FMCGs see sustaining demand :
The FMCG industry recorded a growth of 7.3% in the December quarter as per a Nielsen Survey report.
Rural India which has been doing well since the lockdown, continued its good run. Rural demand grew in double-digits during the quarter. The metros has also started to recover with the working population rejoining the workforce.
The survey report suggests that consumption has sustained in post-festival months as well. Traditional as well as organized trade (Modern Trade and E-commerce) have shown good traction during this period. Despite this recovery, the FMCG Industry had value degrowth of 2% in 2020.
PSB privatization:
An ICRA report suggests that the Indian Government could raise nearly Rs 28,600 crores if it makes a complete exit in the Bank of India and Indian Overseas Bank.
This report is in line with the government's plan to privatize at least two public sector banks in FY22. The government currently holds 95.8% in IOB and 89.1% in BOI.
The government has set a target of fetching Rs 1.75 lakh crore through its divestment program in FY22. PSB privatization a part of that target.
ICRA's estimate is based on an assumption that the government will make a complete exit from these two banks. But, we believe it is too early to make such estimates. No official announcement has been made on this matter. And, all the names being discussed are under the realm of speculation.
Tailwinds in the Telecom industry :
As per India Ratings & Research report, the Indian Telecom industry is witnessing a clear turnaround.
The report sees continued revenue growth for the industry-led by the higher ARPUs. Reliance Jio and Bharti Airtel are strong;y placed. But, financially-weaker Vi's (Vodafone’s) earnings are hampered by its declining user base.
The industry is witnessing positive trends as competitive intensity is reduced between the leading players. While Airtel and Reliance Jio are seeing constant growth in user base and ARPU, VI continues to remain a laggard due to its weak financial condition.
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