Good Morning readers!
The answers to both the questions asked yesterday are out!
Question 1: Is the market giving up on gains?
Question 2: Did ITC’s share price increase because of our ‘meme of the day’ posted the day before yesterday?
After a thrilling response from 4 of our readers, we would like to conclude that both the answers are a resounding YES or at least we would like to believe so! 🥰🥰
Onto today’s newsletter!
Markets at a glance
Markets were up and down during the morning session but ended flat around the closing bell.
Nifty50 and Sensex both ended 0.05% down, nothing to see there!
All action was in textiles as the government announced a bumper PLI scheme for the sector.
IT, Auto and pharma lagged but Banks, PSU banks and Financial services rose by 1% each. Small and Midcaps outperformed!
What’s making headlines?
A mega Production Linked Incentive Scheme (PLI) was offered to the textile sector totalling almost ₹11,000 Crores, more sectors set to benefit (Mint)
Production Linked Incentive Scheme (PLI), is a popular method used by the Indian government to boost domestic production and encourage companies to improve performance. They achieve this by providing tax breaks and subsidies to local companies that can open new facilities using those funds or increase prodcution (More: an old article will help readers understand better). These schemes have become a powerful weapon in the governments’ arsenal in the fight against the pandemic.
The government also look to boost EV production by rolling out a $3.5 Billion incentive over 5 years to the auto sector (ET)
SAIL (NSE: -0.12%), set to double capacity by 2030 (BS)
Bids for Air India expected by September 15, government firm on deadline for bids (TOI)
MSP on wheat crops increased by ₹40/quintal (BS)
Where’s the money flowing?
A big buy for Paypal is in the works, as the American payments company look to acquire Japan’s Paidy a Buy-Now-Pay-Later company for $2.7 Billion (TC)
Reports suggest the government will allow up to 20% foreign institutional investment in the LIC IPO (Mint)
Education remains the flavour for funds as Leap a two-year-old startup that helps students study abroad raised $55 Million in a Series C round (TC)
Byju’s raised $150 Million led by Asmaan ventures, as the company looks to raise even more money (Entrackr)
Small town financial services platform WeRize raises $8 Million in Series A funding round (Entrackr)
Vahdam teas a startup that sells fresh teas raises $24 Million in a Series D round of funding (Entrackr)
More news?
Apple may release iPhones in its special event scheduled for the 14th of September, ‘sell-my-kidney for this phone’ jokes incoming! (CNBC)
After a spike in Bitcoin prices, a sharp fall followed after El Salvador’s rollout faced glitches (BS)
The ECB set to meet this week to discuss tapering might reduce bond purchases before the FED (CNBC)
Samsung offered huge tax breaks to set up chip plant in Taylor, a city in Texas as America looks to bring chip makers onshore (G360)