The World Opinion

Category: Economy

  • FPIs Go Bullish Again On Buying Equities In Indian Market | Economy News

    New Delhi: Foreign portfolio investors (FPIs) bought equities in the Indian stock market worth Rs 16,800 crore this week, taking the total buying to Rs 27,856 crore this month (till September 13). 

    As per NSDL data, FPIs were buyers of equity in the cash market on all days of the week. Industry watchers said that it is significant to note that unlike in previous weeks when FIIs were buyers through the primary market, this week, they were buyers through the exchanges.

    There are two reasons why FPIs have changed their strategy from selling to buying. There is a consensus now that the Fed will start cutting rates from this month onwards pushing the US yields down, facilitating fund flows from the US to emerging markets.

    Also, the Indian market is extremely resilient with strong momentum and missing out on the Indian market would be a bad strategy for FPIs. In 2024, the total investments by FPIs now stand at Rs 70,737 crore to date.

    According to Manoj Purohit, Partner and leader, FS Tax, Tax and Regulatory Services, BDO India, the month of September came with a full swing from the FPI fraternity which made a substantial infusion in the Indian equity market, recording the second highest single-day purchase of 2024.

    “This shift in the investment wave is largely attributable to the Indian equity market reaching new all-time highs. The robust inflows are due to underlying factors such as global confidence in India’s economic outlook and the government’s commitment to drive a long term growth story,” Purohit mentioned.

    FPIs are encashing at the right time to tab the Indian market amidst positive market sentiments, political stability, contributing to the rally. This incursion not only mirrors the growing attractiveness of Indian equities but also emphasises the confidence foreign participants have shown in India’s financial markets historically as well during geopolitical crises and other macro factors.

    Also, due to the market regulator’s timely actions on easing business norms, rolling out consultation papers on industry issues, being agile to accept and inculcate global best practices to make India a competitive and one of the most preferred destination for imbedding funds to get better returns as compared to other developing economies, said experts.

  • 24 Indian startups Raise Over $229 Million In Funding This Week | Economy News

    New Delhi: At least 24 domestic startups secured more than $229 million in funding this week, which included six growth-stage deals worth $182.65 million. The week saw 13 early-stage deals worth $46.14 million. Overall, Bengaluru-based startups led with eight deals, followed by Delhi-NCR, Mumbai, Hyderabad and Kolkata, as per industry data.

    The funding momentum was led by mobile advertising network software InMobi which raised $100 million in a debt funding round, followed by MSME-focused fintech lender FlexiLoans which secured $35 million. While employee healthcare platform Onsurity secured $21 million, spiritual tech startup AppsForBharat raised $18 million.

    Among other fundings, consumer lending platform Moneyview received $4.65 million and HRtech platform HROne $4 million this week. The average funding in the last eight weeks stood at over $331 million with 26 deals per week. E-commerce startups led the funding with 5 deals, followed by fintech, healthtech and Cleantech startups.

    Among mergers and acquisitions, Nazara Technologies took a controlling stake in Moonshine Technology, the parent company of PokerBaazi, for Rs 982 crore. The gaming and sports media company acquired 47.7 per cent stake in Moonshine for Rs 832 crore through a secondary transaction and announced to infuse Rs 150 crore in primary capital via compulsory convertible preference shares.

    E-commerce enabler GoKwik acquired Return Prime, a global returns management app. Meanwhile, global venture capital firm Accel announced a pre-seed scaling programme where selected startups will receive up to $1 million in funding through equity or convertible note, and access perks worth more than $5 million from Accel’s network partners.

    Last week, the Indian startups secured $348 million across 19 deals. The week was led by ride-sharing platform Rapido which raised $200 million in its Series E funding.

  • India Implementing World’s Largest Food-Based Safety Net Programmes: Minister | Economy News

    New Delhi: The country is implementing the world’s largest food-based safety net programmes to ensure food security and nutrition, Ram Nath Thakur, Union Minister of State for Agriculture and Farmers’ Welfare, has said.  Addressing the G20 Agriculture Ministerial Meeting held in Brazil from September 12-14, the minister said that under the leadership of Prime Minister Narendra Modi, India prioritises agricultural development.

    “Our approach not only focuses on productivity but also ensures economic, social, environmental sustainability, enhancing farmer prosperity and embodying a comprehensive vision for development. He further mentioned that India is implementing the world’s largest food-based safety net programs to ensure food security and nutrition,” Thakur said.

