market

Malhotra to head Investment Banking of HSBC

15 : The Hongkong and Shanghai Banking Corporation Limited (HSBC) has appointed Amitabh Malhotra as the Head of Investment Banking for HSBC India. Amitabh will lead the Investment Banking and Equity Capital Markets business. Prior to HSBC, Amitabh worked at Rothschild India, where he was the co-head and managing director of the Global Investment Bank, based in Mumbai.

PAN verification during FPI share allotment

Markets regulator SEBI has said that allotment of shares to foreign portfolio investors (FPIs) in initial public offers would need to be verified with PANs. This step is taken as a check against any breach of investment limit through multiple entities. Under the rules, purchase of equity shares of each firm by a single FPI would have to be below 10% of the firm’s total issued capital.

Australia releases India economic strategy

The Australian govt has released an India Economic strategy report recommending to lift India into its top three export markets. The strategy prioritizes economic and trade opportunities in India covering 10 sectors such as health, energy, infrastructure etc. This would also boost Australia’s investment in India to $100 billion. The Author of this report is Australia’s PM Malcolm Turnbull

SEBI to come out with consultation paper

The Securities and Exchange Board of India (SEBI) will soon come out with a consultation paper on making it mandatory for large corporates to meet one-fourth of their financing needs through bond market. SEBI will discuss with stakeholders before finalising the framework for corporates. SEBI is the regulator for the securities market in India and its chairman is Ajay Tyagi.

HDFC Group’s market cap crosses ? 10 trillion

Market capitalisation of Deepak Parekh-led financial services conglomerate – HDFC Group has crossed the ?10 trillion mark. HDFC group is the 2nd Indian business house after the Tata group to achieve this feat. The group has 4 listed companies – Housing Finance Development Corp, HDFC Bank, HDFC Standard Life & Gruh Finance. HDFC Bank is India’s 3rd most valued firm in terms of market cap.

PSU banks plan to raise over 50,000 cr

Public sector banks are planning to tap the markets to raise more than Rs 50,000 crore this fiscal. Out of 21 public sector banks, 13 have already taken the approval of their boards or shareholders for raising capital through the equity market. Capital is very much required for these banks as they are saddled with non-performing assets (NPAs) of about ` 10 lakh crore.

Most valuable bank in the emerging market

HDFC Bank has gone past Russia’s Sberbank to become the most valuable bank in the emerging market outside China. HDFC Bank was one of the top performing major banks globally in 2017. The Bank’s current market capitalization is $78.4 billion. Globally, America’s JPMorgan Chase is the most valuable with a market cap of $353 billion, followed by Bank of America at $282 billion.

Rupee among top 10 EM currencies

The rupee has been ranked as one of the 10 best-performing currencies, beating rivals like Real and Rand ever since the NDA government came into power in May 2014. Although all emerging market currencies have lost value to the dollar, rupee’s slide is relatively controlled compared with peers. In the 4 year period, the dollar index gained 17% compared with 14.2% loss in the rupee’s value.

FPI outflow hits 10-year high at Rs 48,000 cr

Overseas investors have pulled out nearly Rs 48,000 crore from Indian capital markets in the first 6 months of 2018, making it the steepest outflow in a decade. They withdrew Rs 41,433 crore from the debt markets & Rs 6,430 crore from equities during Jan-June period. This is only the second time, when FPIs had taken bearish stance on the capital markets in the first 6 months of the year.

Govt to link 22,000 rural markets to e-NAM

Centre has announced that 22,000 rural markets would be linked to Electronic National Agriculture Market (e-NAM) by 2020 as part of its drive to double the income of farmers. These rural markets will be upgraded to Gramin Agricultural Markets & linked with e-NAM to enable farmers to sell directly to potential buyers. e-NAM is an electronic unified national market for agricultural commodities

TAC Security launches ESOF

India and USA-based cyber security solutions provider TAC Security has announced a new platform, ESOF (Enterprise Security on One Framework). It would provide organisations to manage their entire IT security and risk assessment needs in one single platform. According to the latest reports the cyber security market in India is projected to grow at a CAGR of 19% during 2018-2023.

