Blame game begins at IL&FS as ex-independent directors defend their role. Want better returns? EPFO panel pitches for long-term investment in stocks. An expert group set up by the Employees’ Provident Fund Organisation (EPFO) has pitched for long-term investment in stocks for 5-10 years, saying this would yield better returns for over 60 million subscribers, according to a source.
The report of the panel was listed on the agenda of the meeting of its advisory body, Finance and Investment Committee (FIC), held on September 19. However, a source said the discussion on the report was deferred for the next meeting, expected to be scheduled sometime in the first half of next month. Business-standard. Business Standard. Oil at $100 to do more harm than good to global growth; India among losers. Rising oil prices are prompting forecasts of a return to $100 a barrel for the first time since 2014, creating both winners and losers in the world economy.
Exporters of the fuel would enjoy bumper returns, giving a fillip to companies and government coffers. By contrast, consuming nations would bear the cost at the pump, potentially fanning inflation and hurting demand. The good news is that Bloomberg Economics found that oil at $100 would mean less for global growth in 2018 than it did after the 2011 spike. Indo-French nuclear deal: 10 yrs after inking, project still a non-starter. Govt plans to bring in stricter disclosure norms for independent directors. Crisis-hit IL&FS to raise Rs 150 bn, hike borrowing limit to Rs 350 bn. IInfrastructure Leasing & Financial Services (IL&FS) has again defaulted on repaying loans — this time the amount in question is about Rs 2.7 billion — even as it received the shareholders’ nod to raise up to Rs 150 billion through debentures.
Cash-strapped IL&FS informed the BSE on Sunday that the company was unable to service its obligations on account of loans from banks and financial institutions of Rs 2.23 billion due on September 28 and Rs 470 million due on September 29. Earlier, it could not service repayments due on September 18 and 14. Also, there was a delay in servicing some inter-corporate deposits, which resulted in the downgrading of the company. Now the group flagship and holding company, IL&FS, and key group entities carry either the default ‘D’ grade or a sub-investment grade rating. Another breach hits FB, despite vow to protect data: Will users lose faith? Facebook Inc’s worst security breach ever is a major blow to the company’s effort to rebuild trust with users of the social network after a privacy scandal in March.
A hacker -- or hackers, as Facebook doesn’t know the number -- exploited several software bugs at once to obtain login access to as many as 50 million accounts. That access let the intruder act like users on their profiles, or on any applications where they signed in using Facebook. Facebook has since solved the vulnerability, but it doesn’t yet have answers to crucial questions. It’s unclear what the hackers did with the access. No let up in fuel prices, petrol nears Rs 91 a litre in Mumbai. LIC, Orix, SBI to subscribe to Rs 45 billion IL&FS rights issue. 58 mn living sans pension, govt spends 0.4% of GDP on key scheme: Survey. Fifty eight million people in India are living without pension or any other form of assistance, civil society organisation Pension Parishad has said.
Citing the State of Pensions in India Report 2018, Economist Prabhat Patnaik said the Central government spends as little as 0.04 per cent of the GDP for its flagship Indira Gandhi National Social Assistance (IGNOAPS) programme for ensuring income security for the elderly. "It will cost only about 1.6 per cent of the present-day GDP to ensure 90 per cent of the elderly population a pension of Rs 2,500 per person every month," Patnaik said. According to the National Social Assistance Programme (NSAP), a welfare programme administered by the Ministry of Rural Development, 80 million elderly people in India are entitled to a pension of Rs 200 per month.
This meagre amount reaches only about 22.3 million people, Pension Parishad Coordinator, Nikhil Dey said. Business Standard. Business Standard. Bad debts declining, PSU banks' loan recovery picking up: FM Jaitley. Business Standard. The Bharatiya Janata Party (BJP) on Monday accused Congress President Rahul Gandhi of having hatched an international conspiracy to derail the Rafale fighter jet deal.
