India ranks low at 76th place on global Social Mobility Index
India has been ranked very low at 76th place out of 82 countries on a new Social Mobility Index compiled by the World Economic Forum, while Denmark has topped the charts.
The report, released ahead of the 50th Annual Meeting of the WEF, also lists India among the five countries that stand to gain the most from a better social mobility score that seeks to measure parameters necessary for creating societies where every person has the same opportunity to fulfil his potential in life irrespective of socioeconomic background.
Increasing social mobility, a key driver of income inequality, by 10 per cent would benefit social cohesion and boost the world’s economies by nearly 5 per cent by 2030, the WEF said. PTI
Sensex plunges 416 pts; Kotak Bank tanks 5 pc
Retreating from its record peak, market benchmark Sensex closed 416 points lower on Monday, tracking an intense sell-off in index heavyweights Reliance Industries, Kotak Bank, HDFC Bank and TCS following their quarterly results.
After hitting a record intra-day high of 42,273.87, the 30-share BSE Sensex gave up all gains to settle 416.46 points, or 0.99%, lower at 41,528.91.
Likewise, the broader NSE Nifty sank 127.80 points, or 1.03%, to 12,224.55. It hit a record intra-day high of 12,430.50 in early session.
Kotak Mahindra Bank was the biggest laggard in the Sensex pack, dropping 4.70%, after the lender reported a rise in non-performing assets in Q3.
Reliance Industries, HDFC Bank and TCS fell up to 3.08% after the companies reported their quarterly earnings over the weekend. PTI
Housing.com enters co-living listing biz; partners OYO, Zolo
News Corp-backed real estate classifieds portal Housing.com on Monday announced its entry in co-living segment, and has tied up with OYO and Zolo as well as unorganised players for listing around 5 lakh beds on its platform.
“We are entering into co-living segment which is a big growth area. We have launched an exclusive section for co-living on our Housing.com. As of now, it will work as search and discovery platform, but direct bookings on our platform will be enabled later,” Housing.com CEO Dhruv Agarwala told reporters.
Housing.com, which is also backed by Softbank, Accel and SAIF Partners, has tied up with OYO Life and Zolo to promote their co-living spaces on its platform. PTI
CCI approves Reliance’s divestment of Jio tower assets
Fair trade regulator CCI has approved divestment of Reliance Jio’s telecom tower assets to Canada’s Brookfield Infrastructure Partners LP and other investors.
The other investors include British Columbia Investment Management Corporation, GIC Infra Holdings Pte Ltd’s subsidiaries Anahera Investment Pte Ltd and Valkyrie Investment Pte Ltd.
In a tweet on Monday, the regulator said it “approves subscription of the units of Tower Infrastructure Trust by BIF IV Jarvis India Pte., British Columbia Investment Management and GIC Investors.”
The proposed transaction involves the acquisition of indirect control of Reliance Jio Infratel Pvt Ltd (RJIPL) by Jarvis, the Competition Commission of India (CCI) noted in a combination notice filed with it.
Tower Infrastructure Trust, an InvIT, currently holds 51 per cent of the outstanding equity share capital of RJIPL. Current Sponsor of the InvIT is Reliance Industrial Investments and Holdings Ltd (RIIHL).
The deal, as per the notice, is subject to receipt of requisite approvals from markets regulator Sebi. Jarvis would execute the “deed of accession” to the trust deed and be designated as one of the sponsors to the InvIT in addition to RIIHL. PTI
Domestic air passenger traffic grows by just 3.74% in 2019: DGCA
Aviation regulator DGCA on Monday said domestic air passenger traffic grew to 14.41 crore in 2019, an increase of just 3.74% as compared to the previous year.
Commenting on the 2019 data, a senior official of the Directorate General of Civil Aviation said, “A bit disappointing. In 2019, we faced headwinds on account of Jet Airways but 2020 is going to be different and the double digit growth should be back sooner rather than later.” PTI
More stringent governance norms needed to address economic slowdown: Report
Surging inflation and slowing growth are raising serious concerns about the future growth prospects of the economy and as a remedial measure the government should resolve supply side hurdles and ensure more stringent governance norms, a report said on Monday.
According to the Dun and Bradstreet Economy forecast, even though Index of Industrial Production (IIP) turned positive in November 2019, it is likely to remain subdued.
