India Daybook – Stocks in News

Shyam Metalics: Company gets composite license for the Surjagad-1 iron ore block for an area of 1526 hectares (Positive)

Pratap Snacks: Company has started commercial production at its new unit in Jammu & Kashmir for various namkeen snacks with a capacity of about 10,000 MT per annum. (Positive)

Krsihna Defence: Company win order for supply of special steel product worth 109.9M rupees. (Positive)

AstraZeneca: Company gets permission to import for sale & distribution of Trastuzumab Deruxtecan Lyophilized powder (Positive)

Nocil: Company has accorded approval for incurring capital expenditure up to 2.5b rupees towards capacity enhancement (rubber chemicals) at dahej (Positive)

Power Grid: Company has successfully commissioned project under “augmentation of transformation capacity in southern region”. (Positive)

Anant Raj: Company’s has enhanced the scope of offering enlisted in MOU with TCIL and have entered into an addendum for this purpose (Positive)

Technocraft: Company says manufacturing facility at Maharashtra will commence its production in a phased manner from March 27 (Positive)

DCM/Chemplast: DGTR initiates anti-dumping investigation on PVC suspension resins. (Positive)

Snowman: Promoter Gateway Distriparks Bought Additional 3.75 Lakh Shares or 0.22% Stake from Open Market. (Positive)

Shriram Finance: Government of Singapore acquired 1.77 Lakh Shares and Monetary Authority of Singapore acquired 47,654 Shares. (Positive)

Sanofi/Cipla: Announced exclusive distribution partnership For distribution and promotion of Sanofi India’s Central Nervous System product range in India (Positive)

Apollo Pipes: Company acquires 53.57% share capital & voting rights in Kisan Mouldings for ₹118.40 crore. (Positive)

Lumax Ind: Company approved equity investment of upto 50m rupees in lumax industries Czech s.r.o. (Neutral)

Adani Power: CCI approves the proposed acquisition of 100% equity share capital of Lanco Amarkantak Power Limited by Adani Power Limited (Neutral)

Larsen & Toubro: Company board approves long-term borrowings of up to Rs 7,500 crore. (Neutral)

Prism Johnson: Company to consider fund raise via NCDs on March 29, 2024 (Neutral)

CDSL: Standard Chartered Bank – corporate banking to sell entire 7.18% stake via block deal in CDSL (Neutral)

Aster DM: Olympus Capital Asia Investments likely to sell up to 9.8% equity in Aster DM Healthcare via block deal. (Neutral)

Sugar Stocks: Govt’s sugar policies ensured stable retail prices, timely payment to farmers: (Neutral)

LIC: Received communication/ demand order for Rs 178 cr including Goods & Service Tax, Interest and penalty for Jharkhand State (Neutral)

Wockhardt: Board approves QIB of 93 lk shares at ₹517/sh: Agencies. (Neutral)

IRFC: Uma Ranade given additional charge of post of Chairman and MD (Neutral)

Kalyani Forge: A new lawsuit has been brought against industrialist Baba Kalyani, as his nephew and niece move to claim shares in the assets of the Kalyani family. (Negative)

For information only

Brajesh Kumar Singh is new Executive Director, Indian Bank : Public sector Indian Bank on Sunday said the Central government has appointed Brajesh Kumar Singh as its Executive Director for three years. Prior to taking up the new responsibility, Singh was serving Bank of Baroda as its Chief General Manager – Human Resources. “…the Central Government vide Notification No 4/1(viii) dated March 9, 2024, appointed Brajesh Kumar Singh, Chief General Manager, Bank of Baroda as Executive Director of Indian Bank for a period of three years, with effect the date of assumption of office on or after March 10, or until further orders, whichever is earlier,” Indian Bank said in a BSE filing on Sunday. Singh, an agriculture graduate from Allahabad Agriculture Institute, has banking experience of over 28 years and has held various responsibilities in the Bank of Baroda including Credit Officer, Branch Head, and Regional Head. He has steered Retail Assets and Human Resource Management with his rich expertise at the Corporate Office. Singh has also served the Board of Bank of Baroda, Uttar Pradesh Gramin Bank as Director, the bank said. – moneycontrol.

RBI decision on IDBI Bank bidders soon : The Reserve Bank of India’s (RBI’s) much-awaited decision on the fit-and-proper profiles of the bidders for IDBI Bank will likely be conveyed this month to the government, a source privy to the matter said. This would pave the way for the first strategic disinvestment of a bank, with a significant government holding, immediately after a new government assumes office after the April-May general elections. The sale of IDBI Bank, formerly a public sector bank, is seen as a test case for the new public sector enterprises policy, which aims to minimise government’s presence in businesses, including banking, as the Centre feels private sector is best suited to scale up businesses, with skin in the game. Recent laudatory comments on public sector undertakings by Prime Minister Narendra Modi have strengthened the perception that the government may be rethinking its policy with regard to these firms. – financial express

AU Small Finance Bank aims to become universal bank in 3-5 years : AU Small Finance Bank, which received RBI’s approval to merge Fincare Small Finance Bank with itself last week, aims to become a universal bank or full-scale bank in the next 3-5 years. “This year we want to stabilise the merger first and really want to showcase to the world that the team can manage complex issues of merger in terms of technology integration, people management, product availability, customer service and offerings,” AU Small Finance Bank MD and CEO Sanjay Agarwal said. Although the Fincare branches would become outlets of AU Small Finance Bank from April 1, the entire integration process would take 9-12 months, he said. “The way we have grown ourselves in the last 28 years, the ultimate destination is universal (banking licence). We are not in a hurry… of course, in the next 3-5 years we will become (a universal bank),” he told PTI in an interaction. – economic times.

