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RBI's Surprise Move

Government revenue reaches record highs as April months GST collection reaches 2 Lakh crore.

Godrej Group: A Family Affair

Godrej Family picture
The Godrej Group is currently in the process of restructuring its business operations through a family settlement, which will result in the division of its extensive business interests into two separate entities.

    The restructuring will lead to the creation of two distinct factions within the group. One faction, under the leadership of Adi Godrej and Nadir Godrej, will oversee the listed companies of the Godrej Group, such as Godrej Consumer Products, Godrej Properties, Godrej Industries, Godrej Agrovet, and Astec Lifesciences. The other faction, led by Jamshyd Godrej and Smita Godrej, will have full control over Godrej & Boyce, a closely-held company engaged in various sectors including appliances, aerospace, locking solutions, and construction.

    Pirojsha, Adi Godrej's son, is set to succeed Nadir Godrej as the chairperson of the Godrej Industries Group in August 2026. The restructuring aims to streamline operations and focus on leveraging core strengths in engineering and design-led innovation across various business sectors.

    The restructuring raises questions regarding the division of real estate assets, particularly those held by Godrej & Boyce. Given that Godrej Properties has been involved in developing some of the land owned by Godrej & Boyce, there is a need for a clear agreement on the management of these assets between the two factions.

This restructuring initiative within the Godrej Group signifies a strategic effort to reorganize ownership and responsibilities within the family, ensuring a seamless transition and future growth for the conglomerate.


India Targets USD 1 Trillion in Exports by 2030

India's export sectors
The Indian government is set to prioritize the development of e-commerce export hubs as part of its 100-day agenda for the new administration. These hubs are envisioned to bolster India's exports by leveraging online platforms and digital trade channels.

    The Directorate General of Foreign Trade (DGFT), a division of the Ministry of Commerce and Industry, is collaborating with the Reserve Bank of India (RBI) and other relevant ministries, including the Finance Ministry, to implement measures that promote exports through e-commerce.

    The proposed e-commerce export hubs are designed to function as bonded zones, providing a range of services to facilitate cross-border e-commerce trade. These services include export clearances, warehousing, customs clearance, returns processing, labeling, testing, and repackaging.

    India's cross-border e-commerce market is projected to reach a staggering USD 2 trillion by 2030, with the potential for e-commerce exports to account for USD 350 billion during the same period. However, the sector currently faces challenges, such as banking issues and operational costs, which hinder its growth.

Nonetheless, the government's focus on developing e-commerce export hubs is a strategic move to leverage the immense potential of digital trade and contribute to India's ambitious goal of achieving USD 1 trillion in merchandise exports by 2030.


Simplifying NRIs Investment Journey

The recent regulatory adjustments by the Securities and Exchange Board of India (SEBI) have significantly eased the investment landscape for Non-Resident Indians (NRIs) looking to participate in the Indian securities market. Notably, SEBI's decision to permit foreign portfolio investors (FPIs) based in International Financial Services Centres (IFSCs) to accept a higher volume of investments from NRIs and Overseas Citizens of India (OCIs) is poised to catalyze the onshoring of India-focused offshore public market funds within IFSCs. 

    This move is expected to enhance the accessibility and attractiveness of the Indian market to NRIs, potentially fostering increased capital inflows and market participation.

    Furthermore, SEBI's approval of simplified norms for passive schemes of domestic mutual funds represents a significant stride towards enhancing investment opportunities for NRIs. By allowing exposure to securities of group companies of the sponsor, mutual funds can now more effectively replicate underlying indices, which were previously constrained by a 25% cap on investments in group companies.

    This adjustment not only broadens the investment avenues available to NRIs but also enhances the efficiency and accuracy of passive investment strategies, aligning with global best practices and bolstering the appeal of Indian securities to a wider investor base.

    In addition to facilitating investment avenues, SEBI's emphasis on transparency and disclosure requirements for FPIs with NRI and OCI clients underscores a commitment to robust regulatory oversight. Mandating detailed disclosures, including PAN cards and economic interests of investors, aims to enhance transparency and accountability within the investment ecosystem. 

Moreover, the focus on preventing market abuse through enhanced surveillance systems and internal controls by asset management companies (AMCs) signifies a proactive approach towards safeguarding investor interests and maintaining market integrity. These measures collectively contribute to a more investor-friendly environment, fostering trust and confidence among NRIs seeking to engage with the Indian securities market.


Breaking Records: GST Revenue Hits ₹2.10 Lakh Crore

GST April Collection
In April 2024, the Gross Goods and Services Tax (GST) collections in India reached an all-time high of ₹2.10 lakh crore, showcasing a remarkable 12.4% increase compared to the same period last year. This surge can be attributed to a strong rise in both domestic transactions, which saw a growth of 13.4%, and imports, which increased by 8.3%. After factoring in refunds, the net GST revenue for April 2024 amounted to ₹1.92 lakh crore, reflecting an impressive 15.5% expansion year-on-year.

