Stock Market News 13-October-2021

1. India in Top 5?
a. Indian Stock Market seems ready to overtake the British Stock Market in value and enter the Top-5 Stock Market Club, at least by one measure. Low interest rates and high retail investor participation has helped the stock market to gain value.
b. India’s Market Capitalization has surged 37% this year to $3.46 trillion which is very close to that of UK’s which is valued at $3.59 trillion. (Excluding secondary listings and depository receipts).
c. India’s high growth potential and a vibrant technology sector with start-ups going public this year are giving the emerging market an edge – especially when sentiment towards Chinese equities has soured. The uncertainties related to Brexit continue to weigh on the British Market.

2. Tata Motors new son EvCo.
a. Tata Motors has formed a wholly owned subsidiary EvCo to undertake the Electric Vehicles business.
b. TPG Rise Climate and Abu Dhabi’s ADQ have agreed to invest Rs.7,500 crores (approx. $1 billion) in the newly formed subsidiary of Tata Motors. This will entitle them to a stake of around 15% in the subsidiary and the balance will be owned by Tata Motors.
c. Tata Motors is the leading player in the electric vehicles segment with more than 70% market share.
d. Tata Motors is planning to Invest more than Rs.16,000 crores over the next five years. The investors will be issued compulsorily convertible instruments over an 18-month period.
e. Tata Motors is planning to create a portfolio of 10 Electric Vehicles and Tata Power will help them in the creation of necessary infrastructure.
f. The shares of Tata Motors opened 10% up and Tata Power opened 3% up and extended its gain to 14% because of this investment.

3. IIP grows at 11.9%

a. The index of industrial production grew at 11.9% in August 2021 as compared to a growth of 11.5% in July 2021. The index has shown a growth of 3.9%, compared to pre-pandemic level of August 2019, revealed the data released by Ministry of Statistics and Programme Implementation.
b. Cumulative growth in April 2021 to August 2021 was 28.6%, compared to 25% in the same period a year ago.
c. The manufacturing sector grew 9.7% compared to a contraction of 7.6% last year, growth in electricity generation stood a 16% compared to a contraction of 1.8% a year ago, Mining activity witnessed a growth of 23.6% in comparison with a contraction of 8.7% last year.
d. The consumer durables grew at 8%, compared to a contraction of 10.2% last year. Consumer non-durables grew at 5.2%, compared to a contraction of 3% last year. Capital goods output – reflecting private sector investment – grew 19.9% compared to 14.4% contraction last year.
e. The Index of Industrial Production indicates the performance of various industrial sectors. An Index showing positive growth can be a reflection of a strong economy.

4. HDFC and 3 other banks in the Top 20 A-PAC.

a. HDFC Bank, ICIC Bank, State Bank of India and Kotak Mahindra Bank are the four Indian Banks to make it to the Top 20 A-PAC (Asia Pacific) banks by Market Capitalization.
b. HDFC Bank stood at 7^th rank with $119.1 billion market capital, ICICI Bank stood at 12^th rank with $65.5 billion market capital, State Bank of India stood at 17^th rank with $54.5 billion market capital and Kotak Mahindra Bank stood at 19^th rank with $53.6 billion market capital. All the Indian Banks have shown a growth in their respective market capitals on QoQ basis.

5. Airline companies get Government nod to operate at full capacity.

a. The Ministry of Civil Aviation has issued an order to allow domestic flights to operate at 100% capacity from 18^th October 2021. Currently, the domestic carriers were permitted to operate at 85% capacity.
b. However, the government is yet to remove fare caps.
c. Ministry of Civil Aviation has stated that the decision to ease norms was taken after reviewing the current air travel demand.

6. Good News for Banking and Finance Aspirants.

a. Banking and Non-Banking Finance Companies (NBFCs) have ramped up hiring plans with an increase in recruitment of 30-35% in comparison with last year.
b. HDFC Bank with an aim to reach 200,000 villages in the next two years is planning to hire more than 2,500 people in the next six months. Shriram Group is hiring 5,000 people and ICICI Home Finance is looking to onboard 600 employees by December. Kotak Mahindra Bank, too, has resumed hiring closer to pre-covid levels.
c. Financial institutions had brought hiring to a halt as they dealt with the aftermath of the first and second Covid wave. With businesses returning to normalcy and growth expected to pick up in the festive season, companies are adding to their full-time workforce to be ahead of the competition. Also, with the increased emergence of technology, banks and non-bank lenders have ramped up hiring in the technology and fintech space.