“You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express.

Let’s begin with some market news. The Securities and Exchange Board of India has decided to permit foreign portfolio investors to participate in the exchange-traded commodity derivatives market. The presence of overseas players is expected to help deepen the market. FPIs will be allowed to trade in all non-agricultural commodity derivatives and select non-agricultural benchmark indices. In the initial phase, contracts will be settled in cash. At its board meeting, Sebi also approved amendments to rules governing mutual funds and portfolio managers and approved changes to provisions of the SECC Regulations relating to limited purpose clearing corporation for clearing and settlement of corporate bond repo transactions. The existing eligible foreign entity route, which required actual exposure to Indian physical commodities, has been discontinued, Sebi said in a release.
On to the banking sector. The finance ministry has asked the large state-run lenders – such as Punjab National Bank, Canara Bank, Union Bank and Indian Bank – to submit a report on the impact of the massive consolidation exercise that they went through in April 2020, sources told FE. The idea is to conduct a comprehensive analysis of the results of the merger exercise. One of the sources said that among other things, the report is being sought to ascertain whether the intended benefits of consolidations have been reaped and what lessons can be learnt from such exercises. The analysis of the impact is very important for prudent policy-making. The report will likely comprise details of their performance in various aspects – including bad loans, credit flow, profitability, cost reduction and utilisation of resources — since the merger.
In some more banking news, Bankers in India recorded their best-ever quarter for mergers and acquisitions while dealmaking elsewhere slows to a crawl, a Bloomberg report says. India saw $82.3 billion pending and completed M&A deals in the second quarter, the highest amount on record, according to data compiled by Bloomberg. That’s more than twice as much than the previous record of $38.1 billion in the third quarter of 2019. Globally, M&A volume in the quarter reached $827.6 billion, down 8.7% from the same period in 2021. The surge in India was dominated by HDFC Bank’s $60 billion all-stock purchase of Housing Development Finance Corp in April, combining India’s most valuable bank and largest mortgage lender in the country’s biggest ever M&A transaction. The move illustrated how India’s flagship companies, facing disruptive trends such as the rise of fintech and climate change, are turning to dealmaking as a tactic to dramatically reshape themselves.
“Moving on. Finance Minister Nirmala Sitharaman has said that the government will review every fortnight the new taxes levied on crude, diesel and ATF based on international prices. She said these are “extraordinary times” and oil prices are internationally unbridled. Sitharaman said that the government does not want to discourage export, but wants domestic availability to increase. She said that if oil is not being available and exports are happening at such phenomenal profit, we need at least some of it for our own citizens. The government on July 1st slapped an export tax on petrol, diesel and jet fuel while also joining nations like the UK in imposing a windfall tax on crude oil produced locally. On the rupee, the finance minister said the Reserve Bank and government are keenly watching the situation. The government is conscious of the impact of the rupee value on imports.

Next up, economy. Domestic rating agency Crisil has lowered its real GDP growth forecast for India to 7.3 per cent in FY23 from 7.8 per cent estimated earlier. It attributed the downward revision to higher oil prices, slowing of export demand and high inflation. This is in line with the RBI’s estimate of 7.2 real GDP growth for this fiscal year. Crisil said there are a slew of negatives like high commodity prices, elevated freight prices, drag on exports as global growth projections get lowered, and the largest demand side driver of private consumption remaining weak. It said that the only bright spots are the uptick in contact-intensive services and forecast of a normal and well-distributed monsoon.
And lastly, some industry news. HCL Technologies was recognised at Microsoft Partner of the Year Awards 2022, for innovation and implementing customer solutions based on Microsoft technology. HCL Tech bagged Microsoft Partner of the Year Award for Healthcare and Life Sciences and the 2022 UK Microsoft Partner of the Year Award. The IT company was also named a finalist in the 2022 Microsoft Partner of the Year Award for Internet of Things. Microsoft Partner of the Year Awards are announced annually before the company’s global partner conference, Microsoft Inspire, which will take place on July 19-20 this year.

You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories.

