening the Vedanta-owned Sterlite Copper factory in Tamil Nadu’s Thoothukudi district, termed the state government order that led to its closure as “unsustainable” and violating the principles of natural justice.

 

Thursday- 29th November 2018

  • The NPCI has sought clarifications from Google and WhatsApp about plans to store all data pertaining to Indian users on their respective UPI-based payment apps exclusively within the country. RBI had set a deadline of October 15 for all payments companies to store data exclusively within India.
  • India’s benchmark indices rose to a two-month high as the Sensex ended up 453 points to close 36,170 points while the Nifty ended up 130 points to close at 10,859 points. This has been due to mirroring the global market strength.
  • A US jury ruled in favour of Tata Consultancy Services (TCS), clearing the company of discriminating against local Americans. The ruling will likely help other Indian IT companies that are facing similar lawsuits.
  • The rupee appreciated by 77 paise to a three-month high of 69.85 per US dollar. This has been attributed to easing crude oil prices and fresh foreign capital inflows.

 

Friday- 30th November 2018

  • The Supreme Court allowed Reliance Communications to sell its spectrum to Reliance Jio Infocomm, rejecting the telecom department’s objections. This will enable Reliance Communications to complete the transaction and pare debt by repaying creditors.
  • UrbanClap has raised $50 million in primary capital in its latest round of funding, led by Hong Kong-based hedge fund Steadview Capital along with existing investor Vy Capital. The proceeds to be used to accelerate onboarding of both customer and service partners, build stronger teams, build training capabilities as also enhance its supply chain of consumables.
  • HDFC ₹9,000 crore bond sale received an overwhelming response with bids totalling to ₹13,000 crore, or nearly one-and-a-half times the issue size, in an otherwise lacklustre bond market.

 

Source: The Economic Times

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RBI-FinMin Consensus, Fall in crude oil prices, Rupee staging comeback- Weekly Digest #70

Monday- 19th November 2018

  • The RBI and the Finance Ministry have reached a common ground where the RBI has agreed to restructure small-scale loans and set up a committee to discuss the issue of transfer of surplus reserves to the government. It also decided to consider a relaxation of lending norms for banks under the Prompt Corrective Action regime.
  • Tata Sons have adviced the management against rushing into a deal with Jet Airways due to concerns regarding a rise in liabilities. Proper due diligence and investigation have been suggested. Earlier, Tata Sons board met to discuss a possible investment in Jet Airways and take over the airline.
  • A Dubai court has rejected the final appeal against extradition by Christian Michel, who has been suspected to have a key role in the $556-million Agusta-Westland VVIP chopper case. He could be extracted within a matter of days, after the final orders by the UAE government.
  • The anti-profiteering authority has dismissed charges against Fabindia Overseas of not passing on price reduction benefits to consumers post implementation of GST.
  • The Nifty closed at 10,763 points while the Sensex closed at 35,775 points after the positive impact of the RBI Board Meeting on the sentiments of the investors.

 

Tuesday-  20th November 2018

  • An official probe has found that the RIL has violated the contractual terms and state policy on coal-bed methane (CBM) by selling its entire output to itself.
  • Japanese investment giant SoftBank has roped in Norwest Venture Partners’ Sumer Juneja as its country head for India. This comes after an over-three-year search for an executive to lead investments in India.
  • After the RBI’s board meeting signalled a truce between the Finance Ministry and the RBI, stocks of state-run banks failed to cheer the market as any relief from operational curbs imposed by the regulator would only be selective and not apply to all the affected lenders.
  • Stock markets across the world plunged as a sharp downward trend in the technology sector hit valuations hard and the Dow index gave up all its gains for the year.

 

Wednesday-  21st November 2018

  • WhatsApp has appointed Abhijit Bose as head of its India unit to build its first full-country-team outside the US. Bose has served as co-founder and CEO of electronic payments company Ezetap. He will join WhatsApp in early 2019.
  • Domestic fuel prices to fall further with crude oil slipping below $63 a barrel, down from a four-year high of $86 in October 2017. This has been attributed to increased worries about global economic growth prospects and building up of a supply surplus.
  • Indian market ended lower for the second consecutive day, in tandem with the weakness in global markets. The Sensex slid 275 points to close at 35,200 points and the Nifty declined 56 points to close at 10,600 points.

