Tuesday, 28 June 2016

India Weekly Market of Economy, Corporates, Global Events & Politics

      India Market Weekly


Economy

·         Brexit drags rupee lower, RBI tries to arrest steep fall. The rupee took a sharp plunge of 96 paise against the US dollar to crash below the 68-level today as Britain's vote for leaving the EU played havoc in global markets. http://goo.gl/KRiOVl

·         India ranks 10th in FDI inflows: UNCTAD report: India’s FDI inflows have increased to $44 billion in 2015 as compared to $35 billion in 2014, and the growth has been across the board, the report said. http://goo.gl/9S9ZbJ

·         LIC Chairman S K Roy, appointed by previous UPA government, has resigned nearly two years ahead of completion of his five-year term. http://goo.gl/FcifyX
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·         NITI Aayog member Bibek Debroy said on June 22 reiterating the suggestion made by a panel headed by him last year for scrapping separate railway budget http://goo.gl/rvoBDq

·         Govt said it is revising its drugs law to make it easier for companies to do business while ensuring the safety and efficacy of medicines. Ministers decided the current law cannot effectively regulate areas such as biological drugs, stem cells and regenerative medicines, medical devices, and clinical trials http://goo.gl/tMBo3W

·         Cabinet has given approval for a special package for employment generation and promotion of exports in Textile and Apparel sector. It will have 3years sunset clause.   http://goo.gl/oevtUi

·         The pharma sector is expected to grow by 20% on account of relaxed FDI norms and a separate ministry to focus on the sunrise sector is on the anvil, Chemical and Fertiliser Minister said.
·         The Union Cabinet has approved the establishment of "Fund of Funds for Startups" (FFS) at SIDBI for contribution to various Alternative Investment Funds (AIF), registered with SEBI which would extend funding support to Startups. (PIB)
·         Cabinet gave a go-ahead to auctions across seven bands. The sale will see the government put around 2,300 MHz of spectrum on sale — the highest-ever in a single auction — which is likely to fetch the exchequer at least Rs 5.5 lakh crore if all the mobile airwaves are sold at the reserve price. http://goo.gl/mwHqkC
·         Execution of works in 20 smart cities will kick-start from June 25 with PM launching 14 projects in Pune, while 69 others will commence in other parts of the country (PIB)
·         The railways was also asked to increase its share in freight transport from the current 33% to 37% in the next three years in a NITI Aayog report to the PM. Among other targets are doubling the average speed of freight trains from 24 kmph to 48 kmph in three years, and raising that of mail and express trains to 80 kmph in three years, and 110 kmph in 15 years. The targets take into consideration the fact that the railway’s dedicated freight tracks in the western and eastern corridors are expected to be completed by 2019 and 2021, which will divert many freight trains to these corridors. (PTI)


Corporates

·         As Britain voted to exit the EU, Tata Motors-owned Jaguar Land Rover today said it is "business as usual" and will manage the long-term impact and implications of the decision, insisting "nothing will change" overnight for it and the automotive industry.

·         CARE, CRISIL may face SEBI action in Amtek Auto case: The crisis drew attention to the conduct of the rating agencies in assigning a credit rating to the Amtek Auto bonds and the JP Morgan schemes. CARE Ratings chose to suspend its rating on Amtek Auto on 7 August 2015. The agency had given Amtek Auto an AA- rating. Crisil Ltd had assigned a rating of AAAmfs (signifying the highest portfolio credit quality) to the JP Morgan India Treasury Scheme in May 2015. http://goo.gl/05k2IQ

·         Indiabulls Alternative Investments Ltd (AIF) to raise Rs1,000 cr from NRIs for realty fund having a tenure of four years, extendable by a year. Indiabulls Asset Management Co. Ltd, a unit of Indiabulls Housing Finance Ltd, is currently raising its second fund— Indiabulls High Yield Fund— that aims to raise up to Rs1,000 cr from domestic investors to invest in residential projects in key property markets. http://goo.gl/Y2L3tn

·         The Motherson Sumi Group is mulling a mega restructuring plan that will allow to it raise more funds and expand its business http://goo.gl/Bqy70F




Global events

·         Prime Minister David Cameron on Friday announced his resignation in the wake of defeat in the crucial referendum after Britain voted to leave EU in a deadly blow to the 28-nation bloc that triggered a panic reaction in world markets and raised questions over immigration and other issues in the UK after the divorce.

·         The pound has fallen to levels not seen since about 1985

·         Making the first moves to calm the markets following Britain's vote to leave the European Union (EU), Bank of England Governor Mark Carney on Friday announced that it was ready to provide additional liquidity worth £250 billion and take any other steps needed to ensure market functioning.

·         Bank stocks were pummeled at the open of European trade Friday in the aftermath of a landmark vote by the U.K. to leave the European Union, which has roiled global markets.

·         Gold prices zoomed to 26-month high of Rs 30,885 per ten gram today in the biggest single-day gain of Rs 1,215 since August 2013 as Britain voted to exit the European Union leading to bloodbath in global equity and currency markets.


Politics
·         As Britain voted to leave the European Union in a landmark referendum, India on Friday said it values its ties with both the UK and EU and will strive hard to strengthen these relationships in the years ahead.

·         Meghalaya seeks exemption from coal mining law

·         US reiterates support for India's NSG bid

·         Govt may review provisions of Geospatial Bill that proposes jail term of seven years and a fine up to Rs 100 crore if anyone wrongly depicts India's map http://goo.gl/PlkfYR
                                                                                                               

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