Weekly Wrap-Up : 10th July,2020

Market Wrap-Up:

  • Sensex, Nifty gains for fourth consecutive week, up by 1.5% each; RIL top gainer, up over 3%.

Indian News Wrap-Up:

  • Punjab National Bank (PNB) declared its INR 3,688 Cr exposure to DHFL as fraud. Reports suggested that DHFL through layers of shell companies allegedly siphoned of INR 31,000 Cr out of total bank loans worth INR 97,000 Cr. PNB has so far made provision of INR 1,246 Cr in the account and as per RBI norms the remaining provision will be made in subsequent quarters.
  • Amul has forayed into edible oil business with the launch of Janmay brand in Gujarat. The move comes after PM Narendra Modi’s efforts to make India self sufficient. India is the world’s largest importer of edible oil (65% of total demand) and spends INR 75,000 Cr annually.
  • BP Plc pays USD 1 Bn to Reliane Industries for 49% stake in a fuel retail joint venture announced last year. The Jio-BP JV aims to expand the fuel retailing network to 5,500 fuel stations over the next 5 years from the current 1,400.
  • ICICI Bank to raise INR 15,000 Cr via share sale to strengthen its balance sheet. Last month, the bank sold 1.5% stake in ICICI Prudential Life Insurance for INR 840 Cr and sold 3.96% stake in ICICI Lombard General Insurance for INR 2,250 Cr.
  • Unacademy acquires PrepLadder for USD 50 Mn. This is the third acquisition by the company. The aim is to make education accessible and affordable to all.
  • Vodafone Idea cumulatively paid out INR 2,850 Cr to 7 bondholders including MF’s and Banks. Franklin Templeton recovers INR 1,252 Cr from the company.
  • Yes Bank board approved the price band for the INR 15,000 Cr fundraising. The floor price has been fixed at INR 12 while the cap is at INR 13 per equity share.
  • The IIP contracted by 34.7% in May over last year compared to revised contraction of 57.6% in April. Among the three key sectors, manufacturing and mining continued to see steep contraction while electricity output fared better.
  • Energy Efficiency Services Ltd (EESL) is in talks with oil major Royal Dutch Shell for a joint venture to invest over INR 40,000 crore in setting up 5,000 MW decentralised solar plants with storage for low-cost electricity in rural India.

Global News Wrap-Up:

  • Global public debt is expected to exceed 100% of the GDP in 2020-21 and the average overall fiscal deficit is expected to soar to 14% of the GDP in 2020 as per IMF.
  • Oil prices climbed more than 1% on Friday after the IEA bumped up its 2020 demand forecast. IEA raised its demand forecast to 92.1 Mn bpd, up 400,000 bpd from its outlook last month.
  • Tesla appears on the verge of joining the S&P 500. It would be among the most valuable companies to be added, larger than 95% of the index’s existing components.
  • Brooks Brothers, founded in 1818, pioneer of office casual looks filed for bankruptcy on Wednesday. The pandemic has now claimed one of the country’s oldest and most prestigious retailers.The brand had about 500 stores worldwide and about 4,025 employees.
  • US-China “phase two” trade deal would no longer happen. The relationship between the two nations has been severely damaged by the coronavirus pandemic.
  • China’s forex reserves expand in June to over USD 3 trillion.
  • Mukesh Ambani overtakes Warren Buffet to become world’s 7th richest. Ambani’s net worth is around USD 70.1 Bn.

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