Govt considers sharp import tax cuts on EVs
The government is considering cutting import taxes on electric vehicles to as low as 40% days after Tesla Inc’s appeals for a cut polarised the country’s auto sector.
For EVs valued at more than $40,000, it is looking at slashing the rate to 60% from 100%, Reuters reported citing two senior government officials.
SIDBI launches challenge fund to promote entrepreneurship
Small Industries Development Bank of India (SIDBI) has launched a challenge fund alongside the Foreign, Commonwealth & Development Office, U.K., to allocate funds to promote entrepreneurship in the country.
The 'Swavalamban Challenge Fund (SCF)' is a support mechanism to allocate funds for specific purposes using competition among organisations, PTI reported.
HDFC Bank to hire 500 more relationship managers to expand MSME coverage
HDFC Bank, India’s largest private sector lender, is looking to hire 500 more relationship managers this fiscal to expand its coverage of micro, small and medium enterprises (MSME) to 575 districts.
The addition will take the bank’s MSME vertical strength to 2,500, PTI reported.
Govt transfers ₹19,500 crore to farmers under PM-KISAN scheme
Prime Minister Narendra Modi transferred ₹19,500 crore to over 9.75 crore farmers on Monday under the government’s PM-KISAN scheme.
The government has transferred nine instalments amounting to nearly ₹1.57 lakh crore to farmer families under the scheme, PTI reported.
Rupee drops 11 paise against U.S. dollar
The rupee on Monday declined 11 paise close to 74.26 against the U.S. dollar, halting its five-day winning streak.
During the session, the local unit touched an intra-day high of 74.21 and a low of 74.29 against the U.S. currency.
Separately, gold prices fell ₹402 to ₹46,238 per 10 grams in the futures trade on Monday, as speculators cut their positions amid low demand, PTI reported.
Sensex rises 125 pts, Nifty ends above 16,250
Equity benchmark index Sensex rose 125 points on Monday, led by gains in Infosys, ICICI Bank, and Axis Bank.
The index traded 0.23% higher at 54,402.85 while NSE Nifty advanced 0.12% higher to 16,258.25, PTI reported.
Bharti Airtel, Bajaj Finserv, IndusInd Bank and Titan were among the laggards.
UN says some climate events like rising sea levels "irreversible"
Major climate impacts like rising sea levels and the melting of Earth’s frozen spaces are now “irreversible for centuries or millennia”, according to a new scientific report the United Nations .
The Intergovernmental Panel on Climate Change said the greenhouse gases humans had already emitted meant it was inevitable that oceans would continue to rise due to heating and ice melt and “will remain elevated for thousands of years”, AFP reported.
Input tax credit fraud crosses ₹4,000 crore in June
GST officers have detected fraud in input tax credit (ITC) of over ₹4,000 crore in the June-ended quarter, the Parliament was informed on Monday, according to a PTI report.
"Necessary steps as mentioned in the GST law are being taken to recover the amount from the tax evaders pertaining to ITC frauds," Chaudhary said.
RIL, seven other entities receive auto fuel retailing license
Seven new entities including Reliance Industries Ltd and a joint venture of Reliance and BP have been granted auto fuel retailing license by the government, Minister of State for Petroleum and Natural Gas Rameswar Teli said on Tuesday.
The licenses were given under a liberalised rule that allows any entity with a minimum net worth of ₹250 crore to apply for authorisation to retail petrol and diesel, PTI reported.
HC extends stay on trial court proceedings in INX Media case
The Delhi High Court Monday extended the stay on trial court proceedings in CBI's INX Media corruption case in which Congress leader P Chidambaram and his son Karti are accused.
Justice Mukta Gupta, who was hearing CBI's challenge to a trial court order allowing inspection of documents kept in 'Malkhana' (room keeping case properties) by the accused and their counsel, granted time to counsel for the investigating agency to go through to a Supreme Court decision on the issue, PTI reported.
Tata Group looking to enter semiconductor manufacturing
Just days after foraying into 5G equipment manufacturing, Tata Group is looking to enter the semiconductor manufacturing industry, Chairman N. Chandrasekaran said on Monday.
The company has already set up business to seize the opportunity of manufacturing high-tech chipsets, PTI reported.
MRF’s Q1 profit rises 12-fold
Tyre maker MRF on Monday posted a 12-fold rise in net profit in the June-ended quarter.
The company’s profit rose to ₹166 crore from ₹13 crore in the same period last year. MRF’s shares were trading 3.16% higher on BSE, PTI reported.
Oil prices fall triggered by rising U.S. dollar, Asia COVID-19 curbs
Oil prices fell nearly 2% on Monday triggered by the strengthening U.S. dollar and concerns that new pandemic restrictions in Asia, especially China, may set back global recovery in fuel demand.
