COVID-19 impact on retailers, FTSE on Indian bonds, what next on Tata vs Mistry: Three things Teji Mandi investors should know on March 30, 2021
File Image

Plight of retailers:

Just when the sentiments were normalizing, a surge in covid wave has put the entire recovery process in jeopardy.

Among the worst hits are the Indian retailers. The sales of retail stores have once again started to falter with the return of night curfews.

During the months of lockdown, online channels managed to outperform offline stores. And, if the second covid wave continues to pick up, a similar trend is likely to repeat this time around too.

FTSE likely to include Indian government bonds:

FTSE has placed Indian bond markets on the watchlist for possible inclusion in its index.

FTSE is currently studying the market structure and investors’ experience. It will continue with this exercise before its next review in September 2021. Apart from India, the FTSE has also kept Saudi Arabian government bond markets on its watchlist for possible inclusion.

FTSE's statement has come as a testimony to India's efforts to liberalize its sovereign bond market. A place in FTSE will improve the accessibility of the local market for global investors. And ensure greater foreign investment in India's debt program. It will further impose greater fiscal discipline on government finances.

Tata vs Mistry: What next?

The battle between the Tata Sons and Mistry group is again slotted to shift from the courtroom to the boardroom with Supreme Court not interfering in the compensation-related issue,

Chief Justice SA Bobde even asked both the two parties to take the route under Article 75, to decide on the issue. The Shapoorji Pallonji (SP) group holds 18.3% stake in Tata Sons.

As the situation stands, Tata Sons are holding all the cards in this battle. Article 75 of the Tata Sons' Articles of Association gives Tata Sons the first right of refusal. Once the SP Group makes the offer, the board of Tata Sons will then take a call.

Mistrys will also be at the mercy of Tata Sons while arriving at the valuation of its stake. Tatas had earlier valued the 18.3% stake in the range of Rs 70,000 crore as against Rs 1.75 lakh crore, demanded by the SP Group.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal