Business News at 05:30 pm on 10th July, 2024

Let’s begin…Centre has reportedly summoned the management of One97 Communication, the parent company of Paytm, over the reports of ‘forced termination’ of staff. According to a news report by Moneycontrol, Regional Labour Commissioner of Bengaluru has issued summons to One97 Communication management. The notice by the government body, which falls under the Ministry of Labour and Employment, was issued after a series of complaints lodged by staff with the Ministry of Labour and Employment after reported job cuts. The employees have alleged the company of violating the rules and terminating them without any pay. The report quoting the Paytm spokesperson said that the “transition of some employees” was “difficult”. The company also said that it would take all the “feedback”.

Moving on, Rajasthan Deputy Chief Minister Diya Kumari, who holds the finance portfolio, presented the state budget 2024-25 in the assembly. She had presented a Vote on Account (Interim Budget) in the assembly on February 8. Presenting the Budget, Kumari said that the BJP government in the state is working on 10 resolutions with the aim to make the state a 350 USD billion economy. Some of the key takeaways from the budget include- Rs 15,000 crore will be spent on supplying tap water to 25 lakh rural houses this year, and four lakh vacancies will be filled in five years; youth policy will be made. Under Lakhpati Didi Scheme, 15 lakh women will be brought into the category of Lakhpati Didi.

In other news, Railway Minister Ashwini Vaishnaw took to X, formerly Twitter, to address the concern surrounding the working conditions of loco pilots which have also been highlighted by the Leader of Opposition, Rahul Gandhi. In his post, the minister wrote, quote, ‘Loco pilots are important members of the railway family. Since there is a lot of misinformation and theatrics by opposition to demotivate our Loco pilots, let me make things very clear’, end quote. Talking about the improved working conditions of the loco pilots, Vaishnaw said that the duty hours of loco pilots are monitored carefully, adding that they are given rest after trips. He said that the average duty hours of the loco pilots are maintained within prescribed hours.

Next up, Domestic air passenger traffic in June increased by 6.3% compared to the previous year, and showed a notable 10.4% rise from pre-pandemic levels, ratings agency ICRA said July 9. ICRA also reported a 7% YoY increase for domestic airlines, although it noted a 3% decline compared to May 2023. A report indicates that the momentum in air passenger traffic is set to continue, with airlines projected to incur a net loss of Rs 3,000-4,000 crore for the fiscal year ending March 2025, mirroring trends seen in the previous year. In June, domestic air passenger traffic was estimated at 132.8 lakh, slightly down by 3.7% from May but showing a 6.3% increase from the same period last year.

In another development, Rail Vikas Nigam Limited on July 9 announced it has secured the lowest bid for the design, supply, erection, testing, and commissioning of specific power systems on the Kharagpur-Bhadrak section within the Kharagpur division of South Eastern Railway. The contract pertains to a 132 KV Traction Substation, Sectioning Post, and Sub-Sectioning Post in the 2x25KV System, as disclosed in a filing to the stock exchanges by the company. The contract, costing about Rs 203 crore, is expected to be completed in 18 months. Separately, the DMRC and Rail Vikas Nigam Limited signed a memorandum of understanding this month to collaborate as a project service provider for design, construction, and consultancy projects in India and abroad, PTI reported.

Moving on, Prime Minister Narendra Modi has expressed confidence in the strengthening of India-Austria friendship, stating that it will grow even stronger with time. He made this remark during a private meeting with Austrian Chancellor Karl Nehammer, ahead of their official discussions on Wednesday aimed at fully realizing the potential of their bilateral partnership. Modi arrived in Austria on Tuesday evening from Moscow for a two-day visit, marking the first visit by an Indian Prime Minister in over 40 years. Upon his arrival, he was welcomed at the airport by Austrian Foreign Minister Alexander Schallenberg. MEA Spokesperson Randhir Jaiswal said on X that the meeting between PM Modi and the Austrian Chancellor marks a significant milestone in the India-Austria partnership.

Lastly, The benchmark equity indices closed the trading session on a lower note on July 10. The BSE Sensex pared off 420 points or 0.53% to finish the day’s trading at 79,924.77, while the NSE Nifty 50 closed 109 points or 0.45% lower at 24,324.45. Bank Nifty closed in the red down 380 points or 0.72% lower at 52,189. Following the trend, Nifty Midcap 100 closed 156.40 points or 0.27% lower at 56,921.15. Asian Paints, SBI Life Insurance, Divi’s Lab, HDFC Life Insurance, and Grasim Industries were the top gainers in the Nifty 50.