Business News at 10:00 am on 17th January, 2024

Let’s begin. Inflation in India is moderating and steadily approaching the central bank’s 4% target while growth prospects remain robust, Reserve Bank of India chief Shaktikanta Das said on the sidelines of the World Economic Forum annual meeting. Das in a fireside chat at Davos organised by Invest India said, quote, “Inflation has come under control and is within the band we have, which is 2% to 6%. Target is 4%,” unquote. He added that Core inflation has started steadily coming down and gives confidence that monetary policy is working. Annual retail inflation rose the fastest in four months in December but core inflation, which strips out volatile food and energy prices, dropped to a four-year low of 3.8%.

On to commodities. The government on Tuesday announced 50% export duty on molasses to ensure its adequate availability for local ethanol producers and extended the validity of lower import duties on edible oils by another year. The existing concessional import duty on crude and refined edible oils – palm, soyabean, and sunflower – has been extended for one more year till March 31, 2025 well in advance to clamp down on any inflationary pressures in the key commodity just before the country heads into general elections. The lower duties on edible oils were earlier valid till March 31, 2024, will now continue till March 2025. The duties on crude palm, soybean and sunflower remains zero.

Meanwhile, Delhi International Airport on Tuesday informed the civil aviation ministry that the fourth runway at the airport, which is CAT III-enabled and under refurbishment, will be functional by January 26. In a letter to the ministry on Tuesday, Dial said that the company is targeting to complete all activities by January 19 for inspection by the Directorate General of Civil Aviation. As reported earlier, Jyotiraditya Scindia had on Monday directed Dial to expedite the operationalisation of the CAT III-enabled fourth runway, in addition to the existing CAT III-enabled runway, to avoid delays due to dense fog in Delhi. Currently, there are four runways at the Delhi airport. Post-January 26, there would be two CAT III-enabled runway.

Moving on. The direct-to-mobile technology, which would pave the way for streaming television and video content directly to mobile phones, without an internet connection, is expected to hit the devices of Indian smartphone users by next year, according to top government officials. Once implemented, users will not only be able to stream video content whether it is live channels, sports etc, without having a SIM card on their phones, but also be able to get emergency alerts, public safety messages, social services, among other things, without needing to rely on the telecom networks. The technology will also be useful in providing education content to rural areas and bridging the digital divide in the country.

Over to banking. On the heels of the Centre discouraging off-budget funding of projects by the states, a Reserve Bank of India Working Group on state government guarantees has recommended a slew of measures including a ceiling on their annual incremental guarantees, charging minimum fees and disclosing such liabilities upfront. The working group comprising members from the Ministry of Finance, Comptroller and Auditor General of India and some state governments has recommended that state governments might consider fixing a ceiling for incremental guarantees issued during a year at 5% of revenue receipts or 0.5% of Gross State Domestic Product, whichever was less.

Next up, industry. As many as 35 major domestic and international retail brands entered 14 tier-II Indian cities in the first three quarters of calendar year 2023, consultancy CBRE South Asia said in a report on Tuesday. The trend points to the growing affinity of brands in these markets, CBRE said, led by a digital boom, growing aspirations and a surge in discretionary purchases. The cities include Chandigarh, Jaipur, Indore, Goa, Mangalore, Kochi, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Vizag, Mysore and Coimbatore. The brands that marked their presence in these markets include Croma, Armani Exchange, Malabar Gold and Diamonds, Reliance Smart, Tanishq, H&M, Marks and Spencer, GAP, Starbucks, Pizza Express and Under Armour among others.

Lastly, stocks in focus. These include HDFC Bank, Adani Green, L&T Technology, IREDA, GMR Airports, RVNL, and PNC Infratech. Adani Energy Solutions announced a notable over 14% increase in sales for the third quarter of fiscal year 2024. The company also revealed a robust pipeline, with plans to deploy 2.1 crore smart meters, reflecting a substantial contract value of Rs 25,100 crore. On the other hand, Indian Renewable Energy Development Agency has joined forces with Indian Overseas Bank to facilitate co-lending and loan syndication for a diverse range of Renewable Energy projects across the country. G R Infraprojects, through its subsidiary, has successfully executed a concession agreement with the NHAI for the development of highways in Uttar Pradesh.