#1. India's dedicated funds see record inflows of $1.25 billion in July's second week
Funds dedicated to India witnessed record inflows in the past few weeks, the Hindu Businessline reported. Last week saw inflows of $1.25 billion, with most of the money coming into exchange-traded funds at $848 million, data from EPFR and Elara Securities showed. A good portion came in from Ireland while consistent inflows were seen from the US, Japan, and Luxembourg. South Korea has also been a steady contributor.
Why it’s important: Overseas investors are convinced of India’s continued growth story. The inflows into dedicated funds have gathered pace since April last year when there was a shift from China to India.
#2. Flipkart plans to open 100 dark stores, intensifying the battle for market share in quick commerce
E-commerce firm Flipkart plans to open nearly 100 dark stores in top cities ahead of its Big Billion Days sale, intensifying the battle over quick commerce, the Economic Times reported. The Walmart-owned company will take on Zepto, Zomato’s Blinkit, and Swiggy Instamart this festive season.
Why it’s important: The rapid penetration of quick commerce could see the segment corner a large chunk of festival season sales and Flipkart wants a piece of that action. The expansion of faster deliveries into non-grocery segments is expected to gather pace.
#3. Care Health Insurance challenges regulatory power to set stock options for top executives
Rashmi Saluja-led Care Health Insurance has questioned the regulator’s powers to set stock options granted to insurance company executives, the Mint reported. Care Health wrote to the Insurance Regulatory and Development Authority of India that no action should be taken against it for awarding equity stock options to Saluja despite the regulator rejecting its proposal.
Why it’s important: This could potentially delay the Burman family’s bid to take over Religare Enterprises, the parent of Care Health Insurance. The Burmans have warned Care of legal consequences if it does not act to prevent Saluja from cashing in the stock options.
#4. Indian talent needs to play a role in chip design and not just fabrication, Semicon influencer says
India has the potential to “rise and emerge” as a major player in the next big semiconductor wave because its human capital is already driving technology giants Intel, Qualcomm, and Nvidia, Lip-Bu Tan, one of the most influential global voices in the multibillion-dollar chip industry, told the Economic Times. Tan will attend the launch of Yali Capital, a local deep-tech venture fund with a strong emphasis on chip design.
Why it’s important: The government has been aiming to make India a hub for semiconductors, but the country needs to play to its strength and focus on value additions such as chip design instead of fabrication, which is capital-intensive, power-guzzling, and riskier.
#5. Adani Power, NTPC, and JSW Energy are in a race to acquire bankrupt Sinnar Thermal
Adani Power, JSW Energy, Jindal Power, Vedanta Group, Torrent Power, and state-owned NTPC are among 15 firms that have submitted expressions of interest for providing a resolution plan to take over the debt-laden Sinnar Thermal Power near Nashik in Maharashtra, the Economic Times reported. The 1,350 MW power plant, a unit of RattanIndia Power, was initially developed by Indiabulls Power.
Why it’s important: This is a rare instance of an electricity generator being readily available in India, where building a new power project is both costly and time-consuming. No wonder there is such ample interest.
#6. The steep decline in bond issuances by India Inc in June quarter due to polls, rate cut hopes
Corporate bond issuances slumped in the April-June period due to the national election and expectations of a drop in yields due to anticipated rate cuts, the Mint reported. The number of issues fell to 247 from 287. Listed bond issuances through the electronic debt bidding platform (EBP) saw a sharp drop in the total amount raised in the fiscal first quarter to about Rs 1.6 lakh crore from Rs 2.42 lakh crore a year ago, according to BSE and NSE data.
Why it’s important: Part of the decline was due to the high base of the year-ago period. There could be a revival in the ongoing quarter as yields remain attractive and there’s strong investor appetite for long-term bond instruments from top-rated private sector issuers.
#7. Government to take measures to help exporters grappling with non-tariff barriers
The central government is working towards a strategy to tackle non-tariff barriers faced by exporters by setting up a committee and launching a portal, the Business Standard reported. The development comes at a time when India is negotiating free-trade agreements with several developed economies.
Why it’s important: Wealthy nations often undertake non-tariff environmental and sustainability measures that have become a cause for concern for Indian exporters. Non-tariff barriers typically take several years to resolve.
#8. Metal and power producers lobby for an easier visa regime for ex-pats like those in PLI sectors
Domestic metal and power producers have asked the federal government for a visa regime for ex-pats, including those from China, on par with that for firms in the 14 sectors under the flagship production-linked incentive schemes, the Economic Times reported.
Why it’s important: There are early signs of private capital formation in metals and power industries. The government could favorably consider easing the visa regime since delays in processing entry permits for foreign experts have emerged as a bottleneck.
#9. Banks step up measures to contain the huge increase in mule accounts in recent months
Commercial banks in the country have stepped up their control mechanism in taking on new current and savings accounts customers while boosting surveillance on existing ones, the Business Standard reported. This comes in the wake of an increase in the number of so-called mule accounts in the past six to nine months, bankers said.
Why it’s important: India has one of the most stringent KYC norms for the finance and banking sector. The illegal or mule accounts have been rising despite that and the lenders are acting on the urging of the banking overseer.
#10. Super sports Sunday sees superb sales for restaurants and bars across in India
Sports enthusiasts nationwide enjoyed an action-packed super Sunday, igniting a surge in business for restaurants and bars, the Business Standard reported. The day kicked off with the Wimbledon finals televised in India at 6.30 pm, followed by the Euro Cup finals starting at 12.30 am and concluding with the Copa América final in the early hours of Monday.
Why it’s important: It was a blockbuster Sunday for eateries and bars, who had stocked up in anticipation. There was a spike in home deliveries as well.
0 Comment