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moneycontrol.com | https://www.moneycontrol.com/news/business/citigroup-sees-india-luring-100-billion-in-foreign-investment-12772399.html | Citigroup sees India luring $100 billion in foreign investment | Citigroup sees India luring $100 billion in foreign investment.Related stories. | Foreign investors will likely deploy as much as $100 billion in India this fiscal year, drawn to high-tech manufacturing, infrastructure and climate-change projects in the world’s most-populous country, according to a Citigroup Inc. banker. Companies working to help India meet its net-zero goals will be among the beneficiaries of the foreign capital flows, according to K Balasubramanian, head of corporate banking for Southeast Asia and the Indian subcontinent. “Climate transition is playing out in a big way, likely triggering a bout of foreign fund inflows,” Balasubramanian, known as Bala, said in an interview in Mumbai. India’s government aims to attract $110 billion a year in foreign direct investment over the next seven years as the South Asian nation draws investors looking to diversify away from China. That compares with an annual average of more than $70 billion over the last five years. Bala said capital is flowing into sustainable energy creation strategies like solar, hydrogen and ammonia. On the energy consumption side, electric vehicles are the “real big story,” he said. “Every formidable company is nurturing plans to enter the next generation iteration on electric mobility,” Bala said. Prime Minister Narendra Modi has cast himself as a climate champion, and India has made significant investments in clean energy, adding more than 100 gigawatts of capacity in the last 10 years. The country has pledged to install 500 GW of non-fossil fuel energy by the end of the decade, and aims to secure $1 trillion in investments in solar power to meet its 2070 net-zero pledge. India has a 181 billion rupees ($2.2 billion) incentive program to manufacture electric-vehicle batteries in the country. Reliance Industries Ltd., JSW Neo Energy Ltd., and Ola Electric Mobility Pvt. are among the companies selected to produce battery capacity and avail incentives under the program. Apart from climate transition, India’s forays into electronics and infrastructure-related manufacturing are gaining prominence with investors abroad, Bala said. “Capital will come to wherever there are pockets of opportunity in terms of production cost advantage,” Bala said. “Then skill and value addition will be the key drivers for such investments.” India is attracting new groups of investors, according to Bala. Middle-eastern sovereign wealth funds are big backers of energy creation projects, while US investors are drawn to technology and consumption-focused companies. European firms invest in high-end tech, and capital from North Asian countries is making its way to India, Bala said. “In Japan itself, 1,600 companies have identified plans of getting into India, as distributors or suppliers to large companies,” Bala said. The New York-based bank has been ramping up its relationships to become the “first port of call,” for foreign investment, Bala said. These include the US-India corridor, where it gets a majority of the business, he said. The bank is also strong in Germany, France and in the Nordic region, and is spending a lot of time in Taiwan, Bala said. | null | null | 2024-07-19 06:34 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/financial-assets-rose-23-during-pandemic-owing-to-asset-price-gains-rbi-bulletin-12772246.html | Financial assets rose 23% during pandemic owing to asset price gains: RBI Bulletin | Asset prices contributed to some gains in household savings.Related stories. | A quarter of increase in financial assets of households during the pandemic was due to rising asset prices, according to a paper published in the RBI’s July bulletin. “On a cumulative basis, the financial assets of households rose by Rs 123.2 lakh crore between the quarter-ended December 2019 and the quarter-ended March 2023; around 23 percent of this increase was due to asset price gains and the rest due to incremental financial savings,” the paper titled Estimating the Financial Wealth of Indian Households said. The authors also pointed to an increase in equity investments over the last decade. “Equity and investment funds of households increased more than 1.5 times from 2011-12 to 2022-23. Household debt to financial assets ratio has remained stable during the period,” the authors noted. The total financial assets of households had risen to Rs 363.8 lakh crore or 135 percent of GDP as of March 2023. RBI’s July bulletin, released on July 18, highlighted that revival in rural spending was helping demand and that the economic momentum had picked up. The central bank also noted that rising food inflation had halted the decline in inflation. Data released on July 12 showed that food inflation galloped to 9.4 percent in June from 8.7 percent in the previous month. Consumer inflation rose to 5.08 percent for the month from 12-month low of 4.75 percent in May. Another paper in the bulletin also talked about the increase in natural rate of interest to 1.4-1.8 percent in the last quarter of FY24 from 0.8-1.3 percent owing to a rise in potential growth rate to 7 percent. The natural rate is an indicator of where real interest rates are likely headed. | null | null | 2024-07-18 19:35 |
moneycontrol.com | https://www.moneycontrol.com/news/business/banks/bank-of-india-raises-rs-5000-crore-via-long-term-infrastructure-bonds-12772251.html | Bank of India raises Rs 5,000 crore via long-term infrastructure bonds | The bank said the base issue size was Rs 2,000 crore with a green shoe option of Rs 3,000 crore, the company statement said..Related stories. | Bank of Indiaraised Rs 5,000 crore at an interest of 7.54 percent per annum through long-term infrastructure bonds on July 18 via NSE electronic bidding platform, the lender said in an exchange filing. The bank said the base issue size was Rs 2,000 crore with a green shoe option of Rs 3,000 crore, the company statement said. The lender said it has received a total of 127 bids, totaling Rs 15,318 crore. Out of the total, there were 57 successful bidders amounting to Rs 5,000 crore. “The funds raised through long-term bonds will be used for funding long-term projects in infrastructure sub-sectors and affordable housing in accordance with RBI guidelines. The funds raised by the bank through this issue is not meant for financing any particular project,” the lender said. On July 18, the shares of the bank went up by 0.24 percent to Rs 123.33 on NSE. The lender’s board, in May, had approved capital raising of up to Rs 5,000 crore by issue of Basel III compliant additional tier 1 and tier 2 bonds of Rs 2,500 crore each. In the same month, the lender had reported a 7 percent jump in its net profit at Rs 1,439 crore in the fourth quarter of FY24. The gross non-performing asset (NPA) ratio of the bank in March quarter stood at 4.98 percent, as against 5.35 percent in a quarter ago period, and 7.31 percent in a year ago period. Similarly, net NPA ratio of the lender stood at 1.22 percent as on March 31, as against 1.41 percent as on December 31, 2023, and 1.66 percent as on March 31, 2023. | null | null | 2024-07-18 19:11 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/with-an-eye-on-state-elections-kisan-and-mahila-could-be-focus-for-budget-2024-25-12771512.html | MC Exclusive: With an eye on state elections, kisan and mahila could be focus for Budget 2024 | Budget could see a focus on Kisan and Mahila.Related stories. | The upcoming budget may see an enhanced focus on farmers and women, given the recent political context of the BJP losing its absolute majority in the general elections and upcoming assembly elections in a few states. Two people aware of the budget discussions toldÂMoneycontrolÂthat the annual payout to farmers under the PM Kisan Samman Nidhi could increase to Rs 12,000 . Currently, an income support of Rs 6,000 is given per year in three equal instalments to all land holding farmers. The government could take this up to Rs 12,000 a year. Further, instead of quarterly payouts, a cash transfer of Rs 1,000 could be made every month. The budget could also announce a scheme under which Rs 1 lakh would be transferred to women below the poverty line. The Pradhan Mantri Awas Yojana, a rural housing scheme, has been a success story for the government. The Budget could see an enhanced focus on the scheme. As of June 12, 2024, 2.94 crore houses have been sanctioned and 2.62 crore houses have been completed. Modi 3.0 will be presenting its first budget against a changed backdrop – the ruling BJP has come to power without an absolute majority, losing seats in traditional strongholds like Uttar Pradesh, Rajasthan, Maharashtra and Haryana besides Karnataka. Further, the BJP is facing state elections a few months from now. Haryana and Maharashtra go to polls in November; Jharkhand and Delhi go to polls in January and February early next year. Feedback from cadres This time around, the budget is likely to incorporate feedback coming from the party cadres of the need to reach out to the farmers, youth, and women. The kisan, yuva and mahila constituencies could thus be the major focal point ofBudget 2024-25. The people cited toldÂMoneycontrol that the government is concerned about the next set of state elections. Importantly, the recent results of Assembly bypolls in which the opposition INDIA bloc won 10 of the 13 seats, while the BJP won two. This has only perhaps reinforced the immediate need to connect with these three crucial constituencies. Women are a constituency that the Modi government is hoping to attract. A CSDS analysis of voting patterns shows that 37 percent of men and 36 percent of women voted for the BJP this time. During the 2019 general elections, BJP’s success was seen to be linked to its popular welfare schemes specifically targeted towards women such as free LPG. Recently, Shivraj Singh Chauhan's Laadli Bhena Scheme, which was introduced days before voting in the election in Madhya Pradesh (MP), was cited as one of the reasons for a spectacular win by the BJP in the state. The budget could well likely be a mix of socialism, populism, and prudence with a clear outreach to crucial constituents that are important for the BJP to win over. Building bridges with farmers The Modi government’s relationship with farmers has been somewhat tumultuous. The government's move to bring in three new farm laws in 2021 led to protests that lasted a year. While the government decided to drop the farm laws in early 2022, a section of farmers have sought legal guarantees for a minimum purchase price for all crops. Farmers, especially in the northern states,  have been complaining about falling incomes. A big chunk of India’s population, nearly 55 percent, depends on agriculture. The Modi government had promised to double farm incomes at the start of his tenure. With a new agriculture minister, Chauhan, who is widely seen as having scripted a turnaround in Madhya Pradesh for farmers, in charge, the expectation is that he  will be able to rebuild the broken bridges with the farmer community. | null | null | 2024-07-18 19:02 |
moneycontrol.com | https://www.moneycontrol.com/news/business/earnings/lt-tech-q1-net-profit-up-1-yoy-at-rs-314-crore-12772184.html | L&T Tech Q1 net profit up 1% YoY at Rs 314 crore | In the three-months period that ended on June 30, the IT services company won two deals worth $30 million, another two worth $15 million and three deals with TCV of $10 million, the company statement said..Related stories. | L&T Technology Serviceson July 18 posted a net profit of Rs 313.6 crore, marginally higher by 0.8 percent over Rs 311.1 crore reported in the year-ago period, the company said in an exchange filing. However, June quarter reading saw a decline of close to┬Ānine percent over Rs 340.9 crore posted in the March quarter, according to the filing. ŌĆ£We are making good progress with our ŌĆśGo Deeper to ScaleŌĆÖ strategy and the simplification of our organization structure into three main segments. In AI, we are accelerating our investments and innovation focus leading to a total of 61 patents being filed so far. We are starting to win AI-led deals on the back of our solutions in in Gen AI across asset health, software development and digital assistants,ŌĆØ said Amit Chadha, CEO & managing director, L&T Technology Services Limited. The companyŌĆÖs revenue from operations stood at Rs 2,461.9 crore in the reported quarter, a jump of┬Āseven percent compared to Rs 2,301.4 crore in the year-ago period, the statement said. The revenue in the June quarter declined three percent from Rs 2,537.5 crore reported in the March quarter. In the three-month period that ended on June 30, the IT services company won two deals worth $30 million, another two worth $15 million and three deals with TCV of $10 million, the company statement said. ŌĆ£With phase one of our reorganization and related investments in technology and leadership complete, we are reassured of our performance for the rest of the year and reaffirm our aspirations to reach $1.5 billion in annualized revenues,ŌĆØ said Chadha. On July 18, shares of the company ended 0.05 percent lower at Rs 4,865 on NSE. | null | null | 2024-07-18 17:33 |
moneycontrol.com | https://www.moneycontrol.com/news/business/earnings/tata-technologies-q1-results-net-profit-down-15-at-rs-162-03-crore-12772142.html | Tata Technologies Q1 results: Net profit down 15% at Rs 162.03 crore | The profit for the June 30 ended quarter was marginally higher than Rs 157.24 crore posted in the March quarter, according to the filing.. | Tata Technologieshas reported a net profit of Rs 162.03 crore for the June quarter of FY25, down 15.4 percent from the year-ago period. Sequentially, the profit was marginally higher than Rs 157.24 crore in the March quarter, the Tata group company said in an after-market filing on July 18. At Rs 1,268.97 crore the revenue was better than Rs 1,257.53 in the year-ago period but was down 2.46 percent over the March quarter. “The overall market conditions remain favourable as the manufacturing sector continues to future-proof itself through ongoing investments in alternative propulsion systems, software-defined products and services, and smart manufacturing,” chief executive officer and managing director Warren Harris said. “The VinFast transition is now largely behind us, and we fully expect the sequential revenue growth of our services business to accelerate from the current quarter." The confidence in full-year prospects is fuelled by the order book, continued positive momentum within anchor accounts, and tailwinds expected to continue to intersect with automotive, aerospace, and industrial heavy machinery, Harris said. Tata Technologiesclosed 0.54 percent lower at Rs 1,009.75 ahead of the earnings announcement. | null | null | 2024-07-18 16:46 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/why-are-kerala-andhra-pradesh-vying-for-karnataka-firms-12772107.html | Why are Kerala, Andhra Pradesh vying for Karnataka firms? | Higher output of Karnataka firms, better employment.Related stories. | Andhra Pradesh and Kerala were quick to roll out the red carpet as the government in neighbouring Karnataka faced backlash over a bill that proposes to reserve jobs for locals in the private sector. While the Siddaramaiah government on July 17 evening decided to put thebill on hold, aMoneycontrolanalysis shows that Andhra and Kerala stand on gain in terms of productivity if firms relocate from Karnataka. Analysis of annual survey of industries numbers for 2021-22 shows that the value addition per firm in Karnataka was double that of Kerala and Andhra Pradesh. While Karnataka firms had an average net value added of Rs 9.28 crore per annum, Andhra’s value added per factory was just Rs 3.81 crore per annum, while that of Kerala was even lower at Rs 2.97 crore. Output per firm in Karnataka at Rs 52.8 crore was nearly 70 percent higher than Andhra Pradesh and more than double that of Kerala in 2021-22. The gap between the two has widened following the coronavirus outbreak. Also read:Â'Andhra ready to welcome you': Nara Lokesh to Nasscom amid backlash over Karnataka quota decision Output per firm has expanded at a compounded annual growth rate of 15.9 percent between 2021-22 and 2019-20, compared with 15 percent in Andhra Pradesh. Kerala industries’ output has shrunk during this period. Before the pandemic Kerala and Andhra Pradesh were growing at over 8 percent, while Karnataka’s output per firm was 1.3 percent between 2014-15 and 2021-22. Firms in Karnataka also owned more fixed assets than their counterparts in Andhra Pradesh and Kerala, Moneycontrol analysis shows, with the gap widening after the pandemic. Employment gains A shift of firms will also translate to employment gains for the two states. Karnataka’s factories employed 75 people per firm in 2021-22 compared with 40 for both Andhra Pradesh and Kerala. Both states have a higher unemployment rate than Karnataka, according to periodic labour force data of 2022-23. Kerala’s unemployment rate at 7 percent was more than double that of Karnataka at 2.4 percent. On the other hand, Andhra Pradesh’s unemployment rate for people aged 15 and above was 4.1 percent. It would also translate into a richer population for the states. Salary and benefits for an average Karnataka person employed in factories was also higher at Rs 3.89 lakh per annum compared with Rs 3.12 lakh per annum in Andhra and Rs 3.06 lakh in Kerala. Unorganised service sector also at an advantage The relocation of unorganised service sector would also benefit the states. As Karnataka’s unorganised service firms had 25 percent higher gross value added per firm than Andhra and 32 percent higher than Kerala at Rs 3.29 lakh per annum. | null | null | 2024-07-18 16:08 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/federal-reserves-critics-on-inflation-should-now-champion-july-cut-12772066-12772066.html | Federal Reserve’s critics on inflation should now champion July cut | Among the Fed’s top leaders, the goal of forward-looking monetary policy is uncontroversial..Related stories. | Back in 2021, legions of critics lambasted the Federal Reserve for failing to take proactive and forward-looking steps against the emerging inflation threat. Curiously, many of them have gone silent on the risk that the Fed might get caught flatfooted again, this time by failing toÂcut interest rates soon enough in the face of weaker inflation and a cooling labor market. Lawrence Summers, the former US Treasury Secretary and a paid Bloomberg TV contributor, was perhaps the most notable critic of the “behind the curve” Fed a few years back. As recently as a few months ago, he was still warning against rate cuts and floating the idea that the central bank’s next move could be a hike. Summers isn’t an island unto himself, however, as about a third of economists surveyed by Bloomberg saw one or no cuts this year. Consider the cross-section of monetary policyÂrules, which generate fed funds rate prescriptions based on standard economic variables. Just as they showed that the Fed was behind the curve in 2021 and 2022, four of the five common policy rules — including the classic 1993 Taylor Rule — now suggest policy rates below the current 5.25%-5.5% range. The core personal consumption expenditures deflator — the Fed’s preferred gauge — puts year-over-year inflation at just about 2.6%, less than half of the peak rate of 5.6% in February 2022. While that’s still technically above the Fed’s 2% target, the current policy stance implies a lot of medicine for what’s become a relatively mild ailment. Among the Fed’s top leaders, the goal of forward-looking monetary policy is uncontroversial. The question, however, is how one can put forward-looking policy into practice while also remaining beholden to backward-looking data. Here’s how Chair Jerome Powell tried to explain this dance at an Economic Club of Washington event, in conversation with Bloomberg host and Carlyle Co-Chairman David Rubenstein (emphasis mine):Rubenstein:ÂThe Fed has set a target for inflation of 2%. Now, can you clarify? Does that mean that the inflation rate has to be at 2% before you’re ready to move, if you are ready to move? Or does it have to be within sight? And what does it mean to be within sight? Powell: So, when we change interest rates, that tightens financial conditions and that, in turn, affects economic outcomes — you know, growth, labor markets and ultimately inflation, but with lags that can be long and variable, as Milton Friedman famously said. And the implication of that is thatÂif you wait until inflation gets all the way down to 2%, you’ve probably waited too long. Because the tightening that you’re doing — the tightness that you have — is still having effects which will probably drive inflation below 2%.ÂSo we’ve been very clear that you wouldn’t wait for inflation to get all the way down to 2%.ÂOur test has been for the past quite some time that we wanted to have greater confidence that inflation was moving sustainably down toward our 2% target,Âand what increases that confidence is more good inflation data. And lately we have been getting some of that. In fairness, Powell has navigated the risks extremely well since mid-2022, and he deserves a lot of credit for putting the American economy in a position to achieve a rare “soft landing.” But he still has to stick it, and there are a number of problems with the “test” that he described. First, there’s room for debate about where underlying inflation actually sits today. The oft-sighted year-over-year figure, of course, is a function of base effects from 12 months earlier. On a three-month annualized basis, core PCE appears to already be below 2%, based on Bloomberg Economics’estimates for the yet-to-be released June data. Many of us have also argued that the entire housing component of inflation feels a lot like yesterday’s news. If you cut it out of the index, year-on-year core PCE inflation is under 2%. I’m not advocating that anyoneÂexclusively use those bespoke slices of the data, but you have to take them into consideration at key inflection points like this one. Second, there’s room for debate about what, exactly, would give the Fed “greater confidence that inflation was moving sustainably” toward target. I appreciate the spirit of this Powellism because many of us were head-faked by earlier improvements in the inflation data. But we’ve just had three great reports. And the government data has now hit the mark in about 8 of the past 12 months, lending less weight to the first-quarter numbers that weren’t so pristine. In a data series that’s inherently imperfect and noisy, that strikes me as enough. Personally, that’s why I’ve been in the July rate-cut camp since the immaculate consumer price index report on July 11. As I said at the time, I still have serious doubts that the Fed will listen, primarily because they’ve convinced themselves that they can, indeed, be simultaneously “forward looking” and “data dependent.” They also seem to believe that they have to spend weeks priming the markets for their first move through subtle smoke signals in the Fed’s policy statement and, probably, through a series of speeches — giving modern markets too little credit. Meanwhile, the unemployment rate has climbed in each of the past three months. To be sure, the unemployment drift owes itself largely to labour market entrants, re-entrants and relatively weak hiring, and layoffs remain very low. But history has shown that labour market trouble can snowball in a hurry. So why take the chance? A cut at the following meeting in September probably wouldn’t be the end of the world, but waiting introduces the risk that the window of opportunity could close. In a July 15 note titled “Why Wait?,” Goldman Sachs Group Inc Chief Economist Jan Hatzius also observed that inflation data — while encouraging now — is inherently volatile. If policymakers wait, he said they may find that the data won’t cooperate, and the rate reduction could be “awkward” to explain. Then what, November? Hatzius also noted that the September meeting would come right before the presidential election, and policymakers may want to avoid the perception of putting their thumb on the scale. Ultimately, they shouldn’t get caught waiting for a perfect opportunity when it might never arrive. Hatzius summed it up best: “If the case for a cut is clear, why wait another seven weeks before delivering it?” Credit: Bloomberg | null | null | 2024-07-18 15:35 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/moneycontrol-pro-panorama-karnatakas-risky-experiment-on-job-reservation-12771931.html | Moneycontrol Pro Panorama | Karnataka’s risky experiment on job reservation | If other states too followed Karnataka’s formula, we would be looking at nothing less than total chaos in the job market..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. First things first.In the last two days, I saw a lot of anger on social media after a controversial Bill by the Karnataka state government ruffled feathers when it proposed mandatory reservation of up to 70 percent for locals in private jobs. Why would the state do such a thing to risk Bengaluru’s image as an emerging global tech-startup hub and deter fresh investments? Unsurprisingly,Âindustry leaders and senior ministers  were up in arms against the proposal from the word go. And, as expected, a day later the state governmentÂput the proposal on hold. Frankly, implementation of such a Bill would have been disastrous. One, the status of Bengaluru as a global tech and startup hub would have taken a hit if companies were forced to scan domicile certificates, rather than merit records.Secondly, this would have had a cascading impact on the local economy.(God save those Bengaluru retirees relying on rental income for a living when ‘outsiders’ start vacating flats!). That’s not all. If other states too followed Karnataka’s formula, we would be looking at nothing less than total chaos in the job market. Overall, Karnataka quota-for-locals is a hare-brained idea. But I totally get why the state wanted to bring local reservations in the first place—a major job crisis is in the making. Lack of opportunities for newcomers and influx into the job market post mega layoffs are adding to the woes. Just yesterday, I readÂa report  about a stampede-like situation when more than 25,000 applicants turned up for 2,600 vacancies walked in for an interview at Air India Airport Services Ltd recruitment drive for airport loaders. This isn’t an isolated incident.According to the India Employment Report 2024 published by the International Labour Organisation (ILO) and the Institute of Human Development (IHD),Ânearly 83% of the jobless population under the age of 34Â. In this context, it’s quite logical that local governments want to entice local vote banks, offering job reservations. But come on! You can’t throw the baby out with the bathwater. Moving on, the UnionBudget 2024-2025 is scheduled next Tuesday. The general consensus is that the government will stick to the path of fiscal consolidation and use the Rs 2 trillion RBI dividend to cushion its expenditure plans, keeping the fiscal slippage under check. Investors are hoping for a direct consumption push and tax cuts. But, if any hike in capital gains tax happens, it could also act as a big markets dampener. On the other hand, if the government chooses to give the big Budget push to affordable housing, asÂmy colleague Aparna Iyer writes in this piece, it will augur well for a rural economic revival and help create more jobs. The probability of a big infra push in this Budget is a fair expectation as my colleagues Jitendra Kumar Gupta and Bharat GiananiÂwrote in this piece . A bunch of construction-related stocks may draw investor attention. In India, the onus to fund long-term infra projects remain a burden of PSBs—a key reasons why the government won’t privatise these banks. Ideally, they should;Âas I wrote a few days ago. Tailpiece Before signing off, tomorrow (July 19) marks the 55th anniversary of bank nationalisation. It was on this day back in 1969, Indira Gandhi nationalised 14 banks. Along with this, the next day’s Times of India front page carried another interesting news item—Apollo entering the Lunar orbit preparing for the first-ever human landing on the moon! Investing insights from our research team What can Union Budget 2024 do to sustain the dream run in infrastructure sector? Asian Paints Q1 – Losing its glossy shine? LTI Mindtree Q1 FY25 – strong quarter, encouraging outlook Himadri Speciality: Play on new energy transition Bajaj Auto Q1 FY25: yet another quarter of strong performanceWhat else are we reading? MC Inside Edge: IT high on mutual fund radar, time for a cautious stance on CPSEs, New Asset Class and the class divide Budget Snapshot | Will IBC reforms get a push from FM Sitharaman? Union Budget 2024: Rural India needs policy support to become resilient What Asian Paints' results say about its tryst with competition How Tata Power’s improved balance sheet is fuelling its capex SEBI fills the vacuum by creating a much-needed asset class Will the Russia factor mar India’s acquisition of key US military technologies? Investors grapple with the Trump trade (republished from the FT) Chip sector is caught in the battle of AI versus geopolitics (republished from the FT) Karnataka's Job Reservation Scheme: A recipe for Balkanization? India’s digital payments system needs simpler KYC process to reach newer heights India Budget 2024: Shorter budget cycle can make the exercise more efficient Markets Should traders be worried about the securities transaction tax in the coming Budget? Tech and Startups Stakeholders seek balance in Digital Competition Bill; overregulation concerns discussed at consultation meetTechnical Picks:ÂReliance Industries,ÂGodrej Properties,ÂTata ConsumerandÂDLFÂ(These are published every trading day before markets open and can be read on the app) Dinesh UnnikrishnanMoneycontrol Pro  | null | null | 2024-07-18 15:10 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-targets-110-billion-fdi-a-year-to-help-boost-economy-12771920.html | India targets $110 billion FDI a year to help boost economy | India targets $110 billion FDI a year to help boost economy. | India is aiming to boost annual foreign direct investment by more than 50% to help lift economic growth, according to a top official at the government’s investment promotion agency. “For the next seven years, our goal is to draw $110 billion per year which amounts roughly $1 trillion plus over the next 10 years,” Nivruti Rai, managing director of Invest India, said in an interview with Bloomberg TV’s Paul Allen on Thursday. “We have to work hard toward growing at a rate higher than 10%.” India’s annual average FDI in the seven years through March 2023 amounted to $71 billion, according to figures from the investment agency, which is a joint venture between the Ministry of Commerce and private business chambers. Official data from the government show a decline in FDI into India since 2022, even though the country is positioning itself as an alternative manufacturing hub to China, with companies like Apple Inc. setting up factories in the country in recent years. Invest India has highlighted eight priority areas for investment: electronics manufacturing, automobiles, infrastructure, green energy, food processing, textiles, pharmaceuticals and foreign institutional investment. Rai believes these sectors will help India achieve economic growth of more than 10%. Commenting on recent news that Tesla Inc.’s investment in India has cooled, Rai said she was “not concerned” and that the trend is still for higher investment. | null | null | 2024-07-18 13:50 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/malaysia-requests-india-to-ease-export-curbs-on-some-farm-goods-12771919.html | Malaysia requests India to ease export curbs on some farm goods | Malaysia requests India to ease export curbs on some farm goods. | Malaysia has requested India to ease export curbs on some farm goods like rice and sugar, Malaysia's minister for plantation and commodities said on Thursday. India's abrupt export curbs on farm goods are bad for Malaysia, Johari Bin Abdul Ghani said on the sidelines of an industry conference in New Delhi. | null | null | 2024-07-18 13:46 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/fiscal-deficit-at-5-of-gdp-for-fy25-nominal-growth-at-11-mc-economists-poll-12771730.html | Fiscal deficit at 5% of GDP for FY25, nominal growth at 11%: MC Economists Poll | Fiscal deficit to be lower say economists.Related stories. | The government is likely to record a lower fiscal deficit and a higher growth than what was estimated in the Interim Budget, as it retains its focus on fiscal prudence, economists said in a poll conducted byMoneycontrol. The median forecast of 16 economists pegged the fiscal deficit at 5 percent of the GDP, 10 basis points lower than the 5.1 percent target set in the InterimBudget. None of the economists polled byMoneycontrolexpects a slippage on the fiscal front. On the other hand, the economists noted that the output is likely to get a boost with the government projecting an 11 percent nominal growth, compared with 10.5 percent projected in the Interim Budget. IDFC First Bank and ANZ pegged the growth at 11.5 percent, higher than other forecasts in the poll. India saw a spate of forecast revisions on the growth front, following a better-than-expected 8.2 percent growth in FY25 and hopes of recovery in private investment and consumption. The IMF on July 16 revised its FY25 growth forecast for real GDP to 7 percent from 6.8 percent projected in April. Capital spending is expected to remain unchanged from the interim budget at Rs 11.11 lakh crore. The forecasts ranged from Rs 11 lakh crore to Rs 12 lakh crore. Push for rural The economists were unanimous in predicting that the budget will provide a push for the rural economy, muted consumption and jobless growth were the most cited concerns for the economy. Among the schemes that could push growth, the economists cited the Pradhan Mantri Awas Yojana as a primary driver. Sujan Hajra, chief economist, Anand Rathi Shares and Stock Brokers, cited production-linked incentive schemes and PMAY as schemes that could have a major impact. Rajani Sinha, chief economist at CareEdge, was upbeat on Skill India and PLI as major impact initiators, while Aditi Nayar, chief economist at Icra, said that the scheme for special assistance to states for capital expenditure could have a major impact. Over two-thirds of the economists did cite increased rural allocations, PMAY as one of the three social interventions expected in the budget, with 64 percent batting for rural development or increased rural allocation and 50 percent citing PMAY. Moreover, 90 percent noted that there was a case for expansion for rural employment scheme, the Mahatma Gandhi Rural Employment Guarantee Scheme, Krishi Kalyan and Ayushman Bharat programme. A higher nominal growth and more-than-expected dividend from the Reserve Bank of India to the tune of Rs 1.3 lakh crore is expected to provide space for the government to expand coverage of schemes. Shift in focus The focus is also likely to shift away from 2047, as only 60 percent of the economists were sure that the government will lay a roadmap for 2047 in the upcoming budget. “Provisions for adequate capital to support National Infrastructure Pipeline and PM Gatishakti programmes should be the primary priority area for Vision 2047,” said Debopam Chaudhuri of Piramal Enterprises Ltd. | null | null | 2024-07-18 13:41 |
