The average long-term US mortgage rate fell for the fifth week in a row, benefiting prospective homebuyers in an unaffordable housing market. According to Freddie Mac, the average rate on a 30-year mortgage decreased to 7.22%, the lowest in 10 weeks. The decline in rates is encouraging for potential buyers, with purchase application activity rising. However, rates remain significantly higher than two years ago, limiting affordability for many Americans.from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/p0jheBJ
The Union cabinet has recommended setting up of the 16th Finance Commission to decide on sharing of taxes between the Centre and the states, setting off speculation on the chairman and members of the Constitutionally mandated panel, whose award would be effective for five years, starting April 2026. The panel, which will be constituted by the President over the next few days, is proposed to be given a simple mandate, instead of expanding it to include issues, such as, GST or ease of doing business, as was the case in the past.
The unemployment rate in urban areas for 15 years and above slowed in the July-September quarter compared to the same year ago period but remained at the same level as in the previous April-June quarter, data showed on Wednesday. Data released by the ministry of statistics and programme implementation showed the joblessness rate slowed to 6.6% in the three months to July-September, lower than the 7.2% recorded in the same year earlier period. In the April-June quarter of the current fiscal year it was at 6.6%
The government is considering deploying a series of measures to curb the growing menace of cyber frauds in the financial sector, including blocking the IMEI, the unique number of mobile devices, and restricting withdrawals from suspicious accounts to prevent its use in future incidents. Besides, a proposal to "whitelist" digital lending apps was among options discussed at a meeting in the finance ministry, amid an unprecedented rise in cyber frauds.
Top level exits at troubled edtech startup Byju's continue. The firm's chief technology officer (CTO) Anil Goel is leaving the company after three years, amid a broad restructuring process that India CEO Arjun Mohan is spearheading. In a statement on Monday, the firm said Jiny Thattil has been elevated as the new CTO. Thattil had been serving as the senior vice-president, engineering at Byju's and has also worked with companies like Amazon, InMobi and GE Healthcare in the past.
Bengaluru's Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR) is setting up India's first plant to convert CO2 into methanol at a power plant in Telangana. The plant, commissioned by the Central Mine Planning & Design Institute Limited (CMPDI) with a recommendation from Coal India Limited, is expected to be completed in 2024. The technology, developed by JNCASR's startup Breathe Applied Sciences, will help control environmental pollution by converting CO2 into methanol, reducing the need for imports from China.
Deregulation of domestic crude appears to have tipped the balance in favour of producers as green shoots of a free market emerge. In term deals signed after getting marketing freedom, state-run producer ONGC is commanding a premium over global benchmark Brent for Mumbai offshore oil in spite of attempts by buyers, also from the public sector, to beat down prices by leveraging discounts on Russian supplies. ONGC produces 13-14 million tonnes per annum of crude oil from its fields in the Arabian Sea, off the Mumbai coast.
State-owned oil and gas giants IndianOil, ONGC, BPCL, HPCL, Oil India Ltd, and Engineers India Ltd have been fined for the second quarter in a row for not having the requisite number of independent directors on board. The fines were imposed by the BSE and NSE, but the companies stated that the appointment of directors is done by the government and they have no role in it. Listing norms require companies to have independent directors and at least one woman director on the board. The companies have requested a waiver of the fines.
The board of Sebi on Saturday relaxed some of the guidelines for small not-for-profit organisations (NPOs) and non-government organisations (NGOs) to tap the social stock exchanges (SSEs) to raise funds, including halving the minimum fund-raising size to Rs 50 lakh. The board also approved a regulatory framework for index providers “with the objective of fostering transparency and accountability in governance and administration of financial benchmarks in the securities market,” the market regulator said in a release.
The Supreme Court on Friday appeared unpersuaded by lawyer Prashant Bhushan, appearing for a third-year law student, who attempted to punch holes in Sebi's probe into 24 cases of irregularities relating to alleged stock market manipulations by the Adani Group and argued that the regulator had failed to take note of "credible information" provided in the Hindenburg report. Bhushan said Hindenburg had received information about alleged stock market manipulations by the Adani Group from Mauritius authorities.
