RK Asociates |

Neelachal Ispat Nigam, partly owned by Odisha govt, to be privatised

25 Jan, 2021, 10:52PM | Business Standards

The government has invited bids to privatise Neelachal Ispat Nigam Ltd. (NINL), seeking to divest 93.7 per cent stake held by four central public sector enterprises and two Odisha government-owned companies. The Cabinet Committee on Economic Affairs had in January 2020 given in-principle approval for strategic disinvestment of equity shareholding of MMTC, NMDC, MECON, Bharat Heavy Electricals, Industrial Promotion and Investment Corporation of Odisha (IPICOL) and Odisha Mining Corporation (OMC) in Neelachal Ispat Nigam to a strategic buyer. MMTC owns 49.78 per cent, and NMDC owns 10.10 per cent in NINL, while MECON and BHEL hold 0.68 per cent each. IPICOL and OMC own 12 per cent and 20.47 per cent, respectively. The remaining stake is held by government-owned banks and insurance companies. The divestment receipts would go to state-owned companies, and not to the government. Interested bidders can submit their expression of interest by March 29. NINL was incorporated in 1982 to set-up an integrated steel plant to undertake manufacturing and sale of steel products. NINL has a 1.1 million tonne per annum steel manufacturing unit which produces pig iron and billets. The company reported net sales of 801 crore in Arpil-Dec 2019, and a loss of 826 crore. The interested bidders should have a minimum net worth of Rs 2,000 crore. Any entity permitted to invest in India can submit an EOI either independently or as a consortium member. Government-owned companies are not eligible to participate in the transaction. Employees can participate in the bidding process through a consortium considering the net worth criteria is met. Through the strategic disinvestment, management and control of NINL will be transferred to a new buyer that will include purchase of shares and infusion of funds into NINL that will be used to repay existing debt of the company. Debt repayment will be detailed in the Request For Proposal stage. Once shortlisted based on criteria, the bidders would be quote on an enterprise value of NINL. The amount payable by successful bidder would be used for settlement of labour dues, operational creditors, commercial lender debt, promoter debt and purchase of 93.71% of shareholding of NINL through a predetermined waterfall mechanism.

Here are all the Super Bowl ads that have been released so far

25 Jan, 2021, 10:35PM | CNBC

Still from Michelob Ultra's 2021 Super Bowl commercial.Michelob Ultra This year's Super Bowl will be an extravaganza of first-time Super Bowl advertisers.Super Bowl mainstay ads for such products as Pepsi, Coke and Budweiser aren't being bought for this year's game, though Pepsi is still sponsoring the halftime show. They're being replaced by ads from companies that had a strong year while people were home during the pandemic.Though the game is about two weeks away, some companies have already started releasing their commercials for the biggest TV event of the year. It's an even bigger event this year, since so many 2020 events were canceled, postponed or downsized. The brands advertising on the CBS broadcast will include Vroom, Toyota, M&Ms, PepsiCo's Cheetos and Doritos, Fiverr, Kellogg's Pringles and Intuit's TurboTax.Here are the Super Bowl commercials that have already been released. This list will be updated as brands release their official spots: Chipotle Chipotle is running its first-ever Super Bowl ad, titled "Can a Burrito Change the World?" The restaurant chain's spot highlights its "Food with Integrity" standards to reduce carbon emissions, save water and support local growers. The ad was created with advertising agency Venables Bell and Partners. Mercari E-commerce company Mercari is running a 15-second ad to show you can "buy almost anything from home." The company, a first-time entrant to the big game, said it provided a safe way to clean out closets as Americans decluttered their homes during the pandemic. The ad was done with Rain the Growth Agency. Michelob Ultra Michelob Ultra's 60-second spot, "Happy," will feature talent such as Serena Williams, Peyton Manning, Anthony Davis and Brooks Koepka. It asks the question, "Are you happy because you win, or do you win because you're happy?" The company worked with Wieden + Kennedy on the spot. Vroom Used car retailer, and, yes, another first-time Super Bowl advertiser, Vroom is using its airtime on the big game to show just how painful it says buying from a car dealership is. The 30-second spot was made with ad agency Anomaly and wants to show the benefits of "contact-free" at-home car delivery.Nominations are open for the 2021 CNBC Disruptor 50, a list of private start-ups using breakthrough technology to become the next generation of great public companies. Submit by Friday, Feb. 12, at 3 p.m. ET.

Government begins strategic sale of NINL, invites EoIs

25 Jan, 2021, 09:25PM | Economic Times

The government has invited expression of interest for strategic divestment of Neelachal Ispat Nigam Limited ( NINL ) at enterprise value. The sale will include transfer of management control, mining rights and leasehold rights of land currently held by the public sector enterprise under the steel ministry which makes pig iron and billets. “As a part of the strategic disinvestment, management and control of NINL will be transferred to the successful bidder through a transaction mechanics that include purchase of shares and infusion of funds into NINL which will be used to re-pay existing debt of NINL at or around the time of closing,” the department of investment and public asset management (DIPAM) said in the preliminary information memorandum for the sale on Monday. Interested bidders have till March 29 to submit the bids. The amount payable by successful bidder would be applied on a priority basis towards settlement of labour dues, operational creditors, commercial lender debt, promoter debt and purchase of 93.71% of shareholding of NINL as per a predetermined waterfall mechanism. The government has set the minimum net-worth of interested parties at Rs 2,000 crore as of March 31, 2020. Any entity, limited liability partnership, alternate investment fund and employees of the PSU have been allowed to bid, but government owned companies have been prohibited. The combined net worth of participating employees and bank or venture capitalist or financial institution, shall be taken into account for calculating minimum net worth requirement, in a bid by employers of the company. In case of a consortium of bidders, the eligibility criteria will apply to all the participants. Bidders can create special purpose vehicles after submission of EOIs. The Cabinet Committee on Economic Affairs had given an 'in principle' approval for strategic disinvestment of equity shareholding of several PSUs that hold equity in the company, earlier this month. MMTC holds 49.78%, OMC holds 20.47%, IPICOL holds 12%, NMDC holds 10.10% and MECON and BHEL hold 0.68% each in NINL.

