Snapping their three-month buying spree, overseas investors turned net sellers in Indian markets in September due to uncertainty ahead of the US presidential polls and surging coronavirus cases.

Foreign investors withdrew ₹3,419 crore on net basis from Indian markets in September, according to depositories data. A net of ₹7,783 crore was withdrawn from equities while the debt segment saw inflows of ₹4,364 crore.

Foreign portfolio investors (FPI) adopted a cautious stance ahead of the US presidential election and renewed fears due to rising Covid-19 cases, among others, experts said.

FPIs had been net buyers in Indian markets in the three straight months to August. They had invested ₹46,532 crore in August, ₹3,301 crore in July and ₹24,053 crore in June on net basis.

Profit booking

“FPIs have turned cautious ahead of the US presidential election. Also, renewed fears of re-emergence and surge in coronavirus cases across countries have raised concerns

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The Government has informed the Supreme Court that loans up to ₹2 crore taken by individuals and Micro, Small and Medium Enterprises (MSMEs) will be eligible for waiver of compound interest during the six-month moratorium period, i.e., March-August 2020.

In other words, these borrowers will not have to pay interest on interest. During the period of moratorium, interest accrued in case of equated monthly instalment (EMI) deferred becomes a part of principal and then interest calculated on the larger base. This compound interest is basically interest on interest.

“The Union of India has decided to continue with the tradition of handholding the small borrowers. The Government, therefore, has decided that the relief in waiver of compound interest during the six-month moratorium period shall be limited to the most vulnerable category of borrowers,” the affidavit submitted by the Centre dated October 2 said. Now the apex court will hear a bunch

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Reliance Retail Ventures Ltd (RRVL), which has been on a fund-raising spree since September 9, has raised a total of Rs 32,197.50 crore from global investors in lieu of a 7.28 per cent stake. Mostly, the investments came in at a pre-money equity value of Rs 4.285-lakh crore.

 

The latest tranche came in late last night, with RRVL, a subsidiary of Asia’s richest man Mukesh Ambani-controlled Reliance Industries Ltd (RIL), raising Rs 7,350 crore in two back-to-back deals.

 

On Friday night, RRVL raised Rs 1,837.5 crore from TPG in lieu of a 0.41 per cent stake, which was immediately preceded by a Rs 5,512.5-crore funding from GIC in exchange for a 1.22 per cent stake.

Read the story: TPG will invest ₹ 1,837.5 crore into Reliance Retail

Read the story: Reliance Retail raises Rs 5,512.5 crore from GIC

Prior to this, RRVL, raised Rs 6,247.5 crore from Abu Dhabi-based Mubadala

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Eight of the top 10 valued firms witnessed a combined erosion of Rs 1,57,277.53 crore in market valuation last week, with Reliance Industries Limited (RIL) emerging as the biggest laggard.

Last week, the Sensex lost 1,457.16 points or 3.83 per cent.

Only Infosys and HCL Technologies emerged as gainers among the most valued firms.

The market valuation of RIL tumbled Rs 70,189.95 crore to Rs 14,88,797.82 crore.

Bharti Airtel’s market capitalisation tanked Rs 31,096.67 crore to Rs 2,39,880.86 crore and that of ICICI Bank plummeted by Rs 14,752.95 crore to reach Rs 2,40,329.93 crore.

The market valuation of HDFC declined by Rs 12,737.66 crore to Rs 2,96,339.09 crore and that of Tata Consultancy Services (TCS) dived Rs 10,675.53 crore to reach Rs 9,08,940.15 crore.

HDFC Bank witnessed an erosion of Rs 7,286.42 crore to Rs 5,74,614.23 crore and Kotak Mahindra Bank Rs 5,710.01 crore to Rs 2,47,292.12 crore.

Hindustan Unilever

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Foreign Portfolio Investors (FPI) have pulled out Rs 476 crore on net basis so far from Indian markets in September, reflecting a cautious stance by participants amid fears of resurgence of coronavirus cases in Europe and other countries.

According to depositories data, FPIs have withdrawn a net Rs 4,016 crore from equities and invested a net sum of Rs 3,540 crore in debt instruments during September 1-25 — a net outflow of Rs 476 crore.

FPIs remained net buyers for three consecutive months — June-August.

They had invested Rs 46,532 crore in August, Rs 3,301 crore in July and Rs 24,053 crore in June on net basis.

