Top Business News of The Day: India's Maruti Suzuki sees production impact from semiconductor shortage; Sensex rallies 663 pts to close above 57k-mark; Nifty scales 17k; Oil falls as Hurricane causes damage and more

Top news of the day from the world of business, finance and economy

August 31, 2021 08:54 am | Updated 05:06 pm IST

A view of the BSE building in Mumbai. File

A view of the BSE building in Mumbai. File

5:05 P.M.

India to make it mandatory for auto makers to offer biofuel vehicles in the next 6 months and Maruti Suzuki India sees production impact from semiconductor shortage.

Sensex rallies 663 pts to close above 57k-mark for the first time ever and Tesla comes closer to enter in India.

S. Korea bans app payment monopolies in world first, Euro zone inflation surges to 10-year high and Oil falls as Hurricane causes damage.

4:57 P.M.

HDFC Securities Ensures Client Safety During the Pandemic with End-to-End Digital Account Opening

HDFC Securities, one of the country's largest stockbrokers, has moved all digital account opening tasks permanently to a work-from-home (WFH) setup. The company made the announcement, following the COVID-19 pandemic and the lockdown that followed. The aim was to support new customers with a completely digital process for account opening, PTI reported.

4:53 P.M.

IPL opens expansion campaign seeking bids for new team

The Indian Premier League on Tuesday launched its campaign to expand the world's richest cricket tournament by seeking bids to run a new team. The IPL had said it would increase the tournament from eight to 10 teams for the 2022 season.

Sports industry experts have said a backer may have to commit to a $300 million budget to get a franchise as well as pay fees up front. Major Indian groups including the Adani mining and trading conglomerate are said to be waiting to enter.

4:50 P.M.

India to make it mandatory for auto makers to offer biofuel vehicles in 6 months: Gadkari

Union Minister Nitin Gadkari on Tuesday said India will make it mandatory for auto manufacturers to offer vehicles running 100% on bio-fuels in the next six months.

Such a move will be cost-effective for consumers, who are hassled by the high petrol prices, the minister said, pointing out that a litre of bioethanol costs Rs 65 as against Rs 110 paid for petrol. The alternative fuel is also less polluting and saves forex, PTI reported.

4:38 P.M.

TVS Srichakra forays into Indonesian market with Eurogrip range of tyres

The manufacturer of two and three-wheeler tyres, TVS Srichakra, on Tuesday announced its foray into the Indonesian market, with the Eurogrip range of tyres, in its bid to strategically build a strong presence in the Southeast Asian nation.

The first product line to be launched is "Eurogrip Bee City" – a range of two-wheeler tyres completely customized to suit the needs of Indonesian riders' urban lifestyle and road conditions, PTI reported.

4:35 P.M.

India's Maruti Suzuki sees production impact from semiconductor shortage

India's top carmaker Maruti Suzuki said on Tuesday it expects vehicle production at its plants in the states of Haryana and Gujarat to be impacted in September due to a shortage of electronic components, Reuters reported.

4:18 P.M.

Sensex rallies 663 pts to close above 57k-mark; Nifty scales 17k

The Sensex rallied 663 points to close above 57,000 for the first time while the Nifty scaled the 17,000-mark on Tuesday.

The 30-share BSE Sensex ended 1.16 % higher at its record close of 57,552.39. Similarly, the NSE Nifty soared 201.15 points or 1.19% to an all-time closing peak of 17,132.20.

Bharti Airtel was the top gainer in the Sensex pack followed by Bajaj Finance, Bajaj Finserv, Asian Paints, Titan, TCS and Tech Mahindra. On the other hand, Nestle India, IndusInd Bank and Reliance Industries were the laggards, PTI reported.

4:04 P.M.

India's economic activity picking pace, further upside to growth likely: Moody's

Moody's Investors Service on Tuesday said the economic activity in India is picking up with the gradual easing of COVID restrictions and there could be further upside to growth as economies around the world gradually reopen.

