BQuick On March 27: Top 10 Stories In Under 10 Minutes

Introducing Election Soundtrack, a daily podcast that’ll get you up to speed with everything that you need to know about Elections 2019.

Here is a roundup of the day’s top stories in brief.

1. Bigger MSME Loans In 59 Minutes?

Government promoted online credit platform psbloansin59minutes.com is looking to expand its mandate to larger ticket loans, as it works towards the Narendra Modi-led administration’s attempt to improve credit access for small businesses.

• The portal, whose shareholders include the Small Industries Development Board of India and large public sector banks, was launched in September 2018 with the promise of loan approvals within 59 minutes for micro, small and medium enterprises.
• So far the platform was accepting applications for loans up to Rs 1 crore.
• According to at least three people familiar with the matter, discussions are underway to increase that limit.

Banks are happy with the portal's results which is why they are looking to expand scope.

2. GMR Gets Rs 8,000-Crore Boost

GMR Infrastructure Ltd. announced that a consortium of a Tata Group company, Singapore's sovereign wealth fund GIC and SSG Capital Management have agreed to invest around Rs 8,000 crore in its airports business.

• There will be an equity infusion of Rs 1,000 crore in GMR Airports Ltd. while Rs 7,000 crore will be used towards purchase of its equity shares from the listed entity as well as its subsidiary.
• The company plans to de-merge its airports business—which contributes 60 percent of its revenue—into a separate entity from its energy, highways, urban infrastructure and transportation businesses.
• “It’s a win-win game,” Saurabh Chawla, executive director of finance for GMR Group, told BloombergQuint in an interview, adding that the deal would be a game changer for the infrastructure sector.

Here’s how the move will change GMR’s shareholding in the airport business.

3. 601 Foreign Portfolio Investors Barred From Trading In India

601 entities owned by foreign portfolio investors have been barred from buying or selling securities in the Indian markets after they failed to disclose their beneficial owners.

• The National Stock Exchange said in a notification that the entities in question failed to disclose the details as part of the market regulator’s know-your-customer requirements.
• Some of these entities were owned by investment houses such as Pacific Investment Management Co., Ashburton Investments Ltd., and Goldman Sachs Group Inc.
• Emailed queries to these investment houses remain unanswered.

See the list of the FPI entities impacted by this.

Also Read: Raamdeo Agrawal Sees Room For More Gains

4. Sensex Drops, Dow Drifts

Indian equity benchmarks ended lower after rallying yesterday.

• The S&P BSE Sensex ended 100 points or 0.26 percent lower at 38,132.
• The NSE Nifty 50 ended below 11,450, down 0.33 percent.
• Six out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Pharma Index’s 1.04 percent fall.
• On the flip side, the NSE Nifty PSU Bank Index was the top sectoral gainer, up 1.59 percent.

Follow the day’s trading action here.

Bonds rallied as traders turned their focus to a worrying economic outlook. Stocks drifted and the dollar rose.

• Treasury 10-year yields slid below 2.4 percent and rates on benchmark German bunds sank deeper below zero after European Central Bank President Mario Draghi said that an accommodative policy stance is still needed.
• The S&P 500 Index was little changed as a drop in commodity shares offset gains in industrial companies.
• New Zealand’s dollar tumbled as the central bank joined the global shift away from tighter policy.
• Oil held near $60 a barrel.

Get your daily fix of global markets here.

5. Indian Equities: Buoyant On Fund Flows, Tempered By Valuations

There's a flood of foreign money rushing into the Indian markets right now, but here's what else you should be watching closely, writes Niraj Shah.

• Flows follow performance and valuations, in most cases. Valuations seem fair-to-slightly-stretched.
• The key ingredient for outperformance will, thus, have to be earnings growth, however concentrated that turns out to be.
• Yes, growth in India is better than the rest, but one still needs to see if indeed FY20 will be the year when earnings growth can make an actual comeback.

These are the only two questions which will determine how much money you make.

6. Lenders Leave Door Open For Naresh Goyal’s Return

The last 25 years have been the story of Naresh Goyal's indestructibility, writes Menaka Doshi.

• India’s aviation policy has facilitated his interests the most.
• But no policy could protect Goyal from the onslaught of budget carriers.
• Eventually even the Etihad money ran out. So has Goyal's luck.

Why were Jet Airways' lenders in a hurry to see Goyal go and yet keeping the door open for him to return?

7. SEBI Defers Royalty Amendments Implementation

The Securities and Exchange Board of India deferred implementation of revised norms for royalty payment by listed companies to related parties by three months.

• Following the decision taken at the regulator’s board meeting, the implementation of a provision of the amended norms has been deferred till June 30.
• They were to be implemented from April 1 this year.
• Shareholders’ approval would be needed for making royalty or brand payments to related parties exceeding 2 percent of the particular listed entity's consolidated turnover.

Royalty is to be only considered material if over the 2 percent threshold.

8. India Joins Elite ‘Space Power’ Group

Prime Minister Narendra Modi announced India had joined the U.S., Russia and China in an elite group of nations that have the capability to target satellites.

• In a televised address to the nation, Modi said India has shot down a low Earth orbit satellite, noting the capability was crucial for national security.
• He said the operation, called Mission Shakti, establishes India as a “space power”.
• India’s current range of missiles are mostly intended for confrontation with neighbouring rivals China and Pakistan.
• Modi’s address comes just weeks ahead of general elections to determine whether he’ll serve a second term as prime minister.

Today’s announcement may indicate that Modi isn't very sure of the election going his way.

9. The Problem With Congress’ NYAY

Cash transfers are the flavour of this election season. The Modi government had earlier announced cash transfers of Rs 6,000 per year to farmers owning two hectares of land or less. The Congress has upped the ante by promising a minimum income of Rs 72,000 per year for five crore families with income levels below Rs 12,000. The scheme is called Nyuntam Aay Yojana.

• The immediate concern surrounding each of these schemes is the cost. While the farm income transfer is estimated to cost Rs 75,000 crore in FY20, the minimum income scheme, if implemented in one shot, could cost as much as Rs 3.5 lakh crore.
• But even before costs are analysed, questions must be asked on the manner in which such schemes will be implemented. The first among these questions is the data set that will be used to identify the beneficiaries for the scheme.

Here’s what senior economists including Berkeley's Pranab Bardhan, JNU's Jayati Ghosh and MIT's Abhijit Banerjee had to say on the problem of identifying beneficiaries for the proposed scheme.

10. 50 Best Restaurants In Asia

After four consecutive years as Asia’s best restaurant, Bangkok’s Gaggan has finally been dethroned.

• Odette in Singapore managed to wrestle the title from the iconic Indian-fusion restaurant, famed for its emoji-filled menu.
• Chef Julien Royer, who named the place after his maternal grandmother, steered Odette to first place from from ninth in 2017 with multiple-course French fare that has included “seared foie gras, miso caramel, lemon quinoa and Japanese strawberries.”
• Gaggan landed in second place, still retaining the title of Thailand’s best—a bittersweet run for a restaurant that is due to close in 2020 as chef-owner Gaggan Anand plans new ventures in Japan.

See the full list of the 50 top Asian restaurants—one of which is in New Delhi.