RBI deputy governor M Rajeshwar Rao has cautioned about 'dark patterns' in mis-selling of digital loans where customers are deceived into availing high-cost loans. The deputy governor has also said that RBI will relook at risk management framework for lenders on liquidity and market risk. According to Rao, mis-selling has taken on a digital form known as 'dark patterns'. These design interfaces and tactics are intended to deceive users into specific behaviours, such as obtaining high-cost, short-term consumer credit under the guise of an instant loan.
In a landmark collaboration, national mapping agency Survey of India (SoI) and Genesys International, a leading Indian mapping company, on Wednesday announced a strategic tie-up for a three-dimensional (3D) digital twin-mapping programme in India. Genesys thus becomes the first company to have a first public-private agreement with SoI for digital twin-mapping. Genesys, which specialises in advanced mapping, survey and digital twin creation and has a global presence, is “going to announce certain international projects next week”, the CMD said.
The Supreme Court in India has warned Patanjali Ayurved, a popular Ayurvedic products company, against making false claims in their advertisements about curing diseases. Petition filed by IMA. The court has threatened to impose heavy costs on the company for such practices. The court also instructed the government to consult and propose recommendations to tackle misleading advertisements. Patanjali Ayurved has been facing legal cases for spreading false information about allopathic medicines during the Covid-19 pandemic.
Sony has been ordered to face a £6.3 billion ($7.9 billion) lawsuit in the UK over claims that the company abused its dominant position, resulting in unfair prices for customers. The case, brought on behalf of nearly nine million people who purchased digital games or add-on content through Sony's PlayStation Store, alleges that the company's requirement for exclusive sales through its platform led to higher prices. Sony's lawyers argued that the case should be dismissed, but the Competition Appeal Tribunal ruled that it could proceed.
The US government has reportedly reached a settlement with cryptocurrency exchange Binance, amounting to over $4 billion. The settlement comes after Binance was accused of operating as an unregistered securities exchange and violating US securities laws. The charges against Binance were similar to those faced by the now-collapsed cryptocurrency exchange FTX. Binance's CEO, Changpeng Zhao, has also faced allegations of diverting customer funds and concealing assets.
Anne Richards has stepped down as the CEO of Fidelity International after five years and will assume the position of vice chair at the company. With over 30 years of experience in asset management, Richards, who previously led M&G Investments and served as CIO at Aberdeen Asset Management, oversaw significant growth during her tenure, with Fidelity's assets reaching $714.3 billion. In her new role as vice chair, Richards will focus on external relationships and strategic partnerships.
The BIS wants wooden tables to be able to bear 60 kg and beds to bear 110 kg, along with passing stability, strength, and durability tests. However, industry bodies argue that QCO is burdensome and should align with international standards. The government plans to bring wooden furniture under QCO from 2025. BIS argues that user behavior in India differs from other parts of the world. The BIS and industry will continue discussions to find a solution.
November is set to be a busy month for IPOs in India, with five companies, including Tata Technologies and Indian Renewable Energy Development Agency Ltd, planning to raise over Rs 7,300 crore collectively. The IPOs of Fedbank Financial Services, Flair Writing Industries, and Gandhar Oil Refinery India are also expected to open in November. This surge in IPO activity is attributed to factors such as strong post-listing returns and favorable market conditions.
India can become the biggest market for South Korean auto major Hyundai globally in the near future with demand for automobiles expected to remain strong, Hyundai Motor India Ltd (HMIL) MD and CEO Unsoo Kim said on Friday. HMIL accounts for 18.6 per cent (in the January-September period) of the South Korean automaker's global volumes. It expects to breach the 20 per cent mark in the next 2-3 years. It is in the third position after the US and South Korean markets.
AstraZeneca Pharma will exit manufacturing at its only plant based in Bangalore, as part of a ``global strategic review’’. The company with revenues of over Rs 1000 crore, feels that it can derive more value for its shareholders by transferring core manufacturing to a contract manufacturer. As a part of AstraZeneca's ongoing strategic review of its global manufacturing and supply network, the company intends to exit the manufacturing site in Bangalore, in due course, it said in a stock exchange filing.
Commerce and Industry Minister Piyush Goyal has announced that Tesla will double its imports of components from India and is in discussions with the government to manufacture and sell in the country. Goyal expressed his delight at the growing presence of Indian professionals at Tesla and the increasing importance of auto component suppliers from India in the company's supply chain. The government has been engaged with Tesla for some time, but the company's interest in India seems to have increased recently. Goyal also met with investors in the US, promoting India as an investment destination.