The party said this conspiracy had international dimensions, and that it was meant to help India's enemies, particularly Pakistan, and also to benefit Congress chief's brother-in-law Robert Vadra, and arms dealer Sanjay Bhandari. Brent crude crosses $80 as OPEC rejects Trump's call for oil output boost. In relief for Essar Power MP, NCLT to hear insolvency case on Dec 3. Denying green cards to immigrants on benefits will only cost US more later. YES Bank board to meet today after RBI directive on Rana Kapoor's tenure. Bids invited for debt-ridden Videocon under insolvency resolution process.
Resolution professional of debt-ridden Videocon Industries Tuesday invited bids from prospective buyers to take control of the firm, which has interest ranging from consumer electronics to oil and gas.
Shares of realty, housing finance and NBFCs remain under pressure. Candidates can't be barred from polls on framing of criminal charges: SC. Supreme Court on Tuesday ruled that candidates cannot be disqualified on framing of charges against them in a criminal case.
However, the top court held that each candidate shall declare such charges to the election commission before contesting an election. The verdict was pronounced on a batch of pleas raising a question whether lawmakers facing criminal trial can be disqualified from contesting elections at the stage of framing of charges against them. The bench comprising Chief Justice of India Dipak Misra, R F Nariman, A M Khanwilkar, D Y Chandrachud and Indu Malhotra had earlier indicated that voters have a right to know the antecedents of candidates and the Election Commission could be asked to direct political parties to ensure that persons, facing criminal charges, do not contest on their tickets using their poll symbols. MARKET WRAP: Sensex up 347 pts; DHFL cracks 22%, YES Bank slips 2% Nifty Bank index ends 1.44 per cent higher.
Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME KOTAK MAH. BANK 1186.10 1148.70 37.40 3.26 3775399 ST BK OF INDIA 272.50 264.35 8.15 3.08 28945769 AXIS BANK 614.00 597.35 16.65 2.79 17512749 HDFC BANK 1960.00 1925.70 34.30 1.78 4169896 BANK OF BARODA 109.50 107.70 1.80 1.67 39565009 INDUSIND BANK 1691.05 1674.20 16.85 1.01 4500410 Sectoral gainers of the day on the NSE BSE Sensex: HDFC, Axis Bank, HUL among top gainers of the day Market at close The S&P BSE Sensex ended at 36,652, up 347 points while the broader Nifty50 index settled at 11,067, up 100 points. India's oil demand growth to slow down over next decades: Reliance India will continue to depend on oil as a mainstay of its energy but its oil demand growth will likely slow as the government pushes for cleaner energy and renewables, Harish Mehta, President, Refining & Marketing at Reliance Industries said on Tuesday.
Global Markets. OYO raises $1 bn from investors led by Softbank; firm now valued at $5 bn. Forget about the crash in the Indian equity market.
Indian hospitality start-up OYO has raised a massive $1 billion (Rs 72.63 billion) from four existing investors led by SoftBank. The latest fundraising is estimated to value OYO, which operates in the budget hospitality space, at around $5 billion (Rs 363 billion), a five-fold increase since September last year, when the last funding round took place. At Rs 5.91 trn, India's April-Aug fiscal deficit at 94.7% of annual target.
India's budgetary fiscal deficit for April-August at Rs 5.91 trillion accounted for 94.7 per cent of the full year's target of Rs 6.24 trillion, official data showed on Tuesday. The data furnished by the Controller General of Accounts (CGA) showed that the fiscal deficit during the corresponding five months of the previous fiscal was 96.1 per cent. Till August this year, the government's total expenditure stood at Rs 10.70 trillion (43.85 per cent of the budget estimates) while the total receipts were Rs 0.0479 billion (26.38 per cent of the budget estimates). "Rs 2673. 02 billion has been transferred to state governments as devolution of share of taxes by the government up to this period which is Rs 263.90 billion higher than the corresponding period of last year," the Finance Ministry said in a statement.
Out of the total expenditure, Rs 9.38 trillion was on revenue account and Rs 1.32 trillion on capital account. IL&FS will not be allowed to collapse, all options open: LIC chief. Curbing imports of non-essential items to shore up rupee to 68-70: DEA secy. Business Standard. Seven of top-10 cos lose m-cap worth Rs 897.79 bn; RIL takes biggest hit.
