RBI’s interest cut, Spectrum sale disappoints, IMF positive on India- Weekly Digest #17

Monday- 3rd October 2016

  • Canadian pension fund manager CDPQ and financial services firm Edelweiss plan to invest an amount of $2 Billion into private debt and restructuring of stressed assets in the country over the next four years. CDPQ has acquired 20% stake in Edelweiss Asset Reconstruction Company with an initial investment of $300 million.
  • Foxconn Technology Group has reached an understanding with Nokia to revive its manufacturing plant near Chennai and has laid out tough conditions, including waiver of the Finnish company’s tax liabilities in India and resolution of legal issues at the state level, for a deal to be finalised.
  • The market surged by 1.5% as expectations of a rate cut strengthened ahead of the policy meet of the Reserve Bank of India. The Sensex rose 1.35%, or 377.33 points, to end at 28,243.29, while the broader Nifty gained 1.47%, or 126.95 points.
  • The Securities and Exchange Board of India has fined Piramal Enterprises and five senior officials of the firm, including Ajay and Swati Piramal, for violating insider trading rules in the sale of its domestic healthcare business to Abbott Laboratories.

 

Tuesday-4th October 2016

  • In his first major decision as the RBI Governer, Urijit Patel slashed the interest rates by a quarter point, to a 6 year low. This move comes despite the inflation rate already nudging over the target of 2018.
  • Kumar Mangalam Birla plans to reorganise his telecom infrastructure and towers business with an aim to simplify the holding structure by consolidating its scattered tower holdings into a single entity and unlock value.
  • The International Monetary Fund (IMF) has forecasted the growth rate of the Indian economy to 7.6%, up from its previous assessment of 7.4%, ahead of China which has been assessed for a growth of 6.2%.
  • The Reserve Bank of India has forecast consumer inflation at 5% for FY18, which is in sharp contrast to what Indian households expect, 9.5% in three months from now, and may even rise to 11% one year down the line.
  • Electrical equipment manufacturer HPL Electric and Power made a weak debut in the market, with list price being INR 190.05 against issue price of INR 210.

 

Wednesday- 5th October 2016

  • Ahmedabad drugmaker Intas Pharmaceuticals beat the larger peers Aurobindo Pharma and Cinven to acquire assets of Teva Pharmaceutical in the UK and Ireland for an enterprise value of around $764 million.
  • Anil Ambani-led Reliance Infrastructure to sell  its power transmission assets to billionaire Gautam Adani’s Adani Transmission, to raise funds and pare debt. The deal is estimated to be around INR 2,000 crores.
  • The Reserve Bank of India has made a request to the Delhi High Court to file an intervention application to explain its position on the international arbitration award that went against Tata Sons.
  • Property developer Embassy Group has tied up with Hilton to develop the country’s largest twin hotel in Bangalore with a total investment of over INR 1,000 crore.

 

Thursday- 6th October 2016

  • India’s largest spectrum auctions fetched the government an amount of INR 65,789.12 crores as it ended on Thursday. Vodafone India and Bharti Airtel emerged as the biggest buyers of 4G airwaves. The revenue generated was lower than expected as there was no buyer for pricey 700MHz band.
  • The Government has decided to further bring down its stake in IDBI bank to 52%, to get the plan of disinvestment in the bank moving again.
  • CK Birla group-owned Orient Cement has agreed to acquire the Jaypee group’s stake in Bhilai Jaypee Cement and Nigrie Cement Grinding for a valuation of INR 1,950 crores.
  • MOIL has acquired land adjacent to its Balaghat mine in Madhya Pradesh, causing a surge in the share price by 9.35% to INR 284.75.
  • ONGC has signed a preliminary pact to acquire a stake and operate the KG Basin block of Gujarat State Petroleum Corp.

 

Friday- 7th October 2016

  • The Finance Ministry has backed the scrapping of restrictions on e-commerce companies that have overseas investment, such as those on directly offering discounts to customers.
  • Sales of passenger vehicles jumped by 20% in September 2016 to 2,78,428 units. That is the highest  monthly volumes recorded in the last four years. This has been mainly attributed to demand due to ongoing festive period.
  • The 1.72-crore-share initial public offering of Endurance Technologies ended on a strong note with the issue getting subscribed 43.79 times on Friday.

 

Source: The Economic Times

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