RBI cracking down on P2P credit card transactions : After barring Visa from undertaking certain commercial business-to-business (B2B) credit card transactions, the Reserve Bank of India is now seen cracking down on peer-to-peer (P2P) credit card payments made via third-party service providers, sources told businessline. This comes after the central bank has found instances of retail customers using credit cards to pay rent and tuition fees through third party apps. These third-party players, usually fintechs, allow customers to make a credit card payment to their authorised merchant account. They then instantaneously transfer the money to the bank account of the recipient (for instance a landlord in case of rent payments) in exchange for a commission.“Credit card transactions are only meant to be between merchants and customers (P2M). If funds are being routed through an escrow account operated by a third party, it is bypassing the regulations and will not be allowed,” a senior official said. – Business Line.

EbixCash up for sale but buyers not in sight : In less than three months of filing for bankruptcy in the US, Ebix is said to have put its Indian operations on the block. The decision to sell EbixCash follows the grime or no prospects left for listing the Indian operations. In December 2022, EbixCash has filed its papers for ₹6,000 crore of initial public offering (IPO). Sources say the IPO plans didn’t glide smoothly even with the market regulator as SEBI had sought for further information on litigations surrounding the company. An updated red herring prospectus hasn’t been filed since.- Business Line.

Jio Payments to disrupt market with entry into soundbox segment : Jio Payments is set to enter what has been the domain of Paytm and PhonePe so far – the soundbox segment. Reckoned as a payments and audio verification device, Jio is all set to venture into the soundbox play across retail merchants. The full-fledged launch is after 8-9 months of rigorous pilot launch of the soundbox across Reliance Retail stores. Initially, the device was tested across retail entities of the Reliance group in tier-2 cities and smaller metros such as Jaipur, Indore, and Lucknow. With this round of testing proving to be successful, Jio’s soundbox entered urban markets; albeit within the group’s retail outlets. – Business Line.

ATM ecosystem players looking to adapt UPI for making cash deposits : If UPI (Unified Payments Interface) can be used for cardless cash withdrawal at an ATM, can it not be adapted for making a cash deposit at a cash recyler machine (CRM)? This may be possible, going by the innovation that players in the ATM ecosystem are working on. Currently, when a customer chooses the ‘UPI cardless cash” withdrawal option on the ATM screen, he will be prompted to enter the amount to be withdrawn. After entering the amount, a single use dynamic QR code is displayed and the customer needs to scan the same using any Bank’s mobile banking app and authorise the transaction with UPI PIN to get cash. – Business Line.

FPIs inject over ₹6,100 crore in equities in March on strong economic growth, market resilience : Foreign Portfolio Investors (FPIs) are turning steady buyers as they bought Indian equities worth ₹6,139 crore so far this month driven by strong economic growth, market resilience and decline in US bond yields. This came following a modest investment of ₹1,539 crore in February and massive outflow of ₹25,743 crore in January, data with the depositories snowed. “FPI inflows have shown a positive trend as compared to the previous month. Thanks to the recent announcement of Q3 GDP numbers at 8.4 per cent, persistence performance of large Indian corporates being major factors for turning the tide green for the Indian equity market,” Manoj Purohit, Partner and leader – FS Tax, Tax and Regulatory Services, BDO India, said. – Business Line.

FPIs quizzed on ‘loans’ for trading : Several foreign portfolio investors (FPIs) have been asked by the Indian tax office on whether they have borrowed money to trade on stock exchanges. It’s unclear why the information was sought, but the Income Tax (I-T) department has directed these offshore funds to disclose the identities of the lenders, the latter’s source of money, and the nature of agreement between the two parties. The move to fish out such information could well be to trace any possible and indirect links between overseas portfolio managers with Indian companies and promoters, feel some of the tax and finance professionals. – economic times.

Mcap of 7 of top-10 most valued firms climbs ₹71,301 crore last week; Bharti Airtel shines : The combined market valuation of seven of the top-10 most valued firms climbed ₹71,301.34 crore in the holiday-shortened last week, with Bharti Airtel emerging as the lead gainer. In a record-breaking rally last week, the BSE benchmark climbed 374.04 points or 0.50 per cent. Stock markets were closed on Friday for Mahashivratri. The 30-share BSE Sensex on Thursday settled at a new closing peak of 74,119.39. The Nifty also ended at a fresh closing high of 22,493.55. – Business Line..

Adani Enterprises: Karan Adani, MD of Adani Ports and Special Economic Zone, announced on Sunday that the Adani Group is set to invest approximately ₹60,000 crore in the expansion of its seven existing airports over the coming 5-10 years. He said that about half of this investment will be directed towards enhancing terminal and runway capacity within the next five years.

Interglobe Aviation: Reports suggest that Rakesh Gangwal, co-founder of IndiGo, is contemplating selling a stake of up to 5.8 percent in Interglobe Aviation, the parent company of the airline. This is a significant increase from his initial plan of selling a 3.3 percent stake, as reported by CNBC-TV18 on March 8. The intended equity sale is projected to generate close to ₹6,600 crore, with shares priced at a minimum of ₹2,925 each.

