ISSUE: 707 2024 13 December 2024
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Retail inflation eases to 5.48% in November
from 6.21% in October: India’s retail inflation
eased to 5.5 percent in November, easing from a 14-
month high of 6.2 percent in the previous month, as
food prices cooled off. Food inflation had eased to 9
percent for the month compared with 10.9 percent
in October. December 2024 inflation at around 5.4
percent will translate in 3QFY25 inflation to be in line with RBI’s forecast.
A higher base effect of pulses, fruits, vegetables and spices inflation will
be helpful in further decline in inflation in December 2024, which we
expect to be around 5 percent. However, edible oils and personal care &
effects may pose some challenge," added Paras Jasrai, senior analyst,
India Ratings and Research.
(Moneycontrol)
Industrial production marginally goes up to 3.5% in October,
up from 3.1% in September: In October 2024, India's industrial
output, as measured by the Index of Industrial Production (IIP),
witnessed a growth of 3.5 per cent, surpassing the 3.1 per cent recorded in
September. According to official data released on December 12, the index
rose from 144.9 in October 2023 to 149.9, indicating a positive trend in
India's industrial sector. October saw a second consecutive increase in
industrial output, following a slight decline in August. Among the major
industries, mining saw a 0.9 percent rise, manufacturing grew by 4.1
percent compared to the previous month's 3.9 percent, and electricity
showed a modest growth of 2 percent. The core sector industries, which
make up 40 percent of the Index of Industrial Production, also performed
well in October. India's core sector output expanded by 3.1 percent in
October, up from a revised 2.4 percent in September, with four out of
eight sectors experiencing accelerated growth.
(Business Today)
Finance Ministry seeks approval of additional expenditure of
over ₹44000 crore for FY25, impact on fiscal deficit unlikely:
Finance Ministry on Thursday sought approval of fresh cash expenditure
of over ₹44000 crore mainly on farm sector. However, this is unlikely to
impact the fiscal deficit target of 4.9 per cent, as prescribed in the full
budget for Fiscal Year 2024-25, presented in July this year.
(Business Line)
ECB cuts interest rates for fourth time this year: The European
Central Bank cut interest rates for the fourth time this year on Thursday
and kept the door open to further easing ahead as inflation closes in on its
goal and the economy remains weak. The central bank for the 20
countries that share the euro reduced the rate it pays on bank deposits,
which drives financing conditions in the bloc, to 3.0% from 3.25%. It was
at a record 4.0% only in June. It also signalled that further cuts are
possible by removing a reference to keeping rates "sufficiently
restrictive", economic jargon for a level of borrowing costs that curbs
economic growth. "Financing conditions are easing, as the Governing
Council’s recent interest rate cuts gradually make new borrowing less
expensive for firms and households," the ECB said.
(Moneycontrol)
HDFC Bank gets warning letter from SEBI
over alleged regulatory non-compliance:
HDFC Bank informed the stock exchanges that it
has received an administrative warning letter from
the Securities and Exchange Board of India (SEBI).
The regulator issued an administrative warning
letter to HDFC Bank regarding alleged non-
compliance with multiple regulations. The warning pertains to non-
compliance with certain provisions of SEBI’s regulations related to
merchant bankers, issue of capital and disclosure requirements, and
prohibition of insider trading.
(Business Today)
Govt has asked nationalised banks to prematurely retire
underperforming employees: The government has issued a
clarification on queries regarding a directive for nationalised banks to
review employee performance, with implications for premature
retirement of those deemed underperforming. In the Lok Sabha,
parliamentarians Subbarayan K and Selvaraj V sought clarity on whether
such measures were officially mandated and the criteria involved in these
evaluations. The lawmakers asked whether the government has directed
the nationalised banks to conduct performance review of their employees
and officers and prematurely retire those who are found to be below the
norms. Replying to queries, Minister of State Pankaj Chaudhary said that
public sector banks (PSBs) operate as board-governed entities and their
employee service conditions are regulated by their respective service
regulations and bipartite settlements. He stated that provisions for
performance reviews already exist, and various factors such as service
profile, health status, key responsibilities, annual performance reports,
vigilance proceedings, and leave records are considered during these
evaluations. The Department of Financial Services has advised PSBs to
conduct periodic reviews in line with existing guidelines to enhance
administrative efficiency and effectiveness in government functions.
