1. Reserve Bank of India governor Urjit Patel said rate hikes in the US and the expansionary fiscal policy announced by the Trump administration could disrupt global markets, and emerging ones in particular.He said the same US policy mix had previously led to turmoil, including the Latin American debt crisis, warning that the risks are even bigger now.
2. lakshmi Mittal-led ArcelorMittal and Numetal Mauritius, in which the Ruias are shareholders, are expected to be the two prime contenders for Essar Steel with the deadline for bids scheduled to end on Monday.Tata Steel is the other potential contender but most expect it to be less aggressive than the other two.Vedanta and JSW are unlikely to submit binding offers, making it a predominantly two-way fight, said multiple sources closely following the developments.
3. Banks led by State Bank of India (SBI) plan to move court against last week’s sale of a key raw material pipeline by Srei Infrastructure Fund to a consortium backed by Russian bank VTB and one of the Ruia brothers.The pipeline delivers iron ore to Essar Steel and the consortium is one of the bidders for the bankrupt steel firm.
4. After its clampdown on shell companies, Sebi is turning its glare on ‘benami trading’.The market regulator is trying figure out ways to pull up perpetrators who indulge in insider trading and share price manipulation through ‘layering’ of fund flows. This is an age-old technique of moving money as loan from one company to the next in a chain of nine to ten entities before the last outfit receiving fund buys or sells shares.
5. Hyderabad-based GVK Power and Infrastructure, which is building one of India’s largest airports at the outskirts of Mumbai, will raise up to $1b by issuing dollar-denominated bonds to fund its project and to refinance the current debt.The proposed overseas securities would be of “144A” nature, where institutional investors across Asia, Europe and the US can invest in the papers.
6. The government is mulling using new models of transportation like electric vehicles, hyperloop and personal rapid transit to reduce logistical bottlenecks and high costs faced by trade and boost exports.The commerce ministry plans to evaluate the suitability of these new technologies for freight transport to bring down the costs to less than 10% of the gross domestic product (GDP) by 2022.
7. India is preparing to host the mega inaugural International Solar Alliance Summit in Delhi on March 11 in the presence of more than a dozen leaders, including those from Asia, Pacific and South America, to set the ball rolling for the country’s leadership in providing affordable renewable energy.
8. Ebix Inc, a supplier of software and ecommerce services to the insurance, financial, e-governance and healthcare industries, has emerged as the frontrunner to acquire debt-laden digital education company Educomp Solutions, which has filed for bankruptcy.Ebix trumped a bid by littleknown family office Boundary Holdings, which manages wealth for London-based investor Rajat Khare, a former Educomp director.
1. The Centre is yet to work out the modalities of its MSP-based deficiency payments scheme, but if Madhya Pradesh’s just-concluded Bhaavantar Bhugtaan Yojana (BBY) is anything to go by, the scheme will be a costly one. Market arrivals of crops trying to avail the scheme have shot up by four times in the case of urad as compared to the previous year where there was no such scheme and 50% each in the case of maize and soyabean.The Madhya Pradesh government has spent close to around Rs.2,000 crore for the scheme this year. Since only a small number of farmers are still registered for it, the numbers will increase next year.
2. While the Centre will miss its fiscal deficit target even after cutting capital expenditure in FY18, the states are also compressing capex to finance rising revenue spending and adhere to their deficit targets.The combined capital expenditure of 23 states stood at Rs 2.04 lakh crore in April-December this fiscal, down 2% from Rs 2.08 lakh crore a year ago.
3. The October-December quarter earnings season continues to maintain its steam with most companies posting a decent set of numbers with consumer demand showing signs of picking up.Management commentary has so far been encouraging from most of the companies which have declared results though rising input cost continues to remain a worry.Though signs of modest recovery cannot be ruled out, it would still be early to conclude that a full revival has taken place.Net sales were much above the estimates, growing by 15.23% year-on-year, which also drove up the ebitda margin.
4. The RBI has said that Rs 500 and Rs 1,000 notes, returned to banks when the government demonetised high value currency 15 months ago, are still being "processed for their arithmetical accuracy and genuineness".
