#1. Bull run continues in Indian stock markets, shrugging off Asian blues
Indian equity benchmarks have soared to new records after shrugging off concerns of tepid Chinese growth. The Sensex closed at a record level of 66,589.93 points, up 0.8 percent from previous close. It beat Friday’s closing high of 66,060.90. The Nifty reached a fresh all-time high of 19,731.85 points before closing at 19,711.45, up 0.75 percent. Since the lows of March, foreign investors have been net buyers of local stock worth more than Rs 78,000 crore.
Why it’s important: China is slowing down, diverting fund flows into Indian markets. There are, however, concerns the market is becoming overheated, as the volatility index has surged nearly 6 percent.
#2. India pulls 135 million out of poverty in five years since 2015-16
An estimated 135 million Indians were pulled out of multidimensional poverty between 2015-16 and 2019-21, with Bihar and Uttar Pradesh accounting for 56.8 million, a report by the Niti Aayog said. Some 24.9 percent of India’s population were assessed as multidimensionally poor in 2015-16, which declined to 15 percent in 2019-21. In rural areas, the share declined from 32.6 percent to 19.3 percent, while urban areas reported a drop from 8.7 percent to 5.3 percent.
Why it’s important: The reduction was mainly due to improvements in housing, sanitation, water supply and electricity. The estimates do not measure the monetary aspects of poverty, not updated since 2011-12.
#3. HDFC Bank reports 30 percent increase in net profit on lower provisions
HDFC Bank posted a 30 percent rise in net profit, driven by lower provisions for loan losses and increased other income. The first-quarter results do not include earnings of the merged entity, which took effect on July 1. Net profit rose to Rs 11,951.7 crore for the quarter ended 30 June from Rs 9,196 crore a year earlier. Net interest income increased 21.1 percent to Rs 23,599.1 crore.
Why it’s important: The bank went beyond expectations of analysts although it missed sequential projections in asset quality and net interest income. Its retail book is expected to outpace bulk loans.
#4. Corporate advertising spends to surge 20-25 percent in second half of 2023
Advertising spends are expected to surge a record 20-25 percent on year in the second half of 2023, spurred by the cricket world cup and the festive season. Spending is expected to be led by sectors like e-commerce, FMCG, travel and hospitality, apparel, fintech, banking, retail, and automobiles, among others.
Why it’s important: The spike would be due to launches postponed till June, either because of unseasonal rains or inflationary pressures, which will make a comeback in the second half of the year.
#5. Dunzo seeks additional $20 million from Reliance Retail after falling short of target
Dunzo is seeking at least $20 million (Rs 165 crore) more from Reliance Retail, its largest shareholder, after the cash-strapped quick commerce startup fell short of its target to raise $75 million by offering convertible notes. The firm could raise just about $45 million in April, with only Reliance Retail and Google subscribing to the convertible notes and other shareholders staying away.
Why it’s important: Falling short of the fundraising target has landed the company into an adverse cash flow situation. It is unclear whether Reliance would agree to the additional investment.
#6. Temasek Holdings lining up $10 billion to invest in India in the next three years
Singapore’s state-owned investor Temasek Holdings intends to invest $9 10 billion in India over the next three years to cash in on the rising opportunities in consumer retail, healthcare and eco-friendly businesses, India head Ravi Lambah has said. The firm on an average invests $1 billion a year in India, but it has already exceeded the target in 2023-24 due to its $2 billion investment in the Manipal Group.
Why it’s important: Temasek, which has till now invested just 6 percent of its $287 billion portfolio in India, sees increased opportunities in the country that are well aligned with its investment themes.
#7. US to work with India to spur energy transition through increased private investments
The US will work closely with India on an investment platform to lower the cost of capital and increase private investment to speed up India’s energy transition, Us treasury secretary Janet Yellen has said. India and the US held bilateral discussions on the sidelines of the third meeting of the G20 Finance Ministers and Central Bank Governors.
Why it’s important: The increased private investment in India’s energy transition would be incumbent on faster reforms in the country. India already offers several incentives, and more are set to follow.
#8. Rajiv Jain’s GQG Partners buys 5.96 percent stake in Patanjali Foods, sparking rally
Rajiv Jain’s GQG Partners has purchased a 5.96 percent stake in Patanjali Foods in its offer for sale. Patanjali had set a floor price of Rs 1,000 a share to sell 25.3 million shares. GQG Partners has now become the largest public shareholder of Patanjali Foods. Following the announcement, shares of Patanjali Foods jumped 2.91 percent.
Why it’s important: Rajiv Jain has made a name for taking contrarian bets. He surprised many after deciding to invest in Adani Group shares despite a market rout earlier this year.
#9. Belgium’s Proximus Group set to purchase Route Mobile for up to Rs 8,598 crore
Belgium’s Proximus Group has agreed to acquire a 57.56 percent stake in Route Mobile from the promoters of the Indian firm for Rs 5,922 crore. In a related transaction, Clear Bridge Ventures, an affiliate of the promoters of Route Mobile, will buy a 14.5 percent non-controlling stake in Proximus Opal for euro 299.6 million.
Why it’s important: The acquisition marks one of the largest cross-border deals in the communication space in India. Route Mobile, which went public in September 2020, provides communication solutions, including automated texts, WhatsApp notifications, voice-based services,
and emails.
#10. Zee’s board forms interim panel as Punit Goenka fails to overturn regulator ban
The board of directors of Zee Entertainment Enterprises has formed an interim committee of senior executives to run operations after managing director Punit Goenka’s appeal for relief from a market regulator order barring him from holding key positions in listed firms failed. The interim committee will be under the supervision of the board and will seek its guidance on all matters related to the firm.
Why it’s important: The development comes at a time when a proposed merger between Zee and Sony India is nearing completion as it has obtained regulatory nods.
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