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Latest News Today: Reliance Industries Hits Market Valuation of INR9L cr, BHEL Share Price Rises 28% On News of Disinvestment

Professor of Financial Economics and Part-time Value Investor, Transfin.
Oct 18, 2019 1:21 PM 5 min read

Reliance Industries hits market valuation of INR9L cr ahead of Q2 results. BHEL share price rises on the back of disinvestment news. China GDP growth slows to 26-yr low. Scotch whisky, French wine, Spanish olives and Italian Parmesan face Trump's tariffs. 



Data centres emerge as a lucrative business opportunity.

Data is the New Oil: Data centres have of late emerged to be a lucrative business opportunity in India as three major business groups announced plans to enter the segment in the last four months alone.
  • In July, the Adani group said it would invest up to INR70,000cr to set up solar powered data parks in Andhra Pradesh
  • This was followed by real estate major Hiranandani Group announcing a INR14,000cr investment plan
  • Reliance Industries too announced partnership with Microsoft to provide cloud services to small and medium enterprises
  • Last week, Oracle announced the launch of its Gen 2 Cloud region in Mumbai, with another planned in Hyderabad
This development has been spurred by the government's push for a more inclusive digital economy and creation of more Smart Cities. Such initiatives mean that more and more data is being generated across platforms such as Cloud and social media as well as accessed by more people using mobile technology. Needless to say, all this data needs to be stored, managed and disseminated to users via public and private cloud. ET Tech

India ranked third-worst for Data Privacy in Global Surveillance Index.

Disgraceful!: As per Compritech's global survey, India is among the world’s three worst country for data privacy. Only China and Russia fared worse. 

The survey ranked countries based on constitutional protection, statutory protection, privacy enforcement, biometrics, data sharing and the government’s access to citizen data among other things. Inc42


Flouting FDI norms set for the e-commerce companies will attract strict actions, says Piyush Goyal.



Flouting FDI norms set for the e-commerce companies will attract strict actions, says Piyush Goyal.

Crime and Punishment: Union Minister of Commerce Piyush Goyal has said that flouting FDI norms set for ecommerce companies, either in the letter or in spirit, is bound to attract severe actions. 

Goyal said that some complaints have been brought to his attention regarding violations by e-commerce companies and details are being sought from the concerned parties. Requisite action will follow. HT

BHEL share price rises 25% on the back of disinvestment news.

For the Greater Good: Share price of  power equipment producer Bharat Heavy Electricals (BHEL) surged 27.5% in trade today before closing at INR54.35 (+21.86%) on the back of news that the government is likely to cut its stake in the company.

Govt’s stake in BHEL may be pared in tranches to 26% from 63.17% currently. 

The government may also look to sell the state-run power player's non-manufacturing units to private players.

Earlier in October, the government cleared disinvestment in five PSUs, a move which is expected to cover nearly 60% of its disinvestment target of INR1.05L cr for FY20. Livemint



Reliance Industries becomes first Indian company to cross INR9L cr market capitalisation.

Aim for the Summit: Market cap of Reliance Industries today surged to INR9L cr as shares jumped - touching a fresh record high ahead of the announcement of Q2 results. Reliance Industries share price jumped by more than 2% to hit the day’s high at INR1,428. Financial Express

Reliance Retail could benefit greatly from India’s unorganised retail market, says Bank of America-Merrill Lynch.

Mom-and-Pop to Rock: As per the latest report by research firm Bank of America-Merrill Lynch (BofA-ML), Reliance Retail’s market value will skyrocket to a whopping $200bn in two years, and a massive chunk of this growth will come from unorganised retail market or kirana stores.

The segment, if it takes, can contribute as much as $25bn to the enterprise value, increasing the total retail business value to $70bn. Business Insider



GDP growth slows to 26-year low as trade war, inflation and low consumer demand hurt economy.

Beijing Blues: In the quarter ending in September, China grew by 6%. This represents the weakest growth since the country began reporting quarterly numbers in 1993. The trade war with the US has taken a devastating toll on China’s economy, which is now the world’s second largest. Coupled with rising inflation, weak consumer demand and a dangerous bout of African swine fever that has decimated the country’s pig population, these factors have slowed growth to a 26-year low.
These doleful numbers could spur the Communist Party to cut interest rates and pursue aggressive stimulus to boost the economy. But it will be tricky since the country’s debt is already so sky-high that its credit rating has been slashed. AP
Since 1949, China has come a long way. Once an economic backwater, it became the world’s factory to today becoming a viable competitor to the US for the title of world’s largest economy. You can visualise and read about China’s eventful transformation here.


European producers of specialty agricultural products face Trump’s tariffs over Airbus subsidies.



European producers of specialty agricultural products face Trump’s tariffs over Airbus subsidies.

Trump is Coming for Your Wine: European producers of specialty agricultural products are facing the heat of America’s clash against Europe over the EU’s subsidies to Airbus. Washington is taxing European aircraft 10% more but agricultural products an extra 25%. This has hit products that have “protected name status” – goods sold under a certain name because they come from a particular region or have unique production methods. These include the likes of Scotch whisky, French wine, Spanish olives and Italian Parmesan.
Needless to say, producers of these products are more than irked by these punitive taxes, which they feel could seriously hurt their US sales. Their main complaint is that their products have nothing to do with the Boeing vs Airbus conflict: they are a different group of products altogether and are suffering because of politics. USA Today

Brexit deal secured, Boris Johnson heads to Parliament to get it approved.

Never Underestimate a British Man’s Optimism: Now that Boris Johnson has finalised a deal with the European Union, he faces the daunting task of convincing the UK Parliament to pass the deal. And in case you haven’t been following the unending drama that is British politics, Westminster is now a stunningly fragmented along countless lines and ever-shifting opinions. When Johnson’s predecessor Theresa May tried to pass her Brexit deal, it was defeated by a crushing 430-202 margin.
But the Prime Minister is confident about his prospects, despite having already faced derision from his coalition partner and the Opposition Labour Party. Whether he faces defeat or success will be seen when the chamber votes on Saturday. Guardian


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