Exports to touch $1 trillion by FY28: Commerce Secretary
Commerce Secretary BVR Subrahmanyam said on Wednesday merchandise exports are likely to touch $1 trillion by 2027-28 and the government has laid down a roadmap to achieve that number.
The commerce ministry is aiming at $419 billion worth of exports this fiscal and a detailed analysis has been carried out and the target has been disaggregated at the level of country, commodity, region and states across 31 commodity groups, a PTI report noted.
Franklin Templeton MF says it returned ₹21,000 crore to investors
Franklin Templeton Mutual Fund said on Wednesday it has returned over ₹21,000 crore to investors from six shuttered debt schemes till date.
This accounts to nearly 84% of assets under management as of April 23, 2020, when the fund announced to shut its six debt mutual fund schemes citing redemption pressures and lack of liquidity in the bond market, according to a PTI report.
Sensex, Nifty end flat, Tata Steel gains 4%
Equity benchmark Sensex and Nifty ended on a flat note on Wednesday amid profit bookings at higher levels.
Sensex ended 0.05% lower at 54,525.93, while NSE Nifty climbed 0.01% to 16,282.25.
Tata Steel was the top gainer in the Sensex pack, climbing nearly 4%, followed by PowerGrid, NTPC, Reliance Industries and Bajaj Finserv, PTI reported. Kotak Bank, Bajaj Auto and Sun Pharma were among the laggards.
Indian NGOs received foreign funding worth over ₹49,000 crore in last 3 years
More than 18,000 Indian non-governmental not-for-profit groups have received foreign funding of over ₹49,000 crore in the last three years, according to Union Minister of State for Home Nityanand Rai.
Rai noted that prior to the enactment of the Foreign Contribution (Regulation) Amendment Act, 2020, (FCRA) exclusive FCRA accounts could be opened in any branch of scheduled banks, according to PTI.
India in talks to buy 50 million doses of Pfizer’s vaccines
India is reportedly in talks to buy 50 million doses of Pfizer and German partner BioNTech SE’s COVID-19 vaccines, according to a report by Wall Street Journal.
Pfizer did not respond immediately to Reuters’ request for a comments, and is said to have not yet sought permission for the use of its vaccine in India, a Reuters report noted.
Rebound in fuel demand to boost earnings of state oil firms: Moody’s
The earnings of state-owned oil firms including IOC, BPCL and HPCL is likely to be boosted in the next 12-18 months, as gradual easing of pandemic restrictions will cause a rebound in economic activity and fuel demand, according to Moody’s Investors Service.
Moody’s added that while earnings stability of marketing operations will help offset low refining margins, rising fuel demand will in turn increase refinery throughput, PTI reported.
Sebi simplifies procedure to make fee payments for public issues
Markets regulator Sebi on Wednesday eased operational procedures for paying fees for filing public issues through the payment gateway provided on its intermediary portal.
The intermediaries will now also be able to generate e-challans to be shared with companies or entities making the payment, according to a PTI report.
India’s fintech sector attracted record $2 billion in H1 2021
Fintech firms in India attracted a record amount of over $2 billion in the first half of 2021, matching its total funding in 2020, according to a report by global consultancy firm KPMG.
The record investments were led by fundraises by merchant platform Pinelabs, credit card payments firm Cred, Razorpay, and Bharatpe, PTI reported citing the report.
BSE rolls out surveillance measures to curb stocks volatility
The Bombay Stock Exchange (BSE) on Wednesday introduced new measures to surveil certain stocks having a market capitalisation of less than ₹1,000 crore, aimed at curbing excess volatility in small- and mid-cap stocks.
Under the framework, the shortlisted will be subjected to additional periodic price limits of weekly, monthly, and quarterly, PTI reported.
Oracle Cloud gets MeitY empanelment
The Ministry of Electronics and Information Technology (MeitY) on Wednesday empaneled software giant Oracle as a cloud infrastructure solutions provider, following a rigorous audit.
The move is said to help the company tap into governments and public sector entities in the country more aggressively, according to a PTI report.