Domestic steel prices will stabilize when global prices come down: Seshagiri Rao

25 Jan, 2021, 09:11PM | Economic Times

Mumbai: Domestic steel prices , which have been on an upswing, will stabilize once global rates come down, JSW Steel 's joint managing director Seshagiri Rao said. The benchmark price of hot-rolled coil – a key price gauge - was Rs 47,000-Rs 47,500 per tonne on average in the December quarter before hitting a record high of Rs 58,000 per tonne earlier in the month. Indian prices are following the global trend, he said. “In June, we were selling steel at Rs 34,000 per tonne,” Rao told ET in an interaction. “During the first quarter, steel industry losses were around Rs 6,000 crore… China’s steel prices in May were around $316, and now it is $702…and in the US, it was $507 in May and $1,100 in December - the increase is 119%... similar trend in EU,” he added. Rao said government-aided large infrastructure projects were guiding current steel demand along with a sharp pick-up in the two-wheeler, commercial vehicle and tractor segments. “The government-led initiatives will continue to be there for the next year too, which will bring back demand. Last year, steel consumption was around 100 million tonnes, this fiscal year so far it is 55 mt; assuming we will do similar consumption in Q4, we will be close to 92-93 mt of steel consumption,” Rao said. “I don’t consider that pent-up demand will tamper down, I don’t subscribe to that concept. This demand will definitely be there even through next year as far as India is concerned,” Rao added. The company reported a 14-fold increase in net profit, at Rs 2,669 crore, in the third quarter. Domestic sales in the December quarter were 3.48 mt, up 13% year on year and 16% quarter on quarter and the second-best quarterly sales on record. Supply to the automobile sector rose 57% year-on-year and 30% quarter-on-quarter. As of December, its cash balance stood at Rs 13,034 crore, and net debt was around Rs 51,793 crore. The company’s net debt reduction plan depends on the acquisition of Bhushan Power and Steel Ltd (BPSL), he said. “This quarter, we reduced around Rs 1,100 crore. Our debt goes up or down depending upon whether the BPSL acquisition is done or not. If BPSL does not go through this year, then debt levels will not go up, but ratios are quite comforting,” Rao said. While its India operations grew, the US and Italy continued to report losses. “In the US, if I really analyse from last December to now, the operating losses have come down from $334 million to $84 million. So, there is a huge amount of reduction which has happened during the quarter,” Rao said. The overseas operations underwent maintenance shutdowns during the quarter and the upcoming fiscal year will be one of stabilization and positive operating Ebitda, Rao said.

Gadkari calls for research to explore cheaper options to cement, steel

25 Jan, 2021, 05:59PM | Business Standards

Amid rising steel prices in the country, Union Minister Nitin Gadkari on Monday highlighted the need to explore alternatives to steel as well as cement, for bringing down their prices. The Minister for Road Transport and Highways and Micro, Small and Medium Enterprises (MSMEs) said he has asked some people from Indian Institutes of Technology to carry out research on alternatives to cement and steel. "Steel prices have increased by 65 per cent in the last six months," Gadkari said adding that the steel and cement rates will reduce once cheaper alternatives are available. Addressing an event to launch products prepared under the Deen Dayal Upadhayay Vigyan Gram Sankul Pariyojana, the minister also cited the example of soyabean cakes. He said when used for mass consumption, they can be served as cheaper alternatives to mutton while alleviating the problem of malnutrition, due to their high protein content of 49 per cent. "I believe that chicken and mutton are spoiling our mindset," the minister said. He, however, added that this should not become a controversial matter, as even though he is a vegetarian, a lot of people in the country are non-vegetarian. Gadkari also said lakhs of jobs could be created by empowering the village industry, which has the potential of achieving the annual turnover of Rs 5 lakh crore. He added that by exploring new marketing avenues and export potential, the contribution of India's MSMEs could further be increased from 30 per cent at present to 40 per cent in the next 5 years. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Top headlines: JSW Steel seeks price hike, L&T Q3 profit rises 5% YoY

25 Jan, 2021, 05:51PM | Business Standards

Indian, Chinese soldiers clash at Sikkim's Naku La, several injured Indian and Chinese soldiers clashed at Naku La in North Sikkim last week with many injuries reported, said a government source. The situation is said to be under control though as of now. Read here JSW Steel approaches auto companies for a hike in contract prices JSW Steel has approached auto companies for an increase in contract prices in the wake of a widening gap between spot and contract prices. Half-yearly contracts for auto companies were renewed in October. Though prices started increasing after unlocking in July, the major surge came post October. Read here Biden to sign executive orders to promote 'Made in America' products US President Joe Biden will sign a series of executive orders on Monday to promote "Made in America" products and strengthen supply chains, senior officials said, asserting that the new administration remains committed to working with partners and allies to modernise international trade rules. Read here Electric vehicles to overtake gas guzzlers in India by 2030: Mahindra Electric-vehicle sales should overtake gas guzzlers in India by the end of the decade as prices become more aligned and infrastructure and technology improves, hopefully with help from the government, according to Mahindra & Mahindra Ltd., one of the country’s biggest automakers. Read here L&T Q3 profit rises 5% YoY Larsen and Toubro (L&T) on Monday reported a consolidated net profit of Rs 2,466.71 crore for the October-December quarter of FY21 (Q3FY21), clocking a growth of 4.8 per cent year on year (YoY) on the back of highest-ever order inflow in a quarter. Read here

Budweiser will sit out Super Bowl, funneling marketing dollars to boost vaccine awareness

25 Jan, 2021, 05:30PM | CNBC

Budweiser's Super Bowl "Lost Dog" ad.Source: Budweiser Budweiser will not be running a commercial during the Super Bowl for the first time in 37 years.Instead, the Anheuser-Busch InBev beer is opting to support Covid-19 vaccine awareness and access with its marketing dollars.As of Friday, roughly 39 million vaccines doses had been distributed and only 19.1 million administered, falling well short of the targets set by the federal government.In the week leading up to the Super Bowl game, Budweiser plans to run its Super Bowl ad digitally. The spot focuses on resilient Americans during the coronavirus pandemic, including a group of health-care workers who were the first to receive the vaccine. Actress Rashida Jones, known for her roles in "The Office" and "Parks and Recreation," will narrate the spot.The beer brand also plans to donate a percentage of its advertising airtime for 2021 to the Ad Council and Covid Collaborative's Vaccine Education Initiative. Budweiser will support its efforts with additional campaigns throughout the year.The company also isn't entirely giving up promoting its beer. Budweiser is giving U.S. consumers who are at least 21 years old a free beer when they visit ABeerOnBud.com between Jan. 25 and Feb. 7. AB InBev's other brands, including Michelob Ultra, Bud Light and Bud Light Seltzer Lemonade, will have in-game ads during the Super Bowl.Budweiser isn't the only iconic brand sitting out the game. PepsiCo and Coca-Cola have both said that they won't be running in-game ads for their namesake sodas. Pepsi is instead focusing on its sponsorship of the halftime show, which stars The Weeknd this year. PepsiCo's other brands, including Mtn Dew and Frito-Lay, are planning on airing commercials during the game.In a statement to CNBC, Coke said that it has chosen to focus on "investing in the right resources." The pandemic has upended the beverage giant's business, as fewer drinks are consumed away from home, and its revenue fell 13% during the first nine months of 2020.Last year's Super Bowl drew about 100 million viewers, but attracting those eyeballs comes with a hefty price tag for advertisers. A 30-second commercial during the football game will set companies back about $5.5 million this year, slightly less than 2020's rate of $5.6 million.Shares of Budweiser parent AB InBev have fallen 14.5% in the last year, giving the company a market value of about $113 billion. While at-home consumption of beer is up due to the pandemic, the blow to bars and sports stadiums has resulted in a 6.8% revenue decline during the first nine months of 2020. VIDEO11:2011:20AB InBev CEO on helping manufacture crucial items in the fight against coronavirusSquawk Box

Gadkari calls for research to explore cheaper options to cement, steel to reduce prices

25 Jan, 2021, 05:24PM | Economic Times

NEW DELHI: Amid rising steel prices in the country, Union Minister Nitin Gadkari on Monday highlighted the need to explore alternatives to steel as well as cement, for bringing down their prices. The Minister for Road Transport and Highways and Micro, Small and Medium Enterprises (MSMEs) said he has asked some people from Indian Institutes of Technology to carry out research on alternatives to cement and steel. "Steel prices have increased by 65 per cent in the last six months," Gadkari said adding that the steel and cement rates will reduce once cheaper alternatives are available. Addressing an event to launch products prepared under the Deen Dayal Upadhayay Vigyan Gram Sankul Pariyojana, the minister also cited the example of soyabean cakes. He said when used for mass consumption, they can be served as cheaper alternatives to mutton while alleviating the problem of malnutrition, due to their high protein content of 49 per cent. "I believe that chicken and mutton are spoiling our mindset," the minister said. He, however, added that this should not become a controversial matter, as even though he is a vegetarian, a lot of people in the country are non-vegetarian. Gadkari also said lakhs of jobs could be created by empowering the village industry, which has the potential of achieving the annual turnover of Rs 5 lakh crore. He added that by exploring new marketing avenues and export potential, the contribution of India's MSMEs could further be increased from 30 per cent at present to 40 per cent in the next 5 years.