moneycontrol.com | https://www.moneycontrol.com/news/business/government-grants-three-month-extension-to-r-p-goyal-as-nhpc-cmd-12771907.html | Government grants three-month extension to R P Goyal as NHPC CMD | Government grants three-month extension to R P Goyal as NHPC CMD. | The government has decided to extend Rajendra Prasad Goyal's tenure as NHPC CMD by another three months, starting from June 1, 2024. This extension, announced via a regulatory filing by NHPC, maintains Goyal's current role as Director of Finance at the organization. Goyal is Director of Finance at NHPC. He has been holding the additional charge of CMD since March 1, 2024. He initially assumed the additional responsibilities of CMD on March 1, 2024, following the retirement of Abhay Kumar Singh on August 31, 2022. The Ministry of Power's order on July 18, 2024, grants this extension in anticipation of formal approval from the Appointments Committee of the Cabinet (ACC). This arrangement continues until a permanent CMD is appointed or until further notice, whichever occurs first. (With PTI inputs) | null | null | 2024-07-18 13:41 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-plans-to-ease-rice-export-curbs-as-stocks-surge-to-record-12771895.html | India plans to ease rice export curbs as stocks surge to record | India plans to ease rice export curbs as stocks surge to record.Related stories. | India is likely to cut the floor price for basmati rice exports and replace the 20% export tax on parboiled rice with a fixed duty on overseas shipments, government sources said, as rice inventories in the country jumped a record high. The world's biggest rice exporter imposed various curbs on exports in 2023 and continued them in 2024 in an effort to keep local prices in check ahead of the general elections held in April-May. New Delhi is expected to lower the basmati rice's minimum export price (MEP) to $800-$850 a metric ton, down from $950 a ton, to boost shipments, said the sources, who didn't wish to be identified as they are not authorised to talk to media. Lowering the MEP would help India retain its market share against Pakistan, which exported a record amount of rice this year due to New Delhi's export curbs. India and Pakistan are the leading exporters of basmati rice. New Delhi exports more than 4 million metric tons of basmati - the premium long-grain variety famed for its aroma - to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States. New Delhi is also expected to drop the 20% export tax on parboiled rice and introduce a minimum export tax to stop under-invoicing of shipments, the sources said. The government was examining possibilities of easing rice export curb, including resuming white rice exports, Reuters reported last month. Ă‚Â Ă‚Â Worried over expectations of lower output due to the El Nino weather pattern, India banned overseas shipments of non-basmati white rice varieties in July 2023 and imposed curbs on other grades. "With rice supplies significantly exceeding local demand, it's crucial to reduce stockpiles to prevent spoilage. The most effective solution is to lift export restrictions," said B.V. Krishna Rao, president of the Rice Exporters Association (REA). The country's rice stocks at state warehouses have jumped to 48.51 million metric tons as of July 1, the highest ever for the month and nearly 19% more than last year, according to the Food Corporation of India. New Delhi would also review the export ban on non-basmati white rice after assessing the progress of rice planting, the sources said. Farmers have so far planted 11.6 million hectares with rice paddy during the current planting, up 20.7% on the same period last year. | null | null | 2024-07-18 13:28 |
moneycontrol.com | https://www.moneycontrol.com/news/economy/policy/karnataka-govt-will-provide-industry-ready-skills-for-locals-no-need-for-businesses-to-panic-says-it-minister-priyank-kharge-12771545.html | Karnataka govt will provide industry-ready skills for locals, no need for businesses to panic: IT minister Priyank Kharge | Related stories. | Karnataka's IT-BT Minister Priyanka Kharge assured businesses on July 18 that the state government is focused on providing industry-ready skills to locals, aiming to ease tensions amid debates over a job reservation bill. The state government was forced to put on hold the bill proposing job reservations for locals in the private sector on July 17 following industry backlash. Also, read:ÂAfter backlash, Karnataka puts job quota-for-locals bill on hold Speaking toMoneycontrol at the Vidhana Soudha on July 18, Kharge said: "The draft bill prepared by the labour department still has to go through inter-ministerial consultation, legal review, and stand the test of law." "The state government's vision is to ensure that we provide more job opportunities for locals and equip them with the best industry-ready skill sets so they are not only employed locally but also globally," said Kharge. The government is also under pressure as neighbouring Andhra Pradesh and Kerala are wooing investors amid the controversy. Also read:'Andhra ready to welcome you': Nara Lokesh to Nasscom amid backlash over Karnataka quota decision On TDP leader and minister Nara Lokesh's letter to the National Association of Software and Service Companies (Nasscom) inviting enterprises to Andhra Pradesh, Kharge said: "Andhra Pradesh first proposed a bill giving reservations for locals, which was later stayed by the high court. I would advise them to address what has happened there and then come back to us." Nasscom had said the bill would force businesses to relocate. Other industry bodies, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) and the Confederation of Indian Industry (CII), also slammed the bill. Also, read:ÂNasscom wants Karnataka to scrap bill reserving jobs for locals in private sector Kharge said, "I've spoken to the NASSCOM and assured them there is nothing to worry about. Karnataka has always remained a progressive state, and we will continue to be progressive. We will collaborate with them like never before to ensure that more investments come to Karnataka and more jobs are created." Responding to a query about whether it will have an impact on the state's Global Capability Centres (GCC) policy, Kharge said, "Absolutely nothing. The bill has not been implemented yet, so industries should not worry as nothing will happen without their consultation." Also, read:ÂKarnataka set to be the first state to come up with GCC policy by August Sources said information technology and biotechnology (IT & BT) and industries and commerce departments were not consulted on the Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, which was drafted by the labour department. Kharge and Industries minister MB Patil were reportedly unhappy as Labour Minister Santosh Lad pushed these two bills without taking them into confidence, sources said. Lad said, "There is no dearth of talent in Karnataka. We are open to discussions. If adequate skills are not available in the state, industries can outsource from other states". Also, read:Karnataka job quota-for-locals bill: IT-BT and Commerce and Industries departments kept in the dark Draft bill The bill, cleared by the cabinet on July 15, calls for 50 percent of management jobs and 70 percent of non-management roles to be reserved for locals (Kannadigas). The cabinet also cleared another proposal for a 100 percent quota for Kannadigas in Group C and Group D jobs in the private sector. The opposition BJP has accused the Congress-led government of trying to divert attention from alleged scams.Â"The @INCKarnataka Govt's ploy to bring up the issue of reservation for Kannadigas in private sector jobs is nothing but sinister politics to divert people's attention from its series of scams and failures," leader of the opposition in the Karnataka assembly R Ashok posted on X. Meanwhile, Health Minister Dinesh Gundu Rao, Revenue Minister Krishna Byre Gowda, IT-BT and Rural Development Minister Priyank Kharge, and Labour Minister Santosh Lad addressed a joint press conference at the Vidhana Soudha on July 18, a day after the government decided to hold the draft bill. However, they refused to comment on the draft bill. They alleged that the Enforcement Directorate (ED) is functioning as an extended political wing of the party and is targeting only parties that oppose the ideology of BJP and RSS. ED had arrested B Nagendra, former ST welfare minister on July 12 under the provisions of the Prevention of Money Laundering Act, 2002, in connection with the Karnataka Maharishi Valmiki ST Development Corporation Limited case. | null | null | 2024-07-18 13:12 |
moneycontrol.com | https://www.moneycontrol.com/news/business/tata-power-renewable-energy-nhpc-renewable-join-hands-for-installation-of-rooftop-solar-projects-12771853.html | Tata Power Renewable Energy, NHPC Renewable join hands for installation of rooftop solar projects | Tata Power Renewable Energy, NHPC Renewable join hands for installation of rooftop solar projects. | Tata Power Renewable Energy Ltd (TPREL) has joined hands with state-owned NHPC Renewable Energy Ltd (NHPC-REL) for installation of rooftop solar projects on government buildings of central ministries, states, and union territories. "This collaboration represents a major step forward in our shared vision of a sustainable and green energy future. By leveraging our combined strengths, we are confident in achieving our goal of 100 per cent solarisation by 2025," Nanda said. A Memorandum of Understanding (MOU) in this regard was signed on July 17, 2024 between Deepesh Nanda, CEO & MD of TPREL, and S P Rathour, CEO of NHPC-REL, TPREL said in a statement. "This initiative will not only help us meet our solarisation targets but also contribute significantly to reducing the carbon footprint of government buildings," NHPC CMD R P Goyal said. An arm of Tata Power, TPREL is a developer of renewable energy projects including solar, wind, hybrid, round-the-clock (RTC), peak, floating solar, and storage systems including battery storage. It owns, operates, and maintains these projects. | null | null | 2024-07-18 12:58 |
moneycontrol.com | https://www.moneycontrol.com/news/business/wipro-holdings-uk-transfers-entire-stake-in-wipro-financial-outsourcing-to-wipro-it-services-uk-12771799.html | Wipro Holdings UK transfers entire stake in Wipro Financial Outsourcing to Wipro IT Services UK | Wipro Holdings UK transfers entire stake in Wipro Financial Outsourcing to Wipro IT Services UK. | Wipro Holdings (UK) has transferred its entire shareholding in Wipro Financial Outsourcing Services Ltd to Wipro IT Services UK Societas, as part of efforts to rationalise and simplify the overall group structure, according to a regulatory filing. With this, Wipro IT Services UK Societas will hold 100 per cent stake in Wipro Financial Outsourcing Services. "... it is informed that Wipro Holdings (UK) Limited (wholly-owned subsidiary) has transferred its entire shareholding in Wipro Financial Outsourcing Services Limited (step-down subsidiary) to Wipro IT Services UK Societas (wholly-owned subsidiary), effective July 17, 2024," the tech giant said in a BSE filing. The transaction has been undertaken with the intention to rationalise and simplify the overall group structure. | null | null | 2024-07-18 12:22 |
moneycontrol.com | https://www.moneycontrol.com/news/business/air-india-rolls-out-vrs-for-non-flying-staff-ahead-of-vistara-merger-12771574.html | Air India rolls out VRS for non-flying staff ahead of Vistara merger | Air India rolls out VRS for non-flying staff ahead of Vistara merger.Related stories. | Air India has rolled out a voluntary retirement scheme (VRS) along with a voluntary separation scheme for its non-flying permanent staff ahead of the merger of Vistara with it, according to sources. The VRS scheme is open to employees who have completed five years of service with the company while the voluntary separation scheme (VSS) has been offered to employees with less than five years of service at the airline, they said. Air India confirmed the developments without sharing the specific details of the twin schemes that the airline rolled out on Wednesday giving the aspirants a one-month window to apply for VRS/VSS. This is the third time Air India has come out with a voluntary retirement scheme for its permanent employees since its privatisation two-and-a-half years ago. Tata Group took over the reins of Air India in January 2022. Earlier this month, sources in the know had told PTI that the merger is expected to impact around 600 employees from the two airlines. Tata Group-owned- loss-making full-service carriers -- Air India and Vistara -- together have more than 23,000 employees. Similar schemes are expected to be announced by Vistara as well soon as after completion of the fitment exercise and assigning of roles some redundancies are bound to creep in, said a source, adding that Air India is trying to accommodate some of the redundant employees with the Air India group or within the Tata Group companies as well. Vistara is a joint venture between Singapore Airlines and Tata Group. Once the merger is complete, Singapore Airlines will have a 25.1 per cent stake in Air India. The fitment exercise -- which involves the evaluation of the roles and responsibilities of staff of both airlines -- in the run-up to the merger has been going on for the past few months. The exercise takes into account an individual's prior experience, performance and other factors. As part of consolidating its airline business, Tata Group is also merging Air India Express and AIX Connect (formerly AirAsia India). | null | null | 2024-07-18 08:36 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/indias-digital-payments-system-needs-simpler-kyc-process-to-reach-newer-heights-12771464.html | India’s digital payments system needs simpler KYC process to reach newer heights | Digital payments in India are projected to double by 2030..Related stories. | India's digitalization journey has become a notable success, with the Unified Payments Interface (UPI) standing out globally as a model case study. The rise of digital payments in India, from $300 billion in 2018 to $3.6 trillion in 2024, with projections to double by 2030, demonstrates a significant transformation. Robust demographic expansion, improved economic conditions, widespread internet access, and strong government support for digital infrastructure have fuelled this growth in digital payments across the country. Along with UPI, other digital payment instruments such as cards and digital wallets have also gained traction, accounting for around 10% of current digital transaction values. This progress aligns with the Reserve Bank of India's goal to widely expand digital payments. India has established itself as a global leader in the digital payment sector, accounting for a significant percentage of worldwide transaction volumes. UPI's acceptance in several countries, with plans to expand further, underscores its international success. The decline in cash-based transactions to less than 60% highlights the widespread adoption of digital payments across India. UPI’s interoperability, ease of use, and real-time settlement have made it a preferred choice for a wide range of transactions, from peer-to-peer transfers to merchant payments. UPI transactions have experienced remarkable growth, surpassing 10 billion monthly transactions. Additionally, with countries like Singapore, the UAE, Mauritius, Oman, and Indonesia accepting UPI payments there has been a significant increase in cross-border transactions using the UPI method of payment. Transcending Demographic Categories Digital payments are now preferred across demographics, significantly changing consumer behaviours for both online and offline transactions. As of 2024, UPI also boasts over 260 million users, and this number is expected to grow even further as smart devices are becoming increasingly popular. According to a jointly produced report by AT Kearney and Amazon Pay, 90% of consumers opt for digital methods for online purchases, while 50% prefer digital payments for offline transactions as well. Digital payments are especially popular for discretionary spending such as electronics, clothing, and footwear, indicating a notable shift in purchasing behaviour. Millennials are at the forefront of adopting all types of digital payment instruments. The primary reasons for this widespread adoption are the convenience, speed, and efficiency of digital transactions. Additionally, boomers have significantly embraced digital payments, with higher usage of cards and wallets. Adoption rates among genders are roughly equal, with both men and women using digital payments in 72% of their transactions. Digital payment integration has been extensive in urban areas, with smaller towns reporting a 65% adoption rate and larger cities around 75%. Emerging technologies like co-branded credit cards and Buy Now, Pay Later (BNPL) schemes are rapidly gaining popularity, showing significant consumer awareness and adoption. Merchants across various sectors, from street vendors to large retail establishments, have also adopted digital payments, which constitute approximately 69% of their transaction volumes. This adoption is driven by need to mitigate challenges like financial fraud and handling cash. KYC Processes Have Scope for Improvement The future growth of India's digital payments ecosystem will depend on increasing penetration in underserved segments and boosting transaction values through digital means. A collaborative effort among all stakeholders, including payment providers, governmental agencies, and service players, is essential for sustained growth. An area for improvement that will further drive adoption involves simplifying Know Your Customer (KYC) processes, which are currently seen as cumbersome due to extensive documentation and verification requirements. Though Aadhaar-based KYC exists, streamlining it further through advanced technologies for identity verification, such as biometrics and artificial intelligence, would securely expedite identity confirmation with minimal hassle for users. Additionally, adjusting KYC requirements to match the risk levels of different transaction types could enhance the user experience without compromising security. Simplifying KYC would improve the customer and merchant experiences and broaden access, encouraging more users to adopt digital payments. Supportive Regulatory Environment As India progresses towards a digital-first economy, building trust and ensuring convenience will be crucial. By addressing the needs of both consumers and merchants and fostering a supportive regulatory environment, India is poised to maintain its leadership in the digital payment sector, ensuring continuous growth and enhancing economic inclusivity. The government's focus on creating a conducive regulatory environment has fostered innovation and growth in the digital payments sector. The Reserve Bank of India (RBI) has played a pivotal role in developing guidelines and frameworks to ensure the security and reliability of digital transactions. Measures such as two-factor authentication, tokenization, and the Payments Infrastructure Development Fund (PIDF) have strengthened the ecosystem. Digital payments' impact extends beyond the financial sector, with significant implications for economic growth and social development. Increased use of digital transactions has led to greater financial transparency and improve targeting of government subsidies and welfare schemes. Additionally, digital payments have opened new avenues for financial inclusion, particularly for underserved segments such as rural populations and small businesses, where credit and insurance products can be designed based on history of UPI transactions. Privacy Concerns Need to be Addressed As India's digital payments ecosystem evolves and we move into a cashless economy, challenges remain. The collection and handling of vast amounts of personal data by payment providers raise concerns about data privacy. As concerns about data privacy increase, the risk of cyberattacks, fraud, and hacking also increases. Digital payment providers need to ensure that cybersecurity measures are mandated to protect user data and maintain consumer trust in the digital payment ecosystem. The government and industry stakeholders must work together to enhance system resilience, educate users, and promote responsible innovation. While bigger cities in the country have relatively better digital infrastructure, rural and remote areas often face issues with internet connectivity and access to digital payment services. The government should ensure that it takes measures to enhance digital infrastructure across the country to make sure there is uniform growth. Despite these challenges, the future of digital payments in India is promising. Through collaborative efforts among the government, industry stakeholders, and users, India can continue to advance its digital payments ecosystem and achieve greater financial inclusion and economic growth. As India continues to lead the global digital payments revolution, it sets an example for other nations aspiring to create inclusive, efficient, and secure financial systems. | null | null | 2024-07-18 08:15 |
moneycontrol.com | https://www.moneycontrol.com/news/business/dlf-to-expand-housing-commercial-property-business-entering-mumbai-goa-chairman-rajiv-singh-12771513.html | DLF to expand housing, commercial property business; entering Mumbai, Goa: Chairman Rajiv Singh | DLF to expand housing, commercial property business; entering Mumbai, Goa: Chairman Rajiv Singh.Related stories. | Realty majorDLFwill focus on expanding its business to develop residential and commercial projects and is entering new markets Mumbai and Goa to tap into growth opportunities, its Chairman Rajiv Singh said. In his message to shareholders in the annual report, Singh said the company will continue to focus on corporate governance, operational excellence and upholding the value of the company's founders. "Our focus is to expand both our businesses, residential and commercial. The residential business continued its growth momentum, we witnessed an uptick in new sales bookings, coupled with record sales collections. "The markets response to our products continues to be very encouraging. It is with this conviction that we are entering new geographies like Mumbai and Goa," he said. While the company continues to launch new projects in Delhi-NCR, Singh said the company's strategy is to introduce a diverse range of offerings to meet the aspirational needs of the market. DLF has achieved strong sales bookings during the last two financial years, driven by significant surge in demand for its luxury homes. In the 2022-23 fiscal, it clocked a record sales of Rs 15,058 crore, while the company reported a sales of Rs 14,778 crore in the 2023-24 financial year. For the current fiscal (2024-25), DLF has set a 15 per cent growth target in sales bookings at Rs 17,000 crore as it plans to launch many luxury housing projects across Gurugram, Goa, and Mumbai. DLF's Chairman said the commercial business (development of office buildings, shopping centres) continues to perform well and the occupancy levels across the portfolio have increased substantially. "The company continues to invest in the capex of our new build-outs in Gurugram, Chennai, Delhi and Goa," he said. "This is a long gestation business and the arduous work we have put over the last decade has helped us to be in the strong position we are in, today," Singh noted. The chairman also told shareholders that the company continues to invest in talent acquisition and strengthen its internal policies to ensure a robust mechanism to support this growth. "While we strive for greater heights, I assure you that we will maintain our focus on operational excellence, corporate governance and uphold the values established by our founders, which remain our foundation and guiding principle. Our aim is to achieve long-term sustainable growth for all our stakeholders," Singh said. On the overall economic situation of the country, the DLF Chairman said the Indian economy has staged a broad-based recovery across sectors and surpassed its pre-pandemic growth trajectory. "Over the last decade, wide ranging structural and governance reforms have strengthened the economy's fundamentals which has made India the shining star in the global economy. The sustained growth momentum reaffirms the ability of the Indian economy to grow faster than ever." He said he strongly believes that the next decade will belong to India. On the new government, Singh said, "The third term of the government under the leadership of Prime Minister Shri Narendra Modi ji marks a milestone in good governance. This continuity will result in faster rollout of policies with renewed vigour for growth." He said the pace of progress and improvements will accelerate growth in years to come. "The government is investing heavily in infrastructure, highways, railways, electrification and other sectors. All progress in the new build-out cycle paves the way to achieve the Prime Minister's vision for 'Viksit Bharat 2047', which coincides with the Nation's 100th year of independence," Singh said. DLF's Chairman believes that the real estate sector will be a major contributor to India's economic progress, resulting in employment subsequently leading to macroeconomic and social growth. DLF is the country's largest real estate firm in terms of market capitalisation. It has developed more than 158 real estate projects and an area in excess of 340 million sq ft. DLF Group has 215 million sq ft of future development potential across residential and commercial segments. It has an annuity portfolio of over 44 mn sq ft with an annual rental income of more than Rs 4,000 crore. | null | null | 2024-07-18 07:21 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/us-stocks-mostly-down-amid-talk-of-overbought-market-12771413.html | US stocks mostly down amid talk of 'overbought' market | The Dow remained modestly positive, while both the S&P 500 and Nasdaq were firmly in the red. | Wall Street stocks mostly fell early Wednesday on weakness in Nvidia and other tech giants amid talk that markets are "overbought" after numerous records. The Dow remained modestly positive, while both the S&P 500 and Nasdaq were firmly in the red. About 15 minutes into trading, the Dow Jones Industrial Average was up 0.1 percent at 40,980.17, edging higher from Tuesday's record close. The broad-based S&P 500 dropped 1.0 percent to 5,612.86, while the tech-rich Nasdaq Composite Index fell 1.8 percent to 18,171.13. "The contention that the broader market is overbought on a short-term basis and due for a pullback is valid in its own right, yet it has been helped along this morning by some other news," said Briefing.com analyst Patrick O'Hare. O'Hare said investors were unnerved by comments from Donald Trump in a published interview that Taiwan "should pay" the United States for defense. Data showed that US industrial production cooled in June but still exceeded analyst expectations, with manufacturing and utilities output both rising. Among individual companies, Johnson & Johnson rose 2.0 percent after reporting better than expected profits on a 4.3 percent increase in sales. The drug and medical device company expressed confidence in its pipeline as it pursues regulatory approval of new products. | null | null | 2024-07-17 19:44 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/rising-us-rate-cut-optimism-steers-gold-to-all-time-high-12771385.html | Rising US rate cut optimism steers gold to all-time high | Rising US rate cut optimism steers gold to all-time high.Related stories. | Gold prices hit a record high on Wednesday, as comments from Federal Reserve officials boosted expectations of a September interest rate cut in the U.S. Spot gold was up 0.2% at $2,473.89 per ounce as of 1002 GMT, after hitting an all-time high of $2,482.29 earlier in the session. U.S. gold futures gained 0.4% to $2,478.50. "It seems like it's evident that the Federal Reserve is going to cut rates in September and that, coupled with the concept of the de-dollarization of how central banks have been buying more gold versus the U.S. Treasury yields, are currently the catalyst that is driving gold to these highs" said Alex Ebkarian, chief operating officer at Allegiance Gold. Fed Chair Jerome Powell said on Monday recent inflation readings "add somewhat to confidence" that the pace of price increases is returning to the central bank's target in a sustainable fashion. Fed's Adriana Kugler and John Williams also expressed cautious optimism that inflation is returning to its 2% target. "We will see some volatility as the market needs to confirm this isn't just a temporary euphoria," said Ebkarian. Demand from western markets, geopolitical risks, and potential recessionary threats could push gold prices to $2,600-$2,700 in the second half of the year, he added. Markets see a 100% chance of a U.S. rate cut in September, according to the CME FedWatch Tool. Non-yielding bullion's appeal rises when rates are lower. "Safe haven demand will support demand for bars and coins, but the higher prices will weigh on jewelry demand," UBS analyst Giovanni Staunovo said. Meanwhile, silver fell 1.4% to $30.95 per ounce, platinum rose 2.1% to $1,021.20 and palladium added 2.1% to $979.48. Staunovo noted that risk aversion tends to support the yellow metal and not white metals, which is why gold is outperforming the others. | null | null | 2024-07-17 18:47 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/mango-tastes-sour-this-summer-as-wholesale-price-sizzles-at-rs-48-5-a-kg-up-20-7-12771192.html | Mango tastes sour this summer as wholesale price sizzles at Rs 48.5 a kg, up 20.7% | Mango inflation inches up.Related stories. | The king of fruits is not soaamthis summer, with the prices being considerably hotter than last year. Mango inflation stood a high 37 percent in June, as against 25 percent a month back. The summer fruit was trading at a 12 percent premium of Rs 39.6 per kg in the wholesale market in the first two weeks of July, compared with Rs 35.4 per kg previous year. But it is not just mango, other summer fruits are also showing signs of high inflation. Musk melon orkharboojahas seen prices trend up an average 15.8 percent since the start of the fiscal, lychee inflation almost tripled in June to 15.2 percent from 4.6 percent. In June, fruit inflation has been a high 7.4 percent compared to 3.3 percent in March 2024. Experts indicate that the high inflation in fruits is likely to continue for the next few months. “Perishables tend to have a cyclical behaviour; there is a lot of volatility during summers, due to global warming and production disruptions,” said Madhavi Arora, chief economist at Emkay Global Institutional Equities. “With sowing patterns improving, cereals and pulses are likely to cool, but vegetables and fruits will take time to come off,” Arora added. Vegetable inflation has stayed in 10 of the last 12 months and rose to 30.2 percent in June compared with 28.2 percent in the previous month. Wholesale inflation in fruits almost doubled to 10.14 percent in June compared with 5.81 percent in the previous month. Experts indicate that hot weather also had a role to play in lower production numbers. “Hot weather has played a role in keeping prices higher and uneven distribution of monsoon hasn’t helped, so prices of fruits and vegetables are likely to stay higher for a brief period before they start tapering,” said Paras Jasrai, senior analyst, Ind-Ra. “Rising demand also has a role to play in higher prices." Fruits and vegetables have 10 percent weight in the consumer basket. | null | null | 2024-07-17 16:03 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/dharana-capital-invests-rs-400-crore-in-on-demand-home-service-provider-urban-company-12771212.html | Dharana Capital invests Rs 400 crore in on-demand home service provider Urban Company | The shares were acquired from employees and other shareholders, making this transaction the largest ESOP liquidity in Urban Company's history. | Dharana Capital on July 17 announced the acquisition of shares worth over Rs 400 crore ($50 million) in on-demand home service provider Urban Company (UrbanClap Technologies Private Limited) through a significant secondary transaction. The shares were acquired from employees and other shareholders, making this transaction the largest ESOP liquidity in Urban Company's history. Vamsi Duvvuri, Founder and Managing Partner of Dharana Capital, will also join the board of Urban Company as a Non-Executive Director. Vamsi Duvvuri, Founder and Managing Partner, Dharana Capital, said “Urban Company, with its full-stack approach and focus on partner enablement, has built a strong, capital efficient and durable business in a challenging local services market. We remain deeply impressed with the focus and execution of the UC founders and team. We look forward to continuing to support them in their endeavor to build a long-lasting institution.” Abhiraj Singh Bhal, CEO and Co-founder, Urban Company, said “We are very excited to partner with Dharana Capital and have Vamsi Duvvuri join our Board of Directors. Vamsi has been a strong partner to Urban Company for a long time, and we look forward to working with him even more closely in the future.” | null | null | 2024-07-17 15:45 |
