NSE - WEEKLY NEWS LETTERS
TOP NEWS OF THE WEEK

Government sells PSU shares worth $5 billion in 2015, readies 2016 pipeline - Government's disinvestment kitty has almost doubled this year with over Rs 35,000 crore garnered through PSU share sales, but not without the help of its all-time saviour LIC, while a strong pipeline is ready for 2016 with bluechips like NTPC, Coal India and ONGC. At a record high of Rs 35,236 crore, the total funds collected by the government through part-sale of its stake in the 'family silver' PSUs during 2015 marks a huge jump from about Rs 18,000 raised in the previous year.

Year End Review 2015: Ministry of Commerce & Industry - GDP at factor cost is no longer relevant in the New Series. As per the international practices, industry-wise estimates have been presented as Gross Value Added at basic prices, while ‘GDP at market prices’ of old series has been referred as GDP in new series. India’s growth rate of the GVA at Basic Price at constant (2011-12) prices in 2014-15 was 7.2 % with growth of GVA in industry at 4.5 % and in manufacturing at 5.3 %. The sectoral share in GVA at basic price at constant (2011-12) price of manufacturing sector was 18.1 % in 2014-15. GDP at constant (2011-12) prices in Q2 of 2015-16 is estimated at Rs. 27.57 lakh crore as against Rs. 25.66 lakh crore in Q2 of 2014-15, showing a growth rate of 7.4%. Quarterly GVA at basic prices for Q2 2015-16 from ‘manufacturing’ sector grew by 9.3 percent as compared to growth of 7.9 percent in Q2 2014-15.

Banks need to cut lending rates to spur economic growth - Many people think that RBI is to be blamed for not doing enough to cut rates and revive economic growth. But there is difference between cutting policy rates and lending rates. The former is the responsibility of RBI and latter of the banks. So when RBI has already cut policy rates by more than 1.2%, it is now upto banks to translate this move by RBI into lending rate cuts and transmit it to borrowers. But banks have not cut rates in line with RBI. Though new mathematics of calculating base rates on basis of marginal cost of funds is expected to benefit new borrowers, there is still a lot more that banks need to do.

FinMin cuts disinvestment target by 57% to Rs. 30,000 crore - The Finance Ministry has cut its ambitious disinvestment revenue target by 57% to Rs. 30,000 crore for the current fiscal year. Despite missing targets in the past five years, the Centre had set an ambitious disinvestment revenue target of Rs. 69,500 crore for FY16. But, strategic stake sales failed to take off and minority stake sales in PSUs also came to a halt after initial promise due to volatile markets, according to a financial newspaper. The Centre managed to mop up INR 12,700 crore in the first half of FY16 by selling stakes in 4 PSUs - the highest disinvestment in the first half in the past seven years.

optimistic about the real estate sector year in 2016 - We are optimistic and hope the year 2016 heralds’ good tidings for the real estate sector. 2015 has been quite eventful year as compared with the last two years. The government has made all the right moves to propel its growth. It has initiated a number of polices which when implemented should hopefully see the sector come out of its slumber and attract huge investments into the sector going forward. The proposed Development Plan 2034, State Regulatory bill, relaxed FDI rules, Smart Cities, GST and favourable budget are some key drivers which have the potential to improve the market sentiments and achieve the government’s aim of providing Housing for All 2022.

India will be fastest growing economy over next 10 years: Harvard researchers - India, with a projected annual growth rate of 7 per cent, has the potential to be the world's fastest growing economy over the coming decade, surging ahead of its South Asian economic rival China that will continue to see a slowdown, according to Harvard researchers. "India has the potential to be the fastest growing economy over the coming decade... India tops the global list for predicted annual growth rate for the coming decade, at 7.0 per cent," new growth projections presented by researchers at the Centre for International Development at Harvard University showed.

Call drop case: Telcos get temporary relief from Delhi HC - Delhi High Court gave a temporary relief to telecom operators at the hearing of call drops case today. The Telecom Regulatory Authority of India said that it will not take any coercive action on call drops till the next hearing on January 6, after the Delhi HC asked the regulator to do so. The High Court did not put a stay on the compensation regulation formulated by TRAI. Hence the regulation is likely to be introduced as planned on January 1, 2016. However, Delhi High Court has refrained the regulator body from taking any coercive action in case of non-compliance by telcos.

As one of the largest importers, India needs to renegotiate Oil & Gas Import contracts - For something as critical as crude oil, it’s a common belief that suppliers have immense power over customers. But on the contrary and as one of the biggest customers of crude oil producing countries, India too has a great chance to show its bargaining skills and renegotiate the terms of oil supply contracts. India's energy demand is all set to double by 2040. Also it’s quite evident that even in future, a major part of energy demands will have to be met by imports. So to ensure that it is neither arm-twisted nor short changed in future; India should renegotiate its energy contracts taking a long-term vision.

Cabinet gives approval for investment of Rs. 5,000 crore by ONGC - The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has given its approval for investment of Rs.5,000 crore by Oil and Natural Gas Company Limited into the equity share capital of ONGC Videsh by conversion of existing loan of equivalent amount into equity. The approved investment will strengthen the capital base of ONGC Videsh. It will enhance the ability of ONGC to undertake overseas Exploration and Production business, thereby improving the energy security of the country.




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