(Financial Express)
GNPA of PSBs declines to 3.12 pc in Sep from peak of 14.58 pc
in Mar 2018: FinMin: Gross non-performing assets (NPAs) of public
sector banks (PSBs) have declined to a decade low of 3.12 per cent at the
end of September 2024 from a peak of 14.98 per cent in March 2018 on
the back of measures like the 4Rs -- recognition, recapitalisation,
resolution, and reform -- taken by the government, the finance ministry
said on Thursday. Since 2015, the government implemented a
comprehensive 4Rs strategy of recognising NPAs transparently,
resolution and recovery, recapitalising PSBs, and reforms in the financial
system to address the challenges faced by PSBs, it said.
(Economic Times)
TransUnion CIBIL elevates Bhavesh Jain as managing director
and CEO.: TransUnion CIBIL has appointed Bhavesh Jain as its new
Managing Director and CEO, succeeding Rajesh Kumar. Jain, with a
strong background at Citi and Kone, served as CIBIL's chief revenue
officer for the past five years. His focus is on expanding credit access in
India and promoting financial inclusion.
(Economic Times)
Irdai may limit insurance companies' overdependence on
parent banks: The Insurance Regulatory and Development Authority of
India (Irdai) is likely to bring in regulations to limit the overdependence
of life insurance companies on their parent banks for business sources
through bank channels, sources said. Irdai also plans to encourage
diversification across multiple distribution channels to ensure balanced
growth across the industry. Although the companies can continue to focus
on certain channels where they have strength, diversification would be an
ideal, sources added.
(Business Standard)
Zomato’s Blinkit launches Bistro, a separate
10-minute food delivery app, to compete with
Zepto Cafe: Blinkit, the quick commerce arm of
Zomato, has launched Bistro, a new food delivery
app that will deliver snacks and other food items in
10 minutes to take on Zepto Cafe. The launch comes
one day after Zepto, an arch-rival of Blinkit,
announced it will roll out a different app for Cafe, its food delivery
business. To be sure, this is Zomato’s second attempt at 10-minute food
delivery after Zomato Instant which was shuttered earlier. Quick
commerce companies like Blinkit and Zepto have expanded quickly, going
from delivering groceries around three years ago to selling apparel and
medicines this year. Rapid delivery companies are growing fast to create
additional revenue streams and find a new growth lever, which is where
10-minute food delivery fits in. Blinkit’s Bistro, Zepto Cafe and Swiggy
Bolt all sell food items like samosas, sandwiches, coffees, pastries and
other readymade items to customers.
(Moneycontrol)
Uber launches women-only bike taxi service 'Moto Women' in
Bengaluru: Ride-hailing firm Uber on Thursday rolled out Uber Moto
Women in Bengaluru, a first-of-its-kind service that offers women-only
bike rides. The company plans to scale it up in other top cities such as
Delhi, Mumbai, Kolkata, Chennai and Hyderabad. The on-demand two-
wheeler ride service connects women riders with women drivers and is
designed to address women’s safety and mobility needs. “For Uber, this is
a global-first initiative. We don’t have such women-only products
anywhere else in the world. We started with Bengaluru, as it is the largest
market for bike-taxis. The city sees 5 million bike-taxi trips across all the
platforms per month and this serves about a million riders and 100,000
drivers,” Abhishek Padhye, Head of Regional Business Operations, Uber
India and South Asia, told Business Standard.
