The coming week, in the charts: list of licenses, Rbi minutes, etc.
Every Monday, Mint’s Plain Facts section features key data releases and events to look out for over the coming week. Life Insurance Corporation of India, the country’s largest insurer, will be listed this week after positive vibes from the initial public offering. The minutes of the unexpected Reserve Bank of India (RBI) meeting earlier this month will be released. The French Open will begin this week. Here’s more:
1. LIC list
LIC is expected to list on the BSE and the National Stock Exchange on Tuesday. The share allotment was finalized on Thursday, after the IPO was oversubscribed nearly three times at the time of closing. Policyholders and employees of the company were the most enthusiastic, with their shares subscribed more than six times and four times respectively. The gray market response, however, turned a little negative, suggesting that the listing could take place at a price below the price range. For regular investors, the price has been set at ₹902-949 per share. Market experts are still positive due to the company’s large market share, profitability and growth prospects.
Even after the government reduced the proposed size of the offering due to market volatility, it was the largest IPO ever in the country. The government aims to generate ₹21,000 crore after liquidating its 3.5% stake.
2. RBI Minutes
With several central banks withdrawing their ultra-loose monetary policies, the RBI risked falling behind the curve if it delayed a rate hike too long. After finally acknowledging inflationary risks in April, the upside looked imminent at its June meeting. However, surprisingly, the Monetary Policy Committee (MPC) held an off-cycle meeting on May 4 and raised the key rate by 40 basis points, leaving analysts puzzled as to the reasons for an unscheduled meeting. Now, all eyes are on the publication of the minutes of this meeting, scheduled for Wednesday, to better understand the reasons for this decision. The worrying development between the April meeting and the off-cycle meeting earlier this month was retail inflation data for March, which came in at 6.95%. April’s inflation rate of 7.79% added to concerns. The MPC would not want inflation to stay above 6% any longer.
3. Bharti Airtel Revenue
Bharti Airtel, India’s second-largest telecommunications company, will announce its results for the quarter ended in March and the latest fiscal year on Tuesday. While the company’s net income rose 22.3% year-over-year in the third quarter of FY22, it fell 17% sequentially. However, its average revenue per user (ARPU) recorded growth on a quarterly basis.
Brokerage firms expect the company to post a strong performance in the March quarter as rate hikes imposed in November-December will be reflected in its earnings. Its net profit is expected to grow 7% on a sequential basis, according to JP Morgan. Its ARPU should also increase further.
Price hikes by all telecom operators hurt competitors’ mobile subscriber base, but not Bharti Airtel. If this trend continues, the company could see robust growth thanks to the increase in tariffs and the increase in the number of customers. The company hopes to increase its monthly ARPU to ₹200 per month in 2022.
4. French Open
The second Grand Slam of the year, the French Open, will begin on Sunday in Paris. In women’s singles, Poland’s Iga Swiatek is the big favourite. The recently crowned world number one. 1 have won four successive titles in the past two months and are on a 23-game winning streak. She could face a tough challenge from Tunisia’s Ons Jabeur, who has won two titles this year, including the Madrid Open which Swiatek did not take part in. If Swiatek wins the title, she will move up to fourth place on the longest winning streak in singles streak.
On the men’s side, defending champion Novak Djokovic, who was cleared to play as France relaxed their vaccination mandates, will chase his 21st Grand Slam singles title. But to do that, he may have to beat tournament legend Rafael Nadal again, which is a tall order. A surprise could also be expected in the form of 19-year-old Carlos Alcaraz.
5. Watch your BP
May 17, designated as World Hypertension Day, is the official occasion to raise awareness of the world’s biggest killer, high blood pressure. Around 1.3 billion adults between the ages of 30 and 79 worldwide suffer from it. About half of them are unaware of their condition because they are not diagnosed and 700 million are not treated. High blood pressure prevents the heart from pumping blood, which increases the risk of heart, brain, kidney and other diseases. Over the past three decades, the prevalence of hypertension in rich countries has declined but has increased in middle- and low-income countries.
In line with the global trend, one in four men and one in five women aged 15 and above in India suffer from hypertension, according to the latest National Family Health Survey. But only 2.9% and 5.6% of these men and women take medication to lower and control their blood pressure.