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The government may delay a planned privatisation of state-run general insurers, focusing instead on strengthening the three insurers-Oriental Insurance Co. Ltd, National Insurance Co. Ltd, and United India Insurance Co. Ltd-through capital support and business revival plans. It is expected to infuse about ₹5,000 crore into the three insurers, shelving any privatisation plan this fiscal, said officials aware of the development. "Deliberations have been held with all stakeholders, and an announcement regarding capital support is expected in the upcoming budget," one of the officials said. He said the final amount may vary but the government is committed to supporting the general insurers to further strengthen their balance sheets. Solvency ratio for the three insurers remained at about 0.58 as of December 2023, compared to the regulatory requirement of 1.50 times. The solvency ratio is the excess of capital and the value of assets over the insured liabilities. It indicates the buffer an insurer has to settle all claims in extreme situations.111294379According to a report from rating agency ICRA, the capital requirement of three PSU general insurers (excluding New India) is estimated at ₹9,400-₹10,020 crore to meet solvency of 1.50x as of March 2025, assuming 100% forbearance on the fair value change account, or FVCA. So far, the government has infused ₹17,500 crore in these insurers. Latest data shows the market share of public sector general insurers fell to 31.18% in FY24 from 32.27% in the year before. The share of private insurers rose to 53.52% from 51.36% during the period.The ICRA report also pointed out that the combined ratio for PSU insurers, though expected to be lower, will remain weak, impacting net profitability. "We don't expect any privatisation in FY25. This year, the focus will be to strengthen them and regain lost market share through efficient business planning," a second official said, requesting anonymity. Since 2021, when the Centre notified the General Insurance Business (Nationalisation) Amendment Act, which allows the government to pare its stake in state-run general insurers to below 51%, there has been no movement on the privatisation front. "While the government is committed to its privatisation policy, in this case, we will only start the process when the insurers are financially strong," said the official cited above.An industry executive said there were expectations of the government pushing for privatisation of state-run insurers in view of the Insurance Amendment Bill slated to be tabled this year, which will further liberalise the domestic insurance market.

The Bombay High Court on Wednesday disposed of a writ petition filed by Essel Group chairman Subhash Chandra that challenged the Securities and Exchange Board of India (Sebi) summons to appear before the capital markets regulator.The division bench of Justice KR Shriram and Justice Jitendra Jain disposed of the writ petition in an oral order after the Sebi informed the court that it was withdrawing the first summons directing Subhas Chandra to be present. However, Chandra will have to furnish the documents sought by the regulator through a communication dated March 27.Chandra, chairman emeritus of Zee Entertainment, was represented by senior counsels Ravi Kadam and Prateek Seksaria. Zee, was also a respondent in the matter, was represented by senior advocate Janak Dwarkadas. On January 12, Sebi summoned Chandra in its ongoing probe against Zee Entertainment promoters for allegedly diverting funds from the media company to promoter group firms. Subsequently, Chandra filed a writ petition in Bombay HC.

Amazon.com Inc hit $2 trillion in market value for the first time on Wednesday, becoming the fifth U.S. company to surpass that level as optimism around artificial intelligence and potential interest rate cuts this year drove demand for technology-related stocks. The stock rose 3.4% to $192.70, giving the e-commerce giant a market value of over $2 trillion and putting it in the same club as technology heavyweights Microsoft Corp, Apple Inc, Nvidia Corp and Alphabet. U.S. stock indexes have recorded robust gains this year on relentless enthusiasm around AI, optimism around resilience in the U.S. economy and potential easing of interest rates from the Federal Reserve. Wall Street was trading near record levels, largely powered by megacap stocks such as Nvidia and Amazon, whose future cash flows stand to benefit from lower interest rates. Shares of Amazon, which were added to the blue-chip Dow Jones Industrial Average index in February, have climbed over 26% this year. The company became the fifth biggest U.S. company by market value in February after Nvidia went up a spot. Amazon Web Services is the largest cloud services provider in the world, and growth at the Amazon unit has returned after a dip in the past year, thanks to surging adoption of AI technologies. The company has also invested in AI startup Anthropic and robotics firm Figure as it looks to capitalize on the AI boom. Late last year, Amazon unveiled a new generation of custom-designed chips used in data centers, targeting applications for machine-learning training and generative artificial intelligence.