In its August update to 'Global Macro Outlook 2021-22', Moody's retained India's growth forecast for the 2021 calendar year at 9.6%  and 7% for 2022, PTI reported.

4:01 P.M.

S. Korea bans app payment monopolies in world first

South Korean MPs on Tuesday passed a law banning Apple and Google from forcing app developers to use the tech giants' payment systems, effectively declaring their lucrative App Store and Play Store monopolies illegal.

The bill was approved by 180 votes to nil in the National Assembly, making South Korea the first major economy to pass legislation on the issue, in a move that could set a precedent for other jurisdictions around the world, AFP reported.

3:58 P.M.

Google to invest $1.2B in Germany cloud computing programme

Google said Tuesday that it is investing 1 billion euros ($1.2 billion) by 2030 to expand its cloud computing infrastructure in Germany and to increase the use of renewable energy.

The internet giant said it plans to add new cloud computing centers in the Berlin region and in the town of Hanau, close to the DE-CIX data exchange in Frankfurt, AP reported.

3:56 P.M.

Jio brings new prepaid plans with Disney+ Hotstar subscription

Reliance Jio is rolling out a new range of prepaid plans that come bundled with unrestricted access to all content on Disney+ Hotstar, starting from Rs 499.

The new plans will now offer unrestricted access to entire content on Disney+ Hotstar from starting price point of Rs 499. The plan will be available for recharge from September 1, 2021, PTI reported.

3:09 P.M.

FinMin releases Rs 13,386 cr to 25 states as grant to RLBs

The Finance Ministry on Tuesday said it has released about Rs 13,386 crore to 25 states for providing grants to rural local bodies (RLBs).

Tied grants are released to the rural local bodies (RLBs) for improving two services -- Sanitation and maintenance of open-defecation free (ODF) status and supply of drinking water, rainwater harvesting and water recycling, PTI reported.

3:07 P.M.

Aluminum Hits 10-Year High as Demand Roars, China Supply Curbed

Aluminum charged to a 10-year high in London, extending a year-long rebound as demand surges and supply of the usually abundant metal comes under pressure.

Prices rallied as much as 2.9% to $2,726.50 on the London Metal Exchange, hitting the highest since 2011 and moving closer to an all-time high above $3,300 a ton, Bloomberg reported.

2:42 P.M.

Euro zone inflation surges to 10-year high, in big headache for ECB

Euro zone inflation surged to a 10-year-high this month with further rises still likely to come, challenging the European Central Bank's benign view on price growth and its commitment to look past what it deems a transient increase.

Consumer prices in the 19 countries sharing the euro rose by 3% this month, after increasing by 2.2% in July, far above expectations for 2.7% and moving well clear of the ECB's 2% target, Reuters reported.

2:39 P.M.

Bank of India announces closure of QIP issue; raises Rs 2,550 cr

Bank of India on Tuesday announced the closure of its QIP issue and said that it has raised Rs 2,550 crore by issuing more than 40.5 crore shares to the qualified institutional buyers, PTI reported.

2:35 P.M.

Hero Electric partners with Wheels EMI to offer easy financing options to customers

Hero Electric has partnered with two-wheeler life cycle management company Wheels EMI for offering easy financing options to customers buying electric two-wheelers, a release said on Tuesday.

Besides vehicle financing, the partnership also offers extra benefits to Hero Electric customers such as attractive interest rates, flexible tenure options and affordable equal monthly instalments (EMIs) as per customer eligibility, PTI reported.

2:14 P.M.

Juventus Didn’t Just Lose Ronaldo, it Took a $17 Million Hit Too

Soccer team Juventus Football Club SpA is set to pocket about 15 million euros after it agreed last week to transfer five-time Ballon d’Or winner Cristiano Ronaldo to the U.K.’s Manchester United. But the Italian team had paid about 100 million euros for Ronaldo just three years ago, Bloomberg reported.

