1. Stock markets break three-day losing streak on positive global cues
After declining for three days, the Sensex rose 1.41 percent amid gains in index majors and optimism on China's reopening and hopes of lower rate hikes by the United States Federal Reserve. The 50-share Nifty gained 1.35 percent. The rise was led by Bharti Airtel, Tech Mahindra, IndusInd Bank, HCL Technologies and Tata Consultancy Services. Tech stocks were the biggest gainers ahead of the company earnings season. Except for consumer durables, all other sectoral indices saw gains.
Why it’s important: Global investor sentiment has improved as China’s end of zero-Covid policy is paving the way for demand recovery and hopes that softer wage increases in the US will lead to the Fed easing its monetary stance.
2. TCS fiscal third quarter profit rises 11 percent but misses estimates
Tata Consultancy Services has reported a lower-than-expected 11 percent increase in fiscal third-quarter profit. Net profit rose to Rs 10,846 crore in the three months ended December 31 from Rs 9,769 crore a year ago. Analysts had expected the company’s quarterly profit to be Rs 11,000 crore. Rupee revenue for the quarter grew 19.1 percent to Rs 58,229 crore, led by growth in cloud services, cybersecurity, consulting services and enterprise application services.
Why it’s important: The rise in profits came even as customers restricted spending due to mounting concern about an economic recession. The December quarter is usually a seasonally weak one for IT firms because of the holiday season in Western countries, leading to lower spending.
3. Big wealth managers to invest heavily on follow-on offer by Adani Enterprises
Some of the biggest backers of the Adani Group in the Gulf, including strategic equity partner International Holding Company from the United Arab Emirates and other sovereign wealth funds and financial institutions are expected to be big buyers in the upcoming follow-on public offer of Adani Enterprises, the flagship company of billionaire Gautam Adani. Adani Enterprises in November announced a follow-on issuance to raise as much as Rs 20,000 crore ($2.5 billion) from retail and institutional investors, riding piggyback on the dramatic 18-fold jump in its stock prices in the past five years.
Why it’s important: The fundraising of Adani Enterprises would be the largest ever FPO issuance in India, matching or overtaking the mega rights issue of Reliance Industries in 2020. Retail investors, too, are expected to participate enthusiastically.
4. Early investors of edtech firm Byju’s in discussions to sell their stake
Early backers of Byju’s, including Lightspeed Investment Partners and Chan Zuckerberg, are looking for buyers for their partial or full stakes in the edtech company as they look to book profits. Some of them have farmed out soft mandates to investment banks to look for buyers. The talks are in the initial stages and final valuation is yet to be decided. Deals could be struck at a 25-30 per cent discount to the firm’s last funding valuation.
Why it’s important: The early backers have been around for a long time and are looking to cash out. The company, however, said no investor is seeking an exit.
5. Chanda Kochhar and husband granted interim bail by Bombay High Court
The Bombay High Court has granted interim bail to ousted ICICI Bank chief executive Chanda Kochhar and her husband Deepak Kochhar, ruling that their arrest by the Central Bureau of Investigation (CBI) in a loan fraud case was in violation of the provisions of law. The Kochhars are likely to be released on Tuesday after prison formalities are completed. The court ordered release on cash bail of Rs 1 lakh each. The CBI arrested the Kochhars and Videocon group chairman VN Dhoot in connection with loans of more than Rs 1,800 crore sanctioned by ICICI Bank to Videocon Group firms when Chanda Kochhar was the bank chief.
Why it’s important: The bail will provide some reprieve to Chanda Kochhar, whose fall from being a banking icon seems to be complete. The accusations of bribery and fraud are unlikely to go away anytime soon.
6. Government to fully exit from IDBI Bank once it gets a good price on remaining stake
The government will soon notify the exemption period for meeting the public shareholding norms for the future owner of IDBI Bank, Tuhin Kanta Pandey, secretary of the department of investment and public asset management (DIPAM) said in an interview. The central government will make a complete exit from IDBI Bank when it received the upside value on the remaining stake after acquisition, he said.
Why it’s important: The government’s exit plan after the privatization of IDBI Bank will depend on how well it can monetise the remaining stake. It has not fixed a timeline for complete exit.
7. Air India must wait till April to institute new employment policies
Air India owned by the Tata Group will have to wait until after March to implement new employment policies to improve accountability and increase performance. The carrier is battling recent accusations of inadequate action against unruly passenger behaviour on international flights. According to the acquisition agreement signed with the government in January last year, Tata cannot change the terms of employment of Air India employees for one year. Any significant policy change can only be implemented after March 2023. A new service agreement was to have been implemented from January 1 but was postponed due to opposition from unions.
Why it’s important: The image of Air India has taken a beating due to tardy action over unruly passenger behaviour. It will be looking to increase staff accountability and improve its performance.
8. Top broadcasters in race to secure media rights of women’s cricket tournament
Disney-Star, Viacom18 and Sony-Zee are among the broadcasters who have picked up bid documents for the upcoming media rights auction of the women’s Indian Premier League cricket tournament for the 2023-27 cycle, according to officials of the Board of Control for Cricket in India. Some others who have also expressed interest and picked up the tender documents for the auction, to be held on January 16, include Amazon Prime Video, FanCode and Times Internet.
Why it’s important: This is the first time a women’s cricket league will be organized in the country. Interest among broadcasters could be high as women’s cricket is gaining traction in recent years on superb performances.
9. Recent delays in infrastructure projects are leading to cost escalation
Time delays in projects of the Centre have spiked over the past year and cost overruns have increased, official data show, frustrating government attempts to improve efficiencies in infrastructure projects through the flagship Gati Shakti program. Nearly 51 percent of monitored projects costing Rs 150 crore and above are running late, compared with 32 percent in 2021.
Why it’s important: Economic volatility, supply chain disruptions due to the war in Europe, rising interest rates, the COVID-19 pandemic and a labour shortage are contributing to the delays.
10. RS Sodhi steps down as Amul managing director, Jayen Mehta interim chief
RS Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation, which is the owner of Amul dairy brand, has stepped down with immediate effect. Chief Operating Officer Jayen Mehta has been named interim managing director. Sodhi, who worked for Amul since 1982, was at the helm of affairs since 2010. Under his leadership, turnover surged from Rs 9,774.2 crore in 2010-11 to Rs 46,481 crore in 2021-22.
Why it’s important: Sodhi has stepped down after being given an extension of two years. A smooth leadership transition will help Amul maintain its market leadership.