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moneycontrol.com | https://www.moneycontrol.com/news/business/markets/angel-one-invests-rs-250-crore-in-wealth-management-arm-12783662.html | Angel One invests Rs 250 crore in wealth management arm | The Angel One statement said there has been a rapid increase in the HNI population in the country, and is pegged to grow 16 per cent every year to 16.5 lakh by 2027.. | Angel One on July 31 said it has invested Rs 250 crore into its wealth management arm to capitalize on the growing affluence in the country, the brokerage firm said in a statement. The capital will be deployed to develop core technological infrastructure, leveraging AI and analytics, expand presence in key markets and develop product strategies, as per an official statement. Angel One Wealth has three business verticals, including HNI (high net-worth individuals), UHNI (ultra HNI) and alternate assets, it said. "Through Angel One Wealth we aim to cater to an expansive spectrum of clients, by leveraging technology and staying at the forefront of innovation," Angel One's chairman and managing director Dinesh Thakkar said. It can be noted that some of its peers, including IIFL, already have successful wealth management arms. The Angel One statement said there has been a rapid increase in the HNI population in the country, and is pegged to grow 16 per cent every year to 16.5 lakh by 2027. The company will offer investment products across asset classes, technology-driven accessibility for clients and support of relationship managers to the clients. The statement said it has put in place a 60-member team of wealth managers, with an average age of 32 years. It has also put in place an advisory council, a think tank, a product approval committee and an investment committee. With inputs from PTI | null | null | 2024-07-31 20:27 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/mc-exclusiveindian-oil-mulls-cancelling-maiden-green-hydrogen-tender-again-to-revise-bidding-norms-12783543.html | MC Exclusive: Indian Oil mulls cancelling maiden green hydrogen tender again to revise bidding norms | IOCL plans to set up its maiden green hydrogen generation plant in Panipat, with a capacity of 10,000 KTA..Related stories. | State-run oil refining and marketing majorIndian Oil Corporation Ltd(IOCL) is believed to be considering cancelling the tender for its maiden green hydrogen plant to revise norms to attract more bidders, at least three people┬Āin the know told Moneycontrol. The bids for the tender closed on July 9 with two entities in the raceŌĆöGH4India, a consortium that includes IOC and has ReNew andLarsen & Toubroas partners, and Noida based-Neometrix Engineering. The first bidder is at the centre of the matter as the initial tender had to be cancelled in February after potential bidders alleged preferential treatment toward the IOCL┬Ājoint venture by virtue of a ŌĆśright of first refusalŌĆÖ clause that was given to it. The revised tender has since removed this clause to address these concerns. This is thesecond time IOCL has floated the tenderfor the project to come up at Panipat in Haryana. On February 21, 2024, IOCLcancelled the first tenders┬Āfollowing the outcry against favouring the IOCL consortium. ŌĆ£The second time around, the tender had made changes to address the issues that were highlighted in the earlier tender. But many players asked for more time, and the deadline was revised many times. Now the bids are closed with two bidders in the race but some of these (other interested) companies are still lobbying for more time. We believe that IOCL is inclined to relaunch the tenderŌĆ” This will lead to further delays in what could have been the first green hydrogen plant,ŌĆØ an executive close to the development said. Emails sent to IOCL remained unanswered at the time of publication. ŌĆ£IOCL is looking into the technical specifications of the tender, in order to add broader and non-stringent norms so that more parties can submit their bids,ŌĆØ said another person familiar with the matter. Two of the sources said that some renewable energy companies are believed to be lobbying for technical specifications to be diluted so that they can participate too. India is pushing companies to set up green hydrogen generation capacity as it offers a cleaner alternative to fossil fuels since it is generated from renewable sources like wind and solar energy. Its production hinges on two critical components: cutting-edge hydrogen technology and strong renewable energy generation capabilities. Recap On February 21, IOCL cancelled tenders for its inaugural green hydrogen plant to be set up in Panipat, Haryana, amid allegations that the nation's largest fuel retailer made "tailored" tender norms favouring a joint venture that included the state-run oil marketing company. The Independent Green Hydrogen Producers Association, comprising six renewable energy firms at the time,filed a petition in the Delhi High Court, alleging that IOCLŌĆÖs tender favoured its joint venture company. Subsequently, IOCL reissued the tender in March, removing the controversial ROFR (right of first refusal) clause. But potential bidders flagged that IOCL also introduced changes to the eligibility criteria, making it difficult for them to participate in the bids. Revisiting norms While the second tender revised norms to address the issue of preferential treatment to the IOCL joint venture, it also laid outstricter eligibility criteriathat is the bone of contention for some industry players, sources said. The revised tender restricts participating as sole bidders to Indian entities. The revised tender also outlines the mandatory stakes that┬Ājoint venture partners or members of a consortium need to hold. The initial tender did not specify any such condition. The bid documents fro hydrogen-handling facilities┬Āsay┬Ācompanies should have handled such facilities of a refinery unit or petrochemical unit or fertiliser unit with a minimum capacity of 500 kilotonnes per annum (KTPA). It also tweaked norms relating to purchase of renewable power, annual turnover and net worth. The green hydrogen generation plant in Panipat, with a capacity of 10,000 KTA, is slated to be the largest green hydrogen plant in the country. | null | null | 2024-07-31 19:43 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/core-sector-output-eases-to-4-in-june-q1fy25-growth-lower-at-5-7-12783397.html | Core sector output eases to 4% in June; Q1FY25 growth lower at 5.7% | Core sector growth for June.Related stories. | India’s core sector growth eased to 20-month low of 4 percent in June, from 6.4 percent in the previous month, owing to a slowdown in five of eight industries and an unfavourable base. The first quarter growth was also lower at 5.7 percent compared with 6 percent in the first quarter of the previous year. Core sector had expanded 8.4 percent in June 2023. The combined Index of Eight Core Sector Industries measures the output of key sectors - cement, coal, crude oil, electricity, fertilisers, natural gas, refinery products and steel - which have a 40% weight in the Index of Industrial Production (IIP). While coal, cement and fertilisers witnessed a pick up in activity compared with the previous month, the other five industries witnessed a slowdown with two sectors—crude oil and refinery products—witnessing a contraction. "With the onset of the monsoon, electricity growth reverted back to single digits after two months, while remaining healthy at 7.7 percent," said Aditi Nayar, chief economist, Icra. Coal retained its double digit growth for second month in a row, rising 14.8 percent in June compared with 10.2 percent in the previous month. On the otehr hand, cement grew at 2.7 percent from 1.6 contraction witnessed in May. Steel slowed sharply to 2.7 percent from 6.8 percent in the previous month, and electricity growth nearly halved to 7.7 percent. Sequentially, the eight core industries contracted 3.1 percent. Economists noted that slower core growth is also likely to weigh down on industrial production numbers. Icra pegs Index of Industrial Production growth between 3.5-5 percent for June. Industrial output was up 5.9 percent in May. Outlook improving "Steel growth of 2.7% and cement of 1.9% was mainly due to high base of 21.3% and 9.9% respectively as well as muted government spending ostensibly due to the elections on capex. This will reverse and pick up in coming months," said Madan Sabnavis, chief economist, Bank of Baroda. The Indian economy is likely to perform better than earlier expected, carrying the momentum from the previous fiscal. "The additional tax devolution installment to the states in June 2024 would lead to a pickup in states capex, going forward. This along with the union government capex FY25budgetproposals would provide succour to the construction and infrastructure sectors," said Paras Jasrai, senior analyst, India Ratings and Research. Reserve Bank of India recently revised India’s growth forecast upward to 7.2 percent from 7 percent expected earlier. The International Monetary Fund also expects the economy to grow at 7 percent compared with 6.8 percent projected earlier. The Economic Survey released on July 22 pegged growth at 6.5-7 percent. The National Council of Applied Economic Research in its monthly economic outlook noted that growth could inch higher than 7 percent in the current fiscal. “Based on the momentum in the high frequency indicators; normalised monsoon; a relatively benign global outlook; and receded electoral uncertainty, both in India and in the rest of the world, growth will likely turn out to be higher than 7 percent, and possibly closer to 7.5 percent,” said Poonam Gupta, director general, NCAER. The government kept its capital spending target unchanged at Rs 11.11 lakh crore in the Bugdet presented on July 23. | null | null | 2024-07-31 18:45 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/fiscal-deficit-narrows-to-8-1-percent-of-the-full-year-estimate-in-q1fy25-12783420.html | Fiscal deficit narrows to 8% of the full year estimate in Q1FY25 | Fiscal deficit for Q1FY25.Related stories. | Centre’s fiscal deficit narrowed to 8.1 percent of the full year estimate in the first quarter of the year, compared with 25.3 percent during similar period in the previous year, government data released on July 31 showed. The fiscal deficit stood at Rs 1.36 lakh crore, compared with Rs 50,615 crore in the first two months of the year. The government data considers interim Budget numbers for estimates. Based on theBudgetnumbers released on July 23 fiscal deficit was 8.4 percent of target of Rs 16.13 lakh crore. Higher-than-expected RBI dividend of Rs 2.11 lakh crore has helped keep fiscal deficit contained, along with rise in revenue receipts and subdued capital spending. Revenue receipts were higher at Rs 8.3 lakh crore or 26.5 percent of full year target based on new Budget numbers compared with 22.4 percent in Q1FY24. Tax revenue was 21 percent of the full year estimate compared with 18.6 percent in the previous year. Capex utilisation was lower at 16.3 percent of Budget estimates compared with 27.8 percent in Q1FY25 in the previous year. Loans disbursed at Rs 30,009 crore were just 17.5 percent of target compared with 27.2 percent in the first quarter of previous fiscal. Overall, the government has spent 20 percent of its total expenditure of Rs 48.2 lakh crore Budgeted for the current fiscal. " Impact of FY25 budget proposals will start reflecting on revenue and expenditure after passage of finance bill and would start reflecting from August 2024 fiscal numbers. Ind-Ra expects, government to achieve its FY25 deficit target," said Paras Jasrai, senior analyst, India Ratings and Research. The government in the Budget announced on July 23 further reduced the fiscal deficit target to 4.9 percent of the GDP compared with 5.1 percent target set in the interim Budget. The finance minister in her Budget speech had noted that the government was steadfast in reducing the fiscal deficit further to 4.5 percent or below by FY26. The revenue receipt target was also raised to Rs 31.3 lakh crore in FY25 compared with Rs 30 lakh crore in the interim budget. Capex spending was kept unchanged at Rs 11.11 lakh crore. | null | null | 2024-07-31 17:58 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/rupee-rises-2-paise-to-83-71-against-us-dollar-in-early-trade-12783470.html | Rupee rises 2 paise to 83.71 against US dollar in early trade | Rupee rises 2 paise to 83.71 against US dollar in early trade. | The rupee rose 2 paise to 83.71 against the US currency in early trade on Wednesday following a marginal dip in the dollar in overseas markets. At the interbank currency exchange, the domestic currency opened at 83.72, 1 paisa higher than the previous day's close. The domestic unit moved in the tight range of 83.70-83.72 in early trade. Forex traders said the rise in Brent crude oil prices offset the rupee's gains following the decline in dollar rates overseas. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.19 per cent to 104.36. Brent crude futures — the global oil benchmark — rose 1.49 per cent to USD 79.80 per barrel. All eyes will be on the US Fed rate announcement later in the day. Expectations are ripe that the Federal Reserve might signal a rate cut as early as September. In the domestic equity market, the 30-share BSE Sensex showed volatility, rising over 200 points in early trade to reach a record high before trading at 81,517.75, up 62.35 points, at 9.35 am. Foreign institutional investors were net sellers in the capital markets on Tuesday, offloaded shares worth Rs 5,598.64 crore, according to exchange data. | null | null | 2024-07-31 16:20 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/economic-surveys-7-9-million-non-farm-jobs-target-is-easily-achievable-mc-analysis-12783449.html | Economic Survey’s 7.9 million non-farm jobs target is easily achievable: MC Analysis | Economic Survey target easily achiveable.Related stories. | The Economic Survey's target of creating 7.9 million non-farm jobs a year until 2030 may not be that audacious, as the country created nearly 10 million jobs in non-farm sector, excluding construction, in FY23, aMoneycontrolanalysis shows. Job creation in non-farm sector averaged 8.31 million over the last seven years, an analysis of data released by the Reserve Bank of India shows. The country is expected to do even better in FY24, as an earlier analysis byMoneycontrolfound that 47 million jobs were created in the previous fiscal. The rate of job creation was the highest in over four decades. The concern may be a switch back to agriculture. While employment in agriculture sector declined to its lowest level of 200 million in FY17, it has since picked up. In FY23, agriculture employed more people than it did at any point in the last 17 years. The sector added 1.9 percent more jobs in FY23 compared with the previous year. Another problem for the economy is creating high-paying jobs. Construction, though a non-farm sector, for instance, created 4.4 million jobs in FY23, twice as many as manufacturing, but most of this would have been informal work and with lower remuneration. The ratio of construction jobs has been rising. Of the 596.7 million people employed in FY23, 12.5 percent came from the construction sector, up from 10.8 percent a decade ago. A fourth of new jobs created post-pandemic belonged to the construction sector. An analysis of periodic labour force survey data shows that four in five people employed in construction were casual labourers in 2022-23. In contrast, nearly half of the workforce in manufacturing was regular wage or salaried workers. Manufacturing seems to be an Achilles heel of job growth. Its contribution to job creation was muted at 10 percent or 2 million people in FY23. The average earning of a person engaged in casual work was 40 percent lower than earnings of a salaried worker in 2022-23, assuming the casual labourer worked all 30 days in a month. | null | null | 2024-07-31 16:14 |
moneycontrol.com | https://www.moneycontrol.com/technology/zee-to-acquire-remaining-20-share-in-technology-platform-margo-networks-article-12783390.html | Zee to acquire remaining 20% share in technology platform Margo Networks | Zee Entertainment to acquire remaining stakes in its subsidiary Margo..Related stories. | Media companyZee Entertainmentsaid on July 31 that it will acquire remaining 20 percent stake in Margo Networks Private Limited. Zee already holds 80 percent stake in Margo, which offers technology platform to connect end consumers with various over the top players across media, commerce, and other industries. No governmental or regulatory approval is required for the acquisition and the acquisition will be completed approximately in two months, Zee said. Margo, which is a subsidiary of Zee, reported an operational revenue of Rs 95 lakh as on March 31, 2024. "Acquisition of 20 percent stake in Margo is for better administrative control and efficiency as a 100 percent subsidiary," Zee said. It further said, "The Board in its meeting held on 31 July 2024, has approved the acquisition of balance 10,000 equity shares 1.e. 20 percent stake of Margo for a total consideration of Rs 1 lakh, thereby, making it a 100 percent subsidiary of the company upon such acquisition." Zee management as part of its portfolio rationalisation initiative and conditions of merger was in the process of either liquidating/discontinuing /selling certain entities primarily Margo Networks Private Limited (Margo), the company said. "During the year ended 31 March 2024, the management of the company had estimated liability to fund the closure costs at Rs 3,240 lakh, which had been approved by the board and impairment of Rs 211 lakh were treated as exceptional items. Further, during the quarter ended 30 June 2024, the board approved the incremental closure costs amounting to Rs 750 lakh which has been accounted and presented under exceptional items," Zee said. Margo was incorporated on August 17, 2016 and during the last three financial years its operational revenue stood at Rs 95 lakh in FY24, Rs 2.1 crore in FY23 and in FY22 it was nil. Earlier this year in April, Moneycontrol had reported that Margo Networks Pvt Ltd, which offers internet connectivity under the brand name Sugarbox, shut its operations on March 22, putting 50-60 of employees out of work. The closure came amid the entertainment and media company’s deepening financial problems. Zee Entertainment, which is currently grappling with the fallout of its terminated merger deal with Sony, is cutting its workforce and has laid off 50 percent of the staff at its Technology & Innovation Centre (TIC) in Bengaluru. | null | null | 2024-07-31 15:58 |
moneycontrol.com | https://www.moneycontrol.com/news/business/moneycontrol-pro-panorama-chinas-slowing-economy-overshadows-middle-east-tensions-in-oil-markets-12783360.html | Moneycontrol Pro Panorama | China's slowing economy overshadows Middle East tensions in oil markets | China's weakening demand is a critical factor in the current oil price decline..Related stories. | Dear Reader, The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of. ÂDespite the ongoing hostilities in the Middle East, including repeated attacks between Israel and Hezbollah and terrorist actions against ships in Yemen, the oil market remains largely indifferent. Crude oil prices have been resistant to rising, even amid these geopolitical tensions. Brent and WTI crude are both heading towards their biggest monthly losses since 2023, currently down by around 8 percent in July. Recent data from the American Petroleum Institute (API) revealed a decline in US crude oil inventories by 4.49 million barrels for the week ending July 26, following a previous week's decline of 3.9 million barrels. Yet, even with these inventory drops, traders are increasingly building up short positions in crude oil while scaling back their long positions in gasoline—a key driver of oil demand growth. Gasoline long positions have now reached their lowest level in four years. Economic data from China has further rattled the oil market. China's manufacturing activity slipped to a five-month low in July, with the Purchasing Managers' Index (PMI) falling to 49.4, marking the third consecutive month of contraction. Factory gate prices have reached their worst level in 13 months, and employment remains in negative territory. As the world's largest importer of crude oil and the second-largest consumer after the US, China's weakening demand is a critical factor in the current oil price decline. In the first half of 2024, China's crude oil imports fell by 11 percent, and the outlook for the second half of the year remains subdued, leading analysts at Citigroup Inc to lower their growth forecasts for the country. Another potential influence on oil prices is the outcome of the upcoming US Federal Reserve meeting. While the Fed is expected to hold interest rates steady, markets will closely watch for any signals from Chair Jerome Powell that could indicate future monetary policy direction. The next significant event for the oil market is the meeting of the OPEC+ oil cartel. Although expectations were initially low, the recent price declines have led some analysts to anticipate further production cuts or an extension of existing ones. However, even if OPEC+ takes action, the broader sentiment in the oil market remains negative, largely due to concerns over China's slowing economic growth. In the end, while geopolitical conflicts and interest rate adjustments may cause short-term fluctuations, the medium-term trajectory of oil prices will be heavily influenced by China's economic performance. As the world's largest importer, China's demand, or lack thereof, is likely to be the decisive factor for oil prices, moving forward. Investing insights from our research teamCSB Bank Q1 FY25 – Soft quarter, but guidance encouraging Sumitomo Chemical India: Does the stock present an opportunity after the strong run-up? Intellect Design Arena: Quarterly show weak, but investment case strong Dixon Technologies: Blowout earnings with expanding coverage Navin Fluorine: Lacklustre Q1FY25; growth capex on track ideaForge Technology: Stock re-rating hinges on sustainable and predictable earnings Tata Consumer: Acquisition cost weighs on profitability What else are we reading? SEBI curbs combined with tax increases will take the wind out of the derivative market Decoding Economics | Stock picking is alive and well What the inflation targeting framework missed Growing remittances an excellent example of India’s demographic dividend SC judgement allowing states to tax mineral rights poses risk to industry Chart of the Day| Why Sovereign Gold Bonds may die a silent death Opinion | On technology, RBI must send a more nuanced message to banking industry It pays to be a lazy investor — but for how long?Â(republished from the FT) Rahul Gandhi scores on performance but questions on substance remain unanswered Who pays for defence? Myth and reality of military aid in international relations Will investors get good AI news this week? Don’t bet on Personal Finance Coming soon: Mutual funds to be governed by SEBI’s insider trading norms. Here’s what it means Tech and Startups See green shoots in IT hiring, GCCs make up 70% of mandate: Quess Corp CEO Markets Size does matter: Large fund houses lead the way in NFO launches Technical Picks:ÂIOC,ÂBharat Heavy Electricals,ÂChambal Fertilizers andGRSEÂ(These are published every trading day before markets open and can be read on the app). Shishir AsthanaMoneycontrol Pro  | null | null | 2024-07-31 15:02 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/indias-top-private-lenders-see-farm-loan-defaults-rising-amid-weak-rural-economy-12783344.html | India's top private lenders see farm loan defaults rising amid weak rural economy | India's top private lenders see farm loan defaults rising amid weak rural economy.Related stories. | Top Indian private lenders are seeing more farmers and rural borrowers delay loan repayments as unpredictable weather impacts output and rising agricultural costs stretch their incomes further, according to quarterly earnings reports and a dozen bankers. The largest five private banks have reported greater bad loan additions in the June quarter, mostly driven by rising dues in agriculture and microfinance loans, which are popular in rural areas. Microfinance loan disbursal slowed in April-June due to general elections and heatwaves, Sumant Kathpalia, chief executive officer of IndusInd Bank said last week, adding that rural areas were still recovering from impact of the pandemic. More than 40% of India's 1.4 billion people are dependent on agriculture, which has been hit in recent years by rising temperatures, patchy monsoon rains and policy interventions. The Indian government subsidies loans to farmers, and banks are mandated to give out farm loans, which have doubled during the last four years to more than 21 trillion rupees ($250 billion). As of March-end, banks' non-performing farm loans had eased from a year earlier, but remained elevated at 6.5% of total bad loans, as per latest central bank data. The country's biggest private lender HDFC Bank's farm loan slippage doubled in the three months to June from the previous quarter. Kotak Mahindra Bank said dues on small-ticket microfinance loans were rising. Delinquencies are rising in certain states of north and south India, Devang Gheewala, chief financial officer of Kotak Mahindra Bank said earlier this month. State-run banks are the biggest lenders to farmers, but private banks are increasingly tapping rural areas to meet the rising demand for credit. Most state-run banks have yet to report quarterly earnings. At least a dozen bankers told Reuters that defaults have risen in key agricultural states like Punjab and Haryana. They spoke on condition of anonymity as they are not authorised to speak to the media. Most attributed the defaults to income stress in the farm sector, driven by heat waves, unseasonal rains and higher input costs. Some political parties promising waiver of farm loans during the national elections that ended in early June also hurt, the bankers said. "A major reason for non-repayment has been political tactics," a senior official at a microfinance lender said. Bankers say they often go slow on recoveries. "We cannot go aggressive on recovery like we do for credit cards, personal loans because suicide cases of farmers, if any, due to such practices, can blow up into a socio-political issue," one banker said. | null | null | 2024-07-31 14:31 |
moneycontrol.com | https://www.moneycontrol.com/news/business/toyota-to-set-up-manufacturing-plant-in-maharashtra-likely-to-invest-rs-20000-crore-12783323.html | Toyota to set up manufacturing plant in Maharashtra; likely to invest Rs 20,000 crore | In a social media post on X, Maharashtra Deputy Chief Minister Devendra Fadnavis shared the investment figure of Rs 20,000 crore for the plant.Related stories. | Automaker Toyota Kirloskar Motor on Wednesday said it will set up a new manufacturing plant in Maharashtra at an investment of around Rs 20,000 crore. The company has inked a Memorandum of Understanding (MoU) with the Maharashtra government to examine the setting up of a greenfield manufacturing facility at Chhatrapati Sambhaji Nagar, Toyota Kirloskar Motor (TKM) said in a statement. Headquartered in Karnataka, TKM already has two manufacturing units located at Bidadi near Bengaluru. In Karnataka, the automaker, including its group companies, has invested more than Rs 16,000 crore and created close to 86,000 jobs in the entire value chain, it said.Toyota's cumulative export contributions also stand at around Rs 32,000 crore thus representing the company's export focus, it added. "Today's MoU signing marks a pivotal point as we stride into the next phase of growth in the country enabling us to contribute to enriching lives with qualitative mobility solutions locally and globally," TKM Managing Director and Chief Executive Officer Masakazu Yoshimura said. The proposed investment, once finalised, is expected to be made over a multi-year period, potentially contributing to substantial job creation and economic growth in the region. In a social media post on X, Maharashtra Deputy Chief Minister Devendra Fadnavis shared the investment figure of Rs 20,000 crore for the plant. "Transforming Maharashtra, Developing Marathwada!Reaffirming its commitment to India; Toyota Kirloskar Motors is set to launch a Green Field Manufacturing Facility in Maharashtra!" he posted. TKM currently has an installed production capacity of 3.42 lakh vehicles at its two Bidadi-based units. | null | null | 2024-07-31 14:06 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/ola-electrics-bhavish-aggarwal-responds-to-mapmyindias-notice-defends-ipo-pricing-strategy-12783278.html | Ola Electric's Bhavish Aggarwal responds to MapMyIndia’s notice, defends IPO pricing strategy | Aggarwal stressed that the company is prepared to address the situation as needed.. | Ola Electric founder Bhavish Aggarwal has addressed recent developments concerning a notice from MapMyIndia, stating, "It is opportunistic of MapMyIndia; there are opportunistic players everywhere. We will respond to them at the right time." Even though Ola Electric is not involved in the mapping business, Aggarwal stressed that the company is prepared to address the situation as needed. Regarding Ola Electric's upcoming IPO, Aggarwal commented, "We wanted to ensure that the pricing was set at a level that would generate significant excitement among investors." Aggarwal also clarified, "We haven't confirmed or denied plans to pause car production. Our current focus is on two-wheeler manufacturing, with our next step being motorbikes. Our primary goal is to build a robust ecosystem for electric vehicle production, which remains our main priority." | null | null | 2024-07-31 13:41 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/sc-to-decide-applicability-of-its-judgment-upholding-states-power-to-levy-tax-on-mineral-extraction-12782975.html | SC to decide applicability of its judgment upholding state's power to levy tax on mineral extraction | Supreme Court on mines and mineral extraction.Related stories. | A nine-judge bench of the Supreme Court on July 31 reserved its verdict on whether its judgment holding that states have the power to impose tax on mineral extraction will be applicable prospectively or retrospectively. During the course of the hearing, Solicitor General Tushar Mehta, who appeared for the Union government, told the court that making the judgement applicable retrospectively will have a big impact not only on private and public players involved in mineral extraction but on the economy as a whole. He suggested that the judgment be made applicable retrospectively in the interest of the economy. Attorney General Venkatramani told the court that minerals play a very important role in the country's development as they are used everywhere from nanotechnology to medical technology, he thus urged the court not to disrupt the sector by making the judgment applicable retrospectively. Senior advocate Rakesh Dwivedi, who appeared for Jharkhand, contended that not making the judgment applicable retrospectively would amount to travesty of justice. According to Dwivedi, many states had enacted laws levying tax on mineral extraction over 30 years ago, if the judgment were to be made applicable retrospectively, it would amount the states not benefiting from the law. A nine-judge Constitutionbench of the Supreme Court by a majority on July 24 held that the royalty payable on minerals under the Mines and Minerals (Development and Regulation) Act, 1957 is not a tax. The SC bench said states have the power to impose tax and levies such as cess on land in which the mineral is extracted from. Court held on on July 25 that royalty is a contractual consideration by a lessor for mineral rights. However, royalties are payments a user makes to the owner of an intellectual property. Justice Nagarathna was the sole judge in the nine judge bench to dissent with eight other judges. She held that royalty is not a tax and states did not have the competence to levy tax on land from which minerals are extracted. After the judgment was pronounced, one section of lawyer urged the court to make the judgment applicable prospectively while the others asked the court to make the judgement applicable retrospectively. A nine-judge Constitution bench headed by Chief Justice DY Chandrachud, which reserved its verdict on March 14 after hearing a batch of 86 appeals filed by different state governments, mining companies and public sector undertakings for eight days, pronounced the verdict. During the hearing, the top court had said the Constitution vests the power to impose tax on mineral rights not in Parliament alone but also the states and underlined that such authority should not be diluted. The issue arose after the 1989 verdict in the case of India Cements Limited's plea against Tamil Nadu by a seven-judge bench of the apex court which held that royalty was a tax. However, a five-judge bench of the apex court ruled in 2004 that there was a typographical error in the 1989 verdict and that royalty was not a tax. The dispute was then referred to a larger nine-judge bench. The top court heard a batch of 86 appeals filed by mining companies, public sector undertakings (PSUs) and state governments arising from conflicting verdicts passed by different high courts on the issue. | null | null | 2024-07-31 13:23 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/foreign-banks-purchases-of-indian-bonds-hit-record-high-in-2024-12783222.html | Foreign banks' purchases of Indian bonds hit record high in 2024 | Foreign banks' purchases of Indian bonds hit record high in 2024.Related stories. | Foreign banks have bought more than $16 billion worth of Indian bonds so far this year, taking only seven months to top the record purchases over the whole of last year, official data showed. The pick-up in activity came in the run-up to the inclusion of India's debt in the JPMorgan Emerging Market index last month and on hopes of better returns since interest rates are set to decline, several traders said. Moreover, the country's banking system liquidity surplus reached a near one-year high this month, also boosting demand, which is expected to stay strong, the traders added. WHY IT'S IMPORTANT The persistent purchases by foreign participants will reduce the pressure on local banks to absorb supply. Foreign banks and foreign portfolio investors, in particular, are likely to seek out short-term bonds, driving yields lower and steepening the yield curve. BY THE NUMBERS Foreign banks have bought bonds worth 1.37 trillion rupees ($16.37 billion) on a net basis so far in 2024, nearly a fifth of the year's gross supply, CCIL data showed. These purchases were a record 1.22 trillion rupees over the whole of 2023. The 10-year bond yield has fallen 9 basis points (bps) in July, while the five-year yield has slid 16 bps. KEY QUOTES There is room for yields to move lower and Barclays remains positive, said the firm's head of markets, Siddharth Bachhawat. "We retain our long duration view ... A strong macro backdrop, favourable demand-supply dynamics, growing foreign interest as well as discretionary interest – all augur well." Akshay Kumar, head of global markets, India, BNP Paribas, said, "I think foreign bank buying has been more concentrated in the shorter end of the curve, which is why that segment has rallied more." WHAT'S NEXT DBS expects the 10-year bond yield to test 6.75% by October, while Citi sees it at 6.70% by March -- an average fall of about 18 bps from current levels. The short-end could see yields dip by as much as 25 bps depending on the rate-cut cycle, said Alok Sharma, head of treasury at ICBC. | null | null | 2024-07-31 13:00 |