HDFC Bank: The lender has initiated the process for the initial public offering of its subsidiary, HDB Financial Services. The bank plans to schedule the share sale of its financial services division in either the last quarter of 2024 or the first quarter of 2025, according to people in the know.

Reliance Industries: Viacom18, owned by Reliance Industries, has restructured its entertainment businesses under the leadership of two key executives, in anticipation of its impending $8.5-billion merger with Disney’s India unit. In the new arrangement, Kiran Mani, who assumed the role of Chief Executive of Digital Business (JioCinema) in November last year, will now head the digital and sports businesses.

SJVN: SJVN Green Energy, a subsidiary of the state-owned SJVN, has signed a long-term agreement to deliver 600 MW of solar power to Rajasthan. The Power Usage Agreement (PUA) involves the supply of 500 MW of solar power from the Bikaner Solar Power Project, and the Power Purchase Agreement (PPA) includes the provision of 100 MW of solar power from the Rajasthan Solar Power Project. .

Zee Entertainment Enterprises: On Saturday, Zee Entertainment Enterprises announced significant changes in the revenue section of its broadcast business, a move spearheaded by its Managing Director and Chief Executive, Punit Goenka. With these changes, Rahul Johri, who held the position of President, Business, at Zee Entertainment Enterprises, has resigned from the company after serving for three and a half years.

Sun Pharmaceuticals: The company is withdrawing approximately 55,000 bottles of a generic gout medication from the US market due to deviations from manufacturing practice norms, as reported by the US health regulator. The New Jersey branch of the Mumbai-based company is recalling Febuxostat Tablets in strengths of 40 mg and 80 mg, as stated in the latest Enforcement Report by the US Food and Drug Administration (USFDA).

Rail Vikas Nigam Limited: The railway construction company announced on March 9 that it has been commissioned by the Madhya Pradesh Metro Rail Corporation to design and build an elevated viaduct, five elevated metro stations, and a ramp between chainages. According to the company’s stock exchange filing, the project is slated for completion in approximately three years, with the total cost of the order amounting to ₹543.

Nazara Technologies: The gaming company is reportedly planning to acquire Smaaash Entertainment Pvt. Ltd through the insolvency and bankruptcy process, according to two individuals familiar with the situation. As a part of this process, Nazara has submited its resolution plan by 9th March with the aim of reviving the bankrupt firm.

Gensol Engineering: The company has secured the leading position for a standalone Battery Energy Storage Systems (BESS) project, with a capacity of 70 MW / 140 MWh out of a total of 250 MW / 500 MWh, according to a company announcement.

CLSA on Sula Vineyards: Maintain Buy on Company, target price at Rs 826/sh (Positive)

CLSA on Titan: Maintain Buy on Company, target price at Rs 4354/sh (Positive)

CLSA on Zomato: Maintain Buy on Company, target price at Rs 227/sh (Positive)

ICICI on Gulf Oil: Initiate Buy on Company, target price at Rs 1250/sh (Positive)

Equirus on Fedbank Financial: Initiate Buy on Company, target price at Rs 160/sh (Positive)

Emkay on Chalet Hotels: Maintain Buy on Company, raise target price at Rs 900/sh (Positive)

Citi on Indus Towers: Maintain Buy on Company, target price at Rs 320/sh (Positive)

Citi on Bharti Airtel: Maintain Buy on Company, target price at Rs 1305/sh (Positive)

MS on Larsen: Maintain Overweight on Company, target price at Rs 4106/sh (Positive)

MS on Apollo Hospitals: Maintain Overweight on Company, target price at Rs 7181/sh (Positive)

Kotak on Dalmia Bharat: Maintain Add on Company, target price at Rs 2320/sh (Positive)

CLSA on Eicher Motors: Maintain Underperform on Company, target price at Rs 3955/sh (Neutral)

CLSA on M&M: Downgrade to Outperform on Company, raise target price at Rs 2115/sh (Neutral)

CLSA on Tata Motors: Downgrade to Outperform on Company, raise target price at Rs 1074/sh (Neutral)

CLSA on HUL: Maintain Underperform on Company, target price at Rs 2595/sh (Neutral)

CLSA on DLF: Maintain Sell on Company, target price at Rs 750/sh (Neutral)

CLSA on Macrotech: Maintain Sell on Company, target price at Rs 705/sh (Neutral)

CLSA on Oberoi Real: Maintain Sell on Company, target price at Rs 1200/sh (Neutral)

Citi on Star Health: Maintain Sell on Company, target price at Rs 560/sh (Neutral)

MS on HAL: Maintain Overweight on Company, target price at Rs 3129/sh (Neutral)

MS on GujGas: Maintain Overweight on Company, target price at Rs 579/sh (Neutral)

HSBC on HDFC Bank: Maintain Buy on Company, target price at Rs 1750/sh (Neutral)

CLSA on Jindal Steel: Maintain Underperform on Company, hike target price at Rs 840/sh from Rs 820/Sh (Neutral)

CLSA on Tata Steel: Downgrade to Sell on Company, cut target price at Rs 135/sh from Rs 145/Sh (Negative)

CLSA on JSW Steel: Downgrade to Sell on Company, cut target price at Rs 730/sh from Rs 810/Sh (Negative)

For information only

Data sovereignty: SBI mulling to build its own domain-specific LLM : Pune, The country’s largest lender State Bank of India is mulling to build its own Large Language Model (LLM) to leverage the data it possesses, a senior official said on Friday. The bank has been using Artificial Intelligence (AI) for over seven years now, and wants to create a situation where it can co-exist with an open-source LLM, its Deputy Managing Director Nitin Chugh said speaking at the Asia Economic Dialogue event here. The project to build its own LLM is an ambitious one to be executed over the long-term, Chugh, who heads the digital banking and transformation efforts at SBI, said. – economic times.

