Morning Capsule: Your Pre-Market News Update

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  • 27 Feb 2023

Here’s a look at the news flow yesterday:

NIFTY Struggles At 12,000; US Markets Correct On Trade Deal Worries

A day after the US passed a resolution demanding human rights must be protected in Hong Kong, markets corrected once again. Assurances from China that the deal was on track did not really help sentiments. The trade deal had run into rough weather after China warned the US against interfering in Hong Kong affairs. US had set the ball rolling with a license extension to Huawei.

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Crude Oil Spurts 189 Bps To $63.58/bbl As Political Risks Get Accentuated In OPEC

The sharp spurt in the crude oil prices on Thursday had a more localized reason. Political tensions appear to be simmering in key OPEC nations like Iran and Iraq where a financial crunch is taking its toll. Venezuela and Algeria are already volatile and the recent drone attacks on Saudi Arabia only add to the instability in the region. Prices moved up on expected supply shocks in crude oil.

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Spectrum Dues Moratorium Unlikely To Help The Telecom Companies

According to a report in the Hindu, the 2 year moratorium on spectrum dues is unlikely to help the telecom companies. Their real challenge was the AGR charges and that has left a big hole in their books in the second quarter. The telecom minister has already underscored that there will be no waiver of interest or penalty and no moratorium on the 3-month time frame for AGR.

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SBI Mutual Fund Expected To Be Listed On The Exchanges Within Two Years

The CEO of SBI MF averred that SBI would also list its MF business in the next two years. The two listed AMCs in India; HDFC AMC and Nippon AMC have seen a sharp rally in the last few days. SBI MF has an AUM that is closing in on HDFC and ICICI Pru while the equity AUM is already the largest for SBI. Normally MF valuations are based on equity AUM. SBI MF is a JV between SBI and Amundi.

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Bank Lending Stands At Rs.250,000 Crore In The Month Of October

The big push given by the finance minister to bank lending appears to have paid dividends in the month of October. Nearly half the total disbursement was to the corporate sector and out of that nearly 1/3rd was to the MSME segment across India. This should come as a major boost for industrial activity as it indicates that the credit wheels have once again started churning.

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Saudi Aramco Institutional Portion Of The IPO Gets Oversubscribed

According to a Reuters report, the institutional portion of the IPO received $17.1 billion worth of bids, giving Aramco an opportunity to exercise the greenshoe option. The response to the retail portion is still quite tepid but that is expected to gradually pick up. The current valuation pegs the overall market cap of Saudi Aramco at $1.71 trillion, making it the world’s most valuable company.

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Other News Highlights

  • India's gold imports, which have a bearing on the current account deficit (CAD), dipped 9 percent to USD 17.63 billion (about Rs 1.25 tn) during April-October period of the current fiscal, according to Commerce Ministry data. Imports of the yellow metal stood at USD 19.4 billion in the same period of 2018-19. (Business Line)

  • IDBI Bank has entered into a share purchase agreement with Muthoot Finance to sell its entire stake of 66.67 percent in IDBI Asset Management and entire 100 percent stake in IDBI MF Trustee Company for Rs. 2.15 bn.(Bloomberg Quint)

  • In Vodafone Idea, Care Ratings has downgraded its rating for long-term bank facilities, NCDs from BBB- to A-. (Bloomberg Quint)

  • Bharti Airtel, Vodafone Idea filed review petitions on top court fees ruling, according to Bloomberg report. (Bloomberg Quint)

  • Power Grid has been declared as successful bidder in 2 intra-state transmission system projects of UP under tariff based competitive bidding. (Bloomberg Quint)

  • Power Grid Corporation of India Ltd (PGCIL) will "fight" any attempts by the Department of Telecommunications (DoT) to seek additional licence fees on the basis of a recent Supreme Court ruling, beyond the amounts that the state-owned enterprise has already paid, a senior official said. (Economic Times)

  • Reliance Communications said its lenders have rejected the resignation of Chairman Anil Ambani and four other directors, and asked them to cooperate in the ongoing corporate insolvency resolution process. (Mint)

  • SAIL is awaiting a response from ArcelorMittal regarding setting up a joint high-end automotive steel plant in India for which its board had given a go-ahead about two years ago, a top company official SAIL said. (Mint)

  • Unichem Laboratories received an abbreviated new drug application approval for Atenolol Tablets from U.S. FDA. (Bloomberg Quint)

  • Aurobindo Pharma expects to become a debt free company in the three next years barring the amount it is spending on acquisition of Sandoz products, a senior official of the city-based company has said. (ET)

  • The American health regulator has pulled up Torrent Pharmaceuticals' US-based subsidiary for violations of good manufacturing practices, including a lack of adequately designed equipment and packing material. (Money Control)

  • In BPCL, the government has set a 50-day deadline for an outside 'asset valuer' to carry out the valuation of all assets of Bharat Petroleum Corp Ltd (BPCL), a process once completed will trigger invitation of price bids from potential acquirers. (ET)

  • State-run power company NTPC is likely to raise around Rs. 100 bn through green bonds for acquisition of the government's stake in THDC India Ltd (THDCIL) and North Eastern Electric Power Corporation Ltd (ET)

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