Jet fuel prices in India have been increased for the fourth consecutive month, rising by 5%. This will put additional financial strain on airlines, as jet fuel makes up 40% of their operating costs. Additionally, the price of commercial cooking gas has been raised by Rs 209 per 19-kg cylinder, in line with international benchmarks.
Italy's sovereign debt risk premium briefly hit its highest level in over six months on Thursday as investors repositioned for lower growth and a higher public deficit, and shifted their focus to negotiations for European Union fiscal rules.
Noida International Airport: Christoph Schnellmann, CEO of Noida Airport, attributed the optimistic outlook to the rapid rebound of Indian air travel and substantial aircraft orders placed by Indian carriers.
Haldiram's surpassed PepsiCo in India's snack market roughly five years ago to become the country’s largest snack brand. Since then, the gap in sales has continued to widen.
During an earnings conference following the first quarter, Infosys' Chief Financial Officer, Nilanjan Roy, indicated that roll out of annual hikes was under "active consideration."
The Australian dollar was pinned near a fresh 2023 low on Thursday as a major support level crumbled under a relentless surge in Treasury yields, while local retail sales and jobs data added to the case for an extended rate pause next month.
The 30-share BSE Sensex rose by 173.22 points or 0.26 per cent to settle at 66,118.69. The Nifty gained 51.75 points or 0.26 per cent to end at 19,716.45. Among the Sensex firms, Larsen & Toubro, ITC, Sun Pharma, Maruti, Reliance Industries, Axis Bank, IndusInd Bank and Hindustan Unilever were among the gainers. Titan, State Bank of India, ICICI Bank, HDFC Bank, Tata Steel and Nestle were the major laggards.
India plans to sell 50-year bonds for the first time to meet the growing demand from insurance and pension funds. This move is aimed at extending the nation's yield curve and reducing the government's reliance on bank purchases to fund its record borrowings. The sale reflects the increasing influence of life insurers and pension funds in India's sovereign debt market.
JP Morgan recently announced that India would be added to its Government Bond Index Emerging Markets global index suite in June 2024, potentially bringing in over $20 billion of stable flows.
Shares hit a three-week low as concerns over higher interest rates and their impact on growth continue to weigh on investor sentiment. The Nifty 50 fell 0.5% to 19,558 points, while the S&P BSE Sensex was down 0.6% to 65,557 points. Both benchmarks are down about 3% after reaching all-time highs earlier this month.
Hui Ka Yan, the chairman of China Evergrande Group, has been placed under police control and is being monitored at a designated location, according to sources. The reason for his control is unclear, but it does not imply that he will be charged with a crime. Hui, once one of China's most politically connected businessmen, has seen a significant fall from grace amid President Xi Jinping's crackdown on excessive leverage in the real estate sector.
Adani Ports and Special Economic Zone Ltd plans to buy back up to $195 million of its 2024 bond, seeking to move on from allegations made by a US shortseller. The company will pay $975 for every $1,000 in principal for debt tendered by October 11, with the offer price dropping to $965 per $1,000 thereafter. The tender offer expires on October 26.
The Indian government has reassured citizens that the Aadhaar system, along with other applications under the "India stack," remains highly protected against cyberattacks. Abhishek Singh, CEO and MD of Digital India Corporation, stated that the government invests significant efforts in ensuring the security and privacy of citizens' data.
Pharmaceutical company Strides Pharma has received board approval for a scheme of arrangement to create a separate contract development and manufacturing entity called OneSource. The new entity aims to become a specialty pharmaceutical CDMO powerhouse, offering services in biologics, oral soft-gels, complex injectables, and sterile injectables. The scheme will merge Strides' oral technology business, Steriscience's sterile injectables business, and Stelis' biologics and high-end drug devices business. The proposed demerger is expected to be completed by April 1, 2024, subject to necessary approvals. OneSource is projected to have a revenue of around Rs 7,550 crore.
Delta Corp's stock fell 20% on Monday, to its lowest level since January 2021, after the firm said that it has received a notice to pay Rs 11,140 crore ($1.3 billion) in tax arrears. Delta, which is worth roughly Rs 47 crore, also stated that it and two of its subsidiaries were informed of an additional tax deficiency totaling Rs 5,680 crore between July 2017 and March 2022.
India's 2,000-rupee banknote, introduced in 2016 to remonetize the economy, will be withdrawn by the Reserve Bank of India on September 30. Despite the May announcement, there are still almost 240 billion rupees ($2.9 billion) worth of the notes in circulation. While the notes will remain legal tender, they will not be accepted for transactions and can only be exchanged with the RBI.