Explained | Factoring Regulation (Amendment) Bill, 2020
The Parliament this week passed into law the Factoring Regulation (Amendment) Bill, 2020, which is an amended version of the Factoring Regulation Act, 2011. The new law is expected to improve the availability of credit to micro, small and medium scale enterprises (MSMEs) since more non-banking financial companies (NBFCs) will now be eligible to offer factoring services to MSMEs.
Privatisation of PSUs back on track after COVID-caused setbacks: DIPAM Secretary
The Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said on Wednesday disinvestment of public sector companies is back on track after setbacks induced by the COVID-19 pandemic, allowing the council to conclude a host of transactions by March-end.
Pandey said the change of ownership and control would boost the valuations of several companies including Air India, BPCL, Shipping Corp of India and Pawan Hans, according to a PTI report.
PwC India to create 10,000 jobs over five years
Global consultancy firm PwC’s India arm is all set to pump in ₹1,600 crore and create 10,000 jobs in the country in the next five years, PTI reported.
The firm also said it will increase its campus hiring by over five times in the same period under its new business strategy ‘The New Equation’.
Govt expects "very robust" tax revenue this fiscal: Revenue Secretary
Revenue Secretary Tarun Bajaj said on Wednesday the government is expecting “very, very robust” tax revenue in the current fiscal on the back of better-than-expected corporate sector performance.
Bajaj also acknowledged the high GST rates are impacting the auto sector, and said the GST Council would look at solutions to bring down rates which are very high, take out some items from thr tax-exempt category and correct the inverted duty structure, PTI reported.
ReNew acquires two clean energy projects worth ₹2,850 crore
Renewable energy company ReNew Power on Wednesday announced acquisitions of two clean energy projects worth ₹2,850 crore.
The company will buy L&T’s Uttaranchal Hydropower Ltd., which owns the Singoli Bhatwari Hydroelectric Project, from L&T Power Development Ltd., a wholly-owned subsidiary of the engineering and construction firm L&T, PTI reported.
Pizza Hut, KFC operator Sapphire Foods files IPO papers with Sebi
Sapphire Foods, the brand operating fast food chains KFC and Pizza Hut, is said to have filed draft papers with Sebi to raise funds through an initial public offering (IPO).
The share-sale will entirely be an offer-for-sale of 17,569,941 equity shares by promoters and existing shareholders, according to the draft red herring prospectus, PTI reported.
Zomato shares climb 5% on strong Q1 revenue growth
Food delivery startup Zomato’s shares rose 5% on Wednesday as the company posted strong revenue growth figures in the June-ended quarter, and investors looked past a widened quarterly loss.
The startup made a stellar market debut on July 23.
The company’s first-quarter gross orders grew more than four times to ₹45.4 billion from the same period last year, the company said in a regulatory filing, according to Reuters.
Copper prices fall on strong dollar, easing supply worries
Copper prices fell on Wednesday hurt by a strengthening U.S. dollar and easing supply as the possibility if a strike at Chile’s Escondida mine looked less likely, Reuters reported.
The U.S. currency was just below this year’s high against the euro and struck a five-week peak against the yen ahead of U.S. inflation data, with the prospect that a strong number could pressure the Federal Reserve to withdraw policy support.
Indian shares slip on weak Asia cues; midcaps tumble
Indian shares slipped on Wednesday, tracking weakness in Asian peers on worries over a resurgence in COVID-19 cases, while small and midcap stocks tumbled after a bourse placed price limits to curb volatility, Reuters reported.
At 12:33, the blue-chip NSE Nifty 50 index was down 48.75 points, or 0.30% at 16,231.35, while the benchmark S&P BSE Sensex was down 189.06 points, or 0.35% at 54,365.60.
The S&P BSE Smallcap Index lost 2.73% and the BSE Midcap Index fell 1.72%, extending losses to a third session, after the BSE said it would place additional price limits on securities from Aug. 23 to curb excessive price movement.
Goldman Sachs lowers oil demand forecast for China
U.S. investment bank Goldman Sachs lowered its oil demand outlook for China for the next two months, over rising worries of the next wave of COVID-19 infections.
The bank had already cut expectations for emerging market demand because of delta variant concerns last month, and now expects demand to be hit by a million barrels per day in China, Reuters reported.
