Top Headlines: LIC IPO gets cabinet nod; liquidity in banking system rises

The Cabinet Committee for Economic Affairs has approved part divestment of the government stake in Life Insurance Corporation of India (LIC) through an initial public offering. Liquidity in the banking system has increased by at least Rs 1 trillion since the last week of June as the government has stepped up spending, and the Reserve Bank of India has started winding down its outstanding position in the currency forward segment. Business Standard brings to you top headlines on Tuesday.

LIC IPO gets Cabinet nod; decision on issue size soon by FM-led panel

The Cabinet Committee for Economic Affairs has approved part divestment of the government stake in Life Insurance Corporation of India (LIC) through an initial public offering. The size of the IPO and the extent of the government’s stake dilution in the country’s largest insurer would be taken up by the Alternative Mechanism comprising Finance Minister Nirmala Sitharaman and Minister of Road, Transport and Highways Nitin Gadkari, among others. Read more

Liquidity in the banking system rises as govt steps up spending

Liquidity in the banking system has increased by at least Rs 1 trillion since the last week of June as the government has stepped up spending, and the Reserve Bank of India (RBI) has started winding down its outstanding position in the currency forward segment. Net daily liquidity absorbed from banks on July 9 was Rs 4.6 trillion, data released on Monday showed. Read more

Petrol, diesel prices may soften by month-end as Brent stabilises

Petrol and diesel prices are expected to soften from their record highs towards the end of July, but they will remain out of the comfort zone for most consumers. This is because Brent crude oil prices are stabilising around $75 a barrel, down from highs of $77 a barrel earlier this month. Read more

ONGC's existential problem: India's exploration conglomerate running empty

It is rare for cabinet ministers to tick off state-owned companies publicly, yet that was what then petroleum and natural gas minister Dharmendra Pra­dhan did for ONGC. Speaking at an event on June 29, Pradhan said he has asked India’s premier exploration company to find fresh oil acreages fast. “Do it yourself through some joint venture (or) through a new business model. Read more

Recovery tracker: Office visits at 78% of pre-Covid days as cases fall

As the number of Covid cases falls, weekly indicators of economic activity are looking up. Power generation is now showing double-digit gains over 2019, and there is an uptick in mobility, too. Other indicators such as traffic and emissions are also on a recovery path, though more in some parts of the country than others. Read more