Business News at 10:00 am on 15th April, 2024

Let’s begin – As input prices, which were benign for a few quarters, turn inflationary, the spectre of shrinking packs looms large within the fast-moving consumer goods segment. This summer has seen the trend make its way back, albeit slowly, and in select categories. Companies have been cautious when reducing pack sizes, describing the move as a way to democratise consumption and tap into newer consumer segments. Consider this: Bottled water brand Clear, popular at events, summits, conferences, etc., has been aggressively pushing its 200-ml pack into retail outlets of late, positioning it as a convenient, on-the-go consumption unit that can easily be held in one’s hand, fit into a purse, carry bag or shoulder bag.

Moving on – Despite the central government borrowing a record amount from the market in the previous fiscal, there was no devolvement on prime dealers for the first time in almost two decades since 2005-06. Additionally, there was no cancellation of government securities auctions in 2023-24, according to the Reserve Bank of India data. “The RBI was slightly liberal with its pricing; it was not too conservative on cut-offs,” Vikas Goel, managing director and CEO at PNB Gilts, told FE. “There was strong demand for longer-dated securities, such as 30-, 40-, 50-year papers. The demand mainly came from insurance companies and that demand kept longer yields depressed,” he further added.

Up next – Public sector banks are likely to post lower fresh slippage ratio than private banks in FY25, experts say. Slippages essentially denote the fresh bad loans in a year. Domestic rating agency ICRA, in its banking outlook for FY25, said PSBs’ fresh slippage ratio would be at 1.5% in FY25 as against 2.2% for private banks. In FY24 too, PSBs’ fresh slippage ratio will likely be at 1.3%, lower than 2% of private banks. The primary reason for the trend is that private banks have a higher share of retail unsecured credit card, personal loans in their portfolio and also have exposure to the micro, small and medium enterprises, he said.

Meanwhile – The BJP promised an overhaul of existing economic and commercial laws, including those dealing with taxation, to meet the needs of future growth in its election manifesto released on Sunday. “We are committed to launch an exercise to completely revamp our economic and commercial legislations to suit our economic needs,” the party said. Apart from commercial legislations, the document also hinted at changes in tax laws as part of its work plan for the next five years. While indirect taxes have undergone a change through goods and services tax, a similar relook at the direct tax law is also being talked about. Within direct tax, the focus would be on the levy of capital gains.

Moving ahead – Domestic contract manufacturer Dixon Technologies’ revenue from operations is expected to have risen to around `18,000 crore in FY24, which is a near 50% year-on-year growth, according to people in the know. A significant increase in the company’s revenue in FY24 can be largely attributed to growth in mobile and electronic manufacturing services business. The company manufactures smartphones and feature phones for companies such as Xiaomi, Samsung, Motorola, Jio, itel, among others, at its four plants in Noida. Nearly half of the company’s annual revenue of `18,000 crore during the year is expected to have come from manufacturing and assembling mobile phones and their accessories, sources in the know said.

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In major news – At a time when Indian markets are at all-time highs, bulls could find themselves caught in the crossfire due the escalation in tensions between Iran and Israel this week. The risk of a broader conflict in the Middle East after Iran’s attack on Israel on Saturday may trigger volatile swings in equity market, as rising crude oil prices could unnerve investors. In addition, there are chances that investors may seek to book some profits and take some risk off the table. Iran fired over 300 drones and missiles towards Israel on Saturday night, in response to an alleged Israeli strike on its consulate in Syria which killed several people, including 2 Iranian army generals.
Lastly – GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a muted opening. GIFT Nifty traded lower as the index was down 134.50 points or 0.60% at 22,452.50 indicating a weak start for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 lost 234.40 points or 1.03% to settle at 22,519.40, while the BSE Sensex closed 793.25 points or 1.06% lower at 74,244.90. The key stocks to watch in trade are Tata Consultancy Services, Dixon Technologies, Varun Beverages, Hindustan Unilever. Vodafone Idea, Rail Vikas Nigam, Bharti Hexacom, and State Bank of India among others.