L&T Q3 profit rises 5% YoY to Rs 2,467 cr on record quarterly order inflow

25 Jan, 2021, 05:22PM | Business Standards

Larsen and Toubro (L&T) on Monday reported a consolidated net profit of Rs 2,466.71 crore for the October-December quarter of FY21 (Q3FY21), clocking a growth of 4.8 per cent year on year (YoY) on the back of highest-ever order inflow in a quarter. This amount, however, included net profit worth Rs 209.3 crore from the company's discontinued operations. "Consolidated Profit After Tax (PAT) for the quarter ended December 31, 2020 at Rs 2,467 crore registered growth of 4.9 per cent over the corresponding quarter of the previous year, largely attributed to higher profit from IT a TS segment and sale of commercial property in Realty. PAT also includes gain on divestment of Rs 209 crore from discontinued operations for the quarter ended December 31, 2020," L&T said in its financial statement. India's largest infrastructure, which had clocked a net profit of Rs 2,352.1 crore in the year-ago period, reported a 55.3 per cent decline in PAT on a quarterly basis from Rs 5,520.27 crore reported in Q2FY21. The numbers were better-than-Street expectations. Analyst at Sharekhan, for instance, had expected the PAT to come around Rs 2,118 crore, while those at HDFC Securities had pegged the profit at Rs 1,980 crore. It's standalone net profit came in at Rs 1,872.77 crore for Q3FY21, compared with a PAT of Rs 6,716.51 crore in Q2FY21 and Rs 1,246 crore in Q3FY20. Revenue from operations, meanwhile, came in at Rs 35,596.42 crore for the quarter under review, down 1.7 per cent from previous year revenue of Rs 36,242.7 crore. This translated into a 14.6 per cent growth in revenue on quarterly basis from Rs 31,034.7 crore clocked in Q2FY21. The income missed analysts' expectation who had expected revenue of Rs 39,321.7 crore, up 8.5 per cent YoY. READ ANALYSTS' EXPECTATIONS HERE "The Covid-19 restrictions continued to have an impact on project site execution and Hyderabad metro operations that led to a marginal decline in revenue of 2 per cent over the corresponding quarter of the previous year. International revenue during the quarter at Rs 12,967 crore constituted 36 per cent of the total revenue. The consolidated gross revenue for the nine months period is at Rs 87,891 crore," the management said in a statement. On the operational front, L&T's earnings before interest, tax, depreciation, and amortisation (Ebitda) rose 3.9 per cent on year at Rs 4,279.8 crore from Rs 4,118 crore reported in Q3FY20. Ebitda margin stood at 12 per cent, a jump of 60 bps YoY. Order Book During the quarter the company was awarded the biggest EPC contract in the country and first of its kind - the prestigious High Speed Rail order. With this, the Group order inflow for the quarter ended December 31, 2020 registered a strong growth of 76 per cent over the corresponding quarter of the previous year and stood at Rs 73,233 crore. International orders during the quarter constituted 14 per cent of the total order inflow. On a cumulative basis, the order inflow for the nine months period ended December 31, 2020 stood at Rs 124,846 crore. The consolidated order book of the Group stood at a record Rs 331,061 crore as at December 31, 2020, registering a robust growth of 9 per cent over the March'20 level. The international orders constitute 20 per cent of the total order book. Segment-wise revenue L&T secured orders worth Rs 45,574 crore, higher by 80 per cent YoY during the quarter ended December 31, 2020, in the Infrastructure segment. The segment recorded customer revenue of Rs 15,828 crore, registering a sequential growth of 22 per cent but down 7 per cent YoY primarily "on account of progress being impacted due to Covid-19 preventive measures". The overall revenue declined 7 per cent as against previous year's income and stood at Rs 15,973.22 crore in Q3FY21. The Ebitda margin of the segment is at 6.2 per cent for the current quarter as compared to 6.1 per cent for the quarter ended December 31, 2019. In the Power segment, the company didn't receive any major order and ended the quarter with an order book worth Rs 13,710 crore. The total revenue from the segment came in at Rs 903.7 crore, up 29.4 per cent YoY. "Heavy Engineering Segment secured orders at Rs 998 crore during the quarter, posting nearly a 100 per cent growth on YoY basis," it said in its statement. The segment recorded customer revenue of Rs 733 crore, with total order book at Rs 3,645 crore at the end of Q3FY21. The total revenue was Rs 803.3 crore, flat YoY. It's Defence Engineering Segment received orders worth Rs 705 crore during the quarter ended December 31, 2020 which were mainly domestic, registering substantial growth on a low base of the corresponding quarter of the previous year. The order book of the segment stood at Rs 8,795 crore as on December 31, 2020, with export orders constituting 13 per cent. Customer revenue from the segment was Rs 1,022 crore with Ebitda margin at 16.9 per cent. The reported total revenue came in at Rs 1,024 crore, up 2 per cent YoY. Customer revenue from IT and Financial Services segment stood at Rs 6,505 crore and Rs 3,401 crore, respectively, up/down 7 per cent/4 per cent YoY. Outlook The management said the post lockdown pent-up demand, improved prospects in affordable residential real estate, green shoots in Cement and Steel capex outlays, are signs of improved confidence on economic revival. However, significant private sector led capex could continue to remain in wait a watch mode, in the medium term. "On the global front, the business sentiments remain cautious as localised repeat outbreaks of the Covid-19 virus and the resultant lockdown continues to hamper sustained economic recovery. The near term outlook features continuing uncertainty on the trade front between US and China and forecast of subdued oil prices affecting Middle East economies," it said in its forward-looking guidance. The Company will focus with cautious optimism on large project wins, smart execution of its large order book, and preservation of liquidity and optimum use of capital and other resources, it added. Shares of the engineering and construction firm hit a fresh 52-week high of Rs 1,396 apiece on the BSE earlier in the day, but ended 0.12 per cent lower at Rs 1,361.45.

