The big PE, VC deal flow in Indian internet ventures: $8b in last fiscal, $7b in April to September 2018

Source: Financial Express, Oct 08, 2018

India’s online environment is thriving. Private equity firms and venture capitalists invested a chunky $7 billion into online ventures between January and September, data sourced from research agency Tracxn showed. That may be a little less than the $8 billion they bet during this time last year but it’s nonetheless impressive.

Private Internet companies have done well for themselves picking up over $6 billion, estimates by Jefferies say. Of this, over a third of the investments or $2.4 billion flowed in during the September quarter alone. Read the rest of this entry »

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RBI to buy Rs 360 billion worth of bonds in October to ease liquidity

Source: Business Standard, Oct 02, 2018

Mumbai: The Reserve Bank of India (RBI) on Monday said it would buy Rs 360 billion worth of bonds from the secondary market in October to meet the durable liquidity needs and the seasonal growth in currency in circulation observed in the build-up to the festive season. The auctions will be conducted during the second, third, and fourth weeks of October.

This advance intimation of open market operations (OMO), along with last week’s relaxation of the liquidity coverage ratio by 2 percentage points, infused the much-needed support for the bond market. The yields on the 10-year bond closed below 8 per cent (at 7.987 per cent) on Monday. Read the rest of this entry »

Fiscal deficit improves YoY to 94.7% at August end

Source: The Economic Times, Sept 26, 2018

NEW DELHI: Fiscal deficit touched 94.7% of the FY18 estimate at end of August, marginally better than 96.1% at the same point last fiscal, data released by the government showed.

Finance minister Arun Jaitley had last week said the government will meet the fiscal deficit target of 3.3% of GDP for the year. In FY18, the government had breached the budget target of 3.2% of GDP, ending the year at 3.5%, same as the year before.

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BRICS bank awards $525-million loan to Madhya Pradesh for infra projects

download (5).jpgSource: Business Standard, Sept 20, 2018

Bejing: The New Development Bank (NDB) of the BRICS countries has approved a $525-million loan to Madhya Pradesh for infrastructure projects, it said on Thursday.The Board of Directors of the NDB on Wednesday approved a $350-million loan for the Major District Roads Project II of Madhya Pradesh and $175 million for building and upgrading 350 bridges.

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RBI eases overseas borrowing limits, masala bond rules

Source: LiveMint.com, Sept 19, 2018

Mumbai: The Reserve Bank on Wednesday eased norms for companies in the manufacturing sector in raising overseas funds and allowed Indian banks to market masala bonds in line with the government’s measures to prop up the rupee.

Following a review of the economy by Prime Minister Narendra Modi last week, the government announced an array of measures to check the decline of the rupee and curb the widening current account deficit (CAD).

Liberalisation of the external commercial borrowing (ECB) norms was among other measures announced by the government. Read the rest of this entry »

Centre announces new measures to rein in rupee

Source: The Hindu Business Line, Sept 15, 2018

In an effort to rein the rupee, the Government on Friday announced a slew of measures. These include curbing non-essential imports and incentivising the exports.

These measures were announced after the Prime Minister Narendra Modi went into huddle with the Finance Minister Arun Jaitley and the RBI Governor Urjit Patel beside senior Finance Ministry officials and other Government officials to review the economy especially after rupee plunged to below 72 level against a dollar, though closed at 71.85 a dollar on Friday.

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India turns epicentre of emerging markets rout

download (2)Source: LiveMint.com, Sept 11, 2018

Mumbai: India became the focal point of an emerging markets (EMs) rout on Monday after months of managing to stay on the periphery. The Indian rupee is the worst performing emerging markets currency, declining 11% year to date against the dollar.

Ripple effects of the depreciating rupee were felt across equities and bond markets as well.

Bloomberg cited an unidentified finance ministry official as saying that India might consider selling deposits denominated in foreign currency to non-resident Indians to shore up the currency. While this statement did help tamp down selling pressure temporarily, no official confirmation was available at the time of going to press.

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