moneycontrol.com | https://www.moneycontrol.com/news/business/zydus-gets-mexican-regulatory-approval-to-market-cancer-treatment-product-12783189.html | Zydus gets Mexican regulatory approval to market cancer treatment product | Zydus gets Mexican regulatory approval to market cancer treatment product. | Zydus LifesciencesLtd on Wednesday said the Mexican regulatory authority has granted marketing approval for Mamitra, a Trastuzumab biosimilar used to treat various types of cancer. Following the approval by Mexican regulatory authority COFEPRIS (Federal Commission for the Protection Against Sanitary Risk), for Mamitra, the drug will be marketed in different strengths of 150 mg and 440 mg, Zydus Lifesciences said in a regulatory filing. The product is used in the treatment of breast cancer and advanced gastric cancer. Breast cancer has become the most diagnosed cancer in Mexico, overtaking prostate and colorectal cancers, the company added. "The approval of Mamitra in Mexico allows us to expand the reach of our biosimilar portfolio to newer markets and enable access to affordable life-saving therapies, particularly in oncology," Zydus Managing Director, Dr Sharvil Patel said. Developed in-house by the research team at the Zydus Research Centre (ZRC), the Trastuzumab biosimilar was launched in 2016 in India under the brand name Vivitra. Since then, an estimated 1 lakh patients have been treated with the therapy, the company added. | null | null | 2024-07-31 12:45 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/delhi-hc-orders-spicejet-to-pay-rs-20-crore-to-engine-lessors-12783165.html | Delhi HC orders SpiceJet to pay Rs 20 crore to engine lessors | The court also instructed SpiceJet's CFO to appear before the bench if the payment is not made on time.. | The Delhi High Court has mandated SpiceJet to settle â‚ą20 crore in dues to its engine lessors by August 8. The court also instructed SpiceJet's CFO to appear before the bench if the payment is not made on time. The directive follows a plea filed by Team France and Sunbird France, which leased four engines to SpiceJet and claimed unpaid dues. The High Court will review the payment status and resume hearings on August 8. (This is a developing story, more details to follow) | null | null | 2024-07-31 12:34 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/ind-ra-ups-fy25-gdp-growth-forecast-to-7-5-12783169.html | Ind-Ra ups FY25 GDP growth forecast to 7.5% | Ind-Ra ups FY25 GDP growth forecast to 7.5%.Related stories. | India Ratings & Research (Ind-Ra) on Wednesday upped India's GDP growth forecast for the current fiscal to 7.5 per cent from 7.1 per cent projected earlier on expectation of improved consumption demand. It said The ongoing growth momentum led by government capex, deleveraged balance sheets of corporates/banks, and incipient private corporate capex cycle has now found support from the union government budget. The budget promises to bolster agricultural/rural spending, improve credit delivery to MSMEs and incentivise employment creation in the economy. "Ind-Ra believes these measures would help in broad basing the consumption demand," the rating agency said while revising up its GDP growth estimate for FY25 to 7.5 per cent. Ind-Ra's growth projection is higher than that of RBI which projected FY25 growth at 7.2 per cent and Finance Ministry's Economic Survey which estimated GDP expansion between 6.5-7 per cent. Ind-Ra expects Private Final Consumption Expenditure (PFCE) to grow to a 3-year high of 7.4 per cent in FY25, from 4 per cent in FY24. The consumption demand is highly skewed, as it is driven by the goods and services largely consumed by households belonging to the upper-income bracket. "However, an above-normal monsoon coupled with the measures announced in theunion budgetFY25 is expected to correct it, by boosting the demand of goods and services consumed by the rural and households belonging to the lower income bracket," Ind-Ra said. Although food inflation continues to be a risk, the expectation of retail inflation in FY25 averaging lower than in FY24 will support the real wage growth, it added. | null | null | 2024-07-31 12:33 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/adani-group-mulls-investment-of-2-billion-in-vietnam-port-12783139.html | Adani Group mulls investment of $2 billion in Vietnam Port | Adani ports. | Adani Group is considering investment of more than $2b in Lien Chieu port, Vietnam's coastal city of Danang, according to a posting on the Southeast Asian country's govt website, citing co.'s chairman Gautam Adani in a meeting with Vietnamese PM Pham Minh Chinh in New Delhi, reported Bloomberg. The company also looks to invest in a thermal power project in Vietnam's south central coastal province of Binh Thuan, with total investment expected at $2.8 billion. It also plans to cooperate with Vietnamese partners in aviation and logistics sectors, including construction of Long Thanh and Chu Lai airports, Bloomberg added. Last month, Adani Ports and Special Economic Zone Lt also announced long-term investments worth around $10 billion in Vietnam, including $3 billion in ports and green energy there. Adani said the company spent time researching and assessing opportunities for long-term investment in the Southeast Asian country. Along with the seaport and logistics sectors, the ports operator is also looking at investing in the energy sector and digital technology of the nation. This is a developing story. Please check back for more updates | null | null | 2024-07-31 12:12 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-wont-reimpose-foreign-investment-limits-on-5-year-7-year-10-year-bonds-government-source-12782955.html | India to keep popular bond tenors free of foreign investment curbs: Report | India won't reimpose foreign investment limits on 5-year, 7-year, 10-year bonds: Government source.Related stories. | India has no plans to reimpose foreign investor limits on new issuances of 5-year, 7-year and 10-year bonds, a government source aware of the development said on Wednesday, after curbs were imposed on bonds with longer tenors. On Monday, the Reserve Bank of India said that in consultation with the government it had decided that foreign portfolio investors (FPIs) would no longer have access to new Indian government bonds with 14-year and 30-year tenors under the fully accessible route (FAR). Foreign investors see India's decision to return to curbs on purchases of some government securities as a flip-flop in policy that may force them to revise investment strategies, global fund managers said on Tuesday. "One objective of excluding 14-year and 30-year securities is to focus FPI demand in securities up to 10 years and thereby improve liquidity in this segment," the source said on condition of anonymity as the discussions are not public. "In future, securities of 5-year, 7-year, and 10-year are planned to be kept under the FAR," the source added. India could choose to reimpose foreign investment limits on some government securities, if the inclusion of local bonds in JPMorgan's emerging market debt index leads to a deluge of inflows, India's Economic Affairs Secretary Ajay Seth told Reuters in an interview last week. The decision on exclusions from the FAR category is not based on any consideration of volatility, as 5-year and 10-year securities have attracted the most attention of foreign investors, the source said. "The market has adequate liquidity to absorb any volatility arising from inflows," the person added. Foreign funds can continue to invest in all securities, including the 14-year and 30-year bonds, through the secondary market, as against a limit of 6.0% of outstanding stock accessible to foreigners the actual usage is quite low, the source said. "There is adequate space in this category." | null | null | 2024-07-31 11:47 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/indias-july-diesel-jet-fuel-exports-to-singapore-australia-set-to-hit-2-12-year-high-12783060.html | India's July diesel, jet fuel exports to Singapore, Australia set to hit 2-1/2-year high | India's July diesel, jet fuel exports to Singapore, Australia set to hit 2-1/2-year high.Related stories. | India's diesel and jet fuel shipments to Singapore and Australia are set to hit the highest levels in 2-1/2 years in July as sellers looked east with demand tepid from Europe, according to industry sources and shipping data. The jump in middle distillates exports from swing supplier India to the Asia Pacific will likely cap prices and refiners' margins in the region, while preventing a further build-up in inventories in Europe which have been weighing on prices there, the sources said. India, one of Asia's leading fuel exporters, is expected to ship between 157,000 bpd and 224,000 bpd of diesel and jet fuel to Singapore and Australia in July, estimates from LSEG, Vortexa, Kpler and two trade sources showed, the highest since end-2021 and early 2022. This would be about 30% higher than June. The volume to Australia is expected to surge to a more than two-year high of 450,000 metric tons, LSEG Oil Research said in a note. BP and Vitol shipped most of the volumes to Australia where they have fuel distribution businesses, while Shell shipped cargoes to Singapore, Kpler and LSEG data showed. Planned refinery maintenance in Australia prompted some local refiners to buy more spot cargoes than usual, one of the sources added. Petrol & Diesel Rates Yesterday Saturday, 07th September, 2024 PetrolRate in Mumbai Yesterday Saturday, 07th September, 2024 DieselRate in Mumbai Yesterday Also, the rise in Australia's imports comes after a government mandate to increase refined products stockpiles that took effect from July, two Asian refinery sources said. Meanwhile, India's middle distillates exports to Europe are likely at a six-month low of 142,000 bpd in July, LSEG data showed. Europe's imports from Asia have recently been curtailed by robust domestic supplies and slower than expected domestic demand, some analysts say. Some traders diverted their cargoes to Asia after freight rates on the India-Europe route rose, one Singapore-based trade source said. The cost of chartering a long-range (LR) tanker from India to the U.K. to carry 65,000 tons of diesel or jet fuel averaged at $4.7 million, or $72 per ton, from June to mid-July, SSY Tanker data showed. The shipping cost is double what a trader could make from moving Asian products to Europe. However, several traders said it was unclear if India's exports to Singapore and Australia would be sustainable as the arbitrage economics for shipments to Europe has been improving after freight rates on this trade route dipped recently. Shipping costs on the India-UK route slipped back to five-month low of $3.7 million - $57 per ton - on July 26, SSY Tankers data showed. "This momentum could slow in the next few months as several Indian refiners are entering into planned maintenance this quarter, which would see lower refinery supplies," said Vortexa's head of APAC analysis Serena Huang, referring to India volumes bound for Asia. (1 ton = around 7.45 barrels for gasoil) (1 ton = around 7.88 barrels for jet fuel/kerosene) | null | null | 2024-07-31 11:36 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/incentives-worth-rs-9721-cr-claimed-under-pli-scheme-for-9-sectors-piyush-goyal-12783003.html | Incentives worth Rs 9,721 cr claimed under PLI scheme for 9 sectors: Piyush Goyal | Incentives worth Rs 9,721 cr claimed under PLI scheme for 9 sectors: Piyush Goyal.Related stories. | Commerce and Industry Minister Piyush Goyal on Tuesday informed the Lok Sabha that incentives worth Rs 9,721 crore have been claimed under the PLI scheme for nine sectors, including large scale electronics manufacturing and pharmaceuticals. In a written reply to a question, Goyal said that an actual investment of Rs 1.23 lakh crore has been realised till March 2024 across 14 sectors, which has resulted in incremental production/ sales of over Rs 10.31 lakh crore and employment generation of around 8 lakh. "Incentive amount of Rs 9,721 crore have been claimed under PLI scheme for 9 sectors, namely large scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing, white goods and drones and drone components," he said. The production linked incentive (PLI) schemes are to attract both domestic and foreign investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector, and make Indian companies and manufacturers globally competitive. He added that there is evidence of increasing foreign investment also in several PLI sectors. "For example, Apple, a global smartphone company, has shifted its suppliers to India viz. Foxconn, Wistron and Pegatron," he said. Goyal also said that most of the projects are at the implementation stage and will be filing incentive claims in due course. In a separate reply, the minister said that settling PLI claims quarterly is anticipated to boost the performance and sentiment of applicants by improving cash flow, faster disbursement of incentives and enhancement in the efficiency of fund utilisation. In a separate reply, Minister of State for Commerce and Industry Jitin Prasada said that India has granted Geographical Indications (GI) tag to as many as 643 products as on July 24 this year, Parliament was informed on Tuesday. Once a product gets this tag, any person or company cannot sell a similar item under that name. This tag is valid for a period of 10 years following which it can be renewed. A GI is primarily an agricultural, natural or manufactured product (handicrafts and industrial goods) originating from a definite geographical territory. Typically, such a name conveys an assurance of quality and distinctiveness, which is essentially attributable to the place of its origin. "As on July 24, 2024, the office of Geographical Indications Registry has registered 643 GI applications, of which 605 GI applications are Indian," Prasada said. In another reply, he said that the Indian Patent Office has granted 1,03,057 patents in 2023-24. | null | null | 2024-07-31 11:03 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/why-did-scs-9-judge-bench-hold-that-states-have-the-power-to-levy-tax-on-mineral-extraction-12782825.html | Why did SC's 9-judge bench hold that states have the power to levy tax on mineral extraction? | Supreme Court judgment on mineral extraction.Related stories. | On July 31, a nine-judge bench of the Supreme Court (SC) will decide whether its judgment holding that states have the power to impose tax on mineral extraction will be applicable prospectively or retrospectively. After the judgment was pronounced on July 24, the central government urged the court to make its applicability prospectively, while the states want it retrospectively. The Union of India said that if the judgment is made applicable retrospectively, splitting the revenues already earned between the Centre and the states would be a problem. Thus, the court decided to debate on the applicability of the judgment for a brief while on July 31. The judgment, which took 25 years in the making, alsoheld that the royalty imposed by the central governmentto extract minerals is not a tax. The dispute on whether royalty was a form of tax dates back to the 1960s when a cement manufacturer challenged the Tamil Nadu government’s cess on the land from which mineral was extracted. Moneycontrolexplains what the case is about and what made a nine-judge bench hear it and what was held by the apex court ultimately. What is the case about? In 1957, the central government brought in the Mines and Minerals (Development and Regulation) Act (MMDR Act).  The Act gave the Centre full control of mines and minerals. The government then leased out land in which minerals were present to private players, for aroyalty for extraction of minerals. Consequently, the central government undertook a periodical exercise for the determination of royalty rates, after taking into consideration the fiscal requirement of the states, based on the assumption that states have no right to levy tax on minerals over and above the royalty. This would mean that while minerals were extracted from lands located within a state, states would not be able to levy taxes for the use of land. The royalty amount was fixed by the central government and the states would get a share of it. Since the Constitution empowered states to levy taxes within their borders, they claimed that they could levy tax for the usage of the land that is situated within their geographical boundaries. However, the Centre contended that since it had the control of the minerals under the MMDR Act, states could not levy any tax in addition to the royalty that the Centre was already levying. In 1963, the Tamil Nadu government granted a mining lease to India Cements for extracting limestone and kankar, and the company was to pay royalty under the MMDR Act. However, the Tamil Nadu government imposed a local cess for the use of the land in which minerals were present. India Cements took the state government to the Madras High Court, challenging this cess. The high court held that the Tamil Nadu government was competent to levy such a cess under Entry 49 of the State List. Furthermore, the HC noted that the cess was imposed on the usage of land and not on extracting minerals. India Cements appealed against the decision in the SC , and a seven-judge bench was formed to look into the issue in the 1980s. The court held that the royalty was indirectly related to the minerals extracted and hence “royalty is a tax” under the Mines Act. A cess on royalty being a tax on royalty was beyond the state’s legislative competence. In 1992, the Calcutta High Court held a cess on coal by West Bengal as unconstitutional, saying the state did not have the power to do so under the Constitution. The Bench noted that the cess imposed by West Bengal was similar to the one struck down in 1989 in the India cements case. In 2000, the Allahabad High Court upheld Section 35 of the UP Special Area Development Authorities Act, 1986, which levied a cess on minor minerals, creating a difference of opinion within the country. The issue ultimately reached the Supreme Court, and, in 2004, a five-judge bench of the apex court said that there was a typographical error in the 1989 verdict and that royalty was not a tax. However, since a seven judge bench had already ruled on the dispute, the case was referred to a nine judge bench. What did the court hold? The nine-judge bench heard the case in March 2024 for eight days. Attorney General R Venkataramani, appearing for the Centre, had contended that the Union had overriding powers with regard to taxing mines and minerals. Solicitor General Tushar Mehta, also representing the Centre, said the entire architecture of the MMDR Act is a limitation on the states' legislative power to impose tax on minerals, and under the law, the central government has the power to fix royalty. The court, in its judgment, held that royalty is not a tax. “Royalty is a contractual consideration paid by the mining lessee to the lessor for enjoying mineral rights. The liability to pay royalty arises out of the contractual conditions of the mining lease,” it said. Holding that the states had the power to levy taxes on mineral extraction, the SC said: “The legislative power to tax mineral rights vests with the state legislatures.” The judgement held that states can use mineral yield or value as a measure to tax mineral rights and mineral-bearing lands, and that the MMDR Act does not impose limitations on the states' taxing powers. | null | null | 2024-07-31 10:41 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/adani-group-may-consider-1-billion-bid-for-jaypees-realty-assets-reports-12782819.html | Adani Group may consider $1-billion bid for Jaypee’s realty assets: Reports | The committee is expected to evaluate Adani’s bid as part of the ongoing insolvency proceedings..Related stories. | Adani Group is likely to make a $1-billion bid for bankrupt Jaypee Group’s vast realty assets, including premium apartment complexes, villas, and golf courses, in the National Capital Region (NCR), Mint has reported, marking the Gautam Adani-led conglomerate’s entry into the country's largest property market. Adani’s bid, if successful, could expand its real estate portfolio fourfold. The conglomerate's offer is part of a comprehensive resolution package for Jaypee's flagship entity, Jaiprakash Associates Ltd (JAL), which is entangled in the largest bankruptcy case in India, with over Rs 50,000 crore in default, the report said. Also Read |ÂPromoters pump Rs 23,000 crore in 5 Adani Group companies in June quarter Moneycontrol couldn’t verify the report independently. Adani is not only eyeing Jaypee’s real estate assets but is also preparing a bid for the company’s cement assets. The proposed resolution package includes an estimated Rs 15,000 crore offer to the lenders, aiming to acquire both Jaypee’s real estate and cement businesses. Jaypee Group’s real estate holdings include high-profile projects such as the 452-acre Jaypee Greens township in Greater Noida, featuring luxury villas, apartments, and a golf course. Other assets include Jaypee Greens Wish Town Noida, a sprawling 1,063-acre township, and the Jaypee Greens Sports City, which boasts a motor racing track along the Yamuna Expressway. The acquisition would place Adani in direct competition with other major players in the Indian real estate sector such as the Godrej Group, Tata Group, Larsen & Toubro, and the Raymond Group. Currently, Adani’s real estate ventures are largely concentrated around Mumbai and valued at approximately Rs 6,000 crore, excluding significant projects like the Dharavi slum redevelopment and a major land parcel in Bandra. Also Read |ÂAdani Group, Wilmar exploring to sell equal stakes in JV Adani Wilmar The move hints Adani’s aggressive expansion strategy in real estate following its recent acquisition of prime land at Bandra Reclamation and its ongoing plans to redevelop significant properties in Mumbai. The resolution process for Jaypee Group involves a committee of creditors, including major financial institutions such as the State Bank of India, ICICI Bank, and LIC. The committee is expected to evaluate Adani’s bid as part of the ongoing insolvency proceedings. Adani's bid, along with its other real estate ventures, reflects a broader strategy to consolidate its position in India’s booming realty market. The deal’s progress will depend on the approval from Jaypee Group’s top creditors and the insolvency framework set by the National Company Law Tribunal, the report said. Emails seeking comments from representatives of Adani Group, Jaypee Group, and key creditors remained unanswered, the report said. | null | null | 2024-07-31 09:35 |
moneycontrol.com | https://www.moneycontrol.com/news/business/godrej-properties-acquires-46-acre-land-in-indore-for-plotted-development-12782843.html | Godrej Properties acquires 46-acre land in Indore for plotted development | Godrej Properties acquires 46-acre land in Indore for plotted development. | Godrej PropertiesLtd on Wednesday said it has acquired around 46-acre land in Indore for plotted development. The development on this land will primarily comprise plotted residential units and will offer an estimated saleable area of around 1.16 million square feet, the company said in a regulatory filing. Godrej Properties did not mention whether it has purchased land outright or tied up with landlords for joint development. The financial details have also not been disclosed. Gaurav Pandey, MD & CEO, Godrej Properties, said the company has entered in Indore, Madhya Pradesh with this acquisition. "Residential plotted development has gained significant traction in recent years and the Indore-Ujjain Road is a promising micro-market to expand our presence in this space. This aligns well with our ongoing growth strategy of entering fast-growing cities from a plotted development perspective," he said. Godrej Properties is one of the leading real estate developers in the country. It has a major presence in the Delhi-NCR (National Capital Region), Mumbai Metropolitan Region (MMR), Pune and Bengaluru markets. In the last financial year, Godrej Properties emerged as the largest listed real estate firm in terms of sales bookings by selling properties worth over Rs 22,000 crore. | null | null | 2024-07-31 09:29 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/tesla-zeroes-in-on-3-states-for-potential-manufacturing-unit-reports-12782755.html | Tesla zeroes in on 3 states for potential manufacturing unit: Reports | The company has engaged in multiple discussions to find a local partner, particularly considering a manufacturing site in Pune..Related stories. | Maharashtra, Tamil Nadu and Gujarat are leading the race for Tesla’s potential manufacturing unit, the Business Standard has reported amid talks of Elon Musk’s company putting its India investment plans on hold. The final decision will likely hinge on Tesla's product strategy and local partnerships, the report quoted sources as saying. If Tesla aims to focus on a low-cost model for the domestic market, Maharashtra could be the preferred location. Conversely, Tamil Nadu may be selected if the emphasis shifts to exporting vehicles, thanks to its well-established automotive ecosystem and port access. Gujarat remains a potential option, contingent on securing substantial subsidies from both state and the Centre to offset logistics costs, the report said. Moneycontrol couldn’t verify the report independently. Also Read |ÂTesla recalling more than 1.8M vehicles due to hood issue The electric vehicle maker has engaged in multiple discussions to find a local partner, particularly considering a manufacturing site in Pune. Maharashtra’s proximity to key sales regions like Mumbai and the National Capital Region (NCR) makes it an attractive choice for targeting domestic buyers. Tamil Nadu’s advantages include its robust infrastructure and port facilities, which support export-focused strategies. Despite these considerations, Tesla’s India plans have faced delays. Reports suggest that Musk’s team has not pursued further discussions with Indian officials after he put off his India visit in late April. The slowdown is attributed to capital issues within Tesla and a strategic re-evaluation of its Indian investments. Do Not Miss |ÂWhy India is a perfect fit for Elon Musk’s Tesla Tesla’s global performance has also been under pressure, with deliveries falling for the second consecutive quarter in June due to stiff competition in China and sluggish demand for its existing models. Its new Cybertruck, too, got a tepid response. Also Read |ÂTesla suppliers eye expansion in India, states roll out red carpet: Report Tesla’s competitor VinFast has already chosen Tamil Nadu for its operations, benefiting from quicker import and export processes. The Indian government has incentivised such investments by reducing taxes on imported electric vehicles to 15 percent for cars priced at $35,000 or above, provided that companies commit $500 million in investment and establish a manufacturing plant within three years. | null | null | 2024-07-31 09:12 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/jsw-cement-eyes-stake-in-orient-cement-amid-industry-consolidation-report-12782730.html | JSW Cement eyes stake in Orient Cement amid industry consolidation: Report | JSW Cement is also planning to list its cement business next year, and acquiring OCL could facilitate a reverse merger and expedite this process..Related stories. | JSW Cement, led by Sajjan Jindal, has initiated a bid to acquire promoter stake in Orient Cement Ltd (OCL) from CK Birla, TheEconomic Timeshas reported. JSW Cement joins the Aditya Birla and Adani groups, which have been pursuing assets across the country amid a wave of consolidation in the cement industry. The promoter stake in OCL, currently held by the Birla family and associated private investment vehicles, stands at 37.9 percent. An acquisition of the stake would also trigger an open offer for an additional 26 percent from minority shareholders. With OCL’s shares having surged 56 percent over the past three months in anticipation of a deal, the 63.9 percent stake could be valued at around Rs 4,546.54 crore, given the company’s market capitalisation of Rs 7,115.09 crore, the report said. JSW Cement’s bid comes as a significant development in the industry. In 2022,ÂJSW Cement, Adani, and Aditya Birla competed fiercely for the $6.5 billion acquisition of Holcim’s India assets, the largest M&A deal in India’s building materials sector. Adani emerged as the victor, becoming the second-largest player in the market overnight. Since then, Adani and Aditya Birla have acquired seven companies between them. Moneycontrolcouldn’t verified the report independently. Recent industry activity has seen Adani andÂUltratechÂfocus on southern India, with Adani acquiring Penna Cement in June andÂUltratech increasing its stake in India Cements to a majority control on July 28. JSW Cement has intensified its efforts to acquire OCL, viewing it as a strategic opportunity to strengthen its position in the market. After the Heidelberg and Penna Cement setbacks, the focus has shifted to OCL, which is considered a medium-sized asset and has been on JSW’s radar since the sale process was initiated. JSW Cement is also planning to list its cement business in 2025 and acquiring OCL could facilitate a reverse merger and expedite this process, the report said. Despite multiple attempts, messages and calls to Birla Group chairman CK Birla and OCL MD and CEO Deepak Khetrapal remained unanswered. A JSW spokesperson declined to comment, the report said. | null | null | 2024-07-31 08:59 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/reserve-bank-of-india-to-hold-rates-in-august-first-cut-in-q4-12782744.html | Reserve Bank of India to hold rates in August, first cut in Q4 | Reserve Bank of India to hold rates in August, first cut in Q4.Related stories. | The Reserve Bank of India (RBI) will keep interest rates steady for a ninth straight meeting in August due to persistently high inflation, with a slim majority of economists in a Reuters poll expecting the first rate cut next quarter. A sharp spike in food prices drove inflation in Asia's third-largest economy to a five-month high of 5.08% in June, well above the RBI's 4% medium-term target, suggesting the central bank will be wary of easing monetary policy too soon. With gross domestic product (GDP) growth of around 8% over the past few years - the fastest among major world economies - and inflation not expected to fall to 4% anytime soon, the RBI has little reason to rush an interest rate cut. All 59 economists in the latest Reuters poll predicted the RBI would hold the repo rate at 6.50% at the conclusion of its August 6-8 meeting. It was the first rates survey taken after the July 23budget, in which the government kept borrowing targets in check. "We still believe the RBI will keep rates on hold at the upcoming meeting...but expect to see a first rate cut in Q4. With the headline number picking up again in June, inflation has remained too high for policymakers to consider a dovish move just yet," said Alexandra Hermann, lead economist at Oxford Economics. "Given economic growth momentum is still strong, the RBI faces less of a trade-off between inflation and growth and can hence keep interest rates higher for longer to rein in inflation without risking to cause cracks in the economy." Inflation was expected to average 4.5% this fiscal year and next, according to a separate Reuters poll. It has remained above the central bank's mid-point target of 4.0% for nearly five years. All respondents said any easing would come later than a first rate reduction from the U.S. Federal Reserve, expected in September. The median forecast from the poll showed a first cut of 25 basis points to 6.25% next quarter - a view held since May, and more dovish than financial markets pricing of no reduction this fiscal year, which ends in March 2025. A 57% majority said a first cut would come in Q4, but there was no majority on where the repo rate would end the year. Nearly half of the economists surveyed, 25 of 54, expected 6.25% at year-end, 23 predicted it would remain said 6.50%, five said 6.00%, and just one forecast 6.35%. While a smaller number of forecasters provided rate views well into next year, medians showed no cut beyond 6.00%. All respondents said any easing would come later than a first rate reduction from the U.S. Federal Reserve, expected in September. "We still need to see how things pan out because a September cut by the Fed doesn't necessarily translate into an October cut by the RBI," said Kunal Kundu, India economist at Societe Generale. "If the growth potential is indeed higher, there is less necessity for the RBI to cut the policy rate." | null | null | 2024-07-31 07:44 |