RBI allows banks to spread MTM losses

The Reserve Bank allowed banks to spread their mark-to-market (MTM) losses for the June quarter as well. The central bank had also asked banks to build an Investment Fluctuation Reserve (IFR) of 2% of their holdings. In April, RBI had given banks an option to spread provisioning for MTM losses recorded on their investment portfolio

Microsoft becomes third most valuable firm

Microsoft has surpassed Alphabet, in the market capitalisation for the first time in 3 years, becoming the 3rd most valuable firm after Apple & Amazon globally. On May 29, 2018, Microsoft reportedly had a market cap of $753 billion at the close of trading, almost $14 billion ahead of Alphabet. Apple leads with a market cap of $924 billion & Amazon is at second spot with nearly $783 billion.

First company to achieve Rs 7 lakh crore m-cap

Tata Consultancy Services’ market valuation briefly crossed the Rs 7-lakh crore mark on May 25, 2018, making it the first company to achieve this milestone. TCS is the country’s most valued firm, followed by Reliance Industries, HDFC Bank and Hindustan Unilever Limited. TCS recently became the first Indian company to close the trading session with over USD 100 billion market valuation.

MCX launched India’s first copper options

India’s Multi Commodity Exchange has launched country’s first copper options contracts. It will provide physical market participants an additional instrument to hedge their risk. Option contracts were launched with a lot size of 1 tonne in 3 contracts expiring in June, August and November 2018. Copper ranks as the 3rd most-consumed industrial metal in the world, after iron & aluminum.

India 3rd largest solar market in world

According to Mercom Communications India, India emerged as the third largest solar market in the world in 2017 behind China and the US. As per the report, India set a new record with 9.6 GW of solar installations in 2017, which was more than double the 4.3 GW installed in 2016. The robust growth boosted the country’s total solar installed capacity to 19.6 GW as of December 2017.

Largest remittance-receiving country in world

According to the report ‘RemitSCOPE – Remittance markets & opportunities – Asia & the Pacific’, India was the largest remittance-receiving country in the world in 2017. India with $69 bn, China with $64 bn & Philippines with $33 bn were the 3 largest remittance-receiving countries in the world in 2017. According to the report, cash-to-cash transactions was the most common form of transfer.

NSE introduces ‘managed co-location services’

In order to facilitate small and medium-sized trading members, NSE introduced a facility of ‘managed co-location service’. In this facility, space will be provided to vendors along with provision for receiving market data. This facility enables the co-located entities to access the trade/order related data before other non-co-located entities.

RBI announced Rs.10,000 crore bond purchases

The Reserve Bank of India has announced that it would buy Rs. 10,000 crore of government bonds via Open Market Operation (OMO). The move could bring some relief to the bond market which is reeling under the pressure of rising yields despite a slew of regulatory measures. Since the start of 2018, the yield on the 10-year benchmark bond has gained 40 basis points to 7.73%.

SEBI proposes changes to public issue norms

SEBI has proposed some changes in public issue norms, including shorter time period for price band announcement & lesser disclosures about group companies at time of IPO. The time period for announcing price band for Initial public offerings (IPO) will be reduced to 2 working days from current 5 days. These proposals are based on suggestions made by SEBI’s Primary Market Advisory Committee.

Exchanges allowed to extend trading time

Markets regulator SEBI allowed stock exchanges to extend trading in equity derivatives by over 8.5 hours to bring the timings in line with commodity markets. It has allowed exchanges to set trading hours in equity derivatives between 9:00 am and 11:55 pm, effective October 1, 2018. As of now, trading is allowed from 9:15 am till 3:30 pm.

RBI liberalized ECB norms

RBI has further liberalized norms for external commercial borrowing that will allow Indian companies to access cheaper funds from overseas markets.According to new norms, RBI has stipulated a uniform all in cost ceiling of 450 bps over benchmark rate.RBI also decided to increase the ECB Liability to Equity Ratio for ECB raised from direct foreign equity holder under automatic route to 7:1.

Rahul Bhatia as interim CEO of Indigo

InterGlobe Aviation Ltd.’s director Rahul Bhatia has taken over as the interim chief executive officer after its president and director Aditya Ghosh unexpectedly resigned.Indigo is jointly owned by Rahul Bhatia and Rakesh Gangwal. Indigo is the biggest airline in India and the biggest budget airline in Asia by market valuation.

RBI eases rules for foreign investors

RBI has removed the restriction that limited foreign investors to only investing in government and corporate bonds with tenures of three years or more.This decision can bolster the domestic bond market. The move comes after weak investor interest in two recent auctions that led to a spike in sovereign debt yields.