“Slowdown in consumption and investment along with high inflationary pressures, geopolitical issues and uncertainty over the recovery of the economic growth are likely to keep IIP subdued,” the report noted.
Dun and Bradstreet expects IIP to remain around 1.5-2.0 per cent during December 2019. PTI
Greek current account deficit shrinks in November
Greece's current account deficit shrank in November compared with the same month last year on the back of an improved balance in the primary income account due to lower net payments for interest and dividends, the Bank of Greece said on Monday.
Central bank data showed the deficit was 1.392 billion euros ($1.54 billion)down from 1.446 billion euros in November 2018. Tourism revenues dropped to 314 million euros from 316 million in the same month last year.
Last year, Greece's current account showed a deficit of 5.3 billion euros, up 2.1 billion year-on-year as the trade gap widened. Reuters
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India thermal coal imports fall for three months in a row
India's thermal coal imports fell for three straight months for the first time in over two years, government data reviewed by Reuters show, as an economic slowdown stifled demand from industries such as cement and sponge iron.
Imports of thermal coal - used mainly for electricity generation - fell 10.7% to 15.62 million tonnes in October.
Still, thermal coal imports during the ten months ended Oct 30 was 12.6% higher at 163.86 million tonnes, the data compiled by the Ministry of Coal showed, despite registering a decline during the months of August, September and October. Reuters
Samsung says may invest $500 million to set up display factory in India
South Korean flat screen maker Samsung Display plans to set up a factory in India with a $500 million investment as parent Samsung Electronics Co Ltd seeks to expand smartphone production there, a regulatory filing showed.
The move would be a boon for India which is vying with nearby rivals such as Vietnam to attract global smartphone firms under the government's “Make in India” drive.
Under the plan, Samsung Electronics will provide 35 billion rupees ($492.31 million) in loans and transfer a parcel of land in Noida for 920 million rupees to its display unit, Samsung India Electronics Private Ltd said in a filing dated Jan. 3.
Samsung Electronics started making smartphones in Noida on the outskirts of the capital New Delhi in 2018. Last year, it stopped production in China where it had to contend with competition from domestic rivals.
The new display factory will help Samsung Electronics secure local supplies of one of the most expensive smartphone components at a time when the South Korean firm is also struggling to fend off competition from Chinese rivals in India. Reuters
India's December oil imports up 6.4% m/m; Saudi Arabia retains top spot
India's oil imports rose about 6.4% in December from a month earlier to 4.6 million barrels per day (bpd), with Saudi Arabia the top supplier for a second straight month followed by Iraq, according to preliminary tanker arrival data obtained from shipping and industry sources.
In 2019, India's oil imports declined by 2.1% from a year earlier to about 4.56 million bpd, the data showed, as maintenance and fuel upgrade programmes at most refineries curbed oil processing. India will roll out Euro VI compliant fuel across the country from April 1.
The Middle East accounted for about 60% of India's imports in 2019, the lowest in four years, reflecting the nation's efforts to diversify oil suppliers to hedge itself from crude market volatility and geopolitical tensions. Venezuela, which raised its oil output in November to the highest level since the United States tightened sanctions in August, emerged as the fourth biggest oil supplier to India in December, after UAE.
India shipped in 621,000 bpd oil from Venezuela in December, the most in over three years, the data showed. Reuters
TCS falls over 2% after Q3 earnings
The scrip of Tata Consultancy Services (TCS) on Monday fell over 2 per cent after the company reported a muted growth in consolidated net profit for the third quarter ended December 2019.
On the BSE, the stock declined 2.14 per cent to Rs 2,170.50. On the NSE, the scrip dropped 2.34 per cent to Rs 2,167.
The country’s largest software services major, after market hours on Friday, reported a muted 0.2 per cent growth in consolidated net profit at Rs 8,118 crore for the third quarter ended December 2019.
This is against a net profit of Rs 8,105 crore in the year-ago period, TCS said in a BSE filing.
Revenue of the firm grew 6.7 per cent in the quarter under review to Rs 39,854 crore from Rs 37,338 crore in the corresponding period of the last fiscal, it added. PTI
Middle East share of India's oil imports falls to 4-yr-low in 2019
India's imports of Middle Eastern oil plunged to a four-year low in 2019, tanker data obtained from sources shows, as the energy-hungry nation diversifies its supplies to cut costs and help shield itself from geopolitical tensions.
