BQuick On May 28: Top 10 Stories In Under 10 Minutes

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

1. Exclusive: RBI Panel May Not Suggest Large Surplus Transfer

A panel set up to review the economic capital framework of the Reserve Bank of India may not recommend a large transfer from the central bank’s existing reserves to the government, said a person directly familiar with the matter.

• While the panel may recommend tweaking some of the rules that determine the amount of reserves held by the central bank, these changes may not result in a significant one-time transfer.
• The panel, set up in December, is reviewing both the existing reserves held by the central bank and future transfers.

Here's what's likely to happen to dividend payouts and the formula used to calculate RBI's capital need.

2. Earnings: Sun Pharma, SpiceJet, PNB

Sun Pharmaceutical Industries Ltd.’s quarterly profit fell by more than half, missing analyst estimates, due to restructuring of business.

• Net profit fell 52.6 percent year-on-year to Rs 635.90 crore.
• Revenue rose 2.7 percent to Rs 7,163.90 crore.
• Margin contracted to 14.2 percent from 24.1 percent a year ago.

Here is how restructuring impacted Sun Pharma's results.

SpiceJet Ltd.’s profit for the quarter ended March rose despite the grounding of 13 Boeing 737 Max 8 flights in its fleet.

• Net profit rose 22 percent to Rs 56 crore.
• Revenue rose 25.3 percent to Rs 2,531 crore.
• The airline reported a net loss of Rs 316.1 crore for the year ended March.

The company remains confident of a revival this year from strong yields and favourable operating environment.

Punjab National Bank reported a surprise quarterly loss on higher-than-expected provisions.

• It reported a loss of Rs 4,750 crore compared to a Rs 13,417-crore loss last year.
• Net interest income rose 37.1 percent to Rs 4,200 crore.
• Provisions rose to Rs 7,611 crore from Rs 2,753 crore in the previous quarter.

Asset quality improved.

3. Sensex Rises, U.S. Stocks Pare Gains

Indian equity benchmarks registered their third record close amid volatile trade.

• The S&P BSE Sensex closed 0.17 percent or 66 points higher at 39,749.
• The NSE Nifty 50 ended little changed at 11,928.
• The broader market index represented by the NSE Nifty 500 Index closed 0.1 percent higher.
• Seven out of 11 sectoral gauges compiled by the NSE ended lower, led by the NSE Nifty Media Index’s 1.9 percent gain.

Follow the day’s trading action here.

U.S. stocks pared early gains as chipmakers slumped anew, while Treasuries advanced as investors positioned for what could be a protracted trade dispute with China.

• The S&P 500 clung to a gain in the first day of trading following a holiday weekend, with health-care and media shares buoying the index.
• The Stoxx Europe 600 slipped and stocks climbed in Japan and China.
• The bond rally that pushed yields to a 17-month low came after President Donald Trump declared that the U.S. was “not ready” to reach a trade deal with China.
• The offshore yuan weakened as the Chinese government seized a bank for the first time in more than two decades.
• West Texas Intermediate crude gained 0.8 percent to $59.10 a barrel.

Get your daily fix of global markets here.

5. Zee Hopes To Get A Buyer By July

The promoters of Zee Entertainment Enterprises Ltd., which is looking to pare debt, are in talks with financial and strategic investors to sell stake in the media company and expect binding bids by July.

• “We are in an advanced stage of discussion with multiple bodies for strategic stake sale,” Punit Goenka told BloombergQuint in an interview.

Promoters will retain minority stake even after they sell stake.

6. Airtel Africa Plans London Listing

The Africa unit of Bharti Airtel Ltd. plans an initial public offering in London to help reduce debt at the continent’s second-largest mobile carrier.

• The offer by the wireless carrier on the London Stock Exchange would comprise new shares and the sale would seek a free float of at least 25 percent.
• It is also considering a listing in Nigeria, it said.
• The sale of shares to the public could raise about $1 billion, people familiar with the matter said earlier this month.

JP Morgan Securities is sole sponsor for the planned sale.

7. Ethanol Comes To The Rescue

High-margin ethanol business aided India’s sugar makers’ earnings even as a record output in the domestic market pushed prices lower in the first half of the year.

• The distilleries business—that contributes 7-17 percent to the overall revenue of India’s three large sugar makers—accounted for around 50 percent of their profit before interest and tax in financial year 2018-19.
• That’s nearly a twofold jump from the previous fiscal.
• The contribution from the sugar business fell for the second straight year.

Ethanol provided the biggest cushion after an increase in the procurement price for the alternative fuel.

8. FDI Inflows Decline First Time In Six Years

Foreign direct investment in India declined for the first time in the last six years in 2018-19, falling by a percent to $44.37 billion.

• FDI inflows in telecommunication, construction development, pharmaceuticals and power sectors declined significantly in 2018-19, according to data of the Department for Promotion of Industry and Internal Trade.
• Last time it was in 2012-13 when foreign inflows had registered a contraction of 36 percent to $22.42 billion.
• Since 2012-13, the inflows had been continuously growing and reached a record high of $44.85 billion in 2017-18.
• Sectors that recorded a growth in FDI includes services, computer software and hardware, trading, and automobiles.

Singapore has replaced Mauritius as the top source of foreign investment into India.

9. Congress’ Leadership Crisis

The Congress party has been gripped by internal turmoil after its defeat in the Lok Sabha elections. Its governments in both Karnataka and Rajasthan teeter on the brink with reports suggesting the Bharatiya Janata Party may try to wrest power in both states. At the same time, party President Rahul Gandhi is reportedly adamant about resigning from his leadership position.

• DMK chief MK Stalin appealed to Gandhi not to step down and give up the idea of resigning.
• RJD supremo Lalu Prasad Yadav said that Gandhi's resignation would be suicidal as Congress would fall into "BJP's trap".

Follow the events around India’s grand old party as it tries to revive itself.

10. A Makeover Behind The Bazaar

It’s Ramzaan and Mumbai’s Bhendi Bazaar smells like a feast. As people stream in after evening prayers, aroma of kebabs and malpuas pervades the maze of bylanes hemmed in by rundown buildings. Right in the heart of this age-battered landscape, two buildings tower over everything around, signalling the change in this 125-year-old neighbourhood.

• The twin highrises of Al-Sa’adah—Arabic for joy or good fortune—are the first of the 13 such towers to be built.
• Some 85 of 120 businesses have already moved in, while 614 families are expected to start shifting in three months.
• The Rs 5,000-crore redevelopment of Bhendi Bazaar is one of India’s biggest urban makeovers that will alter the city’s skyline.

Here’s a look at how one of the most crowded places in Mumbai is being redesigned.