CONSOLIDATED FUND OF INDIA
Prosus funds Mintifi, Vastu Finance; Swiggy expands Bolt
Prosus is preparing for a ramp-up in its India IPO pipeline. This and more in today¡¯s ETtech Top 5.
Prosus invests in Mintifi, Vastu Finance; eyes more India IPOs after Swiggy listing
The company revealed that it has secured 11% stake in supply chain finance firm Mintifi for approximately $80 million. It also acquired 8.4% stake in the housing finance company Vastu Finance for $100 million. These deals follow its investment in Bluestone as part of a Rs 900-crore funding round.
Fund Manager Talk | Growth may pick up in H2 but base effect may be a challenge: Krishna Sanghavi
Krishna Sanghavi, CIO-Equity at Mahindra Manulife, expects some growth pickup in H2FY25 compared to H1FY25. He believes the market is in a consolidation phase post a significant rally. While FII selling has impacted the market, the underlying fundamentals remain strong. SIP flows are expected to continue growing, driven by India's economic growth and investor discipline. A Santa Claus rally is possible, but the long-term outlook depends on factors like GDP growth, macro conditions, and corporate earnings.
Robust increase in ARPU of private telecom operators (QoQ) led by recent tariff hike
Indian telecom companies see revenue increase. Tariff hikes benefit companies like Airtel, Jio, and VIL. Subscriber numbers drop as customers adjust to new prices. BSNL, a government-owned operator, gains subscribers. Industry experts predict stabilization in the telecom sector.
Over 100 smallcap stocks see double-digit fall in a week amid market correction
Indian markets have corrected 10% from the peak due to weak Q2 results and FII outflows. 103 smallcap stocks declined double-digits, with Kopran Ltd leading the losses at 26%. Other notable declines include Globus Spirits, Antony Waste, and BASF India.
Vedanta Q2 Results: Company is back in black with Rs 5,603 crore net profit, aims to cut more debt
Vedanta aims to reduce its debt-to-operating profit ratio to below 1 in two years. The company reported a net profit of ?5,603 crore in Q2FY25, with a 44% YoY increase in operating profit. Net debt fell to ?56,927 crore, and the company is optimistic about a stronger second half of the year.
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Earnings should be back to double-digit over next 2 years: Sailesh Raj Bhan
So, if you look at the PSU construct, PSU banks specifically the leaders are sensibly priced so there is no challenge there. The challenge is in thematic PSUs where there has been a huge rally in the last two years.
Moderate expectations, markets to consolidate in H1 of Samvat 2081; invest in gold & silver too: Harsha Upadhyaya
Harsha Upadhyaya of Kotak AMC recommends prioritizing largecaps and long-term compounding investments over midcaps or smallcaps. With past performance unlikely to repeat, investors should moderate expectations. Earnings and valuations will be critical, and the financial sector, particularly banks, offers the most comfort. He suggests focusing on sectors like IT and staying patient with staggered investments.
India not abandoned; last week, Chinese equity funds saw outflows rather than inflows: Cameron Brandt
Cameron Brandt explains significant shifts in equity market flows in China and the US. China saw record inflows but faced massive outflows recently. The US market remains positive despite high valuations. Brandt also highlights concerns about India¡¯s inflation and its impact on market flows while noting a return to inflows for India funds.
India Inc's GCC play; BharatPe, Licious financials
Indian businesses are expanding their technology capabilities through global capability centres, paralleling international firms operating in India. This and more in today¡¯s ETtech Top 5.
Valmiki scam: Rs 15 crore funds siphoned distributed to influence voters in Lok Sabha elections
Former Karnataka Minister Nagendra and his aides allegedly siphoned off Rs 89.63 crore, of which Rs 15 crore was used to influence voters during the 2024 Lok Sabha elections, according to an ED chargesheet. The investigation uncovered a sophisticated money-laundering operation involving fraudulent accounts and shell companies.
Market set for sideways consolidation; froth & overvaluation signal possible correction: Vikas Khemani
Many stocks have corrected 30-40%. So, all those things are quite possible. It is happening and I think that is good and healthy for the market from a long-term perspective.
Fabtech Technologies files DRHP for initial public offering with SEBI
Fabtech Technologies, a pharmaceuticals engineering solutions provider, has filed for an IPO. The IPO will consist of a fresh issue of up to 1.20 crore equity shares, with proceeds used for working capital, acquisitions, and general corporate purposes. The issue will be divided among QIBs, non-institutional bidders, and retail investors.
One-time UPS allocation won't have big impact on fiscal math
The Unified Pension Scheme (UPS) introduced increases government contributions to 18.5% from 14%, potentially causing a fiscal rise by about ?40,000-45,000 crore in FY25. Assured pensions will be drawn from two funds, slightly impacting long-term government finances. Economists emphasize incorporating these commitments into future fiscal strategies.
Open to exploring more ways to increase India's collaboration with IMF: Finance Minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman discussed enhancing India's collaboration with the IMF in a meeting with Gita Gopinath, Deputy Managing Director of IMF. Gopinath praised India's fiscal policies and the strength of its economy. Sitharaman emphasized the value of their relationship and openness to more cooperative initiatives, benefiting both India and the global community.
F&O Radar| Deploy Put Debit Spread in Nestle India to gain from potential breakdown
Nestle India's stock hit an all-time high in January 2024 but has been in consolidation since February, facing resistance at 2,650 and support at 2,420. Underperforming its peers, the stock faces bearish indicators. Experts recommend a Put Debit Spread to benefit from potential declines.