Six institutional investors allotted more than 5% of equity shares offered in Union Bank’s ₹3,000 cr QIP issue : Morgan Stanley Asia (Singapore) Pte., Societe Generale, HDFC Life Insurance, BNP Paribas Financial Markets, SBI Life Insurance, and Sundaram Mutual Fund have been allotted more than 5 per cent of the equity shares offered in Union Bank of India’s ₹3,000 crore Qualified Institutional Placement (QIP) issue. The public sector bank allotted 22.11 crore equity shares of face value ₹10 each to eligible Qualified Institutional Buyers (QIBs) at the issue price of ₹135.65 per equity share (including a premium of ₹125.65). The issue price is at a 4.9937 per cent discount to the floor price of ₹142.78 per equity share. The issue opened on February 20, 2024 and closed on February 23, 2024. – Business Line.

RBI says more than 97% of 2,000-rupee notes returned since May 2023 : The Reserve Bank of India (RBI) announced on Friday that over 97% of India’s highest-denomination 2,000-rupee currency notes, which were withdrawn from circulation in May 2023, have been returned. The total value of 2,000 rupee banknotes in circulation, which stood at 3.56 lakh crore rupees as on May 19, 2023, when the withdrawal of India’s highest currency note was announced, has now decreased to 8,470 crore rupees as of February 29, 2024, the RBI said in a statement. “Thus, 97.62% of the ₹2000 banknotes in circulation as on May 19, 2023, has since been returned,” the central bank said. – Economic Times.

FIU-Ind imposes ₹5.49 cr penalty on Paytm Payment Bank : The Financial Intelligence Unit-India (FIU-IND) on Friday imposed a penalty of ₹5.49 crore on beleaguered Paytm Payments Bank Ltd with reference to violations of its obligations under the Prevention of Money Laundering Act. A statement issued by the Finance Ministry said that the agency initiated a review of the Paytm Payments Bank Ltd on receipt of specific information from law enforcement agencies in respect of few entities and their network of businesses engaged in a number of illegal acts, including organising and facilitating online gambling. Further, “the money generated from these illegal operations, i.e. proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank Ltd,” the statement said. – Business Line.

NEFT records 4.1 cr transactions on Feb 29, highest single-day volume : The National Electronic Funds Transfer (NEFT) recorded its highest ever single-day transactions on February 29, with the payment system processing 4.10 crore transactions on that day, the Reserve Bank of India said. The NEFT processed 4,10,61,337 transactions on February 29, the RBI said. “During the previous ten years (2014-23), NEFT and RTGS (Real Time Gross Settlement) systems have registered growth of 700 per cent and 200 per cent respectively in terms of volume and 670 per cent and 104 per cent respectively in terms of value,” the central bank said. – economic times.

LIC presents Rs 2,441 cr dividend cheque to Sitharaman : Life Insurance Corporation of India (LIC) on Friday paid a dividend of Rs 2,441 crore to the government. “Smt @nsitharaman receives a dividend cheque of Rs 2,441.44 crore from Shri Siddhartha Mohanty, Chairman – Life Insurance Corporation of India (@LICIndiaForever),” Finance Minister Nirmala Sitharaman’s Office said in a post on X. – economic times.

Term deposits formed 98% of incremental deposit growth in Apr-Dec: RBI : Term deposits accounted for a whopping 98% of incremental deposits between April-December 2023, with share of low-cost current account and savings account (CASA) falling to a low of 2% during the period, as more customers parked money in high yielding fixed, term deposits, according to the Reserve Bank of India’s (RBI) quarterly basic statistical returns on deposits-December 2023 report. Deposits also moved to higher interest rate buckets, with the share of term deposits bearing over 7% interest rate rising to 61% of the total term deposits in December 2023 from 55% a quarter ago and 34% in March 2023. As on February 9, banks’ overall deposits stood at Rs 201.95 trillion. – economic times.

UPI transactions dip slightly in Feb due to fewer days, technical disruptions : After starting 2024 on a strong note, the Unified Payments Interface (UPI) saw transactions dip slightly in February but remain above December 2023 levels. ransactions worth ₹18.28-lakh crore were processed during February, nearly 1 per cent lower than the peak of ₹18.41 lakh crore in January 2024. The value of transactions was 48 per cent higher year-on-year, as per data by the National Payments Corporation of India (NPCI). The number of transactions on the UPI network too fell by 0.8 per cent to 1,210 crore from the January level of 1,220 crore transactions. On year, the volume of transactions was 61 per cent higher. Typically, transaction volumes and the transaction amount is lower in February due to the fewer number of days in the month. – Business Line.

Diversified NBFCs to grow 20% in FY25, focus to be co-lending: India Ratings : Large and diversified NBFCs are expected to grow 20 per cent year-on-year in FY25, slower than 27 per cent in FY24 due to capital constraints and increased regulatory scrutiny, according to India Ratings. “Regulatory scrutiny and compliance have been the ongoing need of the hour for NBFCs. This is because they are scaling up and their dependence on and inter-connectedness with banks is increasing,” the rating agency said while maintaining a ‘neutral’ outlook on the sector. – Business Line.