moneycontrol.com | https://www.moneycontrol.com/news/business/akasa-air-eyes-flights-to-asias-tourist-hotspots-12782724.html | Akasa Air eyes flights to Asia’s tourist hotspots | Akasa Air eyes flights to Asia’s tourist hotspots.Related stories. | India’s Akasa Air plans to add destinations across Southeast Asia and the Indian subcontinent to tap the booming demand for overseas air travel in the world’s most-populous nation. The Mumbai-basedbudgetcarrier is gearing up to start flights to Kathmandu in Nepal and Bangladesh’s capital Dhaka, Praveen Iyer, chief commercial officer at Akasa’s parent SNV Aviation Pvt, said in an interview. Other travel hotspots such as Thailand, Vietnam, Malaysia and Indonesia are also on the airline’s radar, he said. “Indians in general love traveling. That prompts us to look at the next set of expansion,” Iyer said. Outbound traffic from India starting October is “very strong” with Southeast Asian destinations emerging as big contributors, he said. The rapid ramp up by the fledgling airline — which begun flying two years ago and has added five overseas routes this year — underscores the demand for air travel, as Indians get wealthier and countries ease visa restrictions for its citizens. Akasa is also preparing for intensifying competition as its local rivals bulk up: Tata Group-owned Air India and Vistara are merging while market leader IndiGo plans to fly long-haul international routes. Meanwhile, at least a half-dozen overseas carriers such as Etihad Airways and Malaysia Airlines have added or introduced flights to Indian cities. The carrier ordered 150 Boeing 737 Max jets in January, pushing its total order book to 226 jets, due to be delivered over the next eight years. Akasa aims to expand its short-haul international network using its narrowbody fleet that is capable of flying routes of up to six hours. It began overseas operations in March with services to Doha from Mumbai and has added more Gulf destinations including Abu Dhabi and Jeddah. Pets on BoardClosely held Akasa has already eked out a 4.7% share so far this year in the highly competitive Indian market, which has seen multiple carriers go bust in recent years. IndiGo controls 61% of the market while Air India had 14.2%, according to data from India’s aviation regulator. With a fleet of 24 jets flying 49 routes, Akasa has narrowed in on niche offerings such as allowing pets on board. It has carried 3,700 pets since implementing the policy in Nov. 2022. Akasa does not plan to raise funds and is “well capitalized,” Iyer said, declining to provide additional details or the carrier’s path to profitability. Akasa Air’s expansion comes as India’s aviation industry becomes increasingly consolidated, and its larger rivals try to introduce new products to entice customers. Under Tata’s ownership, erstwhile state-owned Air India will fold in Vistara, while low-cost unit Air India Express will combine with AIX Connect. IndiGo is expected to unveil a new premium cabin soon. Both IndiGo and Air India have placed record aircraft orders with aircraft manufacturers. “We will always be around two 800-pound gorillas, right? One is the Tata group and the other is IndiGo. That’s the reality,” said Iyer. “How we build our network is what matters to us.” | null | null | 2024-07-31 07:06 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/trade-minister-goyal-pulls-up-industry-for-apathy-towards-govts-efforts-to-make-in-india-12782664.html | Goyal pulls up industry for apathy towards govt's efforts to promote make-in-India | Commerce Minister Piyush Goyal.Related stories. | Commerce minister Piyush Goyal on July 30 came down heavily on domestic industry for their lack of ideas and initiatives on a range of policies by the government, including ease of doing business and Make in India. Ironically, speaking at an event organised by apex industry body Confederation of Indian Industry (CII), Goyal said, "When I appeal to you that one person can you use a (made-in-India) product by another person, you say you can save if you import that same product. Are you even worried about India's foreign exchange? Foreign exchange is not your responsibility! It is the RBI's and government's responsibility!" Goyal also criticised the industry for not actively taking part in committees tasked to design and fine-tune government policies such as the production-linked incentive scheme (PLI). "PLI scheme came out of a SCALE committee (Steering Committee on Advancing Local value-add and Exports). Pawan Goenka headed it. I want to know which industry partners of CII attended and took part in the SCALE committee meetings or recommendations actively. FICCI and Assocham were never part of these meetings. So, it is important you make up your mind. You tell us how do we initiate change?" Also read:ÂIndia Inc's resistance on tax concessions could hinder FTAs with UK, EU, says Piyush Goyal Pawan Goenka, IN-SPACe chairman and former chief executive officer of Mahindra & Mahindra used to head the SCALE committee and played a key role in designing the PLI scheme. The commerce minister urged the industry to be more demanding and active in aiding policies that are being envisaged and implemented by the government. He further pointed out the low levels of participation from the industry to help improve policies around Ease of Doing Business (EODB) and National Single-window System (NSWS). The minister also asked industry to step up on ideas to help reduce the compliance burden of businesses. The minister added that Indian industry's resistance on tax concessions for goods sent to partner nations could hinder the country's ability to clinch key trade pacts with the likes of United Kingdom (UK) and European Union (EU). This is not the first time that the commerce minister has expressed disappointment over the lack of initiative and suggestions from the industry towards policies of the government. On July 10, Goyal revealed that he was "struggling to prepare Jan Vishwas II" amid lack of ideas from the private sector. | null | null | 2024-07-30 23:02 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/sovereign-gold-bonds-will-get-at-least-12-total-return-revenue-secy-12782600.html | Sovereign gold bonds will get at least 12% total return: Revenue Secy | The current interest rate for the Sovereign Gold Bond Scheme is 2.5 percent per annum.Related stories. | The sovereign gold bonds will get at least 12 percent total return, including interest, for the investors despite the Union budget cutting customs duties on gold and silver to 6 percent from 15 percent, Revenue Secretary Sanjay Malhotra said on July 30. “I want to assure that despite the rate reduction in gold import duty, the sovereign gold bonds nearing final redemption will still get at least 12 percent total return, if not 12.7-12.8 percent. Even 12 percent return is not low,” Malhotra said at the post-Budgetsession at the PHD Chamber of Commerce and Industry. Till now, the investors have received approximately 9-11 percent return per annum and on top of that an interest of 2.5 percent, a senior government official had earlier told Moneycontrol. In July 2022, the import duty on gold was increased due to prevailing circumstances, including a worsening current account deficit (CAD) at that time as a measure to curb imports. “We are now in a comfortable position in the current account deficit,” he said. Investors who participated in the SGB scheme 2016-17 -series 1, issued in August 2016, are nearing their final redemption, which is set for the first week of August 2024. The original issue price of Sovereign Gold Bond 2016-17 -Series I was Rs 3,119 with an annual interest rate of 2.75 per cent. The redemption price of SGBs is calculated using the average closing price of 999 purity gold as published by the India Bullion and Jewellers Association Ltd for three business days preceding the redemption date. Investors pay an issue price and the bonds get redeemed on maturity. The current interest rate for the Sovereign Gold Bond Scheme is 2.5 percent per annum, the interest rate is fixed for the entire tenure of the bond, which is eight years. The gold bond interest is credited to the investor’s account every six months. There hasn’t been an issue of Sovereign Gold Bonds since February this year. Moneycontrol had earlier reported on July 25 that the government may scale back or even discontinue the Sovereign Gold Bonds scheme, which it considers too expensive. | null | null | 2024-07-30 19:51 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/capex-now-top-priority-for-the-government-mc-analysis-12781501.html | Capex now top priority for the government: MC Analysis | Education and health expenditure has not been the primary focus of government.Related stories. | While India has upped its spend on building roads and highways to 3.4 percent of GDP in FY25 from 1.7 percent in FY14, its spending on education has been on a decline. Education spending as a share of GDP is set to decline to 0.37 percent in FY25, from 0.63 percent in FY14. Data shows that the government has directed much of its funding priorities towards building infrastructure, but health and education have not been accorded a similar importance, at least if measured in terms of spending as a percentage of GDP. In FY24, the government spent 0.44 percent of the GDP on education compared with 0.63 percent a decade ago. Education spending is set to decline further in FY25 to 0.37 percent of the GDP, as the government is expected to allocate Rs 10,000 crore less to the department of higher education. On the other hand, health spending at 0.3 percent of the GDP has remained constant over the two decades. Of course, spending on these sectors as a percentage of GDP is not the only gauge to measure the effectiveness and impact of such spending, experts say. “The maintenance of education and health spends has ensured that we have not slipped on health and education parameters and have improved on certain counts,” said Paras Jasrai, senior analyst, India Ratings and research. As per Niti Aayog’s report on multidimensional poverty, 13.9 percent people had below six years of schooling in 2015-16 compared with 11.4 percent in 2019-21. Maternal mortality rate, or women dying during child birth, declined to 97 in 2018-20, from 130 per lakh live births in 2014-16. “Given the high level of development that we as a nation aspire for, the share of spending in both these areas needs to be expedited,” Jasrai added. "India has certainly made significant gains in educational and health attainment. However, significant gaps remain in the health and educational attainment between States, eg, Bihar and Tamil Nadu; and along the rural-urban lines or along gender lines," said Nagesh Kumar, Director and chief executive of the Institute for Studies in Industrial Development (ISID), calling for a gradual enhancement of allocations. The government hasbudgeted Rs 90,959 crore for health and family welfare for FY25, Rs 10,000 crore higher than the previous fiscal. Within the health budget, funds for government’s National Health Mission have declined, while the share of its flagship scheme, Ayushman Bharat has increased. India’s health expenditure is yet to cross Rs 1 lakh crore, even though it jumped 3.2 times in FY24 from Rs 28,019 crore, compared with a 4x increase on a smaller base of Rs 7,064 crore during United Progressive Alliance’s 10 years in power (2004-14). On the other hand, the rise in education expenses was lower at 1.7 times between FY14 and FY24 to Rs 1.2 lakh crore from Rs 71,3231 crore. The calculations include budgetary allocations for the ministry and all flagship schemes. Education accounted for around 4-4.5 percent of the Budget during UPAs era, compared with 3-3.5 percent during NDA’s rule. Economists contend that the government will need to spend on health and education to aid job creation. “If you really wanted to create jobs, you would spend money on health and education, but then there you have a capacity and attribution problem,” said Rathin Roy, former member of the Prime Minister’s Economic Advisory Council (PMEAC) in an interview to Moneycontrol. “States majorly run health and educations, so if you spend more in these sectors then states will get more money and they will get the political credit,” he added. In a recent paper co-authored by Thomas Piketty, World Inequality Lab argued for higher spends on health and education to correct for income inequality. The study Towards Tax Justice & Wealth Redistribution in India: Proposals had argued for levying a wealth tax and using the proceeds to double the spending on health and education. The authors had argued to double the current general government (states and centre) spending on health and education to six percent of the GDP. As far as capex is concerned, former prime minister Atal Bihari Vajpayee had a better performance with the government spending 3.9 percent of the GDP in its last year in power and 3.5 percent in FY99. | null | null | 2024-07-30 18:38 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/adani-energy-solutions-launches-qip-sets-floor-price-at-rs-1027-per-share-12782535.html | Adani Energy Solutions launches QIP, sets floor price at Rs 1,027 per share | Adani Energy Solutions QIP launched. | Adani Energy Solutions on July 30 launched a Qualified Institutional Placement (QIP) in move to raise more funds. The company set a floor price of Rs 1,027 per share and maximum 5 percent discount will be allowed on the floor price. Earlier today,CNBC-Awaaz had reportedthe launch of the QIP worth Rs 6,000 crore. Demand for the QIP has already crossed three times, the channel reported. GQG, ADIA, Qatar Fund, US-based funds are likely investors in the QIP. Eastspring, White Oak, Nomura, Bandhan MF, Axis MF, IIFL are also likely to participate in QIP, reported CNBC-Awaaz. Last week, Adani Energy Solutions reported a 47 per cent yearly rise in its consolidated revenue from operations in the April-June quarter. The consolidated revenues were at Rs 5,379 crore, the company earnings data showed. Adani Energy Solutions has reported a 47 per cent yearly rise in its consolidated revenue from operations in the April-June quarter. The consolidated revenues were at Rs 5,379 crore, the company earnings data released today showed. | null | null | 2024-07-30 17:37 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/rupee-edges-up-1-paisa-to-close-at-83-72-against-us-dollar-12782526.html | Rupee edges up 1 paisa to close at 83.72 against US dollar | Rupee edges up 1 paisa to close at 83.72 against US dollar.Related stories. | The rupee appreciated 1 paisa to close at 83.72 (provisional) against the US dollar on Tuesday amid a positive trend in domestic markets ahead of the US Fed policy announcement. The domestic currency was trading in a tight range of 83.72-83.74 throughout the session. At the interbank foreign exchange market, it opened flat at 83.73 and ended the day at 83.72 (provisional) against the US dollar, a gain of just one paisa. Traders said expectations were high that the Federal Reserve might signal a rate cut as early as September. The US Fed has left the borrowing rates at a near-quarter-century high for the past year in its aggressive fight against inflation. "Strength in the domestic markets and weak crude oil prices supported the rupee. However, a positive US dollar and FII outflows capped sharp gains. The US dollar strengthened ahead of the FOMC meeting with some inflows towards the greenback," Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said. "We expect the rupee to trade with a slight negative bias on positive US dollar ahead of the FOMC meeting and trimming expectations of a rate cut by the US Federal Reserve." In the domestic equity market, the 30-share BSE Sensex rose 99.56 points to settle at 81,455.40, while Nifty inched up 21.20 points to 24,857.30. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was flat at 104.56. Brent crude futures — the global oil benchmark — dipped 0.08 per cent to USD 79.72 per barrel. Foreign institutional investors were net sellers in the capital markets on Monday, selling shares worth Rs 2,474.54 crore, according to exchange data. "Month-end dollar demand from importers and OMCs (oil marketing companies) may further pressure the rupee. However, a positive tone in the domestic markets and weak crude oil prices may support the rupee at lower levels," Choudhary said. | null | null | 2024-07-30 17:29 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/sebi-spent-rs-62-cr-in-5-years-on-investors-education-awareness-on-fo-trade-risks-12782514.html | Sebi spent Rs 62 cr in 5 years on investors' education, awareness on F&O trade risks | Sebi spent Rs 62 cr in 5 years on investors' education, awareness on F&O trade risks.Related stories. | Capital markets regulator Sebi has spent a little over Rs 62 crore in the last five years for investors' education activities, including for awareness of risks and volatility in the Futures & Options (F&O) segment, Parliament was informed on Tuesday. During FY 2023-24, Sebi spent Rs 2.73 crore from its Investor Protection and Education Fund (IPEF), Rs 11.93 crore in FY23, Rs 6.81 crore in FY22, Rs 28.84 crore in FY21 and Rs 11.84 crore in FY20, Minister of State for Finance Pankaj Chaudhary said in a written reply to the Rajya Sabha. On a query on the steps undertaken by the government to increase awareness and regulate volatility in the F&O segment, Chaudhary said that Sebi, along with other Market Infrastructure Institutions (MIIs), undertakes various investor awareness programmes on an ongoing basis, to increase awareness with respect to the risks and volatility associated with the F&O segment, for the potential investors. Some of the key measures taken by Sebi are statutory warnings shown on broker trading screens with respect to the risk of probable losses that an investor could suffer while trading in the F&O segment and dissemination of several investor awareness videos, created by stock exchanges, on different social media platforms in a bid to make investors aware of the risks associated with trading in the F&O contracts. "As a part of the account opening process, with a trading member, clients are required to mandatorily sign a Risk Disclosure Document (RDD) that contains information with respect to various types of risks which clients may face while trading in the F&O segment, including volatility risks, liquidity risks, and systemic risks," the minister said. During 2023-24, Sebi, along with its regulated entities, conducted 43,826 investor awareness programmes across 687 districts covering more than 27.93 lakh participants or potential investors. Additionally, the regulator through its digital platforms — Sebi Investor website and Saa₹thi App, creates awareness for all about investing in the securities market, including risk and volatility in the F&O segment. Futures and Options trading involves contracts that derive their value from an underlying asset, such as stocks or commodities. Futures contracts obligate the buyer and seller to transact at a predetermined future date and price, while options give the holder the right, but not the obligation, to buy or sell the asset at a set price within a specific period. These financial instruments are used for hedging risks, speculating on price movements, and arbitraging price differences. However, they come with significant risks, including leverage risk and market volatility, which can lead to substantial losses. Last week, Finance Minister Nirmala Sithraman raised the securities transaction tax (STT) on both futures and options trade from October 1, in a bid to allay concerns about hyperactive interest in the derivative segment. | null | null | 2024-07-30 17:13 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/us-democrats-and-republicans-share-a-delusion-about-productivity-and-wages-12782490.html | US: Democrats and Republicans share a delusion about productivity and wages | US wage.Related stories. | Progressive Democrats and “national conservative” Republicans are increasingly aligned on the failure of American late-stage capitalism. Real wages have been stagnant for decades, they say, even as productivity keeps going up. Economic growth is channeling bigger profits to owners of capital while failing to raise living standards for ordinary families. They don’t always agree on what to blame for this dysfunction – how much is due to free trade, say, as opposed to labour-saving technology, monopoly power or the unbounded greed of the capitalist class – but they no longer quarrel much about the disease. This is a problem, and not only because the claims about wages, growth and how they relate to each other are wrong. That’s the least of it. The new consensus draws attention away from issues that actually need addressing. Worse, it suggests treatments that will cause the very sickness they’re meant to cure. The core of the anti-neoliberal consensus is the apparentlyÂyawning gap between growth in pay and rising productivity. No matter how often this supposed decades-long divergence has been debunked, the rebuttals keep bouncing off. The story of capitalist exploitation is just too compelling. Back in 2015 Harvard’s Robert Z. LawrenceÂexplained that the apparent gap between wages and productivity after 1970 mostly disappears once you measure things consistently – meaning, once you compare wages and productivity for the same workers; add non-wage compensation (such as health insurance and employer-paid payroll tax) to earnings; deflate nominal wages using producer prices not consumer prices (so that real wages are measured against the prices of the goods workers actually make); and deduct depreciation from gross production (since output that merely replaces worn-out structures and equipment isn’t available for other uses). The resulting metrics of net output per hour (“productivity”) and real product compensation (“wages”) rise more or less in tandem. Lawrence noted ten years ago that a smaller gap did seem to emerge after 2000, and he set aboutÂexplaining it. (Most likely, too little investment, he thought.) But aÂnew study by the American Enterprise Institute’s Scott Winship finds that this later gap has faded away. One of Winship’s various like-with-like comparisons is especially striking, because it uses data that go back to 1929. Between then and 2022, net value added in the non-farm business sector grew by a factor of 23; over the same period, workers’ compensation in the same sector grew by a factor of 23. Drawing on this and other such results, he reasonably concludes, “Overall growth in worker compensation has kept pace with overall productivity growth.” Granted, this conclusion does present a puzzle: The finding that consistently measured pay and productivity have mostly risen together is at odds with the claim that owners of capital are collecting more and more of the country’s income — another widely adopted belief about dysfunctional capitalism. This alleged fact that the capital share is persistently rising and the labour share persistently falling was most notably celebrated in Thomas Piketty’s best-seller,ÂCapital in the 21st Century. Again, though, it’s an artifact of mismatched data. As MIT’s Matthew RognlieÂexplained, once you look at output net of depreciation, there’s no longer a steady upward trend in the capital share, and the remaining fluctuations in net capital income are mostly driven by the value of housing (an asset widely held by ordinary Americans, as opposed to “capitalists”). Despite these inconvenient statistics, the idea that labour must inevitably lose ground to capital is tenacious. That’s partly because it fits the narrative but also, one must admit, because it’s plausible. After all, economies invest and capital accumulates. As the amount of capital per worker goes up, it stands to reason that capital will collect a bigger share of the resulting output. Yet however intuitive, this presumption is wrong. There’s no general law of economics that says capital’s share of output should rise, fall or stay the same as capital accumulates. Its share depends, in part, on how easily capital can be substituted for labour. Other things being equal, if new equipment can be easily substituted for workers, you’d expect additional capital to lower labour’s share of output. But new investment often requires more labour, not less. (Build a new warehouse and you need people to staff it.) In such cases capital and labour are complements, not substitutes, so additional capital tends to raise labour’s share. There’s a further complication – namely, how far technological progress (for any given amount of capital and labour) is biased toward displacing workers as opposed to expanding the range of tasks for which they are required. People assume that the first always overwhelms the second. Economic history says otherwise. It so happens that the shares of capital and labour have been pretty stable over time, but the balance of these complex forces can and does fluctuate. Meanwhile, though, the fallacy that capital is relentlessly crushing labour distracts attention from problems that need addressing. Growing inequality is a fact, even though the depredations of capital are not the cause. Productivity growth is increasinglyÂconcentrated in particular industries, generating inequality within the labour force. Median earnings have grown more slowly than average earnings – and in a labour force with more low-paid workers, more high-paid workers, and a small number ofÂextremely high-paid workers, median earnings (at the middle of the income distribution) are no longer so “typical.” Other labour-force shifts are also of concern. Women’s wages have been rising fast, which is good, but men’s wages haven’t, which is not so good. In these and other ways, the problem isn’t capital versus labour, but labour versus labour. What’s needed are policies that grapple intelligently with the resulting inequalities. Even more important is to restore the centrality of productivity growth for economic policy. If the pay-and-productivity gap were real, measures to raise productivity would be beside the point – and the slowdown in productivity growth over recent decades wouldn’t much matter. But the productivity slowdown does matter. When it comes to raising living standards over the longer term, nothing else counts. More investment – more capital – would raise productivity. Better schools, better infrastructure, stronger competition, liberal trade and a smaller burden of pointless regulation (occupational licensing, paralysis by permitting) would all raise productivity. In other words, they’d raise pay. So keep firmly in mind that Marx was wrong. Capital isn’t labour’s enemy. It’s the indispensable means to making workers better off. Credit: Bloomberg | null | null | 2024-07-30 16:54 |
moneycontrol.com | https://www.moneycontrol.com/news/business/earnings/indiamarts-net-profit-jumps-37-to-rs-114-crore-in-q1fy25-12782411.html | IndiaMART's net profit jumps 37% to Rs 114 crore in Q1FY25 | Following the announcement of the earning, the stock of the company jumped 4.42 percent to Rs 3,183.7 on NSE just before closing..Related stories. | IndiaMART Intermesh on July 30 reported a net profit of Rs 114 crore in the first quarter of FY25, recording a growth of Rs 37.18 percent growth over Rs 83.1 crore posted in the year-ago period, the company said in an exchange filing. The firm had posted a net profit of Rs 99.6 crore in the March quarter, the filing showed. Revenue from operations also jumped 17.44 percent to Rs 331.3 crore in the quarter under review compared to Rs 282.1 crore in the corresponding period of the previous financial year, the company statement said. In the previous quarter, the revenue stood at Rs 314.7 crore. Following the announcement of the earning, the stock of the company jumped 4.42 percent to Rs 3,183.7 on NSE just before closing on July 30. "We are happy to start the financial year on a positive note with a steady growth in revenue and deferred revenue, along with expansion in the operating margins. On the back of strong balance sheet and sustained cash flows, we will continue to make investments to further strengthen our value proposition, improving customer experience and leveraging growth opportunities. We are confident of the sustained long term profitable growth as more and more businesses adopt internet to grow themselves," said Dinesh Agarwal, chief executive officer. Key highlights from Q1FY25 -Collections from customer rose 14 percent to Rs 366 crore, primarily comprising of standalone collections of Rs 341 crore and Busy Infotech collections of Rs 24 crore -Deferred revenue as on June 30, 2024 increased to Rs 1,474 crore, representing a YoY growth of 23 percent. This primarily includes IndiaMART standalone deferred revenue of Rs 1,421 crore and BusyInfotech deferred revenue of Rs 51 crore -IndiaMART registered unique business enquiries of 25 million in Q1 FY25, representing a YoY growth of 15 percent. Supplier Storefronts grew to 8 million, an increase of 5 percent YoY and paying suppliers grew to216K representing net addition of 1.5K subscribers during the quarter. | null | null | 2024-07-30 16:26 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/moneycontrol-pro-panorama-power-grid-and-ntpc-rev-up-capex-in-power-sector-12782344.html | Moneycontrol Pro Panorama | Power Grid and NTPC rev up capex in power sector | The capex and new projects provide growth visibility to NTPC and Power Grid..Related stories. | Dear Reader, The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.┬Ā Shares of Power Grid Corp of India and NTPC are leading gains in the Nifty 50 stocks in Tuesday afternoon trade. The stocks gained about 3 percent each after the companies indicated increased intensity in their capital expenditure (capex). Total works in hand at Power Grid crossed Rs 1 lakh crore for the first time in several years. The company bagged several large projects in April-July this year. Enthused by new order inflows, the company has raised its capex target for the current fiscal. It also expects higher capitalisation of assets in the next two fiscals vis-├Ā-vis FY25. Capital outlay till 2032 is pegged at Rs 2.07 lakh crore. NTPC plans to add as much as 26,000 megawatts (MW) of IndiaŌĆÖs 80,000 MW capacity addition target in the next 10 years. The 21,029 MW of under construction projects includes a mix of coal, hydro and renewable energy power plants. In the next three years, it plans to add 7,000 MW of conventional power plants and 16,000 MW of renewable energy capacities. Additionally, the company is looking to enter nuclear power generation. It signed a joint venture agreement with Nuclear Power Corporation of India and is actively considering the award of constructing a 2,800 MW nuclear power plant. The capacity addition plans indicate the beginning of a new investment cycle in the power sector spanning both transmission and power generation segments. A host of engineering procurement construction (EPC) and equipment suppliers depend on Power Grid and NTPC for orders. The heightened capex improves the business outlook for EPC and power equipment companies. Apart from 9,560 MW of thermal power projects under construction, NTPC plans 15,200 MW of projects in the next two fiscal years. According to analysts, Power Grid has also begun tendering for equipment orders for large projects it won recently. The increased ordering activity is also visible in the renewable energy sector. The order book at Suzlon, a large supplier of wind energy equipment, rose to record levels as┬Āour Chart of the Day highlights. ŌĆ£NTPC, which is largely considered a low-growth, dividend-yield stock, has seen a remarkable change in perception. Today, the market is valuing its growth in light of strong capex, improving profitability, a good pipeline of projects, and a healthy growth in power generation and demand,ŌĆØ┬Āwrites Jitendra Kumar Gupta┬Āon NTPC. The capex and new projects provide growth visibility to NTPC and Power Grid. However, investors should note that transmission and conventional power generation plants are long gestation projects. It takes a minimum of 2-3 years to build a thermal power plant or a large inter-state transmission project. In the meantime, earnings accretion from new projects may not be significant. ŌĆ£Despite factoring in capex of ~Rs 25,000 crore-plus each in FY25E and FY26E, we find Power GridŌĆÖs earnings per share CAGR to be only 6 percent over FY24ŌĆō27E,ŌĆØ warn analysts at Nuvama Institutional Equities citing 2-5 year construction timelines of large projects. CAGR is compound annual growth rate. What is more important for investors is to match their return expectations with the earnings trajectory of power companies. Pro Alert:┬ĀThe MC ProBudget 2024Portfolio is here with 17 stocks that will ride the upside of the Budget announcements. The Budget signalled continuity, giving clarity to investors on the roadmap of NDA 3.0. The Pro Research team has handpicked these stocks that are fundamentally strong and reasonably valued, to construct a portfolio designed to outperform the benchmarks. Click here┬Āto know the stocks┬Āand the rationale for their selection. MC Pro Budget 2023 portfolio has delivered phenomenal returns, with gains in excess of 100 percent since January 2023, outperforming the indices by a wide margin. Investing┬Āinsights from our research team Should investors bet on the largest pharma contract manufacturer of India? Kaynes Technology: Strong execution in Q1 FY25, valuation fully captures upside Colgate Palmolive: Valuation at a premium after a strong run Shaily Engineering Q1: Growth momentum continues Tracker Pro Economic Tracker: Labour participation, consumer sentiment improve, power consumption falls What else are we reading? Q1 shows FY25 could be the year of the banking underdogs Adani, Birla acquisitions could reshape southern cement landscape RBIŌĆÖs bank-like PCA framework for bigger co-op banks is good news for depositors Metal Stocks ŌĆō A health check Why the diamond industry is losing its shine How to make a just transition in energy mix? The UP byelections will be a litmus test forYogi Adityanath Premium beauty is heading for a rough patch┬Ā(republished from the FT)How RSS funds itself through the unique tradition of ŌĆśGuru DakshinaŌĆÖ IndiaŌĆÖs competition framework needs a strategic vision HereŌĆÖs how to bypass the hurdle of credit-deposit growth mismatch US: Pete Buttigieg is Kamala HarrisŌĆÖ best choice for Vice President Big business signals to US Federal Reserve itŌĆÖs either rate cuts or job cuts Tech and Startups The real reason why Karnataka Government is increasing working hours of IT employees Technical Picks:┬ĀGAIL,┬ĀBEL,┬ĀZaggle Prepaid Ocean, and┬ĀABFRL┬Ā(These are published every trading day before markets open and can be read on the app). R Sree RamMoneycontrol┬ĀPro┬Ā┬Ā | null | null | 2024-07-30 15:37 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/how-many-agniveers-can-states-absorb-amid-600000-police-vacancies-12782268.html | How many Agniveers can states absorb amid 600,000 police vacancies? | States quotas will help plug the gap for agniveer recruitments.Related stories. | Taking a cue from the Centre, which announced a 10 percent reservation for Agniveers in central armed police forces and paramilitary forces, ten states have since announced a quota for Agniveers in their respective forces. Agniveers are recruits hired for a four-year period in the armed forces under the Agnipath scheme, which was introduced in June 2022. Moneycontrol does a deep dive into whether states have the capacity to absorb Agniveers. What does the data say? The actual strength in state police departments has lagged recruitment for some time now, with the gap increasing further post Covid. The thrust on quota for Agniveer graduates may help plug that gap to some extent, as more states join. States were staring at nearly 600,000 police vacancies as of 2022, an 11 percent increase since 2019, according to the home ministry data. Uttar Pradesh, Uttarakhand, Gujarat, Odisha, Madhya Pradesh and Chhattisgarh have earlier announced quotas for Agniveers in police forces while Rajasthan, Arunachal Pradesh and Assam were the latest ones to give this benefit. A Moneycontrol analysis shows that 40 percent of India’s vacancies in state police forces came from these ten states alone. Four of these ten states had nearly a fourth of jobs vacant in state police forces in 2022, with another four having a fifth of the jobs vacant. Overall, the actual strength of police departments was 28 percent lower than the sanctioned strength. Among these, West Bengal had 40 percent of jobs vacant in its police force, while Bihar had 35 percent vacancies. Matching demand and supply As of July, over a lakh Agniveers have been recruited by armed forces. While a quarter will be retained, the rest will have to find employment elsewhere. If 46,000 Agniveers are enrolled per annum, 34,500 will be looking for jobs at the end of the scheme. The back-of-the-envelope calculations indicate that state police forces can absorb around 8,000 people per year, assuming a 10 percent quota announced by states. In 2021, states had recruited 80,000 people in police departments. Central armed police forces, which have also announced a 10 percent quota, could accommodate another 1,500. Poor performance on quotas WhileBudgetconstraints may limit states from recruiting more personnel, India still lags the world in police deployment. The UN mandates 222 police personnel per lakh people; in contrast, India had 196 per lakh personnel. Another factor which may need to be addressed is the insufficient utilisation of current quota systems for ex-service personnel in civilian jobs. Data from the defence ministry shows that none of the central departments met the limits of applicable reservation in 2021. The average quota available for central government departments and public sector banks for ex-service personnel was 12.9 percent, but they could fill only 2.5 percent of the reserved positions in 2021. | null | null | 2024-07-30 15:23 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/indias-competition-framework-needs-a-strategic-vision-12781756.html | India’s competition framework needs a strategic vision | The budgetary allocation for the Indian competition authority also has to increase..Related stories. | By Sumit Jain and Abhishek Raj As the dust over 18th Lok Sabha election results settle, the National Democratic Alliance (NDA) will have to deal with some key challenges. One of the key challenges which has persisted over the last 10 years is increased reliance of the Indian tech ecosystem on the Big Technology produced in the US. This dependence is all pervasive where, both, the public and private sectors depend on the guardrails owned by foreign companies resulting in significant public policy concerns. The ownership pattern in the much publicised ‘Digital Public Infrastructure (DPI)’ is an example of this. One of the foremost challenges with this increased dependence lies in curtailment of the autonomy in decision making which may otherwise would have been with the Indian startups. Another roadblock with such an ownership pattern is application of power play in the market which ought to be corrected by the enforcement of antitrust laws. Regulatory framework needs to boost Indian enterprises For India to gain prominence at the global stage, it is important that the technology developed is able to cater to its industrial requirements. This would mean that the government may be contributing to a regulatory framework where programmes such as ‘Startup India’ and ‘Digital India’ are given the due impetus. As per a recent paper published by the Centre for Competition Law and Economics (CCLE), it was highlighted that core components of the Artificial Intelligence (AI) industry lie with the external companies thereby resulting in power asymmetry. It is specifically concerning that while more than 50+ Generative AI startups have picked up, none of them work on Foundation Model (FM) which is one of the core components of this industry. Moreover, there is further lack of any Indian company producing the relevant hardware equipment when it comes to high level data processing in the digital markets. All this is reflective of the asymmetry which exists between India as a consumer of Big Technology and a few developed countries as a producer of it. Indian competition framework lacks strategic vision The Indian competition law is primarily governed by the provisions of the Competition Act, 2002. The objective of the law is to ensure fair play in the market and enhance the consumer welfare standard. What, however, is omitted is the focus on a competition policy in India. The first national draft policy was floated back in 2012 which never saw the light of the day. This gap in the policy reflects at the strategic level. While the developed nations are known to vigorously enforce antitrust laws domestically, what is lesser known is an equal emphasis to remain globally competitive through product development in their respective public policies. Such an emphasis truly reflects the importance of promoting ‘competition’ as a value and remaining efficient in the market on the principle of fair play. Even though India has been digitising its infrastructure over the last 15 years, the approach of Competition Commission of India (CCI) in digital markets has remained lackadaisical. The Commission has looked over 1,000 cases since its inception out of which just 31 cases are in the Big Tech space. A quarter of these Big Tech cases are still pending for disposal. Even though the CCI recently passed two detailed contravention orders against a foreign entity, they are perceived to be of little consequence. The respondent entity in these cases has engaged in delayed compliance, if not outright defiance, clearly reflective of the underlying geopolitical power equations. The Indian tech sector is, too, complaining of this hegemony which has proved to be of limited help. Way forward One of the key goals for the new government should be to centre ‘Competitive India’ at the global stage. This would mean working up to the existing capacity and exploring new