President hails India’s growth story in first address to nation
A new India is rising as the economy is growing at a faster clip, ensuring welfare of all sections of society, President Droupadi Murmu said in her first address to the nation on the eve of the 76th Independence Day. India has set an example before the world in the way it fought the pandemic and developed the vaccine, she asserted. Despite challenges, the Indian economy has grown, and the government has ensured inclusive growth in the country, Murmu said.
Why it’s important: India is among the fastest growing major economies in the world. As the country celebrates 75 years of Independence, there are many reasons for hope and optimism despite challenges.
Billionaire investor Rakesh Jhunjhunwala dies of cardiac arrest at 62
Rakesh Radheshyam Jhunjhunwala, the billionaire investor known for his bullish stance in the midst of market volatility as well as the witticisms that characterized his public utterances, died of cardiac arrest in Mumbai. Jhunjhunwala, 62, is survived by his wife, Rekha, and three children.
Why it’s important: Jhunjhunwala was known for his skills in picking stocks and holding on to winners for decades. He also betted on startups and private companies, including Akasa, India’s newest airline that has just started operations. His death comes at an inopportune time.
Higher costs pressures take shine off corporate India profits
High raw material prices hurt the profitability of Indian firms in the first quarter ended June, although passing on part of the increased costs to consumers boosted revenue growth. The aggregate revenue of a sample of 2,638 listed companies, excluding banking and finance firms, rose by 41.5 percent on an annualized basis in the three months to June period, a four-quarter high. However, growth in net profit came in at a four-quarter low of 15.1 percent.
Why it’s important: The overall corporate performance could improve in the second half of the financial year as commodity prices soften and consumption rises.
Telecom department starts process to auction more 5G spectrum
The department of telecommunications has begun an exercise to sell an additional 5,500 MHz of 5G spectrum expected to be worth over Rs 35,000 crore. The development comes close on the heels of the government netting a record Rs 1. 5 lakh crore from the recently concluded auctions.
Why it’s important: The department is likely to propose a mixed use for the spectrum known as millimeter wave that is expected to be useful in offering 5G fixed wireless access services.
Personal income tax drives 40 percent rise in direct tax collections
The central government has achieved over a third of the direct tax collection target for this financial year in the four months to July, with personal income tax collection exceeding corporation tax collections. Overall direct tax collections, net of refunds, grew by 40 percent to Rs 5 lakh crore, or about 35 percent of the full year’s target of Rs 14.2 lakh crore.
Why it’s important: Robust direct tax collection would provide the government with additional elbow room to increase state spending in the midst of global uncertainty and tighter monetary policy regime, which could drag down private investment and growth outlook.
National Stock Exchange makes move to scrutinize compliance on insider trading
There is a move to scrutinize whether large and actively traded companies are complying the guidelines and rules to curb insider trading. About a week ago, the National Stock Exchange shared a compliance certificate format with many firms that have to give specific declaration on whether they have control over who can access unpublished price sensitive information, if information shared are time-stamped to keep a track on who is receiving it and when, and whether there is chance of anyone tampering with the records
Why it’s important: Insider trading, one of the scourges of the Indian stock market, is said to be widespread, hurting investor interests. Tighter compliance oversight at the country’s largest bourse could help contain the malaise.
New age platforms in India start focusing on profitable growth
The top management of tech platforms such as Nykaa, Zomato and Paytm is looking at improved margins and profit growth, according to a look at the first quarter results of these companies. Food delivery firm Zomato has brought down its losses by a huge margin. Beauty platform Nykaa continued to grow revenue though margins remained under pressure.
Why it’s important: India’s new-age tech platforms are realizing the importance of focusing on growth with sustainable profits. They are rationalizing costs by optimizing personnel and reducing cash burn, even as a funding winter sets in.
Consumer goods companies bet big on increased festive season demand
Chief executives of consumer goods makers are optimistic about substantially larger sales during the festive season as multiple indicators are showing a revival in demand. Higher inventory by wholesalers and dealers, faster movement of FMCG products from distributers to retailers, and reduced trade credit perios point to increased consumer demand.
Why it’s important: Consumer demand has been muted in recent months as households turned cautious in the face of high inflation, which is showing first signs of softening. Robust sales during the festive season could reverse the slower growth in sales volumes.
Telecom tower firms to invest Rs 2 lakh crore to set up 5G infrastructure
Mobile tower companies are getting ready to invest over Rs 2 lakh crore trillion by 2025 to meet the target of telecom operators target to introduce 5G services to 50 percent of the country, according to numbers provided by the Digital Infrastructure Providers’ Association, the apex body of the tower companies.
Why it’s important: The focus till now has been on wireless operators spending Rs2-3 lakh crore to acquire 5G spectrum. Equally important is the similar investment required at tower firms to ready the 5G infrastructure.
Government to further rework insolvency code to facilitate recoveries
The central government is planning to further rework reforms planned in the Insolvency and Bankruptcy Code to accelerate the pace of salvaging sinking businesses and open up the distressed assets market in India to overseas creditors to recover their dues. A new draft legislation could be tabled in Parliament in the winter session.
Why it’s important: Launching a cross-border insolvency regime would be a milestone in bankruptcy reform because that would speed up rescues of businesses that own assets and liabilities in multiple jurisdictions.
Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
