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ETMarkets Morning Podcast: India poised for rapid growth in ultra HNIs

Read more at economictimes.indiatimes.com

Good Morning.

>> Economists call for fuel tax cut to rein in inflation
>> PM aims to raise Rs 2.5 lakh cr from PSU share sale this year
>> India poised for rapid growth in ultra HNI population in next 5 years
>> Dalal Street seeing aggressively rollover bullish bets

Hi there. Welcome to ETMarkets Morning, the show about money, business and markets. I am Sandeep Singh.

Let’s start with a quick glance on the state of the markets.

Dalal Street looked set for a solid bounce today. Nifty futures traded 214 points higher in Singapore at 7 am. Other Asian markets also rose, on encouraging vaccine news and soothing comments on inflation from Fed Chairman Jerome Powell. US stocks bounced overnight. Dow set a record high and the Nasdaq regained its footing. The dollar has hit a fresh three-year low against the pound and commodity-linked currencies. Crude oil has climbed to a fresh 13-month high. Gold is struggling to gain traction.

That said, here’s what else is making news?

The number of ultra-high net worth individuals — those with a net worth of $30 million or more — is rising rapidly. Knight Frank’s latest Wealth Report showed that the elite club is expected to grow at one of the fastest rates in the country at 63% between 2020 and 2025 from 6,884 to 11,198. Currently, there are 190,085 such people globally, whose numbers are expected to climb 27% in the same period.

Well, good news definitely! May this tribe expand!

India appears to have left the recessionary phase far behind. Two of the eight high-frequency indicators tracked by Bloomberg News improved last month, signalling that the economy is ready to leave a sharp downturn behind in the New Year, as business and consumer activity gathered momentum in January. The January reading pointed to a solid start to the new quarter, building on nascent gains seen in the October-December period.

No wonder, the stock market is gung-ho even amid multiple worries.

Traders on Dalal Street aggressively rolled over bullish bets into the March series in the extended two-hour trading session on Wednesday, after a four-hour shutdown of trading on NSE earlier in the day. The sharp surge in the market in the after-hour trading was led by private lenders, which soared on the government decision to let private bank do government businesses. According to analysts, that pushed market participants to carry forward their wagers ahead of Thursday’s expiry of the February F&O contracts.

Do they signal a gainful month ahead in March? Well, you never know.

The Prime Minister wants to mop up some Rs 2.5 lakh crore from PSU share sale this year. He said on Wednesday that the planned privatisation of state-run enterprises will help free up resources for spending on welfare and development, empower citizens and create jobs. The PM said reforms of his government are aimed at ensuring that public money is spent judiciously to benefit the poor.

His speech was seen as a response to critics of the new policies unveiled in the Budget.

Economists are batting for a cut in fuel taxes, which they feel are inflating retail prices, and say India may require non-monetary measures to rein in inflation from rising oil prices. Prices of crude oil in India during January-February were lower than the comparable period a year ago. But retail prices, on an average, have gone up 20-25% on high domestic excise taxes. In mid-February, the retail petrol price was 2.8 times the base price of oil.

Osamu Suzuki has decided to hang up his boots! The 91-year-old chairman of Suzuki Motor Corp announced that he will retire in June, stepping aside in favour of his son Toshihiro Suzuki to take over the reins of the Japanese automaker. Suzuki’s retirement comes at a time when the traditional car industry is in the throes of a major technological upheaval.

We will wait and watch how the GenNext steers the auto giant from here on.

NOW Before I go, here is a look at some of the stocks buzzing this morning…

Bharti Airtel raised about $1.25 billion overseas via two sets of global papers — perpetual and vanilla bonds. The sale received bids worth over $2.5 billion.

Max Life said the insurance regulator has approved a 12% stake purchase in the life insurance company by Axis Bank and its subsidiaries — Axis Capital and Axis Securities

Sebi has given a conditional exemption to a Tata Sons subsidiary from making an open offer to public shareholders of Tata Communications in which the government plans to divest its 26% stake.

ReNew Power, founded by Sumant Sinha, son of former Indian FM Yashwant Sinha, is going for a US listing through a merger with the Nasdaq-listed blank-check firm RMG Acquisition Corporation II.

Private equity group Carlyle has emerged as the sole bidder to acquire Blackstone-owned Mphasis, in what would be the largest buyout in the Indian information technology industry

Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.

That’s it for now. Stay put with us for all the market news through the day. Happy investing!

Read more at economictimes.indiatimes.com

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