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[business2businesscom]

The government is exempted from making an open offer to VIL shareholders by the Sebi

Market regulator Sebi on Wednesday exempted the government from making an open offer to shareholders of Vodafone Idea Ltd (VIL) in line with its plan to acquire more than 33% of the telecom operator's capital in a share-to-equity conversion. In a nine-page injunction, Sebi said it is proposing that the Government of India (GoI) take over the stake in VIL for the sole purpose of salvaging the general public interest.

“Furthermore, the Government of India does not intend to participate in the management or board of the VIL and there will be no change of control over the VIL. Furthermore, such participation in the Government of India is classified as a public participation.” Sebi said in making the waiver to make the open offer.

[business2businesscom]

India has put GST rate changes on hold until inflation is under control

Simplification of the goods and services tax (GST) rates is likely to be delayed due to inflationary pressures and geopolitical tensions, a senior Treasury Department official said commenting on the economy, asset sales and the program. of government loans.

The centre obtained legal advice on the sale of Pawan Hans and Central Electronics Ltd (CEL), which ran into complications amid accusations against the winners, the official said.

The government's store is disorganized with a prêt plan on the market and exploration of other options to leverage funds in order to compensate for the loss of food subsidies and engrais and the loss of income due to measures to contain inflation these last days.

The Group of Ministers (GoM) set up by the GST Council to review tax rates has not yet finalized its report.

[business2businesscom]

Govt committed to privatize 2 public sector banks

According to reports, the government is on track to privatize two public sector banks (PSBs) and would take proper steps in the coming months.

The administration stated its intention to privatise two PSBs this year in the Union Budget for 2021-22, as well as a policy of strategic disinvestment of public sector firms. The administration is dedicated to privatising two public sector banks, according to sources, and it is on track. BPCL's divestiture is also on the cards, according to sources, and new offers will be sought. According to insiders, the government was forced to terminate the auction because only one bidder remained in the running. The government had planned to sell its full 52.98 percent ownership in Bharat Petroleum Corporation Ltd (BPCL) in March 2020, and had invited bidders to submit Expressions of Interest. By November 2020, at least three offers had been submitted, but only one remains as the others withdrew.

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Rupa & Co. has dropped the most after its IPO due to poor results and the departure of management

Rupa & Co. Ltd., one of India's largest and largest knitwear brands, saw its share price fall 18% on weak Q4 FY22 results and the departure of its CEO. The stock price decline was the largest since the company went public on September 9, 2011.

The company's revenue was flat year-over-year, but operating income and net income declined. Q4FY22 Consolidated YoY, Revenue stable at Rs 455 Cr vs Rs 454 Cr, Net Profit down 26% at Rs 49 Cr vs Rs 66 Cr, EBITDA down 18% at Rs 74 Cr vs Rs 91 Cr, EBITDA margins down 370 basis points down 16.3% vs. 20%.

[business2businesscom]

The RBI has raised the limit on home repair loan

As interest rates on loans rise, you can now sanction a higher loan amount for home improvements.

In a circular issued on Tuesday, the Reserve Bank of India (RBI) said the ceiling on loans to make repairs, additions or conversions to your home is now raised in metropolitan areas (those with a population of 10 lakh and above) and Rs 6 lakh in other centres. The circular is addressed to all primary (municipal) credit unions.

The limit was changed from the old Rs 2 lakh in rural and semi-urban areas and Rs 5 lakh in urban areas as reported by the RBI on 13th September 2012.

Home improvement loans are used to finance repairs or additions that could improve the retail value and aesthetics of your home. For example, you could get a renovation loan to remodel your kitchen or paint the exterior of your home.

[business2businesscom]

Top 10 Best Laptops for students in India 2022 (May)

Laptops are ubiquitous today and especially important for students. From preparing for exams to completing assignments and reports, laptops allow students to get their work done with relative ease. If you are looking for the best laptops for students in India, here are the ten best budget laptops currently available on the market.

Best Laptops for Students in India

Today's students need powerful devices to get their work done easily and with minimal effort. However, it is also important that these laptops are compact and lightweight so that they can be easily transported.

The best laptops for student have fast processors, a decent amount of RAM, and long battery life, so students can easily work on these devices while sitting at college, the library, or a coffee shop.

[business2businesscom]

Quad has gained significant place at world stage in short span of time : PM Modi

The four Indo-Pacific leaders of the "Quad" group pledged on Tuesday to start talks together for a free and open region and also to fight climate change.

US President Joe Biden, Prime Minister Narendra Modi, Japanese Prime Minister Fumio Kishida and new Australian Prime Minister Anthony Albanese will also hold bilateral meetings, with Modi meeting Kishida for talks and a luncheon. work after talks end.