Three terrorists, suspected to be affiliated with the Pakistan-based Jaish-e-Mohammad (JeM) outfit, were killed in a gunfight that lasted for more than six hours in a forest area in Jammu and Kashmir's Doda district on Wednesday, police officials said. A policeman was also injured in the gunfight that broke out in Bajaad village in the Gandoh area around 9:50 am amid an intensified cordon-and-search operation launched by the police, Army and Central Reserve Police Force (CRPF), following twin terrorist attacks in the hill district on June 11 and 12, the officials added. Six security personnel were injured when terrorists attacked a joint check post at Chattargalla on June 11, while a policeman was hurt in a gunfight with terrorists at the Kota top in Gandoh the next day. After the twin attacks, the security forces intensified their anti-terrorist operations and announced a cash reward of Rs 5 lakh each on information about four Pakistani terrorists believed to have infiltrated into the district. During an operation in a village in Sinoo panchayat, the forces came under heavy fire from the terrorists hiding in a "dhok" (mud house) on a slope, the officials said, adding that one ultra was killed in the retaliatory fire after he came out and started firing on the search parties. Heavy gunfire and explosions rattled the village as two more terrorists were eliminated by the security forces as the day progressed, the officials said, adding that a huge quantity of arms and ammunition, including two M4 carbines and an AK-series assault rifle, were seized from the possession of the slain terrorists. The identity and group affiliation of the slain ultras could not be ascertained immediately, they said. However, the officials added that according to a preliminary investigation, the terrorists believed to have recently infiltrated from across the border are JeM members and likely from Pakistan. An Army helicopter was also seen hovering over the area for surveillance during the encounter, the officials said. They said the encounter ended around 4 pm but a thorough search operation is still continuing to ensure that no other terrorists are there in the area. Additional Director General of Police, Jammu Zone, Anand Jain, along with Deputy Inspector General of Police, Doda-Kishtwar-Ramban range, Shridhar Patil and Senior Superintendent of Police, Doda, Javid Iqbal, rushed to the encounter site to supervise the operation. This was the second such encounter in the Jammu region this month. On June 11-12, two Pakistani terrorists and a CRPF jawan were killed in a 15-hour-long operation in the Hiranagar sector of Kathua district. Jammu has witnessed a spurt in terror activities, attributed by authorities to an attempt by Pakistani handlers to revive terrorism in the region and disturb the peaceful atmosphere. On June 9, terrorists struck a bus carrying pilgrims returning from the Shiv Khori temple in Reasi district, killing nine people, including the driver and the conductor of the vehicle, and injuring 41. The officials said internet mobile services in Gandoh and adjoining areas have been suspended as a precautionary measure. Meanwhile, a Chinese hand grenade was found in Pind village in the Chingus area of Rajouri district, they said. The officials said the grenade was found late on Tuesday evening by a patrolling party of security forces.

Global tyre manufacturers including the likes of Michelin, Bridgestone, and Goodyear are gearing up to invest in India's manufacturing sector, with potential entrants Yokohama and Birla Tyre also eyeing opportunities under a government scheme that links imports to local investment, TOI reported on Wednesday.These investments, expected to total around Rs 3,000 crore, mark a significant response to the Centre's import restrictions aimed at boosting domestic production. The new investments are anticipated to create several hundred jobs, with Yokohama, likely the largest investor, planning a plant in Haryana where nearly half the workforce will be women.The Department for Promotion of Industry and Internal Trade (DPIIT) has designed the scheme to encourage capacity expansion by linking it to import permissions. This move addresses the earlier disruptions faced by foreign companies due to licensing requirements, particularly impacting high-end tyre imports. "We are witnessing the positive outcomes of our initiatives and anticipate more companies will choose to manufacture in India," TOI quoted a senior official as saying. “We are seeing the results of the steps we have taken and we are expecting more companies to come and make in India."Accelerating EV pushThe development aligns with the government's broader electric vehicle (EV) policy, which aims to permit lower duty imports for companies that establish local manufacturing facilities. The Modi administration is actively courting major EV players like Tesla, seeking to create jobs and expedite the shift to EVs. Although Elon Musk's expected visit was canceled, officials remain optimistic about future engagements, with other firms like Vinfast showing interest. The Department of Heavy Industries is currently collaborating with stakeholders to finalize the guidelines for the new policy, with invitations for bids expected in the coming months.(With TOI inputs)

