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Industry body PHDCCI submits recommendations related to housing, banking sectors to RBI-Telangana Today

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Industry body PHDCCI has submitted several recommendations on issues related to the housing sector, banking and foreign trade to RBI

Published Date – 08:05 PM, Tue – 22 August 23


Industry body PHDCCI submits recommendations related to housing, banking sectors to RBI

Industry body PHDCCI has submitted several recommendations on issues related to the housing sector, banking and foreign trade to RBI

New Delhi: Industry body PHDCCI has submitted several recommendations on issues related to the housing sector, banking and foreign trade to RBI Governor Shaktikanta Das.

A delegation of PHDCCI led by its president Saket Dalmia met the governor and submitted the recommendations.
Amidst global economic challenges and ongoing pandemic impact, the chamber made a strong case for lowering housing sector interest rates to stimulate growth.

Lower rates can invigorate investments, bolster consumption, enhance competitiveness, and aid industries facing headwinds, it said.

“While we understand and appreciate the efforts of the Reserve Bank of India in stabilising the economy and ensuring liquidity, we believe that a reduction in interest rates at this juncture would provide a much-needed boost to our industry,” it said in the submission to Das.

The chamber highlighted several issues related to the banking sector, including the rectification of export realisation purpose codes and the protection of GST input benefits.

It also called for permission to acquire existing units/companies in India using rupee loans, similar to overseas acquisitions.

At present, a bank loan in Indian rupee is not permitted for the acquisition of any existing unit/ company in India, whereas the same is available for acquiring any unit/ company outside India, PHDCCI said.

Its recommendations on foreign trade include recovery of foreign bank charges from export proceeds, and liberalising pre-shipment credit in foreign currency (PCFC).

The chamber also recommended that the 90 days limit fixed by RBI for classifying over dues of MSMEs should be increased to 180 days so that they are not constrained to divert their working capital towards servicing their loan instalments and clearing their over dues at the cost of their normal business operations.

Business

BSE, NSE impose Rs 2.24 lakh fine each on Adani Green Energy for non-compliance-Telangana Today

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Adani Green Energy on Tuesday said BSE and National Stock Exchange have imposed a fine of Rs 2.24 lakh each on the company for certain non-compliance

Published Date – 08:50 PM, Tue – 22 August 23


BSE, NSE impose Rs 2.24 lakh fine each on Adani Green Energy for non-compliance

Adani Green Energy on Tuesday said BSE and National Stock Exchange have imposed a fine of Rs 2.24 lakh each on the company for certain non-compliance

New Delhi: Adani Green Energy on Tuesday said BSE and National Stock Exchange have imposed a fine of Rs 2.24 lakh each on the company for certain non-compliance.

The fines have been imposed “for non-compliance with the requirements pertaining to the composition of the Board, including failure to appoint a woman director”, the company stated in an exchange filing.

“BSE Ltd and the National Stock Exchange of India Ltd have, vide their letter dated August 21, 2023 (received by us at 8.00 pm and 9.00 pm, respectively), imposed a fine of Rs. 2,24,200 each on the Company…for certain non-compliance,” the filing said.

Adani Green Energy said that the non-compliance has occurred due to untimely demise of a women director and the exit of an independent director.

Since then, the company has been running an extensive process of identifying potential independent directors who can fill these vacancies and is in advanced stage of discussions / finalisation.

The company remains committed to ensuring optimum compliance with all applicable laws, it stated.

Business

Rupee rises 7 paise against US dollar in early trade-Telangana Today

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On Tuesday, the rupee had recovered from its all-time low levels and settled higher by 14 paise at 82.99 against the US dollar.

Published Date – 10:15 AM, Wed – 23 August 23


Rupee rises 7 paise against US dollar in early trade



Mumbai: The rupee was trading in a narrow range and appreciated by seven paise against the US dollar in early trade on Wednesday, amid a muted trend in domestic equities.