That means the deal generated a negative economic impact of approximately 14 million euros ($16.6 million) on the company’s 2020-2021 financial year, due to the partial write-down of the net book value of the player’s registration rights, Juventus said in a statement Tuesday. 

2:08 P.M.

China's manufacturing sector slows as export demand weakens

China's factory activity decelerated in August as export demand weakened, a survey showed Tuesday.

The monthly purchasing managers' index of the Chinese statistics bureau and an official industry group declined to 50.1 from July's 50.4 on a 100-point scale on which numbers above 50 show activity increasing, AP reported.

1:43 P.M.

Facebook, Xiaomi Eye India’s $1 Trillion Digital Loan Market

India’s digital loan market is becoming a battleground for companies from Facebook Inc. to Xiaomi Corp., seeking a foothold in what’s set to be a $1 trillion industry. 

Facebook this month said India would be the first country where it rolls out its small business loan program. The social media giant’s foray into India coincides with Xiaomi’s that plans to offer loans, credit cards and insurance products, Bloomberg reported.

India’s digital payments market is drawing the attention of some of techs biggest names after online transactions surged during the pandemic. Digital lending is expected to treble to $350 billion by 2023 and reach a total of $1 trillion in the five years since 2019, according to estimates from the Boston Consulting Group.

1:28 P.M.

Gaming Stocks Slump as China Takes Aim at Children’s Online Play

Gaming stocks tumbled in China and Japan as regulators in Beijing cut back the amount of time children can play online in the world’s biggest gaming market.

The Hang Seng Tech Index slid as much as 1.5%, led by shares of Bilibili Inc. and NetEase Inc. Bilibili declined as much as 7.2% while NetEase slipped 4.6%. Tencent Holdings Ltd. slid as much as 4%.

In Tokyo, Nexon Co. and Koei Tecmo Holdings Co. led Japanese video game makers lower. Nexon fell as much as 5% while Koei Tecmo dropped as much as 4.4%, Bloomberg reported.

1:17 P.M.

L&T concludes divestment of entire stake in 99 MW hydro plant at Uttarakhand to ReNew Power

Larsen & Toubro (L&T) on Tuesday said it has concluded the divestment of its entire stake in 99 MW hydro power plant at Singoli-Bhatwari in Uttarakhand to ReNew Power Services Private Limited.

L&T received a consideration of Rs 1,001.50 crore as divestment proceeds., PTI reported.

 

Indian benchmark indices Sensex and Nifty touched new records during the day. While Sensex crossed the 57,000 mark for the first time, Nifty topped 17,000.

For Tesla lovers in India, there might be some good news. The company received approval to make or import four models in the country, inching closer to make its official India debut.

Prosus NV has agreed to buy purchased Indian payments platform Billdesk for $4.7 billion. Billdesk would complement PayU's business.

12:45 P.M.

Nifty hits 17,000 mark for first time

The 50-scrip equity benchmark Index Nifty50 crossed the 17,000-mark for the first time. It surged 0.51% to touch 17,017.30 in the afternoon.

Nifty gained its fastest 1000 points ever, moving from 16,000 to 17,000 in less than a month. Earlier in the day, Sensex had topped the 57,000 mark, continuing the good run from Monday.

12:15 P.M.

Tesla closer to entering India

Tesla is closer to entering India as the car-maker received approval to make or import four models in the country, Bloomberg reported.

Tesla has had its vehicles certified as being roadworthy in India, a posting on the website of the nation’s ministry of road transport and highways showed.

“The tests ensure the vehicle matches the requirements of the Indian market in terms of emission and safety and road worthiness,” according to the site.

11:45 A.M.

Prosus buys Billdesk for $4.7 billion

Technology investor Prosus NV purchased 100% of the equity in Indian payments platform Billdesk for $4.7 billion, Reuters reported.

Prosus said Billdesk would complement its own PayU business.

"Together, the two expect to create a financial ecosystem handling four billion transactions annually - four times PayU’s current level in India," the company said.