India, World Bank sign agreement

25 : The World Bank signed a loan agreement with India for IBRD credit of $125 million for the “Innovate in India for Inclusiveness Project”.The objectives of the project are to nurture indigenous innovation, foster local product development. The project would support consortia of the public, private, and the academic institutions to overcome the key market failures.

India, UAE to engage on skill harmonisation

India and the UAE have agreed to work together for harmonisation of skills that aims to match India’s programmes for upskilling workers with the requirements of job market in the Gulf nation.This will help meet the skill demands of the UAE’s employers.The two governments announced a partnership to strengthen the certification and joint recognition of skills.

ICICI Bank launched digital form

ICICI Bank has introduced a ‘digital form’ which will help open current accounts in a few hours in comparison to an industry average of a few days.Bank officials would now be able to capture information about customer & business digitally & verify KYC documents in real-time. Digital forms are expected to help bank secure more clients & help increase bank’s market share.

1st Indian company with $100bn market cap

Tata Consultancy Services has moved closer to the $100 billion mark in market capitalisation as its share price surged nearly 7%, adding about $6.2 billion to its valuation.The IT major is set to be the first listed Indian company to achieve this milestone. TCS is the leading the chart as the most valued firm followed by Reliance Industries, HDFC Bank, ITC and HUL.

Delhi to host third annual 5G India Congress

The 3rd edition of the Annual 5G India Congress 2018 will be held on April 20 in New Delhi.5G Indian Congress 2018 will focus more on understanding and analysing current Network infrastructure and its developments, 5G market condition and requirements. The Indian Government has plans to roll out 5G by 2020. 5G will enable individuals, govts & companies to remain in sync in real time.

Amazon launched ‘Internet’

Amazon has launched an Android web browser app called ‘Internet’ for emerging markets.The browser doesn’t occupy much storage space on a user’s device & does not collect private data like other browsers. The app is only available to users in India for the time being & is supported on devices running Android 5.0 or higher

IISL launches Nifty 200 Quality 30 index

IISL has launched Nifty 200 Quality 30 index, which will track the performance of select firms based on profitability and earnings growth variability.Index includes top 30 companies from its parent Nifty 200 index, selected on the basis of their ‘quality’ scores. Weight of each stock in the index will be based on a combination of stock’s quality score & its free float market capitalization.

M&M joins Rs 1-trillion m-cap club

Mahindra & Mahindra Ltd entered the coveted Rs 1 trillion market capitalisation club, after its share price hit a fresh 52-week high on the BSE.Following the jump in its m-cap, M&M has joined the ranks of Ultra Tech Cement, Power Grid Corporation, and IndusInd Bank.The company’s market capitalisation (m-cap) jumped to ` 1,01,829.91 crore.

Kotak Mahindra became 2nd most valuable bank

Kotak Mahindra Bank Ltd beat India’s largest lender State Bank of India (SBI) for the first time to become the second most valued bank in the country.HDFC Bank Ltd remained country’s most valuable bank with a market capitalization of ` 5.04 trillion. Kotak Mahindra Bank has a market capitalization of ` 2,22970.40 crore.

Kotak Mahindra Bank Pips SBI to Become India’s 2nd Most Valuable Bank

Shares of private lender Kotak Mahindra Bank Ltd beat India’s largest lender State Bank of India (SBI) for the first time to become the second most valued bank in the country. Data from BSE showed that Kotak Mahindra Bank has a market capitalization of Rs2,22,560.69 crore after its shares rose 1.7%. SBI market capitalization stood at Rs. 2,22,043.74 crore. Its shares were trading at Rs248.80 on BSE, down 1% from its previous close. Uday Kotak is the Executive Vice Chairman and Managing Director of Kotak Mahindra Bank. Its headquarters in Mumbai. HDFC Bank Ltd is the country’s most valuable bank with a market capitalisation of Rs5.04 trillion.

Startups with up to ?10 cr to get concession

The government has allowed startups to avail tax concession if total investment including funding from angel investors does not exceed ?10 crore.Several startups and investors had raised concerns over the ‘angel tax’ saying it could discourage investments. The tax was levied on capital raised by startups in excess of the fair market value of their shares.

India pips Germany to be No. 4 car market

India has become the fourth-largest passenger vehicle (PV) market globally for the first time ever, unseating Germany, in January and February 2018.With sales of 5,60,806 units in the first two months of calendar 2018, India overtook Germany’s tally of 5,31,100 units. India is behind China, US and Japan. Germany in the 5th position, followed by Brazil and France

Trouble in Flipkart-Amazon merger

The possible coming together of online retailers Amazon and Flipkart is likely to face close scrutiny on competition issues.Engaged in intense competition, home-grown Flipkart and Amazon India are leading players in the Indian online retail market place. The combined market share of the two parties, which is around 80 percent is most likely to pose challenges to the deal.

