Tag: lic

MARKET UPDATE: Sensex gained over 50 points to trade around 63,228 levels, whereas Nifty50 traded marginally above 18,700 levels

MARKET UPDATE: Sensex gained over 50 points to trade around 63,228 levels, whereas Nifty50 traded marginally above 18,700 levels
Thursday, June 8, 2023
Opening Bell: Indian markets started on a positive note today( 8 June 2023), ahead of the Reserve Bank of India's (RBI) monetary policy decision. Frontline indices the S&P BSE Sensex gained over 50 points to trade around 63,228 levels, whereas Nifty50 traded marginally above 18,700 levels. Broader markets, however, outperformed benchmark indices as Nifty Midcap 100, and Nifty Smallcap 100 indices surged up to 0.3 percent. Read more

LIC extends losing streak to 7th straight session, hits record low

LIC extends losing streak to 7th straight session, hits record low
Monday, February 27, 2023
Shares of Life Insurance Corporation of India (LIC) hit a record low of Rs 568.25, down 3 percent on the BSE in Monday's intra-day trade, amid heavy volumes falling for the seventh day in a row, over concerns about the insurer’s exposure to the Adani Group. At the current level, LIC shares are available at a discount of 40 percent to the upper end of their IPO price range. According to a report, LIC has lost over Rs 20,000 crore of investment value in the Adani Group since January 30. The biggest fall in the value has been in Adani Total Gas and Adani Enterprises. Out of all the Adani Group stocks, LIC holds the maximum in Adani Ports followed by Adani Enterprises and Adani Total Gas. Since January 24, the market value of Adani Group company has fallen by up to 82 percent. Read more

Adani Group shares under pressure; Adani Ent falls 5%, Adani Ports down 3%

Adani Group shares under pressure; Adani Ent falls 5%, Adani Ports down 3%
Tuesday, January 10, 2023
Shares of Gautam Adani Group companies were under pressure on Tuesday, falling up to 5 percent on the BSE, as the benchmark index fell over 1 percent, as Adani Group is likely to file the red herring prospectus (RHP) with market regulator Sebi for its big-bang Rs 20,000 crores further public offering ( FPO) later this month, multiple industry sources with knowledge of the matter told Moneycontrol. The move is seen as a step towards fulfilling the ambitious expansion plans of the port to power diversified conglomerate which has seen group stocks sizzle on the bourses in the past few years. Among individual stocks, the Group's flagship company -- Adani Enterprises – slipped 5 percent to Rs 3,854.20 on the BSE in the intra-day trade today. With today's fall, the stock has corrected 13 percent from its record high level of Rs 4,189.10, touched on December 21, 2022. Read more

IDBI Bank up 8% on Sebi nod to reclassify govt post sale-stake as 'public'

IDBI Bank up 8% on Sebi nod to reclassify govt post sale-stake as 'public'
Friday, January 6, 2023
Shares of IDBI Bank were up 8 percent at Rs 59.7 on the BSE in Friday’s intra-day trades in an otherwise subdued market after capital market regulator Securities and Exchange Board of India (Sebi) acceded to the central government’s request to reclassify its shareholding in the Bank after its disinvestment as “public holding”.The government, with a more than 45% stake in IDBI Bank, is currently classified as a co-promoter of the lender, which will be reduced to 15 percent after divestment. The government is looking to sell its 30.48% stake in IDBI Bank, while state-backed LIC will offload its 30.24% share in the lender. Also, the government must specify its intention to reclassify its shareholding in the bank as “public holding” in the letter of offer dispatched to the shareholders of the bank in connection with the open offer made by the acquirer. Read more

Will MPC raise repo rate 35-50 bps?

Will MPC raise repo rate 35-50 bps?
Monday, September 19, 2022
A heightened pace of policy tightening by central banks in advanced economies is increasing pressure on the RBI to continue front-loading rate hikes in order to maintain adequate interest rate differentials, analysts opined. Also, many financial experts expect the RBI to lower the GDP growth estimate to 7%. The Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) is likely to lift the policy repo rate by 35-50 basis points (bps) on September 30, as it seeks to bring back elevated domestic inflation within its target range.

Investors should sell stocks on a rally: Chris Wood

Investors should sell stocks on a rally: Chris Wood
Tuesday, June 21, 2022
Markets have found it tough to cling to higher ground. CHRISTOPHER WOOD, global head of equity strategy at Jefferies advises that investors should look to sell stocks on a rally in the short term. What will see the markets rally is a sudden end to the Russia – Ukraine conflict as it will ease supply pressure across commodities, he tells. He also suggested that the bet for a sustained equity market rally before the 2022 end is a possible change in the US Fed's language.

RBI raises repo rate to 4.9%; GDP growth estimate for FY23 at 7.2

RBI raises repo rate to 4.9%; GDP growth estimate for FY23 at 7.2
Wednesday, June 8, 2022
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) today(8 June 20 22) raised the repo rate by 50 basis points to 4.9 percent (bps), citing inflation concerns. It has also decided to remain focused on the withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth. The committee has decided to retain the GDP growth estimate for FY23 at 7.2 percent, said RBI Governor Shaktikanta Das. On the assumption of a normal monsoon in 2022 and average crude oil price of $105 per barrel, inflation is projected at 6.7 percent in 2022-23, with Q1 at 7.5 percent; Q2 at 7.4 percent; Q3 at 6.2 percent; and Q4 at 5.8 percent, with risks evenly balanced. Read more

LIC share price fall all time low, M-Cap Below Rs 5 Lakh Crore

LIC share price fall all time low, M-Cap Below Rs 5 Lakh Crore
Monday, June 6, 2022
Shares of Life Insurance Corporation of India (LIC) hit an all-time low, falling 3 percent to Rs 776.1, on the BSE on Monday, which is 18 percent down from its IPO issue price of ₹ 949. With the fall in share prices, the market capitalization of the company also fell below Rs 5 lakh crore to Rs 4.98 lakh crore. It is now the seventh most valuable company in the country. LIC share is trading in the red for the fifth straight session. The scrip has slumped by around 7 percent in the last five sessions The decline in LIC shares is far sharper than the general decline in the market.LIC shares got listed on the stock exchanges on May 17. Since its listing, the scrip has closed in the positive four sessions. For the rest of the days, it witnessed selling pressure. Read more

LIC stock may be held for long term even if there's no listing gain: Experts

LIC stock may be held for long term even if there's no listing gain: Experts
Tuesday, May 17, 2022
Life Insurance Corporation of India (LIC) failed to cheer investors on its listing day, as its shares debuted at an 8.6 percent discount at Rs 867 apiece on the BSE. On the National Stock Exchange (NSE), the shares debuted at Rs 872, down 8.1 percent against the issue price of Rs 949. The debut was below expectations, and also lower than the discounted value at which shares were offered to policyholders (a discount of Rs 60 per share). "Due to the volatile market conditions amid which LIC’s stock is listing, it may not provide listing gains. New investors who have got an allotment should not feel disappointed due to this. We strongly believe LIC’s stock is a sound long-term bet. If you hold on to this stock for more than three years, you are likely to earn decent returns,” say experts.

