#1. India’s volatility index is close to a record low after falling the most in five years
The India Vix, a measure of stock market volatility, saw its steepest fall in five years to 10.2 and finished close to a record low, the Business Standard reported. It was the steepest decline since May 23, 2019, when the results of the Lok Sabha elections were declared, which was the 12th biggest single-day fall for the index since 2008. Unlike now, almost all the bigger declines have largely occurred on elevated Vix levels.
Why it’s important: The moderation in the fear gauge could be because markets have factored in a regime continuity after the general elections. A low reading indicates traders are not expecting wild swings.
#2. Same-day settlement of stock market trades sees few takes after 14 trading days since launch
The same-day settlement of stock market trades, also known as T 0, hasn’t found too many takers in 14 trading days since its launch, the Mint reported. An analysis of data from March 28 to 19 April for 25 eligible scrips on both the National Stock Exchange and BSE showed negligible levels of shares traded. The total number of trades under T 0 was 3,461, compared to 5.8 billion overall trades during this period.
Why it’s important: The same-day settlement of trades has been hailed as a bold move. It might take more time to take off once trade timings are extended and more scripts are included in the new series.
#3. Naveen Jindal Group readies plan to invest Rs 15,000 crore in green energy initiatives
The Naveen Jindal Group is finalizing a Rs 15,000 crore investment plan for the development of renewable energy projects that could become a source of captive clean fuel for its expanding steelmaking operations, the Economic Times reported. Jindal is the promoter of Jindal Steel and Power, which is expanding capacity expansion that could ramp up its steelmaking to around one and a half times the existing size.
Why it’s important: The conglomerate wants to power the new steel capacity additions through renewables. It would help the group reduce emissions and produce green steel, the demand for which is increasing in key markets.
#4. Reliance to launch new Wyzr brand to disrupt consumer electronic and home appliances market
Reliance Industries is planning to launch a new homemade brand called Wyzr, the Economic Times reported. The company is finalizing production agreements with local contract manufacturers Dixon Technologies and Onida parent Mirc Electronics. It wants to set up its plants in the medium term after the brand gains market share.
Why it’s important: A new brand launch by Reliance could disrupt the dominance of MNCs in India’s consumer electronics and home appliances market. The competition is expected to get fierce.
#5. Reserve Bank to scrutinize Rs 150 crore KYC fraud at Mahindra and Mahindra Financial Services
The Reserve Bank of India is looking into a Rs 150 crore KYC lapse disclosed by Mahindra and Mahindra Financial Services. Ahead of declaring March quarter results, India’s second-largest vehicle financier said in a regulatory filing that fraud in retail vehicle loans was uncovered at one of its branches in the northeast.
Why it’s important: The banking regulator could impose some restrictions on the shadow bank on the acquisition of new businesses once the details of the fraud are revealed.
#6. Supreme Court turns lens on India’s FMCG sector after misleading adverts by Patanjali
The Supreme Court has turned the spotlight on FMCG companies that may be issuing misleading advertisements, asking the central government to explain steps taken against such firms since 2018, the mint reported. It has asked several central ministries to examine violations of the Drugs and Magic Remedies Act, Drugs and Cosmetics Act, and the Consumer Protection Act, and asked them to become parties in the case against Patanjali founder Ramdev initiated by the Indian Medical Association.
Why it’s important: The medical association urged action against Patanjali for issuing misleading ads that undermined the efficacy of modern medicine. The apex court has taken the yoga guru to task but has also extended its concerns to the entire FMCG industry.
#7. Bharti Airtel in discussions to acquire Vodafone’s 21 percent stake in Indus Towers
Bharti Airtel is in talks to buy the UK-based Vodafone Group’s 21.05 percent stake in Indus Towers, which could give India’s second-largest telco a controlling interest, the Economic Times reported. The talks are said stuck over valuation because Airtel is unwilling to acquire Vodafone’s stake at the current Indus share price, which has jumped over 77 percent since January.
Why it’s important: If Vodafone sells its Indus stake, the UK parent could infuse some of the money into cash-strapped Vodafone Idea. Whether it agrees to sell the stake at a discount remains to be seen.
#8. Walmart-owned payments firm PhonePe invests Rs 426 crore into insurance broking services
Walmart’s PhonePe has invested over Rs 800 crore in its subsidiaries in the last year to grow businesses ranging from insurance broking to wealth management and hyperlocal e-commerce, the Economic Times reported. More than half of this, or Rs 426 crore, went to PhonePe Insurance Broking Services. PhonePe has infused more than Rs 1,000 crore as equity investment in its insurance unit since it was licensed.
Why it’s important: The investments are a clear indication of the digital payment company’s intention to build a retail cover distribution business. It is unclear whether that will fetch lucrative returns.
#9. A new fabrication plant factory for the Semi-Conductor Laboratory could cost Rs 20,000 crore
The central government’s modernization plan for the Mohali-based Semi-Conductor Laboratory will require an investment of Rs 20,000 crore for a new fabrication plant with a capacity of 20,000 wafers per month, the Business Standard reported. For comparison, the Tata fab plant in Dholera in Gujarat will produce 50,000 wafers per month.
Why it’s important: The government’s modernization plan for advanced chips is quite ambitious and is in line with its aim to make India a manufacturing hub for semiconductors.
#10. Hybrid cars in India to stay costly in India as no decision yet on high cess load
Hybrid cars in India may remain costly for a while, with a top panel tasked to review taxes on them yet to formally meet even once, the Mint reported. Besides, any change in automobile taxes is unlikely without a comprehensive overhaul in the goods and services tax framework, experts said.
Why it’s important: The government wants to review whether hybrid cars should have lower compensatory cess. The auto industry is divided on the issue. An outcome remains uncertain.
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