(Business LineStandard)
India’s FDI Journey Hits $1 Trillion: India has achieved a
remarkable milestone in its economic journey, with gross foreign direct
investment (FDI) inflows reaching an impressive $1 trillion since April
2000. This landmark achievement was bolstered by a nearly 26% rise in
FDI to $42.1 billion during the first half of the current fiscal year. Such
growth reflects India’s growing appeal as a global investment destination,
driven by a proactive policy framework, a dynamic business environment,
and increasing international competitiveness. FDI has played a
transformative role in India’s development by providing substantial non-
debt financial resources, fostering technology transfers, and creating
employment opportunities. Initiatives like "Make in India," liberalised
sectoral policies, and the Goods and Services Tax (GST) have enhanced
investor confidence, while competitive labour costs and strategic
incentives continue to attract multinational corporations.
(PiB)
Cabinet clears Rs 20,000 crore 'Make in
India' projects for 12 Su-30MKI fighter jets,
100 K-9 howitzers: The Cabinet Committee on
Security(CCS) on Thursday cleared two major
projects worth around Rs 20,000 crore for 12 Su-
30 MKI fighter jets for the Indian Air Force and
100 K-9 Vajra Self-propelled howitzers for the
Indian Army in a major success for Make in India
program in defence sector. According to news agency ANI, the two
projects were cleared by the CCS and the contract for the Su-30-MKI jets
has already been inked. The Ministry of Defence said that a contract for
the procurement of 12 Su-30MKI aircraft along with associated
equipment has been signed between Ministry of Defence and Hindustan
Aeronautics Limited (HAL), at an approximate cost of Rs 13,500 crore
inclusive of taxes and duties. The aircraft would have an indigenous
content of 62.6%, enhanced due to indiginisation of many components to
be manufactured by Indian defence industry.
(Moneycontrol)
Union Cabinet approves ‘one nation, one election’ Bill: The BJP-
led Union Cabinet on Thursday gave its approval to the “one nation, one
poll” plan. The decision was taken at a meeting of the Union Cabinet
chaired by Prime Minister Narendra Modi, reports PTI, citing sources. A
high-level panel headed by former President Ram Nath Kovind in March
had recommended simultaneous elections for the Lok Sabha and state
Assembly elections in a phased manner. The government is keen on
holding wider consultations on bills which are likely to be referred to a
parliamentary committee. Sources said the government was also keen to
consult the Speakers of various state legislative assemblies through the
committee.
(Business Standard)
SEBI likely to tighten SME IPO rules: The Securities and Exchange
Board of India (Sebi) is likely to tighten rules around small and medium
enterprises (SMEs) initial public offerings (IPOs) and widen the
definition of unpublished price-sensitive information (UPSI). The
decisions are likely at the board meeting on December 18, informed
sources. The market regulator may announce a raft of other changes to
ease doing business in the market ecosystem. The move to tighten SME
listing rules comes amid concerns of manipulation and misconduct.
(Business Standard)
RBI KEY RATES FOREX EQUITY
(RBI REF. ) /COMM. MARKET
Repo Rate: 6.50% INR / 1 USD : 84.8732 Sensex: 81289.96 (-236.19)
SDF: 6.25% INR / 1 GBP : 108.3712 NIFTY: 24548.70(-93.10)
MSF /Bank Rate: 6.75% INR / 1 EUR : 89.1961 Bnk NIFTY: 53216.45 (-174.90)
*CRR: 4.00% INR /100 JPY: 55.6400
SLR: 18.00%
BUSINESS/FINANCIAL CONCEPTS
UPSTREAM
Upstream is a term for the operations stages in the oil and gas industry
that involve exploration and production. Oil and gas companies can
generally be divided into three segments: upstream, midstream, and
downstream. Upstream firms deal primarily with the exploration and
initial production stages of the oil and gas industry.
Many large oil companies are called "integrated" because they combine
upstream activities with midstream and downstream operations, which
take place after the production phase through to the point of sale.
The upstream sector of the oil and gas industry includes all the steps
involved from the preliminary exploration through the extraction of the
resource. Upstream companies can be involved in all the steps of this
phase of the life cycle of the oil and gas industry, or they may only be
involved in part of the upstream sector.
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