LIC IPO subscribed 2.95 times, generates bids worth Rs 43,933 crore

LIC IPO subscribed 2.95 times, generates bids worth Rs 43,933 crore
Tuesday, May 10, 2022
Life Insurance Corporation of India’s (LIC’s) initial public offering (IPO) saw 2.95 times more demand than the shares on offer on the final day of bidding on Monday, generating bids worth Rs 43,933 crore. The subscription was primarily driven by domestic investors, mainly retail. The IPO saw 7.33 million applications from retail investors, the highest ever for a domestic issue, topping Reliance Power’s 2008 record of 4.8 million. The issue, however, got a lukewarm response from foreign portfolio investors (FPIs) amid global risk-off sentiment due to rising bond yields. Read more

MARKET UPDATE: Sensex rose 20 points to 56,997, and Nifty largely unchanged at 17,063

MARKET UPDATE: Sensex rose 20 points to 56,997, and Nifty largely unchanged at 17,063
Wednesday, May 4, 2022
The Indian key benchmark indices started the session on a flat note today(4 May 2022)ahead of the US Fed monetary policy outcome. The BSE Sensex rose 20 points to 56,997, and the NSE Nifty50 was largely unchanged at 17,063. PowerGrid, NTPC, Tata Steel, ITC, Axis Bank, Infosys, Maruti and SBI were the top winners on the Sensex. Britannia, ONGC, BPCL, and Tata Motors were the additional gainers on the Nifty. Bharti Airtel, TCS, Dr. Reddy's, Titan, HDFC Bank, Asian Paints, Bajaj Finance, Hindalco, and Apollo Hospitals were the leading losers, slipping up to 2 percent on the two indices. Read more

LIC IPO would be merely a large domestic offering for domestic investors

LIC IPO would be merely a large domestic offering for domestic investors
Tuesday, April 26, 2022
Most large global investors that the Central govt had interacted with for Life Insurance Corporation of India’s (LIC’s) initial public offering (IPO) may give the issue a miss. But in their interactions with the Centre, they have committed to consider investing in the insurer’s future offerings, based on its performance as a listed entity. The Centre had reached out to 180-200 large investors that included sovereign wealth funds, investors who focus on only large IPOs globally, and those who make investment decisions based on environmental, social, and governance (ESG) track records. Even as the board of LIC has approved a reduction in the size of LIC’s IPO to 3.5 per cent or Rs 21,000 crore, the Centre is still in talks and gauging the response from some of these foreign investors to increase the size to 5 per cent, if they choose to participate in the offering. Read more

LIC IPO likely to hit market on May 2;size may be cut to Rs 21K cr

LIC IPO likely to hit market on May 2;size may be cut to Rs 21K cr
Friday, April 22, 2022
The size of the LIC's initial public offering (IPO) may be slashed to Rs 21,000 crore, according to some sources. The IPO, however, may come with a greenshoe option of Rs 9,000 crore. The total IPO size, after accounting for the greenshoe option, will work out to Rs 30,000 crore and will lead to a 5 percent dilution of the government stake. The government currently holds a 100 percent stake in LIC. The IPO is now expected to hit the market on May 2, sources said. The insurance giant’s valuation may be reduced to just Rs 6 trillion, which will be 1.1 times its embedded value of Rs 5.4 trillion, they added. Read more

MARKET UPDATE:Sensex fell around 100 pts to 58,920 and Nifty largely flat to 17,630 levels

MARKET UPDATE:Sensex fell around 100 pts to 58,920 and Nifty largely flat to 17,630 levels
Friday, April 8, 2022
The Indian key benchmark indices gave up early gains today ( 8 April 2022)as the RBI kept the key repo rate unchanged, maintaining the status quo and its accommodative stance. The central bank, however, raised inflation projections for FY23 to 5.7 percent from 4.5 percent, while downgrading real GDP estimates to 7.2 percent from 7.4 percent. The BSE Sensex fell around 100 pts to 58,920 and the NSE Nifty was largely flat to 17,630 levels.

CLOSING BELL: Sensex 740 points higher to end at 58,684 while Nifty leaped 173 points to settle at 17,498

CLOSING BELL: Sensex 740 points higher to end at 58,684 while Nifty leaped 173 points to settle at 17,498
Wednesday, March 30, 2022
Cyclical sectors such as financials and autos powered an over 1 percent march on the benchmark indices today(30 March 2022) as investors cheered de-escalation talks between Russia and Ukraine. Investor sentiment was boosted following negotiations between Russian and Ukrainian officials in Turkey, at which Russia's deputy defense minister claimed Moscow had decided to "drastically" cut back its military activity near Ukraine's capital. Against this backdrop, Reliance Industries, HDFC twins, ICICI Bank, Bajaj Finance, and Kotak Bank lifted the benchmark S&P BSE Sensex 740 points higher to end at 58,684. The NSE Nifty50, meanwhile, leaped 173 points to settle at 17,498. The 50-pack index was additionally supported by Bajaj Finserv, Hero MotoCorp, Grasim, Tata Consumer, M&M, and Axis Bank. Read more

Tata Sons has pocketed Rs 11,164 crore from share repurchase programme of TCS and LIC tendered 1.17 million shares to take home Rs 528 crore

Tata Sons has pocketed Rs 11,164 crore from share repurchase programme of TCS and LIC tendered 1.17 million shares to take home Rs 528 crore
Tuesday, March 29, 2022
Tata Sons have pocketed Rs 11,164 crore by tendering 24.81 million shares in the Rs 18,000-crore share repurchase program by the group's flagship firm Tata Consultancy Services (TCS). Meanwhile, Life Insurance Corporation (LIC) tendered 1.17 million shares to take home Rs 528 crore. Small shareholders-those holding shares worth up to Rs 2 lakh-tendered 25.3 million shares in the buyback, 4.22 times the 6 million shares reserved for them in the buyback. All other shareholders tendered 5.7 million, 8.1 times the 34 million shares the company intended to buy back. A total of 977,300 valid applications were made by small shareholders and another 151,377 applications came from all other categories of shareholders, as per a regulatory filing made by TCS. A total of 40 million shares were bought at RS 4,500 apiece in the buyback, which concluded last week. Shares of TCS on Monday closed at Rs 3,706. Read more

Sensex rises 768 pts from day's low, ends 231 pts up;Nifty shut shop at 17,222, up 69 points

Sensex rises 768 pts from day's low, ends 231 pts up;Nifty shut shop at 17,222, up 69 points
Monday, March 28, 2022
The Indian benchmark indices swung to the positive zone in the afternoon trade today(28 March 2022) as cyclical counters such as public sector banks, auto, and metals marched ahead. Besides, a fall in crude oil prices and stability in global markets in hopes of a fresh round of talks between Russia and Ukraine supported the sentiment. The S&P BSE Sensex leaped from a low of 56,825 to settle at 57,593.5, up 231 points or 0.4 percent relative to the previous close. The NSE Nifty, on the other hand, bounced back from a low of 17,004 and shut shop at 17,222, up 69 points or 0.4 percent. Bharti Airtel, up 4 percent, was the top gainer on the Nifty50 index, followed by Coal India, Axis Bank, Eicher Motors, ITC, SBI, ICICI Bank, HUL, IndusInd Bank, and Power Grid. On the downside, UPl, Dr. Reddy's Labs, Nestle, HDFC, SBI Life, HDFC Life, HCL Tech, and Adani Ports were the top laggards, falling up to 2 percent. Read more

MARKET UPDATE:Sensex rose 300 points to 55,850, while NSE Nifty at 16,681, higher by 51 points

