A round-up of the biggest articles from newspapers.
Flipkart gross merchandise value up at $ 23 billion
The Flipkart Group has generated gross merchandise value of $ 23 billion so far, reported The Economic Times.
Why it’s important: It was a big jump from $ 15 billion in 2020 for the Walmart-owned e-comm major.
It got around $ 20 billion from Flipkart and $ 3 billion from Myntra.
Flipkart was expecting around 30 percent growth, but the current estimates are higher.
If a leader is more visible, then it’s more difficult to get direct successor: Soota
Happiest Minds Executive Chairman Ashok Soota in an interview with The Economic Times said that if a leader is more visible, then it’s more difficult to get his or her direct successor.
What he says: My theory says every third or fourth generation, you will get a bad leader.
80 percent is the number of the companies which were listed after 1960 in the US that have disappeared.
The executive board will see a change every five years.
There will also be outside talent because it is good to keep new thoughts and ideas.
The best thing is to make a successful company, stabilise them and show that they can continue on a good steady path for 10 years.
Relief likely for customers of banks under RBI’s moratorium
The RBI is getting ready to pay around Rs 10,000 crore of depositors’ funds in banks under its moratorium, reported The Economic Times.
Why it’s important: The money is due for eligible customers in two months under the recently-notified Deposit Insurance and Credit Guarantee Corporation (Amendment) Act.
Some customers of the Punjab and Maharashtra Cooperative Bank and Guru Raghavendra Sahakara Bank may get a breather.
According to the rule, a depositor is insured up to Rs 5 lakh, including principal and interest.
Singapore Airlines look forward to Air India-Vistara deal for synergies
The Singapore Airlines is looking forward to network integration if Tatas win Air India bid, reported The Economic Times.
Why it’s important: The joint venture of SIA and Tata, Vistara, plans to work as two separate carriers even after a successful AI bid.
But Vistara is ready to work with each other in terms of integrating their flight network.
The move is significant as earlier, Singapore Airlines was not keen on Tatas going for an AI bid and rejected a joint plan.
The integration is good for passengers as well as they can move easily between each other’s flight networks.
Debt servicing gets tougher for small companies
Some of the companies, especially the smaller and midcap firms are struggling to repay debt, reported Mint.
Why it’s important: This is significant as now interest rates are at record low.
The problem continues even after a modest revival in demand is seen across sectors.
It shows that the recovery is not even and the demand is selective.
It shows that the companies are yet to recover from the pandemic.
Banks likely to classify Rs 35,000 crore SREI Group loans as NPA
Banks are likely to classify bad loans of around Rs 35,000 crore given to the SREI Group firms as NPA, reported Mint.
Why it’s important: The move is after an appeals tribunal cleared the hurdles for this.
Indian Bank has Rs 2,000 crore dues and Canara Bank has Rs 1,200 crore.
ICICI Bank and Axis Bank have Rs 800 crore each.
Plans to double its R&D investment in 3 years: Lenovo
Amar Babu, President, Lenovo Asia-Pacific, in an interview with Mint talked about the company’s three broad business groups.
What he says: The first is the intelligent devices group of PCs and mobile business group.
Then the data centre group got rechristened as the infrastructure solutions group.
Alongside, Lenovo also restructured the sales organisations into two teams.
Lenovo looks at three services categories. The first is support services. Then there are managed services and ‘as a service’ offerings based on our capabilities.
Third is vertical solutions built around very specific targeted verticals like education, retail, healthcare, manufacturing, and very specific areas within that.
The focus is on R&D and will further invest in innovation and double its R&D investments over the next three years.
Finance Ministry seeks clarity on T+1 from SEBI
The finance ministry has sought clarity from the SEBI regarding its T+1 settlement cycle, reported Business Standard.
Why it’s important: The government wants to know if the stock markets are prepared for the new plan.
They also sought to understand whether the move will lead to any sell-off in the market from foreign investors.
The ministry also discussed the nuances of 100 percent peak margin norms that came into effect this month.
Clix Capital Services, Suryoday in merger talks
Clix Capital Services, a digital-lending shadow bank and Suryoday Small Finance Bank are talking for a possible merger, reported the Business Standard.
Why it’s important: The advanced talks are first between a shadow bank and a listed small finance bank.
The reports says the due diligence is already on for the proposed merger.
It is a pointer towards to the fact that the second rung of NBFCs are finding it difficult to do business with limited funding lines.
Investors should focus on individual stock picks: Bernstein
Venugopal Garre, Managing Director, Bernstein, in an interview with Business Standard says that investors should focus on individual stock picks.
What he says: The performance of Indian equities has been very strong in a global context.
Bernstein remained constructive on India through most of 2020 and a large part of this year but moved to a neutral view on the index two months back.
On primary market opportunities, see immense interest, especially in the new economy domains.
The markets are not prepared for a phase of slowdown.
The current expectation is of the continuation in earnings momentum led by a megacycle, which may last for several years.
This thesis will get tested in a couple of quarters.Bernstein recommends focusing on individual stock picks where there is room for secular growth characteristics or genuine levers for a strong cycle.