Coca-Cola India is experiencing faster growth in rural markets compared to urban regions, thanks to factors such as electrification coverage, higher incomes, and increased government spending. The adoption of UPI in these areas has also made it easier for consumers to make small payments. The company is focusing on expanding its presence in rural areas, while also tapping into urban markets to drive premiumization. Currently, Coca-Cola India reaches only about 41% of urban households and 32% of rural households, leaving ample room for growth.
State-run ONGC will start pumping crude from its $5-billion project off the Andhra coast in the next fortnight, bringing on stream the delayed project that is pivotal for reversing the company’s declining fortunes as a result of maturing fields. Output from the KG-DWN 98/2, the second deep sea project in the east coast after RIL-BP’s KG-D6 acreage, will give a fillip to domestic oil production at a time when dependence on imports is rising on the back of expanding oil demand.
The Securities and Exchange Board of India (Sebi) has given approval to four companies to raise funds through initial public offerings (IPOs). Fedbank Financial Services, Indian Renewable Energy Development Agency, EPACK Durable, and Suraj Estate Developers received observation letters from Sebi. The IPO of Fedbank Financial Services consists of a fresh issue of equity shares and an offer for sale by the promoter and existing shareholder. The equity shares of these companies will be listed on the BSE and NSE.
The Indian rupee fell 4 paise against the US dollar due to negative trends in domestic equities and foreign fund outflows. The rupee opened at 83.31 against the dollar and reached a low of 83.32. Experts predict that the RBI may intervene to keep the rupee within the 83.20-83.30 range. Meanwhile, the dollar index was trading lower, and global oil benchmark Brent crude futures declined. In the domestic equity market, the BSE Sensex and NSE Nifty both experienced declines.
The Sensex crossed the 65,000 mark during Sunday's Muhurat trading session, closing at 65,259 points, a 0.6% increase from Friday's close. This marked the start of Samvat year 2080. Nifty also saw a gain, closing at 19,526 points, up 0.5%. Muhurat trading is considered auspicious and is followed by the Gujarati trading community. The Sensex usually shows an uptick during this session as individual traders buy stocks while institutions are closed for Diwali.
Foreign Portfolio Investors (FPIs) have continued to sell Indian equities, with over Rs 5,800 crore being dumped this month due to rising interest rates and geopolitical tensions in the Middle East. This trend started in September and has continued into November, although the intensity of selling has decreased. Experts believe that the selling trend may not continue as the US Federal Reserve has indicated a dovish stance.
China's Alibaba Group Holding and JD.com saw sales increases for Singles' Day, with both companies reporting higher gross merchandise value and order amounts compared to the previous year. The annual shopping event, which serves as a barometer for Chinese consumption sentiment, focused on a low-price strategy this year. China's postal delivery companies also experienced a significant increase in packages handled during this period. The earnings reports from Alibaba, JD.com, and Tencent next week will provide insights into the recovery of domestic consumption.
The Supreme Court of India has upheld the validity of provisions in the Insolvency & Bankruptcy Code that allow action to be taken against personal guarantors. This means that personal guarantors who have been taken to the National Company Law Tribunal for personal insolvency may face the loss of their wealth and assets, as well as various restrictions during bankruptcy proceedings. The decision is expected to lead to an increase in the number of cases filed against ousted promoters who have lost control of their companies due to loan defaults.
Trade unions in Sweden are putting pressure on Tesla to sign a collective bargaining agreement, similar to what most employees have in the country. The metalworkers' union, IF Metall, has already staged a walkout at workshops where Tesla cars are serviced, and other trade unions have joined in solidarity. The unions are threatening to prevent the handling and painting of Tesla cars if an agreement is not reached. Former Swedish prime minister and head of IF Metall, Stefan Löfven, has also encouraged Swedes to suspend purchases of Teslas until an agreement is signed.
InCred Holdings, the parent company of InCred Financial Services, has become a unicorn, valued at over $1 billion, after successfully raising Rs 500 crore from a group of investors that includes a global private equity fund, corporate treasuries, family offices, and ultra-high net worth individuals (UHNIs). Incred is the second startup to enter the Indian unicorn club in 2023 after quick commerce platform Zepto (August fund-raise).
