Index heavyweights Reliance Industries, Bharti Airtel help Sensex to close higher on Tuesday. The Sensex closed 186 points higher at 40,469.70 , while the Nifty ended the session above 11,900. Yes Bank, M&M were among the biggest losers in the Sensex pack. Shares of telecom majors Bharti Airtel and Vodafone jumped on Tuesday morning after the two announced hike in tariffs from December 1. Vodafone Idea shares closed 35% higher at Rs 6.02 on BSE. Shares of Bharti Airtel gained more than 8% to hit the day’s high at Rs 439.25 on BSE. A look at LIVE Sensex heatmap.
Credit and Finance for MSMEs: Narendra Modi government’s push to MSMEs towards digital technology adoption is finding acceptance. A majority, 51 per cent of small businesses in India have adopted digital means such as online B2B lending, peer-to-peer lending etc., even as the remaining 49 per cent have remained committed to traditional routes including raising capital from friends and family, bank loans, pawnbrokers etc., according to a survey of 400 MSMEs by payment gateway firm Instamojo. “49 per cent of the respondents termed it (digital credit/loan) ‘not much valuable” or ‘least valuable’,” the survey said.
Budget carrier and domestic aviation market leader IndiGo flew fewer passengers in October 2019 while SpiceJet’s monthly passengers flown numbers increased. IndiGo’s market share was down to 47.4% from last month’s 48.2%. On the other hand, SpiceJet’s share rose to 16.3% from September’s 14.7%, according to latest DGCA data. Other major carriers including state-run Air India and Go Airlines also reported a decline in their passenger growth. However, IndiGo is still the market leader with almost every one in two passengers flown by the Rahul Bhatia and Rakesh Gangwal-founded airline. SpiceJet trails with over 16% share. While Indian aviation industry suffered a major setback with the grounding of Boeing 737 MAX earlier this year followed by the shut down of Naresh Goyal-founded Jet Airways in April, the industry has still reported an over 3% passenger growth rise during September 2018 to October 2019, according to the Directorate General of Civil Aviation.
Shares of billionaire Mukesh Ambani-led Reliance Industries soared to a fresh record high on Tuesday, making the oil-telecom conglomerate the first ever firm to cross Rs 9.5 lakh crore market capitalisation. Reliance Industries shares soared more than 3.4% to hit the day’s high at Rs 1,508.45 on BSE. Given the sharp rise in the stock, the market capitlisation of Reliance Industries has now swollen to Rs 9.54 lakh crore, taking the firm closer to the landmark Rs 10 lakh crore figure.
Following the Supreme Court verdict on Essar Steel resolution plan, global steel giant ArcelorMittal said expects to complete the acquisition of the debt-ridden company by the end of this year. ArcelorMittal India Private Limited’s (AMIPL) resolution plan for Essar Steel India Limited (‘ESIL’) has been unconditionally approved by the Supreme Court of India and the approval of AMIPL’s resolution plan is the final procedural step in ESIL’s corporate insolvency process, the company said in a statement. “Completion of the transaction is now expected before the end of the year.
Flight disruptions, fewer tourists, lost work hours and missed school days have come to portray India’s struggles with toxic air quality in its capital city, and the intangible costs may be adding up for an economy grappling with a sharp slowdown. India’s losses from air pollution increased more than four times to $560 billion between 1990 and 2013, according to the World Bank, which attributed the economic burden to the rising costs of public health-care and workforce disruption. Pollution is now being counted among the hidden costs like repelling top corporate talent, according to analysts and industry lobby groups. “This feeds into the broader economic environment,” said Hemant Shivakumar, a New Delhi-based senior analyst at Control Risks that advises clients on political and security risks. “If the air pollution escalates year after year and there’s no response then it’s likely to send investors a different message.”
India slipped six spots on World Talent ranking and now ranks 59th on the IMD index which rated 63 economies on the basis of their attractiveness to develop, attract, and retain highly-skilled professionals. Just ahead of a handful of countries such as Mexico, Brazil, Venezuela, and Mongolia, India’s low ranking is a result of various factors such as pollution, low quality of life, low priority of economy to attract and retain talent and low total public expenditure on education per student. “India’s drop is largely the result of its performance in the Appeal factor … The quality of life remains low at 51st, while the negative impact of brain drain in the economy remains at 31st and prioritization of attracting and retaining talents drops to 41st,” the report said on Monday.
The government will stand to lose over Rs 2 lakh crore (Rs 2,07,462 crore) if Vodafone Idea collapses under the burden of adjusted gross revenue (AGR) dues post the Supreme Court’s October 24 order. Apart from the Rs 44,000-crore dues which the company put as its dues on account of licence fee and spectrum usage charge (SUC) as a result of the methodology upheld by the apex court, the company needs to pay around Rs 1,57,750 crore by way of deferred spectrum installments to the government till 2031. Another Rs 5,712 crore is locked in litigation over one-time spectrum charge.