Goa govt making efforts to resume mining, says Governor Koshyari

25 Jan, 2021, 02:57PM | Business Standards

The Goa government is making continuous efforts to resume mining in a systematic manner, Governor Bhagat Singh Koshyari said on Monday, in his inaugural address to the state Legislative Assembly during the winter session. "My government is continuously making efforts to resume mining in a systematic manner by rejuvenating the state's economy, preserving the environment, the natural resources, the health status of the people in the mining sector with the main vision to ensure 'sustainable mining' in the state of Goa," Koshyari said in his speech. The mining issue has been hanging fire in Goa, ever since the apex court in 2018, citing irregularities in the processes adopted by the state government to renew 88 mining leases, scrapped the leases rendering them invalid. As a result of the order all fresh ore extraction activity has stopped, bringing the industry to a standstill. The state's mining sector accounted for nearly 16 per cent of Goa's Gross Domestic Product in 2011-12, but the contribution slipped to only 0.2 per cent in 2019-20, due to the virtual non functioning of the industry in wake of the fresh stoppage. As a result of the order all fresh ore extraction activity has stopped, bringing the industry to a standstill. The only revenues generated by the mining industry in the period between 2018 and 2021 is via e-auctioning of iron ore already extracted and dumped at respective mining leases. "My government has conducted 24 e-auctions and sold 14.68 million tons of mineral ore lying at various stack yards," Koshyari also said. The stoppage in 2018 is the second time in less than a decade, that all mining in the state has come to a standstill. It was banned for the first time in 2012 after a judicial commission exposed a Rs 35,000 crore illegal mining scam, indicting top mining companies as well as politicians and bureaucrats. --IANS maya/dpb (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Just 40 light years away, 7 Earth-like planets with similar compositions

25 Jan, 2021, 12:05PM | Business Standards

The search for another habitable location in the vastness of the cosmos has been one of the most intriguing explorations of all times, bringing us close to a set of stars and exoplanets. The most fascinating among them is the TRAPPIST-1 system, which consists of the most Earth-sized planets found in the habitable zone of a single star. A new research published in The Planetary Science Journal has now evoked a renewed interest in the system, with astronomers finding that the exoplanets have remarkably similar densities. This system of seven rocky worlds – all with the potential for water on their surface – is an exciting discovery in the search for life in other worlds. The discovery of the system was first announced by the US National Aeronautics and Space Administration (Nasa) in 2017. In 2018, a closer study of the seven planets suggested that some could harbour far more water than the oceans on Earth, in the form of atmospheric water vapour for the planets closest to their star, liquid water for others, and ice for those farthest away. The measured density According to the study, "they all contain about the same ratio of materials thought to compose most rocky planets, like iron, oxygen, magnesium, and silicon. But if this is the case, that ratio must be notably different than Earth’s. The TRAPPIST-1 planets are about 8 per cent less dense than they would be if they had the same makeup as our home planet." The researchers now believe that a few different mixtures of ingredients could give the TRAPPIST-1 planets the measured density. ALSO READ: Are we alone? Study hints at 300 mn habitable worlds in Milky Way galaxy The understanding of a planet's density is critical in establishing the chemical composition of the planet. Planets in our own solar system have a varied density, the gas-dominated giants – Jupiter, Saturn, Uranus, and Neptune – are larger but much less dense than the four terrestrial worlds because they’re composed mostly of lighter elements like hydrogen and helium. Even the four terrestrial worlds show some variety in their densities, which are determined by both a planet’s composition and compression due to the gravity of the planet itself. By subtracting the effect of gravity, scientists can calculate what’s known as a planet’s uncompressed density and potentially learn more about a planet’s composition, Nasa said in a report. Understanding Iron on TRAPPIST-1 According to the research, the seven planets on the TRAPPIST system have similar densities, with a difference of just 3 per cent. However, the difference of density between the TRAPPIST planets and Earth is 8 per cent. TRAPPIST-1 planets are less dense is that they have a composition similar to the Earth’s, but with a lower percentage of iron – about 21% compared to the Earth’s 32%, according to the study. The iron in the TRAPPIST-1 planets might be infused with high levels of oxygen, forming iron oxide, or rust. The additional oxygen would decrease the planets’ densities. The surface of Mars gets its red tint from iron oxide, but like its three terrestrial siblings, it has a core composed of non-oxidised iron. ALSO READ: Death of galaxy: Galactic collision spews gases equal to 10,000 suns a year Nasa, quoting Eric Agol, an astrophysicist at the University of Washington and lead author of the new study, said the answer might be a combination of the two scenarios – less iron overall and some oxidised iron. The team also looked into whether the surface of each planet could be covered with water, which is even lighter than rust and which would change the planet’s overall density. If that were the case, water would have to account for about 5 per cent of the total mass of the four outer planets. Trappist-1 star compared to our Sun. (NASA) “The night sky is full of planets, and it’s only been within the last 30 years that we’ve been able to start unravelling their mysteries,” said Caroline Dorn, an astrophysicist at the University of Zurich and a co-author of the paper. “The TRAPPIST-1 system is fascinating because around this one star we can learn about the diversity of rocky planets within a single system. And we can actually learn more about a planet by studying its neighbours as well, so this system is perfect for that.” ALSO READ: US: NASA administrator departs, Joe Biden may pick a woman to lead The discovery The first three planets of the system were discovered in 2016 using the Transiting Planets and Planetesimals Small Telescope (TRAPPIST) in Chile. The scientists used the transit method to establish the presence of planets around the star. The method is to look for dips in the star’s brightness created when the planets cross in front of it. An artist's concept of TRAPPIST-1. (Nasa) Repeated observations of the starlight dips combined with measurements of the timing of the planets’ orbits enabled astronomers to estimate the planets’ masses and diameters. Previous studies have established that the planets in the system have roughly the size and mass of the Earth and thus must also be rocky, or terrestrial.

DIPAM ready with Rashtriya Ispat Nigam's sale plan; to sent it to Cabinet soon

25 Jan, 2021, 10:23AM | Economic Times

(This story originally appeared in on Jan 25, 2021) NEW DELHI: The department of investment and public asset management (DIPAM) is readying a proposal for strategic sale of steel maker Rashtriya Ispat Nigam ( RINL ) and it is likely to be sent to the Union Cabinet shortly for approval. RINL is a navratna steel PSU and the corporate entity of Vishakhapatnam Steel plant under the steel ministry. The government had been making efforts to go for a strategic sale of the steel plant for 2-3 years but the efforts did not make much headway. Sources said the idea is to go for 100% sale in the next fiscal. RINL has been notching up losses and the global slowdown had hurt its exports. “With steel prices improving and demand expected to pick up, there is a view that this is a right time to go for a strategic sale,” said an official, who did not wish to be identified, adding that expectations are that there is a strong interest for the plant. The move to go for a strategic sale of RINL adds to the strong pipeline of such offers that the government has lined up for the next fiscal. The government’s ambitious move to wrap up some big-ticket strategic sales such as petroleum major BPCL and national carrier Air India has not materialised so far. Officials said these high profile sales are likely to be completed next year as the groundwork has been done to ensure that they go through. Since assuming power in 2014, the NDA government had vowed to press ahead with strategic sales, which involves giving up management control, but the process has been hobbled by a string of factors. The government has set a target of raising Rs 2.1 lakh crore from asset sales in state-run companies in the current fiscal but officials reckon that it will be missed by a wide margin.

