NBFCs: The health of India’s shadow banks remained resilient in August, suggesting that record stimulus steps by the nation’s authorities are helping the crisis-hit sector ride out the pandemic, Bloomberg reported. Premiums on non-bank lenders’ bonds narrowed to a two-year low, according to an index of AAA rated five-year notes. Liquidity and share performance also remained steady from the previous month.
IDBI Bank: Life Insurance Corporation of India (LIC) is planning a gradual sale of its 51% stake in IDBI Bank, three people aware of the matter said, nearly two years after it rescued the lender at the Centre’s instance. In January 2019, India’s largest insurer bought 44% stake in IDBI Bank for ₹21,624 crore, saving it from collapse.
Bank stocks: Despite fears of defaults and end of the moratorium period, private banks were strong favourites among fund managers in August after hitting a 22-month low in July, while net outflow from equity schemes surged to a 10-year high, data for India’s top 20 mutual fund houses showed. Weightage of private banks in mutual fund schemes rose 110 bps sequentially to 17.3% in August.
AstraZeneca Pharma: Parent AstraZeneca Plc’s covid-19 vaccine study remains on hold in the U.S. pending a regulatory review of an incident in which a U.K. study participant became ill, federal officials said. The British drugmaker and its partner, the University of Oxford, put research on hold last week after the volunteer suffered neurological symptoms. Trials resumed in the U.K. over the weekend and restarted in South Africa on Tuesday.
Pfizer Ltd: Researchers monitoring Pfizer Inc.’s giant trial of an experimental Covid-19 vaccine have reported no safety problems even after more than 12,000 people received their second of two doses.
Aurobindo Pharma: Hyderabad-based Aurobindo Pharmaceuticals is gearing up to develop and manufacture multiple Covid-19 vaccine candidates, Business Standard reported. It has taken help from the Department of Biotechnology (DBT) for its own vaccine candidate and has also tied up with the Council of Scientific and Industrial Research (CSIR) for the multiple vaccine candidates the latter is developing.
Auto stocks: Cheered by the gradual uptick in retail sales from June, India’s automakers expect passenger vehicles and two-wheelers sales to improve during the festival season but rising cases of covid-19 pose a challenge, said senior executives of automobile manufacturing companies at CMO Dialogues, a webinar held by Mint on Tuesday.
SpiceJet Ltd: No-frills carrier SpiceJet Limited on Tuesday reported a consolidated loss of ₹600.52 crore for the June quarter, primarily due to muted travel demand following the coronavirus outbreak. The airline had reported a profit of ₹262.89 crore during the same period of the previous year.
M&M: Mahindra and Mahindra’s overseas subsidiary SsangYong Motor was close to signing a binding investment agreement with US-based HAAH Automotive Holdings, the Economic Times has reported citing Korean media. Mahindra had earlier announced that it will not make any further investments in the ailing SUV-maker and wanted to give up its controlling stake.
Trade: India reported a trade deficit of $6.77 billion in goods in August, data released by the government showed on Tuesday. The trade deficit was $4.83 billion in July. Merchandise imports contracted 26.04% in August to $29.47 billion from a year ago while exports fell 12.66% to $22.70 billion.
CAMS IPO: The initial public offering (IPO) of Computer Age Management Services (CAMS) has been upsized 50% to allow NSE to divest its stake, Business Standard reported. Earlier, the mutual fund transfer agency was looking to offload 12.16 million shares, or a 25% stake, through the IPO. ICAMS IPO will now comprise 18.2 million shares — nearly 36% of the equity base.