Morning News from India - June 18, 2018 Tweet18 Jun 2018
- Caution Grips Sensex, Nifty As Trade War Concerns Intensify (Bloomberg Quint)
- India’s Subprime Mortgage Mania Can Quickly Turn To Panic (Bloomberg Quint)
- The Original Sin of India’s Banking Crisis? A Non-Existent Corporate Bond Market (The Wire) - IBN, HDB
What is the design problem of lending in India? After 40% of the priority sector lending, banks are free to lend money to any one on business consideration. In many Western countries, big industries access funds from either equity or the bond market. Banks do not lend them money beyond working capital requirement. In India, under the pretext that the bond market is not developed, they access it from the commercial banks.
- Business Lounge with MakeMyTrip’s Deep Kalra (Livemint) - MMYT
- Tata Motors’ turnaround plan is bearing fruit (Economic Times) - TTM
- ICICI Bank goes from backing Chanda Kochhar to reportedly looking for a replacement (Quartz India) - IBN
- TCS share buyback shows absurdities of India’s repurchase rules (Livemint)
The Securities and Exchange Board of India, or Sebi, has mandated that companies reserve 15% of share buyback offers for small shareholders with holdings worth less than Rs 2 lakh.
These shareholders typically own a fraction of the company’s shares, which essentially means that all or most of the shares they tender in buyback offers get accepted. This provides an incentive for short-term trades that involve buying shares worth Rs 2 lakh or so just ahead of the buyback, and then tendering them at the announced buyback price, which in this case is at a 17% premium.
- TCS, Infosys push BSE IT index to new high; IT index rallies 24% in CY18 (Business Standard) - INFY, WIT
HDFC Bank may rely on Indian market for $2.3 billion share sale (Livemint) - HDB
- A million Indian users are testing out WhatsApp’s payments feature (Quartz India)
- How India And Ratan Tata Helped Xiaomi Set Up Biggest IPO Since Alibaba (Bloomberg Quint)
- Mobile wallet transactions fell sharply in March (Livemint)