5. Finance minister on Saturday asked Securities and Exchange Board of India (Sebi) to take more measures to deepen the corporate bond market. The regulator responded by announcing the release of detailed rules by September on a Budget proposal to mandate listed firms to raise a quarter of their funds via bonds.
1. Coal India on Saturday announced a four per cent increase in consolidated net profit to Rs. 3,004.79 crore in the December quarter as against Rs.2,883 crore during the same period in 2016.While the results are not comparable due to the introduction of GST and change in accounting principles, the company’s total income (net of taxes and including other income) increased by nearly Rs. 950 crore.
2. The ghost of erstwhile drugmaker Ranbaxy seems to have come back to haunt Fortis Healthcare, as their promoter family’s Singh brothers tackle various financial dealings in which they are involved.Fortis’ board meeting this week will seek to clarify on reports alleging that the promoters took about Rs.500 crore out of the hospital company without going through due process.
3. The Finance Ministry has nominated eight tax officers to handle GST-related queries on social media site Twitter, according to an official order. It has been decided to assign the charge of handling of queries related to the Goods and Services Tax on Twitter/Email to the eight officers with immediate effect, it said.
4. ONGC Videsh Ltd and its partners have acquired a 10 per cent in a large offshore oilfield in Abu Dhabi for USD 600 million, the first time any Indian company has set foot in oil rich Emitrate.
5. The war between Indian and foreign bourses seems to be intensifying, with SGX, Singapore’s bourse, making plans to develop a new India equity derivative product.This announcement comes after the National Stock Exchange (NSE) said it was stopping trading of its Nifty index on the SGX.
1. Bank haircuts on NPAs go up to 80%; 9 of 12 firms enter bidding stage.The least loss is likely to be in case of Bhushan Steel, for which JSW Steel has offered Rs 280 bn of cash and equity worth Rs 17 bn to banks.
2. Panel on cryptocurreny expected to submit report within the next two months.While cryptocurrencies are illegal, the government and regulators are aware of the need to set the template for a cashless future.
3. RBI to get another liquidity management tool in standing deposit scheme.There is no more market stabilisation scheme, says Economic Affairs Secretary S C Garg.
4. MNCs lose race for stressed assets, plan to take action against advisors.The two MNCs were planning to take 'appropriate action' against their advisors.
5. Rashtrapati Bhawan to host the Pradhan Mantri LPG Panchayat on Tuesday.So far more than 33.6 million LPG consumers across 712 districts have been registered under the ambitious LPG scheme.
1. Banks are rethinking plans to sell bad loans under resolution in bankruptcy courts to asset reconstruction companies (ARCs), after State Bank of India and Indian Banks’ Association expressed their displeasure.Union Bank of India and Bank of Baroda (BoB) are looking to sell their exposure in Bhushan Steel Ltd to SSG Capital owned Assets Care & Reconstruction Enterprise Ltd in an all-cash deal.
2. Oil firms propose new MDR, banks yet to agree.Oil firms, which are paying MDR, or card transaction fees, to banks on behalf of their dealers for a year now are trying to reduce their financial burden, while banks fear a lower MDR would hurt them.
3. Eduvanz Financing Pvt. Ltd, an education technology start-up that provides loans for skill development to students, has raised $500,000 in a round of funding led by Blinc Advisors, a venture capital fund, a senior executive at the start-up said.
4. Aditya Birla Capital Ltd (ABCL), the financial services business of the $50 billion Aditya Birla Group, will begin investing in its asset reconstruction company (ARC) and start business this quarter.
5. Regulator National Housing Bank (NHB) is looking to offer a “credit enhancement scheme” for housing finance companies (HFCs) by guaranteeing a portion of their bond issue, a move that is likely to help small housing finance firms access the capital market.The regulator for HFCs will shortly introduce a pilot scheme, two senior NHB officials said. To begin with, the NHB will guarantee the bond or debenture issues of HFCs up to 30% of the issue size or to a maximum of Rs.25 crore.
6. Telcos want licence fee, spectrum usage charges to be treated as tax.COAI plans to lobby the government to treat levies such as spectrum usage charges and licence fee paid to the DoT as tax so that operators can claim input credit.