Govt stake in Voda Idea may be good for shareholders in long term

Hi there, Good Morning. Welcome to ETMarkets Morning, the show about money, business and markets. I am Nikhil Agarwal. Let's start with the headlines first.

- Centre wants no role in Vodafone Idea's ops, plans to exit once firm stabilises

- Manpower shortage may worsen for several sectors

- ITR filing, tax audit report deadlines for FY 2020-21 extended by CBDT


Now lemme give you a quick glance on the state of the markets.

Asian stocks opened on a higher note on Wednesday as the technology shares were on a roll and following the rise in US stocks on Tuesday as Powell's testimony eased worries. MSCI's index of Asia-Pacific shares outside Japan was up by 1.02 per cent.

Elsewhere, the yield on 10-year Treasuries was at 1.74%. The dollar was steady after declining and commodity-linked currencies like the Australian dollar stabilized after jumping alongside oil prices. Bitcoin traded above $42,500 after its roughest start to a year and ominous technical indicators.


That said, here’s what is making news.


The government's potential stake in cash strapped Vodafone Idea (Vi) is credit positive from an investor's point of view, indicating that the telco would be in a better position to raise funds, brightening the prospects for its long-term survival, global funds and analysts said.

The share of assets under management (AUM) of the funds linked to systematic investment plans (SIPs) reached a record 15% of the AUM of the mutual fund (MF) industry in December 2021, data from the Association of Mutual Funds in India (AMFI) show. The SIP AUM grew by 34.6% annually in the past five years compared with the 18% growth in the total MF AUM.


Tata Teleservices Maharashtra (TTML), a Tata Group firm that posted consistent losses in the past years, has become the hottest stock in town. Shares of Tata Teleservices have rallied 3,000% in one year and 12,800% in two years, though nothing has changed its balance sheet or business outlook. Analysts said retail investors should exercise caution on buying the stock.


NOW Before I go, here is a look at some of the stocks buzzing this morning...


The government has no plans to play a role in managing Vodafone Idea's operations, despite possibly holding a 35.8% stake in the loss-making telco, said senior officials. The government plans to exit once the loss-making telco stabilises.

Lenders have rejected Vedanta's Rs 2,800 crore offer for Lanco Amarkantak Power, a Lanco Group company that is undergoing Insolvency and Bankruptcy Code (IBC) proceedings at National Company Law Tribunal (NCLT).

Private sector lender Federal Bank has decided to divest stake in wholly-owned subsidiary Fedbank Financial Services (Fedfina).

State-run SJVN Ltd said it has bagged contracts to set up two grid connected solar power projects of cumulative 125 MW capacity in Uttar Pradesh. The projects will be established in Jalaun and Kanpur Dehat districts of the state.

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That’s it for now. Stay with us for all the market news through the day. Happy investing!