moneycontrol.com | https://www.moneycontrol.com/news/business/sanofi-to-invest-euro-400-million-in-its-hyderabad-gcc-by-2030-12771178.html | Sanofi to invest Euro 400 million in its Hyderabad GCC by 2030 | Sanofi to invest Euro 400 million in its Hyderabad GCC by 2030. | Sanofi Healthcare India Pvt Ltd on Wednesday announced the expansion of its Global Capacity Centre (GCC) here with plans to invest Euro 400 million over the next six years, out of which Euro 100 million will be pumped in by next year. Madeliene Roach, Executive Vice President, Business Operations, Sanofi said in a press conference that over the next two years, this GCC will expand to host up to approximately 2,600 employees, making it the largest of Sanofi's four global hubs. Established in 2019, the Hyderabad hub has grown exponentially from being a medical hub to now providing several best-in-class services for Sanofi's global functions and affiliates across the world, she said. | null | null | 2024-07-17 14:45 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/indias-food-subsidies-to-cost-11-more-than-initial-plan-12771149.html | India's food subsidies to cost 11% more than initial plan | India's food subsidies to cost 11% more than initial plan. | India is likely to spend 2.25 trillion rupees ($11.97 billion) on food subsidies this financial year, four government sources said, up around 11% from the interim budget estimate in February due to higher spending on the support price for farmers. The country's combined food and fertiliser bill is expected to reach 3.88 trillion rupees, up 5% rise from the estimate in the interimbudgetunveiled before the election. Interim budget estimates will be replaced by a new budget from Prime Minister Narendra Modi's government that will be presented on July 23. Food and fertiliser subsidies in the interim budget accounted for about 8% of India's total spending of 47.66 trillion rupees during the fiscal year that ends on March 31, 2025. In the interim budget, the food subsidy bill was estimated at 2.05 trillion rupees, two of the sources said. The increase since then is largely due to a rise in the price at which the government buys rice and wheat from domestic farmers, one of the sources said. Meanwhile, the government is likely to stick to its previous estimate of 1.64 trillion rupees for the fertiliser subsidy, two of the sources said. The ministry of Consumer Affairs, Food and Public Distribution, the Ministry of Finance and the Ministry of Chemicals and Fertilizers did not immediately reply to requests for comment. | null | null | 2024-07-17 14:18 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/karnatakas-domicile-based-reservation-is-a-bad-idea-that-will-fail-in-court-12771117.html | Karnataka’s domicile-based reservation is a bad idea that will fail in court | Regardless of the political party in power, expanding the scope of reservation has become a preferred option to bridge the gap between youth aspirations and the reality of the job market.Related stories. | Karnataka’s Congress government is set to join the bandwagon of administrations which are using reservation as a tool to deal with an unsatisfactory job market for the young. The state cabinet has cleared a bill which aims to reserve 50 percent of jobs in a managerial role and 70 percent in non-managerial roles for people domiciled in the state for 15 years. In addition, there’s a condition that they have to display the prescribed proficiency in Kannada. Reports indicate that the bill will be tabled in the state assembly next week. The proposal has been criticised by prominent industry leaders because it will undermine the economic vibrancy of one of India’s most important growth engines. Also Read:ÂJunk this bill: Industry leaders slam Karnataka's job quota for locals Karnataka job reservation: Kiran Mazumdar-Shaw calls for exemption of 'highly-skilled' labour Karnataka is not the first state to try to reserve jobs in the private sector based on domicile. The most prominent recent example is Haryana. It ended badly for the BJP-anchored coalition government there as the Punjab & Haryana High Court in November 2023 struck down the legislation which provided for 75 percent reservation for locals in jobs that paid a monthly salary below Rs 30,000. Legal precedent against domicile-based reservation The High Court termed the policy as manifestly discriminatory. It ruled that this reservation policy violated a series of fundamental rights in the Constitution that provide safeguards against discrimination. Moreover, the law also violated Article 35 of the Constitution, which carves out exclusive powers for Parliament. The weight of recent legal precedence is against domicile-based reservation. Even if the final contours of Karnataka’s legislation are yet to take shape, the underlying idea is unlikely to survive judicial scrutiny. Wrong way to tackle jobs challenge Regardless of the political party in power, expanding the scope of reservation has become a preferred option to bridge the gap between youth aspirations and the reality of the job market. To illustrate, the union government’s annual employment report (PLFS) showed that from 2018-19, the last pre-Covid year, to 2022-23, the proportion of the workforce in agriculture increased from 42.5 percent to 45.8 percent. Simultaneously, the percentage of the workforce in manufacturing declined from 12.1 percent to 11.4 percent. An increase in proportion of workforce in agriculture is a sign that there are simply not enough jobs for rural youth elsewhere. This is not the same thing as absence of jobs. It could be a case of mismatch between skills on offer and what potential employers need. This gap is not going to be bridged by domicile-based reservation. Absence of right workforce can lead to economic decline As some industry leaders have argued, the absence of adequately skilled workforce can drive away industry. There are no shortage of options, either within India or elsewhere. Skilling is not a challenge that offers immediate solutions. But neither is reservation the answer. Hopefully, better sense will prevail when the bill is debated because Karnataka can ill-afford to spook industry at this juncture. | null | null | 2024-07-17 13:50 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/bajaj-electricals-md-ceo-anuj-poddar-steps-down-12771120.html | Bajaj Electricals' MD & CEO Anuj Poddar steps down | It was under Poddar's leadership that Bajaj Electricals became net-debt-free for the first time in March 2022.Related stories. | Bajaj Electricals Limited on July 17 said that its Managing Director & Chief Executive Officer Anuj Poddar has resigned from the post with effect from September 30, 2024. Poddar will move on from the company to pursue an external opportunity. During the transition period, Shekhar Bajaj, Chairman of the company will take over his responsibilities. "The Board has accepted his resignation while recognising and acknowledging AnujŌĆÖs stellar contributions in formulating the transformation and growth journey of the Company over the past five and a half years," the company said in a statement. Poddar led the company through a tumultuous phase and has been the architect of its overhaul and turnaround, Bajaj Electricals said. It was under Poddar's leadership that Bajaj Electricals became net-debt-free for the first time in March 2022, relaunched its flagship brand ŌĆśBAJAJŌĆÖ, established the ŌĆśHouse of BrandsŌĆÖ architecture, signed a long-term licensing agreement for the ŌĆśMorphy RichardsŌĆÖ brand, and more. During his tenure, the company witnessed increased focus and investments on accelerating its R&D capabilities as well. Commenting on his resignation, Shekhar Bajaj, Chairman ŌĆō Bajaj Electricals shared, ŌĆ£Anuj joined us at a time when we were facing significant challenges, and he has demonstrated exceptional passion, leadership and strategic foresight in navigating our organisation into a strong position... During the period of transition following his exit, as the Executive Chairman, I shall take over his responsibilities and along with our strong leadership team, we will continue to drive our future growth.ŌĆØ Further, Anuj Poddar added, ŌĆ£I shall always remain proud of and indebted to our entire team who have been an integral part of this journey and instrumental in the success we have achieved. I remain immensely confident of the strategic trajectory we are on and wish the Board and the Company all the very best for its continued success.ŌĆØ Meanwhile, shares of Bajaj Electricals on July 16 closed 0.79 percent lower at Rs 1,056.95 apiece on BSE. Equity markets were closed on Wednesday, July 17, in observance of Muharram. Consequently, all segments, including the equity segment, derivative segment, and SLB segment, will be closed today. | null | null | 2024-07-17 13:29 |
moneycontrol.com | https://www.moneycontrol.com/news/business/panasonic-avionics-opens-new-software-design-facility-in-pune-12771106.html | Panasonic Avionics opens new software design facility in Pune | Panasonic Avionics opens new software design facility in Pune.Related stories. | In-flight Engagement and Connectivity (IFEC) solutions provider Panasonic Avionics on Wednesday opened a new software design and development facility in Pune. The new facility, inaugurated by the Minister of State for Civil Aviation, Murlidhar Mohol, is the first in the country by Panasonic Avionics Corporation dedicated to supporting the development and delivery of IFEC solutions. The facility employs over 200 skilled engineers in the beginning with growth plans in place to scale it up further to support the increasing demand from airlines for these solutions, the company said. Panasonic Avionics said the new facility will accelerate its software development capabilities and help improve the time-to-market for robust, next-generation IFEC and digital solutions. "With its huge number of skilled engineers, and fast-growing aviation sector, India is a natural location for us to invest in for the future of our business, and we look forward to accelerating our software innovation and design capabilities from our new Pune facility," said Ken Sain, Chief Executive Officer at Panasonic Avionics Corporation. Sain, however, did not divulge the investment figures. According to him, Tata Group-owned Air India, which recently acquired Airbus wide-body A350 planes in its fleet, has been using its IFES solutions onboard these planes. Initiated in 2021, the new facility has been developed through a 'build-operate-transfer' (BOT) operation basis, the company said. The latest facility is integral to its strategy of enabling airlines to realise their passenger digital engagement visions by using the most innovative IFEC solutions, supported by enterprise software tools that are self-service and designed to lower IFEC solution lifecycle costs, it said. A range of software will be developed, tested, and sustained in the laboratories throughout the facility to deliver passenger experiences for both narrow and widebody aircraft that meet airlines' needs, it said. These include the X Series in-flight entertainment system and digital solutions, among others, the company said. India has become synonymous with capability when it comes to software talent, said Manish Sharma, Chairman of Panasonic Life Solutions India and South Asia, and Director, Panasonic Avionics India. "Today, India is providing IT support and IT services to the world and Panasonic has invested in setting up innovation centres and global capability centres to provide high-quality services to our other subsidiaries across the world," he said. The company's Pune facility is the latest in its series of investments in India, Sharma said, adding, "We are looking to cater to multiple markets and airlines with innovative solutions for in-flight engagement and communication (IFEC)," he added. Over 300 airlines globally currently have installed Panasonic Avionics' in-flight engagement, satellite Wi-Fi connectivity, and digital services on their aircraft, as per the company. The company also said it is developing partnerships with universities across India including, Maharashtra to nurture and develop skilled engineering graduates and also accelerate the growth of the new facility. | null | null | 2024-07-17 13:22 |
moneycontrol.com | https://www.moneycontrol.com/technology/karnatakas-job-quota-for-locals-industries-minister-says-everyones-interests-will-be-safeguarded-article-12771074.html | Karnataka's job quota for locals: Industries minister says 'everyone's interests will be safeguarded' | cKarnataka Commerce & Industries Minister MB Patil..Related stories. | Karnataka's move to reserve jobs for locals in the private sector has sparked division among its ministers, with State Commerce & Industries Minister MB Patil asserting the state's commitment in safeguarding everyone's interest. "Karnataka is a progressive state, and we cannot afford to lose in this once-in-a-century race of industrialisation. We will make sure that everyone's interests are safeguarded. The Industries are assured that they need not have any fear or apprehensions and can rest assured," Patil said. On July 15, the Karnataka cabinet approved the draft State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, mandating 50 percent of management jobs and 70 percent of non-management roles to be reserved for local candidates (Kannadigas). Also read:ÂJunk this bill: Industry leaders slam Karnataka's job quota for locals The state cabinet also approved a 100 percent quota for Kannadigas in Group C and Group D jobs (blue-collar workers) in the private sector. Further, Patil said: "India is currently experiencing a manufacturing and industrial revolution driven by the global China Plus One policy. In this competitive era, states like Karnataka, Maharashtra, Tamil Nadu, and Telangana are striving to be at their best. It is of utmost importance for all states to be at their competitive peak". "Keeping the interests of Kannadigas paramount, I will discuss this issue with CM, IT-BT Minister, Law Minister, and Labour Minister. We will have wider consultations. We will ensure that the interests of Kannadigas are protected, alongside those of the industries" he added. Karnataka Labour Minister Santosh Lad toldMoneycontrol: "The bill mandates giving priority to Kannadigas, especially since many private firms avail subsidies and other benefits from the government to set up establishments. Therefore, we aim to create more jobs for local Kannadigas." He said the draft bill will be tabled during the current legislature session. Lad added that the bill aims to provide opportunities for local candidates in industries, factories, and other establishments in the state. This is not the first time differences have cropped up among ministers. It may be recalled that aggregators and tech industry bodies have urged the Karnataka government toextend the deadline for submitting suggestions and objectionson the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Draft Bill, 2024. However, Lad said the draft will be placed in the current session of the legislature. Also, read:ÂKarnataka Gig Workers Bill: Aggregators, industry bodies seek more time, wider consultation Karnataka IT-BT minister Priyank Kharge had said, “We recognise that the welfare of gig workers is very important. We will do a deep dive and ensure the Bill will be a win-win for all. Companies have sought more time and also requested the CM and Deputy CM for a wider consultation on the Bill. They said 10 days for feedback was too short, and they need more time. The CM will take the final call on this.” | null | null | 2024-07-17 13:06 |
moneycontrol.com | https://www.moneycontrol.com/technology/junk-this-bill-industry-leaders-slam-karnatakas-job-quota-for-locals-article-12771040.html | Junk this bill: Industry leaders slam Karnataka's job quota for locals | Many industry leaders said the state government's decision will impact business activities in the state and may even force some to relocate to other states. File photo.Related stories. | The Karnataka government's move to reserve jobs in the private sector for locals has faced sharp criticism from industry leaders, who argue that the measure will deter talent and investment from flowing into the state. On July 15, the Karnataka cabinetapproved a draft billmandating that 50 percent of management jobs and 70 percent of non-management roles be reserved for locals in the private sector. Additionally, the state government endorsed a 100% quota for Kannadigas in Group C and Group D jobs (blue-collar workers) in the private sector. Many industry leaders said the state government's decision will impact business activities in the state and may even force some to relocate to other states. Also, read:ÂKarnataka cabinet approves draft bill mandating 50% reservation for locals in management jobs, 70% in non-management categories Kiran Mazumdar-Shaw, executive chairperson of Biocon Limited wrote on X: "As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals, we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy”. Former Infosys CFO TV Mohandas Pai also slammed the draft bill. "This bill should be junked. It is discriminatory, regressive, and against the Constitution. This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of the private sector? People must take a language test?" he wrote on X. "Industry and companies will push back against this bill," said Shriram Subramanian, founder and Managing Director of InGovern Research Services. The societal impact on the psychology of citizens (both Karnataka domicile and those outside Karnataka) will be huge. Karnataka doesn't have enough talent. Industry and jobs will move out of Karnataka. This sets a bad precedent." he added. Not in the right spirit Industry leaders pointed out that the Punjab and Haryana High Court quashed a law guaranteeing 75 percent reservation in private sector jobs for residents of Haryana. The law, enacted by the Haryana government in 2021, made it mandatory for employers in the state to reserve 75 percent of jobs with a monthly salary of less than Rs 30,000 for state residents. According to legal experts, the draft bill violates both Article 14, which guarantees equality of all citizens, and Article 19, which grants every citizen the right to reside and work in any part of the country. Also, read:ÂKarnataka’s Misguided MNC Mandate: Putting politics over progress RK Misra, co-founder of Yulu and co-chairman of ASSOCHAM, said, "If the government forces companies to hire only locals, they will likely relocate to places like Pune and Hyderabad. Many corporate leaders in Bengaluru are already upset and frustrated due to inadequate infrastructure such as roads, water, and sewerage systems provided by the government. Now, the government is preventing them from hiring the right talent, leaving them with two options: either shut down or relocate.'" "To aid the unskilled and unemployed effectively, exempting IT/BT, GCCs, and startups from such regulations is crucial to maintain their global competitiveness and prevent relocation," Misra said. Also, read:ÂKarnataka’s domicile-based reservation is a bad idea that will fail in court He suggested a government-funded 3-month internship/apprenticeship program to address Karnataka's skilled manpower shortage, allowing companies to assess and hire suitable candidates. Nooraine Fazal, co-founder and CEO of Inventure Academy, said: "In a globalized world, we need and want the best person for a specific role. Every role requires a combination of technical and non-technical expertise (communication, collaboration, creativity, critical thinking, people management, etc.). This law sends the wrong signal to the community." She urged the government to prioritise investing in education, entrepreneurship, and upskilling initiatives to ensure equal opportunities for all citizens to succeed. Revathy Ashok, CEO of NGO Bangalore Political Action Committee and an angel investor, warned that Bengaluru's status as a global tech city, driven by its rich talent pool, could be jeopardised by these regressive measures. She cautioned that such steps will deter investors due to negative media attention, potentially leading investments to relocate to regions known for attracting top talent. "The government should invest more in top-tier education and local talent development instead of resorting to knee-jerk reactions". Also read:ÂKarnataka set to be the first state to come up with GCC policy by August An industry veteran, speaking on condition of anonymity, toldMoneycontrol: 'This is a disaster. Karnataka, with the largest number of GCCs and expectations for more investments, faces a looming scare. The government's underlying philosophy is detrimental to Bangalore/Karnataka's brand. We certainly don't need another regulation to contend with. This move will undoubtedly lead to significant chaos and prompt a reassessment of activities directed towards Karnataka. Talent hubs aren't built through reservation policies. First, a GCC policy promotes opportunities for new companies, only to be restricted by this decision. We seem adept at taking one step forward and one step back.'" However, pro-Kannada organisations welcomed the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024. They said that it will create more job opportunities for locals. Labour department officials said that while the cabinet has approved the draft bill, it is yet to be tabled in the legislature. Karnataka is home to more than 5,500 IT and ITES (Information Technology and Enabled Services) companies and around 750 multinational companies. The IT and ITES industry in the state provides direct employment to more than 1.2 million professionals and generates over 3.1 million indirect jobs. Karnataka's share of software exports, nearly 40% of the country's total, solidifies its position as a global IT powerhouse. The state also hosts around 40% of Global Capability Centers (GCCs) in India. Also, read:ÂKarnataka to conduct Global Investors Meet in Bengaluru from Feb 12-14 next year | null | null | 2024-07-17 12:40 |
moneycontrol.com | https://www.moneycontrol.com/news/business/pratt-whitney-opens-new-customer-service-centre-in-bengaluru-12771020.html | Pratt & Whitney opens new customer service centre in Bengaluru | Pratt & Whitney opens new customer service centre in Bengaluru.Related stories. | US aerospace major Pratt & Whitney on Wednesday announced the establishment of a new Customer Service Centre (CSS) in Bengaluru. As part of the company's India Capability Centre, the new facility will drive customer service and operations support for Pratt & Whitney Canada's 68,000 engines in service globally, the company said. Co-located with Pratt & Whitney's supply chain operations, engineering, and digital transformation centres of excellence in India, CSS will deliver a range of services such as MRO support, spare part management, engine leasing, engine reliability analysis and contract administration. The facility will employ over 150 aerospace experts and engineers who will support a global customer service ecosystem, it added. The centre is expected to cater to clients, including domestic and global airlines, original equipment manufacturers, MROs, regulatory bodies and small operators, Pratt & Whitney said. "With the new Customer Service Centre, we are leveraging our existing investments in India and using regional talent to augment our product and service dependability and customer experience service level," said Nivine Kallab, Vice President, Customer Programs, Pratt & Whitney Canada. Pratt & Whitney Canada's turboprop engine families power the majority of India's regional jet fleet comprising ATRs and DHC-8-400 planes. "We have invested over USD 40 million in India across our centres and expanded our talent pool to over 600 employees within the last three years," said Sandeep Sharma, Director of Capability Center, Pratt & Whitney (UTCIPL). The CSS will aim to enhance the company's worldwide service transformation and deliver operational excellence, he added. | null | null | 2024-07-17 12:22 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/adb-keeps-7-growth-forecast-unchanged-for-indian-economy-in-fy25-12770942.html | ADB keeps 7% growth forecast unchanged for Indian economy in FY25 | ADB raises growth.Related stories. | Asian Development Bank kept India’s FY25 growth forecast unchanged at 7 percent from its April outlook, according to its latest report released on July 17. The Asian lender projected the economy to grow faster at 7.2 percent in FY26. “After muted growth in FY24, a rebound in agriculture is expected given the above-normal monsoon projections. This is notwithstanding the slower advance of the monsoon in June,” ADB noted. It further pointed out that investment demand continues to be strong, buoyed by private investments. The central government hadbudgeted an outlay Rs 11.1 lakh crore on capex for FY25. “The stronger-than-expected fiscal position of the central government could provide a further boost to growth. However, this must be weighed against downside risks arising from weather events and geopolitical shocks,” the Manila-based institution said. The bank expects services growth to trump merchandise growth again in FY25. India’s services exports rose 4.9 percent to $341 billion in FY24, even as merchandise exports were down from the previous fiscal. On the inflation front, ADB projected a decline to 4.6 percent in the current fiscal, declining to 4.5 percent in FY26, closer to the 4 percent target of the central bank. The Reserve Bank of India’s Monetary Policy Committee is likely to keep policy rates on hold for the ninth consecutive time at its meeting in August. India’s inflation crossed 5 percent mark in June, as food inflation galloped to 9.4 percent from 8.7 percent in May. Inching up to 7 percent The announcement follows International Monetary Fund’s forecast upgrade for India’s FY25 growth to 7 percent from 6.8 percent projected in April. IMF had noted that strong growth in FY24 and expectations of consumption recovery had prompted an upgrade. The forecasts by multilateral institutions are still lower than RBI’s projection of 7.2 percent, which it had upped from 7 percent in June. Indian economy is expected to growth over 7 percent for four consecutive years. It had logged 8.2 percent growth in the previous fiscal. Better outlook for Asia The forecast for Asia received an upgrade to 5 percent from 4.9 percent projected in April. “Most of Asia and the Pacific is seeing faster economic growth compared with the second half of last year,” said Albert Park, chief economist, ADB. The Manila-lender cited uncertainty related to election outcomes in major economies to interest rate decisions and geopolitical tensions as risks. | null | null | 2024-07-17 11:30 |
moneycontrol.com | https://www.moneycontrol.com/news/business/glenmark-pharma-gets-usfda-nod-for-seizure-treatment-drug-2-12770924.html | Glenmark Pharma gets USFDA nod for seizure treatment drug | Glenmark Pharma gets USFDA nod for seizure treatment drug. | Glenmark PharmaceuticalsLtd on Wednesday said it has received final approval from the US health regulator for its generic Topiramate capsules used to treat certain types of seizure. The approval by the US Food & Drug Administration (USFDA) is for Topiramate capsules of strengths 15 mg and 25 mg, Glenmark Pharmaceuticals said in a statement. Glenmark's Topiramate capsules USP, 15 mg and 25 mg have been determined by the FDA to be bioequivalent and therapeutically equivalent to Topamax capsules, 15 mg and 25 mg of Janssen Pharmaceuticals, Inc., and will be distributed in the US by Glenmark Pharmaceuticals Inc., USA, it added. Topamax Capsules, 15 mg and 25 mg market achieved annual sales of approximately USD 21.9 million, the company said citing IQVIATM sales data for the 12-month period ended May 2024. The company said its current portfolio consists of 198 products authorised for distribution in the US marketplace and 50 ANDAs (Abbreviated New Drug Applications) pending approval with the USFDA. The company said it continues to identify and explore external development partnerships to supplement and accelerate the growth of its existing pipeline and portfolio. | null | null | 2024-07-17 10:40 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/union-budget-2024-the-fours-themes-of-growth-12770814.html | Union Budget 2024: The four themes of growth | Four priorities for Budget 2024-25..Related stories. | Strong growth momentum, healthy external buffers and strong balance sheets of corporates and banks provide a favourable backdrop to the full Union Budget for this fiscal. That said, stubborn food inflation, weak consumption demand and tepid private investments call for remedial measures. It also needs to be kept in mind that one quarter of the fiscal year is over andbudgetary measures will at best influence the performance of the second half of the current fiscal. We see four priorities this time: Fiscal consolidation: Despite various imperatives, the government should not compromise on fiscal consolidation which has been its the hall mark. Fortunately, higher-than-expected dividend of Rs 2.1 lakh crores from the Reserve Bank of India (RBI) will allow the government toundertake additional expenditure, while sticking to the fiscal consolidation path laid out in the interim budget. This will keep the cost of borrowing for the government under check and help in bringing down the debt ratio will be in sync with monetary policy stance. It is also important to note that the inclusion of India in global bond indices subjects it to more fiscal scrutiny. Weak consumption: Private consumption demand growth slowed to a two-decade low of 4% (excluding the pandemic year) in fiscal 2024. Some of the transitory factors that caused it are likely to reverse. If agriculture does well and food inflation comes down as is expected with prediction of normal monsoons this year, rural consumption demand will get a leg up. Urban demand may soften due to higher interest rates and slowing of services as the pent- up demand gets exhausted. The RBI’s consumer confidence survey, too, reflects weakening consumer sentiment. The budget could give some tax relief to the middle class which largely benefits the urbanites and support employment and income augmenting like rural infrastructure and housing development in rural areas. Food inflation:Food inflation has remained stubbornly high since the last fiscal when it averaged 7.5%. In the first quarter of the current fiscal it spiked further to 9% with vegetable inflation at 28%. Inclement weather events accentuated by ongoing climate change disruptions are behind high food inflation. The Budget needs to allocate more resources to adapting to climate change and also speed up the creation of storage and transport infrastructure and for agriculture. We also need to raise productivity in agriculture for which R&D spending will need to go up. China with similar arable land compared to India produces much more foodgrains. Enabling private corporate investments:For a sustainable lift in investments,private corporate sectorneeds to step up its role. Current lift in investments is largely coming from government’s infrastructure buildout and household investments. The ability of private sector to invest has been augmented by healthy balance sheets, competitive corporate tax rates. production linked incentive (PLI) scheme and crowding in impact of government investment. Till the time our logistics and power costs become competitive enough, government support may be needed to rekindle labour intensive sectors like textiles, gems and jewelry which have not done well in the last few years. Finally, the government needs to pursue reforms. Past experience with economic reforms, be it 1991 or the introduction of Goods and Services Tax (GST) in 2017, informs us that their benefits take time to materialize. Pending reforms (land, labour) are needed for promoting private corporate as well as foreign investments and improving the growth potential of the economy. | null | null | 2024-07-17 09:47 |
