Sensex rallies 514 pts to new peak, Hiring activity in India on steady recovery and M&M to cut production by 25 pc on semiconductor shortage.
India's gasoline demand seen hitting record as COVID curbs ease, World food prices jump in Aug and Apple to Let Media Apps Avoid 30% Fee After Global Scrutiny.
Hiring activity in India on steady recovery: Report
Hiring activity in India has been on a steady recovery and the hiring rate in July this year was around 65% above the pre-COVID level, a report said.
According to the LinkedIn India – Labour Market Update (July 2021), there was a deepening hiring dip in April 2021, corresponding to the second wave of COVID-19 cases in India. Since then, it has been recovering steadily.
Compared to the pre-COVID levels in 2019, the hiring rate was 35% higher at the end of May 2021, 42% higher at the end of June 2021, and now 65% higher at the end of July 2021, PTI reported.
Russia threatens to fine Apple, Google unless they remove Navalny app, Ifax reports
Russia's communications watchdog threatened on Thursday to fine Apple and Google unless they removed an app created by Kremlin critic Alexei Navalny from their stores, the Interfax news agency reported.
A Russian court declared the jailed opposition politician's movement extremist this summer in a crackdown ahead of parliamentary elections later this month. Navalny's allies want to use the app to organise a tactical voting campaign, Reuters reported.
Rupee edges 2 paise higher at 73.06 against US dollar
The Indian rupee settled with a marginal gain of 2 paise at 73.06 (provisional) against the US dollar on Thursday despite a sustained rally in domestic equities, PTI reported.
Sensex rallies 514 pts to new peak, Nifty crosses 17,200
Equity benchmark Sensex rallied 514 points to end at a fresh all-time high on Thursday, tracking gains in index majors TCS, Reliance Industries and HUL amid a positive trend in global markets.
The 30-share Sensex closed 514.33 points or 0.90% higher at 57,852.54, and Nifty surged 157.90 points or 0.92% to 17,234.15.
TCS was the top gainer in the Sensex pack followed by HUL, UltraTech Cement, Nestle India, Kotak Bank, Dr Reddy’s and Titan. On the other hand, M&M, Bajaj Auto, Bajaj Finserv and Asian Paints were among the laggards, PTI reported.
India Aims to Open Finance to Millions With New User Data System
India plans to unveil a data sharing system that could revolutionise investing and credit, giving millions of consumers greater access and control over their financial records and expanding the potential pool of customers for lenders and fintech companies.
Regulators agreed to allow banks, pension funds, tax authorities, insurers and other finance firms to pool together customer information -- once the user consents -- to make transactions smoother. If the system works, firms will be able access large amounts of data within seconds to assess the creditworthiness of a small business, recommend a wealth management product for an individual, or tailor an insurance policy for a family, Bloomberg reported.
Housing sales in June-ended quarter over 2-folds in 8 cities; lower 19% from the previous quarter
Housing sales in volume terms more than doubled to 68.5 million sq ft year-on-year during April-June of this fiscal across eight major cities on lower base effect, but demand fell 19% from the previous quarter due to the second wave of the pandemic, according to rating agency ICRA.
Airtel conducts cloud gaming session on 5G network as part of ongoing trials
Telecom operator Bharti Airtel on Thursday said it has successfully conducted India's first cloud-gaming session in a 5G environment, PTI reported.
The demonstration was conducted in Manesar, Gurgaon, as part of the ongoing 5G trials, using spectrum allotted by the Department of Telecom, the company said.
M&M to cut production by 25 pc on semiconductor shortage
Mahindra & Mahindra on Thursday said the output at its automotive division will be cut by up to 25% owing to no production days of around seven days across its plants due to semiconductor shortage.
The move is estimated to result in a "reduction in production volumes of the automotive division in September 2021, by 20-25%", PTI reported.
JPMorgan Settles French Tax-Fraud Case for $30 Million
JPMorgan Chase & Co. settled a longstanding French criminal investigation over allegations it helped clients commit tax fraud for 25 million euros ($29.6 million).
The case relates to allegations of tax fraud seen to benefit former managers at investment firm Wendel. The bank’s involvement revolves mainly over financing provided by its Paris branch to the managers in 2007 to restructure their holdings in Wendel, Bloomberg reported.
Indian Oil lists foreign currency bonds on IFSC exchanges
Indian Oil listed has listed its foreign currency bonds on IFSC (International Financial Services Centre) exchanges at Gujarat International Finance Tec-City (GIFT), PTI reported.
"We are extremely delighted to be here on the momentous occasion of the listing ceremony of USD 1.4 billion and SGD 400 million on NSE IFSC and India INX exchanges," Indian Oil Director- Finance Sandeep Kumar Gupta was quoted as saying in a statement issued by NSE IFSC on Thursday.
