Indian Banks' Short-Term Debt Soars to 12-Year High!

Hello,
Markets declined for the fourth consecutive session yesterday as investors reacted to the increase in long-term capital gains tax introduced in the Union Budget. Indian banks' short-term debt has surged to a 12-year high due to strong credit demand. Additionally, Axis Bank has highlighted that the rise in bad loans is attributed to seasonal stress in the agriculture sector. Meanwhile, real estate players have stated that the removal of the indexation benefit is unlikely to have a significant impact.

Markets📊 
As of 24/07/2024 Market Close

• Indian stock market benchmarks, the Sensex and Nifty 50, continued their losing streak for the fourth straight session on Wednesday, July 24.

• Despite this, the mid-cap and small-cap segments saw healthy gains. The decline in the benchmark indices was mainly due to profit booking in select banking and FMCG stocks.

Notable Gainer & Loser📈📉 
Source: Moneycontrol

Schaeffler India Ltd +5.94%

• Shares surged nearly 6 percent after the auto parts maker reported a 3.5 percent year-on-year growth in net profit, reaching Rs 245.4 crore for Q1 FY25.

• Revenue increased by over 15 percent to Rs 2,106.8 crore, and EBITDA rose by 10 percent to Rs 376.3 crore.

Bajaj Finance Ltd (1.67%)

• Shares dropped by over 2 percent after missing Q1 FY25 earnings estimates.

• Its NIM declined both sequentially and annually, with analysts also noting potential pressure on NIM for Q2 FY25.

Yesterday’s Highlights📒 

• PM Modi states that India is committed to strengthening ties with the UK and aims to conclude a Free Trade Agreement (FTA). (BS)

• Removal of the indexation benefit in real estate will deter secondary market sellers. (ET)

• India's video entertainment ecosystem is projected to reach $13 billion in revenue by 2028. (ET)

• The government proposes reducing the Basic Customs Duty (BCD) on certain items used in apparel manufacturing. (BS)

• Groww Mutual Fund launches NFOs based on the Nifty EV & New Age Automotive Index. (ET)

• Axis Bank indicates that higher bad loans are due to seasonal stress in the agriculture sector. (ET)

• Realty players say the removal of the indexation benefit will have no significant impact. (BS)

• Indian banks' short-term debt has reached a 12-year high due to increased loan demand. (ET)

• Ship leasing in GIFT City is expected to benefit from the proposed variable capital company structure. (ET)

• The Environment Ministry suggests that white-category industries might be exempt from pollution permits. (BS)

• India increased its US oil imports in June while reducing imports from Russia, according to data. (ET)

• COAI says the hike in customs duty on PCBA for certain telecom equipment will increase service costs. (ET)

• Reliance has received US approval to resume crude imports from Venezuela. (ET)

• Increased spending in rural areas: More money in consumers' hands is expected to boost demand for consumer goods. (ET)

IPO / Issuances🚀 

• Ola Electric is reportedly planning to launch its $740 million IPO next month. (Moneycontrol)

• SpiceJet's board has approved raising ₹3,000 crore through a QIP. (BS)

• Akums Drugs and Pharmaceuticals' IPO is set to debut on Dalal Street on July 30. (Moneycontrol)

• Suraksha Diagnostic, backed by global investment firm OrbiMed, has filed its IPO papers with SEBI. (ET)

This week’s mainboard IPO schedule

• Sanstar (RHP)

  • Offering Period: 19-23 July, 2024

  • Listing Date: 26 July, 2024

  • Issue Price: 90-95

  • Lot Size: 150

Deal Activity🤝 

M&A / Investments

• Tech-first insurer ACKO has acquired the health-tech company OneCare. (YS)

• The CCI has approved Amazon Asia's acquisition of a 76% stake in Frontizo. (YS)

• Captain Fresh has acquired Koral, a Poland-based salmon company. (YS)

• The CCI has approved the sale of Amazon India's largest seller, Appario, to Clicktech. (ET)

Debt

• Piramal Finance is targeting the overseas bond market to diversify its funding sources. (BS)

VC

• FAAD Capital invests in four agritech startups through the AgriManch accelerator. (EN)

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