MARKET UPDATE:Sensex rose 300 points to 55,850, while NSE Nifty at 16,681, higher by 51 points
Monday, March 14, 2022
The Indian benchmark indices started today's(14th March 2022) session on a positive note. Despite uncertainty on developments around Russia-Ukraine talks, The BSE Sensex rose 300 points to 55,850, while the NSE Nifty was at 16,681, higher by 51 points. On the Sensex, HDFC Bank, Infosys, ICICI Bank, HDFC, SBI, Asian Paints, Tech M, Bajaj Finserv, and Wipro were the leading frontrunners, up between 0.5-2 percent. On the flip side, Hindustan Unilever, HCL Tech, Dr. Reddy's, M&M, Reliance, PowerGrid, IOC, BPCL, Tata Motors, SBI Life were the top losers, down up to 1.6 percent. The broader markets were also firmly up with the BSE MidCap and SmallCap indices up to 0.4 percent higher. Read more

India's growth will be adversely affected by Russia-Ukraine war

India's growth will be adversely affected by Russia-Ukraine war
Monday, March 7, 2022
India's growth in the next financial year will be adversely affected by factors like Supply disruptions and trade shocks emanating from the Russia-Ukraine conflict, a possible sharp rise in inflation in the next 6-8 months, fiscal pressures, and a widened current account deficit (CAD). Growth is expected to be less than 8% in FY23, economists said as they pitched for a cut in excise duties on oil to cushion the impact on inflation. The Economic Survey had forecast 8-8.5% growth in FY23 at the end of January, days after the International Monetary Fund (IMF) had pegged India's gross domestic product (GDP) growth for the year at 7.1%. Oil prices have hit their highest levels in almost a decade.HDFC Bank expects FY23 CAD at 2.3% and has lowered its FY23 growth forecast to 7.9% from 8.2% projected earlier. Read more

LIC IPO may be delayed to next fiscal year amid market swings: Report

LIC IPO may be delayed to next fiscal year amid market swings: Report
Friday, March 4, 2022
The IPO of LIC of India is set to be delayed into the next financial year amid market swings triggered by the Russia-Ukraine crisis, according to some sources. Bankers and officials are preparing to shift the listing of the state-run insurer to after the current fiscal year, which ends in March, as per the source. A formal announcement could be expected this week or next, they added. LIC’s underwriters have seen muted interest during early meetings with potential anchor investors, according to the people. Many fund managers have been wary of making major commitments amid the market volatility, the people said. Read more

Markets and war: Will Sharp recovery follow a steep fall?

Markets and war: Will Sharp recovery follow a steep fall?
Monday, February 28, 2022
For the global equity markets, it was a very tough time over the past few weeks as they have battled several headwinds, including the recent geopolitical conflict between Russia and Ukraine that has also triggered a sharp rise in commodity prices. Market experts say the market fall was a knee-jerk reaction to the Russia – Ukraine conflict and are likely to witness a choppy phase before discounting this development and staging a sharp rebound. Over time, equity markets have generally overreacted near the geopolitical risks. Read more

MARKET UPDATE: Sensex fell 951 points to 56,732, while Nifty tanked 271 points to 16,935

MARKET UPDATE: Sensex fell 951 points to 56,732, while Nifty tanked 271 points to 16,935
Tuesday, February 22, 2022
The Indian key benchmark indices started sharply lower with a massive gap today (22 Feb.2022) amid downbeat global sentiment due to tensions around the Russia-Ukraine conflict. The BSE Sensex fell 951 points to 56,732, while the NSE Nifty tanked 271 points to 16,935. The two indices were nearly 2 percent lower. All the Sensex-30 constituents were in the negative territory, led by losses in Dr. Reddy's, Asian Paints, TCS, L&T, IndusInd Bank, HDFC twins, Bajaj Finserv, down 2-3 percent. On the Nifty, ONGC was the sole gainer, up 1.3 percent, while UPL was the additional loser. ONGC was firmly higher as crude oil prices have again jumped higher on the worsening Russia-Ukraine conflict. Read more

GOI seeks Rs 15-trn valuation for LIC in India's biggest IPO

GOI seeks Rs 15-trn valuation for LIC in India's biggest IPO
Wednesday, January 12, 2022
GOI is pushing for a valuation of about Rs 15 trillion ($203 billion) for LIC that’s soon expected to file for the nation’s biggest initial public offering, people familiar with the matter said, even as arrangers awaited a final report on the firm’s estimated worth. The so-called embedded value of Life Insurance Corp. of India is likely to be more than Rs 4 trillion, and its market value could be about four times that amount, the people said, asking not to be identified as the discussions are private. Once the final report is in, the valuation the government is seeking could change. Embedded value, a key metric for insurers, combines the current value of future profits with the net value of assets. The gauge will be part of LIC’s IPO prospectus that’s likely to be filed in the week starting Jan. 31. Typically, the market value of insurers is between three and five times the embedded value. Read more

Will 'Omicron' force RBI to delay policy normalisation?

Will 'Omicron' force RBI to delay policy normalisation?
Thursday, January 6, 2022
Many economists are expecting RBI to delay the policy normalisation move, which is expected in the February review since COVID-19 infections spike in the country resulting in restrictions in various states and impacting the fragile recovery. The country has reported a single-day rise of 58,097 new COVID-19 cases as of Wednesday morning-the highest in around 199 days- of which 2,135 are Omicron cases and later in the day, the first confirmed Omicron-related death has also been reported. The active cases were recorded above 2 lakh after around 81 days and the COVID toll has climbed to 4,82,551 with 534 daily fatalities. Read more

RBI leaves key interest rates unchanged;economy better prepared to deal with Covid, says RBI Governor

RBI leaves key interest rates unchanged;economy better prepared to deal with Covid, says RBI Governor
Wednesday, December 8, 2021
The Reserve Bank of India’s monetary policy committee (MPC) today(8th December 2021) maintained key interest rates for a ninth straight meeting, retaining an accommodative stance amid the threat surrounding the Omicron coronavirus variant. Repo and reverse repo rates remain unchanged at 4 percent and 3.35 percent, respectively, said RBI governor Shaktikanta Das in a statement after a three-day meeting of the committee in Mumbai. The central bank maintained its FY22 GDP forecast at 9.5 percent and projected retail inflation to be at 5.3 percent. "Indian economy hauled itself out of its deepest contraction; we are better prepared to deal with Covid-19,” said the RBI Governor. "Given the slack in the economy and the ongoing catching up of activity, especially of private consumption, which is still below its pre-pandemic levels, continued policy support is warranted for a durable and broad-based recovery," he said. Read more

MARKET UPDATE:Sensex up 642 points at 58,276 levels while the Nifty back above the 17,350-mark

MARKET UPDATE:Sensex up 642 points at 58,276 levels while the Nifty back above the 17,350-mark
Wednesday, December 8, 2021
The Indian benchmark indices started firm today(8th December 2021), ahead of the RBI's monetary policy outcome. The six-member monetary policy committee (MPC), headed by Governor Shaktikanta Das, is likely to maintain key interest rates for a ninth straight meeting, retaining an accommodative stance amid the threat surrounding the Omicron coronavirus variant. The S&P BSE Sensex was up 642 points, or 1.11 percent, at 58,276 levels in early deals while the Nifty50 index was back above the 17,350-mark. The 50-pack index gained 192 points or 1.12 percent. 49 of the 50 Nifty constituents were trading in the green, led by ONGC (up 2.5 percent), Infosys, Wipro, ICICI Bank, Reliance Industries, Indian Oil Corporation, and Bharti Airtel. The only loser was Divis Labs, down 0.15 percent. Read more