moneycontrol.com | https://www.moneycontrol.com/news/business/nclt-admits-byjus-to-insolvency-resolution-process-order-passed-in-bccis-plea-12770170.html | NCLT admits Byju's to insolvency resolution process, order passed in BCCI's plea | The tribunal has appointed Pankaj Srivastava as the interim resolution professional..Related stories. | The National Company Law Tribunal (NCLT) on July 16 admitted embattled ed-tech company Byju's parent Think and Learn to insolvency resolution process in a plea filed by the Board of Control for Cricket in India (BCCI). The tribunal has appointed Pankaj Srivastava as the interim resolution professional, in charge of running the company till the lenders form a committee known as the Committee of Creditors. "The Interim Resolution Professional shall after collation of all the claims received against Think and Learn Pvt Ltd the Corporate Debtor and thedetermination of the financial position of the Corporate Debtor constitutes a Committee of Creditors," the order said. The NCLT also dismissed Byju's request to refer the dispute to arbitration. Byju's, once celebrated as the world’s largest education technology company and a shining example of India's startup success, has now become a cautionary tale of financial mismanagement. Once valued at an astounding $22 billion, the company's worth has plummeted to less than $1 billion over the years with creditors filing lawsuits to recover debts, coaching centers closing due to unpaid rent, and thousands of employees left hanging without salaries. Though the former management of Byju'shas indicated that they will attemptto settle the dispute with BCCI out of court, they might still have to obtain a stay of this order to be in control of the company. Also Read |ÂNCLT tells Byju's to pay salaries or face an audit The NCLT opined that there is no reason to deny the petition filed under section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 by the BCCI to initiate a Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor (Byju's) since the existence of a debt and a default in the payment of debt is established. Also Read |ÂUnacademy's Gaurav Munjal on why Byju Raveendran failed: 'didn't listen, put himself on a pedestal' What admission to NCLT means for the company? As per the IBC, the control of the company will now be taken from the current management and will be given to the creditors of the company. Furthermore, no assets of Byju's can be transferred while the company is in CIRP. IBC also prohibits the institution of any suits or pursuing of any existing cases against Byju's. The company is now under moratorium, which means, all its debts and interest on debts will remain frozen till its lifted by the NCLT through an order. The COC, will now run the company through the IRP/RP for a maximum period of 330 days, if the COC is able to sell the company to an interested party through a bidding process, the company could be revived. However, if the CoC fails to find a buyer in the 330 days, the NCLT will order the company to be liquidated. Raveendran or any member of the board of the company can appeal against this order in the National Company Law Appellate Tribunal (NCLAT) and at the Supreme Court thereafter. However, lifting the CIRP is purely at the discretion of the court. The case, which was filed by the BCCI on September 8, 2023, came up for a hearing only on November 28 last year. At the very first hearing, the NCLT issued a notice to Byju’s and sought its response. Also Read |ÂByju's seeks 48 hours to decide on undertaking to not sell or pledge assets According to the order from November 2023, the BCCI claimed that Byju’s had defaulted on a payment of Rs 158 crore. “It is stated that the general notice was issued to Byju’s vide email dated 06.01.2023 and the default amount of Rs 158 crore, excluding TDS as reflected,” the NCLT order from November read. | null | null | 2024-07-17 08:31 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/expect-domestic-two-wheeler-sales-to-reach-peak-levels-of-fy19-latest-by-q1-fy26-bajaj-auto-12770809.html | Expect domestic two-wheeler sales to reach peak levels of FY19 latest by Q1 FY26: Bajaj Auto | The rising commodity prices, specially natural rubber, have forced the company to increase prices in beginning of this month.Related stories. | Two-wheeler sales in India are expected to grow around 6-8 per cent this fiscal and could reach the peak level of 2018-19 either in the fourth quarter or the beginning of next financial year, a top official of Bajaj Auto said on Tuesday. The rising commodity prices, specially natural rubber, have forced the company to increase prices in beginning of this month. ”The market sentiment is quite positive in both rural and urban areas. Our expectation is that the two-wheeler market should grow around 6-8 per cent this year,” Bajaj Auto Executive Director Rakesh Sharma told reporters in an earnings conference. When asked by when the industry could touch the peak sales achieved in 2018-19, he said, ”If not Q4 of this year, by Q1 of next year we should be able to breach the watermark of FY19.” In 2018-19, domestic two-wheeler sales were at 2.12 crore units. In FY24, domestic two-wheeler sales were at 1.8 crore units, according to Society of Indian Automobile Manufacturers (SIAM) data. One of the key factors driving growth of two-wheeler sales is the bounce back of retail financing, he said. ”Things have been on an upswing in retail finance with 75 per cent of two-wheeler purchases are getting financed today as compared to 65 per cent around the same time last year,” he added. When asked about impact of rising commodity prices, Sharma said, ”We have taken price hikes on July 1 in both domestic and internal markets. The impact of this is around 2-3 per cent.” Currently it is at a manageable level, he added. | null | null | 2024-07-16 23:15 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/imf-raises-indias-growth-forecast-upward-to-7-for-fy25-12770695.html | IMF raises India’s FY25 growth forecast to 7% from 6.8% | IMF India forecast.Related stories. | The International Monetary Fund raised India’s growth forecast for FY25 to 7 percent from 6.8 percent projected in April, according to its World Economic Outlook released on July 16. "The forecast for growth in India has also been revised upward, to 7 percent, this year, with the change reflecting carryover from upwardrevisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas," the fund noted. The global financial institution expects the economy to grow 6.5 percent in FY26—unchanged from April. In June, the Reserve Bank of India had revised India’s growth forecast upward to 7.2 from 7 percent earlier. The country has grown over 7 percent over the last three years. The economy grew 8.2 percent in FY24, with investment and manufacturing supporting growth. But private consumption spending was lower at 4 percent. Economists indicate a pick up in rural consumption in FY25, but note that a revival would be contingent on good monsoon and lower inflation. India's inflation rose back above 5 percent in June after a four month hiatus, as food inflation surged to 9.4 percent from 8.7 percent earlier. Global growth stable On the global front, the fund kept its forecast unchanged at 3.2 percent in 2024, predicting a rise to 3.3 percent next year. The multilateral institution projected growth to slowdown for the US and Japan from April estimates, while it predicted a faster pace of rise for China. The fund noted that risks to growth were balanced, with rising risks to inflation, which are expected to increase prospects for higher-for-even-longer rates. | null | null | 2024-07-16 22:34 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/gold-sprints-to-all-time-high-as-fed-rate-cut-hopes-boost-demand-12770795.html | Gold sprints to all-time high as Fed rate-cut hopes boost demand | Gold sprints to all-time high as Fed rate-cut hopes boost demand.Related stories. | Gold prices jumped more than 1% to a record high on Tuesday, as investors flocked to the safe-haven asset after comments from Federal Reserve officials cemented expectations of a U.S. interest rate cut in September. Spot gold gained 1.6% to $2,460.99 per ounce by 11:32 a.m. ET (1532 GMT), while U.S. gold futures for August delivery rose 1.5% to $2,465.80 per ounce. "Gold surges to new all-time highs despite stronger-than-expected core retail sales data, encouraged by Powell indicating yesterday that the Fed was growing more confident that inflation was back on its way to target," said Tai Wong, a New York-based independent metals trader. "This essentially etches a September cut in stone barring an inflation calamity in the coming weeks." Fed Chair Jerome Powell on Monday said recent inflation data bolstered policymakers' confidence that price pressures are on a sustainable path to remain low, reassuring markets that the U.S. rate cut is on the cards in September. San Francisco Fed Bank President Mary Daly also said "confidence is growing" that inflation is heading toward the U.S. central bank's 2% goal. Lower U.S. interest rates put pressure on the dollar and bond yields, which increases the appeal of non-yielding bullion. Gold prices have risen more than 19% so far this year, after a 13% rise in 2023. "Thanks largely to weakness in economic data, and falling inflationary pressures, bond yields are continuing to remain under pressure," said Fawad Razaqzada, market analyst at City Index. [US/] "This is helping to boost the appeal of low- and zero-yielding assets, and thereby keeping the gold outlook positive." Gold's rise came despite a stronger dollar, with the U.S. unit up 0.2% against its rivals, after a reading of retail sales proved to be firmer than expected. Among other metals, spot silver rose 0.9% to $31.29 per ounce, platinum gained 0.2% to $997.13 and palladium climbed 0.7% to $957. | null | null | 2024-07-16 22:16 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/tata-power-to-invest-rs-20000-crore-capex-in-fy25-n-chandrasekaran-12770754.html | Tata Power to invest Rs 20,000 crore capex in FY25: N Chandrasekaran | Among the key higlights the company said that there will be aggressive growth in rooftop solar projects , and the company is aiming for increased market share on back of PM Surya Ghar Yojana.Related stories. | Tata Power will invest Rs 20,000 crore capex in FY25, the electric utility company's chairman said on July 16 during its 105th Annual General Meeting (AGM) for the Financial Year 2023-24. Natarajan Chandrasekaran, in his speech to shareholders, said that the company's robust financial and operational performance is a sign of its commitment towards consistent growth, financial prudence and project execution excellence. “Tata Powerplans to invest Rs 20,000 crore capex in FY25. This is over and above the Rs 12,000 crore invested in FY24. A large part of this will be towards accelerating the Company’s renewable energy portfolio and balance towards Transmission and distribution businesses. The company will also explore participation in Small Modular Nuclear Reactors, once the Government gives necessary permissions apart from new distribution expansion opportunities in other states, as and when these opportunities arise in line with Government policies” Chandrasekaran said. Among the key higlights from his speech, Tata Power will aim for aggressive growth in rooftop solar projects, and looks to increase its market share on back of the Union government's PM Surya Ghar Yojana. The company's financials showed decent growth as consolidated revenue grew 10 percent to Rs 61,542 crore; PAT increased 12 percent to Rs 4,280 crore. The company's Board of Directors also recommended a dividend of Rs 2 per equity share. Tata Power is aiming for 15-GW clean energy portfolio in five years from the existing 9 GW, both from existing and ongoing projects, it said in the statement. | null | null | 2024-07-16 21:22 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/network18-q1fy25-tv-news-revenue-jumps-14-digital-news-business-records-34-growth-12770756.html | Network18 Q1FY25: TV news revenue jumps 14%, digital news business records 34% growth | The largest TV news network in India registered a revenue of Rs 385 crore in Q1FY25, as compared to Rs 337 crore in the same quarter of FY24.Related stories. | Network18’s TV news business has recorded a significant jump of 14 percent in revenue in the fiscal first quarter. The largest TV news network in India registered a revenue of Rs 385 crore in Q1FY25, as compared to Rs 337 crore in the same quarter of FY24. It delivered industry-leading revenue growth during the general elections on the back of strong market positions across genres. TV News portfolio delivered 30 percent advertising growth during the quarter. The network leveraged its leadership positions across key markets and election-linked advertising tailwinds to deliver industry-leading ad growth. EBITDA for the quarter saw a turnaround as revenue grew 14 percent while costs were flat. The TV news network posted EBITDA of Rs 40 crore in Q1FY25, a remarkable 46 percent increase (YoY). The news network’s All-India TV viewership share of 11.3 percent was 40bps higher on a quarter-on-quarter basis, driven by its unparalleled 360-degree coverage of general elections. News18 was the preferred network of choice across the country, highlighted by the fact that the reach of the network on the counting day was 50percent higher than that of the IPL finale on TV. The network maintained its leadership in key markets. CNBC-TV18 dominated as the top business channel with 66.2 percent viewership share, CNN-News18 held the number one spot in the English news segment with 35.8 percent share, and News18 India secured 13.5 percent viewership share. The news network is also a leading force in covering state-level news through its portfolio of 14 regional channels. The network had leadership positions in three regional markets of UP/Uttarakhand, Bihar/Jharkhand and Gujarat. News channels in West Bengal, Rajasthan, Orissa, and Punjab/Haryana were strong number two players. It continues to be the highest-reach TV news network in the country, reaching 200 million people every week. Digital news business sees 34 percent growth The digital news business ofNetwork18recorded a massive growth of 34 percent in Q1FY25. It registered a total revenue of Rs 109 crore as compared to Rs 81 crore for the same quarter in FY24. Network18’s digital news portfolio saw a sharp jump in monthly unique visitors. With 250 million unique visitors, Network18 closed the reach gap with the leader to just 10 percent, compared to 50 percent + in March 2023. Moneycontrol continued to be the number one player in terms of both reach and engagement metrics driven by its exhaustive coverage of all things related to economy and markets. All key engagement metrics like monthly page views, time-spent and sessions were 20 percent -70 percent higher than the nearest competitor. Moneycontrol Pro crossed 8.1 lakh paid subscribers, strengthening its position as the number one subscription-based news platform in India and among the top 3 in Asia as per FIPP’s Digital Subscription Report. News18.com established itself as the number one platform for non-English language consumers in India during the last quarter. The platform continued to expand its reach with editorial and product initiatives, which resulted in 50 percent growth in monthly average unique visitors on a quarter-on-quarter basis and 100 percent Y-o-Y growth in on-platform video views. News18’s mobile app saw a 2x increase in MAUs, and News18’s Connected TV app was launched for platforms like Android, Samsung Tizen and Firestick. Firstpost’s coverage of international events with an Indian perspective continued to power reach and engagement through the quarter. The platform saw a 67 percent increase in monthly active users and page views since the launch of the revamped website. On counting day, the website’s traffic doubled compared to normal days and time spent grew 4x. Firstpost’s growth on YouTube continued to be impressive, with a subscriber count that had crossed the five-million mark. | null | null | 2024-07-16 21:08 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/why-chinas-slowdown-is-not-indias-headache-12770480.html | Why China's slowdown is not India's headache? | China growth slowdown to have marginal impact on growth.Related stories. | The Chinese economy is likely to pull down global growth further, as it struggles to reach its 5 percent target for 2024, but the impact on India may be limited, economists told Moneycontrol, as they noted that lower commodity prices could help curb the downside. The Chinese economy grew 4.7 percent in the second quarter of 2024, its slowest pace since January-March 2023. The economy had expanded 5.3 percent in the first quarter of the year, down from its heady 7 percent growth days between 2014 and 2018. ŌĆ£Global growth will be affected by China slowdown as it will affect trade. India not to be affected much as we are more of domestic economy,ŌĆØ said Madan Sabnavis, chief economist, Bank of Baroda. The Chinese government is targeting a 5 percent growth for 2024, which experts point that the economy is likely to miss. The data release corresponds with the Third Plenum, which is held every five years to decide on social and economic policies. Experts note that a slowdown is likely to afflict imports coming into the country. Retail sales growth in the country at 2 percent in June was the weakest in 18 months. A Moneycontrol analysis of UN trade data shows that the country cornered 10.6 percent of global imports in 2023. Its share in global imports is higher than what it was a decade ago. ChinaŌĆÖs imports from the world have grown at a compounded annual growth rate of 2.7 percent between 2013 and 2023, compared with 2.4 percent growth in global trade over the last decade. ŌĆ£Growth slowdown in China reverberates more widely across countries and could impinge on export volumes,ŌĆØ said Abhishek Upadhyay, senior economist at ICICI Securities Primary Dealership. An IMF paper from November 2023, pointed out that a percentage point decline in ChinaŌĆÖs growth rate could reduce average growth in Sub-Saharan Africa by 0.25 percentage points. IMF predicts growth in China to further slowdown to 3.3 percent by 2029. ŌĆ£China slowing down alone is not really an issue, geopolitical tensions are more of a concern as many countries are slowing down,ŌĆØ said Arpita Mukherjee, professor, Indian Council for Research on International Economic Relations. Silver liningEconomists point to a silver lining in ChinaŌĆÖs slowing growth which may contain the impact for economies. ŌĆ£Negative impact on growth could be curbed by softer commodity prices that are intricately linked to China economic cycle also and these need to be taken into account as well,ŌĆØ said Upadhyay. The global commodity prices have witnessed a dip since June 2024. The Bloomberg commodity price index declined 1.6 percent in June to 102.2 and was 0.9 percent lower for the first two weeks of July. | null | null | 2024-07-16 20:04 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/home-delivery-of-liquor-through-swiggy-zomato-bigbasket-likely-soon-in-more-states-report-12770707.html | Home delivery of liquor through Swiggy, Zomato, BigBasket likely soon in more states: Report | Currently only two states, West Bengal and Odisha allow home delivery of alcohol.Related stories. | Food delivery platforms like Swiggy, Zomato, and BigBasket may soon start to deliver drinks with low-alchohol such as wine and beer in more states, according to a report published in The Economic Times. Currently, only two states, West Bengal and Odisha allow home delivery of alcohol and according to the ET report authorities of six states are likely to launch a pilot project after making a due assessment of this project. The states include Karnataka, Haryana, Punjab, Tamil Nadu, Goa, Kerala, and UT of Delhi. Moneycontrol could not independently verify the report. "This is to cater to a growing expat population, especially in larger cities, changing profiles of consumers who perceive moderate alcohol-content spirits as recreational drinking along with meals, and women and senior citizens who have flagged buying from traditional liquor vends and shop-front experiences as unpleasant," said one of the to ET on the condition of anonymity. Dinker Vashisht, vice-president, of corporate affairs at Swiggy told to ET,"Online models ensure end-to-end transaction records, age verification and adhere to limits. Further, online tech stacks synchronise with regulatory and excise requirements, ensuring adherence to timings, dry days and zonal delivery guardrails." In West Bengal, customers must complete a one-time instant age verification by uploading a picture of their valid government ID, followed by a selfie that the platform will use for authentication. There is also a capping on the order quantity to ensure a customer does not order alcohol above the prescribed limit as per the state's excise law, it added that customers in West Bengal can access the 'Wine Shops' category by updating their Swiggy app. | null | null | 2024-07-16 19:20 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/imf-keeps-global-growth-forecast-unchanged-at-3-2-for-2024-12770710.html | IMF keeps global growth forecast unchanged at 3.2% for 2024 | Global growth steady at 3.2%.Related stories. | The International Monetary Fund, on July 16, predicted the global economy to register 3.2 percent growth in 2024, unchanged from April. The multilateral institution predicted a stable path to growth, with 2025 expected numbers to be a tad higher at 3.3 percent in 2025. “The forecast for growth in emerging market and developing economies is revised upward; the projected increase is powered by stronger activity in Asia, particularly China and India,” it said. India’s FY25 growth forecast has been revised upwards to 7 percent from 6.8 percent projected in April, while China's growth estimate has been revised upward to 5 percent from 4.6 percent for 2024. The fund revised the US and Japan forecast downwards. The US economy is now expected to grow 2.6 percent from 2.7 percent predicted earlier, whereas Japanese economy is expected to grow at 0.7 percent—0.2 percentage points lower. The fund pointed out that risks to growth were balanced. “Services price inflation is holding up progress on disinflation, which is complicating monetary policy normalisation. Upside risks to inflation have thus increased, raising the prospect of higher-for-even-longer interest rates, in the context of escalating trade tensions and increased policy uncertainty,” it said. On the other hand, it noted that structural reforms could have positive spillovers. “Near-term challenges aside, policymakers must act now to revitalize declining medium-term growth prospects,” the fund added. Trade growth forecast was also revised upwards by 0.1 percentage points for the two years. Trade growth is expected to pick up to 3.1 percent in 2024 and further to 3.4 percent in 2025, IMF pointed out. | null | null | 2024-07-16 19:10 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/us-retail-sales-unchanged-in-june-beating-forecasts-for-slight-drop-12770696.html | US retail sales unchanged in June, beating forecasts for slight drop | US retail sales unchanged in June, beating forecasts for slight drop.Related stories. | U.S. retail sales were unchanged in June and the underlying trend was strong, which could boost economic growth estimates for the second quarter. The flat reading in retail sales last month followed an upwardly revised 0.3% gain in May, the Commerce Department's Census Bureau said on Tuesday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, falling 0.3% after a previously reported 0.1% gain in May. Still, the outlook for sales is unfavorable. Households are becoming more price sensitive and focusing on basic needs, evident in earnings reports from major retailers and manufacturers. PepsiCo PEP.O CEO Ramon Laguarta said last week lower-income consumers were "stretched" and "strategizing a lot to make theirbudgets get to the end of the month." Most households have run down the excess savings accumulated during the COVID-19 pandemic and are carrying a lot of credit card debt, which is becoming more expensive as interest rates remain elevated. Wage growth is also moderating as the labor market cools. Nonetheless, the pace of consumer spending remains sufficient to keep the economic expansion on track. Retail sales excluding automobiles, gasoline, building materials and food services surged 0.9% last month after rising 0.4% in May. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. Growth estimates for the April-June quarter were around a 2% rate before the retail sales data. The economy grew at a 1.4% rate in the first quarter. | null | null | 2024-07-16 18:34 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/indian-bonds-in-demand-as-global-stock-investors-seek-collateral-12770626.html | Indian bonds in demand as global stock investors seek collateral | Indian bonds in demand as global stock investors seek collateral.Related stories. | India’s sovereign bond market is attracting foreign equity investors, who are using the securities as collateral for trade margin requirements. The inclusion of the nation’s government debt in JPMorgan Chase & Co.’s emerging- market bond index last month has enhanced their acceptance as collateral. This development is appealing to overseas investors, as they can now earn interest on their bond holdings, unlike with traditional cash or cash-equivalent margin postings. “These investors have bought front-end government securities with 1-2 year maturities,” said Vikas Jain, head of India fixed income, currencies and commodities trading at Bank of America Corp. “In this bucket, we’ve seen flows of $1.5 billion,” since the announcement of India’s inclusion in September, he said. A combination of high yield, a stable currency and the possibility of capital appreciation has created a new demand segment for Indian government securities. The nation’s sovereign debt has returned 5.7% so far in 2024, versus a 2% gain in Indonesian local currency bonds, according to data compiled by Bloomberg. “Better inflation data should allow the Reserve Bank of India to ease monetary policy while expectations for the upcomingbudgetare benign in terms of the fiscal deficit,” increasing the appeal of local bonds, said Rajeev De Mello, global asset portfolio manager at Gama Asset Management SA. Foreigners have ploughed Rs 97,800 crore ($11.7 billion) into index-eligible bonds since JPMorgan announced their inclusion last year. The South Asian nation, which has been a favorite pick among investors looking away from China, has attracted equity inflows of $2.6 billion so far this year, adding to net overseas investments of $21 billion in 2023. Overseas investors can use government securities, corporate bonds, cash, and triple-A rated foreign sovereign securities as collateral to meet their margin requirements for trades in both cash and equity derivatives segments, according to the securities regulator. | null | null | 2024-07-16 17:34 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/morgan-stanleys-q2-profit-jumps-as-investment-banking-recovers-12770603.html | Morgan Stanley's Q2 profit jumps as investment banking recovers | Morgan Stanley's Q2 profit jumps as investment banking recovers. | Morgan Stanley's profit rose in the second quarter as investment banking activity rebounded. Its net income rose to $3.1 billion, or $1.82 per share, in the three months ended June 30, the bank said on Tuesday. That compares with $2.2 billion, or $1.24 per share, a year earlier. An improving economic outlook, expectations of U.S. interest rate cuts and surging equity markets have spurred corporate executives to carry out buyouts, debt sales and stock offerings after a nearly two-year dry spell for Wall Street. Global investment banking revenues surged 17% in the first half to $41.6 billion, according to data from Dealogic. Morgan Stanley's investment banking revenue surged 51% to $1.62 billion in the second quarter. Rival Goldman Sachs on Monday reported a 17% increase in investment banking revenue. On Friday, JPMorgan Chase reported a 46% gain in investment banking revenue, while Citi's fees from investment banking jumped 60%. | null | null | 2024-07-16 17:13 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/how-much-the-federal-reserve-cuts-interest-rates-will-depend-on-housing-market-12770589.html | How much the Federal Reserve cuts interest rates will depend on housing market | The Fed now needs to support the labor market, and that means treating housing as an industry to boost rather than suppress..Related stories. | It’s been clear since the fall of 2022 that the housing market neededÂlower interest rates to fix many of its problems including a lack of affordability for buyers, the mortgage rate lock-in dynamic for homeowners, and reduced activity for companies ranging from Home Depot Inc and Lowe’s Cos to suppliers of building materials. But the Federal Reserve was more focused on containing inflation than helping the housing market. No more. Economic data over the past few months have shifted policymakers’ priorities, with investors expecting the first of several interest rate cuts in September. The Fed now needs to support the labor market, and that means treating housing as an industry to boost rather than suppress, and using its health to gauge whether monetary policy has been eased enough to hold the economy in balance. It’s not that the labor market is an immediate problem. What’s concerning is its direction. The unemployment rate has risen for three consecutive months — the first time that’s happened in eight years — and at 4.1% stands around the Fed's longer-term forecast. If it was likely to stay at 4.1%, the Fed could have confidence that the economy was in balance, but all signs point to a continuing deterioration — something Chair Jerome Powell doesn’t want to see. Worries about a recession in 2023 and sluggish demand this year have made businesses reluctant to add workers even as the labour force continues to grow. The goal of monetary policy should now be to change all this — lower interest rates will boost demand and, in turn, spur hiring, consumer confidence and spending. All this brings us back to the housing market, the most obvious place for lower borrowing costs to work their magic. Existing home sales are running at a rate that’s 25% below what should be considered normal; owners are sitting on record levels of home equity that they won’t access until rates are lower; and housing-related industries ranging from remodeling to furniture to freight have been in downturns since 2022. An increase in transactions would mean more work and commissions for real estate agents, loan officers and workers associated with moving. They would likely unlock home equity between mortgage refinancings and home sellers spending some of their capital gains, powering consumption. Furnishing sales are highly correlated with transactions, too, so we can expect demand to improve for home goods retailers, the factories that supply them and the railroads and trucking companies that transport goods. The key question is what level of the fed funds rate and mortgage rate would set this process in motion. One of the largest homebuilders in the US, Lennar Corp., said on its earnings call last month that mortgage rates of approximately 6.75% “felt constructive” in the prior quarter. Home loan rates a bit lower than that in January, around 6.6%, translated into a pickup in sales of previously owned homes the following month. But that’s generally a slow time of the year for housing so it didn’t give buyers much time to act. My guess is that a 6.5% mortgage rate,Âwhich we haven’t seen since May 2023, would be enough to get housing going again to some extent. Numerous factors will influence how Fed easing flows through to home loan rates, which track yields on 10-year Treasury bonds. With inflation fears contained and markets pricing in a couple of cuts this year, 10-year yields have fallen nearly a quarter of a percentage point since July 1. The 30-year mortgage rate dropped to 6.81%, the lowest since early February, from 7.14% at the start of the month, according to Mortgage News Daily. Even if 10-year yields don’t go much lower, there’s room for mortgage rates to fall below 6% if the spread between the two returns to levels seen through most of the 2000s and 2010s. The key will be watching how quickly Fed easing drives down mortgage rates and flows through to the economy and employment. If mortgage rates at 6.5% don’t revive housing transactions and the labour market, then the Fed will probably need to do more. Ultimately, policy easing should stabilize the labour market given how depressed rate-sensitive industries such as housing are right now. Still, we won’t know for sure how many cuts it will take until the process is underway. Credit: Bloomberg | null | null | 2024-07-16 16:58 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/adani-ihc-jv-acquires-cloud-platform-company-coredge-io-from-parserlabs-12770582.html | Adani-IHC JV acquires cloud platform company Coredge.io from Parserlabs | Via this agreement, Coredge.io, which offers AI and cloud services, will enable Sirius Digitech to provide Machine Learning as-a-Service..Related stories. | Sirius Digitech, a joint venture between Adani Group and International Holding Company, on July signed binding pacts to buy Coredge.io Private Limited, an AI and cloud platform company. As per the regulatory filing, Adani Group will buy 77.5 percent stake in Coredge's parent Parserlabs India. Parserlabs owns 100 percent of Coredge.io. The cost of acquisition will be Rs. 20,000 per equity share having face value of rupee 1 each. Via this agreement, Coredge.io, which offers AI and cloud services, will enable Sirius Digitech to provide Machine Learning as-a-Service. Coredge.io offers secure and compliant cloud services for AI applications safeguarding data sovereignty and supports clients across Japan, Singapore and India. It will will enable Sirius Digitech to provide Machine Learning as-a-Service “As nations increasingly prioritise data security, it is more important than ever that organisations have the option to retain their data within national borders rather than relying solely on the public cloud. Sovereign Data Centers become extremely important forprotecting sensitive information and maintaining national security, given the exponential growth in artificial intelligence-driven demand for computation and sovereign data stack,” said Jeet Adani, Director of Adani Group. “An additional benefit of this acquisition is our ability to put AI capabilities directly in the hands of organisations that require specialised sovereign cloud services for AI training and inferencing," he added. Ajay Bhatia, CEO of Sirius International Holding said, “This step underscores our commitment to offering a portfolio of secure, trusted and localised cloud AI technologies to our customers and partners." Further, Arif Khan, CEO of Coredge.io added, “Partnering with Sirius marks an exciting new chapter for our sovereign AI and cloud platform business, both in India and globally." Meanwhile, shares of Adani group's flagship companyAdani Enterprisesclosed marginally up at Rs 3,110 apiece on BSE on July 16 against its previous close. In a move to go with with AI, the Adani Group, led by Gautam Adani, had last year announced that it hasformed a joint venture with a unitof UAE’s International Holding Co. to explore artificial intelligence and other technologies, signaling deepening ties between the Indian conglomerate and its Middle-East backers. Adani Global Ltd. and IHC’s Sirius International Holding Ltd. will own 49 percent and 51 percent respectively in the Sirius Digitech International Ltd., which will be based in Abu Dhabi, as per the statement released in December 2023. Both partners will have an equal representation on the board of new entity which will also explore Internet of Things and blockchain besides AI, it had added. | null | null | 2024-07-16 16:34 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/rupee-rises-3-paise-to-close-at-83-58-against-us-dollar-12770576.html | Rupee rises 3 paise to close at 83.58 against US dollar | Rupee rises 3 paise to close at 83.58 against US dollar.Related stories. | The rupee consolidated in a narrow range and settled for the day 3 paise higher at 83.58 (provisional) against the US dollar on Tuesday, on firm domestic markets and sustained inflow of foreign capital. Forex traders said a decline in crude oil prices favoured the rupee, while a strong US dollar capped sharp gains. At the interbank foreign exchange market, the local unit opened at 83.59, and touched an intraday high of 83.53 and a low of 83.60 against the dollar during the trading session. It finally settled at 83.58 (provisional) against the American currency, registering a gain of 3 paise from its previous close. On Monday, the rupee depreciated 10 paise to 83.61 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading marginally higher by 0.11 per cent at 104.29. "The US dollar gained on positive US markets and a surge in US treasury yields on rising expectations that Donald Trump may be re-elected as the President of the United States in the upcoming elections in November," said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. Brent crude futures, the global oil benchmark, were trading 0.68 per cent lower at USD 84.27 per barrel. "We expect the rupee to trade with a slight negative bias on the strong US dollar and weak Asian currencies. However, a decline in crude oil prices and continued foreign inflows may support the rupee at lower levels," Choudhary said, adding that any intervention by the RBI may also support the local unit. In the domestic equity market, the 30-share BSE Sensex ended the day 51.69 points, or 0.06 per cent, higher at 80,716.55 points. The broader NSE Nifty settled 26.30 points, or 0.11 per cent, higher at 24,613.00 points. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth Rs 2,684.78 crore, according to exchange data. Meanwhile, India's merchandise exports in June increased 2.56 per cent to USD 35.2 billion despite global challenges, even as the trade deficit widened to USD 20.98 billion during the month. On the price front, wholesale inflation in the country surged to a 16-month high of 3.36 per cent in June on account of a rise in prices of food articles, especially vegetables and manufactured items. | null | null | 2024-07-16 16:29 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/vedanta-opens-qip-sets-floor-price-at-rs-461-26-per-share-12769844.html | Anil Agarwal's Vedanta seeks over a billion dollars through an upsized QIP issue | Oaktree, Deutsche, Union Bank to get repaid from Vedanta QIP proceeds.Related stories. | Anil Agarwal-controlled mining conglomerate Vedanta has upsized its Qualified Institutional Placement (QIP) to $1.02 billion, according toBloomberg News, offering 19.32 crore shares at a floor price of Rs 440 apiece. The floor price of the share placement represents a 4.23% discount to closing price of July 15. Vedanta’s shareholders had approved on June 21 the plan to raise up to Rs 8,500 crore through issuance of securities. This strategic move is part ofVedanta’s ongoing efforts to optimize its capital structure and enhance shareholder value, reinforcing the company’s commitment to financial growth and stability, the company added. Citi, JM Financial and Nuvama Wealth are the bankers appointed for the QIP issue, CNBC-TV18 reported on July 11. QIP is a method used by publicly traded companies in India to raise funds quickly by issuing shares or convertible securities to a select group of institutional investors such as mutual funds, venture capital funds, insurance companies, and foreign institutional investors. It is an alternative to more traditional forms of capital raising, such as Initial Public Offerings (IPOs) and Follow-on Public Offerings (FPOs). The move comes as Vedanta aims to reduce its standalone debt by $3 billion over the next three years.  Vedanta reported a reduction in net debt to Rs 56,338 crore as of March 31, down Rs 6,155 crore from the preceding three months. Last month, Vedanta subsidiary Finsider Internationalaccepted a proposalfrom one of its banks to sell 2.6 percent shareholding worth Rs 4,379.7 crore, in the mining conglomerate to a group of reputed institutional investors. On July 16, shares of Vedanta ended lower by 0.8 percent at around Rs 456 on the NSE. The stock has gained nearly 80 percent in the year so far. | null | null | 2024-07-16 16:27 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/revival-in-rural-economy-still-a-quarter-away-monsoon-inflation-budget-to-play-key-roles-experts-12770472.html | Revival in rural economy still a quarter away; monsoon, inflation, budget to play key roles: Experts | Monsoon and lower inflation key for pick up.Related stories. | India's rural economy will need another quarter to rebound, economists toldMoneycontrol, as they noted that the consumer goods growth seen in May was temporary. “The Q3 will be indicative of full revival, if at all,” said Madan Sabnavis, chief economist at Bank of Baroda. Consumer durables production, an indicator of rural demand, increased to 12.3 percent in May from 10 percent a month back, according to data released on July 12. But economists warn against reading too much into the data. “IIP only partly explains rural recovery. After rabi harvest and wedding season, there was an uptick. Also, price realisation was higher on several products,” Sabnavis said. AMoneycontrolanalysis shows that the durables growth in the first two months of the year was still trending below the pre-pandemic levels. In May, production was down 3 percent compared with same period in 2019, while the April production data was 6.5 percent below the 2019 period. “We can’t label this as a sustainable revival. Last year also, IIP showed some signs of revival, but then came back to 4-5 percent range,” said Paras Jasrai, senior analyst at India Ratings and Research. Monsoon, inflation andbudgetto play a role Experts indicate that monsoon and inflation will play a big role in deciding the course of rural recovery. “Inflation would moderate in the coming quarter owing to high base effect of last year, but food inflation needs to stay contained. More important, monsoon needs to be better (normal) with not much deviation in spatial spread—as was seen in the past few years—for a sustainable recovery,” Jasrai noted. Only 16 states in the country faced normal monsoon until July 15, with 12 facing deficient rainfall and eight facing excess or largely excess rain. India’s consumer inflation rose to 9.4 percent in June compared with 8.7 percent in the previous month, on the back of simmering prices of vegetables and pulses. Both onion and potato inflation trended above 50 percent. Pulses inflation has been in double digits for a year now. A high inflation erodes the purchasing power of consumers. Rural inflation has trended above urban inflation in 25 of the last 30 months. Experts contend that Budget is also likely to play a role in addressing rural demand. "Government emphasis on reviving consumption will also be watched in the upcoming budget, even as focus is more likely to sharpen on rural infrastructure rather than welfare spend," said Abhishek Upadhyay, senior economist at ICICI Securities Primary Dealership. Agriculture output had slipped to an eight-year low of 1.4 percent in FY24, compared with 4.7 percent in the previous fiscal. | null | null | 2024-07-16 14:54 |
