Fitch cuts India's growth rate

Fitch Ratings has cut India’s GDP growth rate projection for the next financial year to 6.8 per cent, from its previous estimate of 7 per cent, on account of weaker-than-expected growth momentum. 

The rating agency says that it has also changed outlook on the Reserve Bank of India’s monetary policy review, projecting another interest rate cut of 25 basis points in 2019 owing to inflation staying below the target and easier global monetary conditions.

Unwise move : Lenders to take control of Jet Airways

Lenders, led by SBI  are in the process of securing “substantial stake” in the ailing Jet Airways to try and revive it to a manageable state before selling it to new promoters.

 Only after securing substantial stake in the airline, the lenders are planning to sell Jet Airways, and the existing promoters need to exit before new buyers can be roped in. After defaulting on interest payments and delaying salaries to pilots, with Jet Airways now flying just about a third of its fleet following the recent grounding of many aircraft, the full service carrier is currently in a near standstill situation.

The new move by lenders, FirstChoiceIPO feels, are going to hurt them and loss will increase. 

Apple to unveil new services

World’s largest technology company, Apple, is expected to unveil streaming video and news subscriptions, key parts of Apple’s push to transform itself into a leading digital services provider. The company may even discuss a monthly video games subscription. 

TransUnion Cibil wants leners to submit data on monthly basis

 TransUnion Cibil is asking lenders to submit monthly credit data of borrowers, with in a week of every month end.

Lenders report credit data of their borrowers to the bureau periodically.

Currently, the data is submitted and updated two weeks after the month end.

Cibil is working to make sure that the data gets sent to them faster and  want to make sure that data comes to us within a week of every month-end, instead of a fortnight at present.

IPO ANALYSIS : MSTC LIMITED -AVOID

Issue Details :

Issue opens / closes on	13-03 / 15-03- 2019
Issue size	1.76 Cr equity shares (25% of the Total paid up capital)
Face value	Rs 10
Price Band	Rs 121-128
Business	E commerce, Trading, Recycling
Promoters	Govt of India
Listing	Bse, Nse
BRLM	Equirus Capital
Registrar	Alankit Assignments

Remarks :

1. Highly competitive business.

2. Depends on govt agencies for business.

3. Currently facing a dispute with Standard Chartered Bank, wherein all freehold buildings of the Company are under attachment in terms of the order of DRT.

4. Non compliance of companies act provisions in the past.

5. Consistently loss making enterprise.

6. Irrationally priced.

Avoid the IPO.

Net flows to MF industry slows down

Net flows into equities, including those linked to savings scheme funds, fell to just ₹5,122 crore in February after hitting a 24-month low of ₹6,158 crore in January, indicating a deepening slowdown in the mutual fund industry. Inflows into equity linked savings scheme funds fell around 26% to ₹1,174 crore in February from ₹1,585 crore a year ago.

PNB Swift scam : RBI penalizes most banks except PNB

The Reserve Bank on Friday said it has imposed penalties worth Rs 71 crore on 36 public, private and foreign banks for non-compliance with various directions on time-bound implementation and strengthening of SWIFT operations. Interestingly, the main culprit - PNB has not been fined.

A penalty of Rs 4 crore each has been imposed on Bank of Baroda, Catholic Syrian Bank, Citibank NA, Indian Bank and Karnataka Bank. The penalty on BNP Paribas, City Union Bank, Indian Overseas Bank, UCO Bank, Union Bank of India, and United Bank of India, is Rs 3 crore each.

The amount is Rs 2 crore each in case of Allahabad Bank, Bank of Maharashtra, Canara Bank, DCB Bank, Dena Bank, Jammu & Kashmir Bank, Oriental Bank of Commerce, and Syndicate Bank. A penalty of Rs 1 crore each has been slapped on Bank of America, Barclays Bank Plc, Central Bank of India, Corporation Bank, DBS Bank, Deutsche Bank AG, HSBC, ICICI Bank and IDBI Bank.

Also Rs 1 crore each penalty has been imposed on IndusInd Bank, JP Morgan Chase Bank, Karur Vysya Bank, Punjab & Sind Bank, Standard Chartered Bank, State Bank of India, Tamilnad Mercantile Bank and YES Bank.

RIL to buy logistics services firm

Reliance Industries has entered into agreements to acquire logistics services platform Grab A Grub in a bid to augment the group’s digital commerce initiatives and strengthen its logistics services.

Its wholly-owned subsidiary Reliance Industrial Investments and Holdings has entered into an agreement for the acquisition of equity shares of Grab A Grub Services Private Ltd for a cash consideration not exceeding Rs 106 crore.

IPO News : MSTC to offer 17.60 lac shares

 MSTC,  formerly known as Metal Scrap Trading Corp has got approval from the Securities and Exchange Board of India  for its proposed IPO.

The IPO would be by way of offer for sale by the Union government of 17,600,000 shares, equivalent to 25 per cent of the post-offer, paid-up equity share capital.

Equirus Capital Pvt Ltd is the sole book running lead manager to the offer.

MSTC is a state owned E commerce cum trading enterprise, based at Kolkatta.

Nifty rejig : Britannia to replace HPCL

Britannia Industries will replace state-run oil retailer Hindustan Petroleum Corporation Ltd. to enter the Nifty 50 Index from March 29. 

The replacement will also be applicable to Nifty 50 Equal Weight Index. The indices are reconstituted twice every year based on data for six months ending January and July.