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

A round-up of the biggest articles from newspapers

August 31, 2021 / 07:48 AM IST
A round-up of the biggest articles from newspapers.

A round-up of the biggest articles from newspapers.

Govt likely to provide Tesla partial duty relief 

The government is planning to give electric vehicle major Tesla partial customs duty sop, reports The Economic Times.

Why it's important: The Centre has also sought the company's complete investment plans in India before taking any decision.

Tesla wants 40% import duty against the present 60% on fully assembled electric cars under $40,000 and a 100% duty cut above that price.

Overseas investment in LIC likely to be capped at 20%

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The government is in consideration to cap the foreign investment in LIC at 20%, reports The Economic Times.

Why it's important: This cap is on par with that for public sector banks.

This limit itself is huge considering LIC's size and provides enough headroom.

But any change may need Parliament's nod as the LIC Act allows non-government entities to hold only 5%.

India plans to reduce flying rights of UAE, Qatar and Germany

In a major boost to the domestic aviation industry, the government is planning to unilaterally cut foreign flying rights to some countries, reports The Economic Times.

Why it's important: This is a helping hand extended to Indian airlines.

The Civil Aviation ministry plans to merge UAE's seven emirates separate bilateral quotas into one and reduce the flying rights of Qatar and Germany.

The flipside: Though the move is good for Indian carriers, fares could go up.

It will also limit more connectivity for Indian travellers.

The plan will also be opposed by the foreign carriers and could spiral into a bilateral issue.

September to see nine more firms coming up with IPOs

September is also going to be another month of IPOs, reports The Economic Times.

Why it's important: Nine companies are planning to raise at least ₹12,500 crore next month from the market.

These firms include Aditya Birla Sunlife, Utkarsh Small Finance Bank, Vijaya Diagnostics, Ami Organics, Sansera Engineering, Arohan Financial, Penna Cement, Shree Bajrang Power & Ispat, and Paras Defense.

Apart from these nine companies, Ruchi Soya may also hit the market with ₹4,500-crore follow-on-offering.

In August, 12 IPOs listed in the market but seven of them are trading below their offer prices.

HSBC eyes MF unit of L&T Finance

HSBC is planning to buy the mutual fund business of L&T Finance Holdings, reports The Economic Times.

Why it's important: The British multinational bank, which is looking to expand its wealth management business in India, may quote up to ₹3,000 crore for the buy.

Earlier, Blackstone was eyeing to buy L&T Mutual Fund, but could not materialise.

The move is part of L&T's strategy to exit from its non-core businesses.

RBI's new regulations may hit OTT firms 

The Reserve Bank of India’s new set of regulations regarding auto-debit payments may hit the OTT platforms in the country, reports Mint.

Why it's important: September 30 is the deadline for the new rules to be implemented.

The move is for the safety and security of digital payments.

The new rule stipulates that all recurring transactions above ₹5,000 will need additional authentication like OTP each time.

Video streaming services are worried that the new payment system may be difficult for the customers.

The OTT industry thinks smaller and regional language platforms are going to be hit more.

Tally, Cosmea plan to set up small finance banks

Cosmea Financial Holdings Pvt. Ltd and Tally Solutions Pvt. Ltd have sought RBI nod to set up small finance banks, reports Mint.

Who they are:

The Mumbai-based Cosmea Financial Holdings was incorporated in 2020 with a paid-up capital of ₹1.51 crore.

The Bengaluru-based Tally Solutions has a paid-up capital of ₹36 crore and was set up in 1991.

Others in the fray:

UAE Exchange and Financial Services Ltd, Repatriates Cooperative Finance and Development Bank Ltd, and Chaitanya India Fin Credit Pvt. Ltd sought licences for universal banks.

VSoft Technologies Pvt. Ltd, Calicut City Service Co-operative Bank Ltd, Akhil Kumar Gupta and Dvara Kshetriya Gramin Financial Services Pvt. Ltd have also applied for setting up small finance banks in April.

'Retail frenzy in the primary and secondary markets remains high'

Mihir Vora, senior director & chief investment officer of Max Life Insurance, in an interview with Business Standard, said that the markets have probably discounted a gradual tapering by the US Fed.

What he says: India will continue to be a favoured investment destination.

The upside return potential in large caps is probably in single-digits.

The mid-cap index’s valuation is at a premium to large caps.

The retail frenzy in the primary and secondary markets remains high.

Weak demand hits the two-wheeler segment 

The two-wheeler segment is hit with unsold inventories across the country, reports Business Standard.

Why it's important: So, the festive season is not going to give any benefits to manufacturers.

The festive period generally accounts for over a third of annual sales.

Weak demand, rising costs and above all the pandemic have really done the havoc.
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