India's April-Sept fiscal deficit touches $70.4 bln
India's fiscal deficit during April-September, the first half of the current fiscal year, stood at ₹5.27 trillion ($70.4 billion) or 35% of the budgeted target for the whole year, according to government data.
Net tax receipts were ₹9.2 trillion while total expenditure was ₹16.3 trillion.
Rupee inches higher by 4 paise to end at 74.88 against US dollar
The rupee gained 4 paise to close at 74.88 against the US dollar on Friday despite volatile domestic equities, as IPO-related inflows and some pullback in crude oil prices supported the local unit.
At the interbank forex market, the domestic unit witnessed an intra-day high of 74.74 and a low of 74.98 during the day's trade. On Thursday, the rupee had settled at 74.92 against the US currency.
Power prices see price correction on improved coal supplies, onset of winter season
Electricity prices in the day-ahead market and real-time market on Indian Energy Exchange witnessed a significant price correction in the last seven days following improved coal supplies and low demand due to the onset of the winter season.
The average price of electricity in the last 7 days (from 23 to 29 October’21) in the two key electricity market segments have corrected significantly with the average day-ahead market price at ₹3.75 per unit and the average real-time market price at ₹3.03 per unit. The exchange prices were about ₹14 per unit two weeks back, according to the data available on the IEX website.
Sensex slumps 678 pts, Nifty ends below 17,700
Sensex tumbled 678 points on Friday, tracking losses in Reliance Industries, Infosys and HDFC Bank amid a weak trend in global markets. The 30-share index plunged 1.13% to end at 59,306.93. NSE Nifty fell 185.60 points or 1.04% to 17,671.65.
Tech Mahindra was the top loser in the Sensex pack followed by NTPC, IndusInd Bank, Kotak Bank and Reliance Industries. On the other hand, UltraTech Cement, Tata Steel, Maruti, Titan and Dr Reddy's were among the gainers.
Gold declines ₹271, silver cracks ₹687
Gold in the national capital on Friday slipped ₹271 to ₹46,887 per 10 grams from ₹47,158 per 10 grams in the previous trade, reflecting a decline in international precious metal prices, according to HDFC Securities.
Silver also slid 687 to ₹63,210 per kilogram from ₹63,897 per kilogram in the previous trade.
RBI board reviews economic situation
The Central Board of Directors of the RBI on Friday reviewed the current domestic and global economic situation and challenges and also deliberated upon possible measures for addressing the emerging challenges.
The board also discussed the working of sub-committees of the central board and activities of a few Central Office Departments, including the nationwide survey among bank customers regarding banks' grievance redress system and the functioning of the Ombudsman schemes.
Govt approves 8.5% interest rate on EPF for FY'21
The government has approved 8.5% rate of interest on employees' provident fund for the 2020-21 fiscal. There are over five crore subscribers of the Employees Provident Fund Organisation (EPFO).
The 8.5% rate of interest on provident fund deposits for the last financial year was decided in March, this year by the EPFO's apex decision making body Central Board of Trustees (CBT).
Labour Ministry hikes minimum wages for central sphere workers from Oct 1
The Ministry of Labour and Employment has increased the rate of variable dearness allowance for 1.5 crore central sphere workers.
The hike, which will be effective from October 1, will result in an increase in the minimum wages for central sphere employees and workers.
DLF cuts net debt by 16% in Sep quarter
Realty major DLF's net debt reduced to ₹3,985 crore in the September-ended quarter falling 16% from ₹4,745 crore in the June-ended quarter of this fiscal year. Improved cash flows amid a revival in housing demand helped the company.
Honda to start battery sharing service for e-three wheelers in India next year
Honda Motor Co has planned to begin a battery sharing service for electric three-wheelers in India in the first half of 2022.
The Japanese auto maker will establish a local subsidiary in India to conduct a battery sharing service business. The subsidiary will install a number of battery swapping stations and conduct battery sharing service in the cities. Honda will work with electric rickshaw manufacturers and begin the service in selected cities first and expand to other areas.
G-20 leaders to tackle energy prices, other economic woes
Leaders of the Group of 20 countries gathering for their first in-person summit since the pandemic took hold will address few issues hurting the global recovery post pandemic: an energy crunch leading to higher fuel and utility prices, new COVID-19 outbreaks and logjams in the supply chains.
The summit will allow leaders representing 80% of the global economy to talk and apply peer pressure on all those issues.
Govt withdraws decision on sharing IRCTC convenience fee
The Ministry of Railways withdrew its decision on sharing of convenience fee earned by IRCTC on online bookings of train tickets.
On Thursday, the Ministry of Railways asked Indian Railways Catering and Transportation Corporation (IRCTC) to share 50% of its revenue earned as a convenience fee with the national transporter.
Convenience fees charged from the customers for the service of online ticket booking generate significant revenue for IRCTC.
After the ministry's decision, shares of IRCTC tanked nearly 10% in opening trade before recovering some ground after the government decided to withdraw its decision.
