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ETMarkets Morning Podcast (ETMarkets.com)
Look, what may spoil debt fund party; Rajiv Bajaj bats against GST cut & more
06:07 Min | September 11, 2019, 8:42 AM IST
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TranscriptHello There! Good Morning. This is Saloni Goel from ETMarkets.com, and here is all the news you need to start your day
> New valuation method threatens to end debt fund party
> China embraces capital market reforms
> Bajaj Auto chief bats against GST cut
> Rana Kapoor may sell his stake in YES Bank
And We have more. Stay with us.
Let’s first have a quick glance at how the markets are looking like...
Asian stock markets held firm and bond yields rose as hopes of diminishing US-China tensions and reduced risk of no-deal Brexit prompted investors to take profit in risk-off trade
>> SGX Nifty traded 47 points higher at 7 am (IST), signalling buoyancy ahead on Dalal Street. MSCI index for Asia-Pacific shares outside Japan rose 0.10% while Japan's Nikkei gained 0.32%.
>> US stocks rose overnight. Dow went up for fifth straight day, eking out a 74 point, or 0.3% gain; the S&P 500 closed flat while the Nasdaq shed 0.3%
IN THE CURRENCY MART
The rupee pared initial gains to settle almost flat at 71.71 against the US dollar on Monday as rising crude oil prices kept investors edgy. India's currency market was closed on Tuesday for an official holiday
LET ME NOW quickly GO OVER the top news we are tracking this morning.
New valuation method may end party in debt fund market
Investors in mutual fund debt plans, especially liquid schemes, may have to brace for more uncertainty with regard to returns as the Sebi may make it mandatory for these debt products to assign the latest market price to all their bond investments from April 1. Currently, only debt papers with a maturity of over 30 days need to be valued on a mark-to-market basis. Most fund houses value the rest of the papers based on amortisation.
Beijing ushers in capital market reforms to increase yuan use
China has removed one more hurdle for foreign investment into its capital markets almost 20 years after it first allowed access. Global funds no longer need approvals to purchase quotas to buy Chinese stocks and bonds, the State Administration of Foreign Exchange said in a statement on Tuesday. It removed the $300 billion overall cap on overseas purchases of the assets, about two-thirds of which remain unused. It’s the latest push by Chinese authorities to increase use of the yuan in international transactions, and comes as they seek out more foreign capital to balance payments.
British PM to make fresh attempt for Brexit deal
Beleaguered British Prime Minister Boris Johnson vowed to continue with his attempts to strike a new Brexit deal with Brussels, after losing yet another parliamentary vote on Tuesday to hold an early election. Johnson slammed the Opposition for voting against his call for a snap poll next month, in the final minutes of a late-night debate ahead of a controversial five-week suspension of Parliament.
Rana Kapoor may sell Yes Bank stake to Paytm founder
Speculation is rife that Yes Bank founder and former chief executive Rana Kapoor may sell his 9.64% stake in the bank as he seeks to cut personal debt and facilitate a fresh round of fund raising by the bank to improve its capital position. Reports suggested that Kapoor is in talks with Paytm founder Vijay Shekhar Sharma which may be at a personal level, and which Kapoor neither confirmed nor denied.
Auto industry leader Rajiv Bajaj of Bajaj Auto says the current crisis in India's Motown is largely due to “overproduction and stocking” by companies and to a small extent due to the economic slowdown. He says there’s no need for a GST cut. The statement came days before the GST Council is scheduled to convene on September 20 when, among other things, it is expected to take a call on the industry’s demand for a cut in goods and service tax on automobiles. The industry is now rapidly correcting the stock levels for Bharat Stage-VI emission norms and the problem will be sorted out by November, Bajaj said.
The Association of Southeast Asian Nations or Asean has agreed to India’s long-pending demand to review the free trade agreement between the two sides. The exercise could help address India’s concerns that it has not benefitted from the agreement and its goods trade deficit with the 10-member grouping has widened. The trade gap was $22 billion in FY19, up from $13 billion in FY18.
NOW, LET’S HAVE A QUICK LOOK AT SOME OF THE TOP CORPORATE NEWS THIS MORNING
>> The country’s largest mortgage lender HDFC is considering a plan to link interest rates to external benchmarks, although RBI hasn’t mandated this for housing finance companies.
>> Aditya Birla Capital on Tuesday said its board has given approval to raise Rs 2,100-crore equity capital, to fund the firm's business growth.
>> Drug major Glenmark Pharma on Tuesday said it has received final approval from the US health regulator for Clobetasol Propionate Foam, indicated for treatment of plaque psoriasis.
>> NTPC on Tuesday said the coal ministry has transferred Badam coal block, located in Jharkhand, to the company.
>> CVC Cap and Carlyle could make the shortlist for the 30% Shriram Capital stake that Piramal Enterprises and TPG are selling,
>> Nestlé India will appeal against an order issued in a 2015 case imposing a Rs 20 lakh fine on the company for the presence of monosodium glutamate in its instant noodle product Maggi.
LASTLY a look at the oil price,
Crude oil prices rose after an industry report showed that crude stockpiles in the US fell last week by more than twice the amount that analysts had forecast. Brent futures rose 43 cents to $62.81 a barrel while WTI futures gained 47 cents to $57.87
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