Finance Bill to be taken for consideration and passing in Lok Sabha today
The Finance Bill for the 2024-2025 financial year will be considered and passed in the Lok Sabha on Wednesday. The Bill will give effect to the Central Government's financial proposals for the year. Union Ministers Jitendra Singh, Arjun Ram Meghwal, Pankaj Chaudhary, BL Verma, L Murugan, Satish Chandra Dubey, Ravneet Singh, Nimuben Jayantibhai Bambhaniaya, and George Kurian will present papers for their respective ministries.
Budget session of Parliament: Nirmala Sitharaman to move Finance Bill for consideration and passing in Lok Sabha
Finance Minister Nirmala Sitharaman is set to propose the Finance Bill for the 2024-2025 financial year in the Lok Sabha. The bill requires approval from both houses of parliament to become law. The Lok Sabha passed the Appropriation (No.2) Bill, 2024, authorizing nearly Rs 140 lakh crore for the central government's expenditure. The budget includes a hike in Standard Deduction to Rs 75,000, revisions to new tax regime slabs, and a rise in securities transaction tax in futures and options.
Zee says $239 mn fundraise will fortify growth plans
Zee Entertainment Enterprises raised $239 million via foreign currency convertible bonds to bolster its financial position and drive growth strategies. This fundraising initiative aims to provide the necessary capital for both organic and inorganic expansion. The bonds attracted interest from various funds. Additionally, the company is addressing staff morale following a 15% workforce reduction.
Constructive on this mature market; not ruling out correction and consolidation: Sandeep Tandon
Sandeep Tandon, CIO, Quant Mutual Fund, discusses potential impacts on trading volumes due to short-term gains tax changes. Maturity and global interest will help absorb the shock. Bond market positively responded to fiscal discipline. Key concerns include the US market and interest rates. Investment opportunities exist in FMCG, PSUs, insurance, and energy sectors.
Government issues draft adjudication and appeal rules under Telecommunications Act
The government has introduced draft adjudication and appeal rules under the Telecommunications Act, effective in 30 days. Adjudication officers can act on violations either suo moto or via complaints, with the option for entities to voluntarily disclose breaches to avoid penalties. Appeals against decisions can be made within 30 days. The rules include penalties for false evidence, digital implementation via a government portal, and a structured timeline for inquiries. Funds from penalties will be credited to the Consolidated Fund of India.
How consolidation is taking hold in fund-starved edtech sector
According to industry executives, the consolidation is being driven by the fact that smaller companies often offer unique propositions and specialisation in niche categories. Such companies could also be acquired at attractive valuations due to the prolonged funding winter. Funding in edtech sector plunged to $319 million in 2023.
US rate cuts can spur inflows into Indian debt: Citi Exec
Global interest in Indian debt is set to surge, potentially exceeding the expected $2 billion monthly inflow from JP Morgan's bond index inclusion. Citi's Aditya Bagree forecasts a boost as the US Federal Reserve eyes rate cuts, likely triggering EM bond fund inflows. He highlights India's sovereign debt as a top volatility-adjusted carry trade in the region. Despite recent inflows totaling $32 billion, passive investments and India's economic resilience could drive more robust foreign participation. The rupee's stability and favorable economic indicators further bolster investor confidence in Indian assets.
Former deputy election commission advocates separate budget and secretariat for ECI to increase autonomy
Former deputy election commissioner Vinod Zutshi emphasized the need for the Election Commission of India (ECI) to have a separate budget instead of grants from the Consolidated Fund of India. He highlighted the Commission's long-standing demands for autonomy, including an independent secretariat. Despite recent controversies, Zutshi acknowledged the increased independence of the electoral body today. He also addressed the transparency concerns in the appointment of Commissioners and the credibility of the election process in India.
Modi 3.0 has heavy lifting to do on tax reforms to managing stock risks
Economists outline key priorities for India's incoming government, emphasizing the need for growth, job creation, and macro stability. Pronab Sen highlights the importance of sustainable livelihoods, while Pranjul Bhandari suggests that 'easy' reforms could maintain 6.5% growth. However, achieving 70 million jobs requires politically sensitive reforms in agriculture, labor, and land. Additional recommendations include infrastructure investment, judicial reforms, enhancing export competitiveness, and further tax reforms, particularly bringing petroleum and power under GST.
BlackRock stays bullish on Indian bonds after narrow Modi win
Neeraj Seth, chief investment officer at BlackRock, predicts that India's fiscal consolidation under Modi's leadership will continue. Cooling inflation may lead the Reserve Bank of India to ease later this year, supporting the preference for longer duration bonds like the seven and 10 year ones.
Cement industry in India consolidating, market shares of top companies growing: ICRA
Large cement companies are expanding capacity through organic growth and acquisitions, driven by strong demand. Market share of the top five firms rose to 54% in 2023 and is expected to reach 55% by 2025. Consolidation, especially in eastern and western regions, enhances cost efficiency. ICRA's outlook for the sector remains stable.
S&P Global to observe India's fiscal glidepath for ratings upgrade
S&P Global Ratings will monitor India's fiscal consolidation efforts over the next two years for a potential sovereign ratings upgrade. Despite raising the outlook to "positive," the rating remains "BBB-." Focus is on India's fiscal deficit reduction targets, fiscal discipline with RBI's surplus transfer, and its ability to manage inflation.
After consolidating around current levels, market to deliver healthy returns over 3-5 years: Jitendra Arora
Jitendra Arora of ICICI Prudential discusses market consolidation, challenges in valuations, and investment strategies emphasizing long-term growth over short-term gains. He provides insights on sectors like private banks and real estate for potential investment opportunities. Arora says: "Private bank is one pocket where we find a lot of comfort as a house in terms of the valuations."
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