avenues to further expand it. The utilisation of existing capacity would include vigorous implementation of the existing laws and policies and ensuring due investments are undertaken in the research & development sector to promote innovation. This would also mean that the current trend in the ownership patterns of technological assets is challenged and new possibilities are explored. Thebudgetary allocation for the Indian competition authority also has to increase. On the expansive front, the new government needs to ensure that all the stakeholders are taken in confidence and it works in collaboration with various foreign entities. This would ensure that its immediate priorities are not compromised. A combination of being future ready and cognisant of the present realities would go a long way in ensuring that India is able to negotiate the path on its own terms. (The authors are both Directors at the Centre for Competition Law and Economics.) Views are personal and do not represent the stand of this publication. | null | null | 2024-07-30 10:23 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/centre-may-set-fiscal-deficit-target-at-3-7-4-3-after-2025-26-report-12781753.html | Centre may set fiscal deficit target at 3.7-4.3% after 2025-26: Report | This new target also exceeds the FRBM Act’s stipulated levels by 1.2-1.8 percentage points..Related stories. | The government is considering setting a fiscal deficit target range of 3.7-4.3 percent after 2025-26, moving away from the traditional single-number target, as it aims to reduce the national debt and foster economic growth. This information was disclosed by two sources familiar with the matter to business dailyMint, under the condition of anonymity. Fiscal deficit, the gap between a government's income and expenditure, is measured as a percentage of GDP. For 2025-26, the government plans to maintain the fiscal deficit below 4.5 percent, the first source toldMint. Subsequently, a range-bound approach will be adopted to ensure flexibility while reducing the country's indebtedness. Also Read |ÂFY25 Budget confirms new govt's commitment to reducing fiscal deficit: Fitch “This approach does not imply an immediate reduction to a 3 percent deficit, but it allows for adaptability,” the source explained. The fiscal deficit target, as outlined by Finance Minister Nirmala Sitharaman in 2021-22, aims for 4.5 percent by 2025-26. The COVID-19 pandemic had pushed the deficit to 9.1 percent in that fiscal year, far exceeding the original 3.5 percent target due to increased government spending to stabilize the economy. According to the second source, this range-bound approach has been considered in the past, highlighting India’s decreasing debt-to-GDP ratio and accelerating GDP growth. “Instead of committing to a specific debt-to-GDP reduction each year, the Centre can adopt a more flexible strategy, provided it adheres to the fiscal path,” the source added. Do Not Miss |ÂRevised lower fiscal deficit, fiscal consolidation may pave way for India’s rating upgrade in FY26 The proposed fiscal deficit range of 3.7-4.3 percent post-FY26 is higher than the 2.5 percent target recommended by the N.K. Singh committee for FY23, which allowed a 0.5 percent deviation in exceptional circumstances. This new target also exceeds the FRBM Act’s stipulated levels by 1.2-1.8 percentage points. A spokesperson for the finance ministry did not respond to Mint's emailed queries.Moneycontrolcould not independently verify the report. Focus on Debt Reduction A source told Mint that the government's commitment to reducing its debt-to-GDP ratio by 0.5-1 percent annually, aiming for a rapid decrease to 50 percent of GDP. “While we are on a declining fiscal deficit path, excessive compression may hinder growth, necessitating a careful trade-off,” the source noted. Minister of State for Finance Pankaj Chaudhary recently informed the Lok Sabha that the Central government’s debt, including external borrowing and other liabilities, is expected to rise to Rs 185 trillion, or 56.8 percent of GDP, in 2024-25. The International Monetary Fund’s April 2024 World Economic Outlook reported that India's GDP at current prices reached $3.57 trillion in 2023-24. | null | null | 2024-07-30 09:02 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/adani-energy-solutions-likely-to-launch-600-million-share-sale-this-week-report-12781743.html | Adani Energy Solutions likely to launch $600 million share sale this week: Report | The Hindenburg report accused the group of improper use of offshore tax havens and stock manipulation, claims that the Adani Group has denied.. | Billionaire Gautam Adani-led Adani Energy Solutions is likely to launch a share sale this week to raise over $600 million, news agency Reuters has said. This will be Adani Group's first equity market fundraise after a $2.5 billion-share sale was cancelled in February 2023 following US-based short-seller Hindenburg Research’s report that accused the conglomerate of stock price manipulation and other irregularities, the report cited sources as saying. The Hindenburg report accused the group of improper use of offshore tax havens and stock manipulation, claims denied by Adani Group. Despite the denial, the group's shares lost more than $100 billion in value before recovering in late 2023. Also read:ÂJefferies backs Adani Green, 'game-changer' Khavda sparks 18% upside Adani Energy Solutionsplans to raise the funds through a Qualified Institutional Placement (QIP), a route often taken by listed Indian companies to secure funds from large institutional investors. The sources, who declined to be named due to the private nature of the plans, indicated that at least three foreign investors, which have not previously invested in India, are set to participate in the offering, the Reuters report said. Also Read:ÂAdani Energy Solutions Q1: Net loss at Rs 824 crore, revenue up 47% Adani Group did not respond to Reuters' request for comment and Moneycontrol could not independently verify the report. Bankers advising Adani on the share sale include SBI Capital Markets, Jefferies, and ICICI Securities. None of the banks commented on the matter, the report said. Last week, Bloomberg reported that the power transmission unitÂhad selected investment banks to arrange a share sale that could raise at least 50 billion rupees ($597 million). Since the Hindenburg report in January 2023, Adani Group companies have raised more than $670 million through listed rupee bonds and one dollar bond. Adani Energy's share sale is part of a broader fundraising effort of up to 125 billion rupees ($1.50 billion) approved in May. Other group companies have also received board approvals to raise funds from the market. The Adani Energy stock ended July 29 at Rs 1,050 on the National Stock Exchange, down 0.19 percent from the previous close. | null | null | 2024-07-30 08:54 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/heres-how-to-bypass-the-hurdle-of-credit-deposit-growth-mismatch-12781730.html | Here’s how to bypass the hurdle of credit-deposit growth mismatch | Given structural drivers of low deposit growth, banks will continue to struggle to mobilize deposits to sustain credit growth unless alternative funding sources are identified..Related stories. | India's banking sector is currently contending with a significant issue: a shortage of deposits at a time when credit growth is finally rebounding after nearly a decade of stagnation. Over the past two fiscal years,credit growthhas surpassed deposit growth by an approximate Rs 6 trillion. This gap is particularly perplexing, considering that theoretically, each rupee of bank credit should return to the system as a deposit. While the intricacies behind this anomaly are beyond the scope of this discussion, it is apparent that the current low deposit growth can be attributed to several factors, including a structural decline in household savings rates that show no signs of improvement in the near future. As India began to emerge from the Covid pandemic by mid-2022, the intense competition for deposits became evident, and this battle has fully unfolded over the past year. Banks are now fiercely vying for deposit growth. Given these structural drivers of low deposit growth, banks will continue to struggle to mobilize deposits to sustaincredit growthunless alternative funding sources are identified. Banks need bonds One potential solution lies in regulatory intervention: allowing banks to issue bonds within a limited timeframe as a one-time measure to bolster their resources. To assess this proposal, it is crucial to first understand the current regulations governing bank bond issuance. At present, banks can issue two main types of bonds: capital bonds and special bonds, which include infrastructure and green bonds. Capital bonds, encompassing additional Tier 1 and Tier 2 bonds, are issued to raise regulatory capital and are subordinate to deposits, meaning they are paid out after depositors in the event of liquidation. Infrastructure and green bonds are designated for specific purposes, with proceeds restricted to lending to designated borrower classes. Capital bonds are included in the net demand and time liabilities (NDTL) of banks for reserve requirement calculations, whereas infrastructure bonds are excluded. Beyond these categories, banks are not permitted to issue other types of bonds. The proposed regulatory adjustment would introduce a temporary window, perhaps for a year, allowing banks to issue bonds solely for funding purposes to augment their liabilities. This initiative could attract long-term resources, addressing the issue of over 80 percent of bank deposits having maturities of less than one year. With conditions attached To mitigate potential risks, certain restrictions could be imposed on these bonds, such as: * Only unsecured bonds rated above a minimum threshold (e.g., AA) would be eligible. * Bonds must have a minimum maturity of three to five years, with no put or call options. * The total issuance size would be capped at a percentage of the previous year's closing NDTL, for example, no more than 3 percent. * Bonds would rankÂpari passu with deposits, i.e., their claim will have the same seniority as deposits in the event of liquidation of the bank. * These bonds would have to be mandatorily listed to ensure secondary market liquidity. These bonds would serve as a temporary funding mechanism to alleviate the current deposit crunch and secure long-term, stable funding for bank balance sheets. For practical purposes, these bonds should be excluded from NDTL calculations for reserve requirements, as their long-term nature would not strain bank liquidity. They could be included in NDTL calculations only in their final year of maturity, when they could be seen as exerting short-term liability pressures. Bonds are not bulk deposits It may be argued that these bonds resemble bulk deposits, which regulators discourage banks from raising. However, there are crucial differences between bulk deposits and bonds. Bonds are not redeemable before maturity, whereas a bulk deposit can be 'broken' before maturity at a small cost for the depositor, thus creating liquidity pressure on banks. Additionally, bonds, being securities, can have a secondary market that bulk deposits cannot. It is also important to highlight the distinction between these bonds and certificates of deposit (CDs) that banks issue. These bonds are long-term maturity instruments, whereas CDs are essentially short-term. Furthermore, bonds are securities that can be listed and have a secondary market, while CDs are not securities, making it difficult to create a secondary market for them. Indian banks have experienced significant credit growth in the post-pandemic years, but weak deposit growth threatens to undermine this progress. Permitting banks to issue bonds could address the challenge of sluggish deposit growth and introduce a new asset class for long-term capital pools, such as those of insurance and pension funds. This strategy could prove beneficial for all stakeholders involved. (Author thanks Chandan Sinha and Vinay Baijal for very valuable discussions.) Views are personal and do not represent the stand of this publication. | null | null | 2024-07-30 08:18 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/mc-explains-all-you-need-to-know-about-why-rbi-excludes-14-year-30-year-g-secs-from-far-12781549.html | MC Explains| All you need to know about why RBI excludes 14-year, 30-year G-Secs from FAR | 30-year G-Secs from FAR.Related stories. | The Reserve Bank of India (RBI) on July 29 excluded all new government securities having a tenure of 14-year and 30-year from the fully accessible route (FAR). This was done in consultation with the government and the directions are applicable with immediate effect. If you are aware of this development and want to know more, then here is an explainer for you. To begin with, lets first understand what does FAR securities means? FAR enables non-residents to invest in specified government of India dated securities without any investment ceilings. FAR was introduced by RBI in 2020 wherein certain specified categories of Central Government securities were opened fully for non-resident investors without any restrictions, apart from being available to domestic investors as well. What has RBI said? The Central bank has excluded new securities issued under these tenure from the FAR and said future issuances of government Securities in these tenors shall not be available for investment under FAR. What will happen to existing investment? As per release, existing stocks of both these securities, which is already included as ‘specified securities’ under the FAR will continue to be available under the FAR for investments by non-residents in the secondary market. Why RBI excluded these securities? As per money market experts, this move is just curb volatility and no issuance of one security in the first half of this financial year.Rajeev Pawar, head of treasury, Ujjivan Small Finance Bank said 14 years securities are not issued anymore. Further he added that 30-year security is usually for domestic institutions. Keeping them in FAR will make the yield fall faster and make it more difficult for domestic financial institutions to buy them. What will happen if foreign investors invest in new securities? The RBI said investments by foreign portfolio investors in new government securities in 14-year and 30-year tenors issued henceforth shall be either reckoned under the investment limits prescribed by RBI. | null | null | 2024-07-29 20:33 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/cesc-acquires-64-stake-in-purvah-green-power-for-rs-205-crore-12781582.html | CESC acquires 64% stake in Purvah Green Power for Rs 205 crore | Post-acquisition, Purvah Green Power Private Limited (Purvah) will become its direct subsidiary, CESC said in a regulatory filing. | Power company CESC Ltd on Monday said it has acquired 63.91 per cent equity shares in Purvah Green Power for Rs 205 crore. Post-acquisition, Purvah Green Power Private Limited (Purvah) will become its direct subsidiary, CESC said in a regulatory filing.”The company (CESC) has acquired today 63.91 per cent equity shares of Purvah Green Power Private Limited (”Purvah”), a wholly-owned subsidiary of Crescent Power Limited (a subsidiary of the company), thus making Purvah a direct subsidiary of CESC Ltd,” it added. The cost of acquisition would be Rs 205 crore, the company said.”63.91 per cent of Purvah’s shares were acquired by the company by subscribing to 20,50,00,000 equity shares of Rs 10 each for an aggregate consideration amounting to Rs 2,05,00,00,000,” the filing said.CESC is into the generation, transmission, and distribution of electrical power. | null | null | 2024-07-29 20:16 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/how-long-will-it-take-for-digitisation-benefits-to-translate-into-a-reform-based-culture-12781577.html | How long will it take for digitisation benefits to translate into a reform-based culture? | Companies in the digital and technology sectors stand to benefit from the changing consumer landscape, potentially seeing higher stock valuations as digital consumption grows.Related stories. | In a rapidly changing world, no organisation can afford to miss the dynamic impact of digitisation. From insights to product development, smart sourcing to on-time efficient delivery, superior brand engagement and marketing through real-time content, connect and commerce, mainstreaming of the digital-first culture is taking place across sectors. India is currently experiencing a ŌĆ£technological golden ageŌĆØ, with a growing number of skilled professionals and a supportive government policy framework with initiatives like the BharatNet project and the Digital Saksharta Abhiyan fuelling the rapid growth in digitisation. The government has also ramped up efforts towards the adoption of technology for the digitalisation of the economy. In herBudgetspeech last week, Finance Minister Nirmala Sitharaman said she will incentivise states which implement business reform plans using digital methods.The Economic Survey 2023-24 also pointed out that rapid technology-driven transformation of domestic service delivery and the diversification of IndiaŌĆÖs services exports are two significant transformations that are reshaping IndiaŌĆÖs services landscape. The Survey also underscored the importance of relatively less-skilled dependent sectors like tourism for employment generation, on the basis of a report which argued that artificial intelligence could reduce IndiaŌĆÖs services export growth by 0.3-0.4 percentage points in the next decade. IndiaŌĆÖs digital economy has also been driven by the private sector, with several startups and established players investing heavily in the sector. For instance, a diversified conglomerate like ITC Ltd is tapping technology in a big way by leveraging cutting-edge digital technologies like AI/ML, Industry 4.0, Advanced Analytics, Big Data and Internet of Things to drive growth and innovation. ITCMAARS ŌĆō the ŌĆśphygitalŌĆÖ eco-system that enables wider agri-tech adoption, enhances efficiencies and access to markets as well as financial services. Leveraging the power of collectives, the ITCMAARS ecosystem now constitutes over 1,650 FPOs covering more than 1.5 million farmers. By 2030, we aspire to connect over 10 million farmers. Recently, ITCMAARS launched the world's first GenAI-based regional voice chatbot for farmers called ŌĆśKrishiMitraŌĆÖ that has been co-developed with Microsoft. Companies in the digital and technology sectors stand to benefit from the changing consumer landscape, potentially seeing higher stock valuations as digital consumption grows. In line with its ŌĆśOrbit NextŌĆÖ strategy, ITC Infotech also augmented its portfolio of solutions. During the year, the company acquired Blazeclan Technologies to strengthen its capabilities in the Cloud services space and make scalable progress in digital transformation solutions. | null | null | 2024-07-29 20:01 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/tata-steel-acquires-557-crore-equity-shares-in-singapore-based-arm-tshp-for-875-million-12781572.html | Tata Steel acquires 557 crore equity shares in Singapore-based arm TSHP for $875 million | In May, Tata Steel's board had approved infusion of funds into T Steel Holdings Pte Ltd (TSHP), by way of subscription to equity shares in one or more tranches, the company said in an exchange filing. | Tata Steel on Monday said it has acquired over 557 crore equity shares in its Singapore-based arm for USD 875 million. In May, Tata Steel’s board had approved infusion of funds into T Steel Holdings Pte Ltd (TSHP), by way of subscription to equity shares in one or more tranches, the company said in an exchange filing. ”Further to our disclosure dated May 29, 2024… we wish to inform you that, the company has today acquired 557,32,48,408 equity shares of face value USD 0.157 each aggregating to USD 875 million (Rs 7,324.41 crore) in TSHP,” Tata Steel said. Post this acquisition, TSHP will continue to be a wholly-owned subsidiary of the company, it said. | null | null | 2024-07-29 19:52 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/monarch-networth-capital-announces-fund-raise-and-bonus-issue-promoters-to-infuse-fresh-capital-12781557.html | Monarch Networth Capital announces fund raise and bonus issue, Promoters to infuse fresh capital | The company's board has also approved a 1:1 bonus issue of shares for its investors, according to a company stock filing. | Monarch Networth Capital, an integrated financial services firm listed on exchanges, announced fundraising and the issuance of bonus shares following a board meeting on Sunday. Today, the company informed stock exchanges that it has secured an equity fund raise of Rs 300 crores at Rs 560 per share through preferential allotment. Preferential allotment is a process where a company issues shares or convertible securities to a select group of investors. The company’s board has also approved a 1:1 bonus issue of shares for its investors, according to a company stock filing. This means that for every share an investor holds, they will receive one additional share. Monarch Networth Capital’s net profit has surged from Rs 2 crore in 2019-20 to Rs 123 crore in 2023-24, showcasing a consistent growth trajectory. The newly secured funds will support Monarch Networth Capital’s various business verticals. The plans include launching a Portfolio Management Services (PMS) offering, scaling the Margin Trading book, launching a pre-IPO fund, applying for a Mutual Fund license, strengthening the Debt Capital Market division, underwriting IPOs, and more. Gaurav Bhandari, CEO of Monarch Networth Capital said, “This fundraise will empower us to accelerate our growth initiatives, innovate our offerings, and continue delivering exceptional value to our stakeholders,” said. Managing Director Vaibhav Shah said, “The issue of 1:1 bonus shares is a gesture to showcase our gratitude and commitment to rewarding our investors’ enduring belief in Monarch Networth’s immense potential. The fresh capital will enable us to explore new avenues and enhance our service offerings. With this fund raise, our net worth is set to surge”. | null | null | 2024-07-29 19:12 |
moneycontrol.com | https://www.moneycontrol.com/news/business/ipo/growth-story-consistent-potential-is-very-large-says-bhavish-aggarwal-ahead-of-ola-electric-ipo-12781181.html | Growth story consistent, potential is very large, says Bhavish Aggarwal ahead of Ola Electric IPO | Ola founder Bhavish Aggarwal.Related stories. | Ola Electric CEO Bhavish Aggarwal on July 29 said that the EV industry’s growth story is consistent and secular, adding that he doesn't see any slowing down of the EV story. Aggarwal, speaking at a press conference on the launch of the IPO of the EV two-wheeler maker, which opens on August 2, was commenting on the recent slowdown seen in EV sales numbers in the month of June, when sales dropped by around 14 percent compared to the previous month. “The EV story in India is in its absolute early days. Three years ago when we launched our product there was hardly any EV and now you can see that in scooters, the penetration has gone up to almost 15%. There will be cyclical ups and downs, either subsidy changes or some cyclical seasonal stuff,” said Aggarwal. He further added that Ola Electric, on a year-on-year basis has seen its EV sales grow by almost 90 percent in Fiscal 2024 and that even in the first quarter of Fiscal 2025, the company has seen its market share grow. “The potential is very large. Globally, the debate is clear that overtime the automotive industry will become electric, although category by category might follow a different strategy. So I don't see any slowing down with the story. With more and more product launches, you will actually see more expansion. And you also now see the incumbents, they're also joining the party,” said Aggarwal. ALSO READ:ÂOla Electric IPO: Top 10 metrics to watch out for Ola Electric's Rs 6,146-crore initial public offering, one of the biggest this year, opens for bidding on August 2. The electric vehicle maker has fixed a price band of Rs 72-76 for the offer, which is the first IPO from an Indian EV two-wheeler manufacturer. The IPO comprises a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of up to 84.94 million shares. On the upper price band, OFS adds up to Rs 645.96 crore. The IPO closes August 6, while the anchor book will open for a day on August 1. Commenting on the company’s profitability roadmap, Aggarwal said that Ola has made significant upfront investments in creating capacities and its distribution channels and as its capacity utilisation scales up, the company’s margins will continue to see an improvement. “If you see our numbers, FY 24 revenue was one of 90 percent over FY 23. Gross margin has gone up to 16 percent from 7 percent. And EBITDA margin has gone from negative 43 to negative 19 percent in just one year. And Q1 of this year, further, our volumes have gone up. If you see manufacturing industries in general, as you grow revenue, you get a lot of operating leverage, because your fixed costs don't scale in line with revenue growth. We've invested for high volume, and as we're growing into that capacity, our margins are improving,” said Aggarwal. Harish Abichandani, CFO, Ola Electric added that the company's installed capacity is 1 million for the Future Factory, although infrastructure can support up to 4 million units capacity. Last fiscal capacity utilisation was at 49 percent, said. Also Read:ÂOla Electric IPO: Some investors may face losses, but it's a multi-bagger for Tiger Global, Matrix Further commenting on margin improvement, Aggarwal added that he expects further improvement in that area as the company progresses on its vertical integration plans with its cell manufacturing capacities. “The cell is absolutely the heart of the EV even in terms of cost, with the cell contributing to one-third of the overall cost of any typical EV. So as we bring that into India and make it ourselves, it kind of further improves our modules,” said Aggarwal. Ola Electric has set up a capacity of 1.4 Gigawatt hours (GWh) for cell manufacturing and expects commercial production of cells to begin early next year. Abichandani, CFO of Ola Electric, added that the company has so far invested Rs 500 crore for cell manufacturing capacity and has availed a credit line of Rs 1,900 crore as it works towards scaling up its cell capacity to 5 GWh. Commenting on Lithium prices in light of the recentbudgetproposal to cut customs duties on critical minerals such as Lithium and others, Aggarwal said that he expects Lithium prices to keep moving in a downward trajectory in the coming years. “Lithium prices in the last 10 years have come down by nine tenths because it's a very technology oriented business. So as technology is improving every year or two years, the cost keeps coming down. And that's the dynamic I foresee in the future also. That's a good benefit for the whole ecosystem because one of the main input costs comes down. And as we scale up our Giga factory and commercialize it, we actually have the benefit of low prices and because the input costs through our own cell making also comes down,” said Aggarwal On new product launches, Aggarwal said that the company plans to start sales of electric motorbikes sometime early next year. “If you look at the Indian market, two-thirds is bike and one-third is scooter. So there's a lot of market opportunity in motorbikes. And the basic fundamental selling proposition remains the same in scooter and bikes, it is that the total cost of ownership is much lower than ICE vehicles,” said Aggarwal. “So as we enter the bike segment, although I can't share forecasts or projections, we feel that we have a good product lineup and we are addressing the right segments of the market with our spectrum of products,” he added. | null | null | 2024-07-29 18:59 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/traders-fret-as-32-hour-central-bank-spree-hangs-over-market-12781512.html | Traders fret as 32-hour central bank spree hangs over market | Markets are split on whether the Bank of England will deliver its first rate cut since the pandemic on Thursday, lopping it from the current 5.25%.Related stories. | Investors begin the week desperate for answers to questions about the near-term path of global monetary policy after conflicting signals from key economies upended markets. Major central banks are set to meet in Tokyo and Washington on Wednesday and London on Thursday, with traders struggling to decide if the Bank of Japan will hike interest rates and then when and by how much the Federal Reserve and Bank of England will cut them. At stake are recent surges in the yen and pound, as well as the decline of short-term US Treasury yields. Multiple markets ended last week looking jittery due to the uncertain outlooks for policy and economic growth. “This week will be more interesting,” said Wong Kok Hoong, the head of institutional equities sales trading at Maybank Securities Pte. in Singapore. “And maybe more tiring.” Here’s a guide for traders to this week’s central bank action: Bank of JapanThere’s uncertainty in markets about what the Bank of Japan will do after years in which it rarely touched rates. Governor Kazuo Ueda is setting a personal record for a lack of public comments before a policy meeting, and the latest economic data has shown inflation accelerating but consumer spending disappointing. The assumption that further policy tightening is possible sent the yen racing to an almost three-month high last week. The currency has strengthened by about 5% against the dollar since July 11, helped in part by suspected intervention as authorities tired of currency weakness.Underscoring the uncertainty, option trader bets on a rate hike lurched from below 40% to nearly 90% last week before settling about somewhere in between. Economists were equally uncertain with just 30% forecasting an increase, but more than 90% seeing one as a risk, according to the latest Bloomberg survey. The interconnectedness of the yen to a host of leveraged investments via carry trades, where the Japanese currency is borrowed and used to buy higher-yielding assets, has shown sharp swings can quickly ripple through global markets. The currency’s recent climb laid waste to popular currency strategies on everything from the Australian dollar to the Mexican peso. Inaction from Ueda would leave yen bulls vulnerable, especially if policymakers also disappoint expectations for a sizable cut to bond purchases. But currency bears are under threat if the Fed does anything later Wednesday to accelerate hopes for US rate cuts in the coming months. It was trading little changed around 153 per dollar on Monday. “I’m still in the yen bear camp, although there are massive two-way risks going into the big week,” said Charu Chanana, head of FX strategy at Saxo Capital Markets. “Expecting the BOJ to hike rates and tweak its bond buying both in a single meeting seems to be a stretch for a central bank that is inherently dovish by nature.” The currency was little changed around 153 per dollar on Monday. Federal Reserve Investors will scour the Fed’s policy announcement and Chair Jerome Powell’s remarks on Wednesday for anything that supports expectations for a first interest-rate reduction in September. Such a move would align with the view of economists and swaps traders, who are fully pricing in two quarter-point cuts this year with a roughly 70% chance of a third. The Fed’s benchmark is now in a range of 5.25% to 5.5%, a peak reached a year ago. Policymakers have been pointing out a balanced labor market and ebbing inflation for several weeks, an indication they see a growing case for lower borrowing costs in the world’s top economy. “The upcoming FOMC will be used to lay the groundwork for a September rate cut as the Fed makes the case for moving policy from restrictive territory toward a more neutral footing,” said James Knightley, chief international economist at ING. Some market watchers — from former New York Fed president William Dudley to Mohamed El-Erian — have even laid out the case for more-aggressive easing than what’s currently expected. In separate Bloomberg Opinion columns, Dudley said the Fed should consider reducing rates this week and El-Erian warned of a “policy mistake” if the central bank keeps rates too high for too long. Treasuries are on pace to end July with a three-month winning streak last seen in mid-2021. Rising conviction surrounding rate cuts helped a Bloomberg index of US government debt touch a two-year high this month. Two-year bonds have rallied on the bet easier monetary policy is coming, narrowing the gap in yields with 10-year notes. US stocks, however, enter the week on somewhat shakier footing, in part because several corporate earnings reports raised doubts over the strength of consumers. The S&P 500 Index on Wednesday ended its longest stretch without a 2% decline since the start of the global financial crisis in 2007. A look at the volatility market shows just how important the week — which will also feature a US jobs report and corporate results from Meta Platforms Inc., Microsoft Corp. and Apple Inc., among others — is for traders. A gauge of implied price swings in the S&P 500 in the next week jumped to almost one point above the expected volatility two weeks from now, a signal that the here-and-now uncertainty is higher than that further down the line. Bank of England Markets are split on whether the Bank of England will deliver its first rate cut since the pandemic on Thursday, lopping it from the current 5.25%. While inflation has eased from double digits a year ago to the central bank’s 2% target, unemployment is up, price growth in the services sector is still running high and the economy has bounced back from a small recession. A 10% rise in the minimum wage in April, and the new Labour government’s plan to increase it alongside above-inflation pay rises for as many as 5 million public sector workers, pose upward risks to prices. Since the July election, three of the Monetary Policy Committee’s hawks have set out the case against easing. Just one of the two doves has made the opposite argument. Whatever the outcome, the decision will likely have an impact on bonds and the pound. On Monday, swaps priced about a 50% chance of a quarter-point reduction this week with two such moves this year seen as a near certainty. Economists think the BOE will shift. Bank of America Corp., Deutsche Bank AG and Nomura Holdings Inc. see policymakers dividing five to four in favor of cutting this month. ING Groep NV expects six to back action. Bloomberg Economics also predicts a reduction. “In what is a big week in terms of important data points, the BOE meeting on Aug. 1 is very much live and comes with updated forecasts,” said Orla Garvey, senior portfolio manager for fixed income at Federated Hermes Limited. A rate cut would boost UK government bonds, which have already been buoyed by prospects of monetary loosening and hopes of political stability after the landslide election victory for the Labour Party. The yield on two-year gilts is at the lowest in more than a year. For the pound, a rate cut isn’t as beneficial because it would reduce its appeal as part of the carry trade. Sterling is the best performer in the Group-of-10 this year and big banks and investors including JPMorgan Chase & Co. and Amundi forecast further gains to $1.35, an almost 5% advance from current levels. Bullish bets are at the highest on record. The currency slipped 0.4% to around $1.28 on Monday, trimming its recent outperformance slightly. What Bloomberg’s strategists say... “Recent market turbulence has unsurprisingly fomented a number of narrative cross-currents pertaining to equities, fixed-income, and other market positioning. It may be dangerous to say, but in some ways this time really is different to what we’ve seen before.” — Cameron Crise, macro strategist | null | null | 2024-07-29 18:09 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/us-pete-buttigieg-is-kamala-harris-best-choice-for-vice-president-12781428.html | US: Pete Buttigieg is Kamala Harris’ best choice for Vice President | Pete Buttigieg’s gift of gab is a generically useful skill. (Source: Bloomberg).Related stories. | It’s hard to deny the appeal of a swing-state governor as a running mate for Kamala Harris. But as the vice presidentÂvets her candidates, there is also a compelling logic to choosing a former small-city mayor and leader of a second-tier cabinet department. I refer,Âof course, to Secretary of Transportation Pete Buttigieg. My rationale is simple: Buttigieg isÂvery good on TV, and that is a large part of the job description for a vice presidential candidate. It’s easy to forget now, but back when President Joe Biden was forming his cabinet, there was considerable doubt about whether