Business & Investment

ET Markets Morning Podcast: SPAC is coming to India. What is included for you?

Good morning.

>> Rising interest rates on IPO funding can ruin the party
>> Debt fund investors are looking at big losses after the new Sebilule
>> Special purpose company
Coming to India, regulators create a format
>> Under redemption pressure, stock funds dump good stocks

Hello. Welcome to ETMarkets Morning. This is a show about money, business and markets. This is Sundeep Shin.

Let’s take a quick look at the market situation.

Daral Street heads for rangebound trading on Friday as Nifty futures traded flat on the Singapore Exchange at 7am (IST), despite other Asian markets appearing to be booming. It looked like there was. With the passage of Washington’s $ 1.9 trillion stimulus, stronger risk appetite has pushed the US stock market to record highs overnight. The Dow rose 0.5%, the S & P500 rose 1%, and the Nasdaq rose 2.52%. In currencies, the dollar soared near a week-long low, while Bitcoin rose within another all-time high. Risk-on-mood benefited oil, with WTI crude trading at around $ 66 a barrel.

That said, this is what else makes the news.

SPACS or special purpose acquisition company
I’m coming to India soon. Two government regulators, Sevi and its corresponding GIFT city in Gujarat, IFSCA, are on track to accelerate the launch of a special purpose acquisition company in India. SPAC is established with the explicit purpose of acquiring one or more companies, but at the time of establishment, the entity does not disclose the name of the target. Recently, SPAC-like structures have become popular in developed markets. Investors other than the ones who founded them are also commonly referred to as “blank check companies” because they do not know which acquisitions or assets they are investing in until SPAC bids.

Many IPOs are set up to be content with choices in key markets. But if you need to borrow to bid on these issues, there’s bad news. Investor borrowing costs to punt IPOs are expected to skyrocket as the surge in problems is likely to boost funding demand. Five IPOs, including Anupam Rasayan, Laxmi Organic, Craftsman Automation, Kalyan Jewelers and Suryoday Small Finance Bank, will begin subscriptions over the next week, raising around Rs 4,500. According to brokers, higher funding costs have reduced the gray market premium for future problems. According to brokers, interest rates borrowed to invest in these IPOs could rise by at least 200 basis points from the current 7-8% level.

Bond fund investors are shocked as the scheme of holding perpetual bonds looks at losses on Friday with new valuations for commodities that could cause a sharp sellout. Money managers could pose a crisis if debt scheme redemption accelerates, as investment trusts are forced to dump such securities, yields skyrocket, and banks are expensive to borrow money from the market. Said there is. They also say experienced investors could jump into a fight to wrap up a bond that was beaten in the turmoil. On Wednesday, Sebi called on mutual funds to value perpetual bonds as 100-year from April.

Mutual funds continued to reduce their holdings of various high-quality stocks in February as continued redemption pressure prompted fund managers to offload liquid stocks. According to Edelweiss Alternative Research, the mutual fund offloaded Bertie Airtel’s shares worth Rs 2,800, HDFC Bank’s Rs 1,700, Rs 1,500 and Rs 1,400 HDFC. Meanwhile, they bought shares in NTPC and IndusInd Bank for a range of 700 rupees each. At Larsen & Tubro, he was a buyer worth Rs 650 during the month.

Finally…

Tax collectors are chasing Benami’s transactions. As the various government departments began sharing data with each other, the income tax department began tracking Benami’s assets, or real estate assets purchased under a pseudonym or pseudonym. The tax department has begun to notify the owners of many such “Benami” properties, which appears to be the trigger after a data analysis-based investigation, the ET reported this morning.

Well, before we go, let’s take a look at some of the busiest stocks this morning …

Private-equity major KKR is bidding on majority control of Vini Cosmetics, rating the Foggu deodorant maker at 8,500 chlores.

At least two existing foreign investors in PNB Housing Finance, The Carlyle Group and General Atlantic (GA) Singapore, are believed to have hired consultants to perform due diligence on mortgage lenders.

M & M is understood to be licensed by the RBI and expedite the sales process to reduce ownership of Korean car maker SsangYong Motor.

Consumer goods maker Havel’s India announced Thursday that it will cover the cost of COVID-19 vaccination for all direct and indirect employees in India.

SBI will hold an electronic auction of 12 bad accounts this month to collect more than Rs 506 rupees sold to the asset reconstruction company Mechanism.

Also check out over 20 recommended stocks for today’s trading from top analysts on ETMarkets.com.

That’s it for now. Stay with us for all market news throughout the day. Happy investment!



ET Markets Morning Podcast: SPAC is coming to India. What is included for you?

https://economictimes.indiatimes.com/markets/stocks/etmarkets-podcast/etmarkets-morning-podcast-spacs-are-coming-to-india-whats-in-it-for-you/podcast/81460099.cms ET Markets Morning Podcast: SPAC is coming to India. What is included for you?

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