“Despite the unfavourable situation of COVID19, we have strengthened our coordination for vaccine delivery, climate protection, supply chain resilience, disaster relief, economic cooperation and other areas. It has ensured peace, prosperity and stability in the Indo-Pacific,” Prime Minister Narendra Modi told the Quad Leaders’ Summit.

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On day two of bidding, the LIC IPO was completely subscribed

India's largest initial public offering (IPO) of insurance giant Life Insurance Corporation (LIC) was fully subscribed on day 2 of the auction, according to exchange data.

Offers were received for 16.250 million shares against 16.20 shares offered for sale by LIC IPO.

The section reserved for policyholders and employees is the one that has received the most raffles. While the insured party subscribed 3.07 times, the salaried party subscribed 2.14 times.

By comparison, the ratio of qualified institutional buyers (QIBs) to non-institutional investors (NIIs) has so far received a mixed response. The non-institutional segment was subscribed at 46%, while QIB's share was just under 40%.       

Retail investors bought nearly 91% of the 6.9 billion shares earmarked for this segment.

The LIC IPO opened for subscription on May 4 and will remain open until May 9, including Saturday and Sunday.

The price range of the initial public offering has been set at Rs902-949 per share.

The offer includes reservation for eligible employees and insured. Retail investors and eligible employees receive a refund of Rs 45 per share, while policyholders receive a refund of Rs 60 per share.

The government intends to generate around Rs 21,000 crore by diluting its 3.5% stake in the insurance giant.

[business2businesscom]

Which industries should you bet on, in the current market sell-off?

In its monthly outlook report, Axis Securities said the direction of 10-year US bond yields should be watched closely in the near term as it will be a key market driver. “Furthermore, prevailing geopolitical developments are likely to continue to take center stage for some time before tapering off in a more tangible direction. The market will also continue to watch for rising Covid-19 cases, central bank action and the impact of the lockdown in China. Therefore, its performance should be limited in the short term," he said.

     This is what the broker had to say about 13 sectors:

Automobile

While the Indian auto sector has witnessed a significant improvement in demand and most categories are seeing good traction, the current lockdowns are expected to negatively affect the demand scenario. In addition, rising input costs are taking a toll on automakers, with leading companies like Maruti reporting disappointing margins. The auto sector expects demand to pick up and many companies are posting decent profits from current levels. However, the sector remains mixed at the moment as lower than expected volume could lead to lower than expected margins. The brokerage downgraded the sector to "Equal Weight" from "Overweight."

Banking and financial services

BFSI outperformed the broader market from November 2020 to February 2021 as Covid-19 challenges were lower than expected and banks were better prepared. However, reimposing locks will have a negative impact on their performance. Although Axis Bank and ICICI Bank released a good set of numbers, economic challenges cannot be wished for and banks will have to bear the brunt of the current challenges. It remains to be seen whether demand for credit increases as the economy gradually recovers. Axis Securities has downgraded the sector to 'Equal Weight' and continues to monitor developments in the sector.

Equipment Goods

The sector returned to normal at the end of FY21, with the fourth quarter of FY21 supported by an increase in gross fixed capital formation. The government investment cycle continues to be strong and housing registrations in metropolitan cities continue to see strong traction. The private investment cycle should pick up soon, further supporting the capital goods sector. Axis Securities upgraded its position in the capital goods sector from underweight to equal weight

Cement

The cement sector had pricing power in the fourth quarter of FY21 and made it through tough times. Axis Securities maintained its equal weight position in the sector as it expects a better pricing scenario to evolve in the future. Demand is also picking up in several regions, which has come as a welcome surprise, he said. In general, Axis Securities believes that the cement sector has held up better than expected. Therefore, he kept his prospects at the same weight.

Basic Consumption

The consumer staples sector saw a good recovery in demand and posted strong revenue growth in the fourth quarter of fiscal 2021. However, gross margin pressure was clearly visible due to headwinds from raw Materials. While the sector has strong earnings visibility and best-in-class earnings ratios, high valuations relative to other sectors limit upside potential even as earnings visibility improves across the board, Axis Securities said. The broker maintained its Weight Equity in the sector.

Discretionary Consumption

While the consumer discretionary space is seeing a strong recovery and many categories are normalizing, the current lockdowns pose serious challenges to the rate of recovery. However, with the improving trajectory of COVID-19, the outlook for the sector is improving. Axis Securities continued its Equal Weight stance and kept an eye on developments in this space.