Expresso Business Highlights of the week“You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express.

Let’s begin with some market news. The Securities and Exchange Board of India has decided to permit foreign portfolio investors to participate in the exchange-traded commodity derivatives market. The presence of overseas players is expected to help deepen the market. FPIs will be allowed to trade in all non-agricultural commodity derivatives and select non-agricultural benchmark indices. In the initial phase, contracts will be settled in cash. At its board meeting, Sebi also approved amendments to rules governing mutual funds and portfolio managers and approved changes to provisions of the SECC Regulations relating to limited purpose clearing corporation for clearing and settlement of corporate bond repo transactions. The existing eligible foreign entity route, which required actual exposure to Indian physical commodities, has been discontinued, Sebi said in a release.
On to the banking sector. The finance ministry has asked the large state-run lenders – such as Punjab National Bank, Canara Bank, Union Bank and Indian Bank – to submit a report on the impact of the massive consolidation exercise that they went through in April 2020, sources told FE. The idea is to conduct a comprehensive analysis of the results of the merger exercise. One of the sources said that among other things, the report is being sought to ascertain whether the intended benefits of consolidations have been reaped and what lessons can be learnt from such exercises. The analysis of the impact is very important for prudent policy-making. The report will likely comprise details of their performance in various aspects – including bad loans, credit flow, profitability, cost reduction and utilisation of resources — since the merger.
In some more banking news, Bankers in India recorded their best-ever quarter for mergers and acquisitions while dealmaking elsewhere slows to a crawl, a Bloomberg report says. India saw $82.3 billion pending and completed M&A deals in the second quarter, the highest amount on record, according to data compiled by Bloomberg. That’s more than twice as much than the previous record of $38.1 billion in the third quarter of 2019. Globally, M&A volume in the quarter reached $827.6 billion, down 8.7% from the same period in 2021. The surge in India was dominated by HDFC Bank’s $60 billion all-stock purchase of Housing Development Finance Corp in April, combining India’s most valuable bank and largest mortgage lender in the country’s biggest ever M&A transaction. The move illustrated how India’s flagship companies, facing disruptive trends such as the rise of fintech and climate change, are turning to dealmaking as a tactic to dramatically reshape themselves.
“Moving on. Finance Minister Nirmala Sitharaman has said that the government will review every fortnight the new taxes levied on crude, diesel and ATF based on international prices. She said these are “extraordinary times” and oil prices are internationally unbridled. Sitharaman said that the government does not want to discourage export, but wants domestic availability to increase. She said that if oil is not being available and exports are happening at such phenomenal profit, we need at least some of it for our own citizens. The government on July 1st slapped an export tax on petrol, diesel and jet fuel while also joining nations like the UK in imposing a windfall tax on crude oil produced locally. On the rupee, the finance minister said the Reserve Bank and government are keenly watching the situation. The government is conscious of the impact of the rupee value on imports.

Next up, economy. Domestic rating agency Crisil has lowered its real GDP growth forecast for India to 7.3 per cent in FY23 from 7.8 per cent estimated earlier. It attributed the downward revision to higher oil prices, slowing of export demand and high inflation. This is in line with the RBI’s estimate of 7.2 real GDP growth for this fiscal year. Crisil said there are a slew of negatives like high commodity prices, elevated freight prices, drag on exports as global growth projections get lowered, and the largest demand side driver of private consumption remaining weak. It said that the only bright spots are the uptick in contact-intensive services and forecast of a normal and well-distributed monsoon.
And lastly, some industry news. HCL Technologies was recognised at Microsoft Partner of the Year Awards 2022, for innovation and implementing customer solutions based on Microsoft technology. HCL Tech bagged Microsoft Partner of the Year Award for Healthcare and Life Sciences and the 2022 UK Microsoft Partner of the Year Award. The IT company was also named a finalist in the 2022 Microsoft Partner of the Year Award for Internet of Things. Microsoft Partner of the Year Awards are announced annually before the company’s global partner conference, Microsoft Inspire, which will take place on July 19-20 this year.




You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories.


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