Friday, November 29
Finance Minister Nirmala Sitharaman has highlighted terrorism as a concern that businesses should consider when making investment decisions, noting that supply chains are being disrupted due to ongoing wars. She emphasized that investors and businesses must factor in the impact of global terror on their decision-making. Sitharaman also discussed the challenges of energy transition for climate change and the need for climate finance for developing and poor countries. Additionally, she mentioned the government's focus on reducing debt and responsible spending.
The 8th World Investment Forum, organized by UNCTAD, concluded in Abu Dhabi with a call for public and private investors to play a key role in reshaping the world economy. The forum highlighted the opportunities presented by the energy transition, transformation of the agrifood and health sectors, and sustainable development. It also addressed the downturn in foreign direct investment and the need for funding solutions for countries facing debt distress. The next World Investment Forum will take place in 2025.
After laptops, PCs and tablets were put on the 'restricted list' necessitating licensing or approval for imports, the government on Thursday unveiled a new regime to permit shipments of these items in a "matter of minutes" through an online mechanism, as it sought to push global giants to manufacture in India. Though there is no move to restrict imports from any country, the decision is expected to impact Chinese imports the most as nearly 60% of the products come from the neighbouring country.
War in the Middle East has the potential to cause oil prices to surge to $140 a barrel, leading to a global recession, warns Ana Boata, head of economic research at Allianz Trade. She predicts a 20% chance of hostilities between Israel and Hamas escalating into a broader regional conflict that disrupts crude supplies. Such a scenario would result in higher oil prices, slower global growth. Global growth as a whole would slow to 2% — close to the threshold that signals contraction.
Reserve Bank Governor Shaktikanta Das emphasized the need for an actively disinflationary monetary policy to ensure a smooth decline in inflation. He stated that price stability and financial stability go hand in hand and that the RBI is focused on managing both effectively. Retail inflation fell to a three-month low of 5.02% in September, within the RBI's comfort level. Das also highlighted the challenges of global inflation, slowing growth, and risks to financial stability. He expressed confidence in India's ability to maintain minimum capital requirements.
Union Pacific reported a 19% decline in third-quarter profit due to lower shipments and high costs. However, the average speed of its trains improved by 5% under the leadership of new CEO Jim Vena. The company earned $1.53 billion. Although the number of shipments decreased by 3%, costs improved by 4%. Union Pacific's revenue also fell by 10% to $5.9 billion. Vena aims to push decision making to lower levels and eliminate bureaucracy to improve efficiency.
The illegal sports betting market in India is estimated to receive an inflow of Rs 8,20,000 crore ($100 billion) per year, resulting in a loss of about Rs 2 lakh crore to tax authorities. Factors such as digital infrastructure growth, smartphone usage, and the expansion of athletic events have contributed to this growth. The report suggests strict implementation of the new GST regime and establishing a task force to monitor illegal offshore betting activities to restrict such activities.
Indian shares fell on Thursday, driven by global stock selloffs due to tensions in the Middle East. However, gains in key Nifty 50 constituents limited the losses. The NSE Nifty 50 index settled 0.24% lower, while the S&P BSE Sensex fell 0.38%. Metals and high-weightage banks were among the top losers, while the auto and consumer indices saw gains. Rising US Treasury yields and foreign portfolio investor (FPI) selling were also concerns. Wipro and Ultratech Cement were among the top losers and gainers, respectively.
UltraTech Cement Ltd has reported a 68.75% increase in net profit for the second quarter, reaching Rs 1,280.38 crore. The company attributes the growth to positive cement demand from various sectors, including government-led infrastructure projects and urban residential demand. Consolidated revenue from operations also rose to Rs 16,012.13 crore, compared to Rs 13,892.69 crore in the same period last year.