A detailed breakdown of the GST collections for April 2024 reveals the following figures:
- Central Goods and Services Tax (CGST) collections stood at ₹43,846 crore.
- State Goods and Services Tax (SGST) collections amounted to ₹53,538 crore.
- Integrated Goods and Services Tax (IGST) collections reached ₹99,623 crore, including
₹37,826 crore collected from imported goods.
- Cess collections totaled ₹13,260 crore, with ₹1,008 crore originating from imported
goods.

Furthermore, in terms of inter-governmental settlements, during April 2024, the central government disbursed ₹50,307 crore to CGST and ₹41,600 crore to SGST from the IGST pool. Consequently, this resulted in a total revenue of ₹94,153 crore for CGST and ₹95,138 crore for SGST for April 2024, post regular settlement.

The robust growth in GST collections signifies a positive trend in the country's economic activities, driven by increased consumption and trade, both domestically and internationally. This surge is indicative of a buoyant economy, demonstrating resilience and stability amidst evolving global dynamics.


Rs 40,000 Crore Buyback

RBI logo
The Reserve Bank of India (RBI), India's central bank, has announced a substantial government securities buyback program worth Rs 40,000 crore (approximately $4.8 billion). This unexpected move by the RBI aims to alleviate the tight liquidity conditions currently prevailing in the country's banking system, as well as reduce the yields on short-term government bonds.

    The specific securities included in this buyback operation are three that are set to mature within the next six to nine months: the 6.18% 2024 paper, the 9.15% 2024 paper, and the 6.89% 2025 paper. The auction for these securities is scheduled to take place on May 9, 2024, with the settlement occurring the following day on May 10, 2024.

    Buybacks of this nature serve to inject much-needed liquidity into the banking system, which is particularly beneficial for banks as they are major holders of government bonds. In its role as the government's debt manager, the RBI provides strategic advice on decisions involving buybacks and bond switches to help maintain stable liquidity conditions within the banking system.

    This proactive move by the RBI underscores its commitment to stabilizing the Indian economy and preventing significant fluctuations in liquidity that could have a detrimental impact on borrowing costs across various sectors. The anticipated reduction in yields on short-term government bonds is expected to subsequently lower the cost of borrowing for companies, as corporate borrowing is heavily influenced by government bond yields.

By taking this unexpected yet timely action, the RBI is demonstrating its vigilance in monitoring market conditions and its willingness to implement measures that can help alleviate liquidity constraints and maintain financial stability in the economy. This buyback program is a testament to the central bank's role as a key steward of India's economic well-being.


Quick View 

ICICI Bank Q4 results: Increase in net profit by 19.19% YoY and there is an increase in sales by 23.72% YoY.

Nestle India Q4 results: Net profit for Q4 FY24 stood at Rs 934 crore, up 26.73% compared to Rs 737 crore in the corresponding quarter of FY23.

UltraTech cement's Q4 results: Net profit for Q4 FY24 increased by 36% YoY to Rs 2,258 crore, from Rs 1,670 crore reported in the Q4 FY23.

KPIT Technologies Q4 results: The company saw a 29.53% YoY revenue surge and a 47.27%YoY profit increase, reflecting robust financial growth.

Birlasoft Q4 results: 11.1% YoY growth in its revenue, alongside a significant 60.55% YoY increase in profit.

Indian Oil Corporation(IOC): The Board of Directors of IOC has proposed a year-end dividend of ₹7.00 per equity share with a face value of ₹10 for the fiscal year 2023-24.

Adani Green Energy: Adani Green energy gets $400 million loan from international banks for 750 MW Power Projects.

Fed Rates: Federal Reserve Maintains Rates unchanged Amid Concerns Over Inflation Progress.

Mahindra & Mahindra: Shares of Mahindra & Mahindra surged by over 4% on Tuesday, reaching an unprecedented peak of Rs 2,152.15, driven by the launch of their new compact SUV, the XUV 3XO.

Bajaj Finance: The RBI has lifted the restrictions on Bajaj Finance eCOM Insta EMI Cards with immediate effect.

Shriram Housing Finance Q4 Results: A notable increase in net profit, surging by 67% year-over-year to Rs 62 crore.

ICICI Prudential: They have received a GST order along with penalties totaling Rs 835 crore from Maharashtra's State Tax department.

Indian Oil Corporation (IOC): IOC is investing Rs 5,215 crore to construct 1 GW of renewable energy capacity in India, emphasizing solar, wind, and hybrid projects.




Happy Investing😊

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