 

Thursday- 22nd November 2018

  • Samast Technologies, the owner and operator of discovery and rewards platform MagicPin, has raised about $20 million from investors led by Lightspeed Venture Partners US, valuing the venture at an estimated $100 million.
  • The Dalmia Group has won an arbitration award of ₹160 crore over a land dispute with the Delhi-based Ansal API Group. The Dalmias have approached the Delhi High Court for enforcement of the arbitration award.
  • State Bank of India is set to raise ₹3,000-5,000 crore by selling perpetual bonds. India’s biggest bank will be selling such bonds after a year and the securities are likely to offer 9.3-9.7%
  • The rupee rallied 77 paise to end at 70.69 against the US dollar, owing to softening crude oil prices and foreign capital inflows. The rupee opened on a firm note at 71.12 and hit a high of 70.68 following dollar selling by exporters.

 

Friday- 23rd November 2018

  • Oil prices slumped more than 6% as fears that supply would overpower demand intensified, even as major producers considered cutting output. Up to a 12% further decline is expected in the coming week.
  • Microfinance company Satin Creditcare Network has said that its borrowing cost has risen by 75 bps following the liquidity crisis that affected the NBFCs over the last couple of months.
  • The government has formed a group of secretaries to ensure that the privatisation of six airports doesn’t fail. This comes after past failures to implement privatisation of Air India. The Cabinet had earlier approved privatisation of six airports – Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru

Source: The Economic Times
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Rupee hits an all-time low, Amazon India receives fresh infusion, Fortis-IHH deal approved by shareholders- Weekly Digest #69

Monday- 13th August 2018

  • The Indian Rupee hits a 5 year low as it fell by 1.58% against USD to reach 68.93 amidst selloff in emerging market currencies led by the collapsing Turkish lira. In the derivative trading, the rupee crossed 70 to the USD.
  • Bain Capital Private Equity is competing with US private equity firm KKR to buy a 47% stake in Max Healthcare from South Africa’s Life Healthcare for between $450 million and $540 million. This comes after Life Healthcare held discussions with its Indian partner on leaving the venture.
  • Amazon India has received a fresh infusion of ₹2,700 crore from its parent company. This brings the total infusion into Amazon India to over $1 billion since January 2018. The Seattle company also pumped in ₹100 crore into its food retail business Amazon retail.
  • Tata Steel reported a Q1 profit of ₹1,934 crore, an increase of 53% on YoY basis. However, it missed the market expectations of ₹2,700 crore.  The consolidation of Bhushan Steel’s financials did not translate into commensurate profits.
  • Retail inflation in the country eased to a nine-month low in July at 4.17% due to a sharp decline in the price increase of food and beverages. It brings hopes that the Reserve Bank of India will stop raising interest rates.

 

Tuesday-  14th August 2018

  • The rupee hit an all-time record low as it crossed the psychological mark of 70 per dollar before bouncing back to end slightly higher at 69.89. The currency has lost about 8.6% so far this year.
  • JSW Steel raised its offer for Bhushan Power & Steel to ₹19,500 crore, making it the highest among the three bids for the bankrupt company as Tata Steel and Liberty House refrained from revising their proposals. They have their bids at ₹17,000 crore and ₹18,000 crore, respectively.
  • Spicejet reported a loss of ₹38 crore in Q1, sharp decline from a profit of ₹175.2 crore a year earlier. This has been its first loss reporting quarter in three years owing to provision for arbitration.
  • Shareholders of Fortis Healthcare approved its proposed $1 billion deal with Malaysian healthcare group IHH BHD. 99.7% of the shareholders who voted were in favour of the Fortis-IHH deal. IHH will have the rights to control two-thirds of the seats on the Fortis board.