Universal Sompo General Insurance covers 2 lakh under PMJAY : Universal Sompo General Insurance has provided healthcare coverage to 2 lakh people and their families under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana in the Union territory Dadra & Nagar Haveli and Daman & Diu. The cover will ensure access to quality medical services for those in need. Under the ABPMJAY scheme in Dadra & Nagar Haveli and Daman & Diu, 1,109 packages and 1,949 procedures are currently provided across 27 specialties. – Business Line.

Microfinance Q3 disbursements at ₹78,584 crore, AUM grows 25% : Microfinance loans for the financial services sector grew 24.6 per cent on year to ₹3.99 lakh crore as of December 2023, serving 7.4 crore unique borrowers through 14.6 crore loan accounts. 1.66 crore microfinance loans worth ₹78,584 crore were disbursed during Q3 FY24, compared with 1.89 crore loans worth ₹77,877 crore in the year ago period, as per data by industry body Microfinance Industry Network (MFIN)’s Micrometer report for Oct-Dec. “Microfinance operations added more than 1 crore unique clients over the last financial year to its fold. Portfolio delinquency has reached the pre COVID levels which indicates improving health of the microfinance portfolio,” said Dr Alok Misra, CEO and Director, MFIN. – Business Line.

Paytm board approves discontinuation of inter-company agreements with Paytm Payments Bank : The Board of Directors of One 97 Communications Ltd (Paytm) on Friday approved the discontinuation of its various inter-company agreements with its associate entity Paytm Payments Bank Limited (PPBL). Paytm and PPBL have introduced additional measures to strengthen their approach towards independent operations of PPBL, said a Paytm filing with stock exchanges on Friday. The discontinuation of various inter-company agreements were approved at a board meeting on Friday through circulation of resolution, it added. – Business Line.

Central banks’ functioning more transparent now, says RBI DG Rao : Even as communication for central banks is a “bit of tight rope”, as they must avoid inconsistency between what they say and what is understood and interpreted by the markets and stakeholders, the world has come a long way since the days when their commentary was shrouded in mystery, Reserve Bank of India (RBI) deputy governor M Rajeshwar Rao said at the Dr M V Pylee Memorial Lecture in Kochi. “We have come a long way since the days when central banks were shrouded in mystery. Central bank communication has evolved to become more transparent over the decades,” he said. – Financial Express

Paytm Payments Bank and Paytm to discontinue inter company agreements amid regulatory scrutiny : Paytm on Friday announced that it would be taking additional measures to disassociate its offerings from those of Paytm Payments Bank, amid regulatory action against the latter. “One 97 Communications Ltd (Paytm) would like to inform that the Company and its associate entity, Paytm Payments Bank Limited (PPBL), have introduced additional measures to strengthen their approach towards independent operations of PPBL,” Paytm said in a regulatory filing. – economic times.

MFI portfolio touches Rs 4 lakh crore across India : Micro-finance Institutions portfolio has touched almost Rs four lakh crore during the third quarter of the current financial year, according to the self-regulatory organisation Microfinance Industry Network (MFIN) report. The report said that the industry saw a robust growth of 24.6 per cent over the last financial year, while portfolio delinquency has reached pre-COVID levels indicating improving health of the sector. It said there has been a significant change in the portfolio distribution across regions. South India has emerged as the largest contributor to the MFI portfolio with a share of 31.06 per cent, followed by east and northeast contributing 31.06 per cent. – Business Line.

ICICI Lombard appoints Anand Singhi as chief – retail and government business : ICICI Lombard has brought on board Anand Singhi as its chief – retail and government business, the general insurance company said in a statement on Friday. “I see this as a great opportunity to contribute to the company’s continued success and innovation agenda. My journey thus far has equipped me with insights and experiences that I believe will compound growth and drive sustained profitability for the organisation,” Singhi said. – Economic Times.

Future Generali India Life Insurance appoints Alok Rungta as managing director & CEO : Future Generali India Life Insurance on Friday announced the elevation of Alok Rungta to the position of managing director and CEO effective April 1, subject to receipt of necessary regulatory approvals. Rungta – currently serving as deputy CEO and CFO of the insurance joint venture between Italian insurance company Generali Group, and Kishor-Biyani-founded Future Group – will take over from Bruce De Broize who will continue to be the MD and CEO until March 31. – economic times.

NCLT directs Zee to file reply on Sony’s application in two weeks : The Mumbai bench of the National Company Law Tribunal (NCLT) has directed Zee Entertainment Enterprises to file its reply to applications filed by Sony Group companies within two weeks. Sony Group units Culver Max Entertainment and Bangla Entertainment have filed two applications challenging the maintainability of Zee Entertainment’s plea seeking implementation of the merger scheme. – Business Line.

Rupee settles 1 paisa lower at 82.90 against US dollar : The rupee settled 1 paisa lower at 82.90 (provisional) against the US dollar on Friday amid rising crude oil prices in the overseas market and increased demand for the American currency from importers. At the interbank foreign exchange market, the local unit opened at 82.86 and traded in a narrow range of 82.84 and 82.91 against the greenback. The local unit finally settled at 82.90 (provisional) against the dollar, down 1 paisa from its previous close. – Business Line.