LIC gets RBI's nod to increase stake in Kotak Mahindra Bank

LIC gets RBI's nod to increase stake in Kotak Mahindra Bank
Monday, November 29, 2021
Private lender Kotak Mahindra Bank today ( November 29 )said that Life Insurance Corporation (LIC) has received approval from the Reserve Bank of India (RBI) to increase its stake in the Bank up to 9.99%. The approval is valid for a period of one year, the bank said. Currently, the life insurer holds 4.96 per cent in the private lender.As per RBI norms, prior approval of the RBI is required to increase stake in private banks beyond 5 per cent."We wish to inform you that Kotak Mahindra Bank Limited ("Bank") has received an intimation from Life Insurance Corporation of India ("LIC") stating that the Reserve Bank of India had granted its approval to UC, for increasing its holding in the Bank up to 9.99% of the paid up equity share capital of Bank," Kotak said in an exchange filing. LIC is one of the biggest institutional investors in India’s stock market and has stakes in a number of private and public sector banks. It also holds 49.24 per cent stake in IDBI Bank. Read more

LIC IPO expected to hit market by Q4: DIPAM Secy Tuhin Kanta Pandey

LIC IPO expected to hit market by Q4: DIPAM Secy Tuhin Kanta Pandey
Wednesday, November 17, 2021
The much-awaited LIC IPO is expected to hit the market by the fourth quarter of the current fiscal, said Department of Investment and Public Asset Management Secy Tuhin Kanta Pandey. The government is seeking to raise as much as Rs 10 trillion ($133 billion) by selling up to a 10% stake. The sale of a 5% stake would make it India’s largest IPO, while a 10% dilution would make it the second-biggest of an insurer globally, Bloomberg reported. Read more

Policybazaar surges 16% after strong debut

Policybazaar surges 16% after strong debut
Tuesday, November 16, 2021
Shares of PB Fintech, the parent company of Policybazaar, rallied another 16 percent to Rs 1,397 on the National Stock Exchange (NSE) in Tuesday’s intra-day trade after a strong market debut on Monday. With today’s rally, the stock has surged 43 percent against its issue price of Rs 980 per share. The stock listed at 17.35% premium on the BSE and hit an intraday high of Rs 1,249.00, The initial share sale was oversubscribed nearly 17 times. A sharp rally in the market price of the company has helped PB Fintech enter the top-100 most valuable companies in terms of market capitalization with a market cap of Rs 60,842 crore and stood at the 95th position overall market-cap ranking, the BSE data showed. The company is a leading Fintech firm that aims to enhance its visibility and awareness along with increasing its customer base which is expected to be beneficial for the company. Read more

Policybazaar listed at Rs 1,150, a 17 per cent premium over to its issue price of Rs 980

Policybazaar listed at Rs 1,150, a 17 per cent premium over to its issue price of Rs 980
Monday, November 15, 2021
With shares listed at Rs 1,150, a 17 percent premium over its issue price of Rs 980 per share on the BSE PB Fintech, the parent company of Policybazaar, made a good stock market debut. Post listing, the stock moved higher to Rs 1,194.95, a 22 percent premium to its issue price. At 10:02 am; PB Fintech was trading at Rs 1,185, up 3 percent from its opening level on the BSE. In comparison, the S&P BSE Sensex was up 0.40 percent at 60,928. Around 468,000 equity shares changed hands at the counter on the NSE and BSE. The Initial Public Offering (IPO) of PB Fintech had received a good response with the issue subscribed nearly 16.59 times. The institutional portion was subscribed 24.89 times; the wealthy investor portion by 7.82 times and the retail investor portion 3.31 times, data shows. The IPO consisted of a fresh issue to raise Rs 3,750 crore and an offer for the sale of shares worth Rs 1,960 crore by existing shareholders. Read more

India's Oct WPI accelerates to 5-month high of 12.54%

India's Oct WPI accelerates to 5-month high of 12.54%
Monday, November 15, 2021
Annual wholesale price-based inflation in India accelerated in October to a five-month high, pushed up by increases in fuel and manufacturing prices, fuelling concerns of rising inflationary pressures for firms. The gap between retail and wholesale price-based inflation has widened in recent months as many companies and retailers are still trying to absorb galloping input costs that threaten to hit their bottom lines. Annual wholesale price-based inflation in October rose to 12.54% from the previous month's 10.66%, remaining in double-digits for the seventh month in a row, government data showed on Monday. Consumer prices based on inflation, the main gauge monitored by the monetary policy committee of the Reserve Bank of India, rose 4.48% in October from the same month last year, speeding up from September's 4.35%, separate data released on Friday showed. Read more

Central govt policies of unifying rules across states will help the country in the long run : Mark Mobius

Central govt policies of unifying rules across states will help the country in the long run : Mark Mobius
Tuesday, November 9, 2021
Veteran investor Mark Mobius has allocated almost half of his emerging-markets fund to India and Taiwan to help offset a slide in China shares that has dragged down returns from developing nations as a whole. “People say emerging markets look bad because China is dragging down the index, but they have to look at other areas such as India that are going up,” said Mobius, who founded Mobius Capital Partners LLP after a career at Franklin Templeton Investments. Mobius’ bullish view on India clashes with those of analysts at Morgan Stanley and Nomura Holdings Inc., who have downgraded the stock market after the benchmark S&P BSE Sensex Index more than doubled from a March 2020 low. Emerging-market equities have trailed behind their developed-nation peers this year, held back by losses in China as the government has roiled markets with a widespread regulatory crackdown. Read more

MARKET UPDATE:Sensex drops 100 points, Nifty at 17,875

MARKET UPDATE:Sensex drops 100 points, Nifty at 17,875
Monday, October 11, 2021
The renewed strength in the equity market, which got a boost from the Reserve Bank of India (RBI) persisting with its accommodative monetary policy on Friday,8th October, could push the Nifty past the 18,000-mark in the days ahead. While investors will shift focus to September quarter earnings season starting this week, analysts warn that disappointments could take the wind out of their sails as stronger profits are seen as imperative to justify elevated share valuations. On 8th October (Friday), the Sensex reclaimed the 60,000 and the Nifty ended 0.6% shy of 18,000,though the market gave up a portion of early gains sparked by the Indian central bank's continued monetary support. Both indices had gained 2% last week, shrugging off global concerns over the likelihood of persistent high inflation, which is putting upward pressure on US bond yields.