    The meeting focused around four key priority areas for global agriculture: sustainability of agriculture and food systems in their multiple paths, enhancing international trade’s contribution to food security and nutrition, elevating the essential role of family farmers, smallholders, indigenous peoples and local communities in sustainable, resilient and inclusive agriculture and food systems and promoting the integration of sustainable fisheries and aquaculture into local and global value chains.

    The minister emphasised India’s commitment to developing resilient agricultural systems for a sustainable and prosperous future, highlighting its significance in empowering small and marginal fishers in India and other nations as well as enabling them to participate effectively in global trade discussions.

    Thakur also held bilateral meetings aimed at strengthening India’s agricultural relations with other countries. He reiterated India’s readiness to collaborate, learn and contribute to the collective global efforts required to address the pressing challenges facing global food systems.

    Thakur also congratulated Brazil on a successful G20 Presidency, and extended wishes to South Africa for its upcoming Presidency. Meanwhile, the area sown under kharif crop in the country has gone up to 1,065 lakh hectares so far this year compared to 1,044.85 lakh hectares in the same period last year on the back of better monsoon rains. The increase of 20.15 lakh hectares in sown area is expected to lead to higher production and incomes for farmers and help to keep food inflation in check.

  • August 2024: Car Sales Drop 1.8% In India, Two-Wheelers Register 9.3% Growth | Auto News

    Auto Sales In India: Total passenger vehicle sales in India declined 1.8 per cent in August to 352,921 units, as against 359,228 units same month last year, data released by the Society of Indian Automobile Manufacturers (SIAM) showed on Friday. 

    Though the industry did not attribute any reason for the decline in passenger vehicle sales, it is assumed that it was primarily due to excessive rainfall this monsoon season coupled with customers postponing their purchases for the festival season. 

    Many automakers have come up with lucrative festive season offers to push demand for car sales. 

    But, on the positive side, sales of three-wheelers and two-wheelers were strong in August. Three-wheeler and two-wheeler sales rose 7.7 per cent and 9.3 per cent to 69,962 units and 1,711,662 units, respectively, data from SIAM showed. 

    “Looking ahead, as the country enters the festive season, demand for Vehicles is expected to grow, which will also be duly augmented by the recent announcements of PM E-DRIVE and PM-eBus Sewa Schemes of Government of India,” said Rajesh Menon, Director General, SIAM.

    On Wednesday, the Union Cabinet approved the PM E-Drive scheme for the promotion of electric mobility in the country. The scheme has an outlay of Rs 10,900 crore over a period of two years.

    Subsidies or demand incentives worth Rs 3,679 crore would be provided to incentivise e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The scheme will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses. 

    The Ministry of Heavy Industries is also introducing e-vouchers for EV buyers to avail of demand incentives under the scheme.

    On the same day, the Union Cabinet also approved a scheme for the procurement and operation of e-buses by Public Transport Authorities (PTAs) with an outlay of Rs 3,435.33 crore.

    The scheme called “PM-eBus Sewa-Payment Security Mechanism (PSM)” will support the deployment of more than 38,000 electric buses (e-Buses) from 2024-25 to 2028-29. 

    At present, the majority of buses operated by Public Transport Authorities (PTAs) run on diesel/CNG, causing adverse environmental impacts.

  • Govt To Drive Economic Growth Via Robust Partnerships With States: Piyush Goyal | Economy News

    New Delhi: Union Commerce and Industry Minister Piyush Goyal on Friday reaffirmed the government’s commitment to drive economic growth through robust partnerships with state governments. Chairing the third meeting of the reconstituted Board of Trade here, the minister emphasised that government initiatives are instrumental in guiding India towards a more transparent, efficient, and sustainable trade environment, benefiting the country’s broader economic landscape.

    He also launched the Department of Commerce’s Jan Sunwai Portal, designed to streamline communication between stakeholders and authorities, providing a direct and transparent channel for addressing trade and industry-related issues. The portal offers on-demand video conferencing services, in addition to fixed video conference links for regular, scheduled interactions.

    According to the ministry, the portal’s accessibility extends across various offices and autonomous bodies under the Department of Commerce, such as the DGFT, Coffee Board, Tea Board, Spices Board, Rubber Board, APEDA, MPEDA, ITPO and EIC.

    The minister also held discussions centred around critical initiatives aimed at fostering employment across states and enhancing the role of the Department of Commerce in promoting state-level economic growth.

    The session also featured interactive presentations from the state governments of Uttar Pradesh, Karnataka, Tamil Nadu, Telangana and Madhya Pradesh, showcasing their achievements in export promotion and ease of doing business, interventions, and ongoing state-level initiatives. Ministers from 10 state governments attended the session.

