A round-up of the biggest articles from newspapers.
Indians are spending more on mobiles after coming out of Covid
Consumers in the country are buying expensive smartphones after coming out of Covid worries, The Economic Times reported.
Why it’s important: The trend is pushing up the average selling price for smartphones to the highest ever $ 226 in July-August.
It is an increase of 19% from the same period last year.
The average selling price is now set to cross the $ 240-$ 266 mark at the end of the ongoing festive season.
One of the reasons behind the buying pattern may be because the people have accumulated savings during the pandemic.
Govt to set up a panel for National Employment Policy
The government is working on forming a committee to bring out the country’s first National Employment Policy, The Economic Times reported.
Why it’s important: The main aim of the panel is to push up employment generation in the country.
Work has already started to identify the members of the committee.
The policy will be based on the data that emerges from various job surveys.
The policy may also look at the likely employment created under the production-linked incentive scheme in different sectors.
The renewed focus on the policy came after the pandemic took away millions of jobs in the country.
JSW Steel plans price hike, surcharge as input costs rise
JSW Steel is planning to raise selling prices of steel products soon, The Economic Times reported.
Why it’s important: The main reasons for the price hike are input cost pressures, volatile coal prices and a jump in freight and refractory rates.
The steel major is also planning to levy a surcharge linked to coal prices to survive the volatility.
Seshagiri Rao, JSW Steel’s joint managing director, said: “The cost pressures are so high, the demand is reasonably okay; considering this, there is definitely a scope for readjustment of prices to the extent of pressures in the cost.”
Biocon sets eyes on $ 30 billion US insulin market
Biocon’s interchangeable biosimilar product Semglee gets approvals and aspart in the US for a launch, The Economic Times reported.
Why it’s important: This will open up a huge insulin market for the biopharmaceutical major in the US, which is expected to grow to $ 29.9 billion by 2025.
The company is hoping the final approval will be in place by the first quarter of 2022.
Biocon is the first company to receive approvals for two interchangeable insulin drugs in the US.
Kiran Mazumdar-Shaw, executive chairperson at Biocon, said:
“We will be the only company in the US with two interchangeable insulins and therefore it sets us up for a big foray in insulins. I believe that it may end up being a slightly lower-margin business than antibodies, but certainly, it is a very attractive business.”
Tata Motors to invest $ 2 billion to expand EV
Tata Motors is planning to invest around Rs 15,000 crore to ramp up its electric vehicles segment, The Times of India reported.
Why it’s important: It is considering the $ 2 billion investment over the next four years to launch 10 new electric vehicles.
Tata Motors expects the passenger vehicles arm to generate free cash flow by 2022-23.
The move comes within days of private equity firm TPG Rise Climate announcing plans to pump in $ 1 billion into Tata Motors’s passenger electric vehicles division at a valuation of $ 9.1 billion.
The company expects 20% sales coming from Evs over four to five years.
Shailesh Chandra, President of Tata Motors’s passenger vehicles business unit, said:
“With just two green products right now (Nexon and Tigor EVs), we are getting bookings of 3,000-3,500 units per month. However, we are able to supply only around 1,000 units… We are now lining up new investments to the tune of $ 2 billion just for electrics and this would be used to add 10 new green vehicles, boost production capacity and charging infrastructure, and create IP (intellectual property).”
Tata Sons plans to invest $ 2 billion into the super app
Tata Sons Ltd is considering investing at least $ 2 billion in its ambitious super app TataNeu, Mint reported.
Why it’s important: The group may also raise an additional $ 5 billion from external investors by selling minority stakes in the digital venture at a later stage.
TataNeu is expected to launch early next year.
Mint sources said that of the total investment required, Tata Sons may raise money from group firms or issue debt papers to infuse around $ 2 billion into the platform.
PE exits via IPOs jump to a record $ 2.6 bn
The private equity and venture capital investors have sold shares worth $ 2.6 billion in the nine months to the end of September, Mint reported.
Why it’s important: This is the highest volume of exits through the IPO route so far.
The main reason for this is a surge in IPOs, fuelled by a sizzling stock market.
The number of PE-backed IPOs stood at 25 this year, also a record.
The September quarter alone saw 13 PE-backed IPOs garnering a record $ 1.3 billion in sale proceeds.
Govt aims big for LIC IPO, targets Rs 10 trillion valuation
The government is planning a mega IPO for its crown jewel LIC as it asked its advisors and valuers to ascertain if the behemoth should be valued at Rs10 trillion or more, Business Standard reported.
Why it’s important: The move is after taking a cue from Zomato’s stellar IPO, through which it garnered a valuation of Rs 1 trillion, BS sources said.
The government is considering offloading about a 10 percent stake in LIC.
At that valuation, the government stands to get at least Rs 1 trillion from LIC’s proposed IPO.
The huge amount will boost the government’s plans to meet the disinvestment target of Rs 1.75 trillion this fiscal.
The government has already mopped up Rs 9,110 crore from disinvestments and will receive another Rs 2,700 crore when Air India’s sale is completed.
BCCI to rake in Rs 5,000 cr to 7,000 crore from sale of two new IPL teams
The Board of Control for Cricket in India is expected to garner Rs 5,000 crore to Rs 7,000 crore from the sale of the two new IPL franchises, Business Standard reported.
Why it’s important: The new IPL owners will be declared in Dubai today.
BCCI is also expected to get more than Rs 450 crore from its share of broadcasting and sponsorship revenues in 2022.
The revenue to go up as the number of matches in the tournament will go up from 60 to 74 next year.
The bid price for media and digital rights of the IPL for 5 years in 2023 is expected to double to Rs 32,694 crore.
We’re at the beginning of a new bull cycle: Motilal Oswal
Motilal Oswal, managing director and chief executive director of Motilal Oswal Financial Services in an interview with Business Standard said that the bull run will continue as a new economic growth cycle has just begun in India.
What he says: Strong global liquidity, recovery in corporate earnings, containment of Covid-19 cases, good monsoon, friendly policy measures by governments and central banks, and significant pick-up in vaccinations have all contributed to the Nifty rally.
The rally seems far from over and we are at the beginning of a new bull cycle for the market.
Rising energy and commodity prices, disruptions in global supply chains, and the US Fed taper are some of the factors that can also lead to higher global volatility.
Banking and auto have the potential to do well.
We are suggesting investors shift part of their portfolio from outperforming stocks to some of the undervalued stocks and sectors.
Now, we are into the first year of a new growth cycle.