SEBI eases trade rules in commodity exchanges

To relax algorithm trading norms at commodity derivatives exchanges, SEBI raised the limit to process up to 100 orders per second by a user for such trade from the existing limit of 20 orders per second.Algorithmic trading or ‘algo’ in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models. ‘Algo’ is used by large institutional investors.

Arbitrage rate index launched by BSE

Asia Index, a joint venture between S&P Dow Jones Indices and Bombay Stock Exchange (BSE), has launched arbitrage rate index.It will provide market participants with a transparent benchmark to compare the performance of similar arbitrage strategies. The index will be rebalanced every month, effective after the close of business a day prior to the expiration of the futures contract.

RBI lets banks spread bond losses

3 : The Reserve Bank of India allowed banks to spread out the provisioning to cover losses on their government bond portfolio across four quarters.This dispensation to spread the so-called mark-to-market provisioning is available for the quarters ending December 2017 and March 2018. Banks using such option will have to make the disclosure in their notes to accounts of the quarterly results.

Manipur-based black pottery gains prominence

The Manipur-based indigenous “Longpi Hampai pottery” has started gaining prominence in the international markets owing to its intricate designs and technology used to produce them.The ancient art has originated from two Longpi villages in Manipur namely Longpi Khullen and Longpi Kajui near Ukhrul district.It is practised by Tangkhul community residing in the hill district of Manipur.

Hyderabad tops in Global City Momentum Index

Hyderabad has been ranked the top city in the short-term Momentum Ranking of JLL’s annual ‘Global City Momentum Index’.The report identifies urban economies and real estate markets which are currently undergoing the most rapid growth. The report ranked Bengaluru, Pune, Kolkata and Delhi in top 10 cities.

RBI changes methodology for bond valuation

To prevent the possibility of manipulation in the prices of securities, especially government securities, the RBI has changed the methodology used by debt market players for their valuation.Security/bond valuation will be based on the weighted average price of the last half-an-hour of trading. The methodology as to how the bonds are valued is crucial for mark-to-market purposes.

Govt invited bids to sell 76% in Air India

The government invited bids to transfer management control along with 76% equity in Air India. The government will retain 24% stake in Air India and its subsidiary Air India Express. It also proposed divesting 50% of its stake in Air India Sats Airport Services. Air India is the country‘s flag air carrier with a significant market position in international and domestic operations.

SEBI clamps down on derivative markets

SEBI tightened the derivative markets framework to curb speculations and prevent small investors from entering the high-risk space. It also accepted the majority of the recommendations made by the Uday Kotak Committee on corporate governance. It introduced a concept of =product suitability‘ under which investors will have to show income or knowledge proof to deal in the derivatives segment.

India is the 4th largest automobile market

India‘s automobile sales, including passenger and commercial vehicles, grew 9.5 percent and more than 4 million units in 2017 were sold, making the country world‘s fourth-largest automobile market. India beat Germany to take the 4th position. Maruti Suzuki India, which makes up 80 percent of the market, continues with its lead in passenger vehicles.

Vodafone and Birla announce leadership team

Vodafone Group and Aditya Birla Group have appointed Balesh Sharma as Chief Executive Officer of an entity created by the merger of their local telecom units. It will become India‘s largest mobile phone operator by subscriber and revenue market share and be better placed to compete in a market savaged by price competition. Akshaya Moondra will be appointed as Chief Financial Officer (CFO).

SEBI raises currency derivative

17 : Capital markets regulator SEBI raised the exposure limit under exchange-traded currency derivatives trading for residents and FPIs to USD 100 million across all currency pairs involving the Indian rupee. The move will help entities engaged in forex transactions to maintain their currency risks in a better manner. Earlier, there were two different sets of limits based on currency pairs.

Govt to Celebrate World Consumer Rights Day

The Department of Consumer Affairs is celebrating the World Consumer Rights Day this year with the theme ?Making Digital Marketplaces Fairer? in New Delhi on 15th March 2018. World Consumer Rights Day is an annual international event that signifies celebration and solidarity in the international consumer movement. The event also gives a chance to protest against the market abuses.