MC Insider: HNI market worries, FMCG deal buzz, pharma setback, visa delays hit home, and more

High net worth individuals can become a worried lot in the stock market sometimes. Known for their penchant for chasing the next up and coming trade, they can at times be perturbed about the market's direction when the going gets too good. The recent outperformance of Indian markets to its global peers at a time of heightened global worries is making HNIs uneasy in their comfy office chairs. To protect themselves against a deep downside they have now sought refuge in a rather ignored segment of the market -- pharmaceutical stocks. Whispers in the wind are that the recent rally in pharma stocks is largely thanks to this flight to safety among some HNIs given that the sector's valuations were cheap and its exposure to the current global fear of recession limited. A perfect pill in times of anticipated pain, we say!

Last week on MC Insider, we had put the spotlight on the industrials segment which has enjoyed a helluva lot of attention ever since the big-bang entry of a new player with deep pockets. We had told you that while many suitors may be eyeing south India for a potential deal, the buzz was that a leading aggregator had zeroed in on a target in central India and was very close to signing the dotted line. Well, don’t be surprised if an announcement is made soon!

Private equity investment in the real estate sector jumped by a sharp 40 per cent in the April-September period to hit $2.8 billion, according to a recent study. Well, we have now heard murmurs of a clutch of fundraises on the cards in the segment, and both the aspirants hail from western India, with one mulling an OFS.

A big shark has the tendency to gobble up the small fishes in the sea. Well, that is what is expected to happen again in the Indian FMCG space soon. Rumour has it that a business group which is looking to grow its FMCG business is targeting a firm that supplies wheat derivatives to prominent players in the FMCG space and has beefed up its capacity recently. Remains to be seen if the firm on the prowl pays a premium for an outright purchase or a significant stake.

Global turmoil and volatility seem to have impacted the momentum of this NBFC IPO which had filed for its papers earlier. But according to a little market birdie, a large mutual fund house has now shown interest in the proposed listing subject to a certain valuation cap. Word has it that, based on this new investor, the promoter has started marketing the deal to other potential MFs and investors. Will the south-based parent be able to tap the desired moolah from the stake sale in the IPO?

The announcement from the government on Friday inviting bids for IDBI Bank privatisation has rattled bank employee unions. Going by the announcement, the Centre and LIC will sell up to 60.72% stake in the bank to kick off government's bank privatisation drive. We hear busy discussions are on at trade union strongholds to prepare a counter strategy on privatisation plan to launch nationwide bank strikes. An announcement in this regard is expected soon.

India's health ministry has been miffed with the World Health Organization for first putting a question mark on the violation of good manufacturing practice standards by its home-grown COVID-19 vaccine and then projecting coronavirus deaths for the country that were far higher than the official figures. The world health agency taking up the case of cough syrups by an Indian drug maker that has been linked with the deaths of 66 African kids has come as another jolt for the powers that be who are yet to overcome the previous shockers. What has annoyed them more is the fact that the WHO head went public about the incident. "They should have definitely flagged the issue but kept it limited to the official channels," said a senior bureaucrat. Now, public humiliation and loss of reputation definitely hurts more when one is trying hard to project the country as the "pharmacy of the world"!

Due to the unusually long waiting period for issuance of visas by several countries including the US and UK, MEA officials were recently hit with a barrage of calls and messages by an army of stressed out travellers. And the SOS queries came from near and dear ones, batchmates, and sometimes even senior officers! Guess what the MEA staff did to wriggle out of the turbulent situation? They all followed the same template for their WhatsApp profile which says loudly and clearly – NO TO VISA!!!