Sensex gains 1,245 pts, Nifty settles above 22,300 on impressive GDP data, foreign fund inflows : Sensex, Nifty updates on 01 March 2024: Benchmark equity indices Sensex and Nifty rallied more than 1.5% to hit their lifetime highs on Friday helped by impressive GDP data and fresh foreign fund inflows. The 30-share BSE Sensex jumped 1,245.05 points or 1.72 per cent to reach 73,745.35—its all-time closing peak. During the day, it zoomed 1,318.91 points or 1.81 per cent to hit a record intra-day high of 73,819.21. The Nifty climbed 355.95 points or 1.62 per cent to settle at a new closing high of 22,338.75. During the day, it soared 370.5 points or 1.68 per cent to reach its intra-day record peak of 22,353.30. A rally in global markets added to the positive momentum in the equity markets, analysts said. – Business Line..

1. Better-than-expected GDP print
   Indian economy grew 8.4 percent in the October-December quarter, the fastest pace in six quarters and above estimates, supported by robust manufacturing and construction activity.
   “The main factor influencing the market today is likely the better-than-expected Q3 GDP growth number which has come at an impressive 8.4 percent. The impressive GDP numbers provide the fundamental support to the bull market,” said said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
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2. Elevated valuations supported
   The GDP data might be supportive of valuations, according to Deepak Jasani, Head of Retail Research, HDFC Securities, told Moneycontrol. “Valuations-wise, we have been at a high level for a few months now,” he said. Nifty is trading at a P/E of 23.45. At these levels, the markets have likely already baked in the current economic growth.
   “Already, fairly high growth is being factored in the current valuations and the better-than-expected GDP numbers is endorsing the growth. This makes the case for valuations to remain in the current buoyant zone,” said Pawan Bharadia, managing director at Equitree PMS.
3. Upbeat global markets
   Positive global cues also helped indices move higher. Wall Street stock closed in the green overnight, with S&P 500 and Nasdaq Composite settling at record highs after in-line U.S. inflation reading kept intact the likelihood of a June interest rate cut.
   Meanwhile in Asia, Japan’s Nikkei hit a fresh record high, buoyed by the bounce on Wall Street. China’s CSI 300 rose 0.2 percent after factory data and Hong Kong’s Hang Seng index also edged higher.
4. Encouraging US inflation data
   The in-line U.S. inflation reading also aided market sentiment as it kept intact the likelihood of a rate cut in June by the Federal Reserve. Rate cuts mean more liquidity in the market and a possibility of the Fed reducing rates soon as boosted positivity among participants.
5. FIIs in buying mode
   Foreign investors net bought shares worth Rs 3,568 crore in the previous session, while domestic institutional investors sold shares worth Rs 230 crore. In the month gone by, they bought Indian equities worth Rs 5,107 crore, after pulling over Rs 25,000 crore out of the domestic market. In the past decade, FIIs have turned out to be buyers of domestic stocks in March on eight occasions.

For information only

Last week, the BSE benchmark Sensex climbed 663.35 points or 0.90 per cent, and the Nifty jumped 165.7 points or 0.74 per cent.
Leading stock exchanges BSE and NSE conducted a special trading session in the equity and equity derivative segments on Saturday to check their preparedness to handle major disruption or failure at the primary site.
From the top-10 pack, TCS, HDFC Bank, ICICI Bank, State Bank of India, Bharti Airtel, Hindustan Unilever and ITC were the gainers, while Reliance Industries, Infosys and Life Insurance Corporation of India (LICI) faced erosion from their market capitalisation (mcap).
The market valuation of TCS climbed Rs 19,881.39 crore to Rs 14,85,912.36 crore.
ICICI Bank added Rs 15,672.82 crore, taking its valuation to Rs 7,60,481.54 crore.

The market valuation of State Bank of India jumped Rs 12,182.1 crore to Rs 6,89,917.13 crore, and that of HDFC Bank rallied Rs 7,178.03 crore to Rs 10,86,464.53 crore.
The mcap of Hindustan Unilever went up by Rs 5,051.63 crore to Rs 5,67,626.01 crore, and that of Bharti Airtel climbed Rs 4,525.14 crore to Rs 6,38,721.77 crore.
The valuation of ITC increased by Rs 811.39 crore to Rs 5,14,451.76 crore.
However, LIC’s mcap eroded by Rs 19,892.12 crore to Rs 6,54,763.76 crore.
The market valuation of Infosys declined by Rs 9,048.17 crore to Rs 6,86,997.15 crore, and that of Reliance Industries dipped Rs 3,720.44 crore to Rs 20,16,750.44 crore.
In the ranking of the most valued companies, Reliance Industries continued to lead the pack, followed by TCS, HDFC Bank, ICICI Bank, State Bank of India, Infosys, LIC, Bharti Airtel, Hindustan Unilever and ITC.

The Securities and Exchange Board of India (SEBI) has put forward two proposed exemptions to the additional disclosure framework for foreign portfolio investors (FPIs).

• This move aims to ease regulatory compliance burden on FPIs and encourage foreign investments in the Indian capital markets.

The proposed exemptions include

• allowing FPIs to avoid disclosing the total number of voting rights held in listed Indian companies on a quarterly basis,
• as well as exempting them from providing a consolidated statement of their offshore funds that invest in India.

Currently, FPIs are required to make these disclosures as part of SEBI’s regulations pertaining to FPIs. However, SEBI believes these requirements may be burdensome and increase compliance costs for FPIs without significant benefits in terms of risk assessment or monitoring.

The proposed exemptions are part of SEBI’s ongoing efforts to streamline regulations and make them more investor-friendly.

SEBI believes that reducing the disclosure burden will attract more foreign investments, enhance market liquidity, and facilitate ease of doing business in India.