Experts predict that the Reserve Bank of India (RBI) is likely to maintain the status quo on policy rates at its upcoming monetary policy review meeting in October. The decision is expected due to high retail inflation and the US Federal Reserve's hawkish stance. The RBI has kept the rates unchanged since February, and inflation is still above the target level.
The market valuation of HDFC Bank plummeted by Rs 99,835.27 crore to Rs 11,59,154.60 crore. Shares of the company fell by nearly 8 per cent last week. The valuation of Reliance Industries plunged Rs 71,715.6 crore to Rs 15,92,661.42 crore. The company's shares declined over 4 per cent past week. However, Hindustan Unilever added Rs 2,913.49 crore taking its valuation to Rs 5,83,239.04 crore. The mcap of TCS climbed Rs 1,024.53 crore to Rs 13,18,228.14 crore.
Former US treasury secretary Larry Summers has stated that India needs to achieve an 8% growth rate in order to bring about significant changes in the lives of its people. He also called for increased capital and expanded mandates for multilateral development banks (MDBs) such as the World Bank.
Delta Corp and its subsidiaries, which operate casinos in Goa and Sikkim as well as online gaming platforms, have been advised by GST authorities to pay over Rs 16,800 crore in tax claims. This is one of the highest GST claims and follows a similar demand on Gameskraft. Delta Corp has stated that the notice is arbitrary and contrary to the law, and they will pursue legal remedies.
The Indian government has suggested that taxpayers can adjust earlier demands with this year's refund claims. The Central Board of Direct Taxes explained that taxpayers can make a representation to agree, disagree, or clarify the status of the demand before the refund is adjusted. This measure aims to facilitate the timely issue of refunds and clean up pending demands.
The Indian government is "comfortable" with the amount of red lentils imported from Canada amid tensions between the two countries. India has received nearly one lakh tonnes of lentils at its ports, which is sufficient to meet the country's annual consumption of 23 lakh tonnes. The government is considering continuing the zero import duty on lentils beyond March 2024 to encourage overseas growers.
Bhargav Dasgupta, the CEO of ICICI Lombard General Insurance, has resigned from his position to take on the role of Vice President (Market Solutions) at the Asian Development Bank. He cited new insurance regulations that limit a CEO's tenure to a maximum of 15 years as the reason for his departure. He expressed confidence that a successor would be appointed soon, and his resignation was effective immediately.
Lupin is set to acquire five legacy pharmaceutical brands, including Piclin, Menoctyl, Sucramal O, Pyridium, and Distaclor, in the fields of gastroenterology, urology, and anti-infectives from Menarini, along with trademark rights. The deal, valued at approximately Rs 100 crore, was announced through a BSE filing, with no further financial details disclosed.
The Indian government, in its August economic report, expressed comfort with a projected 6.5% growth for 2023-24. It acknowledged concerns about rising global crude oil prices and the August monsoon deficit but highlighted positive factors like corporate profitability, private sector investments, and construction activity. While it recognized risks like a stock market correction and geopolitical developments, it believed that the impact on India's economic activity would likely be limited.
The Insolvency & Bankruptcy Board of India (IBBI) has revised its regulations to allow more time for the submission of claims, benefiting creditors, especially in the real estate sector. Under the new rules, claims can be submitted within 90 days from the insolvency commencement date (ICD) or the date of the latest request for a resolution plan (RFRP), whichever is later, with reasons for any delays.
Ahmedabad-based Nirma is set to acquire Glenmark Life Sciences (GLS), a subsidiary of Glenmark Pharma, for Rs 5,652 crore. This move marks Nirma's entry into the active pharmaceutical ingredient (API) sector and expands its pharmaceutical portfolio, which includes injectables, parentals, and ophthalmic products. GLS specializes in developing APIs for various therapeutic segments.
The Indian government plans to restrict imports of IT hardware components worth billions of dollars from China in an effort to boost local sourcing. With the implementation of a production-linked incentive scheme for IT hardware and an import management system, the government aims to create a stronger manufacturing ecosystem for devices and servers in India.
JPMorgan will include India in its emerging market debt index, potentially attracting billions of dollars into the Indian economy. India's government bonds, valued at $330 billion, will be incorporated into the index starting June 28, 2024, in 1% increments until reaching a maximum weight of 10%. This decision follows India's efforts to enter global bond indexes by removing foreign investment restrictions in 2020.
The share of mutual fund investments in the mix of bank deposits and mutual funds reached a record 20% in August 2023, up from 13% in March 2020. Despite the lower returns offered by bank deposits, investors are willing to take risks with mutual funds. The decrease in interest rates during the pandemic led investors to put more funds into mutual fund schemes, resulting in a significant increase in assets under management (AUM).
