Issue: 1331
·
India's business activity strengthened in September. The HSBC
Flash Composite PMI rose to 56.5 from 54.3 in August.
·
Fitch Ratings has raised its forecast for India's FY27
economic growth from 6.4% to 6.9%.
·
Reliance to raise Rs 10,000 crore next week as companies rush
to tap surplus bank liquidity.
·
Credit card spending falls 2.8% in August as new card
additions slow.
·
UPI fee could recover up to Rs 15,000 crore annually while
keeping most transactions free.
India continues diesel
exports amid global uncertainty: India has overtaken Russia as a major diesel
supplier during the year, according to data cited by Moneycontrol from Kpler. India
accounts for approximately 10% of global diesel shipments. The development is
particularly significant amid uncertainty surrounding potential US restrictions
affecting international fuel trade.
(Moneycontrol)
Rupee Falls to Rs.95.96 as
Crude Oil and US Bond Yields Rise: The Indian rupee weakened 0.2%
to Rs.95.96 per US dollar on 24 September, its lowest level in a week, amid
rising crude oil prices, higher US Treasury yields and concerns over global
inflation and interest rates. State-run banks were reported to have sold
dollars, likely on behalf of the RBI, limiting the rupee's decline. The
benchmark 10-year government bond yield also climbed six basis points to 7.11%.
(Business Standard)
Crude Oil Surge Creates
Fresh Inflation and Currency Concerns: Brent crude moved above $103 a
barrel amid continuing West Asia tensions, while the US dollar strengthened and
Treasury yields climbed. The combination has increased pressure on India's
import bill and the rupee, while also raising concerns about imported inflation
and the future trajectory of global interest rates.
(Financial Express)
Government to Finalise
Second-Half Borrowing Calendar: The government is expected to
finalise its borrowing programme for October–March on 25 September. India has
planned gross borrowing of Rs.16.09 trillion for FY2026-27 and had raised Rs.7.79
trillion by the time of the first-half borrowing programme. Market participants
are closely watching the proposed mix of short-, medium- and long-term
government securities because additional bond supply could influence yields and
borrowing costs.
(Reuters)
Morgan Stanley rushes to
contain fallout as leaked list exposes over 100 Asia deals: Morgan Stanley raced to contain
the damage from a leaked deal list as clients sought explanations and at least
two regulators began assessing the potential fallout. The leak has gripped Asia’s
investment banking industry this week after one of Morgan Stanley’s top bankers
accidentally sent an email to some clients containing a list of more than 100
deals the Wall Street firm was working on and monitoring. Morgan Stanley held
urgent meetings with some private equity firms to apologize and assure
executives the bank would work to mitigate the fallout, people familiar with
the matter said, asking not to be named discussing private information.
(Moneycontrol)
IRDAI’s major reform agenda
to force distributors to completely rethink business models, can impact
earnings of banks: While insurance regulator
Insurance Regulatory and Development Authority of India (IRDAI) has proposed a
major reform in distribution norms by sharply cutting commission payouts across
products to bring down distribution costs and benefit customers, the steep cut
could make insurance distribution unviable, forcing distributors to completely
rethink their business models. The proposed changes could also have
implications for banks. As bancassurance commissions constitute an important
source of fee income for many banks, particularly private sector banks, any
reduction in commission payouts could therefore affect earnings from this
business.
(Business Line)
Sebi opens PMS-MF route
with Rs 25-lakh entry ticket: The SEBI has unveiled a new
mutual fund-focused route that sits between conventional mutual funds and
portfolio management services (PMS) – PMS-MF – with a lower entry ticket of Rs
25 lakh. The minimum investment at Rs 25
lakh is half the Rs 50-lakh threshold applicable to conventional PMS. This
opens up portfolio management to a wider pool of affluent investors. Called the
Portfolio Managers Route for Investing in Mutual Fund Units (PRIM), the
framework will allow portfolio managers to invest clients’ money in direct
plans of mutual funds, including index funds and exchange-traded funds (ETFs),
as well as specialised investment funds (SIFs) offered by Indian asset
management companies. Sebi has also prescribed a 25%
ceiling on investments in schemes managed by an asset management company
affiliated with the portfolio manager, aimed at limiting concentration and potential
conflicts of interest. Portfolio managers offering PRIM can charge a fixed
management fee of up to 1% of a client’s assets, while performance-linked fees
will also be permitted.
(Financial Express)
Irdai commission curbs
spark sharp selloff in insurers, banks and NBFCs: Shares of insurers, banks, and
non-banking finance companies dropped sharply following proposed commission
caps by Irdai. The proposals raised concerns over the outlook for businesses
reliant on insurance distribution. Major companies such as PB Fintech and Max
Financial Services experienced significant declines. Analysts indicate that
banks and NBFCs could face negative impacts from the changes in commission structures.
(Economic Times)
Axis Bank readies major
customer-connect initiative to mark World Tourism Day: In an initiative to mark World
Tourism Day, Axis Bank it set to engage more than 5,000 customers and recognise
around 1,000 entrepreneurs and businesses as part of a nationwide outreach
programme for the tourism and hospitality sector, the private sector lender
said on September. The bank is organising a
tourism and hospitality-focused edition of its flagship MSME knowledge-sharing
platform, Evolve, in Goa, news agency PTI reported.
