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


Markets snap five-day falling streak, remain jittery

India’s share markets rebounded by more than 1 percent after declining for five straight days on positive global cues, but observers expect the volatility to continue. The benchmark Sensex rose 1.05 percent to 57,037.5 points while the 50-share Nifty rose 1.02 percent to 17,136.55 points, respectively.

Why it’s important: Indian markers are following global counterparts but some of the volatility is due to adverse indications on the domestic front such as high inflation and rising input costs in a variety of sectors. Investors were, however, encouraged by some of the latest corporate earnings, leading to a rise.

Corporates commit Rs 2.34 trillion to production-linked incentive scheme

India’s production-linked incentive scheme to encourage local manufacturing has generated investment commitments of Rs 2.34 trillion across 14 sectors, according to data from various ministries. The government expects the scheme to generate additional output worth Rs 28.15 trillion and 6. 45 million new jobs in the next five years. The total outlay for the scheme is Rs 1.97 trillion.

Why it’s important: The government says there has been a encouraging response across all the 14 sectors. Automobile and auto components, advanced chemistry cell batteries, specialty steel and high-efficiency solar panels have attracted the maximum interest.

Government to seek relaxation of new rules for LIC IPO

The central government is likely to seek a special dispensation from the Securities and Exchange Board of India and the Reserve Bank on the new norms regarding a lock-in period for anchor investors and caps on funding by wealthy individuals for the initial public offering of the Life Insurance Corporation of India.

Why it’s important: LIC’s share sale is likely to be the first major instance to test the new rule by the market regulator that mandate a lock-in period of 90 days for 50 percent of anchor investors. The Reserve Bank has mandated a Rs 10 million ceiling on funding by high net-worth individuals.

Tata companies pare exposure to international markets

Tata Group companies have begun cutting exposure to global markets by exiting subscale businesses to reinvest capital and intensify their local focus. The firms have been asked to retain profitable businesses that are not a distraction to their main consumption market of India.

Why it’s important: A sharp rise in global commodity markets coupled with the restarting of domestic business activity have prompted the group’s efforts to focus more on profitability, experts said.

Post-COVID recovery needs coordinated action from nations: Sitharaman

There is an urgent need for coordinated action among nations to enable a swift economic recovery after the Covid-19 pandemic, and to build resilience to future shocks, finance minister Nirmala Sitharaman has said at the G20 Emerging Market Economies meeting in Washington DC.

Why it’s important: Although the International Monetary Fund has slashed India’s growth forecast 8.2 percent from 9 percent earlier, the country is still likely to remain the fastest growing major economy. Its performance will have a effect on the global economic recovery.

India to offer incentive to boost green hydrogen output

The central government plans to introduce a production-linked incentive scheme to encourage the manufacturing of electrolyzers that are needed to extract hydrogen from water. The power ministry and the NITI Aayog are working on the specifics of the scheme, which is likely to be launched by September. The incentive scheme is likely to run for five years.

Why it’s important: A policy to encourage the production of electrolyzers is critical for India to lower the cost of green hydrogen. The nation’s two biggest conglomerates, the Ambani and Adani groups, have already announced mega plans to make India a green hydrogen hub.

Antitrust body to tell company tribunal it has right to revoke decision

The Competition Commission of India is filing a submission before the National Company Law Appellate Tribunal about holding the right to revoke its own decision if the information furnished to it is incomplete or incorrect.

Why it’s important: The tribunal is hearing ecommerce giant Amazon’s plea against a CCI order on suspending its deal with Future Coupons. Amazon had argued that CCI did not have the power to suspend or place its own order in abeyance.

Netflix loses 200,000 users, shares crash by 37 percent

Streaming platform Netflix has said it was seeing an uptick in user engagement in India, although it lost 200,000 subscribers globally in the first quarter of 2022. It also said that its use base will shrink by another 2 million in the second quarter. Netflix’s stock plunged 37 percent on the announcement.

Why it’s important: Netflix in January had said its lack of success in India was frustrating. The streaming service lags in number subscribers in the country at just 5 million compared with versus Disney+ Hotstar’s 36 million and Amazon Prime Video’s 17 million.

Experts recommend shortening gap between COVID booster doses

As Covid-19 infections rise again in India, experts are questioning the government’s mandate of a nine-month gap between the second vaccination jab and the booster dose, as they call for a shorter gap on the grounds that immunity declines after 4-6 months of a dose.

Why it’s important: The logic for a longer gap is that it produces a better immune response against Covid infections. However, some experts said that the neutralizing antibodies decline to background levels in about six months, therefore a shorter interval is required.

Brand value of Indian Premier League may decline 3-4 percent

The brand value of the Indian Premier League could take a hit this year, as the T20 cricket tournament grapples with poor television viewership as well as a renewed Covid-19 scare. Last year, the cricket tournament was suspended for a while in May after some players tested positive.

Why it’s important: Although there is a lot of hype riding on the cash-rich league because it is open to spectators after two years and being held in India, lower viewership, which drives up advertising, could prove to be a dampener.

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