Lenovo Q1 profit more than doubles to beat expectations
Lenovo Group on Wednesday posted a better-than-expected jump in first-quarter profit as COVID-19 curbs continued to spur work-from-home demand, Reuters reported.
The company’s profit for the quarter ended June 30 rose 119% to $466 million, versus $213 million in the same quarter last year, and above an average analyst estimate of $345.23 million, according to Refinitiv data.
Lenovo’s revenue rose 27% to $16.9 billion from $13.3 billion a year earlier. Analysts expected revenue of $16 billion. It also posted net income margin of 2.8%, which the company said was the highest in many years.
U.S. productivity growth slows in Q2; labour costs revised down in Q1
U.S. worker productivity growth slowed in the second quarter and labour costs were far weaker than previously estimated in the first quarter, the Labour Department said on Tuesday.
Nonfarm productivity increased at a 2.3% annualised rate last quarter. Data for the first quarter was revised lower to show productivity rising at a 4.3% rate instead of the previously reported 5.4% pace, a Reuters report noted. Productivity rose at a 1.9% pace from a year ago.
Unit labour costs rose at a 1.0% rate. They contracted at a revised 2.8% pace in the first quarter, according to the report. Unit labour costs increased at a 0.1% rate from a year ago.
Lupin Q1 net profit jumps 5-fold to ₹542 crore
Drug firm Lupin on Tuesday reported a 5-fold jump in its consolidated net profit at ₹542.46 crore for the quarter ended June 30, 2021, as against ₹106.90 crore in the year-ago period.
The significant jump in June quarter net profit was on account of robust sales and income received from biopharmaceutical firm Boehringer Ingelheim, a PTI report noted.
The company’s consolidated revenue from operations stood at ₹4,237.39 crore for the June ending quarter, compared with ₹3,468.63 crore for the same period a year ago.
India, U.S. seeing fund inflows after China crackdown: Mark Mobius
India, the United States and parts of other emerging markets have seen fund inflows redirected from China as recent regulatory crackdowns in the world’s second-biggest economy have spooked markets, according to veteran investor Mark Mobius.
Mobius said his firm was “heavily concentrated in India”, with about a 20% allocation, adding that he was bullish on sectors ranging from medical testing to industrial equipment, Reuters reported.
BioNTech alone could lift German economy by 0.5% this year
The development and domestic production of a ground-breaking COVID-19 vaccine by German start-up BioNTech could boost economic growth in Europe’s largest economy by up to 0.5 percentage points this year, an economist said on Tuesday.
The German economy is seen growing by roughly 4% this year. This means that BioNTech and its development of a coronavirus vaccine could account for roughly an eighth of overall GDP growth in 2021, based on estimates by Sebastian Dullien, head of think tank the Macroeconomic Policy Institute, a Reuters report noted.
Top public relations director at Chinese social media giant Weibo arrested
Chinese authorities have arrested a top public relations executive at Chinese social media giant Weibo Corp, a Reuters report noted, citing a company source.
Mao Taotao, director of public relations at Weibo, is suspected of bribery and had “seriously harmed the interests of the company”, according to an internal memo sent to staff and seen by the news agency.
Rupee opens on flat note, rises in early trade
Indian Rupee opened on a flat note at 74.43 against the U.S. dollar on Wednesday.
In Wednesday’s early trading, the rupee appreciated by 4 paise over its previous close, touching 74.39 against the dollar.
According to Forex traders, foreign fund outflows and a negative trend in domestic equities is likely to weigh on the local unit, a PTI report noted.
U.S. Senate pivots to $3.5 trillion bill, key to Biden’s agenda
The Democratic-controlled U.S. Senate on Tuesday passed a massive infrastructure bill and immediately kicked off debate on a $3.5 trillion spending blueprint for President Joe Biden’s key priorities on climate change, universal preschool and affordable housing, a Reuters report noted.
Democrats pivoted quickly to a budget resolution containing spending instructions for the multi-trillion-dollar follow-up package. They plan to push the package through over the next few months, using a process called “budget reconciliation,” which bypasses the chamber’s normal rules requiring 60 votes to pass most legislation.