Reliance Industries stock dips 6% post Q3; analysts see up to 21% upside

25 Jan, 2021, 10:18AM | Business Standards

Reliance Industries shares tanked as much nearly 5.7 per cent and hit an intra-day low of Rs 1,933 on the BSE on Monday as investors booked profits after the company announced its results for the third quarter ended December 2020 (Q3FY21). The numbers were unveiled post market hours on Friday. The oil-to-telecom conglomerate's consolidated net profit of Rs 13,101 crore in the December quarter jumped 37 per cent sequentially, and beat Street expectations of a 32 per cent QoQ PAT improvement. On a yearly basis, the profit grew 12.5 per cent as lower expenses cushioned earnings even as revenues declined. READ ABOUT IT HERE According to Bloomberg estimates, the company’s top line was seen at Rs 1.209 trillion in the December quarter, while the bottom line was expected to be at Rs 10,107 crore. In segment-wise revenue, the company’s digital services was the only business that saw an uptick - of 33 percent on a year-on-year (YoY) basis at Rs 23,678 crore. Oil-to-chemicals, oil and gas, and retail were down 30 per cent, 51 per cent, and 19 per cent, respectively, on a year-on-year basis. At close, the counter was at Rs 1,940 apiece, down 5.4 per cent, and was the top loser on the benchmark S&P BSE Sensex. A combined 826.36 million shares changed hands on the NSE and BSE today. Here's how brokerages have interpretted the result. Nomura Target Price: Rs 2,400 | Reco: Buy RIL's 3Q consolidated EBITDA was 3 per cent below our estimates. The miss was largely on energy business with standalone EBITDA 12 per cent below our estimates. RIL has reorganized its reporting to combine the refining and petchem segments as a single O2C segment. With the changed reporting, it has not disclosed refining GRM, which makes quarterly comparisons difficult. Petchem was further strong QoQ (polymer margins were record high, intermediate volume/margins also better); thus, we believe that refining was likely weaker vs our GRM forecast of $6/bbl ($5.7/bbl in 2Q). We continue to value RIL on SOTP basis with unchanged EV/EBITDA multiples (refining 7x, petchem 8x, Jio 11x, core retail at 30x, non-core at 7x). We value Future's retail business at Rs 100 (unchanged), and adjust our TP for recent stake sales in Retail. Our revised TP of Rs 2,400 implies 17 per cent upside. RIL has outperformed the NIFTY for the past six years, and with strong growth the outperformance will likely sustain. Credit Suisse TP: Rs 1,930 | Reco: Neutral Q3FY21 was below expectation on lower Retail sales, weak O2C margins, and low subscriber addition in Jio. Going forward, key catalysts are launch of affordable 4G smartphone which can aid towards subscriber addition; strategy to transition kirana stores buying from cash-and-carry to JioMart, which could expandits reach; update on O2C deal as oil prices recovered; launch of integrated digital health/education apps; and growth plans of Financial Services. Our estimate is lower than consensus by 12-13 per cent due to moderate ramp-up of Refining margins and price hike in Telecom starting mid-FY22. We cut FY22E/FY23E EPS by 4 per cent/3 per cent as we push Jio's 500 million subscriber base to mid-FY23 and factor in slower Retail recovery. Goldman Sachs TP: Rs 2,390 | Reco: Buy Given the in-line result, we make no changes to our estimates or 12-month TPs of Rs 2,390/US$63.69 GDR which remain based on a SOTP methodology. We continue to use 8X CY22E (FY23E) to value the chemical business, and 6.5X for refining and marketing; we use EV/EBITDA to value the core refining and petchem business, and we use DCF to value the high-growth telecom and retail business (online and offline). We see 17% upside in our base case. Risk-reward remains positive, with 50% upside in our bull case and 9% downside in our bear case scenarios. BofA Securities TP: Rs 2,355 | Reco: Buy RIL’s 3Q EBITDA/EBIT beat our estimate by 5 per cent/8 per centled by better retails and margins. 3Q normalized PAT at Rs 13,100 crore was 18 per cent higher than our estimate due lower than expected int income. We reiterate buy on favorable risk-reward. Catalysts: 1) App in app integration of JioMart in Whatsapp; 2) Potential launch of low cost Jio-Google smartphones and 3) Material uptake of fiber net adds. JPMorgan TP: Rs 1,990 | Reco: Neutral EBITDA had a small miss across most segments, though continued 0% tax rate, and lower interest expenses drove an in line reported PAT. With Refining and Petchem folded into O2C, the segment was a miss and RIL did not disclose reported GRM’s as it now would report on an integrated O2C basis. We are surprised by the lack of any mention on the pet coke gasifier, where profitability should have been high given the sharply higher spot LNG prices. While Jio ARPU’s were a beat, net subs addition was a large miss and this would worry markets given that FY22-23 earnings growth is dependent on tariff hikes. Retail EBITDA ex of Investment Income was soft. While we maintain our FY22-23 earnings, 3Q highlights that earnings outlook for FY22 is increasingly binary in nature and entirely dependent on a) sharp refining recovery and b) large telecom tariff hikes with continued sub additions. BNP Paribas TP: Rs 2,367 | Reco: Buy We reiterate our BUY rating on RIL with a revised SoTP based TP of Rs 2,367. The lower TP is largely due to a change in the net debt position as well as marginal tweak to earnings. Our FY21E earnings increases almost entirely due to the benefit from lower taxes and lower interest expense which should continue for 4QFY21 as well. We continue to like RIL shares but believe the near term weakness should continue until we see economics of the O2C business improve. Bernstein TP: Rs 2,470 | Reco: Outperform Reliance Industries reported highest quarterly net profit of Rs 14,894 crore or Rs 19.9/share for 3QFY21 (+40% q-o-q, +26% y-o-y) which was 47 per cent higher than consensus estimates of Rs 10,110 crore. YTD net earnings totaled Rs 33,334 crore which is 86 per cent of our FY estimates and 83% for consensus. The strong beat came across all businesses and lower finance costs. Citi TP: Rs 2,130 | Reco: Neutral We make 0-8% changes to FY21-23E earnings (9M performance, lower taxes). Maintain Neutral given lack of near-term triggers & limited upside. Macquarie TP: Rs 1,350 | Reco: Underperform We cut our FY22-23 EPS estimates ~3%, and note that our estimates still remain ~25% below cons. Against headline EPS growth of 10% Y/Y, we estimate underlying EPS was down ~30% in the Dec-Q. Today's stock price implies flawless execution on RIL’s multi-pronged growth aspirations combined with a premium over recent deal valuations. Motilal Oswal Financial Services TP: Rs 2,325 | Reco: Buy Consolidated Dec’20 debt stood at Rs 2.57 trillion cash and cash and equivalents at Rs 2.2 trillion. The company received Rs 73,500 crore in 3QFY21, and considering balance commitments of Rs 39,800 crore, ceteris paribus, the company's net cash stood at Rs 3,000 crore. As RJio's growth slows, Jio Platforms Ltd, its holding company, is keen to replicate the success of Wireless in other business streams. With aggressive plans and product launches in place, Jio Platforms is creating multiple monetization opportunities in the Digital space. Thus, we assign an EV/EBITDA multiple of 17x on FY23 EBITDA, maintaining target price of Rs 900/share (for its 66 per cent stake). The higher multiple captures digital revenue opportunity, potential tariff hikes, and opportunity in the Low-cost Device market, among others, not built into our estimates. We roll forward the valuation on an FY23 basis, valuing Reliance Retail’s core business at 30x EV/EBITDA and assigning 4x to Connectivity, arriving at TP of Rs 645 – after excluding the recent 10 per cent stake sale. Our premium valuation multiples capture the opportunity for rapid expansion in the Retail business and the aggressive rollout of the JioMart platform. Kotak Institutional Equities TP: Rs 2,050 | Reco: Add RIL's operating performance across segments was weaker than our expectations in 3QFY21. Debt reduction was lower as a significant portion of inflows from capital raise and cash profits was once again utilized in capex, working capital and repayment of creditors. Lesser disclosures could have been avoided. We expect the stock to remain muted as digital initiatives remain WIP with limited tangible details to appreciate the long-term narrative for now. We cut FY2022-23E EPS by 6 per cent factoring in (1) lower downstream margins, (2) lower subscriber additions, (3) lower retail revenues and margins and (4) other minor changes. We raise FY2021E EPS though by 9 per cent reflecting positive variance in below-EBITDA items and negligible tax rate. Our SoTP-based FV reduces to Rs 2,050 from Rs 2,150 on lower estimates and higher debt. Edelweiss Securities TP: Rs 2,105 | Reco: Hold Reliance Industries' Q3FY21 EBITDA of Rs 21,500 crore (down 4 per cent YoY) came in line with our estimate. PAT of Rs 13,100 crore beat estimate, but was entirely driven by investment income and a near-zero tax liability. O2C & retail missed expectations, but RJio beat forecasts. While recovery is underway, it is mixed. But, transparency levels are falling across businesses. RIL has stopped reporting a key matrix—GRM—altogether. Similarly, it has ceased providing division-wise turnover breakdown for retail and RJio's key driver FTTH lacks granularity. In our view, primary stock triggers—deleveraging, asset monetisation, digital momentum—have played out. Retail PAT attributable to RIL is diluted by 10 per cent stake sale, resulting in estimated 7 per cent YoY PAT fall (standalone up 4 per cent). Similarly, on 33 per cent stake sale, attributable PAT growth dips to 63 per cent YoY for RJio versus standalone of 144 per cent. While consumer-facing, RJio and retail optically contribute to half of RIL’s EBITDA, it falls to only 29 per cent at attributable consolidated PAT level. Prabhudas Lilladher TP: Rs 2,232 | Reco: Buy We leave our FY22/23E estimates unchanged, but increase FY21 estimates by 34 per cent to factor in deferred tax credit for restructuring of the O2C business and other changes in depreciation and finance charges. Recovering economic activity augurs well for all RIL’s business segments and downstream focus will create value going ahead. RIL with its stated intention to monetize and forge global partnership across businesses, is well positioned to incubate new business and pursue inorganic opportunities given its liquid BS. We believe positive news flow on global partnerships or stake sale is likely to keep valuations at elevated level. Maintain BUY with a PT of Rs 2,232 (unchanged). HDFC Securities TP: Rs 2,330 | Reco: Add Our ADD rating on RIL with a price target of INR 2,330 /sh is premised on (1) induction of Facebook, Google, Intel and Qualcomm as partners in Jio Platforms, which should help the company accelerate the growth of digital connectivity and create value in the digital ecosystem through technology offerings, (2) recovery in refining and petchem businesses in FY22E, (3) the emergence of a clear path to a stronger balance sheet, and (4) stake sale in the retail business. We have raised our FY21/22 EPS estimates by 22.0/11.5 per cent to Rs 69.9/91.5 per share, mainly to account a better-than-anticipated 9MFY21 performance, and a lower-than-expected tax outgo in FY21. We use EV/EBITDA to value downstream at Dec-22E EV/e, Retail on peer benchmarked EV/e and E&P, Jio on DCF. The stock is currently trading at 12.2x Dec-22E EV/EBITDA and 22.4x Dec-22E EPS. IDBI Capital TP: Rs 2,475 | Reco: Buy Reliance Industries (RIL) Q3FY21 result was below our estimates at operational level (in line with consensus) while PAT was higher than our and consensus estimates on the back of deferred tax reversal and lower interest cost. Higher volume in O2C, robust polymer margin, higher ARPU and lower effective tax rate along with lower interest and higher other income swelled net profit. However, the company's new reporting structure (integrated refining and petrochem division to O2C business), led to non-disclosure of GRM. Lower crack spreads and weaker retail division (excl investment income) performance during Q3 was a disappointment. With vaccination drive, we expect GRM to improve further led by pick-up in economic activity. We raise PAT estimates for FY21E by 16.6 per cent to factor in lower tax rate and lower interest outgo while keep other estimates largely unchanged. We slightly tweak our TP to Rs 2,475 from Rs 2,468.

