A round-up of the biggest articles from newspapers.
Stock markets fall on Omicron fears
India’s stock markets fell by 2 percent, the most in four months and tracking other bourses in Asia, as Rs 6.8 trillion of investor wealth was lost in a day. Analysts said a further decline of 4-5 percent by the end of the year cannot be ruled out.
Why it’s important: The benchmark Sensex rose more than 20 percent in the first 10 months of 2021 and is trading at about 21 times estimated 12-month profits, compared with 12 times in the MSCI Emerging Markets Index. The stock market may have entered a correction phase.
Govt recovers Rs 13,109 crore by selling assets of defaulters
The government has recovered more than Rs 13,109 crore by selling assets of defaulters like Nirav Modi, Vijay Mallya and Mehul Choksi by July 2021, finance minister Nirmala Sitharaman said on December 20.
Why it’s important: The top 10 willful defaulters owe lenders close to Rs 85,000 crore, which could lead to a crisis in the country’s banking system. If the government is able to recover a significant portion of the sum, it will save money on recapitalizing banks, which could then be spent on stimulating the economy.
Cars24 valuation doubles to $ 3.3 billion
Cars24, an e-commerce platform for secondhand vehicles, said it had raised $ 400 million in its latest round of funding, taking the valuation for the firm to $ 3.3 billion. The company will use the money to strengthen its foothold in India and expand its business in West Asia, Australia, and Southeast Asia.
Why it’s important: India’s used car market is expected to double in the next five years to $ 47 billion. The country now has four companies worth more that $ 1 billion — Cars24, Spinny, Droom and CarDekho — who are poised to benefit.
Shares of Future Retail soars after Amazon deal put on hold
Future Retail’s shares and dollar bonds rose by 20 percent, the maximum permitted, after the Competition Commission made it harder for Amazon to block a bid for the Indian departmental store chain by Reliance Industries
Why it’s important: The decks might have been cleared for Reliance Industries to acquire the supermarkets of Future Retail. Investors are sensing an opportunity.
Adani Enterprises bags Ganga expressway project worth Rs 17,000 crore
Adani Enterprises have won contracts to build some 80 percent of the 594km Ganga expressway, the longest in the country that will connect Meerut to Prayagraj in Uttar Pradesh. It will be able to collect tolls on the stretches it builds for a period of 30 years.
Why it’s important: The central government is spending heavily on infrastructure to kick-start the economy after the pandemic disruption. The huge roads project is expected to encourage development in large parts of India’s most populous state.
Government may defer crypto bill in Parliament
With only three days left in the winter session of Parliament, it is unlikely that the government will table the much-anticipated cryptocurrencies bill as details of the legislation are yet to be finalized.
Why it’s important: There has been a rush of investments in various cryptocurrencies in the past year or so. India will through a law regulate the ecosystem and may even ban all cryptocurrencies in the countries and launch a government-mandated on that will be overseen by the Reserve Bank of India.
Bharat Biotech seeks nod for phase III trials of nasal vaccine
The Hyderabad-based Covaxin maker has sought approval of phase III clinical trials of it’s intranasal vaccine against COVID-19. If the trials are successful, it might serve as a booster dose for those who are fully vaccinated.
Why it’s important: The Omicron variant of Sars-Cov-2, which has sparked fears of another global surge in infections and has spooked stock markets, is reported to be able to infect even those who are fully vaccinated. India may consider giving a booster does vulnerable groups to start with.
OfBusiness raises $ 325 million, now valued at nearly $ 5 billion
OfBusiness, a Delhi-based start-up that sells industrial goods and provides funding to small businesses, has raised $ 325 million, raising its valuation to nearly $ 5 billion. Its valuation has multiplied six times in eight months.
Why it’s important: The high valuation of OfBusiness is another instance of the red-hot start-up scene in India that has been surging in 2021 despite the pandemic shock. The next year might see some of these funds listing in the bourses.
Mumbai property registrations scale new peak
Mumbai, the country’s biggest property market, has sustained its growth momentum as homebuyers continued to acquire properties, riding on low interest rates and generous offers from property developers.
Why it’s important: India’s property markets have been subdued to more than five years, with many new residences lying vacant for the want of buyers. Though this is early signs, a revival in the market may provide some relief to stressed realty firms.
Omicron risk fails to deter holiday bookings
Consumer appetite for holiday gateways remains strong despite fears of Omicron spreading fast. Many hoteliers have said rooms are selling out fast.Why it’s important: Tourism and hospitality were among the hardest hit due to COVID-19 lockdowns and mobility restrictions. Unless there is a revival soon, many in these sectors that employ a large number of people will go out of business.
