/ETMarkets Morning Podcast:Sebi probes Yes Bank-bondholders collusion & other market-moving news

ETMarkets Morning Podcast:Sebi probes Yes Bank-bondholders collusion & other market-moving news

Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Saloni Goel, and here is what we have to start your day.

>> Top global brokerages raise Nifty targets
>> D-Street set to see highest FPI flows in Nov
>> Sebi probes Yes Bank-bondholders collusion
>> Sebi panel for keeping NRI, FPI categories separate

And there is more. But first, a quick glance at the state of the markets…

>> >> Nifty futures on the Singapore Exchange traded 7 points lower at 7 am (IST), signalling indecisiveness on Dalal Street.

>> Asian stocks followed their US counterparts lower on Friday as a resurgence in coronavirus cases added to concern that tougher restrictions may slow down the economic recovery. Shares dipped in Japan and Australia and were steady in South Korea.

>> Wall Street dropped in a broad sell-off overnight. The blue-chip Dow was pulled down by industrial and financial companies sensitive to economic growth and fell 317 points, or 1.08%, to 29,080, while the S&P500 lost 35.65 points, or 1.00%, and the technology-heavy Nasdaq 76.84 points, or 0.65%.

>> Oil prices fell as a spike in Covid infections raised fears for the global economy and near-term fuel demand. WTI crude futures dropped 40 cents, or 1.0%, to $ 40.72 a barrel while Brent crude slipped 36 cents, or 0.8%, to $ 43.17

>> The rupee dived 28 paise to end at 74.64 against the US dollar on Thursday on sustained demand for the greenback from importers and banks coupled with foreign fund outflows

>> The dollar was little changed as were the euro and yen. The Australian dollar and New Zealand dollar nursed losses made with the risk-averse mood. The offshore yuan was steady at 6.6151 to the dollar.

>> Gold and silver edged higher in Indian markets though they remain sharply lower for the week. On MCX, gold futures rose 0.35% to Rs 50,339 per 10 gm while silver futures gained 0.38% to Rs 62,780 a kg. In international markets, gold was little changed at $ 1,875 an ounch

All in all, the trade setup looked weak on Dalal Street. On Thursday, Nifty50 snapped an eight-day rally after forming Hanging Man candles in the previous two sessions, thereby confirming a pause in the ongoing momentum.

LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.

… Global brokerages such as Goldman Sachs and Nomura have raised their targets on the Nifty amid the stock market rally that catapulted indices to fresh all-time highs. Goldman Sachs has raised its Nifty target to 14,100, implying an 11% upside for the index from Thursday’s closing of 12,691. Nomura’s new target of 13,640 is about 7.5% away from the Nifty’s close on Thursday. Upgrading its rating on India to ‘overweight’ from ‘marketweight’, Goldman said the investment case for the country’s equities has improved.

…Indian equities are poised to receive the highest portfolio inflows in a month in November led by an increase in the country’s weighting on MSCI indices. While FPIs have already pumped Rs 28,795 crore into stocks here so far in November, another Rs 30,000 crore is expected from overseas passive funds by the month-end as they buy stocks to align their holdings to the new MSCI index weights. The highest that overseas investors have pumped into Indian stocks in a month was Rs 45,727 crore in August 2020.

… Sebi has asked some of the large investors if they were ‘warehousing’ perpetual bonds of Yes Bank before the securities were palmed off to unsuspecting retail investors. Why did these big, institutional investors sell down the papers soon after buying them in the primary market? Did they receive any incentives from the private sector lender? Was there a back-to-back arrangement? More importantly, why did Yes, after issuing these bonds, facilitate secondary market deals? These are among a long list of questions raised by the markets regulator in its letters to the bulk investors about a month ago.

… HDFC Bank is back in the caution list of depositories for foreign investment – the first time in over a year. On November 9, NSDL put HDFC Bank stock on the so-called Red-Flag list after the total foreign holding in the lender crossed 71%. The maximum permissible foreign holding in the bank is 74% according to the RBI rules. According to November 11 data, FPI holding in the bank stood at 71.16% and had a headroom to buy up to 15 crore more shares.

…A regulatory panel has recommended that the investment routes maintained for NRIs and FPIs be kept separate as they now are, although the Centre was in favour of a merger to help achieve the ease-of-doing-business objective. Two top industry executives aware of the recommendations of the panel appointed by Sebi told ET that the committee doesn’t favour a merger as earlier proposed by the government.


· Infosys expects a majority of large deals to be in the $ 100-$ 250 million range going forward, even as it chases very large deals

· TCS will acquire certain assets and employees of Pramerica Systems Ireland from Prudential Financial in its second acquisition this year

· Wipro CEO Thierry Delaporte has restructured the IT services provider, tasking key executives with owning the P&L and delivery, and focusing on business outside of the US, its main market.

· Rakesh Jhunjhunwala’s Rare Enterprises has acquired 50 lakh shares of Indiabulls Real Estate Thursday through a bulk deal.

· Grasim Industries said it is divesting its fertiliser business by way of a slump sale to Indorama Corporation for a cash consideration of Rs 2,649 crore.

· Amazon has told Sebi that the arrangement between Future Group entities and Reliance Retail is beneficial only for Kishore Biyani and his family, and undermines the interests of minority shareholders of Future Retail.

That’s it for now. For all the market news through the day, do track ETMarkets.com. Have a great day ahead! Bye-bye

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