1) Rakesh Jhunjhunwala churns his portfolio
Ace investor Rakesh Jhunjhunwala has increased stake in eight small & midcap names in the June quarter. He has trimmed his stake in two companies, according to the AceEquity data.
He has increased stake in Dishman Carbogen Amcis, Rallis India,Jubilant Life sciences and Firstsource Solutions.
Jhunjhunwala decreased his stake in two companies- Agro Tech Foods, and Lupin- so far in the June quarter.
He held stake constant in 14 companies as of data collated on July 24 that include names like Autoline Industries, CRISIL, GMR Infrastructure, MCX, Titan Company, VIP Industries, GMR Infrastructure and Fortis Healthcare.
2) Divestment process under the fast lane:
Finance Minister Nirmala Sitharaman confirmed that the government is working on the stake sale process of about 23 public sector companies. The divestment has already been cleared by the Cabinet.
For FY 2020-21 fiscal, the government has set a disinvestment target of Rs 2.10 lakh crore. Of this, Rs 1.20 lakh crore will come from disinvestment of public sector undertakings and another Rs 90,000 crore from stake sale in financial institutions.
3) Governor advises the banks to beef up:
RBI Governor Shaktikanta Das advised banks to proactively raise capital as the risk of bad loans is soaring due to the coronavirus crisis.
The banking system is expected to see a fresh wave of NPAs once the moratorium period gets over post-August 31.
As per the latest Financial Stability Report (FSR) released by the Reserve Bank, gross non-performing assets of all banks may jump to 12.5% by the end of this fiscal under the baseline scenario, from 8.5% in March 2020.