India, the world's third-biggest oil consumer, imports about 84% of its oil needs and traditionally relies on the Middle East for the majority of its supplies. However, the region's share of India's crude shrank to 60% last year - down from 65% a year ago and the lowest since 2015 - as record output from the United States and countries like Russia offered opportunities for importers to tap other sources.
India shipped in 2.68 million barrels per day (bpd) oil from the Middle East in 2019, down about 10% from 2018, and around 1.8 million bpd from elsewhere, the data reviewed by Reuters showed.
Deeper than expected oil output cuts by OPEC and allies, shouldered by Saudi Arabia, and less supply from Iran due to U.S. sanctions also dented India's intake of Middle Eastern oil, said Ehsan Ul Haq, analyst with Refinitiv.
Last year, sanctions and output cuts by OPEC and allies, known as OPEC+, reduced the group's supplies by 1.9 million bpd from 2018, while non-OPEC supply rose by 2 million bpd, the International Energy Agency said in its latest report. Reuters
Adani Enterprises denies wrongdoing amid allegations of coal supply contract irregularities
Adani Enterprises on Monday said that it has not done anything wrong in supply of the dry-fuel amid reports that the CBI registered a case against the company for alleged coal supply contract irregularities.
The firm was replying to the BSE in response to the clarification sought by the bourse on a media report which said that the Central Bureau of Investigation (CBI) had booked “Adani Enterprises, officers for alleged irregularities in coal supply contract“.
“In this context, please note that the subject matter is an old one. The company has complied with the process, all formalities and relevant laws for the subject supply of coal. The company has not done anything wrong in supply of coal.”
The company further said that it is a preliminary investigation report only and added that it shall respond to the same and shall also put forth the factual position to the authority.
The shares of Adani Enterprises were trading at Rs 225.35 a piece on BSE, down 1.31 per cent from the previous close. PTI
World's richest 2,000 people hold more than poorest 4.6 billion combined: Oxfam
The world's richest 2,153 people controlled more money than the poorest 4.6 billion combined in 2019, while unpaid or underpaid work by women and girls adds three times more to the global economy each year than the technology industry, Oxfam said on Monday.
The Nairobi-headquartered charity said in a report released ahead of the annual World Economic Forum of political and business leaders in Davos, Switzerland, that women around the world work 12.5 billion hours combined each day without pay or recognition.
In its “Time to Care” report, Oxfam said it estimated that unpaid care work by women added at least $10.8 trillion a year in value to the world economy - three times more than the tech industry.
“It is important for us to underscore that the hidden engine of the economy that we see is really the unpaid care work of women. And that needs to change,” Amitabh Behar, CEO of Oxfam India, told Reuters in an interview.
To highlight the level of inequality in the global economy, Behar cited the case of a woman called Buchu Devi in India who spends 16 to 17 hours a day doing work like fetching water after trekking 3km, cooking, preparing her children for school and working in a poorly paid job.
“And on the one hand you see the billionaires who are all assembling at Davos with their personal planes, personal jets, super rich lifestyles,” he said.
“This Buchu Devi is not one person. I in India encounter these women on a daily basis, and this is the story across the world. We need to change this, and certainly end this billionaire boom.”
Behar said that to remedy this, governments should make sure above all that the rich pay their taxes, which should then be used to pay for amenities such as clean water, healthcare and better quality schools.
“If you just look around the world, more than 30 countries are seeing protests. People are on the street and what are they saying? - That they are not to accept this inequality, they are not going to live with these kind of conditions,” he said. Reuters
Amazon India to include 10K electric vehicles in delivery fleet by 2025
E-commerce major Amazon India on Monday said its fleet of delivery vehicles in the country will include 10,000 EVs by 2025.
Amazon’s rival, Flipkart had in June last year said it aims to replace 40 per cent of its delivery vans with electric vehicles (EVs) by March this year. The Walmart-owned company has deployed EVs in cities like Delhi, Hyderabad and Bengaluru.
Amazon, in a statement, said it piloted electric vehicles in several cities across India in 2019 and is now expanding this initiative across the country.
It added that learnings from the pilot have helped the company create scalable and long-term EV variants to build this large fleet.
The announcement comes days after the American e-tail giant had announced investment of USD 1 billion for digitising small and medium businesses, and creation of one million jobs by 2025.