Seven of the 10 most valued Indian companies suffered a cumulative erosion of Rs 897.7967 billion in market valuation last week, in tandem with a weak broader market. Over the last week, the Sensex lost a hefty 1,249.04 points, or 3.28 per cent, to end at 36,841.60. Reliance Industries Ltd (RIL) took the steepest hit among the top-10 firms. Barring Tata Consultancy Services (TCS), HDFC Bank and ONGC, rest seven companies, including SBI, Maruti Suzuki India, HDFC and Infosys, witnessed losses in their market capitalisation (m-cap) for the week ended Friday. No concern on liquidity of NBFCs, says SBI chairman Rajnish Kumar. Assuring lending support to non-banking financial companies, SBI Chairman Rajnish Kumar Sunday said there was no concern on liquidity of such firms, amid ongoing debt crisis in IL&FS Group.
Shares of housing finance companies came under sudden heavy selling pressure Friday as investors raised concerns over rising cost of borrowing for the companies amid crisis at IL&FS. Rafale jets deal won't be cancelled; will wait for CAG report: Jaitley. Promising healthcare for everyone, PM Modi launches Ayushman Bharat. Prime Minister Narendra Modi on Sunday launched the 'Ayushman Bharat -Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY)' in Ranchi. The scheme, touted as the "worlds largest government funded healthcare programme", targets more than 500 million beneficiaries. The scheme will provide a cover of up to Rs 500,000 per family per year, for secondary and tertiary care hospitalisation through a network of Empanelled Health Care Providers (EHCP). The Ayushaman Bharat scheme has a great connection with two great Indian legends. "The scheme will cover the treatment of more than 1,300 illnesses including cancer, heart disease, kidney and liver disease, diabetes.
Treating serious diseases will not only be carried out in government but in many private hospitals also. Also, the number of beneficiaries of this scheme is equal to the total population of the entire European Union. "The government is working in a holistic way to improve the country's health sector. Stage set for two-way fight between IHCL, ITC to own Delhi's Taj Mansingh. NDMC, the capital's civic body, looks set to take the auction of Delhi's iconic luxury hotel Taj Mahal (popularly known as Taj Mansingh after the road on which it is located) next Friday after it received the minimum two bids for the asset.
30 new airports to come up in 15 mths, country's 100th coming up in Sikkim. Competition Commission approves ArcelorMittal's acquisition of Essar Steel. SBI hopes to resolve 7-8 stressed power assets by Nov 11: Rajnish Kumar. Govt mulls third notice to Whatsapp on tracing origin of fake messages. With WhatsApp giving no assurance to the government regarding tracing of the origin of fake messages, the Centre is likely to issue another notice to the Facebook-owned company next week. UPA to blame for HAL's exclusion from Rafale deal: Nirmala Sitharaman. US-China trade war may last 20 yrs, to be a mess for all parties: Jack Ma. Alibaba chairman Jack Ma said on Tuesday that trade frictions between the United States and China could last for two decades and would be "a mess" for all parties involved, citing weak trade rules.
Ma was speaking at an Alibaba investor conference hours after Washington said it would impose duties on an extra $200 billion worth of Chinese imports, drawing a warning from Beijing that it would retaliate. Ma said trade tensions would likely impact Chinese and foreign companies immediately and negatively. He predicted that Chinese businesses would move production to other countries in the medium-term to get around the tariffs. Govt okays Rs 91 bn worth of military equipment in 'Make in India' push.