Singapore upgrades 2021 GDP outlook as vaccinations gain pace
Singapore’s bellwether economy expanded more than initially estimated in the second quarter and the government raised its forecast for 2021 as COVID-19 vaccinations progressed at home and in other key markets, Reuters reported.
Gross domestic product (GDP) grew 14.7% year-on-year in the second quarter, higher than the 14.3% growth seen in the government’s advance estimate. Analysts had expected a 14.2% increase, according to the report.
GDP is forecast to grow 6% to 7% in 2021, versus a prior estimate for an expansion of 4 to 6%, the Ministry of Trade and Industry said.
SIDBI unveils Digital Prayaas lending platform
Small Industries Development Bank of India (SIDBI), engaged in promotion, financing and development of Micro, Small and Medium Enterprises (MSMEs) has unveiled ‘Digital Prayaas’ an app-based digital-lending platform to facilitate loans to entrepreneurs from low-income groups. The objective is to sanction a loan by the end of the day.
To cater to those from the urban area, SIDBI has tied up with BigBasket to provide loans to its delivery partners for purchase of e-bikes and e-vans.
In July, more than 65% consumers believe their incomes have reduced: RBI survey
The RBI’s July edition of the consumer confidence survey shows that urban Indians are still highly pessimistic about employment opportunities, though their confidence has marginally improved since May when the second COVID-19 wave was at its peak.
However, in July, 65.9% of the respondents, the highest since the survey started, said income levels have dropped and 93.1% said commodity prices have increased.
Banking, financial, insurance sector to hire 3 lakh this fiscal
The Indian Banking, Financial Services and Insurance (BSFI) sector is quite bullish on the outlook and would be hiring at least three lakh people in the current fiscal in contrast to the ‘bare minimum’ recruitment it witnessed in the previous year, industry observers said.
Oil crawls higher on solid U.S. demand outlook despite Delta surge
Oil prices on Wednesday consolidated strong overnight gains as a bullish outlook for U.S. fuel demand outweighed concerns about mobility curbs in Asia with the spread of the highly infectious COVID-19 Delta variant, Reuters reported.
Brent crude futures inched up 3 cents to $70.66 a barrel, following a 2.3% gain from the previous day, while U.S. West Texas Intermediate crude futures rose 6 cents, or 0.1%, to $68.35 a barrel, adding to a 2.7% jump on Tuesday.
Earnings announcements expected today
Several companies are expected to release their quarterly earnings report on Wednesday, including Aries Agro, Ashiana Housing, Aster DM Healthcare, Bajaj Electricals, Bata India, Birla Cable, Bharat Road Network, Cadila Healthcare, CESC, CreditAccess Grameen, Cummins India, Endurance Technologies, Equitas Holdings, Force Motors, HEG, IDFC, India Cement, Lemon Tree Hotels, Novartis India, Pidilite Industries, Rupa & Company, and VIP Industries.
Indian benchmark indices open higher
Indian indices opened higher on Wednesday. BSE Sensex opened at 54,730.65, up 175.99 points, while Nifty opened at 16,327.30, up 47.2 points.
On Tuesday, the 30-share BSE index rose 151.81 points or 0.28 % to close at 54,554.66, while the broader NSE Nifty advanced 21.85 points or 0.13% to 16,280.10.
Asian shares held back by Delta worries
Asian shares on Wednesday traded sideways on fears about the spread of the coronavirus despite a record close on Wall Street.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.08% in Asian trading, with Chinese blue-chips down 0.38% Korea's KOSPI down 0.37%. Japan’s Nikkei gained 0.57%.
Dow, S&P 500 hit records as infrastructure bill passes Senate
The blue-chip Dow and the benchmark S&P 500 rose to record highs on Tuesday, buoyed by gains in economically sensitive value stocks after the U.S. Senate passed a $1 trillion bipartisan infrastructure package, a Reuters report noted.
The S&P 500 closed at 4,436.75, up 4.40 points or 0.10%, the Dow Jones Industrial Average rose 162.82 points or 0.46% to close at 35,264.67, and the Nasdaq Composite ended at 14,788.09, down 72.09 or 0.49%.
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