Nifty ended Wednesday session 147.5 points higher and formed a new peak at 23,889 level to form a long bull candle on the daily charts. Three such back to back candles indicate the formation of a ‘3 Advancing Soldiers' type pattern which signals upside continuation for the short term.The present upside momentum could find resistance at the highs of around 24,000-24,100 levels (1.786% Fibonacci extension of crucial bottom/top/bottom of 2020-2022) and one may expect next round of consolidation or minor weakness to emerge from the highs. Immediate support is at 23,650 levels, said Nagaraj Shetti of HDFC Securities.What should traders do? Here’s what analysts said:Rupak De, LKP SecuritiesNifty continued to rise as the bulls maintained control, pushing the index to a new all-time high. The sentiment is likely to remain positive as long as it stays above 23,700. On the higher end, a decisive move above 24,000 could take the index towards 24,200.Tejas Shah, JM Financial & BlinkXNifty tested the upper band of our target zone of 23,750-23,800 in today’s trading session. We believe that the rally in Nifty is likely to continue and it can test the psychological resistance levels of 24,000 on the higher side. The short term moving averages are just below the price action and should continue to support the indices on any decline. Support for the Nifty is now seen at 23,750-800 and 23,650 levels. On the higher side, an immediate psychological resistance is at 24,000 Mark and the next resistance is at 24,125 level.Jatin Gedia, Sharekhan by BNP ParibasOn the daily charts we can observe that the index has witnessed follow-through buying interest after breaking out of the consolidation range on the upside. We believe that the Nifty is likely to target levels of 24,150 from a short term perspective. Any dips towards support zone 23,700 – 23,680 should be used as a buying opportunity. Daily and hourly momentum indicators are in sync so momentum is likely to continue.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Banks advising South Korean automaker Hyundai on its India IPO are set to make as much as $40 million in fees, three sources said, a windfall in a market where banks typically struggle to make money given cost-conscious clients and fewer big deals. That would be the second-highest fee pot ever for investment banks working on an initial public offering (IPO) in India and it comes amid a sharp surge in equity deals in the country, making it a bright spot in an otherwise dull Asia. Hyundai Motor's India unit this month filed for regulatory approval for a listing, which could be the nation's biggest and will see the South Korean parent raise around $2.5-$3 billion at a valuation for the unit of up to $30 billion. Hyundai India will pay banks, including JPMorgan, Citigroup and HSBC, 1.3% of the IPO size, the sources, who have direct knowledge of the deal discussions, said on condition of anonymity as the talks are confidential. Citi and JPMorgan declined to comment, while Hyundai India and HSBC did not reply to requests seeking comment. That translates to $40 million for a single deal at the top end of the deal size, making it the second best payday for banks after Indian fintech firm Paytm's 2021 IPO yielded $44 million for its seven advisers, Dealogic data shows. Banks in India get between 1% and 3% of an IPO size as fees, with larger deals giving more bargaining power to the issuers. An IPO worth about $3 billion would see banks in New York earning 3%-3.5% in fees, while it could be 2%-3% in Hong Kong. Historically most big equity deals in India have come from state-owned companies that, bankers say, offer very low fees. Western bankers privately complain about the Indian market's low revenue potential, but they expect that to change in the coming years with both the size of deals and fees going up. A $40 million payout from the Hyundai India IPO would represent a fourth of India's total IPO fee income of $164 million in 2023, according to Dealogic. Indian brokerages IIFL and Kotak Mahindra, and Jefferies topped the country's IPO fee league table last year, London Stock Exchange Group data showed. India's IPO fee rose 55% to hit $164 million last year, with a record 234 companies listing. Banks in New York earned $890 million while Hong Kong IPO fees totalled $135 million last year, according to data from Dealogic. For Hyundai's India IPO, the fee split among its advising banks has not been decided yet, but typically lead managers get the lion's share. JPMorgan, Citi and HSBC are the lead banks on the Hyundai India IPO, three sources said. Other banks on the deal include Morgan Stanley and India's Kotak, they said. Morgan Stanley and Kotak did not reply to a Reuters request for comment. At $2.5 billion, the lower end of the expected size of the Hyundai India IPO which is likely to be launched in the second half of this year, banks would end up pocketing a combined $33 million in fees, still the second best IPO fee in the country. Bankers are betting on a surge in big ticket, private company IPOs as well as investment banking fees in India over the next few years as valuations grow and foreign funds chase Indian equities amid an uncertain economic outlook in China. "There is money to be made in India, and this (Hyundai IPO) is the start of a movement. More and more global banks believe there is an opportunity here," said Utpal Oza, Nomura's former head of India investment banking. Nearly all of India's highest paying IPOs have come in the last three years, Dealogic data shows, with dozens of venture capital and private equity-backed companies seeking listings. Jefferies Financial Group expects investment banking fees in India to rise in the next couple of years as the number of deals grows, its country head said in December last year.