According to a report by Swiss Re, India is likely to become the 6th largest insurance market in the world in next 10 years. Total insurance premiums are expected to grow at a CAGR of 14% in next 10 years.
India is currently the 10th largest insurance market in the world. Swiss Re also expects life premiums in India to cross $100 billion for the first time in 2022. It expects the non-life insurance business in India to grow by 8% CAGR over the next 10 years. Global insurance premiums are expected to touch $7 trillion in 2022.
It almost looked like poetic justice. After replacing Shree Cements as the second largest cement company in India by installed capacity, Adani Enterprises will now replace Shree Cements on the Nifty. This change will be effective 30th September. This was decided at the periodic review by Index Maintenance Sub-Committee of the NSE. Among other indices, ATGL, BEL, HAL and IRCTC will be included in the Nifty Next-50 Index. Lupin, PNB, SAIL and Zydus Lifesciences will exit Nifty Next-50 Index from 30th September.
A day after the GDP growth for Q1FY23 came in lower than expected at just 13.5%, there have been a slew of full year GDP downgrades. Moody’s Investors Service cut India’s GDP growth projection for 2022 from 8.8% to 7.7%. Moody’s has blamed rising interest rates, uneven monsoon and slowing global growth for dampening growth momentum in India. That would be much slower than the 8.3% growth achieved in calendar 2021. Moody’s expects the RBI to remain reasonably hawkish with focus on curbing inflation.
India’s services exports for July 2022 were up an impressive 20.2% yoy at $23.26 billion. The services trade date is released by the RBI with a lag of one month, unlike the merchandise trade data that is released by the Ministry of Commerce. However, the services exports are sequentially lower compared to June 2022. For July 2022, the imports of services were also up 22.3% yoy at $13.92 billion resulting in a services trade surplus of $9.34 billion. Indian economy counts on services trade to narrow the
merchandise trade deficit.
Global majors like Arcelor Mittal, Brookfield and Canadian Pension Fund are among more than 12 entities interested in buying a stake in NTPC Green Energy, a 100% subsidiary of state-owned NTPC Ltd.
The expressions of interest (EOI) were for the sale of 5-10% stake in NGEL, the green energy unit of NTPC. NTPC expects to raise Rs2,000 crore. This should offer a good basis for the IPO of NGEL that is expected to happen in FY24. NTPC plans to raise up to Rs15,000 crore from asset monetization over next 3 years.
GST collections for August 2022 was up 28% yoy at Rs1.43 trillion. This is the sixth month in a row that GST collections have stayed above Rs1.40 trillion. The driving factors were better compliance, revival in consumption and elevated inflation. However, the GST collections were marginally lower on sequential basis. Out of the total GST collections, Rs24,710 crore was central GST, Rs30,951 crore was state GST, Rs.77,782 crore was integrated GST (IGST0. The IGST included Rs42,067 crore collected on import of goods.
RRPR Holdings, the promoter of NDTV, informed VCPL that that its holdings in NDTV had been attached provisionally by the Income Tax authorities and would require their approval for transfer. However, the Adani group has dismissed the argument as being misconceived and misleading. Adani group has alleged that this letter was written by RRPR Holdings to delay the warrant conversion process. Adani contended that the attachment does not prevent the transfer in exercise of warrants. The last word is still awaited.
It is interesting that despite the fiasco in its debt funds in April 2020, Franklin Templeton Mutual Fund seems to have a lot of investors interested in its recently launched Balanced Advantage Fund (BAF) NFO.
It has collected close to Rs800 crore from the NFO till date. Even Mirae, which had recently launched a BAF, got collections of Rs746 crore. Franklin subscriptions largely came through mutual fund distributors. Franklin BAF will keep majority of its equity allocation in large caps and higher rated debt for debt portion.