he could find a place for Buttigieg. What was the former mayor of the fourth-largest city in Indiana actually qualified to do? At the Transportation Department, he’s doneÂa decent job, and he’s continued to be an in-demand television guest who was especially prominent during the debates over the Infrastructure Investment and Jobs Act. Making the leap from semi-obscure cabinet agency to vice presidency would be a bit odd, but it’s definitely less odd than the leap from South Bend to the DOT. Indiana is not in play in November, but the benefits of a swing-state running mate can be overstated. In a practical sense, the main way that successful purple politicians run and win is to moderate their positions on some issues relative to the national Democratic Party, in ways that are calibrated to their home state. So Governor Josh Shapiro and other Pennsylvania politicians are more enthusiastic about fracking than most Democrats, while Senator Mark Kelly and other Arizona Democrats are more hawkish on border security. There are lessons here for Harris, obviously: If she wants to win in Pennsylvania and Arizona, it might be smart to position herself as enthusiastic about fracking and border security. At the same time, she is running for national office, and there are a bunch of different swing states. A small dose of heterodoxy might go a long way in one place, but in order to compete across the entire swing-state terrain, it’s helpful to moderate across a larger set of issues. That, in turn, runs the risk of antagonizing donors and other stakeholders. If she were asking me — and, to be clear, she’s not —  it’s a worthwhile strategy, and I’d advise Harris to do it. But my larger point is that there is no “magic” running mate. People vote for the top of the ticket, not the bottom. If a candidate can adopt the policy positions of a successful swing-state politician, then choosing him as a running mate may not be necessary. If she doesn’t adapt her policy, it’s not clear how much choosing that running mate helps. Buttigieg’s gift of gab, by contrast, is a generically useful skill. Whatever platform you run on, you want surrogates who are skilled at explaining it. Whatever attack lines you decide to use, they should be well-delivered by people who can knife someone while remaining likeable. And ideally, your surrogates should be able to parry tough questions, seem reasonable even to people who don’t fully agree, and know how to shift the conversation back to safe ground. Buttigieg excels at all these things. One of the things he’s famous for isÂgoing on Fox News and preaching to a hostile audience. Successful swing-state politicians are not necessarily good at this. The usual formula for swing-state success, in fact, is to try to stay out of polarized national media and highly polarized politics. The dream media appearance for a statewide elected official is to get on local news talking about a new community center or —Âlike Shapiro — fixing a highway. This requires real skills, but it’s not the same as the parry and thrust of the national media. Political junkies are familiar with governors such as Shapiro, Gretchen Whitmer of Michigan and Andy Beshear of Kentucky. But until this past month, I’d never seen any of them on national television — precisely because it’s smart politics to duck those bookings. Buttigieg has never held statewide elected office, but he’s been tested over and over again in the simulacrum of national media discourse. Practically speaking, he is the safest pair of hands available. Back when it seemed as if Democrats might have a more open nominating process, I was skeptical of Buttigieg for president for the simple reason that he’s a member of the Biden cabinet. I still think the optimal play for Democrats would have been to achieve maximum distance from the unpopular incumbent and simply turn the election into a referendum on Donald Trump. Now thatÂthe party has coalesced around Harris, it’s going to have to navigate this problem one way or another. And the best way to do that is with its best communicator at her side — someone who can share her pride at the administration’s tremendous achievements while also backing her up when she says she always favored swifter action on illegal immigration or whatever other break with Biden she wants to make. In a sense, American politics has been distorted by four years of Trump’s nonsensical and often incoherent ramblings, followed by three-and-a-half years of Biden’s extremely light schedule of unscripted events. There are now lower expectations for a politician’s ability to communicate. Harris’ public events since Biden stepped aside haveÂelectrified Democrats simply because, like the vast majority of successful politicians, she is more charismatic and articulate than the average person. And even though Harris is a dramatic improvement over Biden, she’s not the best communicator in the party. That title belongs to Pete Buttigieg — and that’s why she should choose him as her running mate. Credit: Bloomberg | null | null | 2024-07-29 18:01 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/airbus-slashes-internal-travel-events-in-drive-to-reduce-costs-12781503.html | Airbus slashes internal travel, events in drive to reduce costs | Airbus has initiated a savings project called Project Lead in response to persistent supply-chain constraints that are weighing on its delivery and production goals. | Airbus SE has clamped down on internal travel and events as part of a cost-cutting drive at the European planemaker, according to people familiar with the matter. While customer-facing employees are still required to be on the road, other functions are being asked to justify any additional spending, said the people, asking not to be identified discussing internal policies. A spokesman for Airbus declined to comment. Airbus has initiated a savings project called Project Lead in response to persistent supply-chain constraints that are weighing on its delivery and production goals. Christian Scherer, who oversees Airbus’s commercial airline business, said at the Farnborough Airshow last week that the program aims to reconcile spending with a production ramp-up plan that “was going to be a little bit higher than what it turns out to be.” Scherer initially sent out a company-wide directive laying out the cost-saving effort a few weeks ago, and individual departments have since followed up with their own specific requests to trim costs, some of the people said. Last month, the company cut its forecast for adjusted earnings before interest and tax to €5.5 billion ($6 billion) this year, from a previous goal of as much as €7 billion. It also cut its outlook for free cash flow before customer financing to about €3.5 billion. Airbus will report full earnings for the first half on Tuesday. | null | null | 2024-07-29 17:59 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/southern-states-show-the-way-on-growth-and-poverty-reduction-12781448.html | Southern states show the way on growth and poverty reduction | Poverty reduction faster for high growth states.Related stories. | PM Narendra Modi, on July 27, called for states to set zero poverty targets as a priority for Viksit Bharat by 2047. A MC analysis of poverty reduction across states shows that high-growth states made significant gains in poverty reduction. Even as half of the 164 million people lifted from poverty between FY16 and FY23 belonged to three states of UP, Bihar and Madhya Pradesh. However, southern states - Andhra Pradesh, Tamil Nadu and Telangana were more successful in reducing the proportion of multidimensionally poor. Who is defined as poor? A Niti Aayog paper released in January pegged the number of multidimensional poor, who lack access to basic services like house, water, sanitation, at 11.3 percent of the population in FY23 or nearly 160 million people. How the states stack up? In Telangana, for instance, the poor population declined by 70 percent, whereas Tamil Nadu, Andhra Pradesh, Maharashtra and Odisha witnessed a 60 percent drop in poor population. On the other hand, Bihar’s poor population was down only 43 percent in FY23 compared with seven years ago, whereas UP’s was down 49.6 percent. The number of poor people across the country halved during this period. Although the upliftment of multidimensional poverty also depends on provision of services from the government and not just income, an MC analysis shows a correlation between rising per capita income and reduction in multidimensional poverty. States with higher per capita income growth did better on poverty reduction than states with lower per capita income growth. In Telangana, per capita income rose 121 percent between FY16 and FY23, whereas Odisha witnessed a 124 percent jump in per capita income. On the other hand, per capita income increase was just 78 percent for both Bihar and Uttar Pradesh. The level of per capita income also had a bearing on poverty reduction, but not as strong as the growth. That is the reason why Maharashtra, despite a 71 percent increase in per capita income, was able to reduce poverty at a faster rate than Uttar Pradesh. UP’s per capita income at Rs 83,686 was a third of Maharashtra’s at Rs 2.52 lakh and a fourth of Telangana’s at Rs 3.11 lakh. Moreover, analysis shows that states with low incidence of poverty and low per capita income growth barely moved the needle on poverty reduction. Punjab with 4.35 percent poverty rate in FY23, witnessed its poverty decline 17.6 percent between FY23 and FY16, as per capita income rose at the slowest pace of 53.6 percent during this period. | null | null | 2024-07-29 17:53 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/mcdonalds-sales-fall-for-first-time-since-2020-as-traffic-drops-12781494.html | McDonald’s sales fall for first time since 2020 as traffic drops | McDonald’s stock has fallen 15% this year as of Friday’s close, compared to a 14% gain for the S&P 500 index during the same period. | McDonald’s Corp. sales declined for the first time since 2020 in the second quarter, falling short of analyst expectations for modest growth. The chain’s comparable sales, a metric tracking restaurants open for over a year, fell 1% from the year prior. Each of McDonald’s geographic segments saw sales declines. In the US, the trend was driven, in part, by a decline in foot traffic. The shares were little changed in early trading in New York. McDonald’s stock has fallen 15% this year as of Friday’s close, compared to a 14% gain for the S&P 500 index during the same period. Earnings, excluding some items, were $2.97 per share in the first quarter, missing the average analyst estimate. The company also maintained its guidance for new store openings and operating margin. McDonald’s sales growth has slowed this year as diners across the world cut back on Big Macs, pinched by years of price increases and tight householdbudgets. At the end of last quarter, the fast-food purveyor launched a $5 meal deal in the US to convince diners that it’s still an affordable option. Early results suggest it is drawing customers, though any sales boost won’t be apparent until later this year. It also has introduced limited-edition menu items hoping to lure customers, such as a bacon cajun McCrispy and a “grandma” McFlurry. The chain will remain focused on “reliable, everyday value” as diners become more discriminating with their spending, Chief Executive Officer Chris Kempczinski said, according to a statement. Other strategic priorities include the chain’s chicken lineup and its loyalty program. Outside the US, boycotts over the Israel-Hamas war continue to hit sales in the segment that includes the Middle East. The company has previously warned that the slump would continue until the conflict is resolved. McDonald’s also reported same-store sales declines in China and France. System-wide sales, a metric that includes business at new restaurants, also took a downturn, suggesting openings aren’t offsetting weakness in existing units. The burger chain is in the midst of an ambitious expansion plan, looking to have 50,000 locations around the world by 2027, up from about 42,000 at the start of this year. | null | null | 2024-07-29 17:46 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/big-business-signals-to-us-federal-reserve-its-either-rate-cuts-or-job-cuts-12781397.html | Big business signals to US Federal Reserve it’s either rate cuts or job cuts | US Federal Reserve.Related stories. | When the Federal Reserve signals the likely path of monetary policy to investors this week, including an anticipated start to interest rate cuts in September, it can no longer be complacent about the labor market. Policymakers have for months pointed to the resilience of employment data as evidence that there’s no urgency to lower rates. But the message from rate-sensitive parts of corporate America this earnings season has been clear: demand is sagging and the main thing keeping layoffs at bay is confidence that rate cuts will begin soon and usher in a brighter outlook for 2025. The Fed now needs to deliver not just one but a series of reductions to maintain business confidence and ensure there’s no further deterioration in the labor market. About a third of the way through second-quarter earnings season, the proportion ofÂcompanies beating revenue expectations is the lowest since 2019, according to Bloomberg Intelligence. The slowdown is particularly apparent in parts of the economy tied to household borrowing and consumer credit. Squeezedbudgets have resulted inÂa miserable quarter for the automobile industryÂwhere rising inventories have put downward pressure on prices, crimping profit margins. Similarly, existing home sales in June were back near the lowest levels in a decade, bad news for companies that depend on housing turnover such as Maytag owner Whirlpool Corp., which said that the recovery they expected in 2024 isn’t going to happen. The dynamics in these consumer-facing industries have contributed to aÂsustained rise in the unemployment rate, which last month reached its highest point in more than two years. In general, that’s the kind of environment that could quickly get out of hand, even if headline real gross domestic product numbers still look solid. In the fourth quarter of 2007, for instance, real GDP grew 2.5% right before the economy tipped into recession. Commentary from many hard-hit companies, however, shows why we won’t repeat the downward spiral that the labour market experienced during the financial crisis — if the Fed acts quickly. Whirlpool said during its earnings call that it would stand to benefit once interest rate reductions ease pressure in the housing market. Brunswick Corp., the maker of recreational marine products, noted rate cuts beginning in September would provide a tailwind next year. (Yes, we’re now at the point where boat makers are tracking Fed expectations as closely as banks!) And Pool Corp, a distributor of swimming pool supplies, said that orders haven’t picked up yet, but increased inbound calls show customers are just waiting for confirmation on lower borrowing costs before making a decision. Ultimately, companies make staffing plans based on their expectations for the future. We saw an extreme version of this in late 2020, when concert organizers and other businesses had to quickly anticipate what the approval of Covid-19 vaccines that November would mean for their 2021 plans. For companies that believe they’ll benefit from Fed easing, a slower-than-expected 2024 is disappointing, but it would be foolish to cut staff now if rehiring will be difficult once a rebound in confidence arrives. Better to keep your current workforce and manage costs as well as you can until economic activity accelerates next year. It would be a mistake for the Fed to take comfort in the relative stability of layoffs andÂdelay the start of rate cuts — those layoffs haven’t happened because companies believe policy easing that will benefit them is around the corner. They are making plans based on those expectations just as the Fed is making policy based on what the economic data is doing. Once the Fed cuts, and especially if it embarks on a halting cycle, the benefits will flow to the real economy with a lag that varies by industry. Mortgage refinance activity, for example, has been more sensitive to declines in home loan rates than mortgage purchase applications — refinance has climbed 40%, year over year, while purchase activity remains down. The equipment rental company Herc Holdings Inc. said last week that, once the Fed has signaled a cut, it takes about six months for shovel-ready projects to begin moving dirt, suggesting that a September reduction will benefit construction activity next spring. Fortunately, the economy still appears to be in a position for the Fed to prevent the kinds of negative economic outcomes that policymakers want to avoid. But they shouldn’t mistake the seeming resilience of the economic data. Companies are increasingly counting on lower borrowing costs to hold the line on layoffs. The Fed needs to signal this week that it’s ready to come to the rescue. Credit: Bloomberg | null | null | 2024-07-29 17:38 |
moneycontrol.com | https://www.moneycontrol.com/news/business/earnings/acc-q1-results-net-profit-falls-22-5-to-rs-361-crore-12781453.html | ACC Q1 results: Net profit falls 22.5% to Rs 361 crore | The company had reported a PAT of Rs 466 crore in the year-ago period.. | Cement maker ACC on July 29 said its consolidated profit after tax (PAT) fell 22.5 percent to Rs 361 crore the first quarter of financial year 2024-2025 as sales missed The company had reported a PAT of Rs 466 crore in the year-ago period. Revenue from operations also slipped to Rs 5,154.89 crore in the June quarter as compared with Rs 5,201.11 crore in the year-ago period, the Adani Group-owned cement manufacturer said in a regulatory filing. The company's Q1 operating EBITDA came at Rs 679 crore and margin stood at 13.2 percent.Operating cost improved by 7 percent YoY at Rs 4,377 PMT. Cash and cash equivalent at Rs 2,747 crore. Commenting on the results, Ajay Kapur, CEO – Cement Business, Adani Group, said, “ACC’s performance strengthens our drive to consistently stay a frontrunner in the industry. Our performance this quarter exemplifies our efficiency and agility. Our strategic decisions, customer-centric approach, and operational excellence continue to drive growth. As we move forward, we remain committed to delivering value to our stakeholders in a sustainable manner.” Shares of ACC today closed 0.14 percent lower at Rs 2,610 apiece on BSE. Billionaire Gautam Adani’s big-bang entry into cement with the $10.6- billion acquisition of India’s second-biggest cement business (Ambuja Cement and ACC) from Holcim Group of Switzerland last year marked the arrival of an aggressive challenger in the cement industry. | null | null | 2024-07-29 17:25 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/indias-growth-likely-to-be-closer-to-7-5-in-fy25-ncaer-dg-poonam-gupta-12781415.html | India’s growth likely to be closer to 7.5% in FY25: NCAER DG Poonam Gupta | Economic Survey has projected economic growth during the year to be between 6.5-7 growth..Related stories. | Based on the momentum in the high frequency indicators, normalised monsoon, a relatively benign global outlook and receded electoral uncertainty, both in India and in the rest of the world, growth will likely turn out to be higher than 7 percent, and possibly closer to 7.5 percent in the current fiscal, National Council of Applied Economic Research (NCAER) Director General Poonam Gupta said. Meanwhile the Economic Survey has projectedeconomic growthduring the year to be between 6.5-7 percent in 2024-25. “Amid signs of receding global shocks, the latest high frequency indicators like PMI expansion for manufacturing and services and bank credit growth besides forecast of above normal monsoon rains in July hold out the projected growth promise for the Indian economy,” the monthly economic review for July released by NCAER said on July 29. The latest data point to the growth dynamism of the domestic economy with the Purchasing Managers’ Index (PMI) for both manufacturing and services increasing in June (composite PMI at 60.9) and total outstanding credit of scheduled commercial banks expanding by nearly 21 percent on a year-on-year basis. Personal loans andcredit for agricultureand allied activities expanded by nearly 29 percent and over 22 percent, respectively. India’s foreign exchange reserves reached an all-time high at $666.9 billion on July 12, giving cushion for over 11 months of projected imports. Budget guidance on fiscal restraint is likely to keep the economy in good stead. Gupta said, “The UnionBudget 2024-25 lived to the expectations of unwavering commitment to fiscal consolidation, prudence, and quality.”The Union Budget for FY2024-25 emphasised fiscal prudence, and capex. Nominal GDP is projected to grow at 10.5 percent in FY2024-25 while the fiscal deficit is budgeted at 4.9 percent of GDP. “The Centre's fiscal deficit reached 3 percent of the budget estimate (BE) for 2024- 25 in May 2024. As of May 2024, the fiscal deficit reached 3 percent of BE in 2024-25, as compared to 11.8 percent of BE in 2023-24, as of May 2023,” the NCAER report said. India has remained on the path of fiscal consolidation with the fiscal deficit brought down from 6.4 percent of GDP in FY2022-23 to 5.6 percent of GDP in FY2023-24. | null | null | 2024-07-29 16:40 |
moneycontrol.com | https://www.moneycontrol.com/news/business/moneycontrol-pro-panorama-cement-thalaivar-bows-out-12781304.html | Moneycontrol Pro Panorama | Cement Thalaivar bows out | In cement, what matters more for profitability is not the volume you sell but the price at which it is sold..Related stories. | Dear Reader, The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.ÂIndia Cements' share price has risen by 0.6 percent as of 12.45 pm while UltraTech Cement’s price is up by 1.4 percent. That signals theÂdealÂwas already priced in and it was well known after UltraTech picked up a significant stake in India Cements, with RK Damani selling the stake he had accumulated over time. My colleague Sachin Pal hasÂan incisive analysis in today’s edition on the transaction and what it means for UltraTech. The acquisition gives UltraTech a strong foothold in the southern cement market as India Cements is a large player with cement capacity of 14.5 million tonnes. UltraTech’s market share in the South is under-indexed to its national market share of around 23 percent, which this acquisition will help rectify. Last year, it had acquired Kesoram Industries’ cement assets to add to its share. The transaction itself is at a premium, which means while UltraTech has cemented its southern footprint, the promoters of India Cements have got a good exit for themselves, and the open offer gives willing shareholders the opportunity to exit at the same price. Do read Pal’s analysis to know more about how this transaction values India Cements and what it means for UltraTech. While the deal economics is one aspect, the bigger implication in this transaction is the vacuum left byÂN Srinivasan’s exit from the cement industry. While it may have been an expected one, it is by no means an event whose implications have been fully absorbed. He was the elder statesman of the industry, playing a crucial role in plugging the critical weakness of an oversupplied market. He is believed to have played an instrumental role in bringing various industry players to the table and ensuring there is ‘pricing discipline’. This is the industry euphemism for a cartel. In cement, what matters more for profitability is not the volume you sell but the price at which it is sold. Pricing wars have typically left companies reeling under weak profitability and loaded balance sheets, given that this approach also means companies end up investing in more capacity or buying out players. But despite all these efforts, all’s not well on the southern front. The performance of companies has been under pressure and this is evident in the performance of companies such asÂRamco Cements in the June quarter. The market has also shifted from one that was mainly a regional one in character, with lead distance from the plant being an important factor, to a more national one. The big players are looking at synergistic acquisitions and focusing on using efficiency, scale, technology and energy mix to grow their operations in the country. On top of this, the Adani group’s appetite for acquisitions meant that in the South where performance has been weak, companies such as UltraTech have little choice but to take countermeasures. What next in the southern market? My colleague Vatsala Kamat, who has studied the southern cement market closely, believes that it will set the ball rolling for more consolidation. It’s likely that these two companies will go about acquiring market share, with pricing discipline taking a backseat of sorts. That will put pressure on the smaller players. A Motilal Oswal note on the acquisition also points to Ambuja Cements and UltraTech as companies that will benefit from consolidation as it will lead to higher cement prices in the long term. Lastly, the handsome price UltraTech paid for India Cements will also set a benchmark that can provide an attractive exit opportunity for the smaller southern market players. That could be Srinivasan’s final act of benevolence for his peers who have looked up to him all these years. MC Pro Alert: We are delighted to inform you that theÂMC Pro Budget 2023 portfolio, put together by our very talented research team, has returned stellar returns of over 100 percent in the year and a half since launch. It has beaten benchmarks by a wide margin. Subscribers would have benefited immensely from the portfolio. If you missed it last year, there’s a new one coming post-Budget 2024that will give you a list of 17 stocks in a portfolio designed to play on the theme of continuity in the Budget. The focus of the NDA 3.0 government remains on fiscal discipline, infra thrust and jobs creation. The Pro research team has followed a tried and tested bottom-up technique of identifying these stocks. The new portfolio will be launched tomorrow, Tuesday, July 30. Keep a watch out for it. And if you know someone who's not a subscriber, you could help them become a better-informed investor byÂsharing this link to subscribe to Pro. Investing insights from our research team IndiGo continues to fly higher fuelled by Q1 FY25 numbers IndusInd Bank Q1 FY25: weak quarter, valuation attractiveAshok Leyland Q1 FY25: Continuing to climb ICICI Bank Q1 FY25: consistent performance, re-rating to continue Thangamayil Jewellery Ltd: Near-term margin impact; shiny outlook for the long term Mphasis: Soft quarter with all signs of recovery JSW Energy: Valuation factors in the expected growth Shriram Finance: Diversification, strong execution boost growth Amber Enterprises: Encouraging Q1; momentum building up on multiple fronts Tracker Monsoon Watch: Sowing gathers pace, surpasses last year’s acreage What else are we reading? Moneycontrol Pro Market Outlook | Brace for volatility: markets poised for a turbulent week ahead The pros and cons of the budget, in a nutshell The Eastern Window: Time for India to change its policy towards Chinese investment? Government’s silence on WazirX mess is unfair to India’s 19 million crypto investors Chart of the Day | Corporate Tax Rates: Old 30 percent tax rate is giving the new 22 percent rate a run for its money Ola’s ride to electrifying profits may have near-term shocks Falling inflation, sturdy economy, happy Fed (republished from the FT)Policymakers and retail investors: Damned if you do, damned if you don’t Why integrating technology platforms is essential for quickening insolvency resolutionPersonal Finance ITR filing 2024: Here are the rules that NRIs must be aware of, and save on taxes Tech and Startups Indians occupy 10-13% leadership positions in GCCs Technical Picks:ÂBank of Baroda,ÂBPCL,ÂBharat Electronics andÂREC(These are published every trading day before markets open and can be read on the app). Vatsala KamatMoneycontrol Pro  | null | null | 2024-07-29 16:17 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/why-the-economic-surveys-suggestion-to-target-non-food-inflation-is-misguided-12779566.html | Why the Economic Survey’s suggestion to target non-food inflation is misguided | By contrast, food inflation has roughly doubled over this period from 4.6% to 9.4%..Related stories. | The Economic Survey,Âreleased on July 22nd, is an engaging read. It provides many novel data Tables and Boxes. The Chief Economic Adviser Dr V Anantha Nageswaran should be complimented for this Survey. Indeed, a long review of some of its themes is warranted. ThisÂarticleÂanalyzes one specific recommendation that it made – instead of targeting (headline) inflation as at present, India should consider targeting a subset of that i.e. non-food inflation. This subset is close to what is defined as core inflation in USA, i.e. inflation excluding fuel and food, which is their target. Since fuel is only 6.84% of our CPI basket, and retail fuel prices are less volatile in India than in USA due to offsetting changes in fuel taxes, non-food inflation is a suitable measure of core for India. It comprises 60.94% of the CPI now, with the remaining consumer food price index (CFPI) component 39.06%. The CEA’s recommendation has attracted a lot of attention, going by articles in the financial media. Core inflationÂas a concept gained traction in the US in the 1970s. Following OPEC’s quadrupling of oil prices in 1973, the Bureau of Labour Statistics started reporting it and the Federal Reserve incorporated it into its Greenbook projections and decision making process. To begin with,Âeven for developed countries, one can reject the core inflation concept on various grounds. But that requires historical and statistical evidence and conceptual justifications and even robust, commonsensical arguments, provided elsewhere. Instead,Âlet us examine recent developments. In the RBI’s Monetary Policy Committee, since early 2023, strong dissent has centred around the steady drop in non-food or core inflation, from 5.3% last June to 3% this June, and below the RBI’s 4% target since October 2023. By contrast, food inflation has roughly doubled over this period from 4.6% to 9.4%, although somewhat erratically, and headline inflation has inched up this June above 5%. In Chapter 3,  the Economic Survey discusses various measures to contain food supply shocks, starting with governmental buffer stock management, which it does. Another optionÂis export bans. When there is a global shortage or global demand is high, bans do certainly lower domestic prices, and benefit consumers. Box III.2 (Pg 95) provides details of the dates of the bans and their removals for wheat, non-basmati varieties of rice, and other food items – notably onions. But banning exports create disincentives to produce more. Recommendations to tackle this dilemma are spelt out later in a section titled: how do we let the markets function in the interests of the farmer? Its five recommendations are: ONE:By not banning futures or options markets at the first sign of price spikes. TWO:By involving export bans only under exceptional circumstances. THREE:By re-examining the inflation targeting framework. FOUR:Increasing the Total Net Irrigated Area.                                                    . FIVE:Making farming consistent with climate considerations. The firstÂtwo suggestions are sensible. The fifth suggestion, which I endorse, is of overwhelming importance. The sixteen line paragraph about it warrants careful reading. However, about the third, the Survey states that since food is a big chunk of the CPI in India, “When central banks target headline inflation, they effectively target food prices. So when food prices rise, inflation targets come under threat. Therefore the central bank appeals to the government to bring down the increase in the price of food products. That prevents farmers from benefiting from the rise in the terms of trade in their favour. India’s inflation targetingÂshould consider targeting inflation, excluding food.” (emphasis added. Pgs 169-170) To begin with,Âthe Economic Survey should not have made such generic statements: first, that central banks effectively target food prices, and second, that the central bank appeals to the government to bring down food prices. Decades before the RBI started inflation targeting, and even before its top brass became aware of the policy, which started in the early  1990s, the Indian government periodically imposed such bans, without appeals by the RBI. While meant to help consumers, the export ban has badly backfired for onions. Following a quasi ban via a Minimum Export Price from October to December 2023, onions were placed under the Prohibited category upto 31 March 2024. However, on 22 March the Government extended the ban indefinitely, then later rescinded it in May. By then,Âthe damage to onion farmers had been done, despite political gains from lower onion prices for consumers all across India. The biggest wholesale onion market in Asia is Lasalgaon in Nashik district.  In the 2019 elections, the BJP’s alliance won 11 out of 13 seats in the onion belt of Maharashtra.  But last month it lost 12 out of 13 seats to the INDIA alliance, a stunning reversal. In Beed constituency, even Pankaja Munde, stalwart BJP leader, lost in her family bastion. (Verdict 2004, Shagun, downtoearth magazine, 5 June 2024) The political tug of war between consumers and farmers will continue to play out. But to suggest targeting non-food inflation to avert any likely export bans is misguided. When food inflation is high and non-food inflation is low, cutting interest rates will initially raise food prices that respond faster to demand side increases. The political response to impose export bans will reduce incentives to produce, thus reducing farm productivity, thereby raising farm prices in the long run, and possibly headline inflation too. Food supply shocks are a genuine problem. But in my opinion, they call for targeting headline inflation of a lower frequency -- say a three year average (RBI Should Specify its Inflation Metric, Indian Express, 2nd December 2014). | null | null | 2024-07-29 15:21 |
moneycontrol.com | https://www.moneycontrol.com/news/business/jms-group-to-invest-rs-400-crore-to-develop-housing-project-in-gurugram-12781239.html | JMS Group to invest Rs 400 crore to develop housing project in Gurugram | JMS Group to invest Rs 400 crore to develop housing project in Gurugram. | Realty firm JMS Group on Monday said it will invest Rs 400 crore to develop a group housing project in Gurugram. The company has acquired 8.65 acre of prime land in Sector 95, New Gurugram, according to a statement. It will develop around 450 units in this housing project. "Upon completion, the upcoming project is projected to generate revenues nearing 1,000 crore...The company has allocated an investment of approximately Rs 400 crore for the construction of this residential project," JMS Group said. Pushpender Singh, Managing Director of JMS Group, said the company has acquired this land to grow its business. "This endeavour not only represents a substantial investment but also reaffirms our dedication to creating sustainable and contemporary living environments," Singh said. The construction work will start after getting all necessary approvals. JMS Group has launched 6 housing and 2 commercial projects so far. The housing demand in Gurugram and adjoining areas has been very strong in the last three years. Prices too have risen sharply in the city. | null | null | 2024-07-29 14:06 |
moneycontrol.com | https://www.moneycontrol.com/news/business/bharti-airtel-starts-re-farming-of-mid-band-spectrum-to-accommodate-growing-demand-on-5g-network-12781226.html | Bharti Airtel starts re-farming of mid-band spectrum to accommodate growing demand on 5G network | Bharti Airtel starts re-farming of mid-band spectrum to accommodate growing demand on 5G network. | Telecom majorBharti Airtelon Monday said it has started reallocating its existent mid-band spectrum to accommodate the exponential growth in 5G traffic. As data demand grows, Airtel is re-farming its existing spectrum at a faster pace to provide its customers with a brilliant 5G experience, it said. "With more customers moving to the 5G network, Airtel is re-farming its mid-band spectrum to expand 5G services on its 1800, 2100, 2300 MHz bands across the country," it said in a statement. Airtel said its pilot on the SA and NSA switch conducted in Rewari, Chennai and Bhubaneswar showed encouraging results. This capability on the 5G network will enable Airtel to introduce new innovative applications, services and solutions through open APIs, differentiated connectivity and service-based architecture, it said. "As more customers pivot to our 5G services, we have re-farmed our mid-band spectrum which was being used for 4G services. With this, we are also ready to launch stand-alone technology. "This will mean that the Airtel network will be the first network in India to run on both standalone and non-standalone modes, allowing us to deliver the best experience in the market," Bharti Airtel CTO Randeep Sekhon said. | null | null | 2024-07-29 13:58 |