    The minister Goyal also inaugurated ECGC’s new online service portal, alongside a revamped in-house SMILE-ERP system. These innovations mark a significant leap towards paperless processing and faceless service delivery, benefiting both exporters and bank, said the ministry.

    “ECGC’s embrace of digital solutions underscores its unwavering commitment to innovation, operational excellence, and customer satisfaction, ensuring world-class services for Indian exporters,” the ministry noted.

  • Letting A Minor Drive Could Land You 3 Years In Jail – Check 10 Traffic Rules & Fines | Auto News

    Traffic Rules & Penalties: To ensure smooth traffic management, traffic rules have been established, and legal action is taken in case of violations. Penalties, including fines and imprisonment, are imposed for breaking these rules. Here are 10 traffic rules and the corresponding fines for violations.

    1. Driving/Riding Without A Licence: A fine of Rs 5,000 will be imposed on anyone caught driving/riding a motor vehicle without a valid licence.

    2. Drink & Drive: For the first offense, the fine is Rs 10,000, and for the second offense, the fine increases to Rs 15,000.

    3. Overspeeding: Light Motor Vehicles (LMV) incur a fine ranging from Rs 1,000 to Rs 2,000, with the possibility of a licence seizure.

    4. Driving/Riding Without Insurance: The first offense of driving or riding without insurance results in a Rs 2,000 fine and the second offense increases the fine to Rs 4,000.

    5. Driving Without A Seat Belt: Drivers of four-wheelers who fail to wear a seat belt are subject to a Rs 1,000 fine.

    6. Driving/Riding Despite Disqualification: A fine of Rs 10,000 is imposed on individuals who drive or ride despite being disqualified.

    7. Not Giving Way To Emergency Vehicles: Failure to give way to emergency vehicles like ambulances and fire engines results in a Rs 10,000 fine.

    8. Riding Without A Helmet (Rider & Pillion Rider): Riding without a helmet, whether as a rider or pillion rider, incurs a fine of Rs 1,000.

    9. Juvenile Offenses: Juvenile offenses involving vehicles result in a Rs 25,000 fine and 3 years in prison (vehicle owner/parents/guardians of the minor).

    10. Vehicles Without A Permit: Operating a vehicle without a permit results in a fine of Rs 10,000, along with community service.

  • Hindenburg Alleges Swiss Authorities Have Frozen Adani Funds, Company Responds | Companies News

    Ahmedabad: The Adani Group on Thursday unequivocally rejected and denied baseless allegations regarding claims by US short-seller Hindenburg Research that Swiss authorities have frozen its funds.

     Dismissing the latest allegations, an Adani Group spokesperson denied the baseless claims.

    “We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority,” said the company spokesperson.

    “Furthermore, even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws,” the spokesperson added.

    The spokesperson further said that these allegations are “clearly preposterous, irrational, and absurd”.

    “We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group’s reputation and market value,” said the spokesperson.

    The Adani Group remains “steadfastly committed to transparency and compliance with all legal and regulatory requirements”, the spokesperson noted.

    Last month, industry experts had slammed earlier Hindenburg allegations as not merely frivolous but cheap antics, saying the US short-seller has nothing substantial to talk about even 18 months later.

  • ‘Rate Cuts Expected As Retail Inflation Remains Below RBI Forecast’ | Personal Finance News

    New Delhi: With the inflation in the second quarter of FY25 likely to remain below the Reserve Bank of India’s (RBI) forecast of 4.4 per cent, amid the cooling of food prices, the central bank may consider rate cuts in the forthcoming Monetary Policy Committee (MPC) meetings, industry analysts said on Thursday.  

    The year-on-year inflation rate (3.65 per cent), based on the All India Consumer Price Index (CPI), for the month of August was the second lowest in the last five years. Dr Vijay Kalantri, Chairman of MVIRDC World Trade Center in Mumbai, said that it has now been one year since CPI inflation stayed below the upper threshold of 6 per cent.

    “Food inflation, which had been the primary driver, remained under 6 per cent for the second consecutive month, after exceeding that level for 12 straight months since July 2023,” he said. Conversely, core inflation, driven by a revival in rural consumption, has risen for the third consecutive month to 3.41 per cent.

    “Given the current inflation trends, it is likely that inflation for the second quarter will remain below the RBI’s expectation of 4.4 per cent,” Kalantri said. India’s industrial output growth increased to 4.8 per cent in July, following an upwardly revised growth of 4.7 per cent in the previous month.

    The moderation in the growth of the electricity and mining sectors was balanced by an acceleration in the manufacturing sector. According to Rajani Sinha, Chief Economist, CareEdge Ratings, an improvement in kharif sowing amid a good monsoon bodes well for the private consumption demand. “Overall, a sustained and meaningful improvement in consumption and private capex remains critical for the performance of industrial activity,” she said.