India's gasoline demand seen hitting record as COVID curbs ease
India's gasoline demand is set to hit a record this fiscal year, with consumption accelerating as more people hit the road for business and leisure travel after easing of COVID-19 curbs.
Shunning trains, buses and planes, safety-conscious Indians are buying more cars and using personal vehicles to commute, flocking to tourist destinations after months of restrictions, Reuters reported.
Credit rating agency Moody's India unit ICRA expects India's gasoline consumption to rise 14% to a record 31.9 million tonnes (739,000 bpd) in the fiscal year to March 2022.
World food prices jump in Aug, cereal harvest outlook cut -FAO
World food prices jumped in August after two consecutive months of decline, pushed up by strong gains for sugar, vegetable oils and some cereals, the United Nations food agency said on Thursday.
The Rome-based Food and Agriculture Organization's (FAO) food price index, which tracks international prices of the most globally traded food commodities, averaged 127.4 points last month compared with 123.5 in July. On a year-on-year basis, prices were up 32.9% in August, PTI reported.
Apple to Let Media Apps Avoid 30% Fee After Global Scrutiny
Apple will allow developers of some apps like Netflix to link from its App Store to external websites for payments by users, a modest concession to global scrutiny of the 30% cut it typically takes from services and purchases on the iPhone.
The Cupertino-based company said the change will go into effect globally early next year for so-called reader apps spanning content like magazines, newspapers, books, audio, music and video, Bloomberg reported.
Need objective assessment of working of insolvency law: IBBI chief
IBBI Chairperson M S Sahoo on Thursday pitched for a comprehensive and objective framework to assess the working of the insolvency law to make prompt course corrections. His remarks come against the backdrop of diverse views being expressed on the overall impact of the Insolvency and Bankruptcy Code (IBC), which came into force in 2016.
The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the IBC, which provides for a market-linked and time-bound resolution of stressed assets, PTI reported.
Hyundai launches 'i20 N Line' in India at Rs 9.84 lakh
Hyundai Motor India Ltd on Thursday launched its motorsports inspired 'i20 N Line' priced between Rs 9.84 lakh and Rs 11.76 lakh, PTI reported.
Powered by a 1-litre turbo petrol engine delivering power of 88.3 kW, the Hyundai i20 N Line has been introduced in N6 and N8 variants, the company said in a statement.
CIL chairman lays foundation stone of MCL's Rs 285 crore FMC project
Coal India Limited (CIL) Chairman Pramod Agrawal laid the foundation stone of Mahanadi Coalfields Limited's Rs 285.05 crore first-mile connectivity (FMC) project of Lajkura SILO at Ib valley in Jharsuguda district.
The project would add 15 million tonne per annum dispatch capacity to Mahanadi Coalfields Limited, PTI reported.
Sensex and Nifty opened flat today but gained momentum in the following trading hours. Asian stocks were in a cautious mood due to concerns over Chinese economy after a run of data showed pressure on the country's economy. Oil fell after the OPEC+ meeting where major producers decided to stick to their policy of increasing global supply monthly.
The global semiconductor shortage is hitting the Indian automakers. After Maruti Suzuki, now Mahindra and Mahindra said it expects a 20%-25% drop in September vehicle production at its automotive division as it continues to face supply shortages of semiconductors.
Antirtrust cases do not seem to end for Apple as the tech giant is facing another challenge, this time in India for allegedly abusing its positing in the apps market.
Apple hit with antitrust case in India over in-app payments
Apple is facing an antitrust case in India for allegedly abusing its dominant position in the apps market by forcing developers to use its in-app purchase system Reuters reported.
The case was filed by a non-profit group which argues that Apple's fee of up to 30% hurts competition by raising costs for app developers and customers, and also acts as a barrier to market entry.
"The existence of the 30% commission means that some app developers will never make it to the market ... This could also result in consumer harm," said the filing, which has been seen by Reuters.
Paytm to transfer online payments business to subsidiary
Paytm is looking to transfer its payment aggregator business into a new subsidiary Paytm Payments Services Limited, PTI reported citing a notice sent to shareholders for approval.
The company is seeking approval from its shareholders for a new entity which will include Paytm's online payment gateway business.
"To consider and approve transfer of Payment Aggregator business to Paytm Payments Services Limited, a wholly owned subsidiary of the Company, to comply with Reserve Bank of India guidelines, being considered as sale of undertaking," the EGM notice issued on August 31 said.
Zerodha gets Sebi nod for mutual fund business
Broking firm Zerodha founder and CEO Nithin Kamath said the company received in-principle approval from capital markets regulator Sebi for setting up its asset management company.
