Weekly Capsule (Dec 21 – Dec 25)

weekly blog 2 Weekly Capsule (Dec 21 – Dec 25)

News Announcement

Impact Analysis

  • BREXIT deal is finally signed off between the UK and the EU
  • The deal only allows flow of trade without tariffs and quotas and UK gets most of the privileges as before
  • However, customs clearances will become mandatory and other restrictions on services and immigration will kick in
  • Home grown apps capture 40% of the market share of Tik Tok post ban
  • This has been led by start-ups like Josh, which recently became a unicorn with a $1 billion valuation
  • In two tranches, the Indian government banned over 120 Chinese apps on grounds of security and national integrity
  • Government rules out any reversal of the 3 Farm Bills
  • Government has made it clear that it was open to talks but revoking the Farm Bills cannot be a condition for the talks
  • The government wants the striking farmers to give the bill a couple of years to fully play out in the Indian context
  • Turkey bats for Chinese COVID-19 vaccine, Sinovac, based on late trials
  • According to Turkish health officials, the Chinese vaccine had shown 91.25% effectiveness with no side effects
  • The world is currently focused on 3 vaccines from the West viz. Pfizer Biontech, Moderna and the AstraZeneca vaccines
  • Sensex recovers all the losses after the carnage on Monday
  • After the Black Monday, markets celebrated the BREXIT deal and recovered all the losses in next 3 days
  • On Monday, the Sensex had fallen over 1400 points on worries over the resurgence of new virus strain in UK
  • After Burger King, Bectors Foods also gets a fantastic listing on Thursday
  • Bectors listed at a premium of 73% to the issue price of Rs.288 and closed the day with 107% gains; the third best of 2020
  • It may be recollected that the Bectors Foods IPO had been oversubscribed by 198 times, boosted by HNI bids
  • NDTV promoters to appeal against SEBI order to impose Rs.27 crore penalty
  • The case has been in SEBI for quite some time over transfer of control pertaining to the news channel
  • NDTV has clarified that the promoters have never directly or indirectly allowed any transfer of control at any point of time
  • India to challenge the IAT order asking India to compensate Vodafone
  • The case pertains to capital gains payable when Hutch sold its stake to Vodafone in the year 2007 without paying LTCG
  • The IAT ruled that the tax proposed by India was against the bilateral treaty signed between India and the UK
  • In a similar order, the IAT also ruled against India in the Cairn PLC case
  • India had put a tax imposition of $1.2 billion on Cairn PLC and had even withheld dividends payable by Sterlite
  • India will also appeal against this order which has also asked India to refund the amount to Cairn along with interest
  • RBI warns borrowers on the perils of digital peer-to-peer lending
  • This warning came in the light of the proliferation of P2P websites offering quick loans at usurious rates of interest
  • A large number of complaints have emerged where such P2P lenders have used strong arm tactics to recover monies
  • Antony Waste Ltd IPO gets subscribed to the extent of 15 times
  • The Antony Waste IPO was worth Rs.300 crore consisting of Rs.85 crore fresh issue and Rs.215 crore as OFS
  • Antony works closely with municipalities in waste handling and is among the top-5 players in India in this business
  • Aurobindo to produce and market UB-612 vaccines for India and UNICEF
  • Unlike the other RNA based vaccines, UB-612 is a multi-tope peptide based vaccine to fight COVID-19
  • The vaccine produced by Covaxx of the US may take some more time since it is yet to complete Phase 1 clinical trials
  • Bharti repeats its top growth show in the month of October 2020
  • For Oct-20, Bharti Airtel added 36.7 lakh subscribers while Jio added 22.2 lakh subscribers but Jio is the largest player
  • The big loser for the month was once again Vodafone Idea which lost another 26.5 lakh subscribers in October
  • Axis moves all its multi-cap funds into the flexi-cap category
  • This comes after SEBI asked multi cap funds to keep minimum exposure of 25% to small caps, large caps and mid caps
  • The new rule kicks in from January so most funds are expected to follow suit and shift their multi cap funds to flexi caps
  • Oaktree of the US has sweetened its bid for Dewan Housing assets
  • While its overall bid is Rs.33,000 crore, now Oaktree has committed to pay Rs.1700 crore more upfront to creditors
  • This positions Oaktree favourably versus Piramal Enterprises since Adani does not appear interested in a revised bid
  • Delhi High Court clarifies that any Amazon deal cannot violate FDI-FEMA
  • This comes as the latest twist after the court ruled in favour of the Future-RRVL deal but allowed legal recourse to Amazon
  • Amazon had objected to the Future-RRVL deal as it was not given right of first refusal; despite a stake in Future Coupons
  • Anil Agarwal makes offer to buy 4.9% stake in Vedanta Ltd
  • Since Agarwal already holds over 50% stake in Vedanta Ltd, he is allowed to buy up to 5% annually under creeping acquisition
  • The major investor will still remain LIC, which holds a 5.58% stake in Vedanta followed by HDFC MF and ICICI Pru MF
  • SEBI grants Prabhat Dairy 6 months time to delist from stock exchanges
  • The order to delist came after SEBI had reasons to believe that Prabhat had laundered money from the books
  • The extension has been granted due to COVID on the condition that they cooperate with the forensic auditors
  • BionTech expresses confidence that its vaccine can handle UK new strain
  • BionTech has assured that the new virus strain may need some tweaks but it will not take more than 6 weeks
  • Most of the markets across the globe bounced sharply on this news as it sharply reduced the UK event risk for markets
  • RIL, HUVR and Infy emerged top wealth creators in MOSL Wealth study
  • Reliance alone created total wealth of Rs.630,000 crore since 1995 with 70% of that occurring after year 2015 only
  • There were a total of 100 stocks in the Nifty 500 which did better than the Nifty CAGR returns of 9.2% over 25 years
  • SEBI prescribes fresh standards for MF dealing rooms and fund managers
  • Under the new rules, fund manager calls on mobile with all external parties must be maintained as an audio record
  • This has worried a lot of mutual funds since there are issues of confidentiality in such post market discussions

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