Brent crude futures slid 1.8% to $69.43 a barrel, while WTI futures fell 1.9% to $66.99 a barrel, Reuters reported.
Oyo shortlists investment banks for IPO
Softbank-backed hospitality chain Oyo is said to have shortlisted investment banks JP Morgan, Kotak Mahindra Capital and Citi for its $1.2 billion initial public offering (IPO) in India, according to a Moneycontrol report citing multiple unnamed sources.
The banks were onboarded recently and have begun working on the issue, Reuters reported citing the news portal.
Bankers suggest conversion of Vodafone debt to equity
Lenders led by State Bank of India (SBI) have suggested to the Department of Telecommunications (DoT) that conversion of debt to equity of Vodafone Idea Ltd can be an option to resolve the crisis.
DoT had called senior bank officials on Friday to discuss how the stress in the telecom sector, caused by AGR-related dues, can be resolved, according to a PTI report.
SC upholds antitrust probe of Amazon, Flipkart
The Supreme Court (SC) has upheld the investigations into the business practices of Amazon.com and Walmart-owned Flipkart must go on, a setback for the two e-commerce giants who had previously urged the court to put the enquiry on hold.
The SC bench, led by Chief Justice N. V. Ramana, said they expect big organisations like Amazon and Flipkart to volunteer for “inquiry and transparency”, Reuters had reported.
China's 10-year treasury futures fall over 0.5%
China’s 10-year treasury futures, the most traded contract, fell more than 0.5% on Monday, tracking higher U.S. Treasury yield after strong payrolls data on Friday and tighter liquidity conditions in Chinese domestic interbank markets, Reuters reported.
Private equity firms to revise strategy in China
Private equity firms are revising their investment strategies in China following massive regulatory crackdown on various sectors including technology and education.
Private equity and venture capital funds are pivoting away from data-heavy and consumer internet companies to sectors including semiconductors and renewable energy, according to a Reuters report.
Sebi mulls market makers to deepen corporate bond segment
Securities and Exchange Board of India (Sebi) is contemplating creation of a set of “market makers”, with an aim to develop and strengthen the corporate bond segment, a PTI report noted.
“One additional proposed step is aimed at creating a set of market makers who will be present in the market most of the time both on the buy side as well as the sell side of investment grade corporate bonds,” the Sebi said.
Additionally, the regulator is in the process of finalising the modalities for setting up of a backstop facility for buying corporate bonds.
It is also mulling to revamp the corporate bond database which is accessible to all investors, Sebi said in its annual report for 2020-21.
Automobile retail sales in fast lane in July as COVID-19 restrictions ease across country
Federation of Automobile Dealers Associations (FADA) said on Monday that automobile retail sales in India came back strongly in July with the opening of dealerships across the country as COVID-led restrictions were eased in the affected states, a PTI report noted.
All vehicle segments, including passenger vehicles, two-wheelers and commercial vehicles reported robust sales growth last month.
Total sales increased 34% to 15,56,777 units in July, as compared to 11,60,721 units in the year ago period.
The semiconductor shortage issue is now becoming a deep-rooted problem for the passenger vehicle segment which is now above the pre-pandemic mark, Vinkesh Gulati, President, FADA, said in a statement.
Warren Buffett’s Berkshire Hathaway recovers from coronavirus slowdown
Warren Buffett’s Berkshire Hathaway Inc on Saturday said many of its businesses are enjoying strong recoveries from the early depths of the coronavirus pandemic, fuelling rebounds in profits and revenue.
Berkshire said its BNSF railroad, namesake auto dealership and housing units are among many businesses seeing “significant” recoveries despite supply chain disruptions and higher costs, with earnings and revenue in some instances topping pre-pandemic levels, a Reuters report noted.
The firm’s second-quarter operating profit rose 21% to $6.69 billion, from $5.51 billion, a year earlier.
Berkshire’s net income rose 7% to $28.1 billion, bolstered by unrealised gains in Berkshire's $192 billion of investments in Apple, Bank of America and American Express. And its revenue jumped 22% to $69.1 billion.
France’s Renault, China’s Geely to explore new hybrid-focused venture
France’s Renault said on Monday it is looking to revive business in China by forming a hybrid vehicle joint venture (JV) with Geely, a year after it ended its previous operation in the world’s largest car market.
The two firms have signed an agreement to set up the JV, which would make and sell Renault-branded petrol-electric hybrid cars in China using Geely's technologies, supply chains and manufacturing facilities while Renault would focus on sales and marketing, Reuters reported.
Geely and Renault are also looking at developing full electric battery cars for the venture, the report noted, citing a source familiar with the matter.
Airbus sees 1,000 German jobs at risk without parts unit spinoff
Airbus has warned employees of hundreds of possible job losses at its small-parts manufacturing business in Germany if the unit is not split off in line with a cost-cutting strategy set out in April, Reuters reported, citing a source familiar with the plan.