Forex traders said the rupee is trading in a narrow range as investors remain cautious ahead of the BRICS summit and US Federal Reserve Chair Jerome Powell’s speech at Jackson Hole Symposium this week.

At the interbank foreign exchange, the domestic unit opened at 83.02, then touched a high of 82.92 against the American currency, registering a rise of seven paise over its last close.

On Tuesday, the rupee had recovered from its all-time low levels and settled higher by 14 paise at 82.99 against the US dollar.

“Market awaits with baited breadth the Jackson Hole Symposium between 24th and 26th in which Fed Chairperson’s speech will be keenly watched,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.08 to 103.48.

Brent crude futures, the global oil benchmark, rose 0.17 per cent to USD 84.17 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 8.36 points or 0.01 per cent higher at 65,228.39. The broader NSE Nifty advanced 8.20 points or 0.04 per cent to 19,404.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 495.17 crore, according to exchange data.

Business

Markets pare early gains; trade lower amid continuous foreign fund outflows-Telangana Today

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Foreign Institutional Investors (FIIs) offloaded equities worth Rs 495.17 crore on Tuesday, according to exchange data.

Published Date – 10:22 AM, Wed – 23 August 23


Markets pare early gains; trade lower amid continuous foreign fund outflows

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 495.17 crore on Tuesday, according to exchange data.

Mumbai: Equity benchmark indices began the trade on a bright note on Wednesday but later pared their gains to quote lower amid mixed global market trends and continuous foreign fund outflows.

The BSE Sensex climbed 216.07 points to 65,436.10 in early trade. The NSE Nifty gained 53.75 points to 19,450.20.

Later both the benchmark indices pared their early gains and were trading in the negative territory. The BSE benchmark quoted 76.55 points lower at 65,143.48 and the Nifty traded at 19,376.35, down 20.10 points.

From the Sensex pack, Tata Steel, Axis Bank, JSW Steel, Infosys, Tata Consultancy Services, Reliance Industries, UltraTech Cement and NTPC were the major gainers.

Jio Financial Services, Bharti Airtel, ITC, Kotak Mahindra Bank, IndusInd Bank and Mahindra & Mahindra were among the laggards.

In Asian markets, Tokyo and Hong Kong were quoting in the green while Seoul and Shanghai traded lower.

The US markets ended on a mixed note on Tuesday.

“There are no immediate triggers which can take the market sharply up or down. Investors may wait and watch for new data expected this weekend from the US. Since the dollar index and the US bond yields remain high, FIIs will not be strong buyers in the market,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Global oil benchmark Brent crude gained 0.15 per cent to USD 84.16 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 495.17 crore on Tuesday, according to exchange data.

The BSE benchmark had eked out a marginal gain of 3.94 points or 0.01 per cent to settle at 65,220.03 on Tuesday. The Nifty inched up 2.85 points or 0.01 per cent to settle at 19,396.45.

Business

Jio Financial Services shares see 5% drop, trigger lower circuit for 3rd day-Telangana Today

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Now, JFSL will be removed from all the S&P BSE Indices effective prior to the opening of trading on August 29, 2023, it had said.

Published Date – 12:15 PM, Wed – 23 August 23


Jio Financial Services shares see 5% drop, trigger lower circuit for 3rd day



New Delhi: Shares of Jio Financial Services Ltd, the demerged financial services unit of Reliance Industries, fell by 5 per cent on Wednesday to hit its lower circuit limit for the third day running.

The stock declined 5 per cent to hit its lower circuit limit of Rs 227.25 on the BSE.

At the NSE, it fell by 5 per cent to hit its lowest trading permissible limit for the day at Rs 224.65.

The company commanded a market valuation of Rs 1,44,378.38 crore.

The stock has been hitting lower circuit limits for the third day running on Wednesday.

Shares of Jio Financial Services listed on the bourses on Monday, with the stock falling nearly 5 per cent to hit the lower circuit limit.

