Category — Economy

India’s Stock Exchange Regulator Eases Rules for Foreign Investors

To ease rules for foreign investors and safeguard their interest, the Securities and Exchange Board of India announced reforms which include approval for trading of both stocks and commodities on a single exchange, and capping of cross-holdings in rating agencies as well as in mutual funds.

For foreign portfolio investors, the Board relaxed entry norms by expanding the eligible jurisdictions for registration by including all countries that have diplomatic ties with India; the regulator will also rationalize criteria and simplify the broad-based requirements for such investors.

A signborard with 'investment' written on it

The proposed norms will impact global rating agencies such as  S&P, Moody’s, and Fitch which have significant holdings in Indian rating agencies apart from their direct presence.

 

January 8, 2018   No Comments

India’s Stock Market Raises $11.6 Billion in 2017

153 initial public offering hit the Indian stock market in 2017, raising $11.6 billion according to an industry report. The report added that the market “looks good” for 2018 as well. The stability of the political landscape in India with continued focus on reform agendas by the government and significant tax reforms in the United States is likely to trigger another wave of strong growth in the capital market to enjoy a preferred position in terms of capital allocation by investors.

“The Indian IPO market in particular looks good for financial year 2018 with the return of foreign institutional investors and strong investor sentiment creating a bullish investment climate,” said Sandip Khetan, partner and national leader, Financial Accounting Advisory Services, EY India.)

Magazine with Investment Report written on it(Key highlights of the report as shared by PTI News🙂

  • 2017 saw the highest deal numbers and proceeds on record, reflecting the country’s economic strength and rising investor appetite
  • The fourth quarter of calendar year 2017 saw 22 IPOs reaching the market, an increase of 47 percent quarter-on-quarter (Q-O-Q) in terms of number of deals
  • Emerging markets contributed strongly to overall IPO performance, with both the Bombay Stock Exchange and India’s National Stock Exchange recording a 74 percent increase in deal numbers in 2017
  • The largest IPO was by General Insurance Corp of India worth $1.7 billion
  • In the Europe, Middle East, India, and Africa regions (EMEIA), the Bombay Stock Exchange and stock exchanges dedicated for trading shares of small- and medium-scale enterprises recorded the highest proceeds worth $5.5 billion through 17 IPOs
  • The top three sectors by highest number of IPOs in the EMEIA region are technology, industrial goods, and financials
  • The combination of primary market growth and overall economic growth is set to make India a highly attractive emerging market for investments in the coming months

 

December 24, 2017   No Comments

2017 Brings over $30 Billion Overseas Funds to India Stock Market

The overall net inflow of foreign  investor funds has made 2017 the best period in three years for India’s capital markets — both equity and debt — with combined net inflows of over $30 billion. Banking, housing finance, and the auto industry sectors have seen consistent foreign portfolio inflows. The higher inflow in 2017 can be attributed to the expectation of a rise in domestic economic growth, experts said.

Economy chart

As the year draws to a close, the Indian stock market seems to have regained its status as one of the most favored destinations for foreign portfolio investors, reports Business Today. However, market analysts believe that foreign portfolio flows may not continue in 2018 with the withdrawal of liquidity and rate hikes in developed economies picking up. Additionally, the inflation cycle is likely to turn following an increase in commodity prices and a recovery in consumption demand.

Dinesh Rohira, founder and chief executive at 5nance.com said that business sentiment among companies has improved because of India’s ‘ease of doing business’.  The government’s commitment in speeding up development and economic reforms before going for elections in 2019 bodes well for foreign investors’ confidence, he added. The government’s decision to recapitalize state-owned banks is also expected to enhance lending and propel economic growth.

December 22, 2017   No Comments

In India, Lockheed Martin to Focus on Women-led Startups

Having supported startups in India for more than a decade, many of which were led by women, Maryland-based Lockheed Martin plans to invest in technology startups, with a special focus on women-founded ones, says its deputy executive vice president Lorraine M. Martin.

Planning in a startup
Martin recounted initiatives to encourage women to join the technology manufacturing workforce and toward inspiring them at early ages towards science, technology, engineering and math. She said, “We (at Lockheed Martin) would like to have half the workforce as women, which is what our population is. All the studies have shown that diverse workplaces are more productive. Studies show that companies with women in senior leadership perform better.”

 Lockheed Martin’s India Innovation Growth Program offers $2 million a year of resources and mentoring to startups through competition. The company has partnered with the Government of India, Department of Science and Technology, and with the Tata Trust, that has helped to double their resources, Martin told the Economic Times.

December 22, 2017   No Comments

Automobile Industry in India Grows 24% in November 2017

All segments of the automobile industry in India recorded double-digit sales growth in November ’17. Sales of passenger vehicles grew 14 percent, lowest among all segments, while those of motorbikes and scooters grew 23 percent. Sales of commercial vehicles were up by 50.4 percent.

A truck

Business Standard reports that according to data issued by the Society of Indian Automobile Manufacturers (SIAM), demand from India’s rural areas is driving sales for two-wheeled vehicles.  Vishnu Mathur, director general at SIAM, said, “In the goods carrier segment, trucks have grown mainly on enhanced spending by the government on infrastructure projects. However, the bus segment remains impacted, as government buying remains at a slow pace.” 

December 15, 2017   No Comments