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

· The telecom companies wanted a lower fee for the waves and additional quantities of spectrum across more 5G bands.

· The 600 MHz band and the millimetre waves will be on offer for the first time.

Legacy insurance players stay away from digital marketplaces

Major insurers such as HDFC Ergo, LIC and ICICI Lombard are staying away from the digital marketplaces, say The Economic Times.

Why it’s important: Many such players recently delisted its products from web aggregators and online third-party brokers withdrawing its health and motor insurance policies.

· The insurers think the move is counter-intuitive with the major pandemic-driven digitisation is getting huge online sales of insurance covers.

· The insurance players looking for more autonomy for themselves in the digital space could be one reason.

Petrol sales jump to pre-COVID-19 levels

The petrol consumption in the country hit the pre-COVID-19 level for the first time in almost one-and-half year, The Times of India reported.

Why it’s important: It shows the economic activities are gaining momentum.

· The data shows public sector fuel retailers sold 3.5 percent more petrol than the same period of 2019.

· Diesel consumption also rose to 89 percent of the pre-COVID-19 level, but sales fell less than 1 percent short of pre-COVID-19 level.

· Diesel sales expected to regain the pre-COVID-19 levels by Diwali but jet fuel sales may take time due to the prevailing trend in the aviation sector.

N K Singh says revisit direct taxes

The chairman of the 15th Finance Commission, N K Singh, in an interview with The Times of India mentions the urgency of reworking the tax strategy for a better future.

What he says: After 30 years of reforms, now it is time to deepen economic reforms.

· Cover areas that had not yet touched such as farm, labour and power sector reforms.

· Make use of the forex reserves in imaginative ways.

· The focus should be on public outlays to be concentrated on credible infrastructure and more robust social sector spending.

· States should be more proactive, energetic and imaginative stakeholders such as Gujarat and Andhra Pradesh.

Wipro set to outpace rivals this financial year

IT major Wipro Ltd is expected to register the fastest revenue growth this fiscal among the country’s top five software services firms, reported Mint.

What it shows: This is a first for the company in its history.

· Wipro’s industry-leading 12.2 percent sequential revenue growth in the June quarter is expected in the remaining period of the year.

· Wipro expected to end the fiscal with a revenue of $10.01 billion, a 23.1 percent rise from last year’s $8.13 billion, says Mint’s calculations.

Beauty business see increase in sales amid COVID-19

The sales of low-value makeup and personal care products show an increase in sales during the pandemic period, says Mint.

Why it’s important: People, especially women, are going for cheaper indulgences with the beauty products at home for a feel-good factor.

· Major companies such as Hindustan Unilever Ltd, the owner of the Lakme brand, and Nykaa have registered an increase in cosmetics and personal care sales.

· Even demand for luxury and premium products grew during the pandemic.

Retail investors use UPI route to join IPO frenzy

Unified Payment Interface is becoming the chosen mode of payment for small investors joining IPOs, consisting of 42 percent of all retail applications in IPOs in June, Mint reported.

What it shows: Around 1.9 million retail investors used UPI to apply IPOs in June of the 4.7 million total retail IPO applicants.

· The number is expected to double in three to four years.

· This is because more younger generation investors are participating in the IPO and they prefer easier digital payment methods.

‘We are not looking at whatever was available at whatever price’

Sunil Thakur, partner of Quadria Capital, said in an interview with VCCircle published in Mint they were actively looking at deals all along but did not want to be part of that herd approach.

What he says: The firm is finding its sweet spot and align the investments to the theme.

· The firm is not looking at all active pharmaceutical ingredient and technology deals, or whatever was available at whatever price.

· The company doesn’t do investments without meeting face-to-face with the promoters.

· He believes that there would be a breakout in the healthcare sector.

NSE seeks nod for IPO

The NSE is looking at again to roll out its IPO and has written to Sebi for the nod, reported Business Standard.

Why it’s important: The move is after NSE shareholders are mounting.

· They want to liquidate their holdings for some time.

· The Sebi has not yet responded to the request.

‘Our portfolios are built around firms that sell essentials’

Saurabh Mukherjea, founder and chief investment officer, Marcellus Investment Managers, in an interview with Business Standard said that his investing policy is not focussed on short-term factors.

What he says: We don’t focus on the broader markets.

· This is due to the polarised nature of the country's corporate profitability as 20 companies account for over 90 percent of profits.

· Most of these companies are growing their free cash flows at over 25 per cent per annum, irrespective of the economic issues.

· The investment philosophy: Look for companies whose books are clean; Look for companies that allocate capital sensibly especially in the context of selling essential products and look for companies that are utterly dominant in their sector.

· The portfolios are built around companies selling essential products and services.

‘We look to continue the pace of investing’

Gaurav Sharma, Head of Investcorp’s private equity vertical in India, talking about his firms’ plans in an interview with Business Standard.

What he says: The investment landscape was witnessing digitisation.

· It is gathering speed after the launch of Reliance Jio in 2016-17 and after the pandemic.

· The appetite for tech-enabled digital-first businesses has gone up.

· A lot of things are going to happen in this field in the future.