Weekly Wrap: Zee Stake Sale, Privatisation Push, Twin Relief For Telecom Operators

From the government’s push for privatisation for three public sector undertakings and providing relief to telecom operators to Essel Group selling stake in Zee Entertainment Enterprises Ltd., India witnessed an eventful week between Nov. 18 and 22.

Finance Minister Nirmala Sitharaman, on Nov. 20, said the cabinet has approved the sale government’s 53.29-percent stake in Bharat Petroleum Corporation Ltd. to a strategic buyer, which included the transfer of management control. The sale, however, will exclude BPCL’s 61 percent stake in Numaligarh Refinery in Assam, which will be moved out of BPCL before the divestment and retained by the government.

Besides, BPCL, the Cabinet has approved government’s stake sale in Shipping Corporation of India Ltd. and Container Corporation of India Ltd.

Also, the cabinet has approved the government’s stake in two PSUs— THDC India Ltd. and North Eastern Electric Power Corporation Ltd.—will be sold to NTPC Ltd.

In the view of telecom stress, the Cabinet has approved to defer spectrum payments due from telecom operators for the next two financial years. Besides, Bharti Airtel Ltd. Reliance Industries Ltd.’s unit Reliance Jio Infocomm Ltd. and Vodafone Idea Ltd. announced plans to increase tariffs from the next month. They, however, did not disclose the quantum of increase in tariffs.

Zee Entertainment Enterprises was also under investors’ watch after Subhash Chandra-led Essel Group, the promoter of Zee Entertainment Enterprises Ltd., sold 16.5 percent shareholding in the media major to financial investors.

How Markets Fared

Indian equity indices ended marginally higher this week.

The S&P BSE Sensex ended little changed at 40,359 and the NSE Nifty 50 rose 0.16 percent during the period to close at 11,914.

Six out of 11 sectoral gauges compiled by National Stock Exchange ended higher, led by the NSE Nifty Media Index’s 9.9 percent advance. The NSE Nifty IT Index was the top sectoral loser, down 2.1 percent.

How The Broader Markets Performed

The broader markets represented by the NSE Nifty 500 Index rose 0.12 percent this week, led by the rally in Vodafone Idea Ltd., UCO Bank and Network18 Media & Investments Ltd.

How The Currencies Performed

The Indian rupee depreciated 0.7 percent this week to end at 71.71 against the U.S. dollar. The home currency was the second-worst performer this week among Asian peers.

Big Talking Points This Week:

• Why now is a good time to start worrying about a U.S.-China trade deal.
• RBI appoints committee to advise On DHFL insolvency proceedings.
• Trump-blocked witnesses loom large in impeachment drama.
• GST revenue loss: states complain centre hasn’t paid compensation.
• The world may have a bigger problem than a potential recession.
• Insurers grab 60% of foreign fund inflows in October.
• Tesla truck demo goes awry as shatterproof windows break.
• Hong Kong’s wealthy aren’t giving up on the city just yet.

Key Events To Watch Next Week

• Nov. 29: India to report third quarter GDP data. The analysts tracked by Blomberg expect a growth of 4.6 percent during the period.
• Nov. 29: India to report fiscal deficit data for October.
• Nov. 29: India to report Eight Infrastructure Industries data for October.