- Markets: Nifty and Sensex rose 2% this week, driven by rate cuts in EU, and speculation on a Fed rate cut in US Retail inflation in India remained below 4%, but RBI indicated no immediate rate cut. Bond yields softened, influenced by falling U.S. yields and crude prices. Global market highlights include ECB cutting rates and U.S. CPI cooling, boosting investor confidence.
- RBI: RBI is unwilling to relax voting rights cap at 26% for Sumitomo Mitsui Banking Corp's (SMBC) potential 51% stake in Yes Bank. The decision raises concerns about control and turning the bank around with such limitations on voting rights.
- SEBI: SEBI's Foreign Venture Capital Investors (Amendment) Regulations, 2024, streamline FVCI processes and update eligibility rules. Margin trading rules have been relaxed, potentially boosting trading activity. New merger guidelines simplify cross-border mergers, with quicker approvals. Flipkart, Razorpay planning such redomiciling may benefit.FDI in White Label ATM Operations (WLAO) now allowed under 100% automatic route.
- Economy: Industrial growth improved, driven by manufacturing, power, and capital goods. The number of Global Capability Centres (GCCs) in India grew significantly, generating $64.6 billion in export revenue.FEMA limits for compounding contraventions were raised, speeding up case settlements.
- PE/VC: Private credit deals surged 22.4% to $6 billion in the first half of 2024, with increasing participation from domestic family offices. Real estate remains a key sector, while M&A and capital expenditure drive demand for private credit.
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