#1. India’s stock markets extend losses as overseas investors continue to sell
Benchmark gauges closed in negative territory for the third consecutive trading session on sustained selling by foreign portfolio. Both Nifty and Sensex plunged 1.2 percent to their intraday lows before paring losses to end 0.7-0.8 percent lower each at 19,381.65 and 65,240.68 points. Buying by domestic funds in the last 45 minutes of trading contained the losses. The rupee weakening to 82.73 to the dollar.
Why it’s important: The downward pressure on equities could continue as foreign investors continue a flight back to safety to dollar and US bonds. Local investors are making use of the dip to buy more.
#2. India’s GDP to double by March 2031, growing at an average of 6.7 percent every year
India’s GDP is likely to double by March 2031, S&P Global has said in its latest projection, which implies an an average annual growth of 6.7 percent from the current financial year to 2030-31. Capital accumulation would be the main driver of growth, S&P said in its report. India’s GDP would be $6.7 lakh crore by 2030-31 from $3.4 lakh crore currently. Per capita GDP would rise to around $4,500.
Why it’s important: The medium-term expansion potential of the Indian economy remains good amid challenges of uneven growth. Private investment needs to revive to achieve such high growth consistently. #3. India’s services sector growth surges to 13-year high in July
India’s services sector growth hastened to a 13-year high in July as demand swelled, according to the S&P Global India Services Purchasing Managers’ Index. The gauge rose to 62.3 in July from 58.5 in June and 61.2 in May, the highest index reading since June 2010. It came against a Reuters poll forecast of 58.
Why it’s important: India’s services expansion has held consistent since August 2021, staying the longest in the positive zone since August 2011. The resilience underlines its vital role in the continuing health of the Indian economy.
#4. Government imposes import curbs on laptops, tablets & personal computers
The Indian government has imposed import restrictions on laptops, tablets, and servers to establish the country as a hub for electronics manufacturing. Effective immediately, importers will need permits to bring in laptops, tablets, all-in-one personal computers, ultra-small computers, and servers, the Directorate General of Foreign Trade said.
Why it’s important: Imports of these items has surged in recent years. The restrictions will significantly hit companies such as Apple, Dell, Lenovo, and HP, which are largely dependent on imports.
#5. Data protection bill tabled in Parliament; Rs 250 penalty for data breach
The central government has tabled the Digital Personal Data Protection Bill in the Lok Sabha. The bill proposes penalties of up to Rs 250 crore per instance in the case of a data breach, lower than the Rs 500 crore fine proposed in the earlier draft issued in November. It permits the transfer of personal data to any country except those the government may blacklist.
Why it’s important: This is the government’s second attempt to create a law to govern data privacy. It allows for data processing without user consent under certain circumstances, such as medical emergencies, disasters, court orders, and government agency requirements, raising concerns.
#6. Blackstone looks to buy entire 33.47 percent promoter stake in drugmaker Cipla
Blackstone, the world’s largest private equity fund, is set to submit a non-binding bid next week to acquire the entire 33.47 percent promoter stake in Cipla, India’s third-largest generics company by revenue. The move by Blackstone would trigger an open offer for an additional 26 percent of the company and could end up owning as much as 59.4 percent of the drugmaker.
Why it’s important: The deal, if successfully concluded, would be one of the largest private equity-led buyouts in the Indian market. Cipla has been a crusader for affordable medicines, and it remains to be seen whether Blackstone would continue with that strategy.
#7. Auditing regulator refers matter concerning Byju’s to disciplinary committee
The Institute of Chartered Accountants of India has referred the case concerning edtech unicorn Byju’s to its disciplinary committee to decide on the further course of action. The financial reporting review board of the institute has been examining the financial disclosures of Byju’s, and has raised certain issues, which the disciplinary committee will investigate.
Why it’s important: Deloitte Haskins & Sells recently resigned as the statutory auditor of Byju’s, citing a long delay by the company in furnishing audited financial statements for 2021-22.
#8. Davidson Kempner starts rejigging board of Aakash, wholly owned by crisis-hit Byju’s
Davidson Kempner has started reconstituting the board of Aakash Educational Services, a wholly owned subsidiary of cash-strapped Byju’s, India’s most valued edtech start-up. The hedge fund will induct at least four new independent and nominee directors in the test-prep unit of Byju’s parent Think & Learn. The new board is expected to take charge within a fortnight.
Why it’s important: this is an attempt by the hedge fund to turn around and improve the governance at Aakash. Byju’s have been facing a series of crises in recent times, including allegation of misgovernance.
#9. KKR considers bidding for Cliantha Research owned by promoters of Zydus Lifesciences
KKR and company is weighing a bid for Cliantha Research, the clinical research organization owned by Pankaj Patel and family, promoters of Zydus Lifesciences. The asking price is said to be $200 million. Investment bank Moelis and company is managing the sale on behalf of the Patels, as Cliantha is not part of the publicly traded Zydus Lifesciences.
Why it’s important: Investor interest in healthcare has been high. KKR is looking to significantly build up its pharma and healthcare portfolio in India as the two sectors show robust growth and healthy margins.
#10. Adani’s Ambuja Cements acquires Sanghi Industries in Rs 5,000 crore transaction
Gautam Adani-owned Ambuja Cements is acquiring smaller rival Sanghi Industries at an enterprise value of Rs 5,000 crore. The acquisition, expected to conclude in the next 3-4 months, will entail purchase of 56.74 percent shares from Sanghi Industries’ promoter group comprising Ravi Sanghi and family, and another 26 percent of the voting share capital pursuant to the open offer.
Why it’s important: This is the Adani Group’s first major deal since a damning report by a short seller led to a rout of its listed firms earlier this year.
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