moneycontrol.com | https://www.moneycontrol.com/news/india/defence-ministry-notifies-5th-indigenisation-list-with-346-components-for-dpsus-12770321.html | Defence ministry notifies 5th indigenisation list with 346 components for DPSUs | Items in the indigenization list can only be procured from the Indian Industry based on the timelines provided by the ministry.Related stories. | Union ministry of defence on July 16 issued its fifth indigenisation list consisting 346 items for the defence public sector undertakings (DPSUs), the ministry said in a statement. The list includes strategically-important line replacement units/systems/ sub-systems/assemblies/sub-assemblies/spares & components and raw materials, with import substitution value worth Rs 1,048 crore, according to the ministry. Items in the indigenization list can only be procured from the Indian Industry based on the timelines provided by the ministry. The items on the list will be undertaken by DPSUs for indigenization via various various routes including ŌĆśMakeŌĆÖ procedure or in-house development involving the industry, including MSMEs. ŌĆ£This will provide impetus to the growth in economy, enhanced investment in defence and lead to reduced import dependence. In addition, this will augment the design capabilities of domestic defence Industry due to the involvement of academia and research institutions,ŌĆØ the ministry said. Before this, four PILs with 4,666 items have been notified. Out of the total, 2,972 items with an import substitution value worth Rs 3,400 crore have been indigenized, the ministry informed. ŌĆ£Till June 2024, over 36,000 defence items were offered to the industry for indigenisation by the DPSUs and SHQs. Of them, more than 12,300 items have been indigenised in the last three years. As a result, the DPSUs have placed orders on domestic vendors to the tune of Rs 7,572 crore.ŌĆØ Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), BEML Limited, India Optel Limited (IOL), Mazagon Dock Shipbuilders Limited (MDL), Goa Shipyard Limited (GSL), Garden Reach Shipbuilders & Engineers Ltd (GRSE) and Hindustan Shipyard Limited (HSL) are the DPSUs involved in defence items of the fifth PIL. | null | null | 2024-07-16 13:07 |
moneycontrol.com | https://www.moneycontrol.com/news/business/69-ceos-say-govt-should-focus-on-tax-simplification-energy-reforms-under-modi-3-0-mc-survey-12769064.html | 69% CEOs say govt should focus on tax simplification, energy reforms under Modi 3.0: MC Survey | The Modi 3.0 is likely to continue with the transformational reforms with increased focus on capex and tax simplifications..Related stories. | The Modi 3.0 administration is likely to continue with transformational reforms, with an increased focus on capex, tax simplifications, revenue augmentation, governance and energy, 69 percent of CEOs said in the MC-Deloitte CEO Survey. The survey asked 78 CEOs across industries for their assessment of the reform agenda of the newly elected government. While a majority of the CEOs said that the government will continue its focus on capital expenditure and energy reforms, 14 percent said that the government may opt for more populist measures in terms of subsidies, cash transfers and welfare programmes, with reduced focus on capex and infrastructure spending. Do Not Miss |ÂBudget ki baat: Raamdeo Agarwal, Vijay Kedia and Samir Arora express their hopes and prayers Another 13 percent said that the pace of overall economic reforms is likely to slow down. In the Modi 3.0 administration, allies such as the Telugu Desam Party (TDP) and the Janata Dal-United (JD -U)) play significant roles. On being asked which reforms should be the government’s top priority to boost growth, 37 percent of CEOs said investment and trade reforms, higher exports and foreign investments should be the main focus. Another 24 percent of CEOs felt that simplification of the tax regime needs to be prioritised by the government while 15 percent said fiscal consolidation, with a focus on bringing down the fiscal deficit to 4.5 percent without compromising capex spending, is a top priority. Also Read |ÂMC-Deloitte CEO Survey: Simpler tax regimes, compliances to improve ease-of-doing-business in India Speculation is rife that the government is likely to provide income-tax (I-T) relief to the middle class in the upcomingbudgetto boost spending. The Centre had set a fiscal deficit target of 5.1 percent of the GDP in the interim budget, and the government intends to bring the fiscal deficit down to 4.5 percent of the GDP by FY26. As many as 14 percent of the CEOs said that the government is likely to focus on factor reforms, including land and labour to boost growth while only five percent said that privatisation of public sector enterprises and monetisation of public assets will be on priority. Do Not Miss |ÂMC-Deloitte CEO Survey: India Inc expects Modi govt to present blockbuster budget In 2020, India took a bold step in simplifying its complex labour laws by consolidating 44 statutes into four comprehensive labour codes. However, the anticipated benefits are yet to materialise due to the delay in implementing the rules. This delay not only hampers formal job creation but also obstructs equitable improvement in per-capita income, economic growth and expansion, experts have said. Only four percent of the CEOs said that the government may keep energy reforms with a focus on energy security as the top priority to boost growth. However, if the new government pursues highly populist policies, the businesses are likely to be affected negatively as it may affect fiscal discipline, leading to higher debt and weaker investment confidence, 32 percent of the CEOs said. On the other hand, 21 percent of the CEOs felt the populist policies may affect businesses positively, if these measures are directed towards health, education and skilling. As many as 17 percent of the CEOs said that if there are populist measures in support of small and mid-sized enterprises (SMEs) through grants, low-interest loans and subsidies, these enterprises will generate more jobs, and that will favour businesses positively. Businesses will benefit as the populist measures will increase rural incomes and spending, 14 percent of the CEOs said. Only 10 percent of the CEOs said that populist policies will impact businesses negatively as inflationary pressures could lead to the Reserve Bank of India (RBI) keeping its monetary policy stance tight. Another six percent of CEOs felt that the allocation towards capex spending (on infrastructure) might fall with the announcement of populist policies. | null | null | 2024-07-16 11:18 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/pc-jeweller-gets-indusind-banks-approval-for-one-time-settlement-of-outstanding-dues-12769900.html | PC Jeweller gets IndusInd Bank's approval for one-time settlement of outstanding dues | PC Jeweller's troubles began in February 2023, when banks decided to recall loans advanced to it after it was revealed in a filing that the company had defaulted on loans worth Rs 3,466 crore from banks and financial institutions.Related stories. | PC Jeweller informed stock exchanges on July 15 that it has received approval fromIndusInd Bankfor its One Time Settlement (OTS) proposal. It said IndusInd Bank conveyed its decision via a letter dated July 15. "The Company had opted for OTS to settle the outstanding dues. The terms and conditions of approved OTS include cash and equity component payable under settlement, release of securities and mortgaged properties etc,"PC Jewellersaid in an exchange filing. On July 7, PC Jeweller had also received approval from Punjab National Bank (PNB), one of the leading banks among the consortium lenders to PC Jewellers, for its OTS proposal. The relief follows more than three months after the State Bank of India (SBI), the country's largest lender,accepted the One Time Settlement (OTS) proposal submitted by the company. PC Jeweller's troubles began in February 2023, when banks decided to recall loans advanced to it after it was revealed in a filing that the company had defaulted on loans worth Rs 3,466 crore from banks and financial institutions. The company, in its annual report for fiscal 2021-22, stated that it had borrowed money from 14 banks, including SBI, Indian Bank, Union Bank and Punjab National Bank. In the annual report, the company said it owed the banks Rs 3,278 crore, which included the interest and the base amount. The largest lenders are SBI with Rs 1,060 crore outstanding, Union Bank of India with Rs 530 crore, Punjab National Bank with Rs 478 crore, and Indian Bank with Rs 226 crore. | null | null | 2024-07-15 23:03 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/zee-entertainment-receives-shareholder-approval-to-raise-rs-2000-crore-12769791.html | Zee Entertainment receives shareholder approval to raise Rs 2,000 crore | Shares of Zee on July 15 closed at 3.14 percent higher at Rs 160.38 apiece on BSE.. | Zee Entertainment Enterprises Limited (ZEEL) on July 15 said that it has got the approval of the shareholders of the company to raise Rs 2,000 crores from the market through various routes, including issuing equity shares and qualified institutions placements (QIPs). The remote e-voting period for this special resolution commenced on Sunday and ended on Monday, July 15, 2024, at 5 pm. In a regulatory filing, Zee said,"The remote e-voting process concluded today i.e., Monday, July 15, 2024, at 5:00 p.m. (IST),post which the Scrutinizer appointed for scrutiny of Postal Ballot process, Ms. Vinita Nair (Membership No. F10559), Senior Partner, M/s. Vinod Kothari & Co., Company Secretaries, has submitted her report on the results of the Postal Ballot. Based on the report of the Scrutinizer, we hereby inform you that the shareholders of the company have duly passed the resolution for issuance of securities for an amount not exceeding Rs2,000 crores with requisite majority." The special resolution for "issuance of securities for an amount not exceeding Rs 2,000 crore" was passed by 78.83 per cent of the total polled votes, according to a scrutiniser report filed by Zee. Zee had earlier announced that it would be considering fundraising on June 6 by way of issuance of equity shares and/or via private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods subject to such approvals as may be required. The fundraising approval comes after Sony scrapped its $10 billion mega merger earlier in January this year with Zee. Since then, the media company has announced a slew of measures to cut costs and reduce losses in its business, including cutting 15 percent of its workforce. It has announced a remodel of the company's leadership structure. Shares of Zee on July 15 closed at 3.14 percent higher at Rs 160.38 apiece on BSE. | null | null | 2024-07-15 22:59 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/world-youth-skills-day-how-is-india-placed-with-over-50-of-population-below-25-12769889.html | World Youth Skills Day: How is India placed with over 50% of population below 25? | According to the United Nations, the number of young people aged 15-24 globally comprises 1.2 billion individuals.Related stories. | Skilling has become a buzzword in todayŌĆÖs rapidly evolving world. Continuous upskilling is crucial for professionals to remain relevant in a dynamic job market. Instituted in 2014 by the United Nations General Assembly with the aim of equipping young people with skills for employment, entrepreneurship and decent work and celebrated on July 15 every year, this yearŌĆÖs theme is ŌĆśYouth Skills for Peace & DevelopmentŌĆÖ. According to the United Nations, the number of young people aged 15-24 globally comprises 1.2 billion individuals. This demographic is projected to rise to 1.3 billion by 2030, representing 16 percent of the world's population. India occupies a unique position, with over 50 percent of the total population below 25 years of age. However, recent data from the National Skill Development Corporation (NSDC) reveals skill gaps in high-demand sectors like IT, healthcare, manufacturing, agriculture, and renewable energy, underscoring a critical need to skill, up-skill, and right-skill the countryŌĆÖs youth. So, how are corporate houses looking to address this important issue? ŌĆ£At HDFC Bank, we believe that empowering our youth with the right skills is crucial for the socio-economic development of our nation. Our Parivartan training programmes are designed not only to provide vocational skills linked with market demands, but also to instil confidence and ambition in young minds. By collaborating with esteemed partners and focusing on sectors with high growth potential, we are committed to bridging the skills gap and creating a robust and inclusive workforce for the future. Our mission is to ensure that every young individual we reach has the opportunity to thrive and contribute to India's dynamic economy,ŌĆØ said Nusrat Pathan, Head of CSR at HDFC Bank. According to Vestige Marketing Pvt. Ltd, investing in young talent is key to driving innovation and growth and are dedicated to nurturing the next generation of leaders in the direct-selling industry. ŌĆ£A skilled youth population is the cornerstone of a thriving economy. By investing in their skill development, India can not only ensure a more employable and productive workforce but also lay the foundation for economic growth. In this aspect, the direct-selling sector plays a crucial role in empowering the youth of the country by creating avenues for financial independence. On World Youth Skill Day, Vestige Marketing reaffirms its commitment to empowering the youth with the skills and opportunities they need to build a brighter future. By taking the initiative to develop targeted training programs paired with the adoption of digital tools, direct-selling companies can unlock their full potential, paving the way for more sustainable development in the country,ŌĆØ said Gautam Bali, MD and Founder, Vestige Marketing Pvt. Ltd. McDonaldŌĆÖs India - North and East, too is actively engaging youngsters and is focusing on providing them with relevant upskilling opportunities. ŌĆ£We are committed to empowering youth through comprehensive training and skill development programmes. Our unwavering commitment has led us to dedicate approximately 90,000 hours annually to train our managers, raise the bar in the QSR industry. With approximately 80% of our workforce less than 24 years, we focus on equipping the youth with essential operational and soft skills to enable them grow to their potential. Additionally, our McDonald's for Youth programme offers employment and training opportunities to youth from less-privileged communities. We actively partner with NGOs to support their career aspirations and contribute to India's growth by fostering a skilled and inclusive workforce. We remain committed to nurturing young talent, ensuring they have the skills and opportunities to thrive,ŌĆØ said Rajeev Ranjan, Managing Director, McDonaldŌĆÖs India - North and East. | null | null | 2024-07-15 22:06 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/google-parent-alphabet-in-talks-to-buy-cybersecurity-startup-wiz-for-23-billion-12769851.html | Google parent Alphabet in talks to buy cybersecurity startup Wiz for $23 billion | Small figurines are seen in front of displayed Alphabet logo in this illustration.Related stories. | Google parent Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion, a person familiar with the matter said on Sunday, in a deal that would represent the technology giant's biggest acquisition ever. The deal, being funded mostly in cash, could come together soon, the source added, speaking on condition of anonymity. Wiz, founded in Israel and now headquartered in New York, is one of the fastest-growing software startups globally, providing cloud-based cybersecurity solutions with real-time threat detection and responses powered by artificial intelligence. If Alphabet moves ahead with the deal, it would be a rare example of a major technology company attempting a mega-deal amid heightened regulatory scrutiny of the sector under U.S. President Joe Biden's administration. In recent years, U.S. regulators have indicated growing aversion to large technology companies getting bigger through acquisitions. Wiz generated about $350 million in revenue in 2023 and works with 40% of Fortune 100 companies, according to its website. It recently raised $1 billion in a private funding round that valued the company at $12 billion. Alphabet and Wiz did not immediately respond to requests for comment. Wiz works with multiple cloud providers such as Microsoft and Amazon, and counts companies from Morgan Stanley to DocuSign among its customers. With 900 employees across the United States, Europe, Asia and Israel, Wiz previously said it planned to add 400 workers globally in 2024. Alphabet recently decided not to pursue a takeover of online marketing software company HubSpot. Dealmaking in the broader technology sector has experienced a pickup this year. In January, design software company Synopsys agreed to buy smaller rival Ansys for about $35 billion. Hewlett Packard Enterprise struck a deal in January to buy networking gear maker Juniper Networks for $14 billion. Technology accounted for the largest share of mergers and acquisitions during the first half of the year, jumping more than 42% year-on-year to $327.2 billion, according to data from Dealogic. The Wall Street Journal reported Alphabet's talks with Wiz earlier on Sunday. | null | null | 2024-07-15 21:25 |
moneycontrol.com | https://www.moneycontrol.com/news/economy/policy/india-implements-uniform-5-tax-for-all-aircraft-aircraft-engine-parts-12769823.html | India implements uniform 5% tax for all aircraft, aircraft engine parts | A model of the Airbus A220-300 aircraft is seen at a media event at Indira Gandhi International Airport in New Delhi. | India will tax all imports of aircraft components and aircraft engine parts at 5%, the civil aviation minister said on Monday, unifying the tax rate which earlier varied between 5% and 28%. The uniform rate, effective from Monday itself, was recommended by India's Goods and Services Tax (GST) Council in June and will apply to imports of "parts, components, testing equipment, tools and tool-kits of aircrafts". It was deemed necessary because of "challenges" created by varying tax rates and will be a boost for local maintenance, repair and overhaul (MRO) businesses, Civil Aviation Minister Kinijrapu Rammohan Naidu said, at a time when Indian airlines have placed record orders for jets. "This new policy eliminates... disparities, simplifies the tax structure, and fosters growth in the MRO sector," the minister said. India is among the fastest growing major aviation markets, with an aircraft fleet that is expected to increase from the current 700 to over 1,500 by 2030. | null | null | 2024-07-15 20:52 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/temaseks-ravi-lambah-on-manipal-hospitals-ipo-impact-of-hyundai-india-listing-on-mncs-and-ongoing-block-deal-frenzy-12769783.html | Temasek's Ravi Lambah on Manipal Hospitals IPO, impact of Hyundai India listing on MNCs and ongoing block deal frenzy | Ravi Lambah.Related stories. | Singapore investment giant Temasek, which holds a majority stake in Manipal Hospitals, may opt for the organic expansion route before it takes India's second-largest hospital chain by bed capacity public. That's the word coming in from the firm's India spearhead Ravi Lambah, who feels India's mouth-watering valuations are not the only factor which will nudge more global MNCs to follow Hyundai and list local operations. Lambah also weighs in on the ongoing block deal frenzy in India which has seen participation by multiple private equity funds and says there will still be players opting for the classical M&A route to get control premium. Edited excerpts: India’s stock market buoyancy has also led to several IPO aspirants and these are aspirants across a whole host of sectors which have accelerated their listing plants. It is not just Indian companies, but also big, global MNCs that are making a beeline towards India because of the better valuations/higher multiples, for example, Hyundai – the South Korean auto giant that filed recently for a $3-billion IPO – India's biggest ever. Do you think more global MNCs are likely to follow suit and start their IPO process in India, looking at Hyundai? Or do you think that they will wait and watch to see how the Hyundai listing fares later in the year? It's a good question. But I think if you go back in time, it's not a new phenomenon for us to see in India, where global entities have listed their subsidiaries here and they have actually done quite well. The multiples in India, several of them I see, you know, are much higher than what their parents are trading at. But I don't think that's the only decisive factor. Of course, listing a company in another jurisdiction requires you to do a different level of governance. You have to make sure you cover for the right governance, framework for related party transactions, intercompany transactions that always exists in a situation like this. And then there's of course, the question of if you are not happy with it being listed, can you then take it private again, which is not that easy to do in India. So there's a whole host of what I would call decision factors. Valuation is only one of them. Today, the valuations are higher. Tomorrow, they may not be for whatever reason. So in my view, I don't think that that's the way to drive the decision. I think the key question to ask is, what else does the IPO give you? Does it give you access to capital? Does it give you access to more talent? Can you grow a business more? Can it become more resilient if it's listed? Can it tackle challenges better? So all of those I think come into play? And if the answer to that is yes, then I think we will see more companies list in India. Sticking to the topic of IPOs, some of your portfolio companies in India have started taking baby steps towards an IPO, namely Dr. Agarwal, Molbio Diagnostics. Niva Bupa recently filed draft papers. There's a jewel in the crown right, which is Manipal Hospitals. That has bulked up quite a bit and has executed a few acquisitions over the past few years. When can we expect Temasek to explore the listing of Manipal Hospitals in India since you are a majority stakeholder? I think we will take Manipal public at the right time. I think there's good alignment with all the shareholders that the company can be listed. The decision-making is dependent upon a few things. One is the fact when we think it's ready, and there's a lot of work to be done still in terms of some of the greenfield and brownfield organic expansion that we're doing. Maybe there will be some areas where we're going to consolidate. We have recently consolidated the Medica Synergy business in West Bengal that has recently been acquired by Manipal. So there is work to be done. And then once we think we are kind of done with some of that, our sort of current framework for what needs to be completed, then we will explore this thing. But yes, this company – it will be listed. The reason I am asking this question is because whenever it does list, perhaps it could be Asia's biggest hospital IPO, right? Because there's a lot of value there. You also came in at a premium. One quick question again on Manipal – so can we expect more M&A? Or will it be organic growth and then the IPO happening? Will you bulk up the portfolio even more? Because there are a lot of hospital assets that are up for grabs. I think we will evaluate everything that's out there and then we take the decision on buy or build. And sometimes build makes more sense, especially when you have scale. And buy only makes sense if there's something really special that adds to the portfolio. Manipal hospital now is already, I would say in the top one or two hospitals by beds. So the scale is there. Now is the question of augmenting the business and making it more valuable business. So we will look at these deals one by one. So no timeline as such? No, because there's no reason to have a timeline. We have long-term capital. Our partners are also long term in that nature. They've just come in with us, some of the new ones. So there's a no rush. So the IPO, actually, to me, if I stepped back, the IPO is only one event in the company's timeline. There's a long journey after that. So we have to time the IPO well. Alright. Let's shift focus to the block deal frenzy. I think a few months back, you exited PB FinTech (the parent of Policybazaar) with a block deal around Rs 4,200 crore. You also participated in the block for Cartrade. Some of your other peers in the past year have also struck big block deals, and these are $800 million to $1 billion block deals, exiting it. So that has now become a trend of sorts where there are PE's looking at striking block deals back-to-back and then completely exiting the company. Do you think this wave of block deals has perhaps dampened the classical old M&A auction route as more and more people seem to be opting for it? Interesting analysis. I will look at it a little differently. I will say the capital markets in India have matured significantly, and they continue to mature. So India is now the fifth largest market by capitalization globally. And what does that mean? To me, that means that there are larger companies listed, larger market cap, better average volumes, and the ability to go in and out is much easier in large numbers, which wasn't there if you go back 5-10 years. So that effectively gives you the flexibility to do what you just outlined. But I don't think it takes away the fact that you will do things on the M&A or the private side as well. It comes down to what is the opportunity you're seeking? So I think to your good question, if I want to sell a billion dollars of stock, and if I can do it on a date in the public markets when the company is listed and I included a small effect discount, it's a no brainer. If I want to get a premium to what I'm trading to what I want to get, and I'm selling control, then M&A makes more sense because then someone will pay me a premium for control. I will not get that premium in the public market. So I think it comes down to what kind of deal type, timing and what is the aspiration for value. | null | null | 2024-07-15 19:48 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/burberry-replaces-ceo-jonathan-akeroyd-after-disappointing-results-12769740.html | Burberry replaces CEO Jonathan Akeroyd after 'disappointing' results | Branding for a fashion retailer Burberry is pictured outside a store in west London.Related stories. | British fashion label Burberry on Monday announced the immediate departure of chief executive Jonathan Akeroyd as it posted "disappointing" results with the luxury sector pressured by weak Chinese demand. Akeroyd, 57, departs after less than two and a half years at the helm, while the Briton is being replaced by Joshua Schulman, a former CEO at American fashion brands Michael Kors and Coach. In a statement, Burberry chair Gerry Murphy described US national Schulman, 52, as "a proven leader with an outstanding record of building global luxury brands and driving profitable growth". Schulman, who officially joins the group on Wednesday, said he looked "forward to working alongside (creative director) Daniel Lee and the talented teams to drive global growth, delight our customers, and write the next chapter of the Burberry story". In a separate statement, Murphy said the group's recent "performance is disappointing". Revenue slid 22 percent to £458 million ($595 million) in Burberry's first quarter, or three months to the end of June. The 168-year-old label -- famous for its trench coats and trademark red, camel and black check design -- announced plans to cut costs, which involve suspending dividend payments. Murphy warned that the group risked an operating loss in its first half. - Shares slump - Burberry's share price slumped 14.5 percent to £7.57 following the announcements, making it by far the largest faller on London's top-tier FTSE 100 index, which was flat overall in morning trade. "Burberry grabbed the headlines in company news, bringing forward its first quarter update amid some developments which came as a shock," noted Richard Hunter, head of markets at Interactive Investor. "The level of the group's appeal has been thwarted by weakening consumer demand, especially in the likes of China." Burberry's share price is down 46 percent since the start of the year. Highlighting troubles across the luxury fashion sector, Gucci owner Kering in April issued a profit warning, citing a weak Chinese economy. China on Monday posted lower-than-expected growth of 4.7 percent in the second quarter. That represented the slowest rate of expansion since early 2023, when China was emerging from a crippling zero-Covid policy that strangled growth. Retail sales -- a key gauge of consumption -- rose just two percent in June, down from 3.7 percent growth in May. "Chinese sales can no longer be taken for granted" for the likes of Burberry, Chris Beauchamp, chief market analyst at online trading platform IG, said Monday. | null | null | 2024-07-15 18:33 |
