Morning Scanning: Every major story to begin your day

 Morning Scanning: Every major story to begin your day

A synopsis of the most important news items to stay one step ahead of others

1. Indian stock markets stopped trading before the monetary policy announcement

A day before the Reserve Bank of India's monetary policy announcement, investors breathed a sigh of relief when India's benchmark index dipped following seven straight trading days of advances. Both the 50-share Nifty and the 30-share Sensex saw declines of 0.17 and 0.19 percent, respectively, to 20,901.15 and 69,521.69 points. The benchmark's 0.9 percent fall was driven by consumer stocks.

Why this matters In the near future, analysts anticipate a consolidation of the market. For the seventh week in a row, policy rates are anticipated to remain steady by the central bank's rate-setting panel.

2. In 2023, corporate India plans to issue bonds to the private market for a total of Rs 8.97 lakh crore.

With three weeks remaining in the year, Indian corporations have raised a record-breaking Rs 8.97 lakh crore via low-cost private corporate bond placements, which are due in 2023. This exceeds the previous record, which was set in 2020 with Rs 7.95 lakh crore raised. According to Prime Database, they raised a total of Rs 7.58 lakh crore via this way last year.

Why this matters The extraordinary surge in demand for privately issued corporate bonds was mainly caused by decreased financing costs and a rise in credit demand brought on by faster-than-anticipated growth and greater economic activity.

#3. International private equity firms are vying for a majority position in Sai Life Sciences

At a value of $600-700 million, talks are underway for the acquisition of a controlling position in Sai Life Sciences by global private equity groups Bain Capital, KKR, and Advent International. With a $135 million investment in SAI in 2018, TPG Capital now owns a 43.4 percent share in the business. As part of the deal, TPG and entrepreneur Krishna Kanumuri may each sell a share.

Why this matters Pharmaceutical manufacturing and contract research and development firms are well-established in Western markets. Investor interest has surged due to the notable expansion that Indian enterprises in this area have had in recent years.

#4. Paytm's growth prospects are harmed by its choice to discontinue small-ticket loans.

Once One97 Communications, the company that operates Paytm, announced that it will reduce investment in the postpaid lending sector, analysts slashed the company's projected growth in revenue and operating profit by ten to fifteen percent. Its growth pace will probably slow down as a result. The judgment caused stocks to drop.

Why this matters The central bank's decision to raise the risk weight for unsecured retail loans precedes Paytm's action. It is expected of others as well. Some could even decide to shut down their companies.

#5. The government relaxes regulations allowing SEZ developers to sell vacant land

The Commerce Ministry has modified the regulations to facilitate development of Special Economic Zones pertaining to information technology. Developers in domestic tariff zones, such as DLF and Hiranandani Group, are now able to utilize their free areas for uses other than IT.

Why this matters: In areas where office space is in high demand, the extra space is anticipated to increase. The intricacies of the new standards need more clarification.

#6. Western decision to outlaw Russian rough diamonds infuriates India's diamond exporters

Indian diamond dealers are concerned about the G7's proposal to prohibit the import of polished diamonds derived from Russian raw stones starting in March. In 2022–2023 India's $22.04 billion diamond exports came from more than a third of the US, ahead of Hong Kong at 25.16 percent.

Why it matters: Since the US is India's biggest market, the restriction would significantly affect the country's diamond exports. With 14 of the world's 15 raw diamonds processed by Indian diamond sellers, they have good reason to be worried.

7. ChrisCapital purchases the bulk of software company Prohance Analytics

By acquiring a 75% share in Prohance Analytics, Indian private equity company ChrisCapital has entered the software-as-a-service market in India. Prohance's founders and senior executives will stay with the firm after the purchase, according to ChrisCapital. The financial specifics of the sale were not disclosed.

Why this matters With a $12 billion SaaS business, India has enormous development potential. In less than four years, its worldwide market share is predicted to increase by 5 to 8 percent.

#8. The Minister predicts that by 2023–2024, Indian mobile manufacturing would generate $50 billion.

According to IT Minister Ashwini Vaishnav, India's production of mobile phones is expected to generate $50 billion in revenue in the current fiscal year, with $15 billion coming from exports. He predicted that the nation's overall export earnings will eventually surpass $1 trillion.

Why this matters: India's fourth-largest export category is now cellphones. A significant portion of this is attributable to the government's production-linked incentive program.

#9. SpiceJet, which is having financial difficulties, may be able to obtain more money by offering equity shares.

SpiceJet, which has been experiencing a liquidity constraint for a number of quarters, has said that its board is thinking about ways to obtain more funds via the preferential issuance of shares or convertible instruments. From 2018 to 2019, it has incurred losses, showing a net loss of Rs 1,513 crore in 2022–2023 and Rs 1,744 crore in 2021–2022. In the March quarter, the airline generated a profit of Rs 197.6 crore.

Why it matters: SpiceJet is having financial difficulties, but it hasn't filed for bankruptcy yet. Raising money will buy it more time to implement the measures.

#10. The Finance Minister claims that the economy is doing admirably as a result of government policies.

Ahead of the parliamentary elections in 2019, Finance Minister Nirmala Sitharaman vehemently defended the government's efforts on the fronts of economic and welfare, stating that India continues to be the largest economy with the quickest rate of growth, with contributions from all sectors.

Why it matters: The Finance Minister has ruled out making any big announcements in the interim budget since the economy is doing rather well.