As we entered the new financial year on Friday, there was a drop in global crude oil prices and the Indian Stock Markets surged to Two-month highs. The Sensex rallied over 708 points to recapture the 59000 mark while the Nifty surged 205 points and closed in the green at 17,670 points. Sectors like banking, realty and power did well as buying increased in these sectors.
Market movers
Some of the top gainers were NTPC, Power Grid Corporation of India Limited, IndusInd Bank, SBI, BPCL and HDFC, while some of the top losers were Hero Motocorp, Tech Mahindra, SBI Life Insurance, Sun Pharma, Titan Company, Dr Reddy’s Labs, Titan Company and Infosys.
In this week’s recap, we shall talk about the Citi Bank deal, payment default by the future group, stock limits on edible oils, solar cell imports, the release of oil from the USA’s strategic reserves, India’s external debt, VILs share allotment to promoters, the Tata Group’s entry into the semiconductor business and the possible shortage of sunflower oil in India.
India exports rise to record high of USD 418 bn in FY22
India’s merchandise exports spurted to a record high of USD 418 billion in 2021-22 fiscal on higher shipments of petroleum products, engineering goods, gem and jewellery and chemicals, according to official data released on Sunday.
Outbound shipments touched an all-time monthly high of USD 40.38 billion in March 2022, Commerce and Industry Minister Piyush Goyal told reporters here. Exports stood at USD 35.26 billion in March 2021.
Biden orders release of 1 million barrels of oil per day from US strategic reserve for 6 months to tame gas prices
After Russia’s invasion of Ukraine had sent crude prices surging, the soaring cost of fuel became a major political issue around the world, including the US. President Joe Biden has announced that the US will release 1 million barrels of oil per day from its strategic petroleum reserve for the next six months.
This oil release will be the largest in the nearly 50-year history of the strategic petroleum supply and the revenue generated from selling the oil would be used to restock the Strategic Petroleum Reserve of the US when the prices are lower, in order to be prepared for future emergencies.
Solar cells import jumps to USD 3,447 mn in April-Jan; maximum shipment from China
The import of solar cells rose to USD 3,447 million (around Rs 26,000 crore) during April-January 2021-22 as compared to USD 572 million in April-January 2020-21. This financial year, the maximum import was from China at USD 3,117.78 million.
The government has set a target of installing 100 GW of solar power capacity by December 2022. Projects of 108.91 GW have either been commissioned or are in the pipeline.
Govt extends stock limits on edible oils, oilseeds till December
The prices of commodities have increased due to the current global geopolitical situation and the government on Thursday extended stock limits on edible oils and oilseeds till December this year to keep the prices in check.
According to the order which is applicable from April 1, 2022, the stock limit for edible oils will be 30 quintals for retailers, 500 quintals for wholesalers, 30 quintals for retail outlets of bulk consumers i.e. big chain retailers and shops and 1,000 quintals for its depots.
The stock limit will be 100 quintals for retailers and 2,000 quintals for wholesalers, as far as oilseeds are concerned. Exporters and importers have been kept outside the purview of this order with some caveats.
India’s external debt rose to USD 614.9 bln at end of December 2021
The finance ministry said on Thursday said that India’s external debt rose by USD 11.5 billion to USD 614.9 billion in the three months ended December 2021.
“India’s external debt continues to be sustainable and prudently managed,” it said. Commercial borrowings (36.8%) were the largest part of the debt followed by non-resident deposits (23.1 per cent) and short-term trade credit.
Ukraine war may result in 25% supply shortage of sunflower oil in India: Report
Ukraine is the world’s largest sunflower grower and according to a report, the ongoing war is likely to result in at least 25 per cent or 4-6 lakh tonnes shortage of crude sunflower oil supplies in India next fiscal. India gets 70% of crude sunflower from Ukraine and 20% from Russia.
Domestic edible oil processors usually maintain raw material inventory of 30 to 45 days and this will help them to deal with the supply disruption in the immediate short term.
VIL board okays share allotment to 3 promoter group cos to raise Rs 4,500 cr
Vodafone Idea’s board has approved the allotment of 338.3 crore equity shares at Rs 13.30 per scrip to three promoters group entities – Euro Pacific Securities, Prime Metals and Oriana Investments – for about Rs 4,500 crore.
The fundraising comes at a time when the market is gearing up for the rollout of 5G services. Vodafone Idea has opted to pay interest dues of around Rs 16,000 crore through preferential shares.
Tata’s Tejas acquires majority stake in semiconductor firm Saankhya Lab
Tejas Networks, a Tata Group firm will acquire a 64.40 per cent stake in semiconductor firm Saankhya Labs Pvt Ltd for Rs 283.94 crore in an all-cash deal.
Saankhya has developed a wide range of system and semiconductor products for cellular wireless, broadcast radios and satellite communication ground terminals. It has 73 international patents (41 granted, 32 filed), and it is building software-defined radios (SDR) powered by its own chipsets. With this acquisition, the Tata Group has forayed in the semiconductor business.
Axis Bank buys Citi’s India retail business for Rs 12,325 cr
US bank Citigroup on Wednesday announced the sale of its Indian consumer banking businesses to private lender Axis Bank for Rs 12,325 crore, as part of its plans to exit retail operations in 13 markets. The sale excludes Citi’s institutional client businesses in India.
Axis Bank already has a retail book of nearly ₹ 4 lakh crores and it will acquire 30 lakh, unique customers, from Citibank India, which has a retail book of ₹ 68,000 crores. Citi Bank’s business in India contributes 1.5% in profit to its global book.
Future Enterprises defaults on Rs 19.16 crore loan repayment
Future Enterprises Ltd (FEL) on Tuesday said that it has defaulted on payment of Rs 19.16 crore to Canara Bank, Punjab National Bank, and Union Bank of India under the one-time restructuring plan. This is the second default by FEL this month, which was supposed to honour the payment on March 28.
As per an August 2020 deal, the Future Group would consolidate its 19 companies including FEL and transfer it to Reliance.
