Growing bubbles

Sebi, the market regulator, has stressed on the importance of mutual funds implementing a unified policy to safeguard retail investors from the adverse effects of market bubbles, especially amidst the ongoing volatility in the small- and mid-cap spaces. Sebi chief Madhabi Puri Buch has cautioned against allowing bubbles to form, highlighting their adverse impact on investors when they burst. The Nifty Smallcap 250 and Nifty 50, which saw significant gains over the past year, have seen turbulence lately.

Steady show

India's retail inflation rate was 5.09% in February, showing little variation from the previous month's 5.10%. Although the figure exceeds the Reserve Bank of India's medium-term goal of 4%, the further decline in core inflation to 3.37% from 3.63% in January provides some relief. However, prices of food and beverages continued to rise—with their inflation staying above 7% for the fourth straight month—owing to a rise in prices of eggs, meat and fish, and vegetables.

Deal spree

$100 billion: That's the value of India's free trade deal with the four-nation European Free Trade Association (EFTA). The bloc comprises Iceland, Liechtenstein, Norway, and Switzerland. This pact aims to bolster integration, reinforce supply chains, attract investments, and cultivate new business opportunities for the two sides. As part of the agreement, EFTA will eliminate tariffs on Indian rice exports, with the exception of those intended for animal consumption, while India will gradually eliminate duties on Swiss chocolates and watches.

Cess kitty

Maharashtra, Karnataka, Uttar Pradesh, Odisha, and Tamil Nadu are at the forefront of cess collections under the goods and services tax (GST) regime, primarily derived from car sales, data released by the GST Council for fiscal year till January showed. The cesses are helping the Centre repay market loans it had taken to aid states during the pandemic. Maharashtra, the largest state economy, collected ₹19,125 crore during the 10-month period. GST cess is imposed on automobiles, aerated drinks, and tobacco falling under the 28% GST slab.

FMCG woes

Rural spending has failed to revive due to high inflation, a weak monsoon, and minimal wage growth. The trend has also hurt the earnings of fast-moving consumer goods (FMCG) companies. According to a Mint analysis of 71 BSE-listed FMCG firms, revenue in the December-ended quarter grew by only 4.3% year-on-year, the slowest in three quarters. While profit growth improved slightly due to reduced input costs, the 5.8% increase is lower in comparison to the robust 21.7% growth recorded just four quarters earlier.

Stake rejig

5.8%: That's the percentage of stake that co-founder Rakesh Gangwal offloaded in InterGlobe Aviation through a block deal on Monday, selling 22.5 million shares valued at ₹6,785.7 crore. The disinvestment follows previous sales by Gangwal and his family, indicating a gradual decrease in their ownership in the airline. With the latest round of stake sale, Gangwal's share in the company has decreased to 6%, resulting in the promoter group's ownership in InterGlobe Aviation declining to 57.3%.

Merger detour

Aditya Birla Capital, a listed entity, has decided to merge its unlisted subsidiary Aditya Birla Finance Ltd with itself, subject to regulatory approvals. The latter is among the 15 non-bank lenders mandated by the RBI to go public by September 2025. By merging with its listed parent, the subsidiary can avoid the necessity of a separate listing. Following the merger, Aditya Birla Finance will be dissolved without being wound up, and Aditya Birla Capital will transform into an operating non-banking finance company (NBFC) from a holding company.