11:15 A.M.

UBS says Digital companies may enter Nifty soon

Internet-based companies are expected to enter equity benchmark Nifty over the next few months after the pandemic-induced lockdowns spurred adoption of digital platform, PTI reported citing foreign brokerage UBS.

The country has over 60 startups with more than $1 billion valuation of which 20 unicorns were created this year. Zomato completed its ₹9,300-crore public issue last month while Paytm is awaiting Sebi nod for a ₹16,600 crore issue. Ola is also looking to raise around ₹10,000 crore through an initial share sale.

Besides, Flipkart, Byju's and Oyo, are likely to join the IPO bandwagon over the next 12-18 months.

10:50 A.M.

Depositors of stressed banks to get up to ₹5 lakh back from Nov 30

Depositors of stressed banks will now get up to ₹5 lakh back from November 30 after the government amended the DICGC Act, PTI reported.

Parliament earlier this month passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 ensuring that account holders get up to ₹5 lakh within 90 days of the RBI imposing moratorium on the banks.

The government has notified September 1, 2021 as the date on which the provisions of the Act shall come into force, according to a gazette notification dated August 27, 2021.

10:20 A.M.

Amazon seeks withdrawal of Future-Reliance deal approval

Amazon has asked India's market regulator to order withdrawal of conditional approval given to Future Group's $3.4 billion retail assets sale, citing a court ruling in the U.S. company's favour, Reuters reported citing a letter written by Amazon to SEBI.

In the letter, Amazon said: "Amazon requests you to take all such action as is necessary to comply with the Supreme Court Judgment."

It added that the approval from stock exchanges "were conditional on the outcome of the ongoing proceedings," urging SEBI to order their withdrawal.

10:00 A.M.

Ola to raise $1 billion via IPO

Ride-sharing giant Ola plans to raise $1-1.5 billion (Rs 7,324-10,985 crore) through an initial public offering (IPO) and is expected to file the draft papers in the December quarter, PTI reported citing sources.

Ola is working with banks, including Citigroup Inc and Kotak Mahindra Bank Ltd, to manage the public offering. Size and timeline of the IPO can change as deliberations are still ongoing.

PTI said E-mails sent to Ola did not elicit a response.

9:30 A.M.

Sensex hits 57,000, Nifty above 16,950

Indian benchmark equity indices continued their good run, opening at fresh record high. Sensex topped 57,000 for the first time while Nifty was above 16,950.

At 9:17 IST, Sensex was up 0.22% at 57,017.13 and Nifty was up 0.23% at 16,970.20. Gains were seen in IT, pharma, FMCG and realty indices.

9:15 A.M.

Oil falls as Hurricane causes damage

Oil prices plunged on concerns that power outages and flooding in Louisiana due to Hurricane Ida will cut crude demand from refineries amid global producers' plan to raise output, Reuters reported.

U.S. West Texas Intermediate (WTI) crude futures fell 41 or 0.6%, to $68.80 a barrel. Brent crude futures for October, due to expire on Tuesday also fell 0.6% to $72.95 a barrel and November contract plunged 0.6%, to $71.81.

"With companies currently assessing damages, a current timeline for how long shuttered capacity will be down is still uncertain," RBC analysts said in a note seen by Reuters .

9:00 A.M.

Asian markets open lower

Asian stocks opened lower on Tuesday after concerns about China's slowing economic growth and regulatory changes weighed on consumer sentiment, Reuters reported.

MSCI's Index of Asia-Pacific stocks outside Japan fell 0.25%,  while Japan's Nikkei plunged more than 0.3%. Hong Kong's Hang Seng Index opened 0.1% lower and China's CSI 300 Index opened down 0.2%.

"Chinese tech sector is under pressure. Divergence should continue when market faces a lot of uncertainties over Chinese policies," Edison Pun, senior market analyst at Saxo Markets told Reuters .

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