These proposals are open for public comments until a specified date, following which SEBI will evaluate the feedback and finalize the amendments to the regulations.

In summary, SEBI has proposed two exemptions to the additional disclosure framework for foreign portfolio investors, aiming to reduce compliance burdens and attract more foreign investments in the Indian capital markets.

RBI allows banks to issue pre-paid payment instruments for commuters to pay for public transport : The Reserve Bank of India (RBI) on Friday amended the Master Direction on Prepaid Payment Instruments (PPI), where it has allowed authorised bank and non-bank PPI issuers to issue PPIs for making payments across various public transport systems. The apex bank noted that, across India, public transport systems cater to a multitude of commuters on a daily basis. “To provide convenience, speed, affordability, and safety of digital modes of payment to commuters for transit services, it has been decided to permit authorised bank and non-bank PPI issuers to issue PPIs for making payments across various public transport systems,” the RBI said in a notification. – economic times.

RBI takes more actions on Paytm Payments Bank; Check details if you have @Paytm UPI handle : Given the Paytm Payments Bank will not be able to accept further credits into customer accounts and wallets after March 15, 2024, the Reserve Bank of India on Friday took more steps to ensure seamless digital payments by UPI customers using @paytm handle. RBI has asked NPCI to examine the request to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app. These measures will be applicable only to customers and merchants that currently have an @paytm UPI handle. If you have an UPI address that is other than @paytm, no action needs to be taken. – economic times.

RBI is pushing UPI-like credit platform for farmers, MSMEs : The Reserve Bank of India is pushing for the wider adoption of an open-source credit disbursal platform similar to the Unified Payments Interface for digital payments, to make it easier for farmers and owners of small businesses to access credit. While disbursal of consumer loans through a digital interface has become common, farmers and people who run small businesses still need to queue up at their local bank branches and the land records department for days to access agriculture loans and take Kisan credit cards. – economic times.

RBI announces more steps on Paytm, asks NPCI to examine request to become Third-Party ApplicationThe Reserve Bank of India (RBI) on February 23 said it has advised National Payments Corporation of India (NPCI) to examine the request of One97 Communication Ltd (OCL) to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app. The central bank further advised that in the event of NPCI granting TPAP status to OCL, it may be stipulated that ‘@paytm’ handles are to be migrated in a seamless manner from Paytm Payments Bank to a set of newly identified banks to avoid any disruption. “No new users are to be added by the said TPAP until all the existing users are migrated satisfactorily to a new handle,” RBI said. – moneycontrol.

After Axis Bank, HDFC and Yes Bank submit TPAP application for Paytm UPI business : One97 Communications, which runs the Paytm brand, and private sector lenders HDFC Bank and Yes Bank have jointly applied to be a third-party application provider (TPAP) with the National Payments Corporation of India (NPCI) on February 22 for running the mobile payments platform Unified Payments Interface (UPI). Early this week, Moneycontrol reported that Axis Bank and Paytm had submitted a joint application with NPCI to be a TPAP. All three banks have been in discussions with NPCI, the entity overseeing and regulating UPI, over the past few days. NPCI is expected to expedite the process to ensure that customers do not encounter any difficulties using the Paytm app for UPI payments. – moneycontrol.

IDBI Bank looks to sell Rs 280-crore MSME loans : IDBI Bank has come out with a portfolio of micro, small and medium enterprises (MSME) loans for sale. It has put Rs 280-crore of MSME loans up for sale and received interest from seven asset reconstruction companies, including JC Flowers ARC, ARCIL, Omkara and ACRE. Other banks like Indian Overseas Bank (IOB) and RBL Bank have sold their MSME loans in the last quarter. MSME loans given during the Covid-19 had turned into non-performing assets (NPAs) and are now up for sale. – economic times.

India’s forex reserves dip by $1.13 bn to $616.1 bn as of Feb 16 : India’s foreign exchange reserves dipped by of $1.13 billion to $616.1 billion for the week ending on February 16, latest data by Reserve Bank of India (RBI) showed on Friday. According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) dropped by $740 million to $545.78 billion. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves fell by $362 million to $47.38 billion, whereas SDRs decreased by $28 million to $18.11 billion. – economic times

Unsecured retail loans building up stress in financial system : Indian banks in general may have reported strong earnings growth and a drop in gross bad loans, but the numbers hide the building stress in the unsecured credit portfolio of banks such as IndusInd Bank, Bandhan Bank and Yes Bank, among others. The rise in bad loans that will come as a consequence of the rise in unsecured loans will be seen in the coming quarters. Lenders such as IndusInd Bank, Bandhan Bank and Yes Bank have reported a higher-than-expected rise in bad loans due to stress from the rising unsecured retail segment. – economic times.

Zurich Insurance to buy 70% Kotak General stake via single deal of ₹5,560 crore : Zurich Insurance will acquire 70 per cent stake in Kotak Mahindra General Insurance for ₹5,560 crore, by way of a single deal including primary and secondary trades. “The parties to the aforesaid transaction, viz., the Bank, Zurich and Kotak General have mutually agreed that Zurich will acquire 70% stake in Kotak General by way of a combination of primary and secondary acquisitions in a single tranche,” Kotak Mahindra Bank notified the exchanges. – Business Line.