The group sees 1,000 of its 2,500 small-parts manufacturing jobs in Germany at risk if it continues to manufacture parts within the group rather than spinning off the activities, the report noted.
Rupee opens on weak note, slips in early trade
Indian Rupee opened on a weak note at 74.21 against the U.S. dollar on Monday, after closing at 74.15 on Friday.
In Monday’s early trading, the rupee depreciated by 10 paise over its previous close, touching 74.25 against the dollar.
According to Forex traders, easing crude oil prices and positive domestic equities will limit the depreciation bias of the local unit, a PTI report noted.
U.S. Senate inches toward passing $1 trillion infrastructure bill
The U.S. Senate moved a step closer on Sunday to passing a $1 trillion bipartisan infrastructure bill by giving its blessing to the details of the largest U.S. investment in roads and bridges in decades, Reuters reported.
In a 69-28 vote, the Senate moved to support the provisions of a compromise that was the result of thorough talks by a group of Republicans and Democrats.
The Senate was also expected to vote to limit debate on the overall bill, which, if approved, could put it on track for a vote on passage sometime Monday or Tuesday, and, in turn, send it to the House of Representatives, the report noted.
Indian bankers in talks as court rulings threaten nearly ₹500 billion in loans
Informal talks are taking place to deal with the fall-out from two rulings by Supreme Court that threaten the repayment of loans totalling nearly ₹500 billion ($6.73 billion) to some of the country’s largest banks, Reuters reported, citing sources close to the matter.
Last week, Supreme Court effectively blocked Future Group’s $3.4 billion sale of retail assets to Reliance Industries , jeopardising nearly $2.69 billion the retail conglomerate owes to Indian banks.
That ruling was delivered days after the Supreme Court rejected a petition to allow telecom companies to approach the Department of Telecommunications to renegotiate outstanding dues in a long-running dispute with telecom players in the country.
That raises concerns over whether Vodafone Idea will repay some ₹300 billion ($4.04 billion) it owes to Indian banks and billions of dollars more in long-term dues to the government, the report noted.
Oil slumps on China travel curbs, strong U.S. dollar
Oil prices fell on Monday, extending last week’s steep losses on the back of a rising U.S. dollar and concerns that new pandemic curbs in Asia, especially China, may set back the global recovery in fuel demand, a Reuters report noted.
Brent crude oil futures dropped 2%, to $69.29 a barrel, while U.S. West Texas Intermediate (WTI) crude oil futures slid 1.9%, to $66.96 a barrel.
Last week, Brent crude futures slumped 6% in their biggest weekly loss in four months, while WTI futures plunged nearly 7% in their steepest weekly decline in nine months.
Earnings announcements expected today
Several companies are expected to release their quarterly earnings report on Monday, including Astrazeneca Pharma India, Birla Tyres, Bombay Dyeing, Chemcon Speciality Chemicals, Clean Science and Technology, Gati, Gujarat State Petronet, Indian Hotels, Laxmi Organic Industries, MRF, Nilkamal, Reliance Power, Satin Creditcare Network, Shalby, Shree Cement, Subex, and Venky’s (India).
Indian benchmark indices open higher, rise in early trade
Indian indices opened higher on Monday. BSE Sensex opened at 54,385.71, up 107.99 points, while Nifty opened at 16,281.35, up 43.15 points.
In Monday’s early trade (at 9:39 A.M.), Sensex gained 248.17 points or 0.46% to reach 54,525.89, while Nifty rose 63.20 points or 0.39% to reach 16,301.40.
On Friday, the 30-share BSE index slipped 215.12 points or 0.39% to close at 54,277.72, while the broader NSE Nifty fell 56.40 points or 0.35% to 16,238.20.
Dollar hits four-month high on euro as markets bet on earlier Fed taper
The dollar on Monday reached a four-month high versus the euro, as traders positioned for an earlier tapering of Federal Reserve stimulus.
The greenback strengthened as far as $1.1742 to the single currency, extending a 0.6% pop from Friday, when a strong U.S. jobs report stoked bets that a reduction in asset purchases could start this year and higher interest rates could follow as soon as 2022, Reuters reported.
The dollar index, which tracks the U.S. currency against six rivals, rose to a two-week top 92.915.
Traders will be keenly watching a U.S. consumer price report on Wednesday, the report noted.
Asia shares spooked by sudden slide in gold
Asian shares wobbled on Monday amid sharp losses in gold and oil prices.
Sentiment was shaken by a sudden dive in gold as a break of $1,750 triggered stop loss sales, a Reuters report noted.
Brent sank nearly 2% on concerns the spread of the Delta variant would temper travel demand.
Holidays in Tokyo and Singapore made for thin trading conditions. Japan’s Nikkei was shut but futures were trading just below Friday’s close.