 

Wednesday-  15th August 2018

  • Hotel chain OYO is in advanced talks to raise up to $1 billion in a deal that could usher the company into India’s crowding Unicorn club with a valuation of over $4 billion.
  • Online gaming company Nazara Technologies has made its first move towards offline gaming with a minority investment in InstaSportz Consultancy which builds VR gaming lounges across the country. Nazara, which has picked up 10% stake in InstaSportz, will raise it to 26% by November.
  • A day after the rupee plunged to its record low, Union Minister Arun Jaitley said India has comfortable foreign exchange reserves at $402.70 billion to deal with any undue volatility in the currency market.

 

Thursday- 16th August 2018

  • In a bid to expand its play in the content space, Girnar Software, which owns and operates auto portals CarDekho.com, Gaadi.com, ZigWheels.com and Bike-Dekho.com, has acquired PowerDrift Studios Private Limited which operates content platform PowerDrift.
  • Benchmark Sensex tumbled over 188 points to close at 37,663 on Thursday, tracking weak global cues on concerns over Turkey’s financial crisis amid sustained foreign fund outflows. Rupee further slumped from its all-time low to 70.40 per dollar.
  • The founder of Smaaash Entertainment is in talks with investors in the US to raise $25-30 million (about ₹175-200 crore) to fund the sports-based entertainment company’s expansion.

 

Friday- 17th August 2018

  • Safecrop Holdings, a consortium of WestBridge AIF, Rakesh Jhunjhunwala and Madison Capital, has signed definitive agreements with the shareholders of Star Health & Allied Insurance Co to purchase their stock in the country’s largest independent health insurer. The company has been valued at ₹6,500 crore.
  • Air India pilots have threatened to stay away from flying duties, thus disrupting flight schedules, as their flying allowances have not been paid. While Air India paid salaries on Tuesday, it didn’t pay the flying allowances that constitute about 70% of a pilot’s pay.
  • Malaysia’s Axiata Group Berhad will recognise a non-cash impairment of RM3.32 billion (about ₹5,692 crore) in the carrying value of its investment in Idea Cellular.
  • The Supreme Court has asked Bharti Airtel to reply to a notice in two weeks while admitting bankrupt telecom firm Aircel’s petition seeking ₹453 crore dues from the Sunil Mittal-owned mobile phone operator.
  • Hundreds of Google employees have signed a protest letter over the company’s reported work on a censor-friendly search engine to get back into China. The employees are demanding more transparency so they can understand the moral implications of their work.

Source: The Economic Times
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RBI increases repo rate, Jet Airways in trouble, RIL wins against the govt- Weekly Digest #68

Monday- 30th July 2018

  • Axis Bank reported a 46% fall in net profit in the Q1 to ₹701 crore from ₹1,306 crore on YoY basis. This has been attributed to a rise in provisions and muted other income.
  • DLF Brands is shuttering the India store network of US women’s accessories brand Claire’s amid trouble at the American brand that filed for bankruptcy in May.
  • The Delhi HC has issued notices to Flipkart and Amazon in a PIL filed by Telecom Watchdog, which alleged they had violated FDI norms and circumvented them by routing popular products at much cheaper rates and pushing out small businesses and brick-and-mortar retailers.
  • A total of 22.64% of the shareholders of HDFC Ltd voted against the continuance of chairman Deepak Parekh as director in a shareholders’ meet in Mumbai. Parekh is one of the longest-serving chairmen of HDFC. It is believed that a major foreign fund was not happy with Parekh.
  • IndiGo posted a net profit of ₹28 crore in the Q1, a 97% drop from ₹811.1 crore on YoY basis. This has been its worst quarterly performance since listing and has been attributed to operational stress, higher fuel and maintenance costs, and foreign exchange losses.