Jio pays ₹10,700 cr as outstanding spectrum auction dues
Reliance Jio last week paid about ₹10,700 crores to the telecom department as the outstanding amount for spectrum acquired in the 2016 auction.
The government recently approved a relief package for the telecom sector. As per the measures, telcos have the option to defer payment of the spectrum auction instalments due up to four years excluding the instalments due for spectrum auction 2021.
Rupee rises against US dollar in early trade
The rupee rose 15 paise to 74.77 against the US dollar in opening trade on the expectation of better inflows into high profile initial public offerings (IPOs).
At the interbank foreign exchange, the rupee opened at 74.78 against the dollar and rose to 74.77, a 15 paise increase over its previous close
IndiGo parent posts quarterly loss
Interglobe Aviation Ltd, which operates Indigo, reported a quarterly loss as higher fuel expense outweighed rebound in travel demand.
Interglobe said its aircraft fuel expenses in the quarter soared 207.8% to 19.89 billion rupees. IndiGo's net loss widened to 14.40 billion rupees ($192.32 million) in the three months to Sept. 30, from 11.95 billion rupees a year earlier.
Passenger growth across airlines jumped 136.6% in August and 79.2% in September compared to last year. Almost 7.07 million passengers flew in September, compared to 6.7 million in August.
Amazon, Apple dented by supply and chip troubles
Amazon and Apple's quarterly profits were weighed down by supply chain bottlenecks and the global chip shortage.
Apple's iPhone and iPad sales were held back due to supply constraints, while Amazon struggled to meet products demands.
Amazon's profit in the recently ended quarter slipped to $3.2 billion, and Apple reported a net income of $20.5 billion on revenue of $83.4 billion, below analysts' expectations.
The semiconductor shortage on account of a surge in demand due to the Covid-19 pandemic and US-China trade tensions has affected industries across the globe, from tech giants to carmakers.
Handicraft exports grow 60% during Apr-Sept
India's handicraft exports during the first six months of the current fiscal rose over 60.34% as compared with the same period last year. According to the textiles ministry, exports stood at Rs 15,995.73 crore.
The 52nd edition of the IHGF-Delhi Fair - Autumn 2021 being held at the India Expo Centre & Mart, Greater Noida, was inaugurated on Thursday.
Das reappointed as RBI governor for another three years
The government extended the term of Reserve Bank of India Governor Shaktikanta Das for another three years or until further orders.
An official order dated October 28 said the government has reappointed Das as the governor of the central bank for a period of three years beyond December 10, 2021.
Das took the helm as the RBI's 25th governor on December 11, 2018, for a period of three years.
As markets get ready for the reversal of loose monetary policy, stability at central bank leadership is seen as imperative.
Oil set for first weekly drop since August
Oil prices are headed for their first weekly losses since August as U.S. oil inventories rose more than expected, and Iran said it was resuming talks with Western powers which could end sanctions.
U.S. West Texas Intermediate (WTI) crude fell 4 cents to $82.77 a barrel while Brent crude futures rose 0.1%, to $84.44 a barrel. Both Brent and WTI were on track to fall about 1% for the week. This would be the first weekly drop in 10 weeks for WTI and the first in eight weeks for Brent.
U.S. oil stocks rose much more than expected in the week to Oct. 22 and now all eyes are on the next meeting of the OPEC+, on Nov. 4. whether they will stick to their plan to add 400,000 barrels per day of supply each month until April 2022.
Asian markets update | Sensex falls 700 points
The Indian benchmark indices, Sensex and Nifty opened on a weaker note amid mixed global cues. The Sensex fell over 700 points in the early trade while Nifty also lost over 150 points.
At 9:27 IST, Sensex was down 750 points or 1.25% at 59,234.69 and the Nifty was down 189 points or 1.01% at 18,521.97.
Sensex plunged 1,159 points yesterday after across-the-board selloff.
Asian shares fell after Amazon and Apple quarterly earnings opposed a recent strong trend and growth and inflation fears continued to weigh.
Chinese shares fell less than other markets as local blue chips traded flat. However, the Hong Kong benchmark was down 0.83%, primarily weighed by mainland Chinese property stocks.
Morning note:
The Union government re-appointed Shaktikanta Das as the Governor of the Reserve Bank of India (RBI) for a period of three years beyond December 10. Das was previously the department of economic affairs secretary at the finance ministry before being appointed as the head of RBI in 2018 for a three year period.
The initial public offering of FSN E-Commerce Ventures, the entity that operates Indian beauty startup Nykaa, was fully subscribed on the first day of sale.
Novelis, a subsidiary of India’s Hindalco, will invest $375 million in its Zhenjiang operation in China to expand recycling and production for aluminium products used in the auto industry. Metal recycling will play an important role in the energy transition, which includes a switch to electric vehicles from internal combustion engine cars. The world's largest aluminium recycler expects to complete the expansion project by the middle of 2024.
Cash-strapped Evergrande Group has made payments for an offshore bond coupon ahead of the expiry of a grace period on Friday, meeting its second U.S. dollar repayment obligation this month. – John Xavier
---- Edited by John Xavier
(With inputs from Reuters, PTI and other news agencies.)