Information Technology

Large IT companies continued their growth momentum in the fourth quarter of FY21, buoyed by strong contract awards and online performance on the margin front. The sector is in a revaluation cycle and this trend should continue in the medium term. The IT space is marked by companies with strong balance sheets and playing to the prevailing digitization trend. Even at current levels, valuations in the IT sector are reasonable. Axis Securities recommended an overweight position in the sector.

Metals and Mining

The metals and mining sector experienced a significant upward trend in prices with an improved global scenario. This trend should persist in the medium term and metal stocks should perform well. Axis Securities has revised its position in the sector to Over Weight.

Oil and Gas

Oil trading companies benefited from the gain in inventories and better GRM in Q4FY21. Additionally, CMOs also performed better overall. The net profit of the sector is expected to remain stable due to higher crude oil prices and the probability of strong refining margins due to a better balance between supply and demand. Upstream companies could surprise positively in the scenario of higher-than-expected crude oil prices. With this in mind, Axis Securities moved the sector from underweight to equal weight.

Pharmaceuticals

Q4FY21 results for Pharma were mixed with a not-so-encouraging performance from US companies. While margins were strong, much of it has already been included in market prices. For home system providers, cost-cutting measures were the main driver of their performance in the fourth quarter of fiscal 2021. We believe a modest recovery in domestic pharmaceutical revenue should continue, while significant improvement is needed in operational metrics for a new rating.

Axis Securities

anticipates risks in this regard and continues with an equally weighted position in the sector.

Real Estate

The real estate sector is experiencing historic records in metropolitan cities. Demand has recovered due to low property prices and very attractive interest rates. The sector is expected to see more traction in 2021 and, as a result, Axis Securities has improved its position in

real estate

by the same weight.

Specialty Chemicals

The chemical specialty sector has been one of the country's emerging sectors. India has gained global market share in this space by leveraging its capabilities and supply chain realignment from China to India. The brokerage believes that Indian companies would gain more momentum as companies reduce their reliance on China after the COVID-19 pandemic and shift their supply chains to India. Lower commodity prices would support margins and further reduce working capital requirements. However, input costs are a shock to most businesses and the benefits may be limited. Overall, the specialty chemicals industry should continue to perform well in the medium term, Axis Securities said.

Telecommunications

Telecommunications has become the most critical sector in these difficult times to keep businesses running. The sector was experiencing an improving pricing environment even before the COVID-19 outbreak. The industry is highly consolidated with two strong players and one weak player in the wireless space. Axis Securities recommended an overweight position in the sector.

[business2businesscom]

Investor wealth of Rs 5 lakh crore has been wiped out

Domestic shares lost nearly Rs 5 lakh crore in the first 15 minutes of trading on Friday, buoyed by strong selling across the board. The market weakness was so severe that for every rise in price, six stocks fell. The market capitalization of BSE rose from Rs 4.8 lakh crore to Rs 254.83 lakh crore from Rs 259.64 lakh crore a day ago. About 2,320 shares were down, 447 were up and 76 were flat. Despite some recovery, the small and mid-cap indices were still down 2%. Benchmarks Sensex and Nifty50 fell just over 1%, significantly outperforming their Asian peers, which fell by up to 4%.

Here are some factors weighing on the market:      

Central Bank Actions On Thursday, the Bank of England warned the UK economy could contract in 2023 and forecast inflation to top 10%, raising interest rates by a quarter basis point. A day earlier, the US Federal Reserve had raised interest rates by 50 basis points, the highest in 22 years, despite US GDP falling 1.4% in the March quarter. Also in India, the RBI raised interest rates by 40 basis points, along with an increase in the cash reserve ratio.

Rise in Oil Prices Oil prices rose for a third straight session on Friday, assuaging worries about global economic growth as concerns over tight supplies supported prices ahead of a looming European Union embargo on Russian oil. OPEC+ on Thursday agreed to only a modest monthly increase in oil production, arguing the producer group cannot be blamed for Russian supply disruptions and saying China's coronavirus lockdowns threaten demand prospects.

Bad US economic data Data releases from the United States suggest that the number of initial jobless claims hit 200,000 last week in a still tight labour market.

FPI Outflows May marks the eighth consecutive month that foreign investors have been net sellers of domestic stocks. This is true even as monthly outflows declined from a recent peak of Rs 41,123 crore in March. A rise in interest rates in the United States pushes the dollar higher. The US dollar and risky assets like emerging market stocks have an inverse relationship. Data showed that the institutional class has been a net seller at Rs 4,857 crore so far in May.

[business2businesscom]

Infrastructure, rural development, and healthcare stocks are among analysts' top picks as the Indian government prepares to increase spending in a budget earmarked for seed investment to boost growth.