Indian Financial Markets Bulletin \

$Indian Financial Markets Bulletin \$

Embassy of India ``` Kuwait 15 Jan 2021 Volume ``01 February 2021 Indian Financial markets bulletin Monetary Policy at a Glance Looking for a haven in this emerging Policy Rates/Ratios As on 31 Jan 2021 market turmoil?? Bank Rate\ 4.25% Repo Rate 4.00% Try IndIa….. Reverse Repo Rate 3.35% India has been projected to record the highest annual CRR 3% Percentage Real GDP growth rate compared with SLR 18%

(Source: RBI) other major world economies by International

Monetary FUND (IMF).

The Macro Picture

(Figures in USD) Latest World Economic Outlook Growth

Indicators 2018-19 2019-20 % Projection s Change ESTIMATE PROJECTIONS GDP 1.96 tn. 2.05 tn. 3.89% (real GDP, annual percentage 2020 2021 2022 Exports 476.22 bn 314.31 bn -34% change) PMI Index 49.6 52 4.83% World Output Inflation 3.4 4.8 41.17% –3.5 5.5 4.2 (CPI Advanced Economies –4.9 4.3 3.1 Index) United States –3.4 5.1 2.5 (Source: RBI, DGCIS, STATISTA) Euro Area –7.2 4.2 3.6 Indian Equity Markets Germany –5.4 3.5 3.1 France –9.0 5.5 4.1 Market Indices As on 31 Jan 2021 Italy –9.2 3.0 3.6 Sensex 46,285.77 Spain –11.1 5.9 4.7 Nifty 13,634.60 Japan –5.1 3.1 2.4 (Source: BSE, NSE) United Kingdom –10.0 4.5 5.0

Canada –5.5 3.6 4.1 Indian Debt Markets Emerging Market and –2.4 6.3 5.0 Govt. Securities As on 31 Developing Economies Market Jan 2021 China 2.3 8.1 5.6 91 day T-Bills 3.37% India –8.0 11.5 6.8 182 day T-Bills 3.59% Emerging and Developing –2.8 4.0 3.9 364 day T-Bills 3.73% Europe 5.09% GS 2022 4.07% Russia –3.6 3.0 3.9 3.96% GS 2022 4.24% Brazil –4.5 3.6 2.6 5.22% GS 2025 5.45% Mexico –8.5 4.3 2.5 5.15% GS 2025 5.58% Saudi Arabia –3.9 2.6 4.0 5.77% GS 2030 6.12% Source: International Monetary Fund (IMF), World Economic Outlook, January 5.85% GS 2030 6.07% 2021 Update (Source: RBI)

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Indian Financial Markets Bulletin is a compilation of news items from various media sources. The purpose is to promote in Kuwait various positive news about India that have appeared in media during the month.

Embassy of India ``` Kuwait 15 Jan 2021 Volume ``01 February 2021

IndIa as an InvesTmenT Haven ConTInues……. Markets at an All-Time High Record Breaking FDI Inflows in India

A Sharp V Shaped recovery post the Covid-19 impact during FY 2020-21. on the back of strong confidence in Indian markets India witnessed a 13% rise in foreign direct from Domestic & Foreign Investors. investment (FDI) to $57 billion in 2020 compared to the previous year. The domestic figure was boosted Market Movement by investments in the digital economy.

BSE NSE Multi Year UPWARD Trend in FDI Inflows 60000 Continues 40000 India has seen consistent increase in FDI Inflows over 20000 the last 8 years 0 Oct-19 Jan-20 Apr-20 July-20 Oct-20 Jan-21 Equity FDI Inflows (Source @ Data: BSE, NSE) (in US$ billion) IndIa’s equity market recovery 51.7 60 45.5 45.1 amongst the best in the world 41.1 44.7 31.9 40 25.3 The Equity market hit new highs in its rally in 22.9 December 2020, lifted by increasing evidence that the 20 recovery is gaining traction and supported by positive 0 global cues in the form of the passage of the US stimulus package and the Brexit trade deal. Market exuberance led to Indian equities outpacing most global-peers. (Source: RBI) EquityyyMarket Recovery from Lows Institutional investments record a Recorded in 2020 sharp rebound in 2020 UK 29.4 China 30.6 A massive rebound in the October-December quarter Malaysia 33.4 (in %) helped improve the quantum of institutional Indonesia 51.8 Phillipines 54.4 investments in 2020 that reached 92.6 per cent of Russia 55.7 the investments made during a year before. Germany 62.5 Japan 65.8 Foreign Reserves rise to $590 bn USA 67.9 India 83.8 As at end-January 2021, reserves touched an all- Brazil 87.2 South Korea 97.1 time high of US$ 590.015 billion, equivalent to 18.8 months of imports or 105.9 per cent of outstanding 0 50 100 150 external debt as at end-September 2020. (Source: Bloomberg)

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Embassy of India ``` Kuwait 15 Jan 2021 Volume ``01 February 2021

Key Highlights of Budget 2021-22 Logistics firm eBikeGo raises pre-Series A funding FDI cap in the insurance sector raised from 49% to 74% . eBikeGo, an electric vehicle-based last-mile logistics firm, has raised $1.5 million in a pre-Series A fundraising exercise. Fiscal deficit pegged at 9.5% for 2020-21 and Mumbai-based eBikeGo has raised this capital from a number of 6.8% for 2021-22. new and existing domestic and foreign individuals. eBikeGo also

