QBiz: Sensex Closes at Lifetime High; UK Issues Visa Restrictions
The Quint’s compilation of business news from dailies across India.
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1. UK Visa Restrictions Will Hit 30,000 Indian Techies
After losing their prospects of working in the US, Indian software professionals – at least 30,000 of them – will be impacted by the UK government’s move to impose restrictions on work visas, including discontinuing the short-term visa category.
The short-term visa was primarily being used by Indian IT services companies to send young engineers to work on projects in the UK. These work visas, termed as Tier 2 under the sub-category of short-term staff, will not be issued from Thursday.
According to Nasscom, there are about 30,000 Indians working in the UK under the Tier 2 short-term visa category. Once the existing visa expires, it will not get renewed.
(Source: The Hindu, Business Line)
2. Sensex Breaches 30,000; Closes at Lifetime High
The BSE Sensex crossed the 30,000 mark for the first time in about two years, as the Indian equity markets went up for a consecutive session. The Sensex gained 64 points, or 0.2 per cent, during the session to end at 29,974.2, while the NSE’s Nifty closed at 9,265 – 27.3 points, or 0.3 per cent – higher. Both indices closed at new lifetime highs.
The broader markets outperformed, with the small-cap index climbing 1.1 per cent and the mid-cap index rising 0.46 per cent.
The overall breadth of the market remained positive, with shares of 1,987 companies registering gains, against declines posted by 936 companies.
(Source: Business Standard)
3. Lloyd's, World's Largest Re-Insurance Marketplace, Opens India Branch
Lloyd’s of London became the first foreign re-insurer to enter the Indian market as it opened a branch in Mumbai.
Lloyd’s India will act as a domestic re-insurance branch of Lloyd’s of London, a company statement said. It will focus on infrastructure, agriculture and disaster management re-insurance, the statement said. Shankar Garigiparthy will lead the domestic operations as chief executive offer and country manager.
The company has signed up MS Amlin as an underwriter, while more insurers registered with Lloyd’s are expected to join. The number of such managing agents entering the onshore Indian market through Lloyd’s will be in “low single figure” in the first year or two of operations, said John Frederick Nelson, chairman of Lloyd’s of London in an interview to BloombergQuint.
(Source: BloombergQuint)
4. SoftBank Needs Consent of Two Major Jasper Infotech Shareholders for Snapdeal-Flipkart Merger
The consent of at least two major Jasper Infotech shareholders will be required for SoftBank to push through the sale of the company to rival ecommerce venture Flipkart, according to people familiar with the developments.
As per the shareholder agreements, three out of the four major stakeholders – SoftBank Group Corp, early backers Kalaari Capital and Nexus Venture Partners, and promoters Kunal Bahl and Rohit Bansal – who control six of the seven seats on the company's board, will need to approve the merger of Snapdeal with Flipkart.
SoftBank's stake in Jasper stands at about 33%, while Kalaari and Nexus own about 8% and 10%, respectively.
(Source: The Economic Times)
5. UTI MF on Road to Go Public with SBI Nod
The initial public offering (IPO) of the UTI Mutual Fund (UTI MF) – the first by a domestic asset management company (AMC) – could soon be a reality, with key stakeholders, including the State Bank of India (SBI), finally coming on the same page.
The listing plan of the country’s sixth-largest fund house had hit a block, with the SBI and the Life Insurance Corporation of India (LIC) trying to wrest control over the AMC. Other stakeholders – the Bank of Baroda (BoB), the Punjab National Bank (PNB) and the T Rowe Price Group – had no qualms with the IPO.
The LIC has reportedly given a conditional nod for the IPO.
(Source: Business Standard)
6. Facebook's WhatsApp Is Getting Into Digital Payments in India
Facebook Inc’s WhatsApp is getting into digital payments in India, a first for a global messaging service that’s only just begun to explore ways to generate revenue.
It’s chosen to kick off that maiden effort in India, a market dominated by Alibaba-backed digital payments leader Paytm, but where WhatsApp’s 200 million users outnumber any other country.
WhatsApp wants to “contribute more to India’s vision for digital commerce,” it said in a statement Wednesday. The company also advertised on its website for a “Digital Transactions Lead, India” to be based in Menlo Park, California, but with an ability to understand local financial standards such as India’s digital-ID program Aadhaar and its banking payments interface.
(Source: BloombergQuint)
7. Anil Agarwal Plans to Bring Anglo American's Business to India
Vedanta Resources Plc’s founder and group chairman Anil Agarwal plans to leverage his association with Anglo American Plc to persuade the British miner to set up businesses ranging from fertiliser production to diamond mining in India.
Vedanta Resources also plans to spend $10 billion over the next three years across its businesses, of which $8 billion is earmarked for Indian operations, Agarwal said in an interview on the sidelines of the Global Natural Resources Conclave organised by Network18 and the Confederation of Indian Industry.
In March, Agarwal announced the planned purchase of about 13% of Anglo American’s stock in an investment by his holding company Volcan Investments Ltd, making him the second-largest shareholder in the $26 billion company.
(Source: Livemint)
8. RBI Likely To Keep Rates Steady; Focus On Managing Liquidity
The Reserve Bank of India (RBI) is likely to hold interest rates steady while trying to keep a tight leash on liquidity in a bid to ensure that inflation stays under control, said economists in a poll conducted by BloombergQuint.
Each of the 10 economists polled said that the central bank will leave the benchmark repo rate unchanged at the upcoming monetary policy review on Thursday, 6 April. This is in keeping with the central bank’s neutral stance on monetary policy. At its last review in February, the RBI surprised the markets by leaving rates unchanged and shifting its stance from accommodative to neutral as it feared that inflation may pick up during the course of this year.
(Source: BloombergQuint)
9. SC Order on Liquor Sale Is Giving Restaurateurs and Investors the Jitters
The Supreme Court just crashed AD Singh's party. On the road to raise a fresh round of private equity money, one of India's top restauranteurs faces a new reality — no liquor can be served in some of his flagship gastropubs that are on national and state highways.
"At least four of my restaurants are on the highways and, under the three-year gestation period typically required to break even, these will become totally unviable without alcohol," he said. "Decisions like these affect the viability of businesses overnight and adversely impact entrepreneurship and investor confidence."
(Source: The Economic Times)
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