An 'aggressive' fight over containers is causing shipping costs to rocket by 300%

25 Jan, 2021, 07:28AM | CNBC

A Chinese worker looks on as a cargo ship is loaded at a port in Qingdao, eastern China's Shandong province.AFP Contributor | AFP | Getty Images SINGAPORE â A critical shortage of containers is driving up shipping costs and delays for goods purchased from China.The pandemic and uneven global economic recovery has led to this problem cropping up in Asia, although other parts of the world have also been hit. Industry watchers said desperate companies wait weeks for containers and pay premium rates to get them, causing shipping costs to skyrocket.This affects everyone who needs to ship goods from China, but particularly e-commerce companies and consumers, who may bear the brunt of higher costs.In December, spot freight rates were 264% higher for the Asia to North Europe route, compared with a year ago, according to Mirko Woitzik, risk intelligence solutions manager at supply chain risk firm Resilience36. For the route from Asia to the West Coast of the U.S., rates are up 145% year over year.Compared with last March's low prices, freight rates from China to the U.S. and Europe have surged 300%, Mark Yeager, chief executive officer of Redwood Logistics, told CNBC. He said spot rates are up to about $6,000 per container compared with the usual price of $1,200.Even rates from the U.S. have gone up, though not quite as dramatically, according to Yeager."The reason for this is the Chinese are being so aggressive about trying to get empty containers back â¦ that it's hard to get a container for US exporters," he wrote in an email to CNBC, adding that 3 out of 4 containers from the U.S. to Asia are "going back empty."In fact, the shortage in Asia has also led to a similar crisis in many European countries, such as Germany, Austria and Hungary, as shipping carriers redirect containers to the East as quickly as possible, said Woitzik. Trade surplus furthers container imbalance There are a few factors stemming from the pandemic driving this phenomenon.First, China is sending out a lot more exports to the U.S. and Europe than the other way round. Its economy bounced back faster as the virus situation within its borders was basically under control by the second quarter of last year. As a result, containers are stuck in the West when they are really needed in Asia. VIDEO3:3703:37Port of Los Angeles executive director on shipping delays and trafficPower Lunch There are about 180 million containers worldwide, but "they're in the wrong place," said Yeager of Redwood Logistics."So what's happening is what was already a trade surplus in China has turned dramatically more severe and the reality is, there's three containers going out for every container that's coming in," he said.Making matters worse, orders for new containers were largely canceled during the first half of last year as most of the world went into lockdown, according to Alan Ng, PWC's mainland China and Hong Kong transportation and logistics leader."The magnitude and pace of the recovery have caught everyone by surprise," he said. "The sudden recovery in trade volume has seen virtually all of the major shipping lines needing to add significant container capacity to address the container shortage issue." Limited alternative The shortage is further exacerbated by limited air freight capacity. Some high-value items that would normally be delivered by air, such as iPhones, now have to use containers via sea instead, according to Yeager.International flight volumes have plunged due to virus and travel restrictions."Air freight companies typically use that extra capacity at the belly of a passenger plane. Well, there's just not very many passenger flights, so not as much air service," he said. "The lack of options, combined with this crazy amount of demand, has produced this crisis." VIDEO2:2102:21Analyst: Deutsche Post will benefit from global shortage in air freight supplyStreet Signs Europe The container crisis affects all companies that need to ship goods. But analysts say the situation has a pronounced effect on e-commerce retailers that primarily offer consumer goods, many of which are made in China.Ikea's Singapore operations called it a "global transport crisis" in a mid-January Facebook post:"The surge in demand worldwide for logistical services at this time has resulted in a global shortage of shipping containers, congested seaports, capacity constraints on vessels, and even lockdown in certain markets, amongst other challenges."The furniture giant estimated that about 850 of its 8,500 products sold in Singapore are affected by shipment delays, which Ikea said affects availability and planned promotions.Redwood Logistics' Yeager said retailers have to decide: "Do I pay a significant premium, or do I push back delivery substantially and (disappoint) customers?" The related costs are either being absorbed by retailers or passed on to customers, he said. Race to build new containers While some new containers have been ordered, PWC's Ng said they will not be ready right away. He pointed to a report by the Shanghai International Shipping Research Centre released in the fourth quarter last year, which said that the shortage issue is likely to last for another three months or more.Chinese tech giant Alibaba's logistic arm Cainiao launched a container booking service last week, citing the global shortage. It said its service would span over 200 ports in 50 countries, and port-to-port shipping fees would be 30% to 40% cheaper, according to Reuters.But even the race to build more containers could be hobbled by delays, according to Yeager. He said the pandemic has also hit the supply of steel and lumber needed to build containers.

