Weekly Capsule ( Aug 23 – Aug 27)

  • weekly 7 Weekly Capsule ( Aug 23 – Aug 27)Jerome Powell hints at taper starting by year end in his Jackson Hole speech
    In his speech, Powell indicated that the time was ripe to start putting curbs on liquidity creation in the US economy
    However, inflation and labour data did not still justify a rate hike, which may have to wait for some more time
  • NSE instructs registered members to stop selling digital gold products
    This was after SEBI pointed out to the exchanges that digital gold was not a security as defined by the SCRA, 1956
    All brokers have been asked to desist from selling digital gold on their online platforms effective from 10 September
  • Two IPOs to open for subscription on 01-Sep and close on 03-Sep
    Vijaya Diagnostics will be raising Rs.1,895 crore entirely through an offer for sale by early investors
    The other IPO of Ami Organics will raise Rs.570 crore of which Rs.200 crore will be new issue and Rs.370 crore OFS
  • Erratic monsoons likely to have an impact on Kharif output this year
    The IMD has already confirmed that the actual rainfall till date has been slightly below the long period moving average
    However, the bigger concern is the erratic rain, which has impacted the Kharif sowing as well as reservoir levels
  • The last Sovereign Gold Bond issue of H1-FY22 to open on 30-August
    The sixth gold bond issue of the financial year will be priced at Rs.4,732 per gram of gold for investors
    However, there will be an additional discount of Rs.50 per gram of gold in case of digital applications for the SGB
  • Government announces National Monetization Plan worth Rs.6 trillion
    This will entail monetization of key government owned assets like highways, railways, power transmissions lines etc
    Out of the total monetization of Rs.600,000 crore, a sum of Rs.88,100 crore will be raised in fiscal year FY22
  • Government has shortlisted 10 banks for proposed Rs.90,000 crore
    LIC IPO The list includes global banks like Goldman, Citi and Nomura as well as local players like SBI Caps, I-Sec, Kotak Capital etc
    The final decision will be taken by the ministerial panel on Alternative Mechanism on Strategic Divestment
  • SEBI bars Kotak Mahindra AMC from launching FMPs for 6 months
    These violations pertain to investment in zero coupon bonds of Essel Group, which had asked for a moratorium
    The collateral had fallen below the mandatory 1.50 times, so SEBI imposed a fine of Rs.50 lakhs and refund of AMC fees
  • Grasim plans to undertake Rs.2,600 crore capex in financial year 2021-22
    This investment will be over and above the Rs.5,000 crore that Grasim plans to invest in the paints business in next 3 years
    This capex of Rs.2,600 crore will be in the core polyester staple fibre (PSF) business in sync with rising demand
  • US Federal Court sets time limit for pendency of the Cairn-GOI dispute
    The Court asked Cairn UK to file a response to the GOI’s motion to dismiss Cairn’s plea before 10 September
    Subsequent to that, the Indian government can file a reply in support of its motion by 01 October 2021
  • Marico targets 15% revenue growth and 10% volume growth
    Towards this target, Marico plans to expand its rural network by nearly 25% to cater to the fast growing rural market
    At the same time, Marico is also ramping up its digital journey to be able to increase its digital sales penetration
  • Maruti unlikely to enter the Electrical Vehicles (EV) space in near future
    In a statement, RC Bhargava of Maruti confirmed that Maruti did not have any significant plans to foray into the EV business
    Bhargava is of the view that while the concept may be good, the actual scale and profitability may take much longer
  • RBI says time is not ripe for change in monetary policy direction
    According to the RBI governor, there was still a lot of slack in the economy and hence monetary shifts would have to wait
    That means, rates are unlikely to be hiked in the near future, although the liquidity story is still not too clear
  • NCLAT gives Jain Kalrock consortium 2 weeks to respond to employees
    The employee union of Jet Airways had protested against the Jain Kalrock deal which had given a rough deal to employees
    Many of the employees had unpaid dues of salary and even PF dues and Kalrock was only offering a fraction of the dues
  • SpiceJet likely to resume flying the Boeing 737 Max aircraft
    SpiceJet has a huge fleet of Max 737 aircraft and the DGCA had only recently allowed these aircraft to resume flying
    This has also resolved the long standing dispute that SpiceJet was having with aircraft lessor, Avolon, over rental overdues
  • Indian pharma industry expected to touch $60 billion over next 2 years
    A CARE report has pointed out that the Indian pharma sector could grow at a rate of 11-12% annually from here
    The growth is likely to be driven by a pipeline of patent expiries as well as strong interest from PE players
  • Global oil companies may be allowed to bid for BPCL divestment by GOI
    Currently, 3 players have been shortlisted as per bids put in November; viz. Vedanta, Apollo Global and I-Square Capital
    GCC Oil companies and Rosneft of Russia have already shown interest and may bid along with one of the 3 consortiums
  • Adani Ports gets approval for its 10.4% stake buy in Gangavaram Ports
    The stake has been bought for Rs.645 crore and Gangavaram port handled 32 MMT cargo in FY21, running at 50% capacity
    This acquisition gives Adani Ports good representation in the Eastern Coast so as to balance its reach across India
  • Cipla ties up with Kemwell to launch respiratory Bio-similar products
    While Cipla has strength in respiratory segment, Kemwell has a strong franchise in the biologics space
    The JV will leverage the combined strengths in product, clinical development and regulatory filings
  • SBI MF collects around Rs.13,000 crore from the Balanced Fund NFO
    The balanced advantage fund will be an auto flexible allocator and will also have a fixed withdrawal facility built in
    It is reported that the SBI branches alone collected close to 50% of the total flows, thanks to the bancassurance model
  • REITs and INVITs to be included in the NSE benchmark indices
    This is likely to give the much needed representation to the fast growing listed REITs and INVITs in India
    The inclusion in the index will attract institutional interest in REITs and INVITs, especially the passive index funds and ETFs

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