Weekly Capsule (Mar29 – Apr02)

%name Weekly Capsule (Mar29 – Apr02)

News AnnouncementImpact Analysis
·        Maharashtra CM promises stricter COVID measures in next few days·        In an address on live TV, Mr. Uddhav Thackeray expressed concerns over the rising tide of COVID-19 infections

·        However, he ruled out any full-fledged lockdown as had been done in the previous at the peak of the pandemic

·        Tatva Chintan Pharma files with SEBI for its proposed Rs.450 crore IPO·        As of now, Tatva Pharma has only filed the Draft Red Herring Prospectus (DRHP) with SEBI for the IPO

·        The issue of Rs.450 crore will consist of Rs.225 crore by way of fresh issue and Rs.225 crore by way of OFS by promoters

·        Templeton India CEO confirms that there were no plans to exit India·        This confirmation came from Sanjay Sapre in the midst of speculations in the press about Templeton exiting India

·        Templeton is the only global name in the India MF business after Fidelity, JPM, Morgan Stanley, Deutsche exited India

·        Gold imports by India in Mar-21 jump to all-time record high of $11 billion·        World Gold Council is of the view that this spurt could be due to lower gold prices and pre-festival demand stocking

·        India imported 160 tons of gold in Mar-21, which is abnormal considering the average annual imports of 750-800 tons

·        Macrotech Developers plans to raise Rs.2500 crore via IPO in April·        The entire issue will be a fresh issue and nearly 60% of the funds raised will be used to reduce long term debt

·        Macrotech (formerly Lodha Developers) will be the second largest realty IPO in India since DLF IPO in 2007

·        Reliance Infra sells its Santa Cruz HQ to Yes Bank against its defaulted loan·        The 695,000 SFT property was sold at Rs.1,200 crore, which will partially repay the Rs.2,892 crore owed to Yes Bank

·        For Yes Bank, moving its headquarters to the Western suburb makes sense due to its proximity to the airports and BKC

·        Reliance Retail extended its deadline for Future deal by another 6 months·        Now the new date for completion of the deal stands extended from March 31 to September 30, 2021

·        This gives the Future group some breathing space in the midst of its battle with Amazon, which was trying to annul the deal

·        Egypt’s Suez Canal Authority to seek damages of $1 billion for Ever Given·        Egypt expects the owner of the shipping company, Evergreen of Taiwan, to make good the losses during this period

·        Once the ship ran aground, maritime traffic was held up and impacted the revenues of the Suez Canal Authority

·        Government announces cuts in rates on small savings and then withdraws it·        The decision included cut in rates on all small savings products including the schemes like SCSS and Sukanya Samriddhi

·        While political considerations may have forced the rethink, it is clear that the government cannot pay high rates any longer

·        Expert panel puts Sputnik-V approval on hold for the time being·        The expert panel which reviewed the data has called for more conclusive data on tests and success rate before approval

·        The bigger challenge was logistics as the Sputnik-V needs refrigeration at -25 degrees which isn’t commercially feasible

·        Domestic mutual funds sold Rs.1.29 trillion of equities in FY21·        This is not only the highest ever MF outflow from equities in a fiscal year but also negates all the inflows of last 6 years

·        This is clearly indicative of the extent of pressure that equity fund redemptions by investors put on the fund portfolios

·        Adani group emerges the biggest value creating group in FY21·        In the last 1 year, the group market cap went up from Rs.106,000 crore to Rs.656,000 crore

·        Adani Green emerged as the most valuable company in the group with its market cap scaling close to Rs.2 trillion

·        GST collections touch  record Rs.123,902 crore in March 2021·        The surge in GST collections was led by economic recovery marking the sixth consecutive month above Rs.1 trillion

·        Apart from economic growth, the GST Council has also applied deep data intelligence to plug the leakages in GST revenues

·        Vedanta may set up another copper manufacturing unit in India·        The new unit will have a capacity of 500,000 TPA compared to the Tuticorin plant capacity of400,000 TPA

·        One reason could be that the Tuticorin plant has been shut for close to 3 years on account of environmental concerns

·        Indian investors added wealth to the tune of Rs.90.82 trillion in FY21·        This $1.26 trillion value addition came from the huge 77% rally in the Nifty during the financial year 2021

·        This remains the biggest wealth creation exercise in a single fiscal year in Indian history, largely driven by global liquidity

·        Core sector for Feb-21 disappoints with -4.6% contraction·        All the eight sectors in the core sector basket showed negative growth with refinery products being the worst hit

·        What was disappointing was that even positive growth sectors like electricity, coal and fertilizers contracted in Feb-21

·        Government to front end its borrowing program and finish 60% in H1·        Out of the Rs.12 trillion target, the government will raise Rs.7.24 trillion in the first half itself

·        Robust GST will mean fiscal deficit better than 9.5% and that would give the much needed rates advantage for borrowings

·        GOI to recapitalize BOI, IOB, UCO and Central Bank with Rs.14,500 crore·        The government will recapitalize these four banks through the issue of bonds that will not pay any coupon interest

·        Due to objections from the RBI, the Government of India has dropped the idea of issuing Zero Coupon Bonds to banks

·        BHEL gets Rs.400 crore order from IOCL for sulphur recovery unit·        This order is significant for BHEL because it marks its entry into the downstream oil and gas space in India

·        More importantly, it will also reduce the dependence of BHEL on the coal-based thermal power sector orders

·        Indian debt to be included in the FTSE Russell emerging market debt index·        This is something the Indian government has been lobbying with leading index providers for some time now

·        Inclusion of Indian debt in the global benchmark indices assures passive flows from large debt index funds and ETFs

·        Manappuram to hive off microfinance business through an IPO·        Asirvad Microfinance is already India’s fourth largest MFI with an asset book of Rs.5360 crore and over 2.5 million clients

·        For Manappuram, microfinance is the second largest vertical after the bread-and-butter gold loans business

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