moneycontrol.com | https://www.moneycontrol.com/news/business/hindalco-to-sell-land-parcel-in-maharashtra-to-birla-estates-subsidiary-ekamaya-properties-for-rs-595-crore-12769414.html | Hindalco to sell land parcel in Maharashtra to Birla Estates' unit for Rs 595 cr | The transaction is subject to signing of definitive documents, completion of customary closing conditions and receipt of regulatory approvals, the filing said.. | Hindalco Industries agreed to sell its land parcel in Maharashtra's Kalwa to Ekamaya Properties Pvt Ltd, which is a wholly-owned subsidiary of Birla Estates Pvt Ltd for Rs 595 crore, the former said in a statement on July 15. Last year in July, the company had announced that the board of directors had given its approval for the proposed sale of a land parcel situated in Kalwa to Birla Estates Private Ltd. "... The aforesaid transaction shall now be entered into with Ekamaya Properties Pvt Ltd, a wholly-owned subsidiary of Birla Estates Pvt Ltd (instead of Birla Estates Pvt Ltd)," Hindalco Industries said in a regulatory filing. The transaction is subject to signing of definitive documents, completion of customary closing conditions and receipt of regulatory approvals, the filing said. Hindalco Industries operates across the value chain, from bauxite mining, alumina refining, coal mining, captive power plants and aluminium smelting to downstream rolling, extrusions, and foils. Along with its subsidiary Novelis, Hindalco Industries is the global leader in flat-rolled products and the world's largest recycler of aluminium. With inputs from PTI | null | null | 2024-07-15 18:24 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/wholesale-inflation-rises-to-3-4-in-june-12769158.html | Wholesale inflation rises to 16-month high of 3.4% in June | wholesale inflation rises in June.Related stories. | Wholesale inflation rose to a 16-month high of 3.4 percent in June as against 2.6 percent in the previous month, as food and manufactured products inflation rose further, according to data released by the government on July 15. "The jump in the WPI inflation to 3.4% in June 2024 was broad-based, and along expected lines, displaying the third consecutive month of a sizeable sequential step up," said Aditi Nayar, chief economist, Icra. Sequentially, wholesale prices were up 0.4 percent from May, as food index rose 2.5 percent and manufactured products rose 0.14 percent over the previous month. Wholesale food inflation was up 8.7 percent compared with 7.4 percent in the previous month—a 20-month high. "Fuel and power component of the wholes sale price index accounting for 13.15% weight after remaining in deflation for twelve consecutive month turned into inflation in May 2024 and came in at 1.03% in June 2024," said Ind-Ra economists Sunil K Sinha and Paras Jasrai. Rising prices of food had contributed to wholesale inflation in the May, as manufactured products had returned to inflation for the first time since February 2023. Manufactured product, which account for nearly two-thirds weight in the index witnessed 1.43 percent inflation compared with 0.8 percent in May. "It is really the food inflation that we have seen in the CPI too that is being a major driver, with vegetable prices being up significantly. The other side to it is that we are also seeing manufacturing prices inching up and that will be a strain on corporate margins," said Sujan Hajra, chief economist,  Anand Rathi Shares and Stock Brokers. Cereals, pulses and vegetables drive inflation Six of the 10 major food categories experienced double digit inflation in June, with onions and potatoes leading the charge. Potato inflation increased to 66.4 percent in June compared with 64.1 percent in the previous month, onion inflation was up 93.4 percent from 58.1 percent in May. Pulses inflation remained high at 21.6 percent, while paddy rose to 12.1 percent from 11.8 percent earlier. A galloping food inflation contributed to consumer inflation rising above 5 percent after a gap of four months, according to data released on July 12. Food inflation had risen to 9.4 percent from 8.6 percent earlier, with vegetable and pulses inflation both in double digits. Retail inflation of potatoes and onions was 50 percent. A high inflation and better industrial production is unlikely to deter the central bank to move on policy rate. Experts noted that the central bank is likely to keep the policy rate on hold at 6.5 percent for the ninth consecutive time at its meeting in August. Some have also pushed their expectations of a rate cut to December, indicating that even an October will be heavily dependent on progress of monsoons. Future outlook Experts contend that July is likely to experience easing of pressures again, as favourable base and easing global commodity prices keep wholesale inflation contained. Icra expects wholesale inflation to dip to 2 percent in July. "After rising to seven-month high levels in May 2024, global commodity prices have seen a continuous dip. The Bloomberg commodity price index has eased by 0.9 percent sequentially... in YoY terms, the index contracted by 3.4 percent in July 2024 (up to July 12, 2024)... This augurs well for the WPI inflation print in the month (July)," said Nayar. For the year, WPI inflation is expected to inch higher. "The outlook for food inflation has brightened due to anticipations of a normal monsoon, which is expected to bolster agricultural production. However, monitoring the monsoon's temporal and spatial distribution is critical. WPI inflation is expected to trend upwards as favourable base wanes and is estimated to average around 3% in FY25," Rajani Sinha, chief economist, CareEdge added. Wholesale price index was in deflation in FY24 at -0.7 percent. | null | null | 2024-07-15 18:12 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/goldman-sachs-q2-profit-jumps-on-robust-debt-underwriting-fixed-income-trading-12769726.html | Goldman Sachs Q2 profit jumps on robust debt underwriting, fixed-income trading | Earnings were $3.04 billion, or $8.62 per share, for the three months ended June 30, compared with $1.22 billion, or $3.08 per share, a year earlier, the bank said.Related stories. | Goldman Sachs' profit more than doubled in the second quarter, bolstered by debt underwriting and fixed-income trading, but results slipped from a bumper first quarter when the Wall Street giant reported its highest earnings since 2021. The resilience of the U.S. economy has given corporate executives the confidence to pursue acquisitions, debt sales and stock offerings."We are pleased with our solid second quarter results and our overall performance in the first half of the year, reflecting strong year-on-year growth in both Global Banking & Markets and Asset & Wealth Management," CEO David Solomon said in a statement. Earnings were $3.04 billion, or $8.62 per share, for the three months ended June 30, compared with $1.22 billion, or $3.08 per share, a year earlier, the bank said on Monday. Profit in the year-ago quarter was also hit by writedowns related to GreenSky, its former fintech business that Goldman has since sold.Investment banking fees rose 21% to $1.73 billion in the quarter. Fees earned from advising on mergers and acquisitions (M&As) jumped 7%, while debt and stock underwriting climbed 39% and 25%, respectively. Revenue from fixed income, currency and commodities (FICC) trading rose 17%, boosted by FICC financing, which makes loans to institutional investors and others. Equities trading revenue increased 7%. JPMorgan ChaseJPM.N and Jefferies Financial also recorded a strong performance in their investment banking divisions. Global investment banking revenue climbed 17% to $41.6 billion in the first half of the year, Dealogic data showed. After a foray into consumer banking flopped, Goldman has refocused on its traditional mainstays - investment banking and trading.Investors have supported the move, pushing the Wall Street titan's stock up 24.4% so far this year, compared with rivals Morgan Stanley's MS.N 11.6% gain and JPMorgan Chase's JPM.N 20.5% climb.Shares were last marginally down in volatile premarket trading. The asset and wealth management unit, which manages money on behalf of wealthy and institutional clients, reported 27% higher revenue in the second quarter. The bank oversees $2.93 trillion of assets. In May, it signed a deal to manage the $43.4 billion pension fund portfolio of parcel delivery giant UPS Platform solutions, the unit that houses some of Goldman's consumer operations, reported 2% higher revenue. The bank's provisions for credit losses were $282 million for the second quarter, compared with $615 million a year earlier. CREDIT CARDSGoldman Sachs took a $58 million charge on the General Motors GM.N credit card business in the second quarter as it prepares to exit the partnership. Goldman had decided to sell the GM card loan portfolio last year. GM is in talks to replace Goldman with Barclays, a source familiar with the matter told Reuters in April.A similar partnership Goldman has with tech giant Apple AAPL.O is facing an uncertain future. Credit cards were an important facet of Goldman's consumer strategy, but it decided to retreat from retail banking after big losses. In its annual stress test, the Federal Reserve indicated credit cards could be a headache for banks. The potential losses on Goldman's credit card loans were among the worst under the central bank's hypothetical scenario. Still, Goldman raised its quarterly dividend to $3 per share versus $2.75 earlier. | null | null | 2024-07-15 18:02 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/inflation-hurt-poorer-states-more-than-rich-ones-post-pandemic-12769705.html | Inflation hurt poorer states more than rich ones post pandemic | India's inflation hurt poorer states more.Related stories. | India’s poorer states have borne the brunt of inflation more than richer ones post pandemic, according to aMoneycontrolanalysis. At 5.9 percent, average inflation in the five poorest states in the country—Bihar, Uttar Pradesh, Assam, Madhya Pradesh and Jharkhand— between January 2022 and June 2024 was higher than the five richest states in per capita terms. Telangana, Delhi, Haryana, Karnataka and Tamil Nadu, which count as richest large economies of India, had a lower inflation of 5.78 percent during this period. This marks a complete reversal from years leading up to the pandemic when poorer states had lower inflation levels than rich ones. AMoneycontrolanalysis shows that inflation has galloped faster for poorer states compared with the rich. The rich states had a higher inflation rate at 4.02 percent compared with 3.92 percent for poor ones in the three years leading up to the pandemic (January 2017-March 2020). While inflation increased 1.76 percentage points for the top five states between pre-pandemic and post-pandemic period, the increase was 2 percentage points for rural areas. One significant reason for this switch is rural inflation outpacing urban in the post-pandemic period, especially due to higher food prices. Rural inflation has been higher than urban inflation in 25 of the last 30 months, with the gap between the two increasing. Rural inflation was 1.2 percentage points higher than urban inflation in the first quarter of FY25 compared with 0.8 percentage points in the previous quarter (Q4FY24) and 0.5 percentage points two years ago. Food inflation has clocked over 6 percent increase in 21 of the last 30 months until June. In June, food inflation had increased to 9.4 percent from 8.7 percent in the previous month, which led to overall inflation crossing the 5 percent mark. Food has a higher 47.3 percent weight in the rural basket, compared with 29.6 percent in the urban areas. | null | null | 2024-07-15 17:44 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/apple-is-top-pick-at-morgan-stanley-as-ai-seen-driving-iphone-ipad-upgrades-12769657.html | Apple is top pick at Morgan Stanley as AI seen driving iPhone, iPad upgrades | The highest price target for Apple shares comes from Loop Capital, which on Monday raised the stock to buy from hold and boosted its objective to $300 from $170.Related stories. | Apple Inc. was named a top pick at Morgan Stanley, with the broker seeing the launch of the tech giant’s artificial intelligence platform triggering a record rush among users to upgrade their smartphones, tablets and computers.Analyst Erik Woodring boosted his price target on the tech giant’s shares to $273, the third-highest among analysts tracked by Bloomberg, saying Apple Intelligence has potential to drive a record number of device upgrades. The feature is a “clear catalyst” for a multi-year upgrade cycle, he wrote in a note Monday. The highest price target for Apple shares comes from Loop Capital, which on Monday raised the stock to buy from hold and boosted its objective to $300 from $170. Morgan Stanley’s Woodring forecasts Apple will ship almost 500 million iPhones over the next two years — higher than the record cycle in 2021-2022. Apple unveiled its suite of AI services in June at its Worldwide Developers Conference, with Senior Vice President Craig Federighi describing it as “AI for the rest of us.” Shares hit their first record high of the year following the reveal. Shares in Apple rose 1.9% to $234.90 at 7 a.m. New York time in premarket trading. Through Friday’s close, the shares have risen 17% since the company unveiled Apple Intelligence, outpacing the Nasdaq 100 Index’s 7% gain over the same period. “We believe that there is record level of pent-up demand entering the iPhone 16 cycle later this year,” wrote Woodring, who has an overweight rating on the stock. “Coming out of WWDC — where Apple debuted Apple Intelligence — we have even greater conviction that FY25 could be the start of a multi-year device refresh cycle.” Apple Intelligence will “deliver much improved, and unique-to-the-Apple-ecosystem utility value” for more than 1.3 billion users, Woodring said, adding that it will force device upgrades and accelerate product replacement cycles — a key catalyst that has historically driven Apple stock outperformance. Only 15% Apple’s total installed user base will be able to support Apple Intelligence because the technology will be limited to devices using A17 Pro and M-Series chips, Woodring said. While a majority of Mac users will be able to use it, just 8% of current iPhone and iPad users will be able to power the AI platform. Under the analyst’s estimates, more than 1.2 billion iPhones, iPads and Macs will need to be upgraded. Initial adoption of Apple Intelligence will be limited to US English iPhone users when it launches this fall. Still, Woodring sees factors such as the broadening of non-English functionality adding even more value to users over the next 12 to 24 months. In Woodring’s view, it sets Apple up for a return to year-over-year unit growth in FY2025, followed by a potential for a major cycle in FY2026. Apple’s annual sales in India hit a record of nearly $8 billion, Bloomberg News reported Monday, underscoring a rapidly growing market where the iPhone maker now assembles more of its devices and operates two flagship stores. | null | null | 2024-07-15 16:58 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/lupin-divests-womens-health-specialty-business-in-us-to-evofem-for-84-million-12769646.html | Lupin divests women’s health specialty business in US to Evofem for $84 million | Lupin’s US commercial women’s health specialty business is primarily focused on commercializing SOLOSEC (secnidazole) 2g oral granules, which is an FDA-approved single-dose antimicrobial agent that provides a complete course of therapy for the treatment of bacterial vaginosis (BV) and trichomoniasis, two common sexual health infections, according to the filing..Related stories. | Lupin Limitedon July 15 announced the divestment of its US commercial women’s health specialty business to Evofem Biosciences, a biopharmaceutical company based in the United States, which focuses exclusively on women’s health, the former said in an exchange filing. Under the deal, Lupin can get a potential total consideration of up to $84 million based on future contingent milestones, the company said. Fabrice Egros, president, global corporate development, Lupin said, “We are very pleased to divest our US commercial women’s health specialty business, including SOLOSEC, to Evofem. This divestment is another step in aligning our US specialty business with our strategic plan to build our specialty business in therapeutic areas where we have building blocks of synergy. These include respiratory and neurological diseases.” Shares of the global pharma major closed 1.69 percent higher at Rs 1,828.05 on NSE. Lupin’s US commercial women’s health specialty business is primarily focused on commercialising SOLOSEC (secnidazole) 2g oral granules, which is an FDA-approved single-dose antimicrobial agent that provides a complete course of therapy for the treatment of bacterial vaginosis (BV) and trichomoniasis, two common sexual health infections, according to the filing. “The acquisition of this commercial business aligns with and advances our mission to improve access to innovative and differentiated options that impact women’s daily lives. SOLOSEC is a commercially attractive, single-dose oral antibiotic that addresses two pervasive sexual health infections. We can now fully leverage our commercial infrastructure, maximize our strong physician relationships, and re-launch an asset with tremendous growth potential,” said Saundra Pelletier, chief executive officer, Evofem. | null | null | 2024-07-15 16:57 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/indias-merchandise-trade-deficit-narrows-to-20-98-billion-in-june-12769279.html | India's merchandise trade deficit narrows to $20.98 billion in June | The commerce ministry revealed India's trade deficit figure for June on July 15.Related stories. | India's merchandise trade deficit narrowed to $20.98 billion in June as against $23.78 billion a month back, thanks to a larger fall in imports, the Commerce Ministry said on July 15. While exports fell 7.7 percent from May to $35.20 billion in June, imports declined at a faster clip of 9.25 percent to $56.18 billion. On a year-on-year basis, goods exports rose 2.6 percent in June, while imports were up by nearly 5 percent. As a result, the goods trade gap was wider last month versus in June 2023 at $19.19 billion. Commerce Secretary Sunil Barthwal said on July 15 that the government is focusing on sectors such as engineering goods, electronics, pharmaceuticals, and textiles in a bid to drastically improve India's export market share. "As predicted, if inflation goes down globally and growth sustains across the world then trade should hold up as well," Barthwal added. Major drivers of merchandise exports growth in June 2024 included engineering goods, electronic goods, drugs and pharmaceuticals, coffee, and organic and inorganic chemicals. Outbound shipments of engineering goods increased by 10.3 percent on-year to $9.4 billion in June 2024, and electronic goods exports rose by 16.9 percent to $2.82 billion. Commenting on the data, EEPC India Chairman Arun Kumar Garodia said, "The positive growth in exports for the second consecutive month is quite encouraging and hopefully the performance will continue despite several challenges engineering exports are facing. Among the major headwinds the industry is facing are high freight rates, protectionist measures from major export partners, and muted demand in some key markets.” India’s total exports (merchandise and services combined) for June 2024 is estimated at $65.47 billion, registering a growth of 5.40 percent versus June 2023, while overall imports were at $73.47 billion, up 6.29 percent on-year. Out of this, the estimated value of services export for June 2024 stood at $30.27 billion as compared to $27.79 billion in June 2023, while services imports for last month is $17.29 billion versus $15.61 billion on-year. During the first quarter of FY24, India’s total exports during April-June 2024 is estimated at $200.33 billion, registering a growth of 8.6 percent, while overall imports is expected to be $222.89 billion, up 8.5 percent. | null | null | 2024-07-15 16:49 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/as-iconic-cities-tackle-overtourism-with-travel-restrictions-it-is-time-for-india-to-step-up-12769461.html | As iconic cities tackle overtourism with travel restrictions, it is time for India to step up | Vijay Vilas Palace of Mandvi, Gujarat. (Photo: Gujarat Tourism).Related stories. | In Barcelona, local residents have been protesting against overtourism by spraying tourists with water. Similar protests have been staged in other parts of Spain, such as Malaga and the Canary Islands. Protests have sprung up in Sicily, Italy; Santorini, Greece; Dubrovnik, Croatia; and Bali, Indonesia. The authorities have levied taxes on tourists to disincentivize the hordes of visitors to Venice and Mount Fuji in Japan. New York, Paris, Vienna, Rome, Amsterdam, Penang, and Hawaii have imposed restrictions on Airbnb and similar short-stay arrangements outside hotels, jacking up the cost of short-duration stay. This is, in part, to protect the local hotel industry from competition, and, in part, to reduce the number of tourists descending on these towns and making rentals more expensive for local residents. Opportunity for India to Make Tourism Gains As many parts of the world turn their back on tourists and tourism, an opportunity opens up in India to embrace more tourists, tens of millions more of them, and generate diverse kinds of jobs in India in providing accommodation and food, in producing and selling things that tourists buy, in ferrying tourists around the country, in orgainising their visits to tourist attractions. India gets around 18 million tourists to traipse across its vast expanse of nearly 3.3 million sq km, and interact with its 1.4 billion people. In contrast, Croatia, with a population as large as that of a minor suburb of Delhi or Mumbai, and an area that is less than 2 per cent of India’s, gets more than 21 million visitors (visitor numbers fromIndex Mundi). Even Saudi Arabia ranks higher than India in terms of visitor arrivals, thanks to the pilgrimage of Haj. India ranks 14th in the world in terms of tourist numbers. France, the world leader in attracting tourists, gets 117 million visitors, six and a half times as many as those who come to India. Clearly, India can do a whole lot more to attract a whole lot more tourists. Countries that beat India hollow in attracting tourists range, in size, from small towns in India to one of its 38 states and Union Territories. Whatever any country has to offer — balmy, palm-fringed beaches, ancient monuments and the visible spoor of history’s march over millennia, culinary delights, magnificent mountains, starry horizons encircling vast stretches of sand and emptiness, milling crowds and mind-numbing traffic, anthropological diversity, varied fauna and flora inside sanctuaries and outside them, sacred rivers, profane parrots, godmen and tourist-friendly but largely harmless impostors, yoga and ayurveda, dance, drama, dance-drama, and other, stylized classical performing arts, music -- classical, folk, filmy and fusion -- symbolic representations of the entirety of human theological conception, ranging from blood-thirsty deities, human organs of fertility and animal representations. to formless abstraction — India has something better. Challenges for India The challenge is twofold: external marketing, and internal capacity building. The primary capacity to build is respect: women should be spared ogling, not just molestation. The colonial ideology that taught Indians to see Europeans as the master race and the rest as inferior beings must be eradicated. Without such cultural change, all other tourism promotion would be futile. India’s existing tourist sites are groaning under the weight of domestic tourists and the few foreign ones that do make it to India. A village local government in Goa is already bridling at any additional influx of tourists. But India has vast untapped potential, to build new hill stations and roads leading up to them, in an environmentally sustainable fashion; to locate and spruce up thousands of items hiding in obscurity on the Archaeological Survey of India’s list of assets, while signposting their significance and creating high-quality audio-guides that suffice to inform the visitor; to develop new coastal and riverside facilities that should have come up long ago; to organize fairs and festivals spread across the year and India’s geography, to showcase arts and artistes; to institute food hygiene across the board; to educate resident Indians to treat tourists as they would treat visiting friends, instead of fawning on them, deriding their customs and clothes or preying on them; to accord the safety and security of visitors and residents the highest priority. Need to Upgrade Tourism Marketing Plans The Taj Mahal, the palaces and camel rides of Rajasthan, the backwaters of God’s own country — these form Indian tourism’s marketing mainstays. This is limiting and wholly devoid of imagination. India must present itself to the world as an ancient civilization that celebrates its past while developing and enjoying its diversity of culture and racing to the frontiers of new human achievement. Every facet of its past, present and aspirations for the future hold out fascinating appeal to people elsewhere. Descendants of colonial soldiers and officials, who want to experience the sites of their forebears’ dashing adventures, or visit the places where they were buried or memorialized, should not have to ask ChatGPT to chart an itinerary for them — tourist information should lend itself to such exploration. Temples of South India and Orissa are not just centres of Hindu piety but also architectural marvels that should be presented as such. The sculpted glories of Khajuraho and Konark, the churches of Kerala, with its Christian traditions that precede Rome’s, and liturgies in Levantine languages of Biblical times, the physical remains of the Budha’s lineage, the seventh century mosque in Kerala, the Hindu icons that served as the original inspiration for the idols preserved in Jakarta’s museum of national history — there is much in India that can draw in visitors of different persuasion. Iberian visitors could savour Pork Vindalo in Goa, Dutchmen could marvel at the Dutch Fort at Kochi, archaeology buffs could visit Indus Valley sites in Gujarat and Haryana,ÂEconomist podcasters who describe South Indian languages as dialects could learn about the classical lineage of Tamil, and the wondrous capacity of ancient Tamil hinterland to simultaneously nurture scholarship in and through two classical languages, Tamil and Sanskrit. Aficionados of martial arts from around the world could see Kalarippayattu. Music lovers can explore India’s systems of classical music, and diversity of musical instruments. Philologists, folkorists, linguists and practitioners of semiotics can expand their intellectual horizons just by travelling across India, provided they are presented with popular, and easily accessible presentations of India’s linguistic heritage, including the world’s oldest collection of tales in Paisachi, the fore-runner of contemporary Bengali, India’s two great epics, and their translations and elaborations in different languages in different parts of the country. Visitors from central Asia would be delighted to see the region’s architectural styles and building materials find true grandeur in India, and their cuisine evolve and absorb spices blended in novel ways to delight the palate unimagined back home. The short point is that India’s tourism can be imagined around many different themes appealing differently to different audiences, and marketed accordingly. Tourism is the world’s largest employer. It can generate employment for a lot of people in India, in very many different sectors, with the right set of policies to prepare the domestic population to receive tourists, and to promote India as a destination in different markets. | null | null | 2024-07-15 16:14 |
moneycontrol.com | https://www.moneycontrol.com/news/business/earnings/hdfc-amcs-q1-net-profit-jumps-26-to-rs-604-crore-stock-up-1-5-12769540.html | HDFC AMC’s Q1 net profit jumps 26% to Rs 604 crore, stock up 1.5% | The shares of the company rose almost 2 percent following the announcement of earnings, before paring some gains. The stock was trading at Rs 4,230.45, higher by 1.48 percent.. | HDFC Asset Management Company Limited on July 15 reported a 26.4 percent jump in net profit at Rs 603.76 crore against Rs 477.41 crore in the same period of last year, the company said in an exchange filing. In the quarter ended March 31,HDFC AMChad reported a net profit of Rs 540.84 crore, according to the filing. The firm’s revenue from operations came in at Rs 775.24 crore, posting a 34.9 percent growth over Rs 574.54 crore reported in the year-ago period. In the last quarter of the previous financial year, the revenue stood at Rs 695.43 crore, the exchange filing said. The shares of the company rose almost two percent following the announcement of earnings, before paring some gains. The stock was trading at Rs 4,230.45 on the NSE, higher by 1.48 percent. | null | null | 2024-07-15 15:00 |
moneycontrol.com | https://www.moneycontrol.com/news/business/zomato-hikes-platform-fee-in-select-cities-12769520.html | Zomato hikes platform fee in select cities | Zomato hikes platform fee in select cities. | Food-delivery firm Zomato has hiked the platform fee to Rs 6 from Rs 5 per order in Delhi, Mumbai and Bengaluru. Its rival Swiggy, which had also increased the platform fee in select cities on Sunday, reverted to charging Rs 5 per order on Monday in Delhi, Mumbai and Bengaluru, as shown on its app. When contacted to ascertain the reasons for the hike, both Zomato and Swiggy declined to comment. The two companies had introduced platform fees last year, initially at Rs 2 per order, which has been increased gradually. Platform fee is treated as one of the ways in which food-delivery platforms are trying to increase their profitability, with a duopoly in place as Zomato and Swiggy are the key players in the segment. | null | null | 2024-07-15 14:38 |
moneycontrol.com | https://www.moneycontrol.com/news/business/earnings/bank-of-maharashtras-q1-net-profit-jumps-47-to-rs-rs-1293-5-cr-stock-up-6-12769456.html | Bank of Maharashtra's Q1 net profit jumps 47% to Rs Rs 1,293.5 cr; stock up 6% | The bank's asset quality showed slight improvement, with gross non-performing assets (NPA) at 1.85 percent, down from 1.88 percent quarter-on-quarter (QoQ).. | Bank of Maharashtra on July 15 reported a significant increase in its Q1 net profit, which rose by 46.6 percent to Rs 1,293.5 crore, compared to Rs 882 crore in the same period last year, the lender said in an exchange filing. The bank's net interest income (NII) also saw a robust growth of 20 percent, reaching Rs 2,799 crore from Rs 2,340 crore year-on-year (YoY). The shares of the bank jumped post the announcement, recording a 5.61 percent rise at Rs 68.73 on NSE at 13:55 pm. The bank's asset quality showed slight improvement, with gross non-performing assets (NPA) at 1.85 percent, down from 1.88 percent quarter-on-quarter (QoQ). However, the Net NPA remained unchanged at 0.20 percent during the same period. In absolute terms, gross NPA stood at Rs 3,873 crore compared to Rs 3,833 crore in the previous quarter, while net NPA was Rs 415 crore against Rs 409 crore QoQ. The provisions for the quarter were reported at Rs 950 crore, slightly up from Rs 942 crore in the preceding quarter. | null | null | 2024-07-15 13:57 |
moneycontrol.com | https://www.moneycontrol.com/news/business/alembic-pharmaceuticals-gets-tentative-nod-from-usfda-for-generic-selexipag-injection-12769451.html | Alembic Pharmaceuticals gets tentative nod from USFDA for generic Selexipag injection | Alembic Pharmaceuticals gets tentative nod from USFDA for generic Selexipag injection.Related stories. | Alembic Pharmaceuticals Ltd on Monday said it has received tentative approval from the US health regulator for its generic version of Selexipag injection used in the treatment of pulmonary arterial hypertension. The approval by the US Food & Drug Administration (USFDA) is for the abbreviated new drug application (ANDA) Selexipag for injection of strength 1,800 mcg/vial, Alembic Pharmaceuticals said in a statement. The approved ANDA is therapeutically equivalent to the reference-listed drug product Uptravi for Injection, 1,800 mcg/vial, of Actelion Pharmaceuticals US, Inc, it added. Alembic Pharma said, based on the most recent update to the USFDA's online paragraph IV database listings, it is the sole first applicant to have filed its ANDA for Selexipag for Injection, 1,800 mcg/vial, containing a Paragraph IV certification under the provisions of the Hatch-Waxman Act. As per the USFDA, under the Paragraph IV certification, a company can seek approval to market a generic drug before the expiration of patents related to the brand-name drug that the generic seeks to copy. "Upon final approval of this ANDA by the USFDA, Alembic may be eligible for 180 days of generic marketing exclusivity in the US," it added. Selexipag is indicated for the treatment of pulmonary arterial hypertension (PAH) to delay disease progression and reduce the risk of hospitalisation. PAH is a rare, progressive disorder characterised by high blood pressure in the arteries of the lungs. | null | null | 2024-07-15 13:52 |
moneycontrol.com | https://www.moneycontrol.com/news/business/airbus-expects-china-india-to-drive-jet-sales-in-next-decades-12769382.html | Airbus expects China, India to drive jet sales in next decades | Airbus expects China, India to drive jet sales in next decades. | Airbus SE predicted China and India will be key growth drivers for the aviation industry in the next two decades as the planemaker expects the global commercial fleet will double in the period. The company anticipates the world will have 48,230 aircraft in 2043, compared with 24,240 planes at the start of this year, according to Airbus’s annual Global Market Forecast. About 45% of all new plane deliveries will be to replace older, less fuel efficient aircraft, according to the forecast. “The Indian carriers are expanding their international and their widebody operations that had historically been served by foreign carriers,” Joost Van Der Heijden, Airbus’s head of marketing, said on a call. Carriers in India have loaded up on new plane orders as demand for flying soars with a growing middle class. Market leader IndiGo has more than 1,000 aircraft on order, including a recent agreement for its first long-haul jets, while recently privatized Air India Ltd. is looking to shore up its fleet and ramp up services across its network. Airbus’s forecast comes at a time when the planemaker and its rival Boeing Co are struggling to ramp up production and many airlines in the US and in Europe have taken a more gloomy view on their near-term prospects. On Friday, Deutsche Lufthansa AG cut its profit outlook for the full year as it wrestles with higher unit costs and falling ticket prices. On Thursday, Delta Air Lines Inc. warned that US domestic carriers are struggling to fill planes, dragging down ticket prices in a fare war that’s weighing on profits. The International Air Transport Association said last month that there’s still pent-up demand for cross-border travel in Asia, and that the region will bring in about $600 million in profit this year. That compares with $14.8 billion in profit in North America, by far the biggest contributor to the aviation industry’s earnings. | null | null | 2024-07-15 12:57 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/nazara-tech-delta-corp-shares-rise-as-sc-likely-to-hear-online-gaming-firms-gst-challenge-next-week-12769192.html | Nazara Tech, Delta Corp shares rise as SC likely to hear online gaming firms' GST challenge next week | Mumbai-based Nazara Tech’s shares jumped 1.27 percent to Rs 918.1 at 11:48 am on NSE, while Delta Corp’s stock surged 2.85 percent to Rs 144.16..Related stories. | Nazara TechnologiesandDelta Corpshares gained in the morning trade on July 15 after Chief Justice of India DY Chandrachud said the Supreme Court will next week hear pleas filed by gaming firms against demand notices to pay 28 percent goods and services Tax (GST) on full face value of bets, CNBC-TV18 reported. The case was earlier scheduled to be heard on July 15. At 11.48 am, Mumbai-based Nazara Tech’s shares was trading 1.27 percent higher at Rs 918.1 on NSE and the Delta Corp was up 2.85 percent at Rs 144.16. Around 30 pleas have been filed by online real money gaming companies challenging retrospective GST notices asking for over Rs 1.5 lakh crore, calculated at 28 percent on the face value of bets. In May, CJI Chandrachud said the court would hear the pleas challenging I-T department’s tax notices in July. The chief justice was hearing a petition filed by Baazi Networks Private Limited that owns Baazi Games. Nazara Technologies has interests in mobile games, esports and sports media, while Delta Corp, which operates offshore casinos, is also into gaming and hospitality. | null | null | 2024-07-15 12:30 |