The state government of Odisha showcased its tourism potential at the World Travel Market in London to attract overseas tourists. The government delegation held meetings with stakeholders and promoted the annual eco-retreat glamping festival. The state's tourism industry has seen a significant recovery in 2022, with an 875% growth in the inflow of foreign tourists compared to 2021. The top three countries generating the most international tourists for Odisha were the USA, Japan, and Germany.
Country's leading retailer Reliance Retail has plans to take its Swadesh store, retailing traditional Indian art and craft, to the US and Europe. Reliance Retail on Wednesday opened its first standalone store of Swadesh at Hyderabad, which was inaugurated by Nita Ambani, founder and chairperson of Reliance Foundation. Spread over 20,000 square feet, Swadesh store would have over 400 products of handmade textiles, handicrafts, agricultural products that are listed with geographical indications.
Finance Minister Nirmala Sitharaman has urged consumers to always ask for a bill when making a purchase in order to minimize GST evasion. She also called on businesses to register for GST, emphasizing that a transparent tax regime benefits the country. The number of entities registered for GST has surpassed 1.4 crore, but Sitharaman stressed the need for businesses to issue bills to consumers. Several sellers have been encouraging cash payments to avoid paying GST, but Sitharaman emphasized the importance of transparency and contributing to the nation-building process.
TVS Supply Chain Solutions (TVS SCS) reported a net loss of Rs 30 crore in the second quarter, compared to a loss of Rs 51 crore in Q1. “On a consolidated basis, Q2 EBITDA margins expanded 100 bps YoY as margin expansion in the Integrated Supply Chain Solutions (ISCS) segment helped balance the Network Solutions (NS) segment,” the company said in a statement. “Consistent margins and decrease in interest expenses helped narrow the loss before tax and exceptional items to Rs 4.5 crore from a loss of Rs 10.7 crore in Q1 FY24.”
Bank chiefs have expressed concerns about the stress in unsecured loans, particularly in the fintech-driven digital lending of small-ticket personal loans. There is an expectation that the Reserve Bank of India (RBI) may make it more difficult for banks to lend to this segment, which is considered riskier. The State Bank of India (SBI) chairman stated that the unsecured book is better than the secured book, indicating that SBI does not extend loans below Rs 50,000.
Bank of Baroda (BoB) on Saturday reported a 28% rise in its net profit to Rs 4,253 crore for the quarter ended September, compared to a net profit of Rs 3313 crore in the corresponding quarter last year. The jump was due to an increase in net interest income, as loans grew faster than deposits. The profit would have been higher had it not been for two large accounts slipping into default. One was an international account of Rs 500 crore, and the second was an aviation loan of Rs 1,773 crore.
State Bank of India has reported a net profit of Rs 14,430 crore for the quarter ended September 2023, an increase of 8% over Rs 13,265 crore in the corresponding quarter last year. The increase was driven by a sharp drop in provisions for bad loans as asset quality improved. The operating profit was down 8% at Rs 19,417 crore compared to Rs 21,120 crore in the corresponding quarter last year, despite net interest income rising 18% Rs 39,500 crore.
Edtech startup Byju's has released its FY22 earnings statement, revealing that its core business continues to suffer losses. The company reported EBITDA losses of Rs 2,253 crore in FY22, only slightly lower than the losses of Rs 2,406 crore in FY21. However, revenues increased significantly to Rs 3,569 crore in FY22 from Rs 1,552 crore in FY21. Byju's core business includes its K-12 segment, tuition centers, and online exam prep division, excluding recent acquisitions.
The United Auto Workers union has reached a tentative contract deal with General Motors that includes investments in electric vehicles and wage increases for US hourly workers. The agreement follows a similar pattern set at Ford and Stellantis, providing base wage increases and improved conditions for temporary workers. The contract will raise wages for over 7,000 UAW workers in GM component plants, service parts warehouses, and subsystems operations. UAW leaders will now seek approval from union members at the Detroit Three.
Apple CEO Tim Cook praised India's market as an "extraordinary" one, highlighting the company's all-time revenue record in the country. Cook emphasized the potential for growth in India's expanding middle class and expressed satisfaction with the performance of Apple's retail stores in Mumbai and Delhi. Apple's market share in India has been increasing, aided by local manufacturing, competitive pricing, and strong marketing efforts. Cook also mentioned record-breaking achievements in other countries, but declined to compare the growth momentum in India to that of China.
Manny Maceda, the Worldwide Managing Partner and CEO of Bain & Co. has said, “India has always been a great, unique opportunity.”