"So, we just got our in-principle approval for our AMC (MF) license. I guess now comes the hard part," Kamath tweeted.
Zerodha had applied for an AMC (mutual fund) license in February last year. Sebi's approval comes as the regulator had allowed fintech firms to enter the mutual fund business.
Google Pay to offer Time Deposits to Indian users
Google has partnered with Equitas Small Finance Bank to let users of its payments wallet open time deposits with the bank in two minutes, Bloomberg reported.
Rates will be as high as 6.35% for a one-year deposit, the bank said in a statement.
This will improve “financial inclusion by encouraging a savings culture, at the same time making the fixed deposit booking process simple and easy,” Murali Vaidyanathan, country head at Equitas SFB, said in the statement.
Mahindra to observe 'No Production Days'
Mahindra & Mahindra will observe 'No Production Days’ of around 7 days in its Automotive Division plants in the month of September as the automotive manufacturer continues to face supply shortages of semiconductors.
In an exchange filing, the company said the production shut down is estimated to reduce production volumes by 20-25% in September. Consequently, the revenue and profitability will also be impacted.
"As the situation is dynamic, the Company is carefully reviewing the supply situation and all efforts are being made to minimize the impact," Mahindra said.
Aluminium at more than 10-year high
Aluminium prices soared to over a 10-year high on concerns over supply as multiple power plants in India were on the verge of running out of coal, Reuters reported.
Benchmark three-month aluminium on the London Metal Exchange rose 1.1% at $2,720 a tonne after touching $2,732.50 earlier in the session, its highest since May 2011.
India is the second-biggest producer of primary aluminium after China. It urged utilities to import coal to boost domestic supply of the fuel as coal-fired generation surged after an easing of coronavirus-related curbs.
Amazon CEO unveils 55,000 tech jobs
In a major push to increase its workforce, Amazon is planning to hire 55,000 people for multiple roles across the globe in the coming months, Chief Executive Andy Jassy told Reuters.
The quantum of the planned hiring is equal to more than a third of Google’s headcount as of June 30, and close to all of Facebook’s.
Jassy, said the company needed more people to keep up with demand in retail, the cloud and advertising. He added that the company's new bet to launch satellites into orbit to widen broadband access, called Project Kuiper would require a lot of new hires, too.
RBI imposes ₹25 lakh penalty on Axis Bank
The RBI imposed a penalty of ₹25 lakh on Axis Bank for non-compliance of certain provisions of Know Your Customer (KYC) norms, PTI reported.
The central bank said a scrutiny was carried out during February and March 2020 in a customer account and it was observed that the bank had "failed to comply" with directions contained in the Reserve Bank of India – KYC Direction, 2016.
"...the bank failed to monitor/carry out ongoing due diligence in the said account to ensure that the transactions were consistent with its knowledge about the customer, customer's business and risk profile," RBI said in a statement.
GST Council to meet on September 17
The 45th meeting of the GST council will be held on September 17 in Lucknow, the Finance Ministry tweeted said in a tweet on Wednesday.
"Finance Minister Smt @nsitharaman will chair the 45th meeting of the GST COUNCIL on 17th September at Lucknow,” the Ministry tweeted.
The council last met via video conference on June 12 where where it reduced tax on various COVID related items.
Sensex, Nifty open flat
The Indian benchmark equity indices opened flat. At 9:15 IST, Sensex opened 0.15% higher at 57,423.65 while Nifty was up 0.11% at 17,095.40.
Among sectors, metals, pharma, IT and FMCG opened in Green.
Oil falls after OPEC+ sticks to raising supply
Oil prices fell after OPEC+ agreed to continue a policy of phasing out record production reductions by adding 400,000 barrels per day (bpd) each month to the market, Reuters reported.
Brent crude fell 0.7% to $71.07 a barrel while U.S. oil dropped 0.8%, to $68.03 a barrel. The decision to stick to increasing supply comes at a time when coronavirus cases around the world are rising and many U.S. refiners remained offline.
OPEC+ has raised its demand forecast for 2022.
Asia stocks in cautious mood
Asian share markets were in a cautious mood as concerns grew over China after a run of data showed pressure on the country's economy, Reuters reported.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2% to a five-week high. Japan's Nikkei was up 0.1%, while South Korea fell 0.6%.Nasdaq futures and S&P 500 futures were barely changed.
"The spread of the Delta variant amid still-low vaccination rates in many ASEAN economies and China's zero-tolerance Covid strategy has prompted governments to impose restrictions and order factory/port closures," analysts at Nomura told Reuters.
"Input shortages and low inventories will likely lead to production cuts and delayed shipments in Q3.
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