moneycontrol.com | https://www.moneycontrol.com/news/business/budget-2024-to-backstop-an-already-compelling-story-says-radhika-rao-of-dbs-12768936.html | Budget 2024 to backstop an already compelling story, says Radhika Rao of DBS | Union Budget 2024.Related stories. | By Radhika Rao, Executive Director and Senior Economist, DBS Bank As we approach the final budget for FY25, three developments are shaping market expectations. Firstly, the government has accumulated a significant revenue buffer, bolstered by robust direct and indirect tax collections. Additionally, a record-high surplus transfer from the RBI amounting to Rs 2.1 lakh crore (~0.6% of GDP) for FY24, far exceeding last year's Rs 87,400 crore and the budgeted Rs 85,000 crore, adds to this fiscal cushion. This unexpected windfall provides an opportunity for the government to potentially reduce the full-year deficit from the targeted -5.1% of GDP for FY24. However, its impact will depend on whether this surplus is primarily used to strengthen fiscal consolidation or to cover increased spending commitments and any shortfall in divestment proceeds. Second, there were the election results. The ruling BJP National Democratic Alliance (NDA) coalition returned for a third successive term, but with a narrower margin of win than the exit polls had suggested. This has increased the focus on the upcoming Budget, especially whether it would contain more demand-accretive measures to support households’ consumption and purchasing power besides a focus on the agricultural sector. Also read:Govt may introduce insurance laws amendment bill in Budget session Lastly, the inclusion of the bond index expands the pool of investors in the debt markets to include more passive foreign portfolio investors. This is expected to boost borrowing opportunities this year. Since the announcement of the inclusion, approximately $10 billion has already flowed into India's sovereign debt market. Analysts predict that an additional $18-20 billion in fresh investments could follow over the coming year. India's comparatively higher yields compared to other index constituents may attract active fund managers to increase their holdings in these bonds, alongside the dedicated passive investors. Against this backdrop, we expect a short-term and long-term focus in the upcomingBudget. With a short-term lens, spending will be prioritised toward low-income people, youth, women, and farmers. After a record heatwave, the southwest monsoon started on a weak note but is expected to improve, with its geographical trend impacting farm output GVA growth, which averaged a feeble 0.7 percent YoY in FY24. Direct support for farmers via inputs including fertilizers, higher crop insurance, and investments towards food processing are in the offing, together with the already announced increase in MSPs for kharif crops. Markets are likely to focus on disbursements towards the core and core of the core schemes, which include programs covering public health infrastructure, rural housing, farming communities, and a push towards sanitation and cleanliness. Allocations towards a few of these programs had been trimmed in the revised FY24 outlay but increased in the FY25 interim presentation. Also read:ÂBudget 2024 Expectations Highlights: Railways, defence to be in focus as FM gears to present Union Budget on July 23 To contain the spillover impact on food prices, the government plans to add 16 new commodities to its price monitoring list, increasing the total to 38. Stock limits on wheat have been re-introduced and will stay in place till March 2026. Income tax cuts for specific categories (for instance on incomes over Rs 15 lakh) might also be on the cards to boost disposable incomes. Subsidy allocations are likely to stay at similar levels as the interim budget. Adopting a more medium-term lens, the unwavering focus on improving the quality of spending towards higher capital expenditure is expected to stay on track. The gross fixed capital formation ratio to GDP has risen north of 31 percent in FY24 but is still below the FY12 peak. A large part of the increase in capital expenditure by direct government and non-corporate private (households) has been concentrated in construction (of infrastructure projects) and real estate reflected in ‘dwellings and structures’ under the GDP series, with higher private corporate participation expected to provide a boost to ‘machinery and equipment’. Further tweaks to the PLI scheme and other incentives to better target the intended sectors, expand to a few ancillary segments and widen the scope to include more labour-intensive sectors. Ease disbursements (cumulative Rs 9,700 crore disbursed by end FY24) are also likely to be under consideration. Key factors of production will be the other area of focus. To be effective, the centre is likely to seek cooperation from the states to pursue land and labour regulations. On the latter, most states have prepared draft regulations and are waiting for the buy-in of others to harmonise regulations across the board. Agricultural sector reforms are contentious but necessary to lift and improve the state of the ~40 percent of households dependent on farming income. Lastly, incremental reforms are not limited to the Budget and are expected to continue beyond July. A good balance between supply-side investments and boosting demand will also ensure a more inclusive as well as widening growth and development agenda. | null | null | 2024-07-15 11:55 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/tcs-chief-cautious-of-economic-slowdown-but-remains-confident-of-future-growth-12769036.html | TCS chief cautious of economic slowdown, but remains confident of future growth | K Krithivasan, CEO and MD, TCS.Related stories. | Tata Consultancy Services Ltd (TCS) stays cautious about the possibilty of an economic slowdown, with chief executive K Krithivasan stating that the worst may not be over yet, though he sounded confident of growth as the company sits on a strong order book of $42.7 billion and aims to outperform its last year's performance in FY25. In an interview withMint, Krithivasan highlighted the ongoing uncertainty in key markets such as the US, Western Europe, and the UK, where clients are re-evaluating their spending and making quick adjustments. "It would not be appropriate to say that the worst is behind us," Krithivasan remarked. "We do not have the comfort or confidence to make such a statement at this time." The cautious outlook follows TCS's report of a 1.93 percent sequential dollar revenue growth in the April-June quarter, surpassing analysts' expectations. The company's headcount also increased by 5,452 from the previous quarter, reversing a year-long trend of workforce reductions. This positive news drove TCS shares up nearly 7 percent on Friday. Also Read |ÂShort Call: One TCS does not make a summer For FY24, TCS achieved a revenue of $29.1 billion, reflecting a 4.1 percent growth, which is the second-slowest annual growth rate since its IPO in August 2004. The slowest growth was recorded in the pandemic year of FY21 at 0.7 percent.Mintquoted analyst Keith Bachman from BMO Capital Markets, saying that while the IT services sector's estimates seem to be stabilising, there is still not enough conviction to predict a significant improvement in CY25 growth. Tata Consultancy Services has maintained its earlier view thatthe current year will improve over the last, driven by growth across global operations and strength in major business verticals. "There's nothing new to add in terms of market sentiments. However, as mentioned last quarter, we anticipate FY25 to surpass FY24, and we maintain that stance. We believe it will be a stronger FY25 compared to FY24," he said at a press conference to discuss the June quarter numbers. Also Read |ÂInvestors of TCS, HCL should tally their optimism with ISG index Krithivasan, in conversation withMint, also addressed concerns about Generative AI (GenAI), dismissing fears that it would render many jobs obsolete. Citing Roy Amara's adage about technology's impact being overestimated in the short term and underestimated in the long term, he emphasised that while GenAI will transform certain areas, it will not eliminate the need for human workers. "Unlike some past technologies like Blockchain, GenAI has a much larger impact," Krithivasan said, predicting that future coding practices will evolve significantly, but the demand for human talent will remain strong. In contrast to Accenture Plc, which reported winning $2 billion in GenAI deals in the first nine months of its fiscal year, TCS has not quantified its business from AI tools. However, Krithivasan asserted that TCS is not lagging, as the company is integrating AI into nearly all aspects of its operations. "The key is how we are helping or bringing differentiation for our clients. We should resist riding on a particular hype cycle and focus on how we can help our clients," he stated. | null | null | 2024-07-15 10:00 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/sbi-raises-lending-rates-by-5-10-bps-across-most-tenures-12769029.html | SBI raises lending rates by 5-10 bps across most tenures | SBI has raised Marginal Cost of Lending Rates. | State Bank of India (SBI) has raised its benchmark marginal cost of lending rate (MCLR) by by 5-10 basis points with effect from Monday, 15 July 2024. With the increase in the MCLR, the interest rates on loans are also likely to rise by a similar measure, and EMIs rise on linked loans. India's largest bank SBI has hiked the MCLR on 1-year loan tenures by 10 basis points to 8.85 percent. Similarly, the MCLR on 3-month, 6-month, 2-year loan tenures has been hiked by 10 basis points each to 8.4 percent, 8.75 percent, and 8.95 percent, respectively. SBI's MCLR (benchmark rates) revised w.e.f. 15 July 2024TenureMCLROvernight8.10 percent1-month8.35 percent3-month8.40 percent6-month8.75 percent1-year8.85 percent2-year8.95 percent3-year9.00 percentBefore this, SBI had hiked the MCLR on various tenures in mid-June, also by 10 basis points, then taking the benchmark rate on 1-year loans to 8.75 percent.To be updated with details | null | null | 2024-07-15 09:53 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/morning-scan-all-the-big-stories-to-get-you-started-for-the-day-747-12769011.html | Morning Scan: All the big stories to get you started for the day | A roundup of top newspaper stories to keep you informed and ahead of the curve..Related stories. | #1. India dedicated funds see record inflows of $1.25 billion in July second week Funds dedicated to India witnessed record inflows in the past few weeks, the Hindu Businessline reported. Last week saw inflows of $1.25 billion, with most of the money coming into exchange traded funds at $848 million, data from EPFR and Elara Securities showed. A good portion came in from Ireland while consistent inflows were seen from the US, Japan and Luxembourg. South Korea has also been a steady contributor. Why it’s important:Overseas investors are convinced of India’s continued growth story. The inflows into dedicated funds have gathered pace since April last year, when there was a shift from China to India. #2. Flipkart plans to open 100 dark stores, intensifying battle for market share in quick commerce E-commerce firm Flipkart plans to open nearly 100 dark stores in top cities ahead of its Big Billion Days sale, intensifying the battle over quick commerce, the Economic Times reported. The Walmart-owned company will take on Zepto, Zomato’s Blinkit and Swiggy Instamart this festive season. Why it’s important:The rapid penetration of quick commerce could see the segment corner a large chunk of festival season sales and Flipkart wants a piece of that action. The expansion of faster deliveries into non-grocery segments is expected to gather pace. #3. Care Health Insurance challenges regulatory power to set stock options to top executives Rashmi Saluja-led Care Health Insurance has questioned the regulator’s powers to set stock options granted to insurance company executives, the Mint reported. Care Health wrote to the Insurance Regulatory and Development Authority of India that no action should be taken against it for awarding equity stock options to Saluja despite the regulator rejecting its proposal. Why it’s important:This could potentially delay the Burman family’s bid to take over Religare Enterprises, the parent of Care Health Insurance. The Burmans have warned Care of legal consequences if it did not act to prevent Saluja from cashing in the stock options. #4. Indian talent needs to play role in chip design and not just fabrication, semicon influencer says India has the potential to “rise and emerge” as a major player in the next big semiconductor wave because its human capital is already driving technology giants Intel, Qualcomm and Nvidia, Lip-Bu Tan, one of the most influential global voices in the multibillion-dollar chip industry, told the Economic Times. Tan will attend the launch of Yali Capital, a local deep-tech venture fund with a strong emphasis on chip design. Why it’s important:The government has been aiming to make India a hub for semiconductors, but the country needs to play to its strength and focus on value additions such as chip design instead of fabrication, which is capital intensive, power guzzling and riskier. #5. Adani Power, NTPC and JSW Energy in race to acquire bankrupt Sinnar Thermal Adani Power, JSW Energy, Jindal Power, Vedanta Group, Torrent Power and state-owned NTPC are among 15 firms that have submitted expressions of interest for providing a resolution plan to take over the debt-laden Sinnar Thermal Power near Nashik in Maharashtra, the Economic times reported. The 1,350 MW power plant, a unit of RattanIndia Power, was initially developed by Indiabulls Power. Why it’s important:This is a rare instance of an electricity generator being readily available in India, where building a new power project is both costly and time-consuming. No wonder there is such ample interest. #6. Steep decline in bond issuances by India Inc in June quarter due to polls, rate cut hopes Corporate bond issuances slumped in the April-June period due to the national election and expectations of a drop in yields due to anticipated rate cuts, the Mint reported. The number of issues fell to 247 from 287. Listed bond issuances through the electronic debt bidding platform (EBP) saw a sharp drop in the total amount raised in the fiscal first quarter to about Rs 1.6 lakh crore from Rs 2.42 lakh crore a year ago, according to BSE and NSE data. Why it’s important:Part of the decline was due to the high base of the year-ago period. There could be a revival in the ongoing quarter as yields remain attractive and there’s strong investor appetite for long-term bond instruments from top-rated private sector issuers. #7. Government to take measures to help exporters grappling with non-tariff barriers The central government is working towards a strategy to tackle non-tariff barriers faced by exporters by setting up a committee and launching a portal, the Business Standard reported. The development comes at a time when India is negotiating free-trade agreements with several developed economies. Why it’s important:Wealthy nations often undertake non-tariff measures related to environment and sustainability that have become a cause for concern for Indian exporters. Non-tariff barriers typically take several years to resolve. #8. Metal and power producers lobby for easier vias regime for expats like those in PLI sectors Domestic metal and power producers have asked the federal government for a visa regime for expats, including those from China, on par with that for firms in the 14 sectors under the flagship production-linked incentive schemes, the Economic Times reported. Why it’s important:There are early signs of private capital formation in metals and power industries. The government could favorably consider easing the visa regime since delays in processing entry permits for foreign experts has emerged as a bottleneck. #9. Banks step up measures to contain the huge increase in mule accounts in recent months Commercial banks in the country have stepped up their control mechanism in taking on new current and savings accounts customers while boosting surveillance on existing ones, the Business Standard reported. This comes in the wake of an increase in the number of so-called mule account in the past six-nine months, bankers said. Why it’s important:India has one of the most stringent KYC norms for the finance and banking sector. The illegal or mule accounts have been rising despite that and the lenders are acting on the urging of the banking overseer. #10. Super sports Sunday sees superb sales for restaurants and bars across in India Sports enthusiasts nationÂwide enjoyed an action-packed super Sunday, igniting a surge in business for restaurants and bars, the Business Standard reported. The day kicked off with the Wimbledon finals televised in India at 6.30 pm, followed by the Euro Cup finals starting at 12.30 am and concluding with the Copa AmĂ©rica final in the early hours of Monday. Why it’s important:It was a blockbuster Sunday for eateries and bars, who had stocked up in anticipation. There was a spike in home deliveries as well. | null | null | 2024-07-15 08:07 |
moneycontrol.com | https://www.moneycontrol.com/news/business/adani-plans-to-build-port-in-vietnam-to-tap-trade-opportunities-12768966.html | Adani plans to build port in Vietnam to tap trade opportunities | Adani plans to build port in Vietnam to tap trade opportunities.Related stories. | Billionaire Gautam Adani plans to build a port in Vietnam as the Indian conglomerate seeks to develop infrastructure overseas to tap opportunities from increasing trade. Adani Ports and Special Economic Zone Ltd. has secured an “in-principle approval from the Vietnamese government” for a greenfield development in Da Nang, Karan Adani, managing director of the company, said in an interview. The project, which will have container terminals and multipurpose berths to handle various types of cargo, is at an early stage of planning and the total investment required hasn’t been finalized yet, he said. This will be the fourth international port asset for the Adani group after Haifa in Israel, Colombo in Sri Lanka and the Port of Dar es Salaam in Tanzania. On Friday, Adani’s new mega port in southern India saw the arrival of its maiden mother ship and the company wants to accelerate the expansion of the facility in a bid to grab a bigger share of the international maritime trade that’s currently dominated by China. “The idea is to make India a maritime hub,” Karan, the elder son of Gautam Adani, said. “We are targeting countries that are high on manufacturing or high on population, which will lead to high consumption. We are focusing on export volumes in these countries.” Adani Ports is the largest port operator in India. It gets about 5% of its total volume from international operations and wants to increase the ratio to 10% by 2030, Karan Adani said. The company is looking at opportunities in the Middle East, Southeast Asia, East Africa, Bangladesh, Sri Lanka, Maldives, Vietnam and Cambodia as these are regions where trade is coming to India, he said. | null | null | 2024-07-15 06:35 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/indias-net-direct-tax-collection-jumps-over-19-till-july-11-12768312.html | India’s net direct tax collection jumps over 19% till July 11 | Common examples of direct taxes are income tax, property tax, corporate tax.Related stories. | India's net direct tax collections grew 19.54 percent to Rs 5.74 lakh crore till July 11 in the current financial year as compared to Rs 4.80 lakh crore in FY24 in the corresponding period, income tax department said. TheCentral Board of Direct Taxes(CBDT) said net direct tax collection of Rs 5.74 lakh crore (as of July 11) includes Corporation Tax (CIT) at Rs 2.1 lakh crore (net of refund) and Personal Income Tax (PIT) at Rs 3.46 lakh crore and Securities Transaction Tax (STT) at Rs 16,634 crore (net of refund). The government has issued direct tax refunds of Rs 70,902 crore till July 11 in 2024-25, which is an increase of 64.49 percent compared to Rs 43,105 crore it issued in the corresponding period in 2023-24. The government had in the revised estimates for direct tax collection pegged the receipts for the full fiscal (April-March) at Rs 21.99 lakh crore. Healthy tax collection is significant since it helps the government meet itsfiscal deficit targetfor a particular year. The Centre targeted a 5.2 percent fiscal deficit target for FY25 in the interimbudget. On a gross basis, before adjusting refunds, the direct tax collection stood at Rs 6.45 lakh crore till July 11 FY25, an 23.24 per cent growth over the year-ago period. Direct taxes, which are levied on the income or profit of a person, are directly paid by an individual to the government without any intermediaries. Common examples of direct taxes are income tax, property tax, corporate tax, wealth tax, gift tax, security transaction tax, and capital gains tax. | null | null | 2024-07-13 10:28 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/high-inflation-better-industrial-growth-will-aid-rbi-in-holding-rates-higher-for-longer-say-economists-12768075.html | High inflation, better industrial growth will aid RBI in holding rates higher for longer, say economists | Grounds for higher for longer.Related stories. | A higher inflation print, coupled with higher industrial production, will provide support to the Reserve Bank of India to keep rates higher for longer, economists said on July 12. “The RBI will be in no hurry to ease monetary policy given the headroom from robust growth in the backdrop of near term inflation risks,” said Upasna Bhardwaj, chief economist, Kotak Mahindra Bank. Both inflation and industrial production surprised, with inflation rising above 5 percent for the first time in four months and industrial production soaring to a seven-month high of 5.9 percent in May compared to 5 percent in the previous month. Economists contend that a lot rides on the food inflation trajectory in the coming months and even an October cut, which was earlier anticipated, hangs in balance. “While the RBI has projected inflation to come down in Q2 to less than 4 percent, the monsoon progress will determine whether this is sustainable or not. RBI expects inflation to go back to 4.5 percent in the following quarters. Any rate action can be considered only in October and will be heavily data dependent,” said Madan Sabnavis, chief economist, Bank of Baroda. In an interview with CNBC-TV18 earlier this week, RBI Governor Shaktikanta Das had hinted at interest rates staying higher for longer. “The overall economic environment globally and in India is so uncertain to talk in terms of interest rate cut. Second thing is CPI headline inflation continues to be close to 5 percent… I think it is too early to talk on interest rate cut,” Das had noted. The Reserve Bank of India’s monetary policy committee will likely keep the policy rate unchanged at 6.5 percent for the ninth consecutive time at its meeting from August 6-8. The cooling off of the US inflation in June has increased the possibility of a rate cut by the Federal Reserve in September. “Despite the likelihood of a Fed rate cut having increased for Sep'24, we don’t expect any monetary easing measures from RBI till Dec'24,” said Suman Chowdhury, chief economist, Acuité Ratings & Research. Ind-Ra economists noted that theBudgetwill also play a role in deciding the direction of monetary policy in future. “External risks emerging from ongoing geopolitical tensions need to be monitored, given the risk they can pose to supply chains and commodity prices,” said Rajani Sinha, chief economist, CareEdge. Future inflation trajectory On the inflation front, experts indicated that favourable base and possibility of good monsoons are likely to determine inflation in the coming months. “The temporal and spatial distribution of monsoon and progress of Kharif sowing would be critical factors to monitor. A good monsoon is crucial for controlling food inflation and ensuring a successful Kharif harvest, especially given the current low reservoir levels,” said Sinha from CareEdge. Kharif sowing until July 8 was up 14 percent from previous year, but down 2.1 percent from 2022 levels. ICRA pointed out that inflation could fall to 2.5-3 percent in July, given prices had risen 7.4 percent in the previous year, but noted that concerns around excess rainfall could upend near-term outlook. “A sustained spell of heavy rainfall can further push up perishable prices, which imbues caution into the near-term outlook,” said Aditi Nayar, chief economist, Icra. “July-August inflation will benefit from favourable base effects, but the pullback will be shallower than previously anticipated on still elevated vegetables and telecom tariff hikes by local providers,” added Radhika Rao, senior economist, DBS Bank. Vegetable inflation had risen to 29.4 percent in June from 27 percent in the previous month, with potatoes and onions recording over 50 percent inflation. Can industrial output sustain growth? “The high frequency indicators such as steel production, petroleum consumption, etc for the month of June 2024 suggest that barring primary goods the industrial activity has witnessed modest pickup post-election. However, it is too early to term this as industrial revival. Ind-Ra expects yoy growth of IIP to remain in the range of 5-6 percent in June 2024,” said Ind-Ra economists, Paras Jasrai and Sunil K Sinha. There was silver lining for consumer goods as durable production rose 12.3 percent in May from a strong 10.2 percent expansion in April and consumer non-durables climbed back to expansion. “Clearly, IIP growth is on a stable path, which bodes well for the economy. The post-harvest festival season will hold clue to revival of demand, especially rural,” said Madan Sabanvis chief economist, Bank of Baroda. Economists noted that demand will also be contingent on food inflation. “Consumption recovery faces headwinds from high food inflation,” said Sinha from CareEdge. | null | null | 2024-07-12 20:27 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/indias-retail-inflation-rises-to-4-month-high-of-5-08-in-june-12767629.html | India’s retail inflation rises to 4-month high of 5.08% in June | Food inflation stays high.Related stories. | India’sretail inflationrose to four-month high of 5.08 percent in June compared with 4.75 percent in the previous month as food inflation galloped to 9.4 percent given the impact of heatwave on vegetables. Inflation had dipped to a 12-month low of 4.75 percent in the previous month, despite food inflation hovering around 8.7 percent. "Despite favourable base effect inflation in June 2024 reversed five months declining trend. The food inflation in June 2024, after being less than 9 percent for five consecutive months jumped to six months high of 9.36 percent," said India Ratings and Research (Ind-Ra) economists Paras Jasrai and Sunil K Sinha. June marks the eighth consecutive month of over 8 percent food inflation, data released on July 12 showed. Sequentially, consumer price index, which is used to measure inflation, was up 1.33 percent compared with the previous month, with food inflation rising 3.17 percent. Food concerns rise Within food, vegetables and pulses inflation continued to remain in double digits with 29.3 percent and 16.1 percent rise compared with 27.4 percent and 17.1 percent, respectively. Potato inflation was a high 57.6 percent in June, onion inflation was 58.5 percent and tomato inflation at 26.4 percent. Pulses inflation has remained in double digits for 13 consecutive months, whereas vegetables inflation has witnessed a double digit increase for the eighth consecutive month. Sequentially, vegetable prices were up 14.2 percent from May, while pulses were up 2.5 percent. "Last year's reduced output, the impact of heatwaves in May-June on the shelf life of vegetables, and heightened demand due to festive season last month have all contributed to the sequential uptick in their prices," said Rajani Sinha, chief economist, CareEdge. Inflation in miscellaneous items at 3.41 percent remained below 4 percent for the sixth consecutive month. "Barring food and beverages, inflation across all the other sub-groups remained below the 4 percent mark in June 2024," said Aditi Nayar, chief economist, Icra. Core CPI held steady at 3.1 percent. High inflation is unlikely to deter Reserve Bank of India from its current stance of keeping the policy rate on hold. RBI governor Shaktikanta Das in a recent interview with CNBC-TV18 had hinted at interest rates staying higher for longer. “The overall economic environment globally and in India is so uncertain to talk in terms of interest rate cut. Second thing is CPI headline inflation continues to be close to 5 percent and according to surveys done it is expected to close 5 percent and I think it is too early to talk on interest rate cut,” Das had noted. Better days ahead Improvement in rainfall situation across the country and favourable base owing to high inflation in the previous year is likely to keep inflation contained economists said. "Rainfall has regained momentum into the crucial month of July, allaying supply concerns. Vegetables also have a short crop cycle, helping to make related price pressures less pervasive. July-August inflation will benefit from favourable base effects, but the pullback will be shallower than previously anticipated on still elevated vegetables and telecom tariff hikes by local providers," said Radhika Rao, senior economist, DBS Bank. Nayar pointed out that inflation could fall to 2.5-3 percent, on "account of the favourable base effect (+7.4% in July 2023), which will partly absorb the impact of the sequential surge in prices of vegetables." | null | null | 2024-07-12 19:07 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/cyril-amarchands-shishir-vayttaden-to-join-khaitan-co-along-with-2-other-partners-12768021.html | Cyril Amarchand's Shishir Vayttaden to join Khaitan & Co along with 2 other partners | Shishir Vayttaden.Related stories. | Leading law firm Khaitan & Co has roped in Shishir Vayttaden and two other partners - K Aishwarya and Aditi Singhvi - from rival Cyril Amarchand Mangaldas, according to an official announcement. They will join the Corporate and M&A practice at Khaitan & Co. Vayttaden specialises in public and private M&A and in private equity transactions. He is regular external counsel to several bulge bracket private equity funds and to many Fortune 500 companies. A 2005 graduate of NLSIU Bengaluru, Vaytadden joined Amarchand Mangaldas Suresh A Shroff as a partner in 2014 and after its 2015 split, stayed on with Cyril Amarchand Mangaldas. Prior to Cyril Amarchand Mangaldas, he had a stint of nearly nine years at Luthra & Luthra Law Offices. He is the author of a highly respected textbook on the Indian takeover code and is also a best-selling fiction author of the book,Kill the Lawyers. Speaking on the development, Haigreve Khaitan, Senior Partner at Khaitan & Co said, “We are delighted to welcome Shishir and his team to our Corporate and M&A practice. Shishir’s significant experience in dealmaking will further our capabilities in delivering exceptional legal services to our clients. I am confident that their integration into our firm will be seamless, and they will contribute meaningfully to our continued success.” The official announcement added, "This move is part of Khaitan & Co's ambitious strategy to continue investing in its growth, attract top talent and reinforce its position as a top law firm in the country. Recently, the firm boosted its employment practice with the addition of two key Partners in Bengaluru and Delhi. Earlier this year, it announced the opening of its Ahmedabad office with two Partner appointments in the new office, and expansion of its Mumbai office. Today, the firm has over 250 Partners and Counsel across its offices in India and Singapore." | null | null | 2024-07-12 18:37 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/may-iip-factory-output-growth-12767904.html | Index of industrial output surprises with a rise of 5.9% in May, shows data | industrial production steady.Related stories. | The industrial output growth surprised in May rising to a seven month high of 5.9 percent from 5 percent in the previous month, as manufacturing and electricity production soared, according to the official data released on July 12. A CNBC-TV18 poll had pencilled in an IIP growth of 4.6 percent, lower than what was reported a month ago. “The IIP outperformed expectations, with the YoY growth rising to a seven-month high of 5.9 percent in May... amid a better-than-anticipated growth in manufacturing output," said Aditi Nayar, chief economist, Icra. The pace of growth in the index of industrial production has stayed above 5 percent for four consecutive months. For the first two months of the year, industrial output growth has averaged 5.4 percent compared with 5.1 percent in April-May 2024. Electricity growth soared to 13.7 percent in May compared with 10.2 percent in April, while manufacturing, which accounts for nearly two-thirds of the index, was up 4.6 percent in May from 3.9 percent earlier. "Higher industrial activity as well as heatwave contributed to this increase," said Madan Sabnavis, chief economist, Bank of Baroda. Data released last monthhad indicated that growth in the core industries, which account for 40 percent of index, had eased to 6.3 percent in May compared with 6.7 in the previous month. Mining, one of the three key sectors tracked by the index, eased to 6.6 percent from 6.8 percent in the previous month. Sequentially, growth was up 4.4 percent, with electricity production rising 8 percent over the previous month and manufacturing expanding 3.8 percent. Mixed performance On the use-based industries, there was mixed performance, with capital goods easing to a three month low of 2.7 percent from 2.5 percent in April. But the silver lining was the second consecutive month of double-digit growth in consumer durables, which rose 12.3 percent in May from 10.2 percent in the previous month. "This can be attributed to both base effect as well as spending post rabi season. FMCG goods however have seen moderate increase in production," Sabnavis noted. Consumer non-durables rose 2.3 percent in May from a 2.5 percent contraction in April. "The performance of the use-based categories was mixed, with three witnessing an acceleration and a similar number seeing a deceleration in growth in May 2024 vis-à -vis the previous month," Nayar said. Infrastructure or construction goods sector growth eased to 6.9 percent from 8 percent in April. One of the key demands of the industry is for the government to increase its capex beyond the Rs 11.1 lakh crore, as was announced in the interim budget 2024. | null | null | 2024-07-12 18:30 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/the-us-federal-reserve-should-cut-rates-now-sadly-it-wont-12767770.html | The US Federal Reserve should cut rates now. Sadly, it won’t | Related stories. | Thursday’s wildly encouraging consumer price index report shows that the Federal Reserve should be cutting policy rates at its meeting later this month. Unfortunately, they’ll probably keep us waiting until September. On the inflation front, just about everything seems to be going right. CPIÂfell 0.1 percent in June from the previous month and was up just 3 percent from the same period a year earlier. Primary rents and owners’ equivalent rent — the heavily weighted and inertial housing categories that have bedeviled the Fed for two years — are finally cooling on what looks to be a sustainable basis. And used car prices are still falling like stones. The right move is to start lowering policy rates at the next decision on July 31. The Fed has a dual mandate to promote maximum employment and stable prices, and recent developments leave real interest rates tight at a time when unemployment is creeping higher and job growth is slowing. Labour market trouble can snowball quickly and unpredictably once it begins. A rule developed by my Bloomberg Opinion colleague Claudia Sahm shows that historically, the economy is already in a recession once the three-month average of the unemployment rate rises at least a half percentage point above its low in the past 12 months. At present, it’s up 0.43 percentage point. The argument for cutting now is simple: High inflation appears to be vanquished, so why take risks with the employment side of the Fed’s mandate? Still, I’m pretty confident that policymakers will wait anyway, as are traders. Fed funds futures now imply just an 8.5 percent probability of a cut in July but 90 percent odds of a reduction in September. Fed Chair Jerome Powell probably has a couple of reasons for waiting, but I’d like to offer some counterpoints to each. First, policymakers feel that they’ve been headfaked by the data before and don’t want to jump to conclusions. As Powell put it in testimony this week before lawmakers, he’s looking for “greater confidence” that inflation is moving sustainably toward the central bank’s 2 percent goal. Powell’s right that risks remain, but policymaking is full of tradeoffs and its worth sacrificing a modicum of “confidence” to protect American jobs. Personally, I think there are good reasons to expect the volatility in the inflation data to decline. The shelter category is the single-biggest reason that the CPI has remained relatively high recently. It’s a strange and glacial category for which we generally have a lot of visibility through high-frequency housing market data. Now that it’s begun to cool in the CPI, there’s good reason to believe that it will continue to be a moderating force. Overall, the inflation data has now been encouraging for three straight months and most of the past year, with the notable exception of the rocky first quarter. The January-March data now clearly looks more like noise than signal. Communication is the second reason policymakers may give for delaying rate cuts until September. It’s conventional wisdom that policymakers must never surprise the markets lest they contribute to volatility. Fed officials have been talking about “higher for longer” rates for so long that they’ll likely want to spend the next policy meeting signaling a change in posture. They’ll probably do so by altering the language in the policy statement on July 31; with Powell’s remarks at his press conference; a parade of speeches from Fed governors and reserve bank presidents; and perhaps a major dovish Powell speech next month in Jackson Hole, Wyoming. Policymakers give markets too little credit. Investors simply don’t need this months-long ritual to understand that circumstances have changed, and the time has come to start a rate cut cycle. Putting American jobs at risk in the name of preserving this bizarre tradition would just be wrong. I will happily acknowledge that a September cut probably isn’t the end of the world. As much as I worry about the labour market, recent upticks in unemployment have come largely from entrants and re-entrants, not layoffs, so I don’t think we’re quite on the cusp of a vicious cycle. An imminent recession certainly isn’t my base-case assumption. This is an economy unlike any other, and even Claudia Sahm hasÂacknowledged that her rule “could go wrong this time.” Lastly, markets are forward-looking, and the 10-year Treasury yield (a benchmark for mortgages and other household and corporate borrowing) was down 10 basis points on Thursday alone at the time of writing — a form of easing in and of itself. But there are always hidden vulnerabilities when you have the policy rate at a two-decade high, and the real question for policymakers is: Why risk it? The proverbial soft landing is here for the takingÂright now, so why not land the plane and cement this Fed’s spot in the history books? Credit: Bloomberg | null | null | 2024-07-12 15:09 |
