Things we are reading today – May 10th, 2024 – Good reads – beragampengetahuan – Beragampengetahuan

Foreign institutional investors (FIIs) have been selling off Indian equities amid concerns surrounding the ongoing election season. They’ve shed over $2 billion in the first week of May, continuing a trend seen in major world markets. This selling is attributed to uncertainty around election outcomes and potential market instability.

Analysts suggest FIIs may be preemptively adjusting their positions to navigate potential market downturns. The Sensex and Nifty have seen slight declines since May, while Midcap and Smallcap indices have experienced larger drops.

Analysts highlight concerns over lower voter turnout and doubts about the expected electoral outcome, with implications for market performance. Exit polls and the final election results will be key factors influencing market movements in the coming weeks.

In a recent post-result analyst conference call, SBI Chairman Khara highlighted challenges faced by listed entities like ICICI Securities and discussed SBI’s decision to halt the listing of its mutual fund arm despite upbeat Q4FY24 performance.

SBI’s net profit rose 24% YoY to Rs 20,698 crore, with net interest income up 3.1% YoY to Rs 41,656 crore. Khara emphasized the importance of knowledge capital over financial capital in businesses like asset management.

SBI had initially planned to raise $1 billion through the mutual fund subsidiary’s listing but later shelved the plans due to sufficient capitalization.

JPMorgan Chase & Co. is set to include India in its emerging market debt index from June, with positive feedback from clients and estimates of $20-25 billion in foreign inflows. The move follows reforms by the Indian government to improve market accessibility and streamline processes for foreign investors.

Despite initial apprehensions due to documentation complexities, Indian assets have seen significant inflows since the announcement. The inclusion is expected to further boost Indian assets and improve market tradability for foreign investors.

RBI has lifted its restriction on Bank of Baroda’s digital banking application, ‘BoB World,’ allowing the bank to resume onboarding customers through the app. The restriction was imposed in October 2023 due to supervisory concerns.

Bank of Baroda has since implemented corrective measures, including the resignation of its Chief Digital Officer, to address the issues highlighted by the RBI. Media reports in July 2023 had alleged tampering with customer accounts within the application.