RBI’s no change policy hints at rate hike ahead

RBI’s no change policy hints at rate hike ahead
Friday, October 8, 2021
Analysts across the spectrum lauded the Reserve Bank of India's money policy, as they believe a 'wait and watch' approach is appropriate for the time being. RBI kept all policy rates unchanged to bolster a fragile economic recovery and reiterated an accommodative stance to back sufficient liquidity and keep borrowing costs low for both the state and companies to help drive investments. Analysts, though, saw some signs of tightening ahead in Shaktikanta Das’ speech. “RBI signalled the beginning of gradual 'tapering'of liquidity by extending VRR auction tenor, a measure widely expected by markets. While RBI has refrained from committing any GSAP amount to support bond yields, its emphasis on an ‘orderly evolution of the yield curve’ should provide comfort to the bond market,” said Churchil Bhatt, EVP Debt Investments, Kotak Mahindra Life Insurance. Read more

Economic recovery or not, most of the macro indicators are trending upwards

Economic recovery or not, most of the macro indicators are trending upwards
Monday, October 4, 2021
The RBI’s monetary policy review is due on October 6. WPI inflation rose in August 2021 to 11.4 percent, from 11.2 percent the previous month. While that increase may seem marginal, it’s important to note that average WPI inflation in the last five months has been 11.6%. Retail inflation, at 5.3% in August, has not only spent two consecutive months below the RBI’s upper tolerance limit of 6%, but has also come down to below the level it was at before the second wave struck. Given the sheer amount of liquidity made available by the RBI over the last year and more, the fact that retail inflation is low while the Sensex has been scaling new heights suggests that investment activity so far has been restricted to equities rather than factories and that demand is still subdued. Read more

Centre initiates talks with RBI to kick-off bank privatisation process

Centre initiates talks with RBI to kick-off bank privatisation process
Tuesday, September 28, 2021
The government has initiated consultations with the Reserve Bank of India (RBI) to devise a new security clearance framework for screening potential bidders of public sector banks (PSBs) as it kick-starts the privatisation process, beginning with the strategic divestment of IDBI Bank. As the government is moving ahead with strategic divestment of IDBI Bank and is looking to privatise two PSBs, the Department of Investment and Public Asset Management (DIPAM) is looking to put in place an appropriate framework as the potential buyers will have to meet the RBI’s fit and proper criteria, according to an official. Read more

MARKET UPDATE:BSE Sensex traded 40 points lower at 58,964 levels while Nifty tested 17,550-mark, up 2 ponits

MARKET UPDATE:BSE Sensex traded 40 points lower at 58,964 levels while Nifty tested 17,550-mark, up 2 ponits
Wednesday, September 22, 2021
Indian equity markets were volatile in early trade today(22nd Sept.2021) as investors assessed the impact of the Evergrande crisis on India, and ahead of the US Federal Reserve's monetary policy outcome. The 30-share BSE Sensex traded 40 points lower at 58,964 levels while the NSE Nifty50 tested 17,550-mark, up 2 points. HCL Tech, BPCL, Hindalco, IndusInd Bank, and Tata Motors were the top gainers on the benchmark indices. In the broader market, the BSE MidCap and SmallCap indices added 0.91 percent and 0.80 percent, respectively. Globally, the Shanghai Composite fell 0.26 percent amid the ongoing Evergrande crisis. Elsewhere in Asia, the Nikkei 225 in Japan was down 0.5 percent and Australia's S&P/ASX 200 edged 0.83 percent higher.

RBI deputy governor sees FY22 inflation at 5.7% or lower

RBI deputy governor sees FY22 inflation at 5.7% or lower
Thursday, September 16, 2021
The retail inflation fell to 5.3% in August and stayed within the Reserve Bank of India’s target range for two successive months. This could lead the RBI to revise the inflation projection for the current financial year. In the August review of monetary policy, RBI revised its inflation projection for the current financial year upward to 5.7% from 5.1% projected in the June policy review. Read more

Vehicle scrappage policy, Ola e-scooter: How to trade key auto stocks

Vehicle scrappage policy, Ola e-scooter: How to trade key auto stocks
Monday, August 16, 2021
Last weekend the government notified vehicle scrappage policy and Ola launched its e-scooter. In this backdrop following are the tips for the trading of auto stocks: 1. Maruti Suzuki India The shares of Maruti Suzuki India are trading below both the major moving averages i.e 200-days moving average (DMA) and 200-weekly moving average (WMA) placed at Rs 7,215 and Rs 7,293 levels, respectively. This breakdown shows a negative bias that may lead to bearish sentiment in the days ahead, if crucial support of Rs 6,758 is broken, which is its 100-WMA. The immediate support comes in at Rs 6,900 and then Rs 6,850 levels. Read more

RBI hints at normalising ultra-loose policy

RBI hints at normalising ultra-loose policy
Friday, August 6, 2021
The August review of the Reserve Bank of India’s bi-monthly monetary policy was interesting as: 1.) no unanimous voting on the policy stance 2.) more than expected revision in inflation forecast for FY22 and 3.) announcement of the variable rate reserve repo auction – an indication that the central bank has started the gradual withdrawal of the ultra-loose monetary policy that was in place since the onset of the Covid-19 pandemic. As expected, there was complete unanimity among all the six members of the monetary policy committee (MPC) to keep the interest rate unchanged at 4%. However, on maintaining the accommodative stance, five of the six members voted in favour. Professor Jayanth Verma disagreed. Read more

MARKET UPDATE: Sensex quoted at 54,600 levels, up 100 points and Nifty held 16,300-mark, up 7 points

MARKET UPDATE: Sensex quoted at 54,600 levels, up 100 points and Nifty held 16,300-mark, up 7 points
Friday, August 6, 2021
As the RBI kept the monetary policy rate unchanged at 4 percent and continued with the "accommodative" policy stance, the BSE Sensex quoted at 54,600 levels, up 100 points while the Nifty50 held 16,300-mark, up 7 points. Sectorally, all but IT and pharma stocks were in the green. The Nifty PSU Bank and Auto indices were the top gainers, up 0.6 percent each. More than 100 companies are slated to post their numbers on Friday including M&M, Voltas, Ujjivan SFB, Tata Power, Torrent Power, SAIL, Hindalco, Indigo Paints, BEML, and BEL. Further, on Saturday Divis Labs, Bank of Baroda, Dodla Dairy, Indiabulls Real Estate, and VRL Logistics will release quarterly earnings.

India equity deals: Cash-rich investors are set to step up the hunt for Indian firms

India equity deals: Cash-rich investors are set to step up the hunt for Indian firms
Friday, July 30, 2021
Cash-rich investors are set to step up the hunt for Indian firms, mainly tech start-ups, likely to benefit in the post-pandemic world, after pumping in a record $30 billion via public and private equity deals this year, analysts said. Global investors have flocked to online platforms in the country and helped swell the ranks of unicorns, or start-ups valued at $1 billion or above. The regulatory clampdown by China on its technology firms is spurring some foreign investors to turn to the world's second-most populous nation instead, analysts said. The fundraising boom in India by companies, ranging from an e-commerce platform to a food delivery app operator, comes even as the country's economic rebound, already weakened in recent months, faces risk from coronavirus variants. Read more

algo trading: New trading strategy for retail investors

algo trading: New trading strategy for retail investors
Wednesday, July 21, 2021
Many retail investors have now begun to participate in algo trading, which was available only to institutional investors till a few years ago. The quant (the person who creates the algorithm or algo) studies historical data to come up with certain trading rules that he believes will make money. He then builds the algo, software that has those rules coded in, which then scans the market. Whe­n­e­ver the conditions that ha­ve been coded are met, it ge­nerates buy and sell signals. To access this, traders have to enroll on platforms that offer algo trading strategies, like Rain Technologies, Tradetron, Squareoff, AlgoBulls. The trader also needs to enroll with a broking firm that offers API (application programming interface) integration. An API gathers the signals generated by the trading platform and executes them in the trader’s broking account. Zerodha, Fyers, Upstox, Samco, 5paisa, among others offer API integration. Read more