moneycontrol.com | https://www.moneycontrol.com/news/business/tata-power-invests-over-rs-4200-crore-in-network-expansion-upgrade-in-odisha-12767732.html | Tata Power invests over Rs 4,200 crore in network expansion, upgrade in Odisha | Tata Power invests over Rs 4,200 crore in network expansion, upgrade in Odisha. | Tata Power-led power distribution companies (Discoms) have invested Rs 4,245 crore in infrastructure expansion and network upgrade in Odisha over the past 3-4 years, the company said on Friday. The company operates four Discoms in joint ventures with the government of Odisha - TP Central Odisha Distribution (TPCODL), TP Western Odisha Distribution (TPWODL), TP Southern Odisha Distribution (TPSODL), and TP Northern Odisha Distribution Limited (TPNODL), collectively serving a customer base of over 9 million. Of the total investment, Rs 1,232 crore has been allocated through various government-backed schemes. This includes laying 2,177 circuit kilometres (Ckms) of 33 kilovolt (KV) lines and 19,809 Ckms of 11 KV lines, as well as adding 30,230 distribution transformers to improve the distribution network's reliability across rural and urban areas, the company said. Additionally, the company has commissioned 166 new primary substations (PSS), with 55 per cent of them being automated. These efforts have led to an average of 23.68 hours of power supply per day in urban areas and 21.98 hours in rural areas, exceeding national averages. Furthermore, the network improvements have contributed to a reduction in Aggregate Transmission and Distribution (AT&C) losses, averaging 17.79 per cent in Odisha during the financial year 2023-24, the company added. | null | null | 2024-07-12 14:31 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/indias-top-vegetables-could-spoil-its-disinflation-party-12767143.html | IndiaŌĆÖs ŌĆśTOPŌĆÖ vegetables could spoil its disinflation party | India's statistics ministry will release CPI inflation figure for June on July 12..Related stories. | IndiaŌĆÖs consumer price index (CPI) inflation for June, though mostly expected to hold steady or even ease versus the month before, may see a spike in vegetable prices that can curtail the disinflation journey. This especially given the recent increase in the prices of key ŌĆśTOPŌĆÖ vegetables comprising tomato, onion and potato. Even as Barclays sees retail inflation moderating to 4.6 percent last month, it flags that a surge in vegetable prices is likely to limit the fall in the headline figure. IndiaŌĆÖs headlineretail inflation eased to the lowest in a year at 4.75 percentin May 2024. And while food and beverages costs remained the same at 7.87 percent sequentially, prices of vegetables declined marginally to 27.33 percent versus 27.80 in April. But in June, Barclays anticipates an uptick in vegetable inflation on a month-on-month basis, adding that while prices typically rise in summer, the magnitude of the rise during the season has inched up in the last couple of years, ŌĆ£possibly reflective of the changing weather patterns -- increased frequency of heatwaves in May and June this year, followed by delayed monsoon progress in the vegetable-production hub in the northwest in second half of the month.ŌĆØ India Ratings too anticipates retail inflation moderating to a 13-month low of 4.5 percent in June, primarily due to a favourable base effect but at the same time the agency warns of the impact of higher prices of food items such as onion and potato. On the other hand, Emkay GlobalŌĆÖs Madhavi Arora expects the headline rate to have risen to 4.87 percent in June majorly driven by higher food prices, specifically vegetables, due to the delayed monsoon, despite a favourable base effect potentially containing the pace of increase. Data from department of consumer affairs shows that prices of key vegetables has seen a spike during the last month. While the average retail cost for a kilogram of potatoes rose 13 percent on June 30 versus the last day of May, cost of onions increased by a larger 26 percent. The steepest spike was seen in tomatoes, a kilogram of which cost nearly 49 percent more during the last day of June compared to May 31. Arora added, prices for most vegetables have been rising in recent weeks, especially onions, tomatoes and potatoes, due to supply disruptions -- first due to the delayed monsoon, and now due to heavy rainfall across the country that has damaged crops and caused supply bottlenecks. ŌĆ£With fresh supply of tomatoes only hitting the market from August onwards, it is likely that prices will stay elevated unless govt intervenes by selling below market prices, as it did for onions and tomatoes last year,ŌĆØ she said. However, going ahead with rain regaining momentum into July, vegetable prices are expected to moderate, benefiting from the cropŌĆÖs short growth cycle, according to Radhika Rao, senior economist at DBS Bank. Limited fall in IndiaŌĆÖs headline retail inflation due to sticky food prices is significant at a time when the Reserve Bank of India (RBI) has signalled that a cut in the interest rate would follow only once signs of durable disinflation emerge. The RBIŌĆÖs monthly bulletin on June 19 said the goal of aligning inflation with the target of 4 percent will remain a work in progress as long as food prices pressure persists. And, then on July 11, central bank Governor Shaktikanta Das in an interview to CNBC-TV18 said it was too early to talk on the interest rate cut due to uncertain economic environment and inflation remaining close to 5 percent. To be sure, the 12-month low retail inflation in May came despite little change in food prices that remained elevated at 7.9 percent. Barclays says that while CPI inflation is likely to print below 4 percent in Q3 of the current fiscal, the central bank likely will want to see signs that headline inflation is aligning durably with the target from Q4 onwards. Therefore, the RBI is likely to stay on hold in the near term, monitoring the monsoon and international commodity prices (particularly energy). ŌĆ£We see a window for rate cut opening in December, though note the risk of a delay if inflation does not progress as per the RBI's expectations or growth conditions remain favourable,ŌĆØ it said. | null | null | 2024-07-12 13:46 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/indian-banks-eye-record-infra-bond-issue-for-second-straight-fiscal-year-12767687.html | Indian banks eye record infra bond issue for second straight fiscal year | Indian banks eye record infra bond issue for second straight fiscal year.Related stories. | Indian banks are set to raise around 400 billion rupees ($4.79 billion) through infrastructure bonds in July and August, potentially setting a record for the second consecutive year, according to five merchant bankers on Friday. If successful, funds raised via these bonds in the first five months of the current fiscal year started in April will surpass the 544 billion rupees raised in fiscal year 2023/24. Infrastructure bond issues had picked up last year, and the trend will continue as the gap between credit demand and deposit growth continues, said Shameek Ray, head of debt capital markets at ICICI Securities Primary Dealership. Government spending on infrastructure and a pick-up in investment in sectors like steel, roads and renewable energy is generating demand for funds, said Arnab Choudhury, head of debt capital markets at SBI Capital Markets. Infrastructure bonds are issued to finance long-term development projects. Canara Bank and Bank of Baroda are likely to raise 100 billion rupees each, while Bank of India is expected to raise 50 billion rupees, three of the bankers said. HDFC Bank, India's biggest private bank, is also in early talks to raise around 100-150 billion rupees, they added. None of the banks responded to Reuters' request for confirmation. So far this fiscal year, State Bank of India has raised 200 billion rupees, and ICICI Bank has raised 30 billion rupees through these bonds. Bank Tenor Issue period Amount (in billion rupees) SBI 15 years June 100 ICICI Bank 10 years June 30 SBI 15 years July 100 Bank of Baroda 10 years In advanced stage 100 Canara Bank 10 years In advanced stage 100 Bank of India 10 years In planning stage 50 HDFC Bank 10 years In planning stage 100-150 Investor appetite for long-duration infrastructure bonds could spur more issuances in the coming months, Choudhury said. According to the interimbudgetannounced in February, the federal government plans to spend over 11 trillion rupees this fiscal year on long-term infrastructure projects to stimulate growth and create jobs. "These bonds are seeing strong demand from insurance companies and provident funds, as it allows them diversification and meets their need for increasing portfolio duration," Ray said. The strong demand has also helped reduce the spread sought by investors over government securities, he added. | null | null | 2024-07-12 13:43 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/octogenarians-to-outnumber-babies-by-2063-shows-un-population-estimate-12767613.html | Octogenarians to outnumber babies by 2063, shows UN population estimate | More older people than young by end of century.Related stories. | India, the┬Ā home to one of the youngest populations in the world, will have more people aged over 80 than babies between 0┬Āto 4 years by 2063. The 80-plus┬Āpopulation is set to grow nearly three-fold faster than that of babies by 2100, according to estimates released by the UN. The dependency ratio, which is the┬Ānumber of children and older people as a proportion of working age population (15-64 year old), is expected to rise to 77.5 percent by 2100. AMoneycontrolanalysis shows that within the next 30 years, India will have 50 percent dependent people compared with 46.6 percent today. In 2054, IndiaŌĆÖs population is likely to rise 16.6 percent to 1.692 billion from 1.451 billion projected for July 2024. ŌĆ£In about 100 countries or areas, the working-age population (aged 20-64 years) will grow through 2054, offering a window of opportunity, commonly known as demographic dividend. To capitalise on this opportunity, countries must invest in education, health, and infrastructure, and implement reforms to create jobs and improve government efficiency,ŌĆØ┬Ā the UN report noted. By the turn of the century, the older population (over 65 years) dependency will rise to 53.1 percent in India, higher than both the global ratio of 40.2 percent and that of high income countries of 52.9 percent, but lower than ChinaŌĆÖs 98.9 percent. The United States is likely to see a lower old age dependency of 49.7 percent. Moneycontrolhad on July 11 reported that IndiaŌĆÖs population is expected to decline from2062, when on January 1, its population would hit 1.701 billion. The median age is expected to rise to just below 42 years from 28.4 in 2024. By 2100, India will still have 4.4 percent more people at 1.51 billion than today. If the fertility rate were to increase faster (0.5 births above normal) than anticipated, India is likely to become the first country to cross 2 billion population mark by 2070 to 2.2 billion by 2100. In case the growth rate is lower (0.5 births lower than normal), IndiaŌĆÖs population could peak at 1.55 billion in 2046. Under the normal scenario, IndiaŌĆÖs life expectancy will cross 80 years around the time its population peaks from 72.2 years today and shall rise to 85.3 years by the start of the 22nd century. Sex ratio is also to improve from 938 in 2024 to 946 within a decade and to 976 by end of century. | null | null | 2024-07-12 13:12 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/online-betting-should-be-included-as-scheduled-offences-under-pmla-report-12767519.html | Online betting should be included as scheduled offences under PMLA: Report | The report suggests MEITy should create nodal authority to register online real money games..Related stories. | Online betting and gambling activities should be included as scheduled offences under thePrevention of Money Laundering Act(PMLA), 2002, to strengthen India's anti-money laundering framework, an institution under the Ministry of Home Affairs said in its report titled ŌĆśCurbing betting and gambling in IndiaŌĆöA national security imperativeŌĆÖ. PMLA equips authorities with robust tools to investigate and trace illicit proceeds from online betting and gambling empowering them to disrupt the financial networks supporting these activities effectively. ŌĆ£Once online betting and gambling activities are classified as scheduled offence under PMLA or are prohibited under regulatory frameworks, necessary international cooperation agreements should be entered into with jurisdictions where the majority of these platforms operate, such as Cyprus and Malta. Additionally, enforcement authorities should collaborate with international law enforcement agencies to issue arrest warrants and take appropriate legal actions,ŌĆØ the Rashtriya Raksha University report said. Rashtriya Raksha University under the Ministry of Home Affairs was established by the Parliament Act No. 31 in 2020. It aims to become an academic-research-training ecosystem for national security and police. A centralised legal framework with clear definitions for games of skill and chance and robust consumer protection measures is crucial for creating a safe and thriving online gaming ecosystem in India. This framework should also balance the need for state governmentsŌĆÖ autonomy with the requirement for national uniformity in the digital age, the report said. Resolving the ongoing legal challenges and implementing these reforms are essential for the responsible development of the Indian online gaming industry. Whitelist ofonline gamingplatforms The report suggested that the Ministry of Electronics and Information Technology should create a nodal authority to register and regulate online real-money games. This authority would be responsible for creating a whitelist of legitimate online real-money gaming platforms authorised to operate in India. A comprehensive registration mechanism for these platforms is central to the proposed framework. ŌĆ£To be included in the whitelist, these platforms must meet specific criteria, including robust consumer grievance mechanisms and mandatory registration under the Central Goods and Services Act, 2017 (GST Act). Registration under the GST Act would require them to have physical presence in India, which would facilitate enforcement action against them in cases of non-compliance. A comprehensive database of legitimate online real money gaming operators would enable users to identify lawful operators, enhance regulatory oversight and ensure adequate consumer protection,ŌĆØ it said. For registration, the online gaming platforms should need to disclose ownership structure, licensing details and the types of games offered. The regulatory body can flag noncompliant operators and enable prompt intervention and potential enforcement action. Regulators can compare this data against platform operations to identify potential violations, such as indulging in unlicensed gambling activities, money laundering, deficiency in services or fraudulent conduct by the operator, it added. The report further suggested that the government may consider blocking platforms that do not register. This will enhance oversight and control over the online real-money gaming industry, ensuring regulatory compliance and consumer protection. ŌĆ£Section 69A of the IT Act, 2000, empowers the government to block online intermediaries that violate the law, including illegal betting and gambling websites and applications. This involves identifying illegal platforms through collaboration between government agencies and issuing blocking orders to internet service providers (ISPs),ŌĆØ the report stated. Action against advertisements Taking a cue from the regulations on alcohol advertising, strict measures should be put in place to prohibit the direct or indirect promotion of illegal betting and gambling activities. Despite the Ministry of Information and Broadcasting and the Ministry of Consumer Affairs issuing various advisories to limit the advertisement and endorsement of online betting and gambling platforms, it is crucial to formalise these advisories into enforceable regulations and to take stringent, consistent action against such illicit platforms, the report said. | null | null | 2024-07-12 13:00 |
moneycontrol.com | https://www.moneycontrol.com/news/business/domestic-pv-wholesales-up-3-at-337757-units-in-june-siam-12767562.html | Domestic PV wholesales up 3% at 3,37,757 units in June: SIAM | Domestic PV wholesales up 3% at 3,37,757 units in June: SIAM. | Passenger vehicle wholesales in India rose 3 per cent year-on-year to 3,37,757 units in June, automobile industry body SIAM said on Friday. The overall passenger vehicle (PV) dispatches from companies to dealers stood at 3,27,788 units in June 2023. As per the data issued by Society of Indian Automobile Manufacturers (SIAM), two-wheeler wholesales rose 21 per cent to 16,14,154 units last month, as compared with 13,30,826 units in June 2023. Three-wheeler wholesales increased 12 per cent to 59,544 units from 53,025 units in June last year. | null | null | 2024-07-12 11:57 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-to-clock-gdp-growth-of-7-in-fy25-niti-aayog-member-arvind-virmani-12767473.html | India to clock GDP growth of 7% in FY25: NITI Aayog member Arvind Virmani | Related stories. | The Indian economy will grow around 7 per cent in the current fiscal year and is on track to maintain a similar growth rate for several years, NITI Aayog member Arvind Virmani said on Friday. Virmani said there are new challenges facing the country and they will have to be dealt with. "Indian economy will grow at 7 per cent plus minus point 0.5 per cent... I expect that we are on track to grow at 7 per cent for several years from today," he told PTI in an interview. Last month, the Reserve Bank of India (RBI) pegged the FY25 gross domestic product (GDP) growth rate at 7.2 per cent. Responding to a question on the decline in private consumption expenditures in the last fiscal year, Virmani said it is actually recovering now. "The effect of the pandemic was to draw down savings... and very different from previous financial shocks," he said. Explaining further, Virmani said it is like what he calls a double drought situation. "We also had, of course, El Nino last year, but what the pandemic did was that it resulted in people having to draw down their savings... So, the obvious reaction is to rebuild your savings, which tend to reduce current consumption," he noted. If people were buying branded goods, they will buy less branded or ordinary goods and save part of that money, he said, explaining that this shows a slide in consumption. Virmani said history shows that coalition partners can slow privatisation in states in which the regional ally is in power, but that is not a big issue. "I see no reason why privatisation cannot happen in the other states and it may also happen in these states (where coalition parties are in power). I am just giving you a historical example," he said. With support from N Chandrababu Naidu's TDP and Nitish Kumar-led JD(U), along with other alliance partners, the NDA crossed the halfway mark in the recently held Lok Sabha elections to form the government at the Centre. On the decline in foreign direct investments (FDI) to India, despite it being the fastest growing economy, Virmani said riskless return of investment is much higher in the US and other developed countries than in emerging markets. "As soon as interest rates begin to come down in the US, I expect the FDI into emerging markets, including India, to increase," he said. | null | null | 2024-07-12 10:45 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/mca-panel-suggests-raising-to-rs-75-crore-the-threshold-for-businesses-to-maintain-audit-cost-accounts-12767431.html | MCA panel suggests raising to Rs 75 crore the threshold for businesses to maintain, audit cost accounts | This recommendation is part of the government's broader strategy to support SMEs..Related stories. | To ease the compliance burden ofsmall and medium enterprises (SMEs), a government panel has suggested significantly raising the turnover threshold for companies to maintain and audit cost accounts. The panel has recommended increasing the limit to Rs 75 crore in any of the past three years, the Economic Times has reported. At present, the mandated turnover limits are set at Rs 25 crore for companies in six regulated sectors and Rs 35 crore 33 unregulated sectors. A company that exceeds these thresholds must conduct mandatory cost audits and maintain detailed cost accounts. Under the new proposal, these requirements would only apply to companies with a turnover of Rs 75 crore or more, the report said. Moneycontrolcouldn’t verify the report independently. TheÂMinistry of Corporate Affairs (MCA), which received the committee's report, has now sought comments from stakeholders with feedback deadline set for the end of this month. If adopted, the new rules could exempt many small and mid-sized companies from the burdensome compliance requirements, allowing them to focus on their core operations. However, cost records would still be mandatory for government infrastructure projects exceeding Rs 100 crore. The proposed changes would apply to 35 of the 39 sectors covered under the existing regulations. The committee has also suggested including 16 new sectors. Among the new sectors healthcare, telecom, and infrastructure may require unique accounting frameworks due to their operational characteristics. This recommendation is part of the government's broader strategy to support SMEs, which play a crucial role in India's economy. By reducing regulatory pressures, the government aims to foster a more conducive environment for these businesses to thrive and contribute to economic growth. The feedback from stakeholders will be instrumental in finalising the new regulations, ensuring they are both practical and effective in achieving their intended objectives. | null | null | 2024-07-12 10:13 |
moneycontrol.com | https://www.moneycontrol.com/news/business/boeing-warns-customers-of-further-delays-on-737-max-12767365.html | Boeing warns customers of further delays on 737 Max | Boeing warns customers of further delays on 737 Max. | Boeing has notified some737 Maxcustomers in recent weeks that aircraft due for delivery in 2025 and 2026 might face additional delays of three to six months, Bloomberg News reported on Thursday, citing people familiar with the matter. Boeing did not immediately respond to a Reuters request for comment. Reuters reported last month citing two industry sources that Boeing informed its suppliers it was delaying a key production milestone for its 737 jet family by three months as Boeing's jet production has slowed sharply in the face of increased scrutiny from regulators, airlines and lawmakers. The planemaker in May had said that deliveries will not increase in the second quarter as originally expected. | null | null | 2024-07-12 08:45 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/oil-rises-on-cooling-us-inflation-strong-summer-demand-12767303.html | Oil rises on cooling US inflation, strong summer demand | Oil rises on cooling US inflation, strong summer demand.Related stories. | Oil prices rose in early Asian trading hours on Friday as signs of strong summer demand and easing inflationary pressures in the world's biggest oil market, the United States, bolstered investor confidence. Brent crude futures rose 37 cents, or 0.4%, to $85.77 a barrel by 0031 GMT. U.S. West Texas Intermediate crude futures rose 50 cents, or 0.6%, to $83.12 a barrel. Both contracts gained in the prior two sessions, but Brent futures were set to decline about 1% week-over-week after four consecutive weeks of gains. WTI futures were virtually unchanged on a weekly basis. U.S. gasoline demand was at 9.4 million barrels per day (bpd) in the week ended July 5, the highest for the week that includes the Independence Day holiday since 2019, government data showed on Wednesday. Jet fuel demand on a four-week average basis was at its strongest since January 2020, according to the data. Strong fuel demand encouraged U.S. refiners to ramp up activity and draw from crude oil stockpiles, supporting prices. U.S. Gulf Coast refiners' net input of crude rose last week to more than 9.4 million bpd for the first time since January 2019, government data showed. WTI front-month futures recorded their steepest premium to the next-month contract since April, a signal of near-term supply tightness. U.S. government data on Thursday showed an unexpected decline in consumer prices in June, stoking hopes that the Federal Reserve will cut interest rates soon. The prospect of easing monetary policy has helped boost sentiment across the commodities sector, ANZ analyst Daniel Hynes wrote in a note. A weaker U.S. dollar has also increased investor appetite, he added. The U.S. dollar index slipped lower for a third consecutive session on Friday, as market participants raised their bets for a September U.S. interest rate cut. | null | null | 2024-07-12 06:42 |
moneycontrol.com | https://www.moneycontrol.com/news/business/adani-ports-to-invest-1-2-billion-in-transshipment-terminal-12767301.html | Adani Ports to invest $1.2 billion in transshipment terminal | Adani Ports to invest $1.2 billion in transshipment terminal. | Adani Ports and Special Economic Zone plans to ramp up its investment to 100 billion rupees ($1.20 billion) to boost its southern India transshipment container port, Bloomberg News reported on Thursday. The investment in Vizhinjam port in the state of Kerala is part of the second phase of the project that is expected to finish by 2028, the report, which cited people with knowledge of the matter, added. Construction of the $900 million port had seen a four month-long standstill from protests in 2022. The port, which has strategic importance for both India and company owner Gautam Adani, an ally of Prime Minister Narendra Modi, will upon completion be the country's first container transhipment hub, rivaling Dubai, Singapore and Sri Lanka, Adani Ports has said. Container lines such as MSC Mediterranean Shipping Co., A.P. Moller - Maersk A/S, and Hapag-Lloyd are being wooed to call in at the port, Bloomberg News reported. Adani Ports did not immediately respond to a Reuters' request for comment. | null | null | 2024-07-12 06:30 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/tesla-delays-robotaxi-rollout-in-blow-to-elon-musks-autonomy-drive-12767258.html | Tesla delays Robotaxi rollout in blow to Elon Musk’s autonomy drive | A Tesla logo is seen at a groundbreaking ceremony of Tesla Shanghai Gigafactory in Shanghai.Related stories. | Tesla Inc. is postponing its planned robotaxi unveiling to October to allow teams working on the project more time to build additional prototypes, according to people familiar with the decision. The roughly two-month delay has been communicated internally, said the people, who asked not to be identified because the information hadn’t been publicly announced. The design team was told this week to rework certain elements of the car, one of the people said. Chief Executive Officer Elon Musk set the initial Aug. 8 date for the event months ago, and optimism about the spectacle has contributed to an 11-day streak of gains that added more than $257 billion to Tesla’s market capitalization. The stock fell as much as 8.3% in intraday trading Thursday after Bloomberg News first reported the delay. The idea of creating an autonomous taxi service has been kicking around Tesla for years, dating at least as far back as when Musk authored a second “master plan” for the company in 2016. The CEO has prioritized the project in recent months over work on an electric vehicle cheaper than Tesla’s most affordable car, the Model 3 sedan. Musk has talked up Tesla’s work on autonomous-vehicle technology for over a decade and convinced customers to pay thousands of dollars for a suite of features the company markets as Full Self-Driving, or FSD. The name is a misnomer — FSD requires constant supervision and doesn’t render Teslas autonomous — but Musk and top engineers have been increasingly bullish about FSD in recent months as the company’s vehicle sales have slowed. Tesla delivered 6.6% fewer cars in the first half of the year, despite the company adding a new model — the Cybertruck — to its lineup. The automaker also produced 14% fewer vehicles in the second quarter than it did a year earlier to help curtail swelling inventory. | null | null | 2024-07-11 22:55 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/bain-capital-to-buy-financial-software-vendor-envestnet-in-4-5-billion-deal-12767231.html | Bain Capital to buy financial software vendor Envestnet in $4.5 billion deal | Berwyn, Pennsylvania-based Envestnet offers software for wealth managers and data for financial institutions and investment research firms..Related stories. | Private equity firm Bain Capital will buy Envestnet in a $4.5 billion deal, with backing from a cohort of investors, including BlackRock and Fidelity Investments, the financial software vendor said on Thursday. Berwyn, Pennsylvania-based Envestnet offers software for wealth managers and data for financial institutions and investment research firms. Its clients include 16 of the 20 biggest U.S. banks and 48 of the 50 largest wealth management and brokerage firms. Reuters exclusively reported earlier this week that the firms were close to a deal that would value Envestnet at close to its stock price. Bain Capital is offering $63.15 per share in cash.Envestnet's stock had closed at $63.07 prior to the Reuters report. Last year, Envestnet added three new directors to end a board challenge from activist investor Impactive Capital that had been pushing the company to improve its performance by cutting costs. Envestnet is currently in a leadership transition. In January, CEO Bill Crager said he would step down from this role and continue with the company as a senior adviser starting in April. The company had explored a sale in 2022 after being approached by potential buyers. Reuters reported in April that Envestnet was again up for sale.Envestnet reported a better-than-expected profit in the first quarter. Last month, it said it was working with heavyweights such as BlackRock, Fidelity Investments, Franklin Templeton and State Street Global Advisors to build custom investment strategies. | null | null | 2024-07-11 21:59 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/govt-appoints-sandeep-kumar-as-director-finance-at-pfc-12767205.html | Govt appoints Sandeep Kumar as Director (Finance) at PFC | "The Government of India appointed Sandeep Kumar as Director (Finance) at Power Finance Corporation Limited (PFC), effective 11 July 2024," it said.. | The government has appointed Sandeep Kumar as Director (Finance) at Power Finance Corporation Limited (PFC), with effect from July 11, 2024. Before this appointment, he was the Executive Director (Finance) at PFC since January 1, 2020 and held the position of Chief Financial Officer (CFO), PFC said in a statement. ”The Government of India appointed Sandeep Kumar as Director (Finance) at Power Finance Corporation Limited (PFC), effective 11 July 2024,” it said. Sandeep Kumar has a distinguished career spanning over 34 years in the power and financial sectors. He holds a Bachelor’s degree in Commerce (Honours) and is a Fellow Member of the Institute of Chartered Accountants of India. He played a pivotal role in the successful roll-out of the Rs 1.12 trillion Liquidity Infusion Scheme (LIS) for the power distribution sector, a key initiative under the Government of India’s Atmanirbhar Bharat programme. | null | null | 2024-07-11 20:35 |
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