The Defence Acquisition Council (DAC), chaired by Defence Minister Nirmala Sitharaman, met on Tuesday and accorded approval for the procurement of equipment worth over Rs 91 billion for the defence forces. Merger negative for Vijaya Bank, BoB; don't rush to buy PSBs, say analysts. Market fall wipes out Rs 2.72 trillion of investor wealth in two days. RCom to exit telecom biz completely, focus on real estate: Anil Ambani. Rupee tumbles 47 paise, hits new all-time low of 72.98 against dollar. Sebi approves framework for FPIs to trade in commodity derivatives market. In big win for Trump, US sanctions cripple Iranian oil exports by 35%
Aggressive and undiplomatic, certainly, but also extremely effective. With nearly 50 days to go before new U.S. oil sanctions against Iran enter into force, President Donald Trump has already managed to crush the country’s petroleum exports, dealing severe economic damage to Tehran. Business Standard. India again defers retaliatory tariffs on US to avoid full-blown trade war. India again deferred the imposition of retaliatory tariffs on some U.S. imports, signaling its readiness to find a solution to avert a trade war in contrast to the path China has taken. Infosys loses arbitration, will have to pay ex-CFO Rajiv Bansal Rs 122 mn. BoB, Dena, Vijaya Bank to merge; process completion may take 4-6 months. Investors lose Rs 1 trillion as rupee, trade war fears spook markets. Investor wealth eroded by over Rs 1 trillion Monday following a weak broader market where the BSE benchmark index tumbled more than 505 points to slip below the 38,000 mark. After key shareholders, IL&FS approaches government for bailout: Reports.
Govt to merge state-owned Vijaya Bank, Dena Bank and Bank of Baroda. 'Chandrayaan 2' to be launched on January 3, says Isro chief K Sivan. Ircon IPO opens today, should you subscribe? Rajasthan Assembly election: Cong takes crowdfunding route to finance polls. Workers in World's richest economies see biggest pay hike in a decade. Ready to put tariffs on another $267 billion Chinese goods, says Trump. Business Standard. Maruti Suzuki to start testing a fleet of 50 prototypes of EVs from October. Business Standard. How Rituparno Ghosh's Chitrangada challenged Bengali middle-class morality.
News digest: Numetal's bid for Essar, Haier ups India bet, and more. Global Mobility Summit: Champion idea of clean kilometres, says PM Modi. Faulty hip implants: Have reached out to 50% affected patients, says J&J. Haier Appliances to set up Rs 30.69 bn industrial park in Greater Noida. IL&FS board decides to seek a loan of Rs 30 billion from LIC and SBI. Numetal and ArcelorMittal are eligible to bid for Essar Steel, says NCLAT. Delhi's smoggy winter: 64% fine-particulate pollution comes from outside. Sweet spike: India set to replace Brazil as biggest producer of sugar. China will beat US to take world's largest economy crown; what after that? Wipro wins biggest contract of over $1.5 billion from Alight Solutions.
Even as India prepares to add 100 smart cities, one tells a cautionary tale. Biggest bond inflow in 7 months fails to rescue rupee; headwinds to persist. Reliance Group rejects allegations, says its Rafale offsets just Rs 66 bn. India manufacturing growth eases in August on softer domestic demand: PMI. Direct tax collections grow at 6.6% and corporation tax barely 1% MARKET WRAP: Sensex dips 333 pts; PMI data, proposed FPI norms spook Street.
Vedanta Resources Chairman Anil Agarwal to take company private on Oct 1. Valuations, premium, earnings: India stock market surge explained in charts. Vedanta gets 41 oil blocks out of 55 in first round of open acreage auction. Asian Games 2018 LIVE Updates Day 11, Asian Games Live Score & Results. China's belt and road runs into fresh trouble; now in Mahathir's Malaysia. Soon, your kirana shopkeeper can help you shop online with Amazon Easy. MARKET WRAP: Indices at new high; Sensex up 442 pts, Nifty hits 11,700. RCom completes sale of fibre assets to Reliance Jio for Rs 30 billion. Allahabad HC denies interim relief to power cos on RBI stressed loan norms. Diesel at record high of Rs 69.46 a litre, petrol inches towards Rs 78 mark. No VIP culture at airports! Pakistan bans discretionary use of state funds.
Three American cos directly involved in Nirav Modi-led PNB fraud: US probe. Warren Buffett's Berkshire Hathaway to invest in Paytm parent firm: Report. Business Standard. Asian Games 2018 LIVE, Day 9: Shuttlers, athletes share medal burden. Statsguru: Households with smaller landholdings earn more from wage labour. Daily wages in India doubled in 18 yrs, but inequalities grow: UN report.
NDA vs UPA: Jaitley cites IMF report to highlight Modi govt's performance. Rafale row: Anil Ambani files Rs 5000 crore defamation suit. RCom gets relief from overseas bondholders; plan cleared for a 42% haircut.