(Economic Times)
PSBs lead among UPI
senders, private banks top receivers: NPCI’s MD & CEO Dilip Asbe
recently said that the proposed merchant discount rate (MDR) would fund a
sustainable Unified Payments Interface (UPI) ecosystem, with the money flowing
to the banks and platforms that power UPI. An NPCI circular detailing this
split shows remitter banks will get the largest share of the revenue charged on
person-to-merchant transactions above Rs.2,000, once it takes effect from
October 15, 2026. Public sector banks (PSBs) dominate as remitters, with State
Bank of India (SBI) accounting for 28 per cent of UPI transactions initiated,
followed by Bank of Baroda (BoB) at 7.5 per cent. However, private banks lead
on the beneficiary or merchant side, with Yes Bank receiving 41 per cent of UPI
transactions, followed by Axis Bank at a little over 10 per cent. By volume,
UPI accounted for 87 per cent of digital-payment transactions as of July 2026,
but just 10 per cent of transaction value, while Real Time Gross Settlement
(RTGS) accounted for 70 per cent of value on just 0.1 per cent of volume.
(Business Standard)
NSE becomes Asia's second
most-valued stock exchange, m-cap at $46.89 billion: National Stock Exchange of India Ltd (NSE) on
Thursday commanded a market capitalisation of $46.89 billion at dollar-rupee
exchange of Rs 95.96, making it the second-most valued listed stock exchange in
Asia. Hong Kong Exchanges & Clearing Ltd stayed Asia's most-valued exchange
at $63.59 billion. The Chicago-based CME Group Inc, which operates a
derivatives exchange trading futures contracts and options on futures across
interest rates, stock indices and commodities, including Brent, is the
most-valued exchange so far, with a market capitalisation of $97.37 billion,
Bloomberg data showed.
(Business Today)
PhonePe bets on merchant
push as MDR returns: PhonePe will hire more than 20,000 frontline sales
personnel on its own rolls and deploy over 5 million payment devices over the
next 12 months as it steps up merchant expansion across India, particularly in
smaller towns and rural areas, following the introduction of MDR on specified
UPI transactions. Around 50% of the devices, which include SmartSpeakers and
point-of-sale (PoS) machines, will be placed in rural India, including tier-6
towns, the company said in a statement on Thursday. The new sales force will
sign up merchants in smaller towns and villages, complete their KYC, install
payment devices and provide ongoing support.
(Financial Express)
Adani Group to invest over Rs.1
trillion across sectors in West Bengal: Adani Group on Thursday outlined an investment
of more than Rs.1 trillion by 2035 across ports, logistics, energy, roads,
green cement, and data centres, as Chairman Gautam Adani described the state as
the conglomerate’s “karmabhoomi in the East”. “At Adani Group, infrastructure is at the heart of
what we do. And no place in India has West Bengal’s extraordinary combination
of geography, talent, and economic potential,” Adani said. West Bengal, he
said, is the natural maritime and logistics bridge connecting India’s
industrial heartland and the Northeast with the Bay of Bengal, adding that it
was best positioned to connect with maritime trade routes to Southeast Asia and
beyond.
(Business Standard)
SEBI approves new PMS
framework; portfolio managers can invest in IPOs, foreign securities and direct
mutual funds:
SEBI has
approved a new regulatory framework for Portfolio Managers. The new SEBI
(Portfolio Managers) Regulations, 2026 replace the earlier 2020 framework. Under
the new framework, portfolio managers will get greater flexibility in deploying
clients' money. The permitted investment avenues include IPOs, foreign
securities and primary debt issuances. The framework also provides a route for
investment in direct mutual fund plans.The move is intended to modernise the
PMS regulatory framework and broaden the investment opportunities available to
professionally managed portfolios.
(Moneycontrol)
Centre expects all states
to publish labour code rules by October 31: The Central government expects all states and
Union Territories (UTs) to publish rules for the new labour codes by October 31
for them to take effect, Labour Secretary Chandra Bhushan Kumar said on
Thursday. Barring one state, all other states and UTs have pre-published the
rules where they invited suggestions and feedback from stakeholders, Kumar
said. So far, 10 states and UTs have published the final rules, Kumar said at a
seminar on the new labour codes organised by the PHD Chamber of Commerce. While
Kumar did not name the state yet to pre-publish the rules, he said the Union
labour ministry is discussing the issues with the state, which should be
resolved soon.
(Financial Express)
InvITs, Reits combined AUM
seen doubling to Rs.20 trillion by FY31: Icra: Ratings agency Icra expects
the combined assets under management (AUM) of infrastructure investment trusts
(InvITs) and real estate investment trusts (Reits) to double to around Rs 20
trillion by fiscal year 2031 (FY31) from approximately Rs 10 trillion in FY26,
reflecting a compound annual growth rate (CAGR) of around 15 per cent. Icra
expects InvITs’ AUM to increase to around Rs 13.5 trillion by FY31 from Rs 7
trillion as of FY26 and Reits’ AUM to around Rs 6.5 trillion from Rs 3.1
trillion.The next phase of expansion is expected to be supported by continued
monetisation of road and transmission assets, scaling up of renewable energy
and fibre platforms, increasing penetration of Reits in commercial real estate,
and the emergence of warehousing and data centres as new growth avenues.
(Business Standard)
ECONOMIC MOAT
§
An
economic moat represents a company's sustainable competitive advantage that
protects its profitability and market position from competitors over an
extended period. Such advantages can arise from strong brands, patents,
regulatory barriers, network effects, switching costs, cost advantages or
significant economies of scale.
§ For example, a company with strong network effects
may become more valuable as more customers use its platform, making it
difficult for new competitors to attract users. An economic moat is different
from temporary competitive success because it focuses on the durability of the
advantage and the company's ability to maintain returns above its cost of
capital over time.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 95.9099
INR
/ 1 GBP : 127.0295
INR
/ 1 EUR : 109.1912
INR
/100 JPY: 60.6200
EQUITY INDEX
Sensex:
73580.54 (-1247.71)
NIFTY:
23063.10 (-383.70)
Bnk NIFTY: 55438.50 (-1110.40)
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