1. How Modi Sarkar is Working on Multiple Solutions to Beef Up Bank Capital
The government may be willing to make sacrifices to give state-run banks a capital boost. It may forego dividends from them, resulting in a much-needed infusion of close to Rs 10,000 crore, as part of a holistic plan being drawn up by the finance ministry to strengthen public sector lenders laden with bad debt that’s accumulated over the years. India’s state-run banks need a lot of cash – about Rs 2.4 lakh crore capital by FY19.
Read more here.
2. Bad-Loan Problem May Not Remain So Bad This Fiscal: Moody’s
Indian banks may be able to check new bad loans or slippages, global rating company Moody’s said, citing expectations of global fund managers.
There was a 60:40 split between respondents expecting improvements in Indian banks’ asset quality in the financial year ending March 2016 (FY2016).
– Moody’s report
But credit quality woes are unlikely to fade away soon.
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3. Onion Prices Shoot Up to 200% as Supply Dips
Onion prices have shot up by up to 200% since the start of this month in some top wholesale markets of Nashik, one of the biggest onion production centres in the country, and by more than 40% in the last two trading sessions, as supplies have plummeted.
Average wholesale price of onion at Pimpalgaon APMC ( Agriculture Produce Marketing Committee) market rose to Rs 35.50 per kg on Tuesday, up from Rs 12.51 on July 1, Rs 21 on Friday and Rs 25 per kg on Saturday.
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4. Adani Group Plans Move into Fertilisers
The Adani Group, with revenues of $11.5 billion and interests in multiple sectors including logistics and energy, is planning a major foray into the fertiliser sector in a move that could help the country cut its expensive imports of urea.
The group’s two liquefied natural gas (LNG) terminals to come up on the east and west coasts and the massive pipeline infrastructure being created in the public sector are expected to come handy for the group in its fertiliser manufacturing enterprise.
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5. Sebi Cancels Sahara Mutual Fund’s Licence
In a fresh crackdown against Sahara Group, regulator Sebi today cancelled the registration of Sahara Mutual Fund saying it was no longer ‘fit and proper’ to carry on this business and ordered transfer of its operations to another fund house.
Sahara group has been engaged in a long-running regulatory and legal battle with Sebi ever since the regulator ordered refund of a massive amount of over Rs 24,000 crore by two Sahara entities. Recently, Sebi had also cancelled the Portfolio Management licence of a Sahara firm.
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6. CCI Imposes Rs 420-Crore Penalty on Hyundai
The Competition Commission of India (CCI) has imposed a penalty of Rs 420 crore on Hyundai for anti-competitive practices in the sale of its spare parts through authorised dealers alone.
In August last year, CCI had imposed penalties of Rs 2,554 crore on 14 carmakers for failure to make spare parts available in the open market. Most companies have secured individual stays on the CCI order and haven’t paid the fine.
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7. China Stocks Seen Dropping 14% as Market Mirrors 1929 US Crash
Chinese stocks will decline an additional 14% through the next three weeks, as the market demonstrates a trading pattern that mimics that of the US crash in 1929, according to Tom DeMark, who predicted the bottom of the Shanghai Composite Index in 2013.
The benchmark for mainland stocks would sink to 3,200, after plunging 8.5% to 3725.56 on Monday, the worst sell-off in eight years, DeMark said on Monday. That would extend its decline since a June 12 peak to 38%.
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8. Top Startups Like Flipkart, Snapdeal & Ola Join Unicorn Club of Firms With $1 bn Valuation & Hire Seasoned Executives
Flipkart, Snapdeal and Ola – the first three Indian startups to join the unicorn club of firms with $1 billion valuation – are increasingly hiring seasoned executives in key roles to help introduce new initiatives as well as to keep the boat afloat as they grow into big, multi-layered organisations.
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9. Maruti Suzuki Net Jumps 56% to Rs 1,192 Cr in Q1
Maruti Suzuki, the country’s largest car maker, reported a 56% jump, year-on-year, in its net profit in the June quarter and its net sales rose 18% to Rs 13,078 crore.
The growth in profit was driven by higher volumes and realisations, a better product mix, and a favourable exchange rate.
Read more here.