Paytm to be the top 10 most-valued financial stocks in India

Paytm to be the top 10 most-valued financial stocks in India
Friday, July 16, 2021
Digital payments major Paytm will be amongst the top 10 most-valued financial (banks included) stocks in the country when it gets listed later this year. According to investment banking sources, the company is looking at a valuation of between $20 billion and $25 billion in the initial public offering (IPO). The parent company of Paytm, One97 Communications, today(16th July 2021) filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India. The company is looking to raise Rs 8,300 crore by issuing fresh shares in its maiden stock market offering. The IPO will also comprise Rs 8,300 crore worth of secondary share sale from existing shareholders, including founder Vijay Shekhar Sharma, China’s financial powerhouse Ant Financial and e-commerce giant Alibaba. Read more

Bajaj Healthcare gains 11 percent after receiving DRDO nod to manufacture 2-DG

Bajaj Healthcare gains 11 percent after receiving DRDO nod to manufacture 2-DG
Thursday, July 8, 2021
Shares of Bajaj Healthcare surged 11 per cent and hit 52 weeks high of Rs 1,009.80 on the BSE in intra-day trade on Thursday after the company received a licence from Defence Research and Development Organisation (DRDO) to manufacture and market "2-Deoxy-D-Glucose" (2-DG) as approved medication for the treatment of COVID-19 patients. The 2-DG Ccovid-19 control and treatment drug has been developed by the DRDO laboratory's Institute of Nuclear Medicine and Allied Sciences (INMAS), in collaboration with the pharma major Dr Reddy’s Laboratories. It has already received emergency approval from the Drugs Controller General of India (DCGI) for use on Covid-19 patients in the country. The drug comes in powder form and retails at Rs 990 per sachet, which is taken orally by dissolving it in water. It accumulates in the virus-infected cells and prevents virus growth by stopping viral synthesis and energy production. Read more

Panacea Biotec gains 9 percent on regulator’s nod to produce Sputnik V jabs

Panacea Biotec gains 9 percent on regulator’s nod to produce Sputnik V jabs
Monday, July 5, 2021
Shares of Panacea Biotec surged 9 percent to Rs 411 on the BSE in the intra-day trade on Monday after the company announced that it has received a manufacturing license to produce Sputnik V vaccine at its Baddi (Himachal Pradesh) plant, after the first batch of the covid-19 vaccine cleared all quality-control tests at the Gamaleya Center, Russia, the company said. “Panacea Biotec is delighted to announce the obtaining of the manufacturing license to produce Sputnik V vaccine in India. On this occasion, we thank the leadership of our Hon’ble Prime Minister Modi Ji and Government of India for timely handholding and expediting clearances to enable ‘Make in India’ vaccines," said Dr. Rajesh Jain, Managing Director, for Panacea Biotec. Sputnik V has been part of India’s covid vaccination drive since 14 May after receiving the emergency use authorization on 12 April. Sputnik V has been registered in 67 countries globally, covering a total population of over 3.5 billion people. Read more

Can PSU banks offer good returns even after a stellar rally?

Can PSU banks offer good returns even after a stellar rally?
Saturday, June 26, 2021
Stocks of the public banks have been on a gradual upward trend during the month of June. Privatisation buzz, strong earnings, and fund-raising plans have lent confidence to investors which resulted in buying in these names. The stocks did see some weakness recently but the positive sentiment remains intact. Union Bank shares have gained over 12 percent so far in June while UCO Bank has surged 5 percent. Notably, Union Bank said on Thursday (24th June 2021), it has raised Rs 850 crore while UCO Bank has received Board's nod to raise up to Rs 500 crore. Meanwhile, other stocks in the PSU bank basket-like Central Bank of India and Indian Overseas Bank have seen a sharp rise on the news of divestment plans. Read more

LIC Housing Finance dips 4% as investors booked profit

LIC Housing Finance dips 4% as investors booked profit
Wednesday, June 16, 2021
Shares of LIC Housing Finance slid 4 percent to Rs 501 on the BSE in intra-day trade today(16th June 2021) as investors booked profit after the company reported a good set of numbers for the March quarter (Q4FY21) on the operating and business growth front. However, a steep rise in provisions dented profitability. The board approved a dividend at 425 percent i.e. Rs 8.50 per equity share of Rs 2 each for the financial year 2020-2021. The stock has corrected 8 percent from its 52-week high level of Rs 542, touched on Friday (June 11, 2021) with today’s decline. Despite the past couple of days' fall, LIC Housing Finance has outperformed the market by gaining 18 percent, as compared 8 percent rise in the S&P BSE Sensex in the past month.

RBI keeps growth revival top priority;maintained status quo on interest rates

RBI keeps growth revival top priority;maintained status quo on interest rates
Friday, June 4, 2021
The monetary policy committee of RBI maintained the status quo on interest rates for the sixth consecutive review meeting today(4th June 2021), indicating that reviving economic growth was top on its agenda as it decided to look through inflation pressure which is resurfacing in the economy due to a variety of factors including hardening of crude oil prices. “The MPC also decided unanimously to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward,” said RBI governor Shaktikanta Das in Mumbai while announcing the policy review decision. Read more

20 stocks could get upgrades with seven of them moving from midcap space to largecap, and 13 from smallcap space to midcap

20 stocks could get upgrades with seven of them moving from midcap space to largecap, and 13 from smallcap space to midcap
Thursday, June 3, 2021
Due to strong interest in cyclical and digital stocks in the last one year, names from these segments will dominate the upgrades when the Association of Mutual Fund in India (Amfi) updates its biennial size reclassification list in early July. Assuming that prices will not deviate a lot from current levels during June, overall 20 stocks could potentially get upgrades with seven of them moving from midcap space to largecap, and 13 from smallcap space to midcap, said ICICI Securities NSE 5.47 %. Of the above 20 stocks, 14 belong to cyclical (industrials and lenders), while five belong to the digit domain (platform, e-commerce or niche digital technology), and one to defensive (healthcare). Read more

RBI's Monetary Policy Committee expected to hold rates and continue with an accommodative stance to encourage growth

RBI's Monetary Policy Committee expected to hold rates and continue with an accommodative stance to encourage growth
Thursday, June 3, 2021
The RBI is expected tomorrow(4th June 2021) to hold interest rates after a three-day meeting of its Monetary Policy Committee (MPC). The policy will likely maintain an accommodative stance, as helping economic growth remains a priority. Here are key decisions to look at from the review meeting: The market will look out for RBI’s GDP growth forecast for the financial year. In the last policy review meeting of April, GDP growth for the current financial year was projected at 10.5%. For the first quarter, it was projected at 26.2%. The prediction was before the second wave of the coronavirus pandemic that has hurt economic activity due to lockdowns by state governments. Most economists and rating agencies have trimmed their forecasts following the second wave. Many see GDP growth for FY22 in single-digit now, as compared to double-digit predictions made before the second wave. Read more

Four IPOs worth Rs 4000 crore is expected to hit the market in a few weeks

Four IPOs worth Rs 4000 crore is expected to hit the market in a few weeks
Saturday, May 15, 2021
Four deals worth a cumulative Rs 4,000 crore is expected to hit the market over the next 3-5 weeks, said investment banking sources. Shyam Metalics, Dodla Dairy, Krishna Institute of Medical Sciences (KIMS) Hospitals, and Clean Science and Technology are among the companies planning to tap the market. While the recent volatility in the secondary markets is a concern, experts believe the sentiment towards IPOs is still buoyant. Bankers said many new investors had taken a liking to IPOs — a big confidence booster for issuers. “The immediate volatility is not a concern. People are factoring in the next financial year numbers. Investors expect the next year to be normal and growth-oriented, giving comfort to issuers,” said Ajay Saraf, executive director, ICICI Securities. Read more

