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India’s financial services industry has a new player — Jio BlackRock. This is a joint venture between Mukesh Ambani-backed Jio Financial Services and American investment giant BlackRock. Its mutual fund arm, Jio BlackRock Mutual Fund, received SEBI approval in May and launched its website this week. The company has already filed documents with the regulator for its first two funds. Now, SEBI has also allowed the joint venture to set up an investment advisory called Jio BlackRock Investment Advisers.
More from the personal finance space. Home loans are getting cheaper after the higher-than-expected rate cut by the RBI. Public sector banks have taken the lead, with most reducing home loan interest rates by 50 basis points — to as low as 8.2 per cent. Private sector lender HDFC Bank has also cut its rate, though by a more modest 10 basis points.
While borrowing has become cheaper, this move has also meant lower returns on bank deposits. Several banks, including ICICI Bank and HDFC Bank, have reduced their fixed deposit rates for select tenures.
Still with personal finance. Finance Minister Nirmala Sitharaman has urged financial regulators to fast-track the settlement of unclaimed assets such as dormant bank deposits, unpaid dividends and insurance claims. At a Financial Stability and Development Council meeting on Tuesday, the FM also proposed a district-wise outreach programme to return such assets to their rightful owners. According to a Times of India report, unclaimed bank deposits have now crossed 78,000 crore rupees. Assets with SEBI-regulated entities add another 500 crore to that figure.
Also read/watch - 170 crore Indians by 2062: The good and the bad newsIn fintech news — Paytm shares were in the spotlight this week. This came after the Finance Ministry’s clarification on the Merchant Discount Rate or MDR — the fee merchants pay payment providers for real-time transactions. On Wednesday, the ministry rejected reports that UPI transactions above 3,000 rupees would attract MDR, calling the claims false, baseless, and misleading. Brokerage firm UBS noted that the implementation of MDR would have boosted Paytm’s earnings — making this clarification sentimentally negative for the company.
And now to the big global story — Trump’s China trade deal claim. US President Donald Trump has claimed that the United States has struck a trade deal with China. In a social media post, Trump said that under this deal — pending approval from Chinese President Xi Jinping and himself — China will supply the US with rare earths and full magnets. In return, the US will allow Chinese students access to American universities. Trump added that the US would levy a tariff rate of 55 per cent on Chinese goods, while China would get 10 per cent.
More from the US — Boeing shares tumbled on Thursday after an Air India-operated Boeing 787 Dreamliner crashed in Ahmedabad. The London-bound flight, carrying 242 people, struck a hostel building shortly after take-off. Only one person survived. Several hostel residents were also killed. Tata Group, which owns Air India, promised support to the victims’ families, announced compensation of one crore rupees per victim, and offered help in rebuilding the hostel. Chairman N Chandrasekaran also pledged full cooperation in the investigation, with support from Boeing and engine-maker GE Aerospace.
And now, a quick look at this week’s market action... Indian equities saw sharp declines on Thursday and Friday, ending the week in the red. The Sensex slipped to 81,000, down over one per cent for the week. The Nifty saw similar losses, closing just above 24,700. The fall in Indian equities mirrored global investor sentiment, which was shaken by Israel’s attack on Iran’s nuclear sites.
That’s all from the Hook Business News Wrap. Log on to Hook.Online to watch our explainer: RBI’s repo rate cuts, lower EMIs & higher savings.