moneycontrol.com | https://www.moneycontrol.com/news/business/nbccs-arm-bags-rs-411-45-crore-contract-from-mahrashtra-govt-to-build-medical-college-hospital-12781198.html | NBCC's arm bags Rs 411.45 crore contract from Mahrashtra govt to build medical college, hospital | NBCC's arm bags Rs 411.45 crore contract from Mahrashtra govt to build medical college, hospital. | State-owned NBCC's arm has bagged a Rs 411.45 crore contract to construct a new medical college and 430-bedded hospital in Maharashtra. In a regulatory filing, NBCC informed that HSCC (India) Ltd has recently been awarded "construction of new government medical college of 100 student capacity and 430-bedded hospital at Buldhana." The contract was awarded by Medical Education and Ayush, the government of Maharashtra. NBCC is into project management consultancy and real estate businesses. | null | null | 2024-07-29 13:42 |
moneycontrol.com | https://www.moneycontrol.com/news/business/blupine-energy-secures-rs-239-crore-funding-from-tata-capital-12781162.html | BluPine Energy secures Rs 239 crore funding from Tata Capital | BluPine Energy secures Rs 239 crore funding from Tata Capital. | BluPine Energy on Monday said it has secured Rs 239 crore financial assistance from Tata Capital. The amount will be utilised towards a solar power project in Chhattisgarh, the company said in a statement. The 75 megawatt project is expected to generate nearly 117 million units (MUs) of energy annually and offset more than 107,000 tonne of Co2 emissions, it said. BluPine Energy is a leading renewable energy services company established in India by Actis, a global investor and world leader in funding and building sustainable infrastructure companies. Tata Capital Ltd (TCL) is the flagship financial services company of Tata Group, and is carrying on business as a non-banking financial company. | null | null | 2024-07-29 13:14 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/salary-payments-pf-contributions-could-determine-credit-line-for-msmes-12780948.html | Salary payments, PF contributions could determine credit line for MSMEs | Digital footprint model marks a departure from the conventional reliance on balance sheets..Related stories. | In a significant move aimed at enhancing the accessibility of credit for MSMEs and individual home loan seekers, public sector banks (PSBs) are on track to finalise a novel credit assessment model based on digital footprints by October. This innovative approach is set to transform the way loans are disbursed, potentially offering a lifeline to numerous MSMEs (micro, small, and medium enterprises) and individuals who currently struggle to meet traditional criteria for credit, according to a senior government official. Digital footprint refers to the trail of data left behind while using digital services. For individuals, this can include online activities such as social media interactions, online purchases, utility bill payments, and other digital transactions. For MSMEs, it can also include business-related digital activities like salary payments to employees, payment of utility bills, bank transactions, and PF (provident fund) and NPS (national pension scheme) contributions, etc. By analysing the digital footprint, banks can gain insights into the financial behaviour and stability of an individual or business, even if traditional documentation like balance sheets or salary slips are unavailable. Revolutionising credit assessment The new digital footprint model marks a departure from the conventional reliance on balance sheets and account statements. Instead, PSBs will assess creditworthiness by evaluating a range of digital indicators, such as those enumerated above. "Even if an MSME employs just 10 people, by paying salaries and PF, it creates valuable data. This can be used to assess its creditworthiness. Current guidelines do not permit this, but we are updating them to consider these factors for loans," Financial Services Secretary Vivek Joshi said. Benefits for MSMEs and individuals The new model aims to bridge the credit gap for smaller MSMEs that often do not produce formal balance sheets. Traditionally, banks have treated MSMEs as corporates, with assessment guidelines that favour larger and medium enterprises. By incorporating digital footprint analysis, banks can provide credit to smaller businesses that are otherwise overlooked. Similarly, for home loans, the model will extend credit to individuals lacking formal salary proof or tax return statements by analysing their consumption patterns and spending behaviour. "A significant portion of the work has been completed, and we expect the model to be ready by next quarter," he said. Credit rating model By October, the banks will also develop an internal credit rating model. Currently, for loans above Rs 30-50 crore, and even below that threshold, banks ask companies for an external rating, which is a costly affair for MSMEs. To reduce the burden of getting an external rating for MSMEs, the government has directed the banks to develop an internal credit rating model. “The number of MSMEs obtaining credit from banks has been declining in recent years. This new approach will assist smaller units, which often have a limited credit history and inconsistent working capital cycles. Assessing their working capital needs is challenging due to the lack of high-frequency data. The primary focus should be on the borrower’s ability and intent to repay from future earnings, making collateral a secondary consideration. This shift would allow for more flexible repayment schedules for working capital facilities, especially for industries with unpredictable revenues,” Jyoti Prakash Gadia, Managing Director, Resurgent India, a financial solutions advisor, told Moneycontrol. While some risk of recovery may exist in such cases due to their unsecured nature, the real test lies in assessing repayment capacity based on the digital track record, and the ability to create a reasonable surplus to repay the loan. While the policy direction strongly supports increasing credit to MSMEs, banks will need clear guidance from the RBI (Reserve Bank of India) to implement these proposals effectively, he said. | null | null | 2024-07-29 13:04 |
moneycontrol.com | https://www.moneycontrol.com/news/business/earnings/adani-wilmar-q1-results-company-posts-rs-323-crore-profit-vs-loss-a-year-ago-shares-jump-over-5-12781001.html | Adani Wilmar Q1 results: Company posts Rs 323 crore profit vs loss a year ago; shares jump over 5% | Adani Wilmar Q1 results declared.Related stories. | Adani Wilmar on July 29 reported a massive standalone net profit of Rs 323 crore for the quarter ended June 30, 2025. The Gautam Adani company had posted a loss of Rs 38.44 crore in the year-ago period. Adani Wilmar, a joint venture between Adani Enterprises and Wilmar International, sells edible oil variants, including mustard, sunflower and soyabean. Revenue from operations increased to Rs 13,750.04 crore from Rs 12,378.83 crore in the year-ago period. The company recorded highest-ever EBITDA of Rs 619 core, up by 375 percent YoY on the back of stability in edible oil prices The company recorded highest-ever EBITDA of Rs 619 core, up by 375 percent YoY on the back of stability in edible oil prices Adani Wilmar's edible oil registered strong volume growth of 12 percent YoY and surpassed 1mn MT in June quarter. Food & FMCG sales crossed Rs 1,500 crore, with an underlying volume growth of 42 percent YoY. Commenting on the strong performance, Angshu Mallick, MD & CEO, Adani Wilmar Limited said, "The stability in edible oil prices augurs well for our business, allowing us to deliver strong profits over the past three quarters. In Q1’25, we achieved our highest-ever EBITDA of Rs 619 crore, a 375% increase YoY and PAT of Rs 313 crores. With our trusted brand, Fortune, we expect continued market share gains from regional brands. Our Food products are making significant inroads into Indian households, and we plan to meet this large demand by enhancing our Food distribution through our edible oil network. In under two years since launching our dedicated HORECA distribution channel, we have surpassed Rs 500 crore in revenue on a last twelve-month basis and achieved a 90% YoY volume increase in Q1.” Shares ofAdani Wilmaron July 29 were trading 5.44 percent higher at Rs 343.05 apiece on BSE after the results announcement. | null | null | 2024-07-29 12:43 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-boosts-planting-of-oilseeds-after-better-monsoon-rains-12780946.html | India boosts planting of oilseeds after better monsoon rains | India boosts planting of oilseeds after better monsoon rains. | India’s farmers increased sowing of oilseeds and pulses as the nation records monsoon rains higher than the seasonal average. Oilseed crops have been planted on about 17.17 million hectares (42.4 million acres), up 3.8% from a year earlier, according to a statement from the farm ministry on Friday. India is the world’s top importer of edible oils. The area allocated to pulses rose to 10.2 million hectares, a jump of 14% from a year earlier. Corn rose and rice was little changed. The country’s monsoon runs from June to September and rains are so far 3% above normal, according to the India Meteorological Department. Monsoon crop sowing normally begins in late May and peaks in July, with harvesting typically starting in late September. Area for major crops: NOTE: Corn figures are also included in total coarse cereals; oilseeds total adds soybeans and peanuts.  | null | null | 2024-07-29 12:05 |
moneycontrol.com | https://www.moneycontrol.com/news/business/honeywell-signs-long-term-maintenance-deal-with-air-india-12780909.html | Honeywell signs long-term maintenance deal with Air India | Honeywell signs long-term maintenance deal with Air India. | Global conglomerate Honeywell on Monday said it has inked a long-term pact with Tata Group-owned Air India for the maintenance of the Auxiliary Power Units (APUs) for the airline's existing and new aircraft fleet. The pact for the aftermarket support to Honeywell APUs, which will help the airline reduce unplanned maintenance cost and downtime and, in turn, ensure high aircraft dispatch and fleet availability, the Nasdaq-listed company said. The APU is a critical piece of aircraft equipment that provides electrical power and air conditioning to a plane while it is on the ground. It helps ensure passenger comfort and supplies the air source before a pilot is ready to start the main engines. Air India currently has over 300 aircraft, including its legacy fleet, which consists of over 100 Airbus A320, 15 Boeing B777 aircraft and its new fleet of 190 B737-8 aircraft, according to Honeywell. "We are strengthening our collaboration with Air India and helping in its fleet modernisation efforts, as part of a long-standing commitment to supporting the carrier's innovation and growth objectives," said Ashish Modi, President of Honeywell India. "This agreement forms part of our global growth and transformation plans, to help achieve more efficient, reliable operations, with maximised fleet availability, through Honeywell's advanced technology services," said Sisira Kanta Dash, chief technical officer, Air India. | null | null | 2024-07-29 11:49 |
moneycontrol.com | https://www.moneycontrol.com/news/business/simple-energy-raises-20-million-from-investors-12780840.html | Simple Energy raises $20 million from investors | Simple Energy raises $20 million from investors. | Electric two-wheeler startup Simple Energy on Monday said it has raised USD 20 million in a Series A funding round. The funding round saw participation from the company's current and new investors, the company said in a statement. The newly raised funds will be used to scale up the production capacity, support the company's entry into new markets and facilitate new product development, it added. "The enthusiastic reception from our initial customer base in Bengaluru has been truly remarkable, and we extend our heartfelt appreciation to all our investors for their trust in our brand," Simple Energy Founder & CEO Suhas Rajkumar said. The capital raised will be tactically deployed to bolster production capacity and expand the dealership network nationwide, he added. Simple Energy sells two products -- Simple One and Simple Dot One. Currently in a pilot phase in Bengaluru, Simple Energy has begun deliveries in the city and is preparing to open dealership stores in Bengaluru, Mysore, Chennai, Vijayawada, Goa, Vizag, Kochi, Mumbai, Pune, Ahmedabad, Surat, Delhi, and Hyderabad in the coming weeks, the statement said. | null | null | 2024-07-29 11:10 |
moneycontrol.com | https://www.moneycontrol.com/news/business/lt-bags-new-projects-in-india-overseas-for-setting-up-substations-transmission-lines-12780839.html | L&T bags new projects in India, overseas for setting up substations, transmission lines | L&T bags new projects in India, overseas for setting up substations, transmission lines.Related stories. | Infrastructure majorLarsen and Toubro(L&T) on Monday said it has bagged new projects in the country and abroad for setting up substations and transmission lines. The large orders have been bagged by the power transmission and distribution 9(PT&D) vertical of Larsen & Toubro, the company said in a filing to the BSE. L&T has classified the orders as 'large', which means the order size ranges between Rs 2,500 crore and Rs 5,000 crore based on the company's internal classifications. A strengthened grid speeds up clean energy transition and ensures reliable, resilient power supply. In India, the company has bagged orders to execute two double circuit transmission line packages that are associated with evacuation of power from Jaisalmer/Barmer Renewable Energy Zone in Rajasthan to substations in Madhya Pradesh for further interconnections."In its pursuit of providing sustainable and efficient power supply, Saudi Arabia is strengthening the 380kV network in the central region. PT&D has secured orders to build a 380kV Substation and 380kV overhead line segments," the filing said. In the United Arab Emirates, the company bagged projects to construct a substation and three substations, it added. Larsen & Toubro is a USD 27-billion Indian multinational engaged in engineering, procurement, and construction (EPC) projects, hi-tech manufacturing and services, operating across multiple geographies. | null | null | 2024-07-29 11:07 |
moneycontrol.com | https://www.moneycontrol.com/news/business/jsw-neo-energy-bags-192mw-hybrid-power-project-12780827.html | JSW Neo Energy bags 192MW hybrid power project | JSW Neo Energy bags 192MW hybrid power project.Related stories. | JSW Energy on Monday said its arm JSW Neo Energy has secured a 192-MW hybrid power project, including an additional 96 MW under the greenshoe option from Gujarat Urja Vikas Nigam. The capacity is awarded against tariff-based competitive bids invited for setting up a 500 MW Grid connected Hybrid Power Projects (Phase II), along with a greenshoe option for additional capacity up to 500 MW, a company statement said. According to the statement, JSW Neo Energy -- a wholly owned subsidiary of JSW Energy (or the company) -- has received a Letter of Intent (or LoI) from Gujarat Urja Vikas Nigam Ltd (GUVNL), for setting up a 192 MW grid connected hybrid power project, including an additional 96 MW under the greenshoe option. Subsequent to this capacity award, the company's total locked-in generation capacity increases to 16.2 GW, including the total locked-in hybrid capacity of 2.1 GW, according to the statement. The company expects to have an installed generation capacity of 10 GW by FY25, up from 7.5 GW currently. The JSW Energy has total locked-in generation capacity of 16.2 GW comprising 7.5 GW operational, 2.3 GW under-construction across wind, thermal and hydro and RE pipeline of 6.3 GW (PPAs signed for 2.0 GW). The company also has 4.2 GWh of locked-in energy storage capacity through battery energy storage system and hydro pumped storage project. The company aims to reach 20 GW generation capacity and 40 GWh of energy storage capacity before 2030. The JSW Energy has set an ambitious target of achieving carbon neutrality by 2050. | null | null | 2024-07-29 10:59 |
moneycontrol.com | https://www.moneycontrol.com/news/business/gensol-engineering-secures-rs-463-crore-solar-plant-project-in-gujarat-12780828.html | Gensol Engineering secures Rs 463 crore solar plant project in Gujarat | Gensol Engineering secures Rs 463 crore solar plant project in Gujarat. | Gensol Engineering on Monday said it has secured an order worth Rs 463 crore to set up a solar plant at Gujarat’s Khavda RE Power Park. The project will be a state-of-the-art solar facility, featuring a fixed tilt module mounting structure and other system components, according to a company statement. Gensol Engineering has received an order for the engineering, design, procurement, erection, testing, and commissioning of a Rs 463 crore solar plant at Khavda RE Power Park in the Rann of Kutch, Gujarat, the statement said. Shilpa Urhekar, Chief Executive Officer, Solar EPC (India), Gensol Engineering Ltd, said, "This win demonstrates the trust in the leadership of Gensol's project management capabilities and execution expertise...we are currently executing solar projects for a number of marquee customers totalling approximately 1 GW." Established in 2012, Gensol Engineering Ltd, is a leading player in the renewable energy sector specialising in solar power engineering, procurement, and construction (EPC) services, along with electric mobility solutions. | null | null | 2024-07-29 10:59 |
moneycontrol.com | https://www.moneycontrol.com/technology/meity-worried-about-the-big-tech-making-people-vulnerable-flags-spike-in-data-usage-article-12779461.html | MeitY worried about the Big Tech 'making people vulnerable', flags spike in data usage | Big Tech draws fire in government's presentation.Related stories. | The government is worried about the impact of Big Tech and the increase in data usage in "making people vulnerable" by revealing "patterns, trends and associations", an internal presentation of the Ministry of Electronics and Information Technology (MeitY) has said. The government also indicated that when it comes to Big Tech and the related increase in data usage, it is also concerned about citizens' growing digital footprint and the spike in the need for computational power. The presentation, on the larger theme of the Digital Personal Data Protection Act, was made to stakeholders in June after the BJP-led National Democratic Alliance government was sworn in for a third successive term earlier in the month. Moneycontrol has reviewed a copy of the presentation. The government over the past couple of years has pulled up Big Tech for non-compliance with IT rules, blocking orders and more. It plans to bring in several regulations such as the draft digital competition bill, which will have a bearing on Big Tech. Google, Uber, Alibaba, Airbnb, Facebook and Amazon were among the tech giants identified in the presentation. This particular deck, on big data and data privacy came as a measure to set the context on why there is a need for the DPDP Act. Apart from concerns over increased data use, the slide also talked about data privacy concerns arising from Big Data, including "sharing on social media, data gathered through social connections, interests and behaviours". It also mentioned how when shopping online data is gathered through customers' purchases, browsing habits and preferences. The IT ministry also talked about data being collected through software, services, cloud computing platforms and app interactions. Moneycontrol has reached out to the ministry and the companies named by the government in the presentation for comments and the article will be updated when their responses come in. The government is set to introduce a host of rules and regulations that will affect Big Tech. The IT ministry is set to release the DPDP Rules for public consultation. If the DPDP Act, passed in August 2023, in its current form provides a framework for the legislation, the rules process will shape its contours. As reported by Moneycontrol,Âdraft DPDP rulesÂcould be released within 100 days of the formation of the government. Moneycontrol was the first to report the government may exemptÂeducational institutions, health establishments, and certain government entitiesÂfrom the restrictions on the processing of children's data mandated under the Digital Personal Data Protection (DPDP) Act. The rules may also mandate that any platform processing the personal data of users, whether private or government, must immediately notify the Data Protection Board (DPB) of any data breach upon on coming to know of it. Another proposed legislation that can have an impact on Big Tech is the Digital Competition Bill. The draft bill was released in February, with theÂbroad idea of curbing anti-competitive practices by Big Tech companies. Apart from that, the government may also bring in a separate regulation to regulate artificial intelligence. | null | null | 2024-07-29 09:36 |
moneycontrol.com | https://www.moneycontrol.com/news/business/torrent-power-seeks-10-year-lng-supply-from-2027-12780659.html | Torrent Power seeks 10-year LNG supply from 2027 | Torrent Power seeks 10-year LNG supply from 2027. | India's Torrent Power has issued a tender seeking supplies of liquefied natural gas (LNG) over a period of 10 years, two industry sources said on Monday. The utility is seeking delivery of six cargoes per year from 2027. The tender closes on August 16. | null | null | 2024-07-29 09:10 |
moneycontrol.com | https://www.moneycontrol.com/automobile/tata-motors-in-legal-clash-with-epfo-over-pension-fund-transfer-report-article-12780640.html | Tata Motors in legal clash with EPFO over pension fund transfer: Report | In its annual report, Tata Motors noted that it had received requests from both current and former employees to extend pension benefits..Related stories. | Tata Motors has got into a legal dispute with the Employees' Provident Fund Organisation (EPFO) concerning the transfer of its pension funds, according to a report byThe Economic Times. The automaker, which holds its own exempted pension fund, had sought to relinquish this exemption status and transfer its employee provident fund corpus to the EPFO. However, the EPFO has demanded comprehensive documentation and additional details about the pension corpus for all employees before it approves the transfer. The EPFO claims that the provided information on certain accounts was inadequate for processing the transfer, as detailed in court filings reviewed by the daily. Government sources indicate that while the EPFO is willing to facilitate the transfer of the provident fund corpus, it is specifically requesting detailed information regarding the pension scheme. The EPFO has instructed Tata Motors to perform a thorough audit of its pension fund records and has rejected the company's request to surrender the exemption status. Tata Motors has not commented on the matter.Moneycontrolhas not independently verified the report. According to Paragraphs 38 and 39 of the Employee Pension Scheme, the government can grant exemptions from the pension scheme's provisions. The EPFO requires compliance with these criteria before it will consider Tata Motors' plea, an official toldET. The company, which reported losses for three consecutive years (2019-20, 2020-21, and 2021-22), sought automatic cancellation of the pension fund exemption and offered to cover the additional liabilities through actuarial valuation. Tata Motors applied to surrender the exempted pension fund effective October 1, 2019, but the process remains unresolved. In November 2022, the Supreme Court ruled that individuals who were members of a statutory pension fund as of September 1, 2014, could opt with their employer to contribute beyond the statutory limit and receive a pension based on the average salary of the last five years. In its annual report, Tata Motors noted that it had received requests from both current and former employees to extend pension benefits. The company stated that to address these concerns and avoid prolonged litigation, it had approved the joint options on the EPFO portal and communicated its intention to fund the additional liability. Consequently, a provision of Rs 691.07 crore was recorded for the nine months ended December 31, 2023, and disclosed as an exceptional item. The EPFO, however, redirected all joint applications to Tata Motors' pension trust. The company subsequently filed a writ petition in the Delhi High Court, seeking an order for the EPFO to begin administering its pension fund and accept the joint applications. Additionally, trade unions have filed a joint writ petition requesting expedited transfer of the pension fund corpus and acceptance of the employees' joint applications. The matter is scheduled for a hearing on August 8. | null | null | 2024-07-29 08:48 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/why-integrating-technology-platforms-is-essential-for-quickening-insolvency-resolution-12780515.html | Why integrating technology platforms is essential for quickening insolvency resolution | Access to integrated data would reduce the time taken for admission of insolvency applications and will reduce the burden of the NCLTs..Related stories. | By Dhananjay Kumar and Abhishek Mukherjee Finance Minister Nirmala Sitharaman, in theUnion Budgetspeech of 2024, promised certain breakthrough changes in the IBC. The proposed changes, being introduction of an ‘integrated technology platform’ and increasing the capacity and number of tribunals (whether its NCLT, appellate tribunal or DRTs), are aimed to address the key problem plaguing debt recovery and insolvency processes, which is time taken in resolving disputes or completing proceedings. While the impact of IBC has been substantial, the delays caused at various stages right from admission of insolvency applications till conclusion of a corporate insolvency resolution process (CIRP) have impacted the ‘time bound process’ objective of IBC and possibly resulted in erosion of value for stakeholders. Hence, these proposals are timely. Comprehensive technological intervention for the IBC was first proposed in a consultation paper released by the MCA in January 2023 which suggested integration of the fragmentated information structure amongst the various institutional pillars. Fragmented platforms Currently, the National Company Law Tribunal (NCLT), the Information Utility (IU), IBBI (being the regulator) and the ministry of corporate affairs (MCA) appear to operate on separate technological platforms resulting in information asymmetry among stakeholders. For example, NCLT’s portal manages e-filings, case status and orders; the IBBI portal has information repository for insolvency professionals (IPs) and their compliance reporting, case monitoring and orders, resources/publications for the public and CIRP related information; IU (NeSL) is the repository of debt and default related information; and the MCA 21 portal contains information relating to charges, directors and other financial and compliance related data of a company. However, there is no interoperability/interaction amongst these portals/platforms causing information asymmetry, data duplication, compliance issues, delays and impact on decision making. Therefore, there is certainly a need for (in the words of IBBI Chairperson) a ‘single source of truth’ that will increase the overall efficiency of the IBC ecosystem. Need for one-stop data source The NCLTs, while examining a Section 7 application (of the Insolvency and Bankruptcy Code), should be able to use all other information available in relation to the company. Access to such integrated data would reduce the time taken for admission of insolvency applications and will reduce the burden of the NCLTs by disposing off cases in an expeditious manner. Such a one-stop access to all the data pertaining to the company will also speed up the RP taking full control of the affairs of the company. Availability of an integrated platform and easy access to data will aid in faster decision making by the committee of creditors (CoC), improve possibilities of an interim finance and will also incentivize resolution applicants to submit better commercial proposals to the CoC, thereby resulting in value maximization and timely conclusion of a CIRP process. Similar automated systems can also be deployed for early identification of stress by using pre-determined indicators pertaining to the financial, operational and compliance records of the company. However, this will involve proper planning and preparation to ensure that the interface is easily accessible (without any data duplication or disparate data) but at the same time ensures data security as well as addresses confidentiality concerns. The case for segregating insolvency court The need for additional tribunals (both NCLT and DRT) and segregation of a company court and insolvency court has been the demand of the stakeholders for a while now.  Almost 21,000 cases are pending before the 15 NCLT benches with around 13,000 cases under IBC and rest being cases under the Companies Act. Situation before the DRTs is astonishingly dismal with over 2 lakh pending cases. The situation at the DRT prompted one of leading private sector banks to approach the Supreme Court requesting for urgently filling up of vacancies in the DRTs as 18 out of 39 DRTs didn’t have permanent presiding officers. What is needed at the moment is not only increase in the numerical strength to unclog the logjam but also to build adequate infrastructure (including technology based) and improvement in expertise to handle complex matters. Reforms expected Few other amendments that are expected by the industry to achieve quicker insolvency resolution include (i) making the prepack regime available to all companies (now available only for MSMEs) with certain tweaks such as reduced procedural formalities for initiation of the process as well as incentivizing the debtors to use this tool by reducing the approval thresholds, (ii) reduce the involvement of NCLT in fast track CIRP cases, and (iii) introduction of the out of court settlement mechanism poised to be a creditor-led resolution process with minimum interference of the NCLT. Achieving a faster insolvency resolution is the hallmark of an effective financial regime as it ensures improving liquidity and availability of resources for the market by quick turnaround or closure of a business. The proposals made in this Budget demonstrates the Government’s clear intent to boost investor confidence. (Dhananjay Kumar is Partner (Head-Insolvency&Restructuring) and Abhishek Mukherjee is Partner, Cyril Amarchand Mangaldas.) Views are personal and do not represent the stand of this publication. | null | null | 2024-07-29 08:15 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/finance-minister-hits-out-at-congress-govt-in-karnataka-for-high-inflation-poor-law-and-order-2-12780619.html | Finance Minister hits out at Congress govt in Karnataka for high inflation, poor law and order | Finance Minister hits out at Congress govt in Karnataka for high inflation, poor law and order.Related stories. | Union Finance Minister Nirmala Sitharaman on Sunday said that high inflation and poor law and order in Karnataka are the contributions of the Congress government. Responding to Karnataka Chief Minister Siddaramaiah’s statement that injustice was meted out to the state by the Centre, Sitharaman said the state’s economy worsened mainly due to the hike in prices of fuel, milk and stamp duty as well as poor capital expenditure. “The contribution of the state government is high inflation, much higher than the national average. And how I am saying that? Inflation between June 2023 and June 2024 the national average was 5.4 per cent. Karnataka is at 6.1 per cent,” Sitharaman, who is a Rajya Sabha member from Karnataka, told reporters here. Drawing a contrast between the BJP’s rule in the state and present Congress dispensation, the Minister said between June 2022 and May 2023, Karnataka's inflation was lower than the national average. While, national average from June 2022 to May 2023 was six per cent, Karnataka kept its inflation rate at 5.39 per cent, Sitharaman pointed out. Citing the reasons, the FM said petrol and diesel prices were hiked by Rs 3 and Rs 3.5 respectively. Milk prices have gone up by Rs 5, property guidance value has been increased from 25 per cent to 30 per cent, stamp duty charges have been increased by 200 per cent to 500 per cent, vehicle registration fee has been hiked by three per cent and additional lifetime tax on electrical vehicles have been imposed. “The revenue deficit is very high, capital expenditure spending is not happening or even reduced with statements saying because I am doing these welfare, the five packages (guarantees), which I have promised, I can’t spend money on capital expenditure. If you don’t spend money on capital expenditure, employment is not going to come to Karnataka. You won’t have your youth employed. Unless capital expenditure money is spent, your demand will not increase, consumption will not increase and youth employment will not happen,” she said. According to Sitharaman, the open market borrowing in Karnataka has increased and has already touched over Rs one lakh crore. “There was a time when Karnataka was revenue surplus just two years ago, but now it’s revenue deficit. Industries are leaving, law and order is worsening and SC/ST funds are being siphoned off,” she alleged. Dismissing Siddaramaiah’s allegation that Karnataka did not get its due share in thebudgetthis year, Sitharaman said there was a lot of misinformation being spread about fund allocation. She termed as 'completely false' the state government's charge that the Centre did not give Karnataka its due. According to her, the tax devolution between 2004 and 2014 when the Congress led UPA government was in power at the Centre, Karnataka received only Rs 81,791 crore over ten years whereas between 2014 and 2024 under Prime Minister Narendra Modi, Karnataka received Rs 2,95,818 crore. “So quickly if I have to compare, under the UPA per annum, you (Karnataka) had Rs 8,179 crore under tax devolution in 10 years, whereas PM Modi gave Rs 45,485 crore this year alone,” she noted. Karnataka received Rs 60,779 crore as grant-in-aid in 10 years under the UPA, which means Rs 6,077.9 crore per annum. However, under the NDA rule in the last year, it’s Rs 2,36,955 crore. She also noted that post COVID, beginning from 2020-21 to 2023-24 Karnataka received a total Rs 8,312 crore interest free loan for 50 years. While the allocation for Railways between 2009 and 2014 was Rs 835 crore for Karnataka, in 2024-25 budget Rs 7,559 crore was allocated for the department, the FM explained. There are 31 ongoing projects pertaining to laying new railway lines worth Rs 47, 016 crore in Karnataka, Sitharaman said adding that since 2014, 638 railway flyovers have been built. Also, seven Vande Bharat trains are operationalised in the state. Referring to the Smart City project, she said seven cities have been selected and Rs 6,428 crore have been given to Karnataka. She added that 904 projects worth Rs 15,000 work orders have been issued related to the project. As many as 4,600 roads have been constructed already in Karnataka. The NDA government has already invested over Rs one lakh crore on highways related projects in the recent years. Many greenfield projects are being built under the Bharat Mala Project Phase-1, the FM said. | null | null | 2024-07-29 07:55 |
