During an Express Adda event organized by The Indian Express in Bengaluru, Finance Minister Nirmala Sitharaman clarified that the tax devolution share of states is determined by the Finance Commission and cannot be manipulated by any Finance Minister. She emphasized that the Central government’s role is to comply with the Finance Commission’s directives, which dictate the monthly allocation to states. Sitharaman also expressed concerns about external factors impacting the economy more than domestic factors.
SEBI urges caution in mid and small-cap schemes due to rising valuations
The Securities and Exchange Board of India (SEBI) has advised the Association of Mutual Fund in India to caution fund houses about mid and small-cap schemes. This recommendation comes as stocks in these segments have been steadily increasing, leading to higher valuations. The current price-to-earnings (P/E) ratio of the mid-cap index stands at 32.39x, higher than the ten-year trailing average of 31.05x. The small-cap index’s P/E ratio is at 28.41x, significantly higher than the five-year average of 19.29x.
Centre releases tax devolution funds to states, reducing market borrowings
The Indian government has released two instalments of tax devolution amounting to Rs 1.42 trillion to states, which is expected to reduce their market borrowings in March. The release of funds is based on buoyant tax collections and aims to boost liquidity for states in the final month of the current financial year. With this release, the Centre has disbursed Rs 10.32 trillion, leaving only Rs 68,000 crore to be released later in March.
India approves three chip projects, aims to become a global hub
India has approved three chip projects, positioning itself across the semiconductor value chain. The combined capacity of these projects will be 80 million chips per day, marking a significant milestone for the country. The projects cover design, packaging, and fabrication, indicating India’s progress in moving up the value chain. The government expects electronics manufacturing to increase from $105 billion to $300 billion in the coming years.
First helicopter emergency medical service to be launched in India
The first helicopter emergency medical service (HEMS) accessible to the general public is set to be launched in March. The HEMS Sanjeevani initiative, run by government agencies, will provide affordable emergency medical transportation. The service will be based at AIIMS, Rishikesh, and will primarily cater to patients in hilly and inaccessible areas of Uttarakhand. Equipped with lifesaving equipment, the helicopter will transport patients along with medical personnel and a technical crew.
Decline in food grain production projected for 2023-24 crop year
The agriculture ministry has estimated a 6% decline in food grain production for the 2023-24 crop year. The decrease is primarily attributed to lower rice and pulses output due to patchy monsoon rains in the previous season. The second advance estimate of food grain production projects a decline in rice output from 125 million tonnes to 123.8 million tonnes. However, this estimate does not include the summer crop output, which will be reflected in the third advance estimate to be released in June.
Negative opening expected for Indian equity indices
GIFT Nifty indicates a negative opening for Indian equity indices BSE Sensex and NSE Nifty 50. GIFT Nifty traded lower, down 20 points or 0.09% at 22,172.00, suggesting a negative start for domestic indices. On Thursday, the NSE Nifty 50 gained 31.65 points or 0.14% to settle at 21,982.80, while the BSE Sensex closed 195.42 points or 0.27% higher at 72,500.30. Key stocks to watch in trade today include Adani, Tata, Paytm, Yes Bank, Adani Enterprises, Oil Companies, Dilip Buildcon, Aurobindo Pharma, One 97 Communications, and Avantel, among others.
