Wednesday, November 27
India will struggle to raise even half the proceeds it had targeted from planned sales of state-run firms this year and will miss divestment targets for the fifth straight year, sources said, as elections shift government priorities. The government may fall short of its divestment goal by 300 billion rupees ($3.60 billion) in 2023/24, two government sources told Reuters. New Delhi had targeted 510 billion rupees from divestment proceeds for the current fiscal year that ends March, 2024.
US tech giant Google said it is committed to check the menace of malicious AI and deepfake content, and will work with the government on the matter. Google has been investing in tools like watermarking and synthetic audio detection to help people safely identify content online. It is understood that over the coming months, YouTube will introduce updates that will inform viewers when the content they’re seeing is synthetic. It will require creators to disclose when they've created altered or synthetic content that is realistic, including using AI tools.
Indian pure-play engineering R&D (ERD) players have outshone their IT peers in digital engineering and embedded capabilities due to strong demand tailwinds. The global ERD sector grew 11.5% to $73 billion in 2022. Large deals in the space have increased for Indian ERD firms, with themes including industry 4.0 and connected, autonomous, shared, electric (CASE). Rainmakers play a crucial role in winning these deals by proactively upselling services to existing customers. Examples include KPIT Technologies' $250 million deal with Honda and $100 million deal with Renault, and L&T Technology Services' $100 million deal with Jaunt Air Mobility. SLAs focus on cost savings and specialized talent availability.
Sri Lanka's central bank lowered interest rates on Friday in an unexpected move to boost growth, while projecting inflation would remain subdued over the medium term. The Central Bank of Sri Lanka (CBSL) lowered key rates by 100 basis points (bps), reducing the standing deposit facility rate and the standing lending facility rate to 9% and 10%, respectively, and taking total rate cuts to 650 bps since the current easing cycle began in June. CBSL had raised rates by a record 10.50 percentage points to bring down sky-high inflation between April 2022 and March this year.
Life Insurance Corporation of India (LIC), the nation's largest insurer, experienced a significant jump in shares due to expectations of double-digit growth in new business premiums. LIC's chairman, Siddhartha Mohanty, expressed optimism about higher growth based on recent trends in individual retail business. LIC's shares surged by 10.4%, the highest in eight months, and trade volume also increased. This positive outlook reflects the potential for insurers as the Indian economy outpaces other major peers.
Changpeng Zhao, also known as CZ, pleaded guilty to a felony related to his failure to prevent money laundering on the Binance platform and resigned as CEO. This development follows the conviction of FTX founder Sam Bankman-Fried for defrauding customers. Bankman-Fried is currently in prison and has adapted to using mackerel as currency. He shares a dormitory with other notable inmates and trades mackerel pouches for services. Bankman-Fried initially struggled with the jail's lack of vegan options.
The Asian Development Bank (ADB) has approved a $170 million loan for the modernization of water supply services in Kochi, Kerala. This project aims to improve urban living standards, ensure clean water access, and enhance climate resilience. Kochi has experienced rapid urbanization, resulting in intermittent water supply. The loan will help rehabilitate and upgrade existing water treatment plants, construct a new plant, replace pipes, introduce a real-time monitoring system, and upgrade water meters.
Altman, who helped start OpenAI as a nonprofit research lab back in 2015, was removed as CEO Friday in a sudden and mostly unexplained exit that stunned the industry. And while his chief executive title was swiftly reinstated just days later, a lot of questions are still up in the air. "The OpenAI episode shows how fragile the AI ecosystem is right now, including addressing AI's risks," said Johann Laux, an expert at the Oxford Internet Institute focusing on human oversight of artificial intelligence.
India's stock market is expected to reach new highs in the next six months, driven by the sustained growth of the country's economy. The market is forecasted to rise over 10% by the end of 2024. Additionally, value stocks are expected to outperform growth stocks in the coming months. Despite being expensive compared to other major indices, analysts predict that Indian stocks will hit record highs. India's economy is the fastest-growing among major economies.