MARKET UPDATE:Sensex leaped 700 points at 49,900 and Nifty50 index jumped 200 points and hit 14,880-mark

MARKET UPDATE:Sensex leaped 700 points at 49,900 and Nifty50 index jumped 200 points and hit 14,880-mark
Thursday, April 8, 2021
The Indian equity markets welcomed the decision of RBI governorShaktikanta Das to keep rates unchanged during the first bi-monthly monetary policy of FY22, along with holding the GDP growth rate steady at 10.5 percent for the new financial year. Despite the recent surge in Covid-19 cases, the governor said the central bank and the government are prepared to tackle the second wave. Soothed by the comments, the benchmark S&P BSE Sensex index leaped 700 points and hit the day's high of 49,900. The Nifty50, meanwhile, jumped nearly 200 points and hit 14,880 on the back of an across-the-board buying. Banking and financial stocks outperformed on Wednesday with the Nifty Bank, Private Bank, and PSU Bank indices settling higher in the range of 1.5 percent to 2 percent. The Nifty Financial Services, IT, Pharma, Metal, and Realty indices, on the other hand, gained up to 1.5 percent. Read more

RBI Monetary Policy highlights

RBI Monetary Policy highlights
Wednesday, April 7, 2021
Key factors of RBI Monetary Policy: 1) RBI Governor Shaktikanta Das said the repo rate at 4 per cent in the April policy and retained its accommodative stance for as long as necessary amid rising inflation and elevated inflation. 2)The marginal standing facility (MSF) rate and the bank rate remain unchanged at 4.25 per cent. The reverse repo rate stands unchanged at 3.35 per cent. 3) Fulfilled a long-standing demand of bond market participants of having an open market operations (OMO) calendar of sorts, through which the central bank would commit its periodic support to the market. 4)MPC maintained GDP growth estimate for FY22 at 10.5%, with risks equally balanced depending on the pace of the vaccination drive. 5)The RBI extended the deadline of TLTRO on the Tap Scheme till September 30, 2021. The scheme was announced on October 9, 2020, and was made available up to March 31, 2021. Read more

Govt likely to target fiscal deficit at 4% of GDP by FY26

Govt likely to target fiscal deficit at 4% of GDP by FY26
Monday, January 18, 2021
The GOI is likely to lay down a road map in the upcoming Budget to reduce its fiscal deficit to 4 percent of gross domestic product (GDP) by 2025-26. This is necessary because there will be demands for expansionary policies, even in the next couple of years. This implies the government is set to deviate from the long-standing medium-term target of 2.5-3 percent of GDP as prescribed by amendments to the Fiscal Responsibility and Budget Management Act (FRBM). The government had changed the recommendations of the N K Singh Committee on fiscal consolidation and targeted bringing down the fiscal deficit to 3.1 percent of GDP by 2022-23 (FY23). However, to enable widen the fiscal deficit beyond the permissible limit under the present legislation, the government may have to propose an amendment to the FRBM Act in the Finance Bill.

The overdue farm reforms are not something to fear

The overdue farm reforms are not something to fear
Thursday, December 3, 2020
While the economy has been partly liberalised since opening up to the world in 1991, the process has largely bypassed the three-fifths of Indians who depend for their livelihoods, directly or indirectly, on farming. In September, the government finally introduced a much-needed set of changes to how agriculture is organised and how produce is sold in India. Now tens of thousands of agitating farmers have marched upon New Delhi in protest. The protests may have less to do with the recent reforms, which allow farmers to enter into direct contracts with purchasers and which eliminate the monopoly government warehouses previously held on the wholesale trade, than those that may becoming. The answer isn’t for the government to reverse course — it’s to go further. Read more

Muthoot Finance plans to raise Rs 2,000 cr through bonds

Muthoot Finance plans to raise Rs 2,000 cr through bonds
Monday, October 26, 2020
Gold loan company Muthoot Finance on Monday said it is looking to raise up to Rs 2,000 crore through a public issue of non-convertible debentures (NCDs) for lending purposes. The proposed debenture issue will have a base issue size of Rs 100 crore with an option to retain oversubscription up to Rs 1,900 crores aggregating up to tranche limit of Rs 2,000 crore."The issue will open on October 27, 2020, and will close on November 20, 2020, with an option to close on such earlier date or an extended date as may be decided by the board of directors or NCD committee. The NCDs are proposed to be listed on BSE. The allotment will be on a first come first serve basis. The funds raised through this issue will be utilised primarily for lending activities, the company said. There are six investment options for Secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with coupon ranging from 7.15 per cent to 8 per cent per annum. Read more

RBI keeps policy rates unchanged and will run 'accommodative' stance

RBI keeps policy rates unchanged and will run 'accommodative' stance
Friday, October 9, 2020
The monetary policy committee (MPC) of the Reserve Bank of India (RBI) kept policy rates unchanged, and the governor assured that the worst was possibly over for the economy and it can now hope for a steady recovery towards pre-pandemic growth rates. The newly-appointed six-member MPC voted unanimously to keep the policy repo rate at 4 percent, and said the real gross domestic product (GDP) growth rate in 2020-21 could be a negative 9.5 percent, with “risks tilted to the downside.” The stance of the policy would remain “accommodative,” for “as long as necessary – at least during the current financial year and into the next year – to revive growth on a durable basis and mitigate the impact of Covid-19 while ensuring that inflation remains within the target going forward,” RBI governor Shaktikanta Das in his streamed monetary policy address today(9th Oct.2020) morning. Read more

external members of RBI'S monetary policy committee appointed

external members of RBI'S monetary policy committee appointed
Tuesday, October 6, 2020
The government has appointed Jayanth Varma who is a professor in the Indian Institute of Management, Ahmedabad, Ashima Goyal, member of the Economic Advisory Council of Prime Minister, and Shashanka Bhide, senior advisor at National Council for Applied Economic Research as external members of the Reserve Bank of India's monetary policy committee. 1. Jayanth Varma is a known expert in financial markets. He is currently a professor at the Indian Institute of Management (IIM), Ahmedabad, and teaches courses in the capital market, fixed income, alternative investment, and corporate finance. He has been the dean of IIM for three years. Prior to this, he was a full-time member of the market regulator Securities Exchange Board of India for a year. This is after completing his three years stint at Sebi as a part-time member. Prof. Varma, who is also a qualified cost accountant awarded a gold medal for scholastic performance from the IIM. Read more

RBI postpones September’s Monetary Policy Committee meeting, new dates to be announced shortly

RBI postpones September’s Monetary Policy Committee meeting, new dates to be announced shortly
Monday, September 28, 2020
The meeting of the Monetary Policy Committee (MPC), for the penultimate policy review for 2020, which was scheduled for 29 September, 30 September, and 1 October 2020 has been rescheduled. The revised dates will be notified later, RBI said. The Reserve Bank is required to conduct at least four meetings of the Monetary Policy Committee in a year. The central bank didn’t give any reason, but the external members for the MPC have not been appointed by the government. This may have forced the central bank to defer the meetings. Even as weak demand hurts the economy, the RBI had refrained from cutting the benchmark lending rate, leaving the rate unchanged at 4 per cent in the last MPC meeting. However, it continued to maintain the accommodative stance in the wake of weak growth numbers and the adverse impact of the coronavirus pandemic on the economy. Read more