“The fleet of 10,000 EVs - including three-wheeler and four-wheeler vehicles - has been designed and manufactured by original equipment manufacturers (OEMs) in India,” Amazon noted in its statement.
In 2020, these vehicles will operate in over 20 cities of India - Delhi NCR, Bangalore, Hyderabad, Ahmedabad, Pune, Nagpur and Coimbatore, among others.
These EVs are in addition to the global commitment of one lakh EVs in the delivery fleet by 2030 announced in the Climate Pledge signed by Amazon. PTI
Indian shares slip from peaks; refiners, IT weigh
Indian shares backed down from record highs hit in early trade on Monday, as earnings from top valued companies failed to impress investors, and refiner Indian Oil Corp Ltd slumped to a 15-month low.
The NSE Nifty 50 index fell 0.39% to 12,304.5 by 0503 GMT, while the benchmark S&P BSE Sensex was down 0.35% at 41,799.97. The Nifty and Sensex had touched fresh peaks at 12430.5 and 42,273.87, respectively, in early trade.
Sentiment also dented by a surge in oil prices after two large crude production bases in Libya began shutting down amid a military blockade. India, the world's third-biggest oil consumer, imports about 80% of its oil needs, making it highly susceptible to crude price swings.
“Investors are liable to take profits when markets are trading at record highs,” said AK Prabhakar, head of research at IDBI Capital in Mumbai, adding that focus will now shift to mid-cap companies trading at attractive valuations. Reliance Industries Ltd, India's largest company by market value, reversed an early 1.8% gain to fall as much as 1.9%. The conglomerate reported another record quarterly profit on Friday despite weakness in its refining business, but did not give a timeframe for closing its deal with Saudi Aramco .
HDFC Bank Ltd fell 1.6% after an early 2.1% gain and was the biggest drag on the Nifty. HDFC, India's largest bank by market value, posted a 33% jump in quarterly profit on Saturday but reported a tick up in bad loans for the quarter.
Top IT firm Tata Consultancy Services Ltd slipped 2.1% after a muted performance in the third quarter.
Indian Oil Corp fell 7.3% to its lowest since Oct. 2018 and was the biggest loser on the Nifty.
Power Grid Corp of India was the top gainer on the indexes, rising as much as 6.9% to its highest in nearly five months. Reuters
Sensex, Nifty pare opening gains
After opening at all-time record highs, up by almost 0.8%, both indices are trading negative for the day.
At the start of the day, the Sensex gained 300 points to hit a fresh lifetime high of 42,273.87. Nifty scaled an all-time high of 12,430.50 before dropping.
Rupee slips 4 paise to 71.12 against US dollar amid rising crude prices
The rupee opened on a weak note and declined 4 paise to 71.12 against the US dollar in opening trade on Monday, as concerns over rising crude oil price weighed on the investor community.
Forex traders said the weakness in the rupee was largely due to spurt in crude oil prices following rising tensions in the Middle East and North Africa.
The rupee opened weak at 71.07 at the interbank forex market and fell further to 71.12, down 4 paise over its last close.
The rupee had settled at 71.08 against the US dollar on Friday.
Meanwhile, foreign fund inflows and positive opening in domestic equities supported the local currency.
Foreign institutional investors remained net buyers in the capital markets, putting in Rs 264.26 crore on Friday, as per provisional data.
Brent crude futures, the global oil benchmark, rose 1.14 per cent to USD 65.59 per barrel. PTI
Oil jumps to highest in more than a week after Libyan shutdowns
Oil prices rose to their highest in more than week on Monday after two large crude production bases in Libya began shutting down amid a military blockade, setting the stage for crude flows from the OPEC member to be cut to a trickle.
Brent crude futures were up by 74 cents, or 1.1%, to $65.59 by 0331 GMT, having earlier reached $66.00 a barrel, the highest since Jan. 9. The West Texas Intermediate contract was up by 58 cents, or 1%, at $59.12 a barrel, after rising to $59.73, the highest since Jan. 10.
In the latest development in a long-running conflict in Libya, where two rival factions have claimed the right to rule the country for more than five years, the National Oil Corporation (NOC) on Sunday said two big oilfields in the southwest had begun shutting down after forces loyal to the Libyan National Army closed a pipeline.
Oil prices had fallen back in the last two weeks. After the outbreak of hostilities between the United States and Iran at the beginning of the year triggered a jump, both sides took steps to pull back from conflict, calming the market's mood. Reuters