Companies should also disclose technical defaults, says Krishnamurthy V Subramanian, Executive Director-India, IMF : Companies should not only disclose payment defaults to the bourses but also technical defaults such as those relating to breach of non-financial conditions in loan agreements so that investors and lenders are protected, said Krishnamurthy V Subramanian, Executive Director-India, IMF. Global practise on disclosure of default by companies actually goes beyond missing payment obligations to also cover technical default, Krishnamurthy said in his address at ASSOCHAM’s national summit on stressed assets. He emphasised that such disclosure needs to be made fully to the bourses and the regulator, irrespective of whether a company has raised resources from investors via equity or debt. – Business Line.

Secondary Loan Market Association’s trading platform logs loan transactions aggregating about ₹6,000 crore : The Secondary Loan Market Association’s loan trading platform has seen inter-bank bilateral transactions of loan accounts aggregating about ₹6,000 crore since inception in August 2021. Sunil Mehta, Chief Executive, Indian Banks’ Association, observed that inter-bank bilateral transactions of loans helps banks that have hit sectoral exposure limits create headroom through sale of loans. Once headroom is created, banks can take fresh exposure in sectors where they had earlier reached exposure limits. It helps banks in rebalancing their sectoral exposure. – Business Line.

Goldman Sachs downgrades SBI, ICICI Bank, YES Bank; cites multiple challenges to earnings : Global research firm Goldman Sachs on Friday downgraded its rating on State Bank of India, ICICI Bank and YES Bank citing the end of the “Goldilocks period” for financial sector entities. It downgraded SBI and ICICI Bank from ‘buy’ to ‘neutral’ basis a 4 per cent downside and 3 per cent upside, respectively. Further, it downgraded YES Bank from ‘neutral’ to ‘sell’ attributing the call to a 37 per cent downside on the stock, but reiterated the ‘buy’ rating on HDFC Bank. “We believe the proverbial Goldilocks period (strong growth and strong/visible profitability) is over for the financial sector in the near-term as headwinds are increasing,” it said in a report. – Business Line.

Pension funds ride high on equity bull run, 1-year returns surge to 28.66% : Roaring bull markets in equities have helped Pension Funds continue registering a sizzling performance with an average annual return of nearly 30 per cent from their equity investments, the latest PFRDA data showed. This average annual return of 28.66 per cent in equities — as of February 16, 2024 —is more than triple the return of about 8.17 per cent seen in Corporate Bonds. It is also much higher than the 9.91 per cent in the government securities and about 11.60 per cent in Central and 11.56 per cent in State government schemes, data showed. – Business Line.

Central Economic Intelligence Bureau launches “automated search portal” for public sector banks : The Central Economic Intelligence Bureau (CEIB) has launched an “Automated Search Portal” to help public sector banks (PSBs) with antecedent verification of prospective borrowers and non-performing assets (NPAs). The portal, which has been developed by the Bureau in collaboration with the State Bank of India (SBI), will help PSBs obtain mandatory intelligence clearance from CEIB in a prompt manner, which in turn will facilitate timely disbursement of funds, per Indian Banks’ Association’s statement. “This is a welcome move by C.E.I.B which is aimed at equipping banks with quick access to information for taking timely decisions,” the Association said. – Business Line.

IT and select banking stocks drag Sensex and Nifty down : Sensex, Nifty updates on 23 February 2024: During Friday’s trading session, India’s benchmark stock indices, Sensex and Nifty, went through a volatile phase and ended lower due to selling pressure in IT and select banking stocks. The BSE Sensex closed at 73,142.80, slipping 15.44 points, with 17 components in the red and 13 in the green. Although it opened higher, profit-taking activities led to losses later in the day, with the index fluctuating between 73,413.93 and 73,022. The broader Nifty of NSE also closed lower at 22,212.70, down 4.75 points. While FMCG, pharma, and financial shares gained, losses in IT and private bank shares offset these gains. On the global front, markets were mostly higher, following impressive quarterly results by Nvidia that led to strong gains in US markets. – Business Line.

Rupee turns flat against US dollar in early trade : The rupee traded on a flat note at 82.85 against the US dollar in early trade on Friday amid outflow of foreign funds and volatile crude oil prices in the overseas market. Positive equity market sentiment and a weak American currency, however, provided support to the domestic unit, forex traders said. At the interbank foreign exchange, the domestic currency opened at 82.87 and inched up further to trade at Thursday’s closing level of 82.85 against the greenback. – Business Line..
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1. The Central Board of Direct Taxes ( CBDT ) Chairman, Nitin Gupta, has announced that, the income tax department will autonomously clear pending petty tax demands for approximately 80 lakh taxpayers.
2. This initiative follows the government’s proposal, as outlined in the interim Budget, to withdraw direct tax demands up to Rs 25,000 for the fiscal year 2009-10 and up to Rs 10,000 for the financial years 2010-11 to 2014-15.
3. CBDT Chairman assured that the income tax department would erase these demands, relieving taxpayers of any action. The process is designed to be non-adverse to the assessee, and taxpayers won’t be contacted regarding this matter. However, details of the demands will be available on the individual taxpayers’ e-filing portal for review. If any issues arise, the department will address them promptly.
4. He highlighted that the CBDT would issue a “speaking order” to explain the process comprehensively. If taxpayers encounter problems related to demand cases, the department will address rectifications, pending appeals, or refund issues.
5. Approximately 80 lakh taxpayers are expected to benefit from this measure, involving an amount of about Rs 3,500 crore. The base figure of the demand, irrespective of the interest accumulated over the years, would be considered in determining eligibility for this initiative.