Indian economy will take longer to recover: RBI

Indian economy will take longer to recover: RBI
Tuesday, August 25, 2020
stimulus measures once the cure to Covid-19 is found, the report adds. High-frequency indicators so far pointed to a “retrenchment in activity that is unprecedented in history,” the annual report said, adding, “the improvements that became visible in May and June after the lockdown was eased in several parts of the country, appear to have lost strength in July and August, mainly due to reimposition or stricter imposition of lockdowns, suggesting that contraction in economic activity will likely prolong into the second quarter.” The central bank noted that the shock to consumption is severe, and it will take quite some time to mend and regain the pre-pandemic momentum. Read more

Public Sector Banks face fresh capital shortages as coronavirus aftermath: Moody's

Public Sector Banks face fresh capital shortages as coronavirus aftermath: Moody's
Friday, August 21, 2020
Public sector banks in India will need external capital injection of Rs 1.9-2.1 trillion over the next two years to restore loss absorption capacity, according to Moody’s. The most likely source of capital to plug these capital shortfalls is the government, despite its completion of a large recapitalisation just a few months ago. Uncertainty surrounding India's economic recovery and the ongoing clean-up of balance sheets are making it difficult for banks to raise equity capital from markets, the rating agency said in a statement. "PSBs dominate India's banking system, meaning any failure could jeopardise financial stability Moody’s, said. The sharp slowdown in India's economic growth, exacerbated by the coronavirus outbreak, will hurt public sector banks' (PSBs) asset quality and drive up credit costs. The Non-Performing Loans (NPLs) ratio will rise to 14.5 percent by March 2022 from 11 percent as of March 2020.

RBI:Repo rate unchanged at 4%; stance accommodative

RBI:Repo rate unchanged at 4%; stance accommodative
Thursday, August 6, 2020
The RBI today(6th August 2020) decided to keep the benchmark repo rate unchanged at 4 percent, already the lowest since 2000, and reverse repo rate at 3.35 percent. The six-member Monetary Policy Committee (MPC) of the RBI, headed by the Governor Shaktikanta Das, announced the decision after its 24th two-day bi-monthly meeting. RBI had last revised its policy rate on May 22, in an off-policy cycle to perk up demand by cutting interest rate to a historic low. Governor Shaktikanta Das said the MPC voted to keep interest rate unchanged and continue with its accommodative stance to support growth. "Global economic activity has remained fragile. A surge in Covid-19 cases has subdued early signs of revival, said Das, adding: "Economic activity had started to recover, but a surge in infection has forced imposition of lockdowns." Supply chain disruptions were persisting and inflationary pressures were evident across segments, he said. Read more

5+3+3+4 structure and 10+2 system: New National Education Policy

5+3+3+4 structure and 10+2 system: New National Education Policy
Friday, July 31, 2020
In major “school to college” reforms, the government on July 28 unveiled the new National Education Policy that restructures school education by setting out 3-6 years as pre-school age and dilutes the emphasis on board exams, among other changes. One of the sweeping reforms is the transition from the decades-old 10+2 format to the 5+3+3+4 structure. The policy aims at transforming the pedagogical structure from the existing 10 years + 2 years to a more inclusive transition from foundational to the secondary stage. The 5+3+3+4 structure brings into the fold the already existing playschools within the ambit of ‘formal education'. With the 5+3+3+4 system of education, the 10+2 system would not change in terms of the years a child spends within the formal education system in the country at the school level. The new structure brings into the fold the already existing playschools within the ambit of ‘formal education’.

YES Bank hits 10% lower circuit after FPO shares list for trading

YES Bank hits 10% lower circuit after FPO shares list for trading
Monday, July 27, 2020
Private sector lender Yes Bank’s shares were locked in 10 % lower circuit at Rs 12.30 on the BSE on Monday after the listing of fresh shares allotted in the follow-on public offer (FPO). The stock was trading at Rs 12.30 per share, down from its previous close of Rs 13.65 apiece. 12,504 million equity shares of YES Bank are listed and admitted for trading on the exchange with effect from July 27, 2020. The private sector lender raised Rs 14,272 crore through the FPO, which was subscribed 95 per cent. The issue opened on July 15 and closed two days later.FPO had sailed through only due to the lender's underwriting agreement with SBICap, wherein the latter agreed to underwrite Rs 3,000 crore at a price equal to or the lowest end of the price band. YES BANK stock has consistently been falling since the pricing announcement of the FPO. It has fallen 54 per cent from the level of Rs 26.65 on July 9, 2020. There were pending sell orders of 41,640,911 shares, with no buyers available. Read more

Fin Min invites bids for advising it on the proposed initial public offer of LIC

Fin Min invites bids for advising it on the proposed initial public offer of LIC
Friday, June 19, 2020
The Finance Ministry today (19th June 2020) Kick-started the process of LIC disinvestment, by inviting bids from consulting firms, investment bankers, and financial institutions for advising it on the proposed initial public offer. The government proposes to engage up to two pre-IPO transaction advisors, for assisting the Department of Investment and Public Asset Management (DIPAM) in the preparatory processes leading to the Initial Public Offer (IPO) of Life Insurance Corporation of India (LICI), tipped to be the largest ever in the country. The advisors can submit their bids from today till July 13, 2020. The bids would be opened by DIPAM on July 14. Read more

Whether Govt is planning to privatise some PSBs?

Whether Govt is planning to privatise some PSBs?
Monday, June 8, 2020
The Centre is likely to designate the banking/financial sector strategic under the new privatisation policy, the contours of which are nearing finalisation. According to sources discussions had also been held on privatising some state-owned banks that are not on the consolidation list so far. As part of the ‘Atmanirbhar Bharat’ package and according to the new privatisation policy, announced by FM Nirmala Sitharaman the government will come up with a list of strategic sectors. In each strategic sector, no more than four state-owned companies will exist. After the latest round of consolidation of public sector banks, there are currently 12 PSBs. Read more

Global supply chain being reconfigured : India must smartly restructure its economy

Global supply chain being reconfigured : India must smartly restructure its economy
Tuesday, May 26, 2020
Covid-19 has changed the collective calculation of uncertainty, experts feel now. It is more global in scope, more profoundly impactful, and much more complex than any crisis that countries and companies have ever experienced. Now it is required to confront the uncertainty head-on and build it into decision-making. The recent announcements of Govt of India to revive and restructure India’s economy, with multiple policies that will find common cause with another fallout of the contagion — possible reconfiguring of the global supply chain by multinationals. Read more

Wall Street rebounded as investors pinned their hopes on policy easing by major central banks

Wall Street rebounded as investors pinned their hopes on policy easing by major central banks
Tuesday, March 10, 2020
Wall Street rebounded on 10th March (Tuesday) as investors pinned their hopes on policy easing by major central banks after global markets plummeted in the previous session on fears of a coronavirus-driven recession. Traders now expect the Federal Reserve to cut interest rates for a second time this month, with President Donald Trump adding pressure to bring U.S. rates down to the level of "competitor nations". After strong gains at the open, all three indexes briefly traded in the red, as investors weighed the effectiveness of additional monetary stimulus to combat the virus outbreak. The indexes quickly reversed course to trade higher again as a report said the Trump administration had discussed a 90-day payroll tax suspension. The utilities and consumer staples commonly considered bond proxies were among the biggest decliners, after showing resilience in Monday's rout. Rate-sensitive financial stocks firmed 1.2 percent as US Treasury yields bounced off record lows.

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