Morning Scan: All the big stories to get you started for the day


TCS eyes $ 300 billion B2B ecommerce, D2C markets for growth

Tata Consultancy Services is eyeing new opportunities in the $ 300 billion business-to-business ecommerce and the direct-to-consumer side of retail for new business growth, The Economic Times reported.

Why it’s important: This will help global clients tap customer insights.

TCS has already bagged some such deals across Europe and the US.

CEO Rajesh Gopinathan said: “We are enabling a rapid shift to online ecommerce as a preferred channel from brick-mortar stores, or aggregator retailers, helping our clients establish direct customer connect, gain better margins and scale of business and volumes.”

Nazara is looking for acquisitions in the US, Europe

Nazara Technologies has accelerated its plans for acquisitions in the US and Europe, The Economic Times reported.

Why it’s important: The gaming and sports media company has recently raised about Rs 315 crore to speed up its acquisition plans.

Nazara wants to fill some gaps in its casual, social multiplayer, e-sports and real money gaming segments.

The company is expanding its M&A team outside India.

Nazara CEO Manish Agarwal said: “All our M&A has broadly happened in India because we are a product of the Indian ecosystem. We want to really kind of expand our M&A into Europe and US…”

Centre asks power plants to blend 10% imported coal

The Centre has asked thermal power plants to restart the practice of blending 10% imported coal on concerns over depleting stock, The Economic Times reported.

Why it’s important: All thermal power plants can accommodate nearly 20% of imported coal.

The practice was stopped due to the increased availability of domestic coal and less generation capacity utilisation.

The coal and power ministries are also exploring ways to further enhance coal supplies.

The Prime Minister’s Office (PMO) held a meeting to solve the crisis.

Meanwhile, coal supplies to power plants have exceeded daily consumption and the situation is expected to improve soon.

However, power outages were reported in Punjab, Uttar Pradesh and Rajasthan.

Economy on steady and sustainable recovery track: Finance Secretary

Finance Secretary TV Somanathan in an interview with The Economic Times said that the economy is on course for a “fairly steady and sustainable recovery”

What the Finance Secretary says:

“Without the third wave, without a big recurrence of Covid, I think we are now on course for recovery.”

No significant impact from the ongoing power crisis on output as the coal shortage is a temporary problem.

The government will ensure that lack of funds does not act as a constraint on capital expenditure and budgeted spending will take place.

The sale of Air India will lower the government’s interest liability with the new buyer taking over part of the debt.

A rise in international commodity prices and supply shortages outside the country could hamper the recovery.

Lenders ramp up hiring as the business sees faster recovery

Banks and NBFCs have ramped up hiring plans due to the increased activity in the economy, The Economic Times reported.

Why it’s important: The lenders are expecting business growth as the economy opens up fully after the second wave lockdowns.

Some banks and NBFCs see an increase of as high as 30-35% in recruitments from a year earlier.

Technology functions are seeing higher recruitments.

Now, the focus is on expansion in tier-3, 4 cities and rural markets.

HDFC Bank has plans to hire more than 2,500 people in the next six months.

The Shriram Group is hiring 5,000.

ICICI Home Finance is planning to onboard 600 employees by December.

Promoters likely to invest $ 400 mn in Vodafone Idea

Vodafone Group Plc and Aditya Birla Group are likely to invest $ 200 mn each in fresh equity in Vodafone Idea Ltd to prop up the struggling telecom operator, Mint reported.

Why it’s important: Earlier, promoters ruled out any fresh investments due to the adverse regulatory and business environments.

The move comes after the government announced a rescue package for the sector.

Kumar Mangalam Birla is expected to invest the amount via unlisted promoter entities.

‘MF space has room for 100 more if there are differentiated players’

Aashish Somaiyaa, CEO of White Oak Capital, in an interview with Business Standard, said that White Oak is planning to launch diversified equity funds.

What the CEO says:

The MF industry has grown manifold over the past decade, but the number of players has shrunk.

There is space for 100 more MF players.

Plans to integrate YES AMC with White Oak group and build by augmenting it further and providing more resources and significantly enhancing the product bouquet.

To build a full-service AMC with over 100 locations across the country in the next 12-24 months and an omnichannel presence serving distributors and investors.

White Oak Group manages more than Rs 40,000 crore of assets invested in India by global investors.

The focus is going to be on actively managed equity funds.

Four Indian lenders among top 20 banks in Asia-Pacific in Q3

Four Indian lenders got a place among the 20 largest banks in the Asia-Pacific region in terms of market capitalisation in the third quarter of 2021, Business Standard reported citing data compiled by S&P Global Market Intelligence.

Who they are:

HDFC Bank is ranked seventh with a market cap of $ 119 billion, representing a 6.7% QoQ rise.

ICICI Bank is in 12th position, with its market cap rise 11.2% to $ 65.5 billion QoQ. It moved up three spots.

State Bank of India climbed two spots to 17th on the list with its market cap p 8.1% to $ 54.5 billion.

Kotak Mahindra Bank is next with a 17.5% market cap increase, the highest on the list.

Why it’s important: Most of the lenders in China saw their market capitalisation fall further in Q3, 2021, except the Postal Savings Bank of China.

Most non-Chinese banks in the list saw improvements in their market cap during the quarter.