- Zero maintenance charges
- Zero fees for demat account opening
- Volume based brokerage
Read More >
-
Weekly wrap-up: Market updates, news and insights for the week ending 08th February, 2019
Publish date: 08th February, 2019
News: Nifty closed -126 points lower at 10,944 on the back of Friday selling
Perspective:
- Financials metals and auto stocks took a sharp hit on Friday as the Nifty closely decisively below the 11,000 mark despite the budget and credit policy euphoria.
- The selling was very broad based on Friday with the Nifty reporting an advance/decline ratio of 9:41 in favour of the declines.
Related reads
Why we have a Buy call on Tata Motors
What is dampening the Indian stock market?
Reasons why the Nifty is walking a tightrope
News: February Monetary policy cuts repo rates by 25 bps to 6.25%
Perspective:
- The 25 bps cut in repo rates automatically brings the reverse repo rate under LAF to 6.00% and the Bank Rate and the MSF rate to 6.50%.
- Apart from the 25 basis points rate cut, the RBI also modified the stance of the monetary policy from “calibrated tightening” to a “neutral” stance
Related reads
5 reasons why the RBI needs to lower borrowing rates?
To hike or not to hike – The RBI dilemma
5 trends to follow on bank interest rates
What the RBI minutes reveal about future rates direction
News: RBI policy statement liberalizes ECB and FPI inflow terms
Perspective:
- External Commercial Borrowings (ECBs) route can now be used by NCLT bidders to repay the loans of stressed companies, a facility that was hitherto disallowed
- The group exposure limit of 20% for foreign portfolio investors (FPIs) to invest in corporate bonds has also been removed, leaving the discretion to the investor
Related reads
Banks – Retail loan growth in top gear
5 reasons why bank loan data matters
News: Banks move DRT for invoking Ruias personal guarantee on Essar Power
Perspective:
- ICICI Bank and IDBI have moved the Debt Recovery Tribunal (DRT) seeking to cash the personal guarantees given by Essar promoters for outstanding loans of Essar Power
- Interestingly, Essar promoters have also been making a bid to hold on control over Essar Steel by offering to settle loans at 30% better than the best bid by Arcelor Mittal
Related reads
Why we have an Add call on Tata Steel
Why India’s biggest steel maker is a sell
4 things to know about Tata Steel / Thyssen Krupp merger
News: RBI board meeting for interim dividend postponed till 18th February
Perspective:
- The meeting had assumed importance after the government demanded that the RBI pay the surplus transferred to the contingency in the previous year, to the government
- On the sidelines of the policy press conference, RBI Governor underlined that the government did have the first claim over RBI surplus.
Related reads
What invoking of Section 7 of the RBI Act really means
5 things to know about RBI Bankruptcy Code
7 changes in Indian banks since 2016
4 things to know about bank credit growth in 2018
News: India looks to shift to prepaid power as power dues pile up rapidly
Perspective:
- The total accumulated dues payable by power retailers to power generators has crossed $5.7 billion, making a strong case for shifting to prepaid power model.
- According to a report in Bloomberg, nearly 20-25% of the power gets lost in transmission due to factors like bad infrastructure, theft and illegal pilferage.
Related reads
Power Sector bad loans: All you need to know
Why we have a Buy call on ICICI Bank
7 things to know about corporate governance
4 things to know about bank credit growth in 2018
News: Indian steel manufacturers are back to seeking protection from imports
Perspective:
- Steel producers have been caught between rising input costs and falling steel prices in the last few months, that has impacted their profit margins
- The Steel Industry has protested about the consistent dumping of cheap steel into India by Asian steel producers like China, Japan, Vietnam and South Korea.
Related reads
4 things to know about impact of trade wars on India
6 things to know about Chinese currency devaluation
News: UK Home Secretary has approved the extradition of Vijay Mallya to India
Perspective:
- The extradition request was made by the Indian government against Mallya who had left for UK after defaulting on bank loans to the tune of Rs.9000 crore
- This is only the first step as Mallya can now move the UK High Court and then the Supreme Court. Final decision will be at the discretion of the UK Secretary of State
Related reads
5 things to know about bank NPAs
Why we have a Reduce call on United Spirits
7 things to know about GST Bill
5 reasons why bank loan data matters
News: Government announced PM-KISAN cut-off date as February 01st 2019
Perspective:
- This cut off date will decide the beneficiaries of the PM-KISAN plan to give Rs.6000 per year as direct income transfer to marginal farmers having less than 2 hectares of land.
- While states have been instructed to finalize the list of beneficiaries, the PM-KISAN is yet to get complete buy-in from the non-NDA ruled states in India
Related reads
Scattered rain may pour cold water on rural demand
5 things to know about farm loan waivers
5 reasons why rural and urban inflation differ
By: Sandhya Kannan, Head – Content
Click here to go back 
