By Abhiruchi Ranjan
In the midst of a currency crisis, Qatar has come to the rescue of Turkey by allotting $15 billion in funds to Turkish financial markets to become sturdy. In other news, Jeff Bezos is aggressively vying for the top place in the Indian retail market. Here are a few business stories you may have missed last week.
Qatar’s $15 billion investment to aid Turkey
Amid the Turkish lira crisis and severing commercial and political ties with NATO ally US, Turkey breathed a sigh of relief when Qatar pledged to channel $15 billion into the distressed nation’s banks and financial markets. The investment decision comes immediately after Qatar’s Emir Tamim bin Hamad Al-Thani met with President Tayyip Erdogan in Ankara on August 15. The lira strengthened post the Qatar investment announcement to 5.8699 from 6.04 to the dollar before going back to 6.0500. Questions over toughness of the Turkish banking sector are being raised as global markets face the brunt of the currency crisis.
Airtel Payments Bank and Bharti AXA Life Insurance partner
Airtel Payments Bank and Bharti AXA Life Insurance have united to offer Pradhan Mantri Jeevan Jyoti Bima Yojana (PPJJBY) to expand their network of payments bank to the rural pockets and serve the underinsured. The insurance product would offer a life insurance cover of Rs 0.2 million for a premium of Rs 330 per annum which can be purchased by all Airtel Payments Bank savings account holders who are aged between 18 and 50. The alliance has been timed just before the launch of the India Post Payments Bank (IPPB) which aims to catalyse the process of financial inclusion.
Blackstone may purchase a stake in Jet Airways
As rising crude oil prices and fierce competition in the Indian airline market have dwindled Jet Airways India’s capital, the airline carrier is in talks with Blackstone to resolve its financial woes. The private equity firm may be willing to offer between Rs 30-40 billion for a stake in loyalty program Jet Privilege Pvt. Following the cash crunch, the troubled airline is looking at various funding options to meet liquidity requirements. The firm took a breather when the share prices increased by 4.1% and reduced losses to 65%. However, with loans amounting up to Rs 31.2 billion due as of March 2019, $500 million cash is the need of the hour for the carrier to stay afloat.
Amazon aggressively investing in the Indian market
Amazon’s commitment towards the Indian market was reiterated with its latest investment of $386 million. Over the last five years, the world’s largest online retailer has channelled $4 billion funds towards its Indian market, giving local market leader Flipkart cut-throat competition. While both firms are nowhere near achieving profitability, they are leaving no stone unturned when it comes to burning cash towards expansion and achieving sales growth. After Amazon lost out to Alibaba in the Chinese market, it has pursued an aggressive strategy towards securing the top position in the Indian market. Regulatory filings and an authorised capital of over Rs 150 billion clearly validate the importance of the Indian market to Jeff Bezos.
NSE keeps a close eye on 81 firms
According to National Stock Exchange’s (NSE) exchange data, 81 firms have come under the scanner of the exchange’s Additional Surveillance Measure framework. While public sector banks and private sector banks have been excluded from being monitored, companies like Bombay Dyeing, Adani Green Energy and Indiabulls Ventures are being watched closely for high-low client variation, client concentration, a number of price band hits, close to close price variation and price-earnings ratios. With market integrity and safeguarding the interests of investors being the top priority of the Securities and Exchange Board of India (SEBI) and various exchanges, the surveillance measure has been introduced.
Abhiruchi Ranjan is a writing analyst at Qrius