Here s a lowdown on top macro triggers that may move market on Thursday. This report was compiled from agency feeds. Cabinet Approves Relief Package for Telecom SectorThe Union Cabinet has relaxed spectrum holding caps giving a boost to M&As and spectrum sale as carriers try to sell assets including airwaves to repay debt. The Cabinet on Wednesday also extended the payments tenure for auctioned airwaves from 12 years including a two-year moratorium to 16 years as a one-time measure. The Cabinet also increased the overall airwaves holding limit to 35% from 25% and did away with the 50% cap on intra-band spectrum holdings of telcos. Instead the Cabinet decided to impose a separate 50% cap on the combined spectrum holdings in the 700 MHz 800 MHz and 900 MHz bands (sub-1GHz bands). TDP Pulls Out of NDA Govt Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday night asked his party s two central ministers to resign amid the growing strain in ties between his TDP and the BJP over alleged neglect of the state in the Union budget. He said his party would come out of the NDA but party-to-party issue (of ties with the BJP) will be decided later. The two ministers are--Union Civil Aviation Minister Ashok Gajapathi Raju and Minister of State for Science and Technology Y S Chowdary. Tata Steel Identified as Highest Bidder for Bhushan Steel Tata Steel has been identified as the highest evaluated compliant bidder to acquire a controlling stake in debt-ridden Bhushan Steel Limited that is undergoing corporate insolvency resolution process under the new insolvency law. Accordingly the advisors to the lenders as well as the resolution professional are currently in discussions with Tata Steel on the resolution plan. The next steps in the process will be as per the stipulations under the CIRP of the IBC (Insolvency and Bankruptcy Resolution Process) 2016. RInfra Asset Sale Halted The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday directed Reliance Infratel Ltd a subsidiary of Reliance Communications Ltd (RCom) to stay the sale of its assets until 13 March. The tribunal was hearing a petition filed by offshore investors of Reliance Infratel led by HSBC Daisy Investments (Mauritius) Ltd which are alleging oppression of minority shareholders and mismanagement. HSBC Daisy-led investors have argued that Reliance Infratel would become defunct after the RCom-Reliance Jio deal as it would not have any assets left. Trade War will Harm Global Growth: IMF Chief The head of the International Monetary Fund on Wednesday warned that a trade war US President Donald Trump apparently intends to provoke with tariffs on steel and aluminium would snuff out global growth. If international trade is called into question by these types of measures it will be a transmission channel for a drop in growth a drop in trade and it will be fearsome Christine Lagarde said on RTL radio. In a trade war that will be fed by reciprocal increases of customs tariffs no one wins she added. SBI IFCI United Bank Look to Clear Rs 16349 Cr NPA State-owned SBI United Bank of India and long-term infrastructure lender IFCI are looking for buyers to sell as many as 110 accounts that have turned dud to recover dues over Rs 16 349 crore. SBI plans to sell a total of 15 such NPA accounts to recover Rs 988.95 crore including the country s largest sweetener manufacturer Simbhaoli Sugars that has an outstanding of Rs 158.57 crore to the bank. CCI Fines Jet Indigo SpiceJet for Doing Unfair Biz The Competition Commission has imposed a total fine of more than Rs 54 crore on Jet Airways https://www.aeriagames.com/user/arfplayer/ InterGlobe Aviation and SpiceJet for unfair business practices with respect to fixing fuel surcharge on cargo transport. Besides the watchdog has directed the three airlines to cease and desist from anti-competitive practices. A fine of Rs 39.81 crore has been imposed on Jet Airways while the penalties on InterGlobe Aviation and SpiceJet are Rs 9.45 crore and Rs 5.10 crore respectively. Top Video India Makes Fresh Pitch for Rating Upgrade with Fitch Top Quote 2018 Lows Probably Ahead of Us Rather Than Behind Us FUNDAMENTALS 7% DA Hike: The Union Cabinet increased the dearness allowance (DA) for its 11 million employees and pensioners to 7% from 5% from January 1 2018. The hike will benefit about 48.41 lakh central government employees and 61.17 lakh pensioners. The combined impact on the exchequer would be Rs 6 077.72 crore per annum and Rs 7 090.68 crore in 2018-19 (for a period of 14 months from January 2018 to February 2019. Wealthy Indians to Grow 71% by 2022: According to property consultant Knight Frank s Wealth Report 2018 at 54% India recorded one of the fastest growth in its super prime population of individuals with a net worth of 50 million between 2012 and 2017. India is expected to add more than 2 000 such individuals at a higher growth rate of 71% by 2022. Rupee Up: The Indian rupee closed at 64.89 vis-a-vis US dollar on Wednesday up 0.10% from its previous close of 65.11. Bonds Recover: Government bonds (G-Secs) recovered following fresh demand from corporates and banks and the overnight call money rates also turned higher due to good demand from borrowing banks amid tight liquidity in the banking system. The 7.17% 10-year benchmark bond maturing in 2028 rose to Rs 96.5150 from Rs 95.88 while its yield went down to 7.68% from 7.77%. The 6.79% G-Secs maturing in 2027 gained to Rs 93.05 from Rs 92.51 while its yield softened to 7.86% from 7.95%. The 6.68% G-Secs maturing in 2031 climbed to Rs 89.67 from Rs 88.98 while its yield fell to 7.94% from 8.03%. The 7.83% G-Secs maturing in 2018 the 8.20% G-Secs maturing in 2022 and the 8.27% G-Secs maturing in 2020 were also quoted higher to Rs 100.09 Rs 102.7150 and Rs 102.64 respectively. Call Rates Up: The overnight call money rates finished higher at 5.85% from it s Tuesday s level of 5.78%. It resumed at 6.00% and moved in a range of 6.00% and 5.70%. Liquidity: The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 41.35 billion in 6-bids at the overnight repo operations at a fixed rate of 6.00% as on today while it sold securities worth Rs 243.35 billion in 46-bids at the overnight reverse repo auction at a fixed rate of 5.75% as on March 06.
AMARAVATI: In what could be seen as a populist move to win the hearts of government employees the TDP government increased the dearness allowance (DA) by slightly over 2 per cent. The state cabinet which met here with chief minister Chandrababu Naidu chairing the meeting on Wednesday decided to pay the DA with arrears from January 1 2017 to March 31 2018. The cabinet has decided to increase the DA as per the recommendations of the pay revision commission (PRC) report of 2015. The DA which now stands at slightly over 22 per cent increased to over 24 per cent. The decision would place an additional burden of 840 crore on the state exchequer annually and benefit four lakh employees. The monthly wages for village assistants was increased by 300 which would cost the exchequer 7 crore. The DA hike for the employees and the wage hike for village assistants together would cost 847 crore per year.
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