 

Tuesday-  31st July 2018

  • An arbitration panel has issued an award in favour of Reliance-led consortium in the gas migration dispute case. The panel has rejected the government’s contention that Reliance and its partners unjustly gained by producing gas from ONGC’s fields in the KG basin and must return the gains by paying $1.55 billion to the government.
  • The government has denied Whatsapp to start their payment service until they set up an office and recruit a team in India. The government also seeks RBI’s views on whether payment solutions controlled remotely violate rules on setting up such financial services in India.
  • Jet Airways has informed its employees that they will have to take an up to 25% cut in their salaries as the cost of operations for airlines is increasing due to rising crude prices and a falling rupee. The move is expected to reduce annual salary of about ₹3,000 crores by about ₹500 crore.
  • Tata Motors has reported its worst quarterly results in 9 years as it reported a consolidated loss of ₹1,863 crore for Q1. It has been attributed to troubling JLR performance due to an anti-diesel wave in the UK and Europe, vehicle stock correction in China and US’ higher incentives.
  • Reliance Industries topped TCS to become the most valued company on D-Street. RIL’s market valuation stood at ₹7.51 lakh crore at the closing of trade, which is ₹8,192 crore more than TCS. RIL shares surged 3.14% to ₹1,185.8.

 

Wednesday-  1st August 2018

  • RBI raised repo-rate by 25 basis points to 6.5%, its second hike this year to fight rising prices and stressed on maintaining macroeconomic stability. However, it kept its stance neutral.
  • The Delhi High Court has directed former Ranbaxy promoters Malvinder and Shivinder Singh to personally appear for its proceedings in Daiichi Sankyo case to enforce a ₹3,500-crore arbitration award against them.
  • The Supreme Court has ordered to seize the assets of the Amrapali Group and freeze the bank accounts of 40 of its companies and their promoters, holding that the real estate developer was dilly-dallying on completing its delayed projects and taking the system for a ride.

 

Thursday- 2nd August 2018

  • Jet Airways has informed its employees that the airline will not be able to operate beyond 60 days unless cost-cutting measures, which include pay cuts, are put in place.
  • Apple Inc became the first $1 trillion publicly-listed US company as the company’s stock rose 2.8% to as high as $207.05. Apple had recently reported its strong Q1 performance.
  • The food-delivery firm Swiggy has acquired Mumbai-based on-demand delivery firm Scootsy, under an all-cash deal. The deal is estimated to be valued at about ₹50 crore.
  • The Sensex slipped 356 points to 37,165 points and the Nifty ended down 101 points, at 11,245 points, tracking the weakness in Asian markets after the Trump administration threatened to expand tariffs on $200 billion worth of Chinese imports.

 

Friday- 3rd August 2018

  • Shares of Jet Airways fell the most in three weeks and ended 7% down at ₹308 on fears that the ongoing financial turbulence would further affect its fortunes.
  • US manufacturer Textron is winding down its defence operations in India after being hit by penalties for failing to meet stringent offset guidelines and seeing a bleak revenue stream in the country. It was recently penalised $300,000 by the defence ministry for not meeting offset obligations.
  • The SC has permitted RCom to go through with the sale of its assets to Reliance Jio and allowed the Rcom’s management to give an undertaking that it will pay ₹550 crore to Ericsson by September 30.
  • Markets rallied on Friday after two days of selling as the Sensex surged 391points to settle at 37,556 points while Nifty rose 116 points to close at 11,361 points amidst the weather department forecasting a recovery in the monsoon in August and September.

Source: The Economic Times
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The Sensex mounts 37K, HDFC AMC saw a stellar demand, Voda-Idea merger approved- Weekly Digest #67

Monday- 23rd July 2018

  • LIC has tightened its grip on Infrastructure Leasing & Financial Services (IL&FS) by appointing its own senior executive as chairman. Hemant Bhargava, LIC managing director and its nominee on IL&FS’ board, will be its new non-executive chairman.
  • Flipkart to shut down eBay.in, which it had been operating for the last one year, and eBay is expected to relaunch in India shortly. Flipkart to launch a new platform to sell refurbished goods.
  • In response to an RTI, RBI has said that cash-on-delivery by e-commerce marketplaces such as Flipkart and Amazon could be a regulatory grey area as “Aggregators/payment intermediaries like Amazon and Flipkart are not authorised”.
  • Xiaomi has announced the appointment of Eshwar Chandrasekaran, former head of online business, Lenovo-Motorola, to lead its Mi TV business in the country. This comes as a step towards penetrating the highly competitive Indian TV market.