It fell 5 per cent to hit the lower circuit limit on Tuesday also.

Jio Financial Services Ltd (JFSL) demerged from Reliance last month.

Leading stock exchange BSE on Tuesday postponed the removal of Jio Financial Services Ltd from all the S&P BSE indices to August 29.

Earlier, the stock was scheduled to be removed from the indices on August 24.

“AIPL (Asia Index Private Ltd) is aware of the recent lower circuit hitting for JFSL. Since the stock has hit lower circuit limits for two consecutive days — Monday, August 21 and Tuesday, August 22, the index committee has determined to postpone the removal of JFSL from all the S&P BSE Indices by another 3 days,” according to a BSE circular on Tuesday.

Now, JFSL will be removed from all the S&P BSE Indices effective prior to the opening of trading on August 29, 2023, it had said.

Asia Index is a joint venture between BSE and S&P Dow Jones Indices.

Moreover, if JFSL continues to hit lower circuits in the next two days, the removal date will be deferred by another three days, according to the notice.

Additionally, in case JFSL does not hit the lower circuit limit on either of the next two days but hits the lower circuit limit on the third day, the removal of JFSL from all the S&P BSE Indices will be deferred by another 3 days, it added.

Reliance Industries demerged its financial services undertaking into RSIL (Reliance Strategic Investments Ltd), which was renamed as JFSL. Shareholders got one JFSL share for each Reliance share they held.

Business

First time in 4 years, MFIs overtake banks in microlending-Telangana Today

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As of March 2023, MFIs held a 40 per cent share of the overall microfinance loans, registering a 37 per cent growth, compared to banks’ 34 per cent

Published Date – 08:18 PM, Wed – 23 August 23


India: First time in 4 years, MFIs overtake banks in microlending



Mumbai: After a gap of four years, standalone MFIs overtook banks in microlending in 2022-23 with a 40 per cent share of loans in the country, up from 35 per cent in the last year, according to an analysis.

On the back of recovery after being hit hard during the pandemic when collections and disbursals plunged, MFIs have clawed back from 32 per cent share in FY20, which declined further to 31 per cent in FY21 before improving to 35 per cent in FY22.

As of March 2023, MFIs held a 40 per cent share of the overall microfinance loans, registering a 37 per cent growth, compared to banks’ 34 per cent, down 600 bps from the previous fiscal, Care Ratings said in a note on Wednesday.

Almost all banks have an MFI book as part of meeting their priority lending targets.
Banks controlled 34 per cent of the industry’s Assets Under Management (AUM) in FY23 — down from 40 per cent in FY20 and FY22. Their share had peaked at 44 per cent in FY21.

The microfinance industry grew by 37 per cent in FY23 due to favourable macroeconomic climate and renewed demand, leading to higher disbursements.

Consequently, standalone MFIs have surpassed banks in the overall microfinancing landscape, constituting around 40 per cent of the total outstanding microfinance loans as of March 2023, compared to 34 per cent for banks, Care Ratings said Wednesday in a note.

The report, penned by Care Ratings Senior Director Sanjay Aggarwal, said the agency anticipates the growth momentum to continue in the current fiscal, though it could slow to 28 per cent.

The report, however, warned of increasing customer debts, rising average ticket size and a gradual shift from the joint liability group model to individual loans, which could pose the risk of overleveraging for the industry.

Also, given the inherent nature of the MFI asset class, these lenders are prone to event-based risks such as political, geographical uncertainties and are susceptible to natural calamities, Care Ratings said.

The removal of the lending rate cap by the Reserve Bank of India has enabled MFIs to engage in risk-based pricing, which has boosted their net interest margins (NIMs) and, in turn, increased returns on total assets.

Credit costs have also declined from their peak in FY21, but remain higher than pre-pandemic levels, with a portion of the restructured book slipping into NPAs, it said.
The agency expects NIMs to continue improving to 3.8 per cent in FY24, aided by controlled credit costs of about 2.5 per cent.

