Indian stock markets outperform global peers for third consecutive year
Indian equities went through extreme volatility in 2022 but managed to post a modest gain of over 5 per cent at a time most of the global indices are set to end the year deeply in the red. The MSCI India index, used by global fund managers to evaluate the performance of Indian equities, outperformed the MSCI World index by 20 per cent in 2022, the highest in eight years.
Why it’s important: Although overseas investors pulled out money from Indian equities, they still posted a gain because domestic funds kept investing despite one crisis after the other roiled the markets.
Gautam Adani tops India’s billionaire list although the superrich shrinks to 120
Many of the Indian superrich lost the billionaire tag in 2022 but some of the richest have become even richer. The number of dollar billionaires in India, those with a net worth of $ 1 billion, or around Rs 8,241 crore, has fallen to 120 from a record 142 at the end of 2021. The billionaire promoters’ combined wealth fell 8.8 per cent to around $ 685 billion (Rs 56.5 lakh crore) from $ 751.6 billion (Rs 56.62 lakh crore) a year ago.
Why it’s important: The spectacular rise of the wealth of Gautam Adani was fueled by a rally of stocks of his group companies. The concentration of wealth at the top of the Indian pyramid continues.
Government considers incentives for medtech sector in upcoming budget
The central government is working on a plan to offer financial incentives to boost the production of high-end medical devices in India. The scheme aims to set up 15-16 medical device production clusters and labs for testing such devices. The proposed scheme will be in addition to the production-linked incentive scheme for medical devices.
Why it’s important: The medical device industry is capital-intensive and requires long gestation to develop and adopt new technologies. The fresh sops are expected to make India self-sufficient and reduce healthcare costs for the people.
Petronas, Sembcorp and JSW Neo in race to acquire Continuum Green Energy
Petronas, Sembcorp Industries, and JSW Neo Energy are intent on acquiring Continuum Green Energy India in a potential deal that may have an enterprise value of $ 1.5 billion. The companies may submit non-binding bids next month for the deal, which is expected to have an equity value of around $ 600 million.
Why it’s important: Keen investor interest in green energy continues in India as the country races to contain its carbon emissions load in line with its global climate commitments.
CBI seeks probe into criminal conspiracy in ICICI Bank-Videocon loan fraud case
The Central Bureau of Investigation has sought to expand its ongoing probe into the ICICI Bank-Videocon Group loan sanctioning case, proposing to examine the roles of unknown public servants and other individuals while seeking further custody of the bank’s former CEO Chanda Kochhar, her husband Deepak, and Videocon chairman Venugopal Dhoot. The CBI’s remand plea for the three also stressed on criminal conspiracy. The Kochhars and Dhoot have been arrested in connection with the Rs 1,730 crore of loans sanctioned by ICICI Bank to the Videocon Group when Chanda Kochhar was the lender’s chief.
Why it’s important: The alleged loan fraud case is getting murkier. The supposed involvement of Chanda Kochhar, once an icon in Indian banking, is unfortunate, underscoring that private banks need to be more vigilant on matters of probity.
Airlines see bumper third quarter as passenger traffic and fares rise
Indian airlines are set to end the year on a high note as record demand for air travel and high airfares boost revenue. Air travel has skyrocketed with the onset of the holiday season, with daily traffic in December more than doubling to nearly 420,000 from around 200,000 in January. India saw a record number of air travelers on 24 December, as 435,500 people took to the skies on 2,904 flights. This was higher than the daily average of 2,900 flight departures and 400,000 air passengers in the pre-covid year of 2019.
Why it’s important: The aviation sector took a hard hit during the pandemic due to mobility restrictions. The pent-up demand and higher ticket prices have seen them recover their losses to a large extent.
States to police online gaming after Centre frames guidelines
State governments will be asked to oversee law and order issues related to online gaming within their jurisdictions, even as the central government defines the regulations for the industry. The legal framework, which will supposedly provide a light touch regulation of gaming intermediaries, will require them to appoint grievance redressal executives and nodal contact executives who can deal with law enforcement agencies. The new rules are likely to be introduced for public consultation by mid-January.
Why it’s important: The widespread popularity of online games, particularly those involving money, has been under the government’s scanner in the recent past. There have been calls for greater transparency and rules to contain tax evasion.
After Gambia, Uzbekistan blames Indian cold medicine on children’s deaths
After Gambia, Uzbekistan alleged that children in that country have died after consuming medicines manufactured by an Indian drug firm. Cough and cold medicine brand Dok-1 Max, manufactured by Noida-based Marion Biotech, is allegedly behind the deaths of as many as 18 children. Uzbekistan’s health ministry has said that samples of Dok-1 Max contained ethylene glycol, a toxic substance that can lead to convulsions and renal failure.
Why it’s important: The accusations are bound to dent India’s images as the world’s pharmacy. The government must ensure domestic drugmakers meet the highest quality standards.
Venture capital funding for local start-ups decline 30 per cent in 2022
Venture capital funding for India startups fell as much as 30 per cent in 2022 compared with the record highs of 2021, as the turbulence in the tech sector made investors skittish, significantly impacting late-stage fundraising. India’s new-age companies raised $ 23.95 billion across all stages as of December 28 compared with $ 35.46 billion in 2021, according to Venture Intelligence data.
Why it’s important: Fresh money for late and growth-stage startups has slowed as investors have become more selective in their approach. The effects of a funding winter have started showing.
Tax officers tasked with recovering reduced dues from bankrupt companies
The Central Board of Indirect Taxes and Customs has allowed tax officers to recover reduced dues from bankrupt businesses as decided by the National Company Law Tribunal while deciding on the future of a distressed company. This clarifies how field officers could go about dealing with tax dues, which are classified as operational credit under the bankruptcy code.
Why it’s important: The decision clarifies the role of indirect tax authorities. The reduction in the dues to the government as a result of bankruptcy proceedings also gets sanctity under GST law.