moneycontrol.com | https://www.moneycontrol.com/news/telecom/vodafone-idea-offers-to-settle-rs-1500-cr-nokia-dues-in-tranches-by-end-2025-report-12780602.html | Vodafone Idea offers to settle Rs 1,500-cr Nokia dues in tranches by end-2025: Report | The joint venture between the UK's Vodafone Plc and the Aditya Birla Group recently secured around Rs 23,000 crore in equity financing..Related stories. | Beleaguered telecom service providerÂVodafone Idea(Vi) has proposed a plan to settle its remaining legacy operational dues to Finland's Nokia, amounting to approximately Rs 1,500 crore, through multiple cash instalments by December 2025, sources toldThe Economic Times. However, the Finnish vendor has not yet accepted the proposal, reported the daily. The telecom company recently allocated 1,027 million equity shares to Nokia through a preferential issue, clearing about half of its dues, roughly Rs 1,520 crore. Following this share allocation, Nokia Solutions and Networks India, Nokia's local unit, now holds a 1.47 percent stake in Vi, according to the telco's latest shareholding structure filing on July 19. Also Read |ÂVodafone sells further 10% stake in Vantage Towers for 1.3 billon euros Before the preferential share issue, Vi's total dues to Nokia stood at Rs 3,000 crore (approximately Rs 300 million). Nokia's Q2 earnings report indicated that the financial impact of Vi's recent equity share allotment would reflect in its Q3 results. Both Nokia and Vi have not responded to queries fromThe Economic Timesas of Sunday.Moneycontrolhas not independently verified the report. Despite delays in clearing the vendor dues, Vi's senior management remains confident that operational creditors, including Nokia, will continue to support the company. This confidence stems from the critical nature of Vi's upcoming 4G network expansion and 5G rollouts for European network vendors Nokia and Ericsson. These vendors have been experiencing significant revenue declines due to India's leading telecom operators Reliance Jio and Bharti Airtel, reducing their FY25 network capital expenditures after completing their nationwide 5G rollouts. Also Read |ÂVodafone Idea seeks urgent listing of curative plea on AGR dues, CJI to take a call Murthy GVAS, Vi's chief financial officer, assured analysts at JP Morgan last month that vendor negotiations would remain unaffected by payment issues. The telecom company has been in talks with Nokia, Ericsson, and Samsung to purchase equipment for its 4G network expansion and 5G service rollout. The joint venture between the UK's Vodafone Plc and the Aditya Birla Group recently secured around Rs 23,000 crore in equity financing. Vi is now seeking to raise an additional Rs 23,000-25,000 crore through term loans from an SBI-led banking consortium and to arrange another Rs 10,000 crore via non-fund-based facilities. | null | null | 2024-07-29 07:49 |
moneycontrol.com | https://www.moneycontrol.com/news/business/billionaire-battle-heats-up-as-adani-challenges-birla-in-cement-12780588.html | Billionaire battle heats up as Adani challenges Birla in cement | Billionaire battle heats up as Adani challenges Birla in cement.Related stories. | Battle lines are being drawn in India’s cement space as Gautam Adani’s expansion spree sets off a race with fellow billionaire Kumar Mangalam Birla’s UltraTech Cement Ltd. to build capacity and snap up assets. The clash of titans is likely to intensify as the deep-pocketed tycoons seek to dominate supplies of a building material that is critical to sustaining India’s infrastructure boom. Adani’s ambitious upstart and the sector leader UltraTech have already done six deals in less than two years, with Birla’s cement maker announcing the seventh on Sunday to control a coveted regional player. At least half a dozen smaller rivals are still up for grabs. “Adani’s philosophy whenever they enter a sector is to dominate and take on competitors on a war footing,” said Aditya Kondawar, Pune-based partner at wealth management firm, Complete Circle Capital Pvt. “Once Adani came in, there was fresh aggression in the sector which motivated UltraTech also to expand. When competition is at the door, you either step up or step aside.” Adani Group’s big bang entry in 2022 upended the local pecking order — it became No. 2 cement maker overnight with the acquisition of Ambuja Cements Ltd. and ACC Ltd. — but it spent much of 2023 fire-fighting after Hindenburg Research’s scathing report. The ports-to-power conglomerate only got back to its expansionist ways fully this year, stoking a turf war in cement as Birla’s entrenched incumbent digs in its heels. M&A WarchestAdani, already down four acquisitions in the sector since it entered, is looking to double annual production capacity to 140 million tons by 2028. The group is scouting for more cement assets to expand its reach, procure key raw material — limestone reserves — and has a war chest of about $4.5 billion for acquisitions over the next two years, according to people familiar with the discussions who spoke on the condition of anonymity. The Adani Group, which controls India’s largest private sector port operator, is aiming to drive down costs significantly even if it can’t match the cost efficiency of Chinese cement makers, one person said. Sea or inland water transportation costs a fraction of transport via trucks and Adani Ports & Special Economic Zone Ltd.’s network will be helpful there, this person added. Adani Ports is already planning a 2-million-ton cement grinding unit at its transshipment terminal in Kerala. Green energy from group firms can help pare fuel costs, the person said. Leadership Moat To bolster the moat around its leadership, UltraTech acquired a smaller rival last year. In June, it bought a minority stake in a Chennai-based cement maker in June before ramping it up to majority control this week —  a move seen as marking its territory to fend off Adani. It’s also circling another target. Birla’s cement giant will continue to expand operations and snap up assets to reach 200 million tons annual capacity by 2027, people familiar with Birla’s strategy said. Representatives for the Adani Group declined to comment while those for UltraTech didn’t respond to an emailed request for comments. Mission to BuildPrime Minister Narendra Modi’s mission to build everything from airport and power facilities to roads, bridges and tunnels will spur India’s infrastructure investment to 15 trillion rupees ($179.2 billion) by March 2026, according to Crisil Ratings. This will spawn massive demand for cement, outpacing supply in the coming years and creating opportunities for expansion that neither Adani, Asia’s second-richest person, nor Birla can resist. Adani, which acquired Penna Cement Industries Ltd. last month, has looked at Jaypee Group’s as well as Orient Cement Ltd. in the recent past, according to local media reports. Orient Cement has now drawn interest from UltraTech also. Others such as Saurashtra Cement Ltd., Mangalam Cement Ltd., Vadraj Cement Ltd. and Bagalkot Cement Industries Ltd. may also emerge as targets, people familiar said. The southern parts of India is the most fragmented market for cement in the country, with the highest installed capacity and a large number of firms which have not expanded capacity over the years, Sanjeev Kumar Singh and Mudit Agarwal, analysts at Motilal Oswal Financial Services Ltd. wrote in a July report. “It is possible that a few of these entities might consider exiting the industry if they are offered favorable valuations,” Singh and Agarwal wrote. Hunting GroundThat makes this geography the perfect hunting ground for both the billionaires, who have already begun cliching deals. Adani’s Penna Cement purchase in June was to boost its footprint in southern India. Days later, UltraTech bought a 23% stake in India Cements Ltd., a Chennai-based firm with almost 14.5 million tons capacity, in a move to block any possible Adani overtures. On Sunday, Birla’s firm bought almost a third more of India Cements for $472 million, pushing its total stake past 55%. It “enables UltraTech to serve the southern markets more effectively” and expedites the path to 200 million tons target, Birla said in a statement Sunday. “The pace of acquisitions in the cement industry was inevitable because of government spending in infrastructure and housing,”said Aveek Mitra, New Delhi-based founder of Aveksat Investment Advisory. India has about 100 listed and closely held cement makers, with most having tiny market shares, according to Mitra. “Asset block of 28 million tons is in pipeline for acquisition” and M&A deals will continue since the large incumbent players want to maintain their market share, Anupama Reddy, co-group head of corporate ratings at ICRA Ltd. wrote in a June 13 note. To be sure, even with all the aggressive expansion it’d still be hard for Adani to topple UltraTech. The gap between the two rivals is significant and will remain so, based on announced capacity additions. Anti-Trust ScrutinyAdani and UltraTech will also need to be mindful of scrutiny from India’s anti-trust watchdog and avoid acquisitions in geographies where they have high market share concentration. While cement demand is strong now, it could reduce in four or five years, according to Jyoti Gupta, a research analyst at Nirmal Bang Institutional Equities. Smaller players like Dalmia Bharat Ltd., Shree Cement Ltd. and JSW Cement Ltd. are also scaling up. “When infrastructure spending will reduce, and there is ample supply of residential properties, will there be enough demand to utilize all this added capacity?” Gupta said. | null | null | 2024-07-29 07:01 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/not-all-residents-leaving-india-require-tax-clearance-certificates-finmin-12780347.html | Not all residents leaving India require tax clearance certificates: FinMin | The Budget for 2024-25 introduced a few amendments for those planning to move abroad from India..Related stories. | The mandate to obtain tax clearances for residents leaving India is not for everyone, the finance ministry clarified on July 28. "As per section 230 of the Income-tax Act, 1961, every person is not required to obtain a tax clearance certificate. Only in the case of certain persons, in respect of whom circumstances exist which make it necessary to obtain a tax clearance certificate will be required to obtain such certificate," the ministry said. TheBudgetfor 2024-25 introduced a few amendments for those planning to move abroad from India. The ministry added that only in certain cases would an individual need to obtain such a tax clearance: -Where the person is involved in serious financial irregularities and his presence is necessary in investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him. -Where the person has direct tax arrears exceeding Rs 10 lakh which have not been stayed by any authority. "Further, a person can be asked to obtain a tax clearance certificate only after recording the reasons for the same and after taking approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax," the ministry said in a statement. The Budget introduced a change to ensure that no one having tax liabilities under the Black Money rules will leave the country without a clearance from the authorities. However, the rules under Section 230 apply differently to residents and non-residents. On the tweak in the Budget pertaining to the requirement of a no-liabilities clearance certificate with respect to black money, the ministry said, "it has been proposed to add the reference of Black Money Act, 2015 in the list of Acts under which any person should clear his liabilities in order to obtain the tax clearance certificate." | null | null | 2024-07-28 13:57 |
moneycontrol.com | https://www.moneycontrol.com/news/business/chennai-super-kings-ownership-to-be-unaffected-by-india-cements-sale-12780357.html | Chennai Super Kings ownership to be unaffected by India Cements sale | The stake held by the India Cements Shareholders Trust fell to 1.76 percent in FY23 from over 30 percent in the previous year..Related stories. | There will be no change, at least for now, in the ownership of the Indian Premier League (IPL) cricket team Chennai Super Kings (CSK), controlled by India Cements promoters N. Srinivasan and his family, once they sell their stake in the cement maker to Aditya Birla Group’s UltraTech Cement as announced on Sunday. The transaction will have no impact on the controlling shareholding of CSK, in which Srinivasan and his family now own 28.14 percent, according to people familiar with the matter. In an exchange filing,UltraTech Cementsaid that itsboard has approved the purchaseof a 32.72 percent stake inIndia Cementsfrom its promoters and their associates, adding to its initial acquisition of a 22.77 percent stake in June at Rs 268 per share. The latest transaction, totalling Rs 3,954 crore at Rs 390 per share, will increase UltraTech’s ownership in India Cements to 55.49 percent, necessitating a mandatory open offer at the same per-share price. CSK’s latest annual report lists seven names as promoters: EWS Finance and Investments (21.47 percent), Rupa Gurunath as trustee of the Financial Services Trust and Securities Services Trust (6.48 percent), N. Srinivasan (0.14 percent), Chitra Srinivasan (0.02 percent), Rupa Gurunath (0.01 percent), S. K. Ashok Baalaje (0.02 percent), and Rajam Krishnamurthy (1,940 shares), Moneycontrol reported on September 9 last year. The reorganization happened after the India Cements Shareholders Trust distributed almost its entire holding of CSK shares to eligible promoter and non-promoter shareholders of India Cements. The stake held by the India Cements Shareholders Trust fell to 1.76 percent in FY23 from over 30 percent in the previous year. The trust distributed 384,882 CSK shares to non-promoter shareholders of India Cements and 86.7 million shares to promoters of India Cements, according to company’s 2023 annual report. CSK was created as a division of India Cements in 2008. But in 2015, the cement company hived off CSK as an independent company by selling its entire holding in CS to a trust called India Cements Shareholder Trust, which was to be controlled by three independent directors of India Cements. Subsequently, in FY23, the trust distributed the CSK shares to promoter and non-promoter shareholders of India Cements. Super Kings is one of the most successful IPL franchises, having won five IPL titles (same as Mumbai Indians). In the IPL, they have appeared in a record 10 finals and qualified for the playoff stages 12 times out of the 15 seasons they have played, more than any other team. Super Kings have also won the Champions League Twenty20 twice, in 2010 and 2014. | null | null | 2024-07-28 13:53 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/ultratech-cement-board-approves-acquisition-of-india-cements-12780217.html | UltraTech Cement board approves acquisition of India Cements | The company has executed several share purchase agreements dated 28th July 2024, aiming to acquire up to 10.13 crore equity shares.Related stories. | UltraTech Cement Ltd's board has approved the purchase of a 32.72 percent stake in India Cements Ltd from its promoters and their associates, adding to its initial acquisition of a 22.77 percent stake in June at Rs 268 per share.The latest transaction, totalling Rs 3,954 crore at Rs 390 per share, will increaseUltraTech's ownership in India Cements to 55.49 percent, necessitating a mandatory open offer at the same per-share price. Additionally, Ultratech Cement has announced an open offer to buy up to 8.05 crore shares, or 26% of the equity, from public shareholders at Rs 390 per share, totaling approximately Rs 3,142.39 crore. This offer complies with SEBI regulations. UltraTech has announced an open offer for India Cements at a price 4% higher than the closing price on Friday. In June, UltraTech had acquired a 23% stake in India Cements through block deals at Rs 269 per share. Additionally, Ultratech Cement has entered into a share purchase agreement, SPA 2, to acquire 1.99 crore equity shares, representing 6.44 percent of the equity share capital, from Rupa Gurunath, Trustee of Security Services Trust, and Rupa Gurunath, Trustee of Financial Service Trust, both members of the promoter group. This acquisition is valued at Rs. 778.21 crore. Ultratech Cement will acquire 1,33,16,783 equity shares, representing 4.30% of the equity share capital, from Sri Saradha Logistics Private Limited. This transaction is valued at Rs. 519.35 crore. Collectively, these acquisitions are referred to as the "Primary Acquisition." The successful completion of these transactions is contingent upon receiving the necessary statutory and regulatory approvals. N. Srinivasan, who will turn 80 in January, has been at the helm of India Cements since 1989, following the death of his father, T.S. Narayanaswami. His daughter, Rupa Gurunath, a whole-time director, and his wife, Chitra Srinivas, who serves as a board director, reportedly have no interest in running the business after Srinivasan steps down due to health issues. | null | null | 2024-07-28 12:24 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/falguni-nayar-completes-term-as-non-executive-independent-director-at-dabur-12780291.html | Falguni Nayar completes term as non-executive independent director at Dabur | Currently Falguni serves on board of a number of blue chip companies. | Falguni Sanjay Nayar, the Non-Executive Independent Director of Dabur, has completed her second term with the company as of July 27, 2024. Consequently, she has ceased to be a Director of the company effective today, July 28, 2024, according to a notification in an exchange filing by Dabur. Falguni Nayar is well-known in the business community as the Founder and CEO of Nykaa.com, a leading online beauty and wellness retailer. | null | null | 2024-07-28 11:18 |
moneycontrol.com | https://www.moneycontrol.com/news/trends/expert-columns/focus-on-these-6-sectors-post-budget-pharma-and-it-could-be-dark-horses-12780169.html | Focus on these 6 sectors post budget; pharma and IT could be dark horses | Budget 2024.Related stories. | By Mohit Khanna, Fund Manager at Purnartha One Strategy In general, the market's expectation was that the government will use the RBI’s dividend payout for welfare activities. However, the Government chose to use almost the entire payout to reduce the fiscal deficit to 4.9 percent or by 70bps YoY. This is commendable, especially when this was the first Budget under a coalition government. The FM re-distributed the expenditure basket while maintaining the capital expenditure at Rs 11.11 lakh crore (as announced in the interimbudget) and increasing the allocation to the rural sector. Further, the FM introduced a new policy for education and skilling – Employment Linked Incentives (ELI). So, we can see that the Government’s focus has shifted from PLI (production linked incentive) to ELI. Let me share 2 data points that was highlighted in the Economic Survey –1) India needs to create ~80 lakh jobs per year till 2036 at least2) Factories with 100+ workers have seen 13 percent workforce growth – implying that India's manufacturing is getting more organized. By introducing ELI, the government is looking to accelerate job creation in the formal sector. This should have a gradual but a strong positive impact on the economy over the next few years. Another aspect is that the Government’s spending was lower in the first quarter of the fiscal due to the general elections – plus we have another Budget in February 2025 i.e. only 6 months from now. This means that the yearly expenditure should now be done in less time. There can be two possible outcomes –1) Government meets its expenditure targets – proving a strong tailwind to multiple sectors2) Government spends less – beating fiscal deficit target – leading to lower inflation and possible lower interest rates by RBI under its Monetary Policy. Sectors in Focus Infra/Capital Goods & Railways Allocation for new infra projects in Bihar, Andhra Pradesh (for Amravati) should help the EPC players focused in those regions. New power plant announcement is also positive. On the Railway side, the allocation of Rs 2.7 lakh crore remained flat as compared to FY24 RE. However, as the government has increased the procurement quantity target (Wagons by 46 percent, Electrical locomotives by 25 percent), my sense is that actual expenditure could increase in the sector. Additionally, a dedicated freight corridor would also lead to higher demand for rolling stock. This could be incrementally positive for players manufacturing the capital goods for the sector. Allocation to highways remains the same as in the interim budget while allocation to other roads has been increased 6 percent (as compared to FY24 RE). Agriculture No major change as compared to the interim budget/ongoing trend. Fertilizer subsidy for both NBS and Urea remains unchanged from the interim budget. Release of 109 high-yielding crops should have a positive impact on farm income – but the impact should only be gradual and difficult to measure at this point in time. Reduction in BCD (basic customs duty) for aquaculture inputs is positive and will help the sector re-gain a bit of the lost ground in the export markets. Real Estate & Building Material The government has removed indexation benefits for LTCG (Long Term Capital Gains) calculation. I do not see any major impact from the end-user perspective in the middle-income group category. However, there could be some slow-down in the investment property segment as the holding period of such assets should decrease overtime. On the contrary, the regulatory landscape for REITs and InvITs has significantly improved, creating a more level playing field for investors. By reducing the long-term holding period from three to one year, these asset classes have become more attractive. This positive change is expected to stimulate increased allocation of REITs and InvITs within investor portfolios, diversifying their holdings and potentially enhancing returns. Affordable Urban housing saw ~36 percent increase in allocation (as compared to FY24 revised estimates) with PMAY (U) securing an allocation of Rs 30,170 crore. This should not only help developers focusing on the segment but also the building material companies like Cement, Tiles, Pipes, etc. Business Services Staffing, Skilling and recruitment services companies could see a start of strong tailwinds with ELI (Employment Linked Incentives). However, due to the lack of much empirical evidence, it is difficult to estimate the actual impact of such a policy. Nevertheless, the Government's expenditure announcement totaling Rs 2 lakh crore over the next 5 years is too good to be ignored. Capital Markets Increase in CG (capital gains) tax rates and STT (Securities Transaction Tax) is marginally negative for the trading volumes but it was a much-needed bitter-pill to discourage high-frequency speculative trades in the F&O segment by unskilled retail investors. Interestingly, SEBI’s recent proposal to allow a new asset class with F&O products will help the sector over the medium-term. Consumer The finance minister has laid a lot of emphasis on job creation and has also increased allocation towards rural. While this is positive for consumption related sectors, the new investment in these sectors should only be gradual as it is already expensive. Import duty cut on precious metals should ultimately help retailers. Inventory losses due to lower pricing should be well mitigated by higher volume sales (demand). Annual tax saving of Rs 17,500 per year should be marginally positive for consumption in general. Additionally, Pharma & IT could be the dark horses but not really related to budget announcement but other external factors like the recent Rupee depreciation following China's rate cut. | null | null | 2024-07-28 07:46 |
moneycontrol.com | https://www.moneycontrol.com/news/trends/expert-columns/budget-2024-sanctity-of-macro-preserved-without-populism-12780162.html | Budget 2024 – Sanctity of macro preserved without populism! | Budget 2024.Related stories. | By Hiren Ved, Director & Chief Investment Officer at Alchemy Capital Management At first glance, thebudgetseemed populist, but it is not! Yes, there is a big push to try and fire up employment but incentivising the private sector to hire more and tackle the big challenge of unemployment given that we need to create 7-8 million new jobs annually. Think of it as a PLI (production linked incentive) for employment generation. How this will be operationalised on the ground is to be seen, but the intent is in the right direction. The moot question in the minds of investors was – what the government will do with the additional Rs 1.4 lakh crore (Rs 1.4 trillion) of resources that it has due to higher RBI dividend and better tax collections? Will it be more populist, or will it increase the allocation for capex and fiscal consolidation? The Finance Minister’s decision to allocate nearly 70 percent of this surplus to reduce the fiscal deficit, and 30 percent to increased transfers to states, while maintaining capex at Rs 11 lakh crore, is prudent. This somewhat anticipated allocation of Rs 0.4 lakh crore to the two states - Bihar and Andhra, both very important allies in the NDA government - can also be construed as an infrastructure stimulus, as this amount will be spent on building infrastructure in these states including power, roads, irrigation, and education. By aggressively bringing down the fiscal deficit to 4.9 percent for FY25 and showing a glide path to 4.5 percent by FY26, is a signal to global rating agencies to upgrade India’s sovereign rating. This strategic move will help in bringing down the cost of capital in India on a long-term structural basis and bring down long term interest rates in the country. From a capital markets perspective, the increase in STCG (Short Term Capital Gains) and LTCG (Long Term Capital Gains) on listed equities was a slight dampener. But one can take comfort from the fact that this was part of a larger design to simplify the capital gains tax on all asset classes – equites both listed and unlisted, debt, gold and real estate. The capital markets will take this in its stride, as it always has, and investors will move on. Given that there was an overwhelming feeling that some regulatory and tax interventions would be taken to curb the excessive speculative fervour in the Futures and Options market, the increase in STT (Securities Transaction Tax) is welcome. There could be more follow up measures like increasing lot sizes and rationalising the expiry days, but once that is done the hanging sword on regulatory interventions would be out of the way, in our view. The budget also introduced several forward thinking and strategic measures aimed at sustainable growth, followed by initiatives with emphasis on R&D and leveraging DPI (Digital Public Infrastructure) in agriculture. For instance, initiatives such as digital soil health cards, precision farming tools and blockchain-based supply chain management systems. These technologies can significantly enhance crop yields, reduce wastage, and improve long-term productivity and efficiency of the agricultural supply chain. This is a strategic shift from traditional MSP (Minimum Support Price) hikes, thereby reducing market distortions & fiscal burdens. Custom duties on several products have been reduced to make Indian manufacturing sector more competitive, notable being a steep reduction in gold and silver with a view to both, discourage smuggling activities that thrive on the arbitrage created by high import taxes. Further, this will not only bring more trade into the formal economy but also seek to enhance the competitiveness of the domestic jewellery sector, making it more attractive for both local consumption and export markets. The reduction in MNC tax rates from 40 percent to 35 percent is to encourage greater investments in India, though that’s not the only reason why MNCs would come to India. On the whole, the budget is well-balanced and disciplined for the Indian economy and should continue to foster growth with more inclusivity… well, until the next budget! | null | null | 2024-07-28 07:45 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/itc-hotels-opens-116-key-welcomhotel-belagavi-in-karnataka-12780138.html | ITC Hotels opens 116-key Welcomhotel Belagavi in Karnataka | ITC Hotels on Thursday announced the opening of its 25th property under the Welcomhotel brand in Belagavi in Karnataka.. | ITC Hotels on Thursday announced the opening of its 25th property under the Welcomhotel brand in Belagavi in Karnataka.”The opening of 116-key Welcomhotel Belagavi aligns with the expansion of the Welcomhotel brand. Welcomhotel is the new age traveller’s key to curated immersive experiences. ”The brand Welcomhotel is aligned with ITC Hotels’ asset light growth strategy to take our brand and services to tier II markets in addition to prime metro cities,” ITC Hotels Chief Executive Officer Anil Chadha said in a statement. The brand opened seven managed hotels and three owned assets with a total of 916 keys over the last 5 years. In the last financial year (FY 2023-24), four new management deals with 406 keys were signed for the Welcomhotel brand, which are slated to open over the coming 4-5 years. | null | null | 2024-07-27 21:30 |
moneycontrol.com | https://www.moneycontrol.com/news/business/bajaj-auto-sees-bright-future-in-cng-motorbikes-12778756.html | Bajaj Auto sees bright future in CNG motorbikes | Bajaj’s Freedom motorcycle was initially launched in states with a high penetration of CNG filling stations, such as Maharashtra, Gujarat and the metropolitan area around capital Delhi, Executive Director Rakesh Sharma said. (Image: BajajAuto.com).Related stories. | Bajaj AutoLtd., India’s No. 1 maker of auto rickshaws, said it’s received around 6,000 orders for its new compressed natural gas-powered motorbike — a vehicle it bills as a world first — as consumers seek more affordable ways to embrace greener passenger transport. Bajaj Freedom, a sports motorcycle with a 124 cubic capacity engine, was launched earlier this month with a starting price of 95,000 rupees ($1,135). Some 100 of the bikes have already been delivered to customers, Executive Director Rakesh Sharma said in an interview. Sharma puts the addressable audience for the Freedom in the hundreds of millions. Most of Bajaj’s typical customers are price conscious, earning less than 40,000 rupees a month, and the Freedom can shave up to 1,800 rupees off fuel costs versus similarly sized bikes that run on petrol or diesel, he said. “This customer is all across the country,” Sharma said. Being lead and sulfur free, CNG-run vehicles can reduce greenhouse gas emissions and they’re also quieter than gasoline or diesel ones, which results in less noise pollution. While high levels of domestic production mean CNG in India is cheaper, its lower energy density can require vehicles to refuel more frequently. India’s petroleum and gas ministry has said it aims to build 17,500 CNG filling stations across the country by 2030. Pune-based Bajaj’s Freedom motorcycle was initially launched in states with a high penetration of CNG filling stations, such as Maharashtra, Gujarat and the metropolitan area around capital Delhi, Sharma said. It’s now open for orders across the country. Bajaj also plans to launch the bike in countries that commonly use CNG as an alternative fuel too, like Argentina, Venezuela, Nigeria and Tanzania, Sharma said, without specifying any timeline. Although Bajaj is India’s top maker of auto rickshaws it isn’t No. 1 in scooters. There, it places fourth, with a market share of around 12% behind Hero Motocorp Ltd., Honda Motorcycle and Scooter India Pvt.and TVS Motor Company Ltd.. “We’ve heard other competitors are also looking at developing CNG two wheelers,” Sharma said. “It’s a defining movement for the motorcycle industry.” | null | null | 2024-07-27 16:19 |
moneycontrol.com | https://www.moneycontrol.com/news/business/coal-india-sets-august-16-as-record-date-for-final-dividend-12779997.html | Coal India sets August 16 as record date for final dividend | The dividend, once approved, will be distributed to shareholders holding equity shares as of the record date, either in electronic or physical form.. | Coal India has announced that it has fixed Friday, August 16, 2024, as the record date to determine the eligibility of shareholders for the final dividend payment of Rs 5 per share for the financial year 2023-24. This follows the company's board meeting on May 2, 2024, where the final dividend was recommended, pending approval at the upcoming Annual General Meeting (AGM). The dividend, once approved, will be distributed to shareholders holding equity shares as of the record date, either in electronic or physical form. In compliance with the Income Tax Act, 1961, Coal India will deduct taxes at the prescribed rates, with the rate varying based on the shareholder's residential status and the documents submitted for dividend payment. | null | null | 2024-07-27 13:48 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/flavour-of-department-has-changed-from-enforcement-to-taxpayer-centric-cbdt-chairman-12779824.html | Flavour of department has changed from enforcement to taxpayer centric: CBDT chairman | Department becoming more taxpayer centric.Related stories. | The central board of direct taxes has become more focused on the taxpayer rather than enforcement, said Ravi Agrawal, CBDT chairman, at the Confederation of Indian Industry session on July 26. “The flavour of the department has changed from being an enforcement department to a taxpayer-centric department," Agrawal noted, highlighting that theUnion Budgetwas a step forward. Agrawal also pointed to an increasing focus on digitalisation and resolution. “Multiple litigations were not leading us anywhere, the procedures have been standardised. We have come up with Vivad se vishwas scheme, keeping in view that last VSVS was successful,” the CBDT chairman said at the CII session. The chairman also noted that the new capital gains tax regime is expected to benefit in most cases. Sanjay Kumar Agrawal, the CBIC chairman, extolled the benefits of a phased manufacturing programme for mobile phones. “Phased manufacturing programme has borne fruit and we have a robust manufacturing of mobile phones. Time has come to reduce rate of duty to 20 percent to 15 percent, because they cannot remain high forever,” he said. He also noted that the government was confident of achieving its GST target, as revenue collections picked up in the last quarter. “There is a significant emphasis on rate rationalisation, a comprehensive review of rate structure will be done over the next six months,” he pointed out. | null | null | 2024-07-27 10:44 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/govt-asks-public-insurers-to-move-out-of-motor-health-insurance-to-reduce-losses-dfs-secy-12779789.html | Govt asks public insurers to move out of motor, health insurance to reduce losses: DFS Secy | Financial Services Secretary Vivek Joshi.Related stories. | The Union government has asked the public sector insurance companies, who are struggling to improve their solvency ratio and profits, to come out of motor and health insurance segments, which have been identified as significant loss-making areas. This directive comes as part of a broader strategy to enhance the financial health and operational efficiency of these insurers, Department of Financial Services Secretary Vivek Joshi said. "We are nudging them not to focus on toplines. Earlier they used to take business to show growth. Now we are asking them to come out of loss-making segments like motor and health insurance," Joshi told Moneycontrol in an interview. The move is aimed at reducing the burden of unlimited liability claims associated with motor insurance and high claim ratios in health insurance. The three major public sector insurers – United India Insurance Company (UIIC), National Insurance Company Limited (NICL), and Oriental Insurance Company Limited (OICL) – received a combined capital infusion of Rs 17,500 crore in two phases, with Rs 9,950 crore injected in FY 2019-20 and Rs 7,500 crore in FY 2020-21. The government’s directive to move away from motor and health insurance is part of a strategy to steer these companies towards more profitable and manageable segments. Motor insurance, in particular, has been problematic due to the unlimited liability associated with accident claims, unlike aviation and railway insurance, which have caps on claims. Against expectations, theUnion Budgetdid not announce any fresh capital infusion for the public insurers. The performance of these public sector insurers will be reviewed in FY25 to plan any further capital infusion, he said. Last year’s performance of these public insurance companies has been good. United India Insurance (UIIC) has made a remarkable turnaround, reducing its losses from Rs 5,000 crore in FY23 to a profit of Rs 19 crore in FY24. NICL has significantly narrowed its losses from Rs 3,800 crore in FY23 to Rs 187 crore in FY24. Similarly, OICL has seen its losses decrease from Rs 2,800 crore in FY23 to Rs 800 crore in FY24. New India Assurance has continued to perform well, increasing its profits from Rs 1,000 crore in FY23 to Rs 1,100 crore in FY24. In addition to the shift in focus, the government is also addressing operational issues within these insurers. "A lot of employees retired, and there was a ban on hiring new staff. But now they are asked to recruit in a balanced way. We expect them to strengthen further," the financial services secretary said. | null | null | 2024-07-27 08:08 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/bank-of-maharashtra-may-meet-25-mps-norm-in-fy25-dfs-secy-12779834.html | Bank of Maharashtra may meet 25% MPS norm in FY25: DFS Secy | The government