A round-up of the biggest articles from newspapers.
Govt to keep control of Petronet, IGL after BPCL open offer
The government may insist PSU control on gas companies IGL and Petronet LNG after the open offer reports The Economic Times.
Why it’s important: The plan is to keep control of strategic gas companies even after its sale.
These are also very good assets.
IGL, Petronet may be pushed to make open offers with the strategic buyer of BPCL.
BPCL is a co-promoter of IGL and Petronet.
BPCL is on the block, so the buyer of the majority stake of government in BPCL will naturally become a promoter of IGL and Petronet.
Cement prices may go up input costs zoom
The cement manufacturers are planning to increase the prices soon after a gap of few months, reports The Economic Times.
Why it’s important: The demand is going to improve as the construction sector gets into full swing as the monsoon recedes.
Double-digit volume growth for major companies is projected.
PLI to help regain lost ground in the sector: Textiles Secretary
Textiles Secretary Upendra Prasad Singh in an interview with The Economic Times said that the ?10,683-crore PLI scheme for the textiles is going to help regain lost ground for the sector.
What the Textiles Secretary says:
PLI would take care of the disability the companies face from foreign competitors.
The scheme is for select man-made fibers and technical textiles only.
The scheme has two parts.
The idea of the PLI is to create global champions.
The government is expecting that PLI and mega textile parks should solve the issue of economies of scale.
More uneven rains this month a threat to Kharif crops
The likely above normal monsoon rainfall this month and its uneven pattern may damage the Kharif crop, reports The Economic Times.
Why it’s important: The normal rainfall is good during this period but the problem is the excess and uneven rains.
The rainfall continues in this pattern them the crops will get damaged so the prices of oilseed crops go up due to the production decline.
Fabindia moves ahead with $ 1 billion share sale
Fabindia Overseas Pvt. Ltd is firming up its plans to raise up to $ 1 billion from the market, reports Mint.
What the plans are: The company has already hired five investment banks to speed up the plans.
Fabindia is the latest company to make use of the buoyant investor sentiment in the stock markets.
It is planning to get ready necessary documents in two months’ time.
It has plans to sell around a 30% stake.
Vistara postpones US plans as Boeing B787 nod awaited
The Vistara airline’s plans to fly to the US skies is getting delayed as US approval for Boeing 787 Dreamliner is awaited, reports Mint.
Why it’s important: The nod for the 787 from the US Federal Aviation Administration is still pending.
FAA had cited some manufacturing quality issue with the aircraft.
Vistara ordered for six Dreamliner as of now.
Delivery may be delayed for at least two more months as regulators did not inspect the aircraft.
T+1 cycle irks foreign portfolio investors
The move to introduce shorter settlement cycle, T+1, has irked the foreign portfolio investors in a major way, reports Business Standard.
Why it’s important: They are approaching Sebi chief as well as MSCI, FTSE Russell to explain their grievances.
The foreign portfolio investors pointed out that the move would see a reversal of gains in the markets.
They say the move is making Indian markets less attractive for global investors.
FPIs say this will label domestic markets as a pre-funding market where money needs to be in place before shares are received.
‘Fundamentals may rank India higher on the league table for foreign flows’
Yogesh Patil, head of equity at LIC Mutual Fund Asset Management, in an interview with Business Standard, said that markets are now looking towards financial year FY23 earnings.
What he says: Q2 earnings may not have a significant impact on the broader equity market.
There may be some stock-specific reactions.
For India, the fundamentals may rank the country higher on the league table for foreign flows.
Domestic flows into equities will also continue.
Positive on technology, private sector financials, gas, infrastructure, and export-oriented plays.
The sharp increase in commodity prices may hurt consumption in the short term.
Auto stocks have been underperformers in the last year.
Industry seeks attention on ‘GST harassments’
Indian industry is complaining that they are unduly harassed by the frequent summons by the GST officers, reports Business Standard.
Why it’s important: Industry bodies said harassment by field officers, blocking of the input tax credit, cancellation of GST registration, threats of arrest, and steep penalties, are hitting them hard.
The officers are under pressure to achieve the target of Rs 1-trillion collection every month.