RBI-FinMin Consensus, Fall in crude oil prices, Rupee staging comeback- Weekly Digest #70

Monday- 19th November 2018

  • The RBI and the Finance Ministry have reached a common ground where the RBI has agreed to restructure small-scale loans and set up a committee to discuss the issue of transfer of surplus reserves to the government. It also decided to consider a relaxation of lending norms for banks under the Prompt Corrective Action regime.
  • Tata Sons have adviced the management against rushing into a deal with Jet Airways due to concerns regarding a rise in liabilities. Proper due diligence and investigation have been suggested. Earlier, Tata Sons board met to discuss a possible investment in Jet Airways and take over the airline.
  • A Dubai court has rejected the final appeal against extradition by Christian Michel, who has been suspected to have a key role in the $556-million Agusta-Westland VVIP chopper case. He could be extracted within a matter of days, after the final orders by the UAE government.
  • The anti-profiteering authority has dismissed charges against Fabindia Overseas of not passing on price reduction benefits to consumers post implementation of GST.
  • The Nifty closed at 10,763 points while the Sensex closed at 35,775 points after the positive impact of the RBI Board Meeting on the sentiments of the investors.


Tuesday-  20th November 2018

  • An official probe has found that the RIL has violated the contractual terms and state policy on coal-bed methane (CBM) by selling its entire output to itself.
  • Japanese investment giant SoftBank has roped in Norwest Venture Partners’ Sumer Juneja as its country head for India. This comes after an over-three-year search for an executive to lead investments in India.
  • After the RBI’s board meeting signalled a truce between the Finance Ministry and the RBI, stocks of state-run banks failed to cheer the market as any relief from operational curbs imposed by the regulator would only be selective and not apply to all the affected lenders.
  • Stock markets across the world plunged as a sharp downward trend in the technology sector hit valuations hard and the Dow index gave up all its gains for the year.


Wednesday-  21st November 2018

  • WhatsApp has appointed Abhijit Bose as head of its India unit to build its first full-country-team outside the US. Bose has served as co-founder and CEO of electronic payments company Ezetap. He will join WhatsApp in early 2019.
  • Domestic fuel prices to fall further with crude oil slipping below $63 a barrel, down from a four-year high of $86 in October 2017. This has been attributed to increased worries about global economic growth prospects and building up of a supply surplus.
  • Indian market ended lower for the second consecutive day, in tandem with the weakness in global markets. The Sensex slid 275 points to close at 35,200 points and the Nifty declined 56 points to close at 10,600 points.


Thursday- 22nd November 2018

  • Samast Technologies, the owner and operator of discovery and rewards platform MagicPin, has raised about $20 million from investors led by Lightspeed Venture Partners US, valuing the venture at an estimated $100 million.
  • The Dalmia Group has won an arbitration award of ₹160 crore over a land dispute with the Delhi-based Ansal API Group. The Dalmias have approached the Delhi High Court for enforcement of the arbitration award.
  • State Bank of India is set to raise ₹3,000-5,000 crore by selling perpetual bonds. India’s biggest bank will be selling such bonds after a year and the securities are likely to offer 9.3-9.7%
  • The rupee rallied 77 paise to end at 70.69 against the US dollar, owing to softening crude oil prices and foreign capital inflows. The rupee opened on a firm note at 71.12 and hit a high of 70.68 following dollar selling by exporters.


Friday- 23rd November 2018

  • Oil prices slumped more than 6% as fears that supply would overpower demand intensified, even as major producers considered cutting output. Up to a 12% further decline is expected in the coming week.
  • Microfinance company Satin Creditcare Network has said that its borrowing cost has risen by 75 bps following the liquidity crisis that affected the NBFCs over the last couple of months.
  • The government has formed a group of secretaries to ensure that the privatisation of six airports doesn’t fail. This comes after past failures to implement privatisation of Air India. The Cabinet had earlier approved privatisation of six airports – Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru

Source: The Economic Times

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