holds 86.46 percent stake in Bank of Maharashtra..Related stories. | The government may look at reducing its stake in the Bank of Maharashtra (BoM) in FY25 to comply with Minimum Public Shareholding (MPS) regulations, while the remaining four public sector banks will not be able to meet the norm in current fiscal, Department of Financial Services (DFS) Secretary Vivek Joshi said. The government holds 86.46 percent stake in Bank of Maharashtra. Apart from Bank of Maharasthra, the government's stake in Punjab & Sind Bank stands at 98.25 percent, followed by Indian Overseas Bank (IOB) with 96.38 percent, UCO Bank at 95.39 percent and Central Bank of India with 93.08 percent. “BoM can work towards meeting MPS, and we can aim to reduce the gap in other banks as well. However, it is unlikely that all banks will meet the MPS requirements in the current year as the gap in MPS among public sector banks (PSBs) is substantial, with figures as high as 97-98 percent for some,” Joshi toldMoneycontrolin an interview. The exemption to meet the minimum public shareholding for public sector undertakings, including public lenders, ends in August. “We have requested the Department of Economic Affairs (DEA) for a two-year extension to allow more time for compliance. Last year we achieved MPS in three banks, which is a significant accomplishment. Now, five banks remain to meet the targets,” the DFS Secretary noted. The government’s disinvestment plan hinges on having sufficient investor appetite to absorb the funds in the market. This potential move is part of a broader strategy to meet MPS requirements. SEBI mandates that the minimum public shareholding must be at least 25 percent for listed companies. This percentage ensures that a sufficient number of shares are available for trading on the stock exchanges, promoting liquidity and preventing excessive concentration of ownership. | null | null | 2024-07-27 06:59 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-has-high-tax-to-gdp-ratio-given-its-per-capita-income-revenue-secretary-12779656.html | India has high tax-to-GDP ratio given its per capita income: Revenue secretary | The World Bank notes that a tax-to-GDP ratio of over 15 percent is a key ingredient for economic growth..Related stories. | India may have a lower tax base, but its tax-to-GDP is much higher compared to its peers, Sanjay Malhotra, secretary, department of revenue, ministry of finance, said at a Confederation of Indian Industry session on July 26. ŌĆ£The tax-to-GDP, given the level of development, is not low. We are slightly above what our per capita income indicates,ŌĆØ the secretary noted. Malhotra further highlighted that the tax base would increase as more formalisation takes root. The World Bank notes that a tax-to-GDP ratio of over 15 percent is a key ingredient for economic growth. IndiaŌĆÖs general government tax-to-GDP ratio of 18 percent, is lower than ChinaŌĆÖs at 21 percent and USŌĆÖ 25 percent. ŌĆ£More people will find it difficult to stay out of tax base and tax net,ŌĆØ he pointed out. Listening to the concerns of the industry on capital gains, Malhotra pointed out that the government has simplified the process. ŌĆ£It is primarily a simplification exercise. We have given you one rate, instead of two the industry demanded. It is an exercise to remove the tax arbitrage between various asset classes and an attempt to reduce difference in taxation between capital gains and other forms of income,ŌĆØ he pointed out. The finance minister in the maidenBudgetof Modi 3.0 ┬Āhad increased capital gains tax to 12.5 percent from 10 percent earlier without indexation and done away with the system of indexation benefits. The government has retained the earlier threshold of considering 2001, which can be used to calculate fair market value of a property. For instance, if a property was purchased in 1996, the person can use the fair market value of 2001 or cost of acquisition as of 2001 can be considered. | null | null | 2024-07-26 18:21 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/core-inflation-decline-may-not-be-such-a-good-thing-economists-12779579.html | Core inflation decline may not be such a good thing: Economists | Services inflation has been easing.Related stories. | The finance minister in her Budget speech highlighted that core inflation in India has declined to 3.1 percent, but economists highlight that falling core may not be such a good thing for the economy. India’s services inflation declined 2.67 percent in June—its lowest level since 2011— widening the gap with goods inflation, according to a Moneycontrol analysis. The gap between goods and services inflation in June was the highest in eleven months, with goods inflation rising to 6.7 percent in June from 6.3 percent in the previous month. Experts indicate that falling services inflation may be a sign of weakening demand in the economy. “The decline in services inflation does indicate that there is a slack in the economy. Demand issues are bringing down services inflation,” said Paras Jasrai, senior analyst, India Ratings and Research. A Moneycontrol analysis of 299 items in the consumer price index shows that services like barber and beautician experienced lowest inflation in the first quarter of FY24 in the post-pandemic period. Barber and beautician service inflation was 4.1 percent in June compared with 6.4 percent during similar period in 2023. “Private consumption has grown merely 4 percent compounded annual growth rate in the last five years, much lower than the headline GDP growth, implying demand slack, which is feeding into core non-goods inflation as well,” said Madhavi Arora, chief economist, Emkay Global Financial Services. Core goods are also experiencing softer trends. "The goods inflation in the core-CPI basket have clearly seen softer trends and could continue as input costs ease and comfort to raise output prices is lower amid demand concerns," said Achala Jethmalani, economist, RBL Bank. Experts indicate that rising interest rates also have a role to play in easing prices. “RBI policy has been having its lagged impact on overall demand. Demand compression in different segments is getting reflected,” Jasrai added. They also note that the situation is unlikely to change if the Reserve Bank of India does not move on rates. “If monetary policy does not relax soon enough, now that it has managed non-food inflation, there will be a high risk of prolonged demand slowdown,” said Debopam Chaudhuri, chief economist, Piramal Group. “With rising climate volatility, innovative public policies are required to safeguard farm income while maintaining food inflation at reasonable levels,” Chaudhuri added. The Reserve Bank of India is likely to hold the policy rate at 6.5 percent for the fifth consecutive time at its meeting in August. | null | null | 2024-07-26 16:42 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/rupee-declines-2-paise-to-close-at-record-low-of-83-72-12779534.html | Rupee declines 2 paise to close at record low of 83.72 | The rupee has weakened to record low levels in four of the five trading sessions this week..Related stories. | Rupee slipped to its weakest level on July 26 after the currency dipped two paise to end at a record low of 83.72 against the US dollar. The currency was pressured by dollar demand from local oil companies, custodial banks and tepid risk sentiment. The currency had closed at 83.6975 in the previous session. The currency was down about 0.1 percent week-on-week, extending its losing streak to the fourth straight week. The slip came amid outflows from local equities, volatility in the Chinese yuan, and expectations that the Reserve Bank of India (RBI) may allow the currency to weaken slightly as it seeks to correct its overvaluation. Foreign investors have net sold about $1 billion worth of Indian equities since July 23, when the government decided to raise taxes on profits from equity investments and on equity derivative transactions. Given the recent a price action, a "buy on dips" bias is likely to persist on the dollar-rupee pair, a foreign exchange trader at a large private bank said. The trader expects the rupee to weaken to 83.80 over the next week. The rupee is expected to keep drifting lower steadily with the RBI likely to continue intervening to manage the pace of depreciation, traders said. Meanwhile, data released on July 25 showed that theUS economy grew more than expected in the April-June quarterbut inflation pressures subsided. "We continue to think that the Fed (Federal Reserve) will start its rate cut cycle from September, and this month’s Fed meeting could be important to watch to see if there are any hints," Michael Wan, senior currency analyst at MUFG Bank, said in a note. Investors now await the release of US personal consumption expenditure (PCE) price index data. Economists polled by Reuters forecast that the core PCE, was unchanged at 0.1 percent month-on-month in June. "As we stand, (US) inflation still needs to show more signs of moderation. If it doesn't, the markets may have to re-adjust their pricing of the pace of further rate cuts," analysts at Societe Generale said in a note. (With inputs from Reuters) | null | null | 2024-07-26 16:14 |
moneycontrol.com | https://www.moneycontrol.com/news/business/earnings/cholamandalam-investment-q1-net-profit-rises-30-to-rs-942-crore-stock-up-4-12779487.html | Cholamandalam Investment Q1 net profit rises 30% to Rs 942 crore; stock up 4% | The shares of the company ended July 26 higher by 3.55 percent at Rs 1,412.05 on NSE..Related stories. | Cholamandalam Investment and Finance Company on July 26 reported a 29.8 percent year-on-year jump in net profit at Rs 942.23 crore in the first quarter of FY25. Sequentially, the net profit was down from from Rs 1,058.1 crore in the March quarter, the company said in an exchange filing on July 26. The lender’s net interest income jumped 40 percent to Rs 2,573 crore, according to the stock filing. Its gross non-performing assets (NPAs) were at 3.62 percent in the June quarter against 3.54 percent in the March, while the net NPA came in at 2.37 percent against 2.32 percent in the March quarter. The lender also issued a secured and/or unsecured non-convertible debentures (NCDs) aggregating to Rs 48,000 crore in one or more tranches. Q1 key highlights -Disbursements jumped 22 percent to Rs 24,332 crore during the June quarter -Total assets under management were at Rs 1,68,832 crore, up 38 percent YoY -Vehicle finance disbursements were at Rs 12,766 crore against Rs 11,301 crore in Q1 FY24, registering a growth of 13 percent -Loan against property (LAP) business disbursed Rs 3,874 crore in Q1FY25, 45 percent more than in the year-ago period. -Home loan business disbursed Rs 1,778 crore, growing 22 percent from the previous year -Small and medium enterprises loan (SME) business disbursed Rs 2,160 crore, 6 percent more than Q1FY24 -Consumer and small enterprise loans (CSEL) disbursed Rs 3,486 crore in Q1FY25 against Rs 2,355 crore in Q1FY24 The stock ended 3.55 percent higher at Rs 1,412.05 on NSE. | null | null | 2024-07-26 16:07 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/moneycontrol-pro-panorama-rbi-fortifies-the-banking-system-but-at-a-cost-12779395.html | Moneycontrol Pro Panorama | RBI fortifies the banking system, but at a cost | What are the options for banks? Crank up the fight for deposits to keep up with credit growth?.Related stories. | Dear Reader, The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of. “All animals are equal, but some are more equal than others.” George Orwell’sÂAnimal Farm might not be behind what the Reserve Bank of India has proposed for banks, but it sure seems to be inspired from the above line. The RBI, in a draft circular on Thursday, has proposed that banks must set aside more reserves from April 1, 2025, towards liquidity coverage ratio against deposits that have a digital enabler attached. Simply put, the term deposit you opened through a few clicks online and your savings account that allows you to scan and pay through UPI, will need your bank to invest more in government securities. But the deposit your boomer parent opened by walking to the nearest branch and getting the physical certificate will be termed as less of a flight risk for the bank. So much for chest thumping over digital prowess. It is not that the RBI doesn’t want banks to become digital power houses and offer the best to their customers. In fact, its recent spree of penalties and business restrictions on big lenders to punish them for digital lapses shows otherwise. What the banking regulator simply wants is for banks to take a lesson from the SVB debacle in the US. Silicon Valley Bank went bust in record time after a run on it where most depositors withdrew money online within minutes. That is the power of digital banking services. It can bring unparalleled convenience to people and unprecedented pain to banks during tough times. While SVB has been termed as an isolated case because of its clientele, it holds significant lessons for bankers everywhere. India’s banks cannot go back to long time overruns in their core business if they must keep up with modern technology. Given that UPI has taken Indians leaps ahead, banks must safeguard themselves from situations where a run on them would be lethal. To that extent, the RBI’s proposed norms are sound. It recognizes the transformed nature of banking today and has updated regulation to cater to new challenges. After all, misinformation through social media is rampant and even a not-so-troubled bank can quickly be pushed to its demise through runs instigated by fake news. That does not mean banks have to like it or even their investors. Banking stocks came under pressureÂtoday because setting aside more reserves would mean having less money to lend. That would automatically tighten credit and leave banks with less to lend. ICRA analysts estimate that the revised LCR requirements will be Rs 4 trillion for the banking system, a huge number to be set aside. The high credit-to-deposit ratio that has been bothering the RBI for quite some time will now come down. Banks will not only have less money to lend, but the high quality liquid assets that they must keep under LCR are those that offer low returns such as government bonds. That means not just less credit offtake but also more money into low margin assets. Ergo, analysts are pencilling in further contraction in net interest margins for banks, at a time when NIMs are already shrinking. “Banks do carry buffers over LCR norms, but to maintain current levels they may need to increase deposit growth/trim loan growth, which could affect earnings by 4-10%, with a higher impact on PSU banks,” note analysts from Jefferies in their report. What are the options for banks? Crank up the fight for deposits to keep up with credit growth? Kotak Institutional Equities believes that would be unnecessary. “Banks can rebuild to a higher ratio over time rather than looking to comply immediately in 1QFY26 as they would need 3-4 percent points of retail deposits in this challenging deposit mobilization period,” they wrote. Chasing deposits that are already hard to come by through interest rate hikes would be a NIM hara-kiri. The intended outcome is to build a robust banking system that would be able to withstand deposit runs in a digital world. But the unintended consequences have to be taken into stride by the RBI. Those are the short-term big hit on banks’ earnings (which is really not a concern for the regulator) and the extra demand for government bonds (which is actually very good). We know how Animal farm ended. But in the RBI’s case, the outcome is bound to be much better by way of a more fortified banking system.Investing insights from our research team Weekly Tactical Pick: Should you check into this hotel stock? The Union Budget does not alter the investment case for gold Tech Mahindra Q1 FY25 – great start to a turnaround year Nestle India: Weak consumer sentiment weighs on earnings MC Pro Quick Take | Ashok Leyland Q1 FY25: Strong volume growth, positive outlook Cyient: Below-par show in Q1 FY25, weak FY25 outlook PG Electroplast – Running at full throttle What else are we reading? Spike in intraday cash market trading is a big worry, needs regulatory attention India has a small bank problem, and it needs to act soon How the budget has made gold investment attractive In its biggest acquisition, Mankind Pharma tries to replicate its past success in M&A Chart of the Day: Credit guarantees, forbearance have fuelled MSME credit The government has an AI conundrum at hand We need long-term budgeting to tackle climate change Bajaj Finance’s Q1 asset quality sours an otherwise optimistic growth outlook Personal Finance: How to invest when nothing is in your control Taylor Swift and the fallacy plaguing modern economics (republished from the FT)Capital gains rationalisation is fine but there’s a reason for the backlash In Budget 2024, catalysts introduced to augment growth for auto sector Judgement that will alter both federal and mineral tax landscape Capital gains tax structure changes will help IFSC Cutting through tax complexity in Budget 2024 Financial services perspective of India’s Budget and the path to Viksit Bharat Tech and Startups Q1 results: Top 5 Indian IT companies strike optimistic note as North America market recovers Markets MC Market Poll: Tax hikes will not have any major impact, say expertsTechnical Picks:ÂIndusInd Bank,ÂBSE,ÂIPCA Labs andÂGujarat Ambuja ExportsÂ(These are published every trading day before markets open and can be read on the app) Aparna IyerMoneycontrol Pro | null | null | 2024-07-26 15:49 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/paytm-gets-government-nod-for-investment-in-payments-arm-12779437.html | Paytm gets government nod for investment in payments arm; stock soars 10% | Paytm gets government nod for investment in payments arm.Related stories. | Paytm has got approval from the government for its 500 million rupees ($5.97 million) investment in a key subsidiary, a top finance ministry official told Reuters on Friday. The approval, which was stuck for months due to the company's link to China, will remove the main stumbling block to the unit, Paytm Payment Services, resuming normal business operations. Following the approval, shares ofOne97 Communications, the parent company of Paytm, surged 10 percent and was locked in the upper circuit at Rs 509.05 on the NSE. This also marks the first time since February 8 that shares of Paytm surpassed the Rs 500-level. Paytm Payment Services is one of the biggest remaining parts of the fintech firm's business, accounting for a quarter of consolidated revenue in the financial year ended March 2023. Follow our live blog for all the updates Earlier this month, Reuters reported that the government had given the investment the green light. Vivek Joshi, financial services secretary, said the company can approach India's central bank to seek a payment aggregator license which the bank will evaluate. Shares of the payments aggregator have been under pressure since February following the RBI's action against its Payments Bank. In January, the shares had reached levels as high as Rs 800, however, since then, the stock has been unable to bounceback to that mark. In the June quarter, Paytm's revenue dropped by 36 percent year-over-year to Rs 1,502 crore due to ongoing challenges from RBI restrictions. The company's net loss also widened sharply to Rs 840 crore in Q1 of FY25, the steepest loss since its listing. | null | null | 2024-07-26 15:20 |
moneycontrol.com | https://www.moneycontrol.com/news/business/earnings/equitas-small-finance-bank-q1-results-net-profit-plunges-87-to-rs-26-crore-12779350.html | Equitas Small Finance Bank Q1 results: Net profit plunges 87% to Rs 26 crore | Its gross non-performing assets (NPA) came in at 2.73 percent in the June quarter over 2.61 percent in the previous quarter, while the net NPA at 0.83 percent was better than 1.17 percent in the March quarter..Related stories. | Equitas Small Finance Bank’s net profit declined 86.5 percent to Rs 25.8 crore in the June quarter from the year-ago period, the lender said in an exchange filing on July 26. The net profit was also sharply lower from Rs 207.62 posted in the March quarter. At 14.29 pm, the stock was trading at Rs 87.25 on NSE, down 1.55 percent from the previous day. The lender's net interest income jumped 7.8 percent to Rs 801.5 crore. Its gross non-performing assets (NPA) came in at 2.73 percent against 2.61 percent in the previous quarter. Net NPA improved at 0.83 percent from 1.17 percent in the March quarter. The SFB's provisions were at Rs 304.6 crore in the quarter under review against Rs 106.6 crore in the March quarter. It was at Rs 60 crore in the year-ago period, the company statement said. Q1 highlights -Yield on gross advances improved by 13 basis points (bps) to 16.45 percent from the previous year. One basis point is one-hundredth of a percentage point -Gross advances grew at 18 percent YoY and 2 percent sequentially. Non-MF book grew 21 percent YoY, led by 35 percent growth in housing finance and 27 percent growth in SBL -Overall deposits registered a robust growth of 35 percent YoY & 4 percent QoQ - Retail term deposits grew 47 percent YoY to Rs 16,128 crore -CASA ratio was stable at 31 percent, NIM stood at 7.97 percent | null | null | 2024-07-26 14:40 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/mineral-royalty-revenue-jumps-32-for-states-during-fy17-to-fy22-12779285.html | Mineral royalty revenue jumps 32% for states during FY17 to FY22 | Mineral rich states got a mining boost.Related stories. | The Supreme Court, on July 26, granted states the power to levy taxes on mineral rights, contending that royalty is a contractual consideration, opening the doors for the states to earn more revenues from mining operations. AMoneycontrolanalysis of data from ministry of mines shows that the states have already witnessed a surge in revenues from mining, as royalty revenues expanded at a compounded annual growth rate of 32 percent between FY17 and FY22. The top five states, including Odisha, Chhattisgarh and Jharkhand, have earned every higher royalty revenue during this period. In the case of Odisha, for instance, royalty payments from mines jumped seven times between FY17 and FY22 to Rs 17,983 crore. Chhattisgarh’s royalty payments increased eight-fold during this period to Rs 8,839 crore. Mineral production earnings in Odisha were twice as much in two years after the pandemic than what was garnered in the six years between FY16 and FY21. More recent data shows that India’s mineral production has doubled to Rs 1.4 lakh crore in 2023-24 from five years ago. India has auctioned 385 mines since FY16, with Rajasthan, Odisha and Madhya Pradesh accounting for nearly half of the auctions. The judgment is likely to open more revenue streams for states, especially as they look to auction critical minerals, which are important for India’s foray into renewable energy and new economy areas like electric vehicles. The fourth tranche of critical mineral auction was launched in June, with 21 blocks expected to be put on auction. The government had announced royalty rates for some of the critical minerals in February. | null | null | 2024-07-26 13:35 |
moneycontrol.com | https://www.moneycontrol.com/news/business/dlf-plans-to-launch-rs-1-04-lakh-crore-worth-real-estate-projects-in-medium-term-12779263.html | DLF plans to launch Rs 1.04 lakh crore worth real estate projects in medium term | DLF plans to launch Rs 1.04 lakh crore worth real estate projects in medium term.Related stories. | Realty majorDLFplans to launch nearly 37 million square feet area for sale in the medium term across various cities with revenue potential of Rs 1.04 lakh crore as part of its strategy to encash strong demand for luxury homes. In its latest investor presentation for the April-June quarter, DLF informed about the "planned launches of Rs 1+ lakh crore (36 million square feet) of new products over the medium term". Giving the break-up, the company said a 12.8 million square feet area will be launched for sales this fiscal with a revenue potential of Rs 42,000 crore. In the subsequent years, DLF intends to launch a 24 million square feet area having a gross development value of Rs 62,500 crore. Out of the total Rs 1,04,500 crore worth projects that it intends to launch in medium term, only Rs 1,000 crore worth is planed from commercial properties and the remaining from the housing segment. These projects, largely residential, will be launched primarily in Delhi, Gurugram, Chandigarh Tri-city, Mumbai and Goa. DLF said in the presentation that it continues to scale up its product offerings and is developing margin-accretive products. The company is tapping multiple geographies but the core market remains Delhi NCR. It intends to enter the Mumbai market this fiscal. On strong housing demand, DLF's sales bookings jumped over three-fold to Rs 6,404 crore during the first quarter of this fiscal as against Rs 2,040 crore in the year-ago period. DLF has given guidance to achieve Rs 17,000 crore worth of sales bookings for the entire 2024-25 financial year as against nearly Rs 15,000 crore in the preceding year. The company's sales bookings in the April-June quarter were driven by its luxury project 'DLF Privana West' at Sector 76/77, Gurugram that saw sales of Rs 5,600 crore. In its super-luxury housing project 'The Camellias' at DLF 5, Gurugram, the company sold 4 units for Rs 251 crore. On Thursday, DLF reported a 23 per cent increase in its consolidated profit to Rs 645.61 crore in the first quarter of this fiscal from Rs 527 crore in the year-ago period. Total income rose to Rs 1,729.82 crore during the April-June period of this fiscal from Rs 1,521.71 crore in the corresponding period of the previous year. In a statement on Thursday, DLF said, "We believe that the residential segment is witnessing a structural upcycle and hence we continue to strengthen our new product pipeline." "We stay committed towards leveraging this positive momentum and have planned a strong launch pipeline of an additional 9 million square feet of new products during the fiscal, across various segments and geographies including Gurugram, Mumbai, Goa and Chandigarh Tri-city," the company added. The company said it continues to witness healthy sales momentum and strong growth in collections leading to further improvement in its net cash position. DLF is India's leading real estate developer and has more than seven decades of track record. It has developed more than 178 real estate projects and developed an area in excess of 349 million square feet. DLF Group has 220 million square feet of development potential across residential and commercial segments. The group has an annuity portfolio (office and retail real estate spaces) of over 44 million square feet. DLF is primarily engaged in the business of developing and selling residential properties (Development Business) and developing and leasing commercial and retail properties (Annuity Business). | null | null | 2024-07-26 13:06 |
moneycontrol.com | https://www.moneycontrol.com/news/business/diageo-indias-ceo-hina-nagarajan-summoned-by-delhi-police-in-liquor-payments-case-12779070.html | Diageo India issues clarification after reports say CEO Nagarajan summoned by Delhi Police | Hina Nagarajan, the CEO of United Spirits, has been asked to appear before police on July 26.Related stories. | Diageo India said on July 26 it received a notice to submit information about is operations, which can be done by a company representative and not specifically by the chief executive officer (CEO). The company was reacting to a report by news agency Reuters that Hina Nagarajan, the CEO ofÂUnited Spirits, which is majority owned by Diageo, has been asked to appear before Delhi Police on July 26 and provide documents related to company sales. "Such notices from regulatory authorities requesting information are usually addressed to the company head-this is a routine process. This notice requires information to be submitted by a representative for the company, pertaining to its operations between the period of 2017 and 2020, and not specifically from the Chief Executive Officer. We are cooperating with the authorities as we have always done," the company told exchanges. It believed other manufacturers might have gotten the notice as well, the company said. Diageo owns about 56 percent in United Spirits. "You are hereby directed to appear in person or through a company representative ... for joining (the) investigation," the Reuters report of July 25 quoted the notice as saying. Nagarajan did not respond to requests for comment, Reuters said. "We are in the process of sending in an authorised representative, as sought in the notice," a company spokesperson told the company. A liquor industry source with direct knowledge of the matter said the Delhi investigation concerned how companies like Diageo India supplied liquor to government agencies, which ran retail shops, and how those agencies sometimes offered early payments to suppliers who offered discounts, the report said. The police is investigating whether there was any wrongdoing in this process and has called the CEO as a witness, the source told Reuters. The police notice asked Nagarajan to explain "whether the discount given to the corporations (government agencies) was in accordance with excise policy", Reuters reported said. Euromonitor estimates Diageo, the world's biggest spirits maker which sells the Johnnie Walker scotch whisky, is also India's largest with a 19 percent market share by volume in the $35 billion market. The July 4 police notice also sought invoice details from United Spirits in respect of sales and payments received from Delhi city agencies during April 2017 and March 2020, and the name of the company employee who collected payments, it said. (With agency inputs) | null | null | 2024-07-26 12:56 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/in-budget-2024-catalysts-introduced-to-augment-growth-for-auto-sector-12779163.html | In Budget 2024, catalysts introduced to augment growth for auto sector | auto sector.Related stories. | The Budget 2024-25 introduced by the Hon’ble Finance Minister today presented a detailed roadmap for the Government’s pursuit of ‘Viksit Bharat’ and self-reliant India. The announcements prioritize domestic manufacturing, infrastructure development, job creation, and changes in customs duties. Notably, a significant allocation of Rs 11,11,111 crore (approximately 3.4% of GDP) for infrastructure underscores the government's commitment to fostering a green economy. TheIndian automotive industryis on the cusp of substantial growth, which is being fuelled by the government's recent policies that focus on encouraging local manufacturing and lessening regulatory constraints. With a substantialbudgetexpenditure of Rs 6,921 crore allocated to incentive schemes, the sector is at the heart of the government's 'Make-in-India' initiative. Both Original Equipment Manufacturers (OEMs) and component suppliers stand to benefit from these measures, which are expected to bolster India's manufacturing capabilities. Customs duty changes are central to these efforts in this budget proposals. While the upcoming sunset clause on battery imports for electric two and three-wheelers might initially seem counterproductive, it aligns with the broader goal of fostering a domestic battery ecosystem. The efforts of the Government on deep localization in the sector also get reinforced by the proposal to reduce/ exempt customs duty on battery components and parts, critical minerals for rare earth magnets, parts of PCBA, etc. Additionally, the government's support for the semiconductor industry, through custom duty exemptions on equipment and components, is crucial for theautomotive sector'slong-term competitiveness. To alleviate industry concerns, the government has introduced significant GST reforms, including the waiver of interest and penalties for litigation cases and an extended timeline for Input Tax Credit (ITC) claims for past. These measures will provide much-needed relief to the automotive industry, which has been grappling with complex GST-related issues. The industry has also welcomed the government's continued support for electric vehicles through the FAME and EMPS schemes. However, more clarity is needed on how the allocated funds will be utilized, particularly regarding potential scheme extensions. The government's focus on job creation, through employment-linked incentives and credit guarantees for MSMEs, further strengthens the overall ecosystem. This will help in creating a ripple effect on the economy and the automotive sector in specific. These concerted efforts demonstrate the government's commitment to transforming India into a global automotive manufacturing hub. The industry is optimistic about capitalizing on these opportunities to achieve self-reliance and compete effectively on the international stage. (With contributions from G. Sriram, Tax Professional, EY India.) Views are personal and do not represent the stand of this publication. | null | null | 2024-07-26 12:50 |
moneycontrol.com | https://www.moneycontrol.com/news/business/india-emerges-as-inspiring-lighthouse-of-growth-amid-global-turbulence-itc-cmd-puri-12779203.html | India emerges as 'inspiring lighthouse of growth' amid global turbulence: ITC CMD Puri | India emerges as 'inspiring lighthouse of growth' amid global turbulence: ITC CMD Puri.Related stories. | With a consistent GDP growth rate of over 7 per cent, India has emerged as an "inspiring lighthouse of growth" amid a turbulent world grappling with geopolitical tensions and climate emergencies, ITC Chairman and Managing Director Sanjiv Puri said on Friday. It has a "standout performance" as the world's fastest-growing major economy, which has not only evoked global respect but also points to its future promise, said Puri while addressing the annual general meeting of the company. He further said analysts project India's per capita GDP is likely to touch the "inflexion point" of USD 4,000 by 2030, fuelling larger domestic consumption and driving higher growth. "This is truly India’s moment in history. Mega opportunities are today emerging from the diversification in global supply chains, the all-pervasive digital revolution, and the urgent need for a green transition," he said. Experts predict that India is likely to contribute 18 per cent to the world's GDP growth in the next 5 years and could even touch 30 per cent between 2035 and 2040, he said. The synergy of India's large market, favourable demographics, rising disposable incomes, technological prowess and vibrant entrepreneurship will continue to power growth in the foreseeable future, he said. According to Puri, a sustained public expenditure in physical, digital, agri and rural infrastructure, combined with sharp execution, is fuelling a virtuous cycle of consumption, investment and employment. "The rise of aspirational India will also spur consumption-led growth," said Puri. Over the role of Indian Enterprise in country's growth, Puri said he deeply believes that companies rooted in India, as economic organs of society, can play a "vital role" in partnering with the nation in the promising journey ahead. Over the global economy, Puri said the global economy is passing through a storm of geopolitical tensions, climate emergencies, cost-of-living crises, food and nutrition security concerns, and insufficient livelihood opportunities. "This is also evident in the decline of global merchandise trade by about 1.2 per cent last year," he said. Amidst these adversities, rapid technological advancements, including AI are redefining the future. Puri further said India’s favourable demographics constitute one of its greatest strengths as more than a billion people, comprising nearly 70 per cent of the population, will be of working age by 2030. "Over the next decade, almost a quarter of the incremental global workforce will be from India," he said adding "This powerhouse of productive human capital is unquestionably a source of unique competitive advantage as well as a formidable driver of consumption." TheBudget 2024has also announced multi-dimensional programmes to boost skilling and employment, strengthen MSMEs as well as provide impetus to labour-intensive sectors. "The ONDC platform set up recently can also lend new wings to micro and small enterprises akin to the UPI’s remarkable impact on financial transactions," he said. The agri and rural sector, which engages nearly half of the country’s workforce, can contribute further to livelihood generation through larger value addition, digital acceleration and diversification of on-farm, off-farm and non-farm employment. "It is indeed encouraging that the recent Budget has sharply addressed several of these areas," said Puri. | null | null | 2024-07-26 12:32 |
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