WEF's Davos summit begins; Modi to address on Thursday, Jinping on Monday

25 Jan, 2021, 12:36AM | Business Standards

The World Economic Forum's online Davos Agenda Summit began on Sunday night with the premier of a concert filmed during the coronavirus pandemic in different parts of the world and the event will see top global leaders, including Prime Minister Narendra Modi and Chinese President Xi Jinping, speak on the state of the world over the next five days. After a welcome address by WEF Founder and Executive Chairman Klaus Shwab, Swiss President Parmelin delivered a special address, followed by annual Crystal Awards and the premier of 'See Me: A Global Concert'. The concert was presented as a shared expression of trust, connection and hope and it features orchestras and choirs in Beijing, Drakensberg, Florence, Kabul, Philadelphia, Vienna and Sao Paulo, with the cellist Yo-Yo Ma and music director Marin Alsop. The concert was filmed on location despite the COVID-19 challenges. In what could be the first major global summit of the year, the event will see more than 1,000 global leaders, including heads of state and government, CEOs and chairmen of big companies, heads of multilateral organisations as also members of academia and civil society, discuss economic, environmental, social and technological challenges following the COVID-19 pandemic. The WEF said there would be 15 special addresses from G20 heads of state and government and international organisations during the summit that will continue till January 29. Prime Minister Narendra Modi will deliver his address on Thursday. Agriculture Minister Narendra Singh Tomar, Health Minister Harsh Vardhan and Petroleum and Steel Minister Dharmendra Pradhan, as also business leaders such as Anand Mahindra, Salil Parekh and Shobana Kamineni would be among other speakers from India. While the WEF will host its physical annual meeting in May in Singapore, as against the regular venue of the Swiss ski resort town of Davos, the Geneva-based organisation is hosting this online event, named 'Davos Agenda' around the same time it generally hosts its yearly congregation of the rich and powerful of the world. The event has been billed as a platform that will see top world leaders deliver special addresses and engage in dialogue with business leaders at the start of a "crucial year to rebuild trust". Chinese President Xi Jinping will deliver a special address on Monday, while the day will also see several sessions including on the COVID-19 crisis, restoring economic growth and stakeholder capitalism. United Nations Secretary-General Antonio Guterres will also address a session. On Tuesday, the speakers would include South Africa President Cyril Ramaphosa, European Commission President Ursula von der Leyen, German Chancellor Angela Merkel, French President Emmanuel Macron, as also IMF chief Kristalina Georgieva. Republic of Korea President Moon Jae-in, Italy Prime Minister Giuseppe Conte and Israeli Prime Minister Benjamin Netanyahu are among the listed speakers for Wednesday. On Thursday, in addition to Modi, Jordan King Abdullah II ibn Al Hussein and Argentine President Alberto Fernandez will also deliver their special addresses. Singapore's Prime Minister Lee Hsien Loong and Japan's Prime Minister Yoshihide Suga will speak on Friday, the last day of the summit. On Monday, Schwab will also release his latest book, titled 'Stakeholder Capitalism: A Global Economy that Works for Progress, People and Planet.' It explores how societies can build the future post-COVID and builds on the WEF's 50-year-old advocacy of the stakeholder approach. ALSO READ: United Arab Emirates cabinet approves setting up embassy in Tel Aviv Other major speakers would include Christine Lagarde, Bill Gates, Punit Renjen of Deloitte, Brian T Moynihan of Bank of America, Al Gore, Ishaan Tharoor, Mark Carney, Angel Gurria of OECD, Ajay Banga, K T Rama Rao, Masayoshi Son of Softbank and Tedros Adhanom Ghebreyesus of the WHO. The list of registered participants also include Union ministers Nitin Gadkari, Smriti Irani and Piyush Goyal, along with top business leaders such as Mukesh Ambani, Gautam Adani, Ravi Ruia, Rishad Premji, Pawan Munjal, Rajan Mittal, Sunil Mittal, Ajay Khanna, Ajit Gulabchand, Hari S Bhartia and Sanjiv Bajaj. Former RBI Governor Raghuram Rajan, Tata Steel CEO T Narendran and Walmart CEO Doug McMillon are also among registered participants. ALSO READ: 'We can't wait:' Biden to push US Congress for $1.9 trn in Covid-19 relief The WEF's Davos 2020 summit was the last major global event that took place before almost the entire world got locked down due to the COVID-19 pandemic. The 'Davos Agenda' will also mark the launch of WEF's "Great Reset Initiative'' and begin the preparation of the special Annual Meeting in the spring, said the Geneva-based entity, which describes itself as an international organisation for public-private cooperation. Industry leaders and public figures will discuss how to advance and accelerate public-private collaboration on critical issues such as COVID-19 vaccination, job creation and climate change, among others, according to the WEF. While the WEF annual meeting for 2021 will be held during May 13-16 in Singapore, the high-profile summit will return to Davos in 2022. The conclusions from the Davos Agenda week will feed into task forces working on global issues for the upcoming Special Annual Meeting in Singapore, the WEF said.