MFIs have raised around Rs 3,000 crore in equity in FY23, compared to around Rs 1,500 crore and Rs 1,430 crore in FY21 and FY22, respectively, indicating a renewed interest from investors.

Bihar, Tamil Nadu, Uttar Pradesh, Karnataka, and West Bengal remain the top five states in terms of MFIs’ AUM with Bihar leading the sector with about 15 per cent market share in the country.

Business

Shell Energy India to invest Rs 3,500 crore to set up renewable energy facility in Gujarat-Telangana Today

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Shell Energy India on Wednesday said it will invest Rs 3,500 crore in Gujarat to set up a renewable energy facility, charging stations for electric vehicles, and an LNG regasification terminal, which would create nearly 4,300 jobs.

Published Date – 10:17 PM, Wed – 23 August 23


Shell Energy India to invest Rs 3,500 crore to set up renewable energy facility in Gujarat



Ahmedabad: Shell Energy India on Wednesday said it will invest Rs 3,500 crore in Gujarat to set up a renewable energy facility, charging stations for electric vehicles, and an LNG regasification terminal, which would create nearly 4,300 jobs.

A memorandum of understanding (MoU) in this regard was signed between the Gujarat government and Shell Energy India in Gandhinagar on Wednesday in the presence of Chief Minister Bhupendra Patel, a government release said.

The agreement has been signed as part of the upcoming 10th edition of the Vibrant Gujarat Global Summit to be held in January next year, said the release. Under this MoU, Shell Energy India will invest Rs 2,200 crore to set up a renewable energy production facility on 1,200 acres in Banaskantha district of north Gujarat.

The facility will provide direct and indirect employment to more than 1,000 people, and it is expected to commence commercial production by 2026.

In addition, the energy major will invest Rs 800 crore to set up fuel retailing and EV recharge stations across the state, thereby providing employment opportunities to approximately 2,000 people. This project will be operational by 2027, said the release.

Further, Shell Energy India will invest Rs 500 crore in the LNG regasification terminal, asset integrity rejuvenation, and debottlenecking project. This project will create employment opportunities for 375 people, and is expected to commence commercial production by 2027, said the release.

Business

Rupee surges 25 paise to 82.47 against US dollar in early trade-Telangana Today

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The rupee registered the highest single-day gain in nearly two months and surged by 25 paise to 82.47 against the US dollar in early trade on Thursday

Published Date – 10:40 AM, Thu – 24 August 23


Rupee surges 25 paise to 82.47 against US dollar in early trade



Mumbai: The rupee registered the highest single-day gain in nearly two months and surged by 25 paise to 82.47 against the US dollar in early trade on Thursday amid a weakening dollar, foreign funds inflows and positive equity markets.

According to reports, the rupee’s sharp gain of 52 paise in the past two sessions was attributed to Reserve Bank of India’s move to prevent banks from indulging in short-term trading in offshore currency markets.

Forex traders said selling pressure in the greenback and retreating crude oil prices also boosted the Indian currency even as investors traded cautiously ahead of the BRICS summit and US Federal Reserve Chair Jerome Powell’s speech at Jackson Hole Symposium during August 24-26.

At the interbank foreign exchange, the domestic unit opened strong at 82.55 and touched the peak of 82.36 against the American currency. It later traded at 82.47, registering a rise of 25 paise over its previous close.

On Wednesday, the rupee had appreciated by 27 paise to close at 82.72 against the US dollar. Earlier, the domestic unit witnessed the highest single-day gain of 35 paise on June 16 this year.

“Rupee strengthened sharply in yesterday’s session on the back of some sources suggesting that the RBI has asked banks to stop taking fresh arbitrage positions in the NDF (non-deliverable forward) market. Suspected dollar selling triggered a move for the rupee. The move has come ahead of the Jackson Hole Symposium that is scheduled later this week,” said Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial services.