The UN’s nuclear watchdog said Monday that Iran’s stock of heavy water for reactors has surpassed the limit set under its agreement with world powers. The International Atomic Energy Agency said in a statement that Iran’s heavy water production plant was in operation and that its stock of heavy water reserves was 131.5 tonnes, above the 130-tonne limit. “On 17 November, the Agency verified that the Heavy Water Production Plant (HWPP) was in operation and that Iran’s stock of heavy water was 131.5 metric tonnes,” an IAEA spokesperson said. It was the first time the agency has recorded a volume greater than the level agreed upon as part of the Joint Comprehensive Plan of Action (JCPOA) reached in 2015 with Britain, China, France, Germany, Russia, the United States and the European Union.
Tata Steel plans to cut up to 3,000 jobs across its European operations, the company said on Monday, as the sector wrestles with excess supply, weak demand and high costs. Earlier, a source close to the discussions told Reuters around 3,000 people would be affected after the group’s European chief executive Henrik Adam said Tata was planning to announce job cuts across the European business without giving figures. In a statement, Tata said it was urgently seeking to improve performance by increasing sales of higher value products, efficiency gains and reducing employment costs by cutting employee numbers by up to 3,000 across its European operations.
Shares of telecom majors Bharti Airtel and Vodafone jumped on Tuesday morning after the two announced hike in tariffs from December 1. Vodafone Idea shares jumped nearly 20% to hit the day's high at Rs 5.35 on BSE. Shares of Bharti Airtel gained more than 5% to hit the day's high at Rs 430.80 on BSE. The Sensex is up about 90 points to 40,375, while the Nifty is trading above the 11,900-mark. A look at LIVE Sensex heatmap.
OPEC’S share of India’s oil imports fell to 73% in October, its lowest monthly share since at least 2011, tanker data from sources showed, as refiners shipped in fuel from the United States and other suppliers. India, which usually imports about 80% of its needs from members of the Organization of the Petroleum Exporting Countries (OPEC), has been diversifying its sources of oil as local refiners have upgraded plants to process cheaper crude grades. India, the world’s third-biggest oil importer, shipped in 4.56 million barrels per day (bpd) of oil in October, about 3.3% less compared with a year ago, data showed. Of that, it bought 3.43 million bpd from OPEC.
The government may bring some changes in the contentious citizenship amendment bill, which lapsed following the dissolution of the last Lok Sabha, by incorporating a few new provisions, including defining the term “illegal immigrants”, officials said. The bill seeks to amend Citizenship Act, 1955 to grant Indian nationality to Hindus, Sikhs, Buddhists, Jains, Parsis and Christians who come to India after facing religious persecution in Bangladesh, Pakistan and Afghanistan even if they don’t possess proper documents.
Despite a string of downgrades post the disappointing Q2FY20 results and chances of earnings growth not living up to estimates, India’s markets continue to trade at exalted valuations. The Nifty now trades at 22.4 times FY20 estimated earnings, on a free-float basis while it trades at 17.7 times estimated earnings for FY21. By current reckoning, net profits for the Nifty 50 are expected to grow by 11% FY20, down from 18% prior to the earnings season, according to Kotak Institutional Equities. As analysts at Jefferies noted, earnings estimates have come off by 3% in the last month alone even though the corporation tax rate has fallen, a fact that has prompted the brokerage to stay cautious on the markets at a time when valuations are elevated.
The outstanding credit to the MSME sector by scheduled commercial banks for FY19 increased by 14.08 per cent from FY18. The amount for FY19 stood at Rs 15.10 lakh crore (Rs 15,10,650.52 crore) up from Rs 13.24 lakh crore (Rs 13,24,239.35 crore) in FY18 and Rs 12.96 lakh crore (Rs 12,96,398.82 crore) in FY17, MSME minister Nitin Gadkari said in a written reply to a question in Rajya Sabha on Monday quoting RBI data. The number of MSME accounts linked with outstanding credit during the period increased from 233.63 lakh in FY17 to 261.65 lakh in FY18 and 320.68 lakh in FY19.
Gold storage limit in India as per Income Tax act 1961: The Union government is said to be mulling a plan to put a limit on the amount of unaccounted gold one can hold. Reports claimed recently that the government was planning to introduce a gold amnesty scheme and that those holding unaccounted gold beyond a certain limit would be penalised. In the days following the reports, scores of readers were concerned about the amount of gold they can keep at home without worrying about an Income Tax raid as per the current rules. FE Online asked experts for details on these concerns of readers. Take a look.
The upcoming month of December could be the month when India’s largest incumbent telecom operators finally break free of the clutches of high intensity competition by Reliance Jio. Mukesh Ambani’s relatively newer entrant in the Indian telecom industry has forced the other operators to bleed profit margins in trying to match its dirt cheap tariff offers. But no more, telecom companies Bharti Airtel and Vodafone Idea seem to be saying now. Both Airtel and Vodafone Idea on Monday said they will raise mobile services tariffs from the month of December 2019 to remain viable and recoup from financial stress.