Back to buying
The surprisingly muted stock market reaction to India s virus disaster can also be seen in net outflows of foreign investors, which totaled about $1.5 billion in April versus $8.4 billion during the height of the rout last March. They turned net buyers of Indian equities this week after four straight weeks of outflows.
More limited and regional lockdown measures being implemented by state governments have prevented a slide in economic activity like last year, but the risk is that the outbreak may prompt a sharp escalation in restrictions again. A national lockdown is not priced into the markets, said Arvind Chari, chief investment officer at Quantum Advisors Pvt..
India’s stock market isn’t pricing in a full Covid lockdown
Benchmark equity index has been moving in line with regional peers despite surge in cases India’s Covid-19 crisis has so far failed to spark a deep stock sell-off like that seen last year, and some asset managers point to less stringent curbs on activity as the main factor, at least for now.
Even as the nation reports more than 300,000 confirmed infections and over 4,000 deaths a day, India’s benchmark equity index has been moving in line with regional peers. The S&P BSE Sensex index has declined 6.6% from a mid-February peak, about as much as the MSCI AC Asia Pacific index. That compares with a 23% tumble in the Sensex in March last year when the coronavirus pandemic started to rage globally.
Indian insurers get nod to invest in debt instruments of InvITs, Reits
April 26, 2021
The Insurance Regulatory and Development Authority of India (Irdai) allowing insurers on Thursday to invest in debt securities issued by infrastructure investment trusts (InvITs) and real estate investment trusts (Reits) is expected to improve the overall yield of the portfolios held by the firms, while providing more long-term funding to the realty sector.
The nod came after Irdai had allowed insurers in March to invest in the units of such pooled investment vehicles.
“The move gives insurance companies an additional opportunity to invest in top-rated infrastructure assets. By their very nature of business, insurance companies are long-term players and hence ideal candidates for investments in long-term infra projects,” said Arun Srinivasan, head of fixed income, ICICI Prudential Life Insurance Co. Ltd.
India: Jana bank files for IPO, seeks to raise $95.8m
IPO
April 2, 2021
Jana Small Finance Bank, one of the 10 entities that received the small finance bank (SFB) licence in 2015, filed its draft red herring prospectus with the markets regulator on Thursday for an initial public offering (IPO).
The bank plans to raise fresh capital of up to ₹700 crore through the IPO, while over a dozen existing shareholders will sell part of their shares through an offer for sale. The total size of the IPO would be approximately ₹2,000 crore, said a person aware of the company’s plans.
The selling shareholders include Bajaj Allianz General Insurance Co. Ltd, ICICI Prudential Life Insurance Co. Ltd, Hero Enterprise Partner Ventures and Enam Securities Pvt. Ltd. Investment firms such as TPG, HarbourVest group, Amansa Capital and Morgan Stanley are also shareholders of the bank. “Our bank proposes to utilize the net proceeds from the Fresh Issue towards augmenting our Bank’s Tier – 1
Taishin Financial upbeat over income, silent on life deal
By Kao Shih-ching / Staff reporter
Taishin Financial Holding Co (台新金控) yesterday gave a rosy outlook for fee income and the interest rate spread this year, but was silent on progress toward acquiring Prudential Life Insurance Co of Taiwan (保德信人壽).
Taishin Financial in December last year submitted an application with the Financial Supervisory Commission (FSC) regarding its bid for the local unit of US-based Prudential Financial Inc.
The commission has not yet approved the deal and on Monday said that Taishin Financial had failed to explain the financial resources it would use for the acquisition.