He said US Fed Chair Powell is expected to “maintain a hawkish tone and that could restrict losses for the greenback”.

On Wednesday, the dollar weakened after preliminary manufacturing data released from the US came in below estimates. The data showed that manufacturing PMI fell in July compared to the previous month. It was not only the US but other economies too reported a lower number.

“Today, on the economic calendar front, durable goods data will be the only data to watch for. We expect the USDINR (Spot) to trade sideways with a negative bias and quote in the range of 82.30 and 82.80,” Somaiya said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.04 per cent to 103.38.
Brent crude futures, the global oil benchmark, declined 0.34 per cent to USD 82.93 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 350.03 points or 0.53 per cent higher at 65,783.33. The broader NSE Nifty advanced 105.85 points or 0.54 per cent to 19,549.85.

Foreign Institutional Investors (FIIs) turned net buyers in equities on Wednesday as they purchased shares worth Rs 617 crore, according to exchange data.

Business

Markets rally in early trade on firm global trends, foreign fund inflows-Telangana Today

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Equity benchmark indices rallied in early trade on Thursday, extending their winning run for the fourth day running, amid positive global market trends and fresh foreign fund inflows

Published Date – 10:50 AM, Thu – 24 August 23


Markets rally in early trade on firm global trends, foreign fund inflows



Mumbai: Equity benchmark indices rallied in early trade on Thursday, extending their winning run for the fourth day running, amid positive global market trends and fresh foreign fund inflows.

The BSE Sensex climbed 333.95 points to 65,767.25 in early trade. The NSE Nifty gained 101.65 points to 19,545.65.

From the Sensex pack, Tech Mahindra, Larsen & Toubro, Power Grid, ICICI Bank, IndusInd Bank, Infosys, JSW Steel, Wipro, Titan and UltraTech Cement were among the gainers. Jio Financial Services emerged as the laggard.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the positive territory. The US markets ended with gains on Wednesday.

Foreign Institutional Investors (FIIs) turned buyers on Wednesday as they bought equities worth Rs 614.32 crore, according to exchange data.
“The near-term market outlook has turned distinctly positive with the US economy’s soft landing narrative lifting sentiments globally and Chandrayaan-3’s successful soft landing on the moon boosting sentiments in India,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

India’s Moon mission Chandrayaan-3 touched down on the lunar south pole on Wednesday, making it the first country to land on the uncharted surface.
Global oil benchmark Brent crude declined 0.31 per cent to USD 82.95 a barrel.

The BSE benchmark had climbed 213.27 points or 0.33 per cent to settle at 65,433.30 on Wednesday. The Nifty had gained 47.55 points or 0.25 per cent to end at 19,444.

Business

News organizations eligible for a portion of X’s advertising revenue: Musk-Telangana Today

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New Delhi: Tesla and SpaceX CEO Elon Musk on Thursday said that news organisations can also get a share of X’s advertising revenue.

In his latest bid to woo journalists after paying creators via his X advertising revenue programme, the X owner has now proposed a new way for media houses to make money.

“Our advertising revenue share programme also applies to organisations (news or otherwise) who wish to participate,” he posted.

On Tuesday, the billionaire invited journalists to publish directly on X (formerly Twitter) and earn a higher income, as he started stripping headlines and text from news articles shared on the platform.

On X, posts with news articles only included the lead image and the URL, stripping out the headline and text and links displayed only an article’s lead image.

“This is coming from me directly. Will greatly improve the aesthetics,” Musk informed via a post.

Earlier, he said that if you’re a journalist who wants more freedom to write and a higher income, “then publish directly on this platform!”.

A follower reacted: “Then give us better tools.”

Meanwhile, Musk has now pushed for X to develop a format for news articles where they only show a lead image and the source URL.

The image would still serve as a link to the article.

The new change may be to reduce the height of individual posts so users’ timelines display more content.