“The renewed fears of re-emergence and surge in coronavirus cases in Europe and other countries have raised concerns about the possibility of fresh lockdowns being imposed in infected regions, which would have prompted FPIs to adopt a cautious stance,” said Himanshu Srivastava, associate

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Seven of the top 10 most valued domestic companies saw a combined erosion of Rs 59,259.58 crore in their market valuation last week, with Hindustan Unilever, HDFC Bank and Kotak Mahindra Bank emerging as major laggards.

The seven firms clocking losses in their market capitalisation (m-cap) were Hindustan Unilever (HUL), HDFC Bank, Kotak Mahindra Bank, Reliance Industries, HDFC, ITC and ICICI Bank.

In contrast, Tata Consultancy Services (TCS), Infosys and Bharti Airtel saw gains in their valuation for the trading week closed on Friday.

HUL’s m-cap plummeted Rs 14,320.54 crore to Rs 4,93,007.39 crore, HDFC Bank’s valuation tumbled Rs 11,611.6 crore to Rs 5,81,900.65 crore and Kotak Mahindra Bank’s market worth tanked Rs 10,205.11 crore to Rs 2,53,002.13 crore.

The market cap of RIL eroded by Rs 9,027.32 crore to Rs 15,58,987.77 crore and that of HDFC declined Rs 8,144.93 crore to Rs 3,09,076.75 crore.

ITC’s valuation fell by Rs

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The Finance Ministry, on Sunday, said banks have sanctioned loans worth over ₹1.63 lakh crore to more than 42 lakh business units under the ₹3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector.

On the disbursement front, however, over ₹1.18 lakh crore doled out to 25 lakh MSME units, till September 10, which were hit by the Covid-19 pandemic and ensuing lockdowns. The scheme is the biggest fiscal component of the ₹20-lakh crore Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May to mitigate the distress by providing credit to different sectors, especially micro, small and medium enterprises (MSMEs).

As of September 10, as reported by public sector banks (PSBs) and top 23 private sector banks, “additional credit amounting to ₹1,63,226.49 crore has been sanctioned to 42,01,576 borrowers”, the Ministry said in a statement. “Amount of ₹1,18,138.64 crore has been disbursed to 25,01,999 borrowers,”

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Foreign portfolio investors (FPI) turned net sellers in Indian markets by pulling out Rs 2,038 crore so far in September as participants turned cautious in view of rising Indo-China tensions and weak global cues.

According to the depositories data, a net Rs 3,510 crore was withdrawn from equities, while Rs 1,472 crore was pumped into debts by FPIs between September 1-11.

FPIs were net buyers for three consecutive months — June to August.

They invested Rs 46,532 crore in August, Rs 3,301 crore in July and Rs 24,053 crore in June on a net basis.

“FPIs adopted a cautious stance towards investing in the Indian equity markets since the beginning of September,” Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, noted.

Citing the reasons, Srivastava said the sharp slowdown in the Indian economy during the quarter ended June 2020 dented investor sentiments and FPIs preferred to stay on the

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Four of the 10 most valued Indian firms added ₹3,01,847.99 crore to their market capitalisation last week, led by Reliance Industries which surpassed the ₹15 lakh crore mark in valuation.

RIL, India’s most valued firm, added a whopping ₹2,51,067.2 crore to its market valuation that stood at ₹15,68,015.09 crore on Friday.

Shares of Reliance Industries were in the limelight last week amid media reports that it has offered a 40 per cent stake in its retail arm worth about USD 20 billion to Amazon.com, which the company said was speculative.

Also, on Wednesday, it was announced that US private equity firm Silver Lake Partners would buy 1.75 per cent stake in RIL’s retail arm for ₹7,500 crore.

Tata Consultancy Services, Hindustan Unilever Limited and Infosys were the other gainers in the coveted list of most valued firms last week. HDFC Bank, HDFC, Bharti Airtel, Kotak Mahindra Bank, ICICI Bank and

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Despite all the challenges over the last six months, the IT industry in the state has managed to smoothly transition to work from home and is fulfilling all the commitment to their global customers apart from increasing the export growth of Tamil Nadu, a senior government official said on Saturday.

“I am very glad to inform you that we have shown Rs. 25,000 crore exports in the last 2 quarters of this financial year which is actually more than last year’s exports during these two quarters,” said. Sanjay Tyagi, Director, Software Technology Parks of India (STPI).

“So this is something which is phenomenal and the ICT have actually enabled the IT industry to operate from the home and the transition was very smooth,” he added.

He was delivering a special address at a virtual curtain raiser event for ‘CONNECT 2020’, the 19th edition of the premier annual conference and exhibition

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