| News Announcement |
Impact Analysis |
| Reliance sees profit growth despite weaker Gross Refining Margins |
- The RIL growth was largely driven by higher profits although revenues were lower due to weak crude prices
- The company managed to post record profits of Rs.11,700 crore for the December quarter
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| China growth for year 2019 comes in sharply lower at 6.1% |
- This represents a 30-year low for Chinese growth with the pressure on growth coming from the ongoing trade war
- However, it will end the year growing faster than India and has added $1.3 trillion to world GDP for the year
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| Reliance Jio business reported 63% growth in profits to Rs.1350 crore |
- The telecom business of Jio managed to improve its ARPUs to Rs.128.4 from just about Rs.120 last quarter
- This bounce in ARPUs was driven by price hikes as ARPUs improved after 7 successive quarters of fall
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| TCS reported lowest growth in profits and revenues in IT industry |
- The number of TCS were largely hit by the weakness in the BFSI segment where IT spending has been tepid
- However, the good news for TCS was that it crossed 25.2% operating profit margins for the December quarter
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| Piramal divests its DRG health analytics business for $950 million |
- This near $1 billion will be reinvested in the financial services business of Piramal Enterprises
- PEL’s bet is that financial services consolidation could be the big window of opportunity for the PEL group
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| Vodafone and Bharti need to pay AGR dues as per Supreme Court order |
- While Bharti has raised over $3 billion to partially defray the payments, Vodafone is yet to raise the funds
- Vodafone has already warned that they may have no choice but to file for bankruptcy with $8 billion of AGR dues
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| The US and China signed the Phase 1 of the trade deal on 15th January |
- The Phase 1 of the deal stipulates that China shall increase its purchase of US agri products by nearly 80% in 2 years
- The US will cut tariffs on $150 billion of imports by 50% but has ruled out total roll back of the tariffs post 2018
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| HCL Tech reports 16.3% rise in net income to Rs.3037 crore for Q3
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- This growth in profit was also supported by a 15.5% growth in total sales revenues during the December quarter
- HCL Tech has already emerged as the third largest IT player overtaking Wipro in revenues too last quarter
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| Tax department raises GST revenue targets for January and February
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- However, the department has also marginally reduced the GST collection target for the month of March 2020
- The department will focus largely on plugging leakages in revenues and tightening compliance and monitoring
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| SEBI modifies guidelines for REITS and INVITs in India
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- Under the new regulations, REITs and INVITs will be allowed to also issue rights shares to existing shareholders
- REITs and INVITs are pass through instruments which have been gaining popularity in the last one year
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| Forex Reserves touch a record level of $462 billion during the week
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- Forex reserves have largely been driven by the flow of NRI remittances, apart from FDI and FII flows
- With falling imports, this also places India comfortably with respect to import months coverage above a year
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| RBI asks government to give relief to telecom companies on AGR
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- RBI has expressed grave concerns over the huge bank loan outstanding of these telecom companies at Rs.3 trillion
- Government has already looked at a formula of moratorium and waiver of interest and penalty
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| Moody’s has placed Yes Bank under review for possible downgrades
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- The concerns are over the delay in capital raising with its current core capital at just above the statutory 8%
- In fact, Moody’s has pointed out that even the overall credit risk to its senior creditors is not too clear at this point of time
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| Jeff Bezos commits to investing $1 billion to support Indian retail
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- This move was necessitated after traders across India planned massive all-India protests during the visit of Bezos
- Bezos will commit the funds to create an ecosystem wherein the traders can also benefit from the online shift
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| Expression of Interest for Air India may be issued during this week
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- The Air India divestment has been holding on for long for a number of diverse reasons
- The government could also look at a special relaxation in FDI limits to entice foreign airlines to invest in Air India
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| Franklin Templeton marks down 6 schemes for Vodafone exposure
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- The fund has not only put upper limits on daily redemption but has also written down the exposure to Vodafone debt
- Mutual funds have an exposure to the tune of Rs.3600 crore to the bonds of Vodafone Idea
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| Google becomes the fourth US tech company to scale $1 trillion
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- Before Google, we have seen Apple, Amazon and Microsoft scale past the $1 trillion market cap mark
- Of course, the world’s most valuable companies remains Saudi Aramco with a market cap of close to $2 trillion
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| SEBI exonerates Ravi Narain and 8 others in the Co-location case
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- This relief allows the exchange to go ahead with its IPO plans, which had been held up due to the co-location case
- However, Chitra Ramakrishnan, has not been exonerated as she was the CEO at the time the scam came in the open
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| Global IT spending to touch a high of $3.9 trillion in year 2020
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- This is likely to grow further to around $4.1 trillion per year in the next year 2021, largely driven by digital spending
- The spurt in digital spending is likely to be positive for the large IT companies in India
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| NCLAT to decide the distribution formula in the case of IL&FS
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- This model was mooted by the chairman of the board, Uday Kotak, as a model unique to IL&FS
- This is also important from the perspective of protecting the interests of the operational creditors
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| Exports fall for the fifth month in succession for December 2019
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- Exports were down by 1.83% while the imports were down by a much higher 8.8% keeping the trade deficit in check
- This has naturally kept the import cover in terms of foreign exchange reserves at a comfortable level
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