Transfin.

Shareholders of Yes Bank Approve Raising ?10,000cr Through Equity

Shareholders of Yes Bank approve raising ?10,000cr ($1,402m) through equity. RBI keeps repo rate unchanged at 5.15%, accommodative stance remains. India's manufacturing PMI hits eight-year high of 55.3 in January. India's services activity hits seven-year high in January. WhatsApp gets regulatory approval to launch WhatsApp Pay across India.

 

 

RBI MPC MEET

RBI keeps repo rate unchanged at 5.15%, accommodative stance remains.

Holding Your Horses (For Now)

The RBI has left the repo rate unchanged at 5.15%, as was widely accepted, while it has decided to maintain its accommodative stance.  This was announced following the three-day meeting of the six-member Monetary Policy Committee (MPC). All six members voted in favour of maintaining the status quo due to rising inflationary rate and slow transmission of the already announced rate cuts.

 

FY21 GDP growth pegged at 6%.

The RBI cut GDP growth forecast for first half of FY21 by 30-40 basis points from 5.9%-6.3% to 5.5%-6%. The FY21 GDP growth forecast is at 6%, while for FY20 it is at 5% with 4.6%-5.5% for second half of FY20. Moneycontrol

 

The Central Bank also announced several measures to boost realty, housing, MSME and NBFC segments. You can read the RBI Governor's Sixth Bi-monthly Monetary Policy Statement, 2019-20 here.

 

 

INDIAN ECONOMY

India's manufacturing PMI hits eight-year high of 55.3 in January.

Scaling New Heights: Manufacturing Purchasing Managers' Index (PMI) for India hit an eight-year high of 55.3 in January from 52.7 in December on the back of sharp rise in new business orders amid a rebound in demand conditions that led to rise in production and hiring activity.

 

India's services activity hits seven-year high in January.

Scaling New Highs

IHS Markit India Services Business Activity index rose to 55.5 in January, up from from 53.3 in December, and the highest in seven years. The rise was primarily on the grounds of favourable market conditions and better underlying demand. Output expanded faster, while new orders rose the most in seven years due to positive outcome from marketing efforts and employment growth sustained. [Livemint]

 

 

POLICY

SEBI to undertake reclassification of mid cap and small cap mutual funds.

Switching Roles

In a bid to enable mutual funds schemes to invest in wider set of stocks, the Securities and Exchange Board of India (SEBI) is looking to reclassify mid cap and small cap mutual funds.

 

SEBI had in 2017 introduced categorisation and rationalisation of mutual funds schemes so that investors could make accurate comparison of schemes. Prior to this, each fund house would employ its own criteria for deciding the classification as there was no standard definition.

 

Mutual fund managers claim that categorization had taken away their flexibility to invest, resulting in money flowing into a set of stocks, which has impacted performance of mutual funds schemes. [ET Wealth]

 

WhatsApp gets regulatory approval to launch WhatsApp Pay across India.

Green Light

The National Payments Corporation of India (NPCI) has granted WhatsApp permission to roll out its digital payment platform WhatsApp Pay across the country in a phased manner.

 

The regulatory approval - coming days after the RBI's nod - comes after WhatsApp assured officials that it will comply with data normalisation norms.

 

The trial run of the Facebook-owned company's payment app began in February 2018 when it was introduced to a million users. Now, it will be able to offer services to 10m users and then follow it up with a full rollout. Given WhatsApp's 400m-strong user base in India, it could become one of the biggest payments players in the country. [BS]

 

 

COMPANIES

Yes Bank shareholders approve raising ?10,000cr ($1,402m) through equity.

The shareholders of YES Bank on Friday cleared a proposal to raise up to ?10,000cr ($1,402m) by issuing equity shares or convertible securities - a move that could help enhance the private sector lender’s capital adequacy. [Hindu BusinessLine]

 

Flipkart shuts down Jabong; to channelize all energies towards Myntra.

Ecommerce platform Flipkart has formally shut its fashion portal Jabong.com, to focus on its lifestyle portal Myntra.

 

Following the development, Jabong’s portal and the app will redirect to Myntra’s shopping window.

 

Blast from the Past

Myntra, a Flipkart Group company, had acquired Jabong in July 2016 for $70 million in cash and Flipkart had bought Myntra in May 2014. [Hindu BusinessLine]

 

WeWork names Sandeep Mathrani as new CEO.

New CEO in the Block

Beginning February 18th, WeWork will have a new chief executive. The SoftBank-backed office-sharing firm has announced that real estate industry veteran Sandeep Mathrani will join the company as CEO. He is the former chief executive of Brookfield Properties' retail group, and prior to that he was an executive at real estate firms including Vornado Realty Trust. NDTV Profit

 

 

GLOBAL

US adds record-breaking 225,000 jobs in January.

The US economy added a record-breaking 225,000 in January. Some of the January job gains came in industries, such as construction and leisure and hospitality, that benefited from mild winter weather. 

 

However, manufacturing, traditionally a creator of higher-wage jobs, lost 12,000 positions during the period.

 

Wages climbed 3.1% from a year earlier, a touch stronger than December’s rise of 3%. [The Guardian]

 

Tesla shares surge to push market cap above $160bn.

Musk on a High

Tesla is on a roll. The electric car maker's shares have rallied over 50% since last Wednesday, when the company posted its second consecutive quarterly profit. Since June, Tesla shares have climbed by about 400% and yesterday (Tuesday), its shares surged by as much as 24%. All this skyrocketing business has benefited its market capitalisation, which had only recently crossed $100bn and is presently at $160bn. This is almost twice the combined value of Ford and General Motors.

 

Tesla CEO Elon Musk gets richer too. His 19% stake in the company has bolstered by $16bn since the start of 2020 to a sweet $30bn. [Moneycontrol]

FIN.

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