Karnataka HC rejects MML’s counterclaim of over Rs 1,100 crore against JSW Steel

24 Jan, 2021, 05:06PM | Economic Times

Mumbai: The Karnataka High Court has rejected a Mysore Minerals ( MML ) plea to add a counterclaim of about Rs 1,172.79 crore to a petition of JSW Steel , which is seeking a refund of about Rs 272 crore from the state-owned company. “The subject application of the respondent (MML) seeking leave to amend the written statement for introducing the counterclaim is dismissed,” Justice Krishna S Dixit said in a January 13 order, which came as a major relief to the Sajjan Jindal-owned JSW Steel. The judge also asked the lower court to pass an order in the original case within a year. “The respondent’s (MML) contention that he has already laid the foundation for the filing of counterclaim in the original written statement itself, places into insignificance since what the law of limitation bars is the remedy and not the grounds on which it is founded,” the court said in a 19-page order. “In other words even if the respondent had taken up all the grounds in his written statement as filed originally, a prayer for counter decree cannot be belatedly superadded once the same becomes time-barred.” JSW Steel had originally filed a plea to claim the refund of excess premium of about Rs 272 crore paid by it in lieu for supply of iron ore. The company had entered into two lease-cum-sale deeds with the state government in 2006 for expansion of its integrated steel plants. However, when the Supreme Court banned mining operations in Karnataka in 2011, this memorandum of understanding MoU was kept on hold, leading to a dispute between JSW Steel and MML. The case dates back to 2012, JSW Steel had approached the court. MML filed its response in the beginning of 2013. Subsequently, MML sought the court’s permission in 2016 to amend its response and file a counterclaim against JSW Steel for Rs 1172.79 crore along with 18% interest. The counsel for JSW Steel opposed the counterclaim saying, “A counterclaim is nothing but a ‘deemed suit’ for all practical purposes and therefore it is bound by the same limitation period,” argued the counsel for the Jindal owned company. Under the Code of Civil Procedure ( CPC ), the parties can amend their reply within 90 day. The law allows addition of facts which are related to the case only. MML had entered into the Memorandum of Understanding (MoU) to provide uninterrupted iron ore supply to JSW Steel in 1995. “Around 2012, when JSW Steel approached the court seeking refund of Rs 272 crore from MML, two lease-cum-sale deeds of the lands allotted to JSW in 2006 for expansion of its integrated steel plant came up for the execution of absolute sale deeds, spokes were put in the wheel of execution,” said a person privy to the development, who did not wish to be identified. According to Ashish K Singh, managing partner of law firm Capstone Legal, commercial cases see a counterclaim more often than not and companies should keep in mind the limitation period for filing such claims along with the written statement. The court was emphatically clear that time barred claims will not be entertained. “Applications for amendment take up a lot of court’s time and delay the trial. I believe this judgment would send a clear message that courts will not entertain unnecessary applications,” said Singh.

Hold back basic customs duty on solar equipment in Budget: Developers

24 Jan, 2021, 12:09PM | Business Standards

Solar power developers in the country have demanded that the government should hold back the imposition of basic customs duty (BCD) on solar equipment for the time being in the forthcoming budget. They fear that this could derail the government's ambitious target of having 175GW renewables by 2022, requiring an investment flow of Rs 1.75 lakh crore. According to industry estimates, as much as Rs 1.75 lakh crore investment is required to bid out 35GW of renewable energy capacity in the country. About 50 GW of clean energy is under implementation, while India has already installed over 90GW renewables, including 37GW of solar and 38GW of wind energy. India has an ambitious target of having 175GW of renewable energy capacity by 2022, including 100GW of solar and 60GW of wind energy. Finance Minister Nirmala Sitharaman would propose the General Budget on February 1. Earlier in June last year, Power Minister R K Singh had clearly indicated about the government's intent to impose basic customs duty on solar equipment and also reiterated that again. Talking to PTI, Director-General Solar Power Developers Association (SPDA) Shekhar Dutt said: "There is a need to postpone BCD on solar modules till domestic manufacturers mature. Considering the present disruption of the supply chain due to the COVID-19 pandemic, dependence on importing modules must be reduced, precisely targeted through the Government of India through its Atmanirbhar initiative." However, he said that developing sufficient R&D in solar and manufacturing efficient modules domestically at competitive prices, which are at par with imported modules, needs adequate time. "Imposing BCD in the intervening period will be counterproductive. Solar power developers will have to import modules to meet contractual obligations at a much higher price in the absence of necessary domestic capacity," he pointed out. The SPDA is also worried about an abrupt increase in the unforeseen prices of metal and alloys, making the (solar) project unviable. Dutt said the global market's steel prices have increased significantly due to the trade war between China and Australia. India's government has always protected domestic Indian steel producers' interest from importing steel through tariff barriers and other states' concessions. However, he said that given the increased global price realisation, the Indian steel producers have resorted to profiteering and taking advantage of the situation through cartelisation, which can be noticed by the alarming increase in the domestic steel prices for HRC and Galvalume steel (used in MMS structures). He suggested a suitable mechanism like export restrictions be devised to dissuade the firms from indulging in such behaviour. The SPDA also wants relaxation in GST (goods and services tax) rate on Solar PV Projects. The government has intended to simplify the tax structure for the Renewable Energy sector; however, under the current tax regime, the solar power projects, the breakup considers 70 per cent of gross consideration as 'value of supply of goods' attracting 5 percent of GST and remaining 30 per cent as 'value of services attracting 18 per cent GST. The effective tax rate thus comes out to be around 8.9 per cent. The deemed ratio of 70:30 reflects only the industry average is incorrect as a proportion of the Solar Power project's goods is almost 90 per cent. Dutt said: "It is pertinent to mention that any taxes, duties like GST that is imposed by the government in fact result in increase in generation cost of electricity. This in turn causes a cascading increase in the manufacturing or cost of living. And, therefore, is counter-productive to national growth. Hence, we request for rationalisation of tax rate and the imposition of 5 per cent tax across the board." Last year, the government announced a liquidity infusion scheme for cash strapped discoms worth Rs 90,000 crore, which was expanded to Rs 1.2 lakh crore later. The funds were to be released in two equal tranches. Dutt suggested that the second tranche of the scheme should also be released as soon as possible. He also made a case for a mechanism so that pending due are given directly to Generators by the government. He asked for expediting the passage of the Electricity (Amendment) 2020 Act. Discom reforms envisaged through amendments proposed in 2020 are still pending. Indian Wind Turbine Manufacturers Association (IWTMA) Chairman Tulsi Tanti said that the body has asked for restoration of accelerated depreciation at the rate of 80 per cent for windmills and solar projects especially for MSME (micro small and medium enterprises). He has also urged the government that the generation and distribution of power through renewable energy devices should be added as a specified business under section 35AD (of income tax act) similar to an infrastructure facility. He also asked to remove the restrictions on Balsa imports, which is the raw material for wind turbines' rotor blades. The IWTMA has also urged to stop dumping of cheaper imported goods and to encourage DTA(domestic tariff area) buyers to buy their inputs from local SEZ (special economic zone) units (rather than importing the same), saying it is necessary to reduce the applicable customs duty on clearance of goods from SEZ to DTA from an average of 7.5 per cent to 1 to 2 per cent only. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

SAIL planning to set up India's first gas-to-ethanol plant in Chandrapur

24 Jan, 2021, 11:56AM | Economic Times

New Delhi: SAIL with the help of the Centre is planning to set up India's first gas to ethