Beside the global economy decelerating down while the Indian economy stays particularly robust and with increasing distressed assets in the Indian business environment, Indian business houses have been on the combat zone of global and domestic M&A, said the report by the global consultancy firm.
As per the report, the recent contracts indicate an impending need for consolidation in various sectors, sale of distraught assets by debt-laden companies and generalization of widely dispersed group companies. “Given the backdrop of a well-developed M&A legal and regulatory framework in India, the road ahead for the Indian M&A landscape seems to be brightly lit,” it said.
PwC report titled ‘Mergers and acquisitions: The evolving Indian landscape’ said that several sectors in India are in strong alliance mode. For example, it said the renewable energy sector (Tata Power acquired Welspun Energy’s assets), the banking sector (Kotak Mahindra acquired ING Vysya Bank), and the telecom sector (Reliance Communications announced the acquisition of MTS India from Sistema).
India’s e-commerce sector is a ferment of activity with large global players like Amazon and Uber taking on a dominant role with their deep pockets, the sector is now in consolidation mode, which has become an “domineering need for endurance for many”, the report said.
Short of merger, ONGC to take control of HPCL soon
Oil & natural Gas corp (ONGC) will take control of Hindustan petroleum corp (HPCL) as part of the government’s plan to create an integrated public sector oil entity comparable with big global oil companies like shell BP and Exxon.
Waves of demonetization cabarets on Q3 GDP growth plunging to 6.1% cascade:
The GDP growth for the quarter ended December 31, is estimated to be in the range of 5.5 to 6.5 percent. Last year, the GDP sprouted by 7.2 percent in the same period.
The third quarter’s GDP number will be an important indicator of how the economy fared in the aftermath of demonetisation.
The CSO has predicted a slowdown to 7.1 percent in economic growth in FY17, compared to FY16’s growth at 7.6 percent. However, this was due to the slowdown in the country’s manufacturing output in the first half of the fiscal. A similar survey conducted by Reuters , had suggested that the economy will grow by 6.4 percent in the December quarter. International rating agencies had also earlier trimmed growth estimates for the financial year 2017 to below 7 percent following the cash crunch.
Nifty prospected to vocate trade in 8950-9000 assortment with Bullish prejudice.
This week the nifty may move in the range of 8950-9000 as it has moved into the overbought territory now due to heavy buying in the last few weeks. The index may hit new all-time highs in the near term with all the concerns over weak earnings, demonetisation, the union budget & trump factors already behind us.