 

Tuesday-  24th July 2018

  • HDFC Bank has changed its share sale plan to include more of American Depository Receipts than a pure domestic offering. This has been due to buoyant US market attracting more investors without Indian registration and better pricing.
  • A UK biopharmaceutical company, AstraZeneca has filed a lawsuit in the Delhi HC against Indian drugmaker Dr Reddy’s Laboratories to block it from launching generic versions of Brilinta, its medicine for heart ailments.
  • HDFC Asset Management Company has raised ₹732 crore from anchor investors, ahead of its initial share sale. The fund house has allotted 66.53 lakh shares at ₹1,100 per share to 61 anchor investors garnering ₹732 crore.
  • Alchemy Capital, an investment fund co-founded by Rakesh Jhunjhunwala, has bought about 3.5% stake in restaurant chain Barbeque-Nation Hospitality for ₹90 crore, valuing it at around ₹2,300-2,400 crore.

 

Wednesday-  25th July 2018

  • Anil Agarwal, the owner of Vedanta Resources that has announced delisting of the resources conglomerate from the London Stock Exchange (LSE) and will raise up to $1.1 billion from three or four foreign banks. The funds to be used to purchase the outstanding stock from public shareholders on the LSE.
  • L&T reported a revenue of ₹28,283 crore for Q1, up by 18% in YoY basis and consolidated net profit of ₹1,215 crore, up by 36% on a YoY basis. This has been driven by a pick up in execution momentum.
  • Domestic steel major JSW Steel’s consolidated net profit jumped 275% to ₹2,339 crore in the Q1 owing to strong demand and higher steel prices in the domestic market.
  • The government has moved Delhi High Court to enforce a $3.8 billion recovery from Reliance Industries, Shell and ONGC following an English court ruling over its share from the Panna-Mukta and Tapti fields in western offshore. ONGC has 40% interest while RIL and Shell hold 30% each.
  • The ₹2,800-crore IPO of HDFC AMC, offered at a price band of ₹1,095-1,100, received a strong response on the first day, with the QIB portion and retail portion being subscribed 1.19 times and 1.34 times, respectively.

 

Thursday- 26th July 2018

  • Hindalco’s US subsidiary Novelis has agreed to buy rival aluminium products company Aleris in a deal valued at $2.58 billion. Novelis will pay $775 million as equity and assume Aleris’ debt of $1.8 billion as part of the transaction.
  • The Sensex hits 37K mark for the first time as it hit the intraday high of 37,061 points to close at 36,985 points. The Nifty closed at 11,167 points.
  • The DoT has given the final nod to the merger of Vodafone India with Idea Cellular to create Vodafone Idea Limited, the largest carrier in India by subscribers and revenue market share. This was the last hurdle for the merger to take place.
  • ITC reported a 10.1% jump in its Q1 net profit to ₹2,818.7 crore, aided by a 13.5% increase in gross sales to ₹18,171.7 crore. This has been attributed to higher revenue from packaged foods, cigarettes, personal-care products, stationery items and agri-output businesses.
  • A PMLA court here summoned jeweller Nirav Modi and his uncle Mehul Choksi to appear before it on September 25 and 26 respectively on the ED’s plea seeking action against them under the new fugitive economic offenders law in the alleged $2-billion PNB fraud case.

 

Friday- 27th July 2018

  • Reliance Industries reported a consolidated net profit of ₹9,459 crore in the Q1, up 17.9% on a YoY basis, fuelled by its petrochemical and consumer businesses. The revenue increased by 9.7% to ₹141,699 crore and has surpassed the market expectations.
  • ICICI reported its widest loss of ₹120 crore for Q1 as the provisions doubled from ₹2,609 crore a year ago to ₹5,971 crore. This has also been attributed to complying with the Reserve Bank of India (RBI) guidelines on old non-performing assets (NPAs).
  • The Sensex closed up 352.21 points, or 0.95%, at 37,336.85 after hitting a life-high of 37,368.62. The Nifty jumped 111.05 points, or 1%, at 11,278.35 after having hit a lifetime high of 11,283.40.
  • The ₹2,800-crore initial share sale of HDFC Asset Management Company got over-subscribed by 83 times, by receiving 25.31 lakh applications and ₹1.71 lakh crore in aggregate.

Source: The Economic Times
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