The US Federal Reserve's hawkish stance on interest rates caused a sharp decline in the Indian stock market. The Sensex dropped by 571 points, losing around 1,600 points in three sessions. The Nifty also fell by 159 points. Rising crude oil prices, a weak rupee, and selling by foreign investors further contributed to the decline.
India's suspension of visa services to Canadian citizens has raised concerns among technology companies, professionals, and entrepreneurs. While there may be delays in new contracts, the impact on ongoing projects by Indian IT companies in Canada is expected to be limited. However, if Canada also stops visa applications, the implications could be more significant.
The finance ministry in India has stated that there is no distress in household savings, despite some discussions suggesting otherwise. The ministry argues that changing consumer preferences for different financial products is the main reason for the overall picture of household savings. Data shows that household gross financial assets increased by 37.6% between June 2020 and March 2023, while gross financial liabilities increased by 42.6%.
The Reserve Bank of India (RBI) has proposed significant changes in the rules regarding wilful defaulters, including allowing non-banking financial companies (NBFCs) to classify such borrowers. Under the new proposal, borrowers with an outstanding loan of Rs 25 lakh or more, unpaid for six months, could be classified as defaulters and barred from joining any company board.
The Delhi High Court has rejected PepsiCo's request to restrain Parle Agro from using the tagline "For The Bold" on its B Fizz bottles. PepsiCo argued that it holds a valid trademark registration for the tagline, but Parle claimed that the tagline is merely descriptive and does not indicate the origin of the goods.
Cisco is buying the cybersecurity firm Splunk in a $28 billion deal as it bolsters its defences against potential security threats that may be heightened by the widening use of artificial intelligence. The Silicon Valley tech giant will pay $157 per Splunk share. "Our combined capabilities will drive the next generation of AI-enabled security and observability," Cisco chair and CEO Chuck Robbins said.
The banking system in India faced a liquidity deficit of nearly Rs 1.5 lakh crore on Wednesday, primarily due to outflows related to advance tax payments and preparations for GST remittances ahead of the second quarter's end. The Reserve Bank of India (RBI) announced that it had provided liquidity support of Rs 1.5 lakh crore on Monday.
The US Federal Reserve decided to keep interest rates unchanged but adopted a more hawkish stance. They anticipate an additional rate increase by the end of the year, maintaining a benchmark overnight interest rate peaking in the 5.5-5.75% range, just a quarter of a percentage point above the current range. However, their updated projections show rates falling only half a percentage point in 2024 compared to previous expectations.
Asia Healthcare Holdings (AHH), backed by TPG, has acquired a majority stake in the Asian Institute of Nephrology and Urology (AINU) for Rs 600 crore. AINU, established in 2013 by a team of urologists and nephrologists, operates seven hospitals across several locations in India and specializes in urology and nephrology. This acquisition marks AHH's entry into this specialty segment and represents its fourth specialty focus area in healthcare delivery chains.
The Federal Reserve has decided to keep its primary interest rate unchanged at 5.25%-5.5% in an effort to achieve a "gentle landing" for the US economy. The central bank aims to cool down inflation without causing a severe recession. The Federal Reserve has been implementing a series of interest rate hikes since March 2022 to slow down the economy and rein in inflation. While progress has been made, certain service costs are still increasing at a higher rate than before the pandemic.
Gujarat-based stainless steel and special steel manufacturing company, Mangalam Alloys Ltd, plans to raise Rs 54.91 crore through its SME IPO. The company intends to use the funds for business expansion, working capital requirements, and general corporate purposes. The IPO includes up to 68,64,000 equity shares and will be listed on the Emerge Platform of the National Stock Exchange.
Zuckerberg said India is leading the world on how people and businesses have embraced messaging as a better way to get things done, as the social media giant unveiled a slew of new tools aimed at supercharging businesses using WhatsApp. Announcing the line-up of key offerings for WhatsApp, Zuckerberg said the company has continued to innovate with its messaging formats, group chats and broadcast channels.
HDFC Bank, India's leading private lender, has warned that its merger with HDFC Ltd will negatively impact its financial metrics, including margins and bad loan ratios. The bank's gross bad loan ratio is expected to increase from 1.2% to 1.4% post-merger, while excess liquidity from the merger will drag down net interest margins by around 25 basis points.Indian markets surged on Tuesday, with the Sensex closing above 80,000 points, fueled by a global rally following Donald Trump's victory...