Aims to spend US$ 26.98 billion on various PLI partners with franchisee owners, non-banking financial (Production Linked Initiatives) Schemes over companies (NBFCs) and original equipment manufacturers the next five years, in addition to US$ 5.61 (OEMs) through asset leasing models. billion announced earlier. SaaS startup Hiver secures $4 million in debt

Proposes To CreaTe an ’asseT resTruCTurIng funding Co.’ To IdenTIfy and ConsolIdaTe bad asseTs

and get it ready for realization Software-as-a-Service (SaaS) startup Hiver has raised $4 million in debt funding from Mars Growth Capital, a Singapore-based  Govt. to set-up Development Financial joint debt fund launched by MUFG Bank -- Mitsubishi UFJ Institution (DFI), capitalized with US$ 2.74 Financial’s core banking unit -- and Liquidity Capital. The billion and Expected to create a lending company’s solution is used by more than 1,500 companies to portfolio of at least INR 5 trillion within 3 manage customer communication right inside Gmail. years.

 Infosys to invest $1 mn more on drone maker Aims to spend US$ 15.750 billion for Railways, ideaForge privatizing airports. Infosys will invest $1 million in Mumbai-based drone startup Divestment target for FY22 at US$ 23.975 ideaForge Technology. The fresh tranche of capital is aimed at billion. meeting the working capital needs of the UAV (unmanned aerial vehicle) system manufacturer as well as boosting its R&D, sales, BUDGET AT A GLANCE marketing, and business development activities.

US stock trading platform for Indians Vested Finance raises $3.6 million

Vested Finance has raised $3.6 million in a seed funding round from Moving Capital, Ovo Fund and TenOneTen Ventures in the

United States, and Inflection Point Ventures and Venture Catalysts in India. The company, which enables India-based investors to invest in the US stock market without any commission. To facilitate Indian investors to invest in US markets, Vested has partnered with over 25 brokers, fintech,

and wealth management firms in India, including Axis Securities, Kuvera, Angel Broking and 5Paisa. It has also partnered with global digital trading technology platform Drive- Wealth to power its offerings. (Source: PIB Delhi)

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For regular updates follow us on Twitter: @indembkwt, @IndianIbn and @Indian_IPN `` Indian Financial Markets Bulletin is a compilation of news items from various media sources. The purpose is to promote in Kuwait various positive news about India that have appeared in media during the month.

Embassy of India ``` Kuwait 15 Jan 2021 Volume ``01 February 2021

Tata Group to buy majority stake in BigBasket for $1.3 bn

Tata Group will buy a 68% stake in online grocery startup BigBasket for about $1.31 billion. Bengaluru-based BigBasket competes with Walmart Inc-owned Flipkart and Amazon's "Fresh" service as more consumers stay indoors and choose to shop online during the COVID-19 pandemic.

Eternis acquires UK-based aroma chemicals manufacturer

Eternis Fine Chemicals Ltd, a Mumbai-based aromatic compounds manufacturer, has fully acquired a United Kingdom- based speciality chemicals co. Apart from the acquisition of Leek, Staffordshire-based Tennants Fine Chemicals Ltd, Eternis has also bought the company’s wholly-owned subsidiaries in Singapore and China from Tennants Consolidated Ltd. The acquisition will help Eternis and Tennants Fine Chemicals complement each other’s offerings, as well as leverage aspects such as their multi-location manufacturing and distribution platforms.

Tesla to set up electric car manufacturing unit in india

The U.S. firm Tesla will be opening an electric car manufacturing unit in Karnataka. India has been keen to reduce its oil dependence and cut down on pollution. To boost investment, India plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities.

Amazon partners with Foxconn arm to manufacture devices in India

Amazon is set to start its first device manufacturing line in India later this year. The retail giant has partnered with contract manufacturer Cloud Network Technology, a subsidiary of Taiwan-based electronics firm Foxconn, to begin production of Amazon Fire TV Stick devices in Chennai. Amazon is committed to partner with the Indian government to advance the vision of an Aatmanirbhar Bharat. It plans to invest $1 billion to digitize 10 million small and medium businesses, help Indian businesses sell worldwide thereby enabling $10 billion in cumulative exports, and create an additional 1 million jobs by 2025. new developmenT bank To InvesT In nIIf’s fund of funds

New Development Bank (formerly Brics Development Bank) has committed $100 million (Rs 727.6 crore) to the Fund of Funds managed by National Investment and Infrastructure Fund Limited (NIIF). New Development Bank joins other investors in the fund of funds: the government of India, Asian Infrastructure Investment Bank and Asian Development Bank (ADB). NIIF, a quasi-sovereign investment platform for international and Indian investors focused on infrastructure, private equity and other strategically enabling investments, manages over $4.5 billion of equity capital commitments across three funds – master fund, fund of funds and strategic opportunities fund.

ICICI Bank launches online platform for foreign firms to expand business in India

ICICI Bank launched an online platform to enable foreign companies to establish or expand business in India. The platform termed as ‘Infinite India’ will provide banking solutions, as well as value-added facilities to customers. The Platform offers value-added services such as Incorporation of a business entity, corporate filings, licenses and registrations, HR Services, Compliance and Taxation. The initiative is part of the bank’s strategy to further strengthen technology-enabled offerings to partner with foreign companies coming to India.

For more information, please visit our website www.indembkwt.gov.in

`` For regular updates follow us on Twitter: @indembkwt, @IndianIbn and @Indian_IPN Indian Financial Markets Bulletin is a compilation of news items from various media sources. The purpose is to promote in Kuwait various positive news about India that have appeared in media during the month.