Morning Scan: All the big stories to get you started for the day

The Rs 1.46 lakh crore Bajaj Group plans to India’s healthcare sector by setting up a chain of hospitals in metros, the Economic Times reported. The healthcare business will be housed in a newly formed company. Nirav Bajaj, head of corporate strategy at Mukand, is overseeing the project and is likely to helm the new company. Nirav is the son of Niraj Bajaj, chairman and MD of Mukand and chairman of Bajaj Auto.

Why it’s important: The healthcare foray, still in the initial stages, would be the first major diversification for the 98-year-old business house. India’s growing healthcare sector is seeing increasing corporatization.

#3. Export surge in Apple’s iPhones propel electronics to podium finish in June quarter

Driven by increasing outbound shipments of Apple iPhone, electronics has surged past gems and jewelry to secure the third spot among India’s top 10 exports by the end of the June quarter, after only engineering goods and petroleum products, the Business Standard reported. Electronics exports rose by 22 percent, reaching $8.44 billion at the end of the fiscal first quarter, commerce ministry data showed, which was an increase of $1.5 billion from $6.94 billion in the year-ago period.

Why it’s important: Apple and its contract manufacturers have made the most of the business incentives the government offered to boost the local electronics sector. It now remains to be seen if the industry moves up the value chain as MNCs continue to diversify their supply chains away from China.

#4. Taxmen to take hard look at offshore property deals of ultrawealthy Indians

At least half a dozen resident Indians were last week served summons from the Income Tax Department on their purchase of properties in Switzerland and Portugal, the Economic Times reported. For the first time, they have been questioned about property acquisitions in nations that were till now outside the taxman’s radar for realty investments.

Why it’s important: After foreign bank accounts, stockholdings and trusts in tax havens, it seems now that offshore property deals of wealthy Indians have come under the taxman’s lens.

#5. Finance ministry may modify long-term capital gains regime in relief to homeowners

The finance ministry is likely to provide relief to homeowners by finetuning the new long-term capital gains provisions that seek to remove indexation benefits for unlisted assets, including property and gold, the Business Standard reported. The changes being considered include extending the effective date of the new regime to the next financial year. Discussions are also going on about grandfathering the purchase of all asset classes, including property, where the indexation provision could apply.

Why it’s important: The proposal has sparked concern because indexation allows homeowners to take inflation into account in calculating capital gains while selling property. With the new rule, they may have to pay huge taxes, particularly on old properties where the sale price is not high.

#6. Domestic institutions close gap in corporate ownership with foreign institutional investors

The gap between foreign institutional investors and domestic institutional investors in corporate ownership in India shrank to a record low of 1.15 percentage points in the June quarter, the Economic Times reported, citing Primeinfobase data. While the share of FIIs in NSE-listed firms fell to 17.38 percent, the lowest in 12 years, the ownership of DIIs reached a record high of 16.23 percent.

Why it’s important: Overseas investors have been less bullish in Indian markets, mainly due to high valuations. Domestic institutions, on the other hand, are flush with funds, with monthly systematic investment plans exceeding Rs 20,000 crore.

#7. Stock market may face turbulent weather this week as overseas sentiment sours

Local stocks may face choppy weather this week after the sentiment of foreign investors darkened across cash and derivatives on Friday, the Mint reported. Besides selling a provisional Rs 3,310 crore worth of shares on Friday, FPIs purchased an additional 330,936 index put contracts overnight, taking their net total put contracts held to 473,635. Additionally, they cut their net cumulative bullish index futures positions.

Why it’s important: The global cues are weak, indicating the need for abundant caution. For retail investors, it’s best to avoid dabbling in derivatives against the current backdrop of heightening volatility.

#8. Low-value bids compel lenders to vote to liquidate defunct Go First airline

The committee of creditors of defunct carrier Go First has unanimously decided in favor of liquidating the company as bids by prospective resolution applicants were below expectations, the Business Standard reported. Voting for the proposal is through and the airline will be recommended for liquidation soon.

Why it’s important: Go First has voluntarily filed for bankruptcy in May last year. Lessors have been since battling the airline, lenders and the resolution professional to take possession of their aircraft.

#9. India’s space tech sector sees hiring boom on record funding and policy support

Indian startups building launch vehicles, satellites, as well as materials and systems for the space sector, are charting big hiring plans as they hasten expansion, propelled by a funding boom and enabling government policies, the Economic Times reported. Companies such as Skyroot Aerospace, Digantara, Pixxel, Agnikul Cosmos, Dhruva Space, SatSure, and Manastu Space have aggressive plans to scale up headcounts.

Why it’s important: the country’s space industry is on the cusp of rapid expansion and some firms are scrambling to double and even treble their team sizes to stay ahead in the impending race.

#10. Startups continue raining employee stock options to key executives ahead of public listings

A big chunk of Indian firms showered stock options on their key executives in the years before public listing to keep them engaged and motivated, the Mint reported, citing a Deloitte study. Of the companies that went public in the past three financial years, 54 percent introduced long-term incentives in the form of stock grants four years before an initial public offering, the study found.

Why it’s important: The secular trend of rising largesse is as much about wealth creation as it is about pure retention for both employees and shareholders. Nobody’s complaining as long as business booms.