    Sanjeev Agrawal, President, PHDCCI, said that going ahead, it is expected that rising kharif production boosted by an above-normal southwest monsoon will contribute to further softening CPI inflation, with further improvement in food supplies. The consistent growth of IIP, supported by growth in manufacturing, capital goods and intermediate goods indicates steady momentum in India’s manufacturing sector, Agrawal added.

  • Petrol, Diesel Prices May Become Cheaper? Petroleum Secretary Hints At Good News, But There’s A Catch | Economy News

    New Delhi: Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas has hinted that the prices of petrol and diesel may be reduced if the price of crude oil remains persistently low across the world for a little longer. Oil companies may consider reducing the rates of petrol and diesel if the crude oil remains low for an extended period, hinted Jain.

    The Petroleum Secretary also said that government is mulling removal of windfall tax, stating that India’s oil ministry is in talks with the finance ministry regarding the same.

    Global oil benchmark Brent crude futures settled at their lowest level since December 2021 on Tuesday, after OPEC+ revised down its demand forecast for this year and 2025, offsetting supply concerns from Tropical Storm Francine, reported Reuters.

    Brent crude futures settled down $2.65, or 3.69%, at $69.19 a barrel. U.S. West Texas Intermediate (WTI) crude settled down $2.96, or 4.31%, to $65.75 a barrel.

    Both benchmarks dropped by more than $3 during the session, after each rose by about 1% on Monday. WTI crude futures fell more than 5% on Tuesday, hitting their lowest levels since May 2023.

    On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) in a monthly report said world oil demand would rise by 2.03 million barrels per day (bpd) in 2024, down from last month’s forecast for growth of 2.11 million bpd.

    Until last month, OPEC had kept the forecast unchanged since it was first made in July 2023.

    OPEC also cut its 2025 global demand growth estimate to 1.74 million bpd from 1.78 million bpd. Prices slid on the weakening global demand prospects and expectations of oil oversupply.

    With Reuters Inputs

  • Semicon India 2024: Entrepreneurs Hail First-Of-Its Kind Initiative, Call For More Such Events | Economy News

    New Delhi: As the three-day Semicon India 2024 event kicked off in Greater Noida on Wednesday, entrepreneurs and traders were a happy lot as they got to showcase their products and also a chance to connect with respective global business partners.  Many traders at the exhibition welcomed the first-of-its-kind initiative by Prime Minister Narendra Modi-led government and called for making it a regular event, yearly. 

    Some entrepreneurs said that the Semicon India event helped develop a direct bridge with hi-tech global counterparts as well as the consumers, while others saw this as a big stepping stone in Make in India initiative. Earlier on Wednesday, PM Modi after inaugurating the Semicon event, said that it was the right time to be in India as the government was offering stable policies and ease of doing business on investments.

    Speaking at the inauguration, PM Modi said: “I can say that this is the right time to be in India. You are at the right place at the right time. In India of the 21st century, the chips are never down. Today’s India makes the world believe that when the chips are down, you can bet on India.”

    A couple of traders spoke to IANS explaining the importance of the Semicon event and what it would mean for their businesses. SCT Solutions’ Nilesh Dhanraj said that the event was one of its kind in the country and companies from across the world are participating in it.

    “This facilitates direct link between producers and consumers. We urge the government to organise more such events in the future,” he added. Gentec’s Chinmaya Panchal said that such events should be organised not just once a year but also half-yearly or quarterly as such exhibitions help develop synergy between various stakeholders.

    Win Chen of AGM group said that he was very happy to attend the SEMICON show. “It was very impressive, many noted companies participated in the show,” he said. Jayesh Panchang, a representative of Taiwan-based company AGM said that after PM Modi inaugurated the event, the semiconductor industry should grow at a fast pace. “We would be happy to be part of this journey,” he added.

    Stonhard India, which looks after clean rooms and conductive flooring of the semiconductor industry, said that it supports PM Modi’s vision. “This will give strength to the Made in India mission. Many global companies are taking part in it. Many stakeholders are coming under one roof and this will facilitate fast-paced growth,” said Stonhard India representative.

    Arun Kumar Singh said that his company has been given a target of installing 25 crore Smart meters. “This will plug leakages in electricity distribution and will bring an end to power theft,” he said. Notably, the Semicon India 2024 is being organised from September 11 to 13 with the theme ‘Shaping the Semiconductor Future’. The three-day conference will showcase India’s semiconductor strategy and policy which envisions making India a global hub for semiconductors.