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India Capital
Market Opportunities

 

  A robust roadmap of a self-reliant India  

 

In an unprecedented global health crisis, numerous countries across the globe witnessed nationwide lockdowns, slowdown in economic activity and market volatility. India also faced a similar situation as COVID-19 cases rose across the country. However, to combat the economic impact of the virus the Government launched the Aatmanirbhar Bharat Abhiyan.

 

Under the aegis of the vision of a self-reliant India, an array of targeted & focused economic reforms were introduced. India started seeing a recovery with NIFTY reaching a level of over 10,029 points on June 4, 2020 from closing at a low of 7,610 points on March 23, 2020. The reforms included reduction in key lending rates by the Reserve Bank of India, extension in moratorium for loan repayments, and a relief package to support daily wage earners and healthcare workers. Thus, creating numerous avenues for investors to leverage the opportunities arising out of the economic reforms.

 
 
 
 

 
Policy Tracker
 

Special Economic Package of USD 265 Bn announced; ~10% of India’s GDP

  Announcements under the package relate to businesses, agriculture, migrant workers, aviation, defence, energy, housing, social sector, and other fiscal reforms.
 

Repo rate reduced from 4.4% to 4%; Reverse repo rate from 3.75% to 3.35% Policy repo rate reduced from 4% to 3.75%

  The marginal standing facility and bank rate were reduced from 4.65% to 4.25%. The Reserve Bank of India maintained its accommodative policy stance.
 

USD 6.5 Bn Special Liquidity Facility for Mutual Funds

  Aimed at easing liquidity strains on mutual funds (MFs) owing to redemption pressure, the funds will be used by banks for meeting liquidity requirements of MFs by: (i) extending loans, or (ii) purchasing repos against collateral.
 

All India Financial Institutions to be refinanced with UDD 6.5 Bn

  Institutions such as NABARD, SIDBI, and NHB, which play a critical role in extending long-term credit, were facing difficulties in raising resources from the market.
 
 
 
  Macro Outlook  
 
  GDP growth over corresponding quarter (Year-on-Year)  
 
 
  Consumer Price Index  
  (Year-on-Year)  
 
 
  Purchasing Managers Index  
 
 
  Growth in IIP  
  (Year-on-Year)  
 
 
  Source: Ministry of Statistics and Programme Implementation; IHS Markit.  
 
 
 
Recent News
 

Yes Bank hires six investment banks for USD 1.3 Bn fundraise via share sale
 

Power Grid to file draft papers for USD 1 Bn InvIT
 

Mahindra & Mahindra rallies 6% as board to consider fund raising plan
 

Drops in BSE sensitive index is temporary, and each dip provides investors with the opportunity to enter the market and earn a higher return
 

Select capital market players allowed to use Aadhaar authentication of clients
 

Agricultural commodity bourse, NCDEX, receives SEBI approval to launch the USD 65.8 Mn IPO
 

Reliance Industries rights issue closes, subscribed 1.59 times
 

SEBI extends regulatory approval validity for IPO, rights issue by 6 months from date of expiry
 
 

  Sector Overview  
 
 

  Personal Protective Equipment (PPE) in India:
An INR 7000 crore industry in the making
 

  The COVID-19 pandemic is an unprecedented global health crisis that the world is currently facing. The onset of the virus, however, also led to a boom in certain industries such as PPE manufacturing. To leverage this opportunity and ensure safety of India’s front line workers, the Ministry of Textiles undertook an in-depth assessment of the availability of protective gear. What followed this, was a remarkable journey of collaboration between the Government at the centre and state levels, industries and workers, to revamp existing production lines to manufacture a completely unknown product, from scratch. From zero, India now produces nearly 4.5 lakh PPE kits every day. In 60 days, the PPE industry in India has witnessed 56x growth- and is an opportune sunrise industry for investors to start their New India investment journey.  
 
 
READ MORE
 
 
 
 

 
Contact Us

Financial Investors Initiative is a team set up with the objective of facilitating greater allocation of capital to India by Limited Partners and increased deployment by General Partners. The team works with investors to identify investment opportunities, undertake policy advocacy, and facilitate resolution of issues at different stages of investment.

contact [email protected]
 


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New Delhi, Delhi 110011

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