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To help our learners/subscribers with what has happened in the market last week, we have started an initiative of sharing a BLOG every Saturday.
This will help them keep updated with the news of the market and make good decisions in the market.
1. NIFTY reached a record high: On expected lines, the Nifty50 hit a fresh record high of 15,455.55 in morning trade on May 28 with banks, metals and energy counters the lead gainers.
The BSE Sensex is still about 1,000 points below its all-time high level of 52,516.76 that it hit on February 16, 2021. Market analysts believe the 30-share pack may make a fresh peak in the coming week.
2. SEBI new Margin rule to be implemented on 1st June’21:. As per SEBI’s Peak Margin norms, starting June 1st 2021, traders are expected to have 75% of the peak margin available with the broker i.e intraday leverage provided for Equity Cash and F&O Intraday would be 1.33X going forward. There is no change in Equity Cash Delivery or F&O Overnight margins
This is part of the phased adoption over the next 3 months each and full adoption is expected to happen by September 1, 2021.
Phase 3 (Jun-Aug) – In the third phase, SEBI has said that the client should have 75% of the peak margin.
Phase 4 (Sep onwards) – By Sep 2021, clients should have 100% of the peak margin obligation available with the broker during the day
3. BSE Hits Record $3-Trillion Market-Capitalization for the First Time Ever: The combined market capitalisation of BSE-listed firms crossed the coveted $3-trillion mark for the first time on Monday. This is a remarkable feat, considering it had slipped below $1.5 trillion in March 2020 at the peak of the Covid-induced sell-off
4.RDIF and Panacea Biotec launch the production of Sputnik V in India: Full-scale production of the vaccine is expected to start this summer, RDIF and Panacea Biotec said in a joint statement. As announced in April, RDIF and Panacea have agreed to produce 100 million doses per year of Sputnik V
5.India attracted the highest-ever FDI inflow of $81.72 billion during FY2020-21: The ministry of commerce announced that FY21 had highest-ever total of FDI inflow of $81.72 billion
6.Banks’ gross NPAs to fall in FY21 on restructuring, write-offs and economic resilience: CARE Ratings: Gross non-performing assets (NPAs) are expected to decline in FY21 due to restructuring of accounts, loan write-offs and resilience in the economy, CARE Ratings said in a report on May 25. The rating agency expects the quantum of NPAs to fall to Rs 7.9 lakh crore at the end of FY21 from Rs 8.9 lakh crore in FY20.
Several regulatory and government support schemes helped borrowers access liquidity and conserve their cash flows during the year, the rating agency said. These schemes included the moratorium on loan repayments for six months till August 30, 2020, the COVID-related restructuring scheme for large corporates till December 31, 2020, and for micro, small and medium enterprises (MSMEs) till March 31, 2021.
7.RBI Annual Report: Stress tests indicate banks have sufficient capital even in the severe scenario: Stress tests indicate that Indian banks have sufficient capital at the aggregate level even in a severe stress scenario, the Reserve Bank of India (RBI) said in its annual report on May 27, 2021.
Bank-wise as well as system-wide supervisory stress testing provide clues for a forward-looking identification of vulnerable areas, the RBI said in the report.
With the lifting of the interim stay on asset classification standstill by the Supreme Court on March 23, 2021 banks’ asset quality will need to be closely monitored in coming quarters, with preparedness for higher provisioning, the RBI said.
8. Banks in India report loan fraud worth Rs 5 trillion, SBI's amount largest. Banks operating in India reported fraud of Rs 4.92 trillion as of March 31, 2021, which represents nearly 4.5% of the total bank credit, showed Reserve Bank of India (RBI) data. State Bank of India – the country’s largest lender – reported the highest amount of loans as fraud - Rs 78,072 crore as of March 31, 2021. SBI is followed by Punjab National Bank (Rs 39,733)
9. RBI expresses concern about India’s equity market 'bubble'. The Central Bank in its annual report 2020-21 said that that magnitude asset price inflation in the country given the estimated 8% contraction in GDP in 2020-21 poses the risk of a bubble.
10. Paytm could launch its ₹21,000 crores ($3 billion) initial public offering (IPO) later this year. If successful, this will be the biggest IPO for a company in India, beating the ₹10,000 crores Coal India IPO from 2010.
11. Rupee surges 18 paise to 72.42 against US dollar in early trade on Friday. The Indian rupee strengthened by 18 paise to 72.42 against the US dollar in early trade on Friday tracking positive domestic equities.
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