QBiz: Volatile 2016, Deficit Woes for RBI & Trouble For E-tailers

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Investment guru Mark Mobius is worried that global market volatility, which is being currently witnessed, may continue this year. (Photo: Reuters)

1. Global Market Volatility May Continue This Year, Say Experts: ET

Investment gurus Mark Mobius and Christopher Wood say the global market volatility, which is being currently witnessed, may continue this year. In a portfolio restructuring, Wood has removed L&T from Asia ex-Japan long-only portfolio and added RIL, according to an Economic Times report.

We think the type of market volatility that has been seen is likely to continue this year. Volatility is increasing in many markets and it is something investors need to learn to live with.

Mark Mobius, Executive Chairman, Templeton Asset Management

There is risk of more US Federal Reserve tightening and the resulting risk of further strengthening of the US dollar. And renminbi devaluation fears mean that it continues to remain risky to recommend an overweight for emerging markets on a benchmark-related basis. The extent of selloff in commodity-related stocks has made emerging markets reach capitulation proportions.

Christopher Wood, Managing Director & Chief Strategist, CLSA

Read the full report here.

2. Indian Markets’ Worst Week in Four Years: BS

Indian markets saw their worst weekly pounding in more than four years due to turmoil in the Chinese market.

The benchmark Sensex and Nifty dropped 4.7 percent in the first full week of 2016, their worst weekly performance since November 2011. On Friday, however, the Indian market, similar to global counterparts, saw some calm after the China market rebounded 2 percent buoyed by buying of shares by government authorities and suspension of circuit filters.

Read more here.

3. Govt Set to Re-Open Commercial Coal Mining to Private Firms After 40 Years: FE

Government is getting ready to open up commercial coal mining to private companies for the first time in four decades, with the aim of shifting the world’s third-biggest coal importer towards energy self-sufficiency.

Anil Swarup, the country’s top coal bureaucrat, told Reuters on Friday the government has identified mines it plans to auction, and is now finalising other terms such as eligibility criteria for companies to take part and whether and how to set up revenue sharing.

Read more here.

4. Deficit Woes Deny Rajan Room to Cushion India From China Turmoil: Livemint

A month after Chinese markets crashed last year, the Reserve Bank of India slashed interest rates by 50 basis points to help domestic demand make up for slowing global growth. That move may be harder to repeat in 2016.

Three weeks before his next rate decision, governor Raghuram Rajan faces inflation that threatens to stay above his 2017 target and a government that risks loosening its budget deficit goals. Foreign investors, which poured $10 billion into Indian stocks and bonds over the past year, have turned net sellers this month.

Read the full report here.

5. Govt May Further Hike Excise on Petrol, Diesel Before March: FE

The government is looking at one more hike in excise duty on petrol and diesel before March with a view to raising more revenue and stick to the fiscal deficit target of 3.9 percent of the GDP.

Government has already raised excise duty on petrol and diesel, three times in quick succession, which will help it garner an additional Rs 10,000 crore in the fiscal and partly make up for the shortfall in disinvestment receipts and direct tax collections.

Read more here.

6. Private Equity Firms Line Up to Exit E-Commerce Players: FE

Half a dozen small and medium e-commerce companies are planning to go public in the next two to three months as private equity (PE) players want to exit the firms before any further dip in the valuations happens. Three companies — Bharat Matrimony, Infibeam and AGS Transact — have already filed their draft prospectus with the regulator. Together, these three companies plan to raise more than Rs 2,000 crore from the primary markets, calculations based on regulatory filings showed.

According to FE that the three more companies are planning to file draft prospectus with the regulator in the next six months. While Bharat Matrimony and Infibeam are pure e-commerce companies, AGS Transact is a provider of end-to-end payment solutions and develops mobile and web-driven payments gateways.

Read more here.

7. Shackles on Leasing of Farm Land May Go: BS

The Centre is working out ways to promote legalisation of land leasing, to ensure tenant farmers have access to institutional credit, insurance and disaster compensation without affecting the landowner title.

A model Land Leasing Act being drafted could allow such use of land for agriculture without restriction. The legislation - seen as the first big land reform after the Narendra Modi government failed to drum up consensus on amendments to the Land Acquisition Act, 2013 - is expected to figure in a three-day meeting of state agriculture ministers in Sikkim from January 17, to be inaugurated by the Prime Minister.

Read more here.

8. PM to Inaugurate Make In India Week in Feb in Mumbai: BS

Prime Minister Narendra Modi will inaugurate the ‘Make in India’ week in Mumbai on 13 February, being jointly organised by the Centre and the Maharashtra government. The event will showcase India’s potential under the theme of innovation, design and sustainability across focus sectors.

Maharashtra is the host state, while CII is partner for the proposed event. Chief Minister Devendra Fadnavis on Friday formally launched its logo and released the week-long programme.

Read more here.

9. PepsiCo India to Bring Lay’s Crispz & Twitz to Take on Rivals: ET

Beverage and snacks major PepsiCo India is rolling out Lay’s Crispz and Twitz, two sub-brands with Rs 5 entry-level packs, to take the brand to the masses and thwart competition from regional snack makers.

While Lay’s has been available at price points of Rs 2, 3 and 5, the new sub-brands are aimed at countering competition from regional salty snacks players. With sales in beverages slowing to low single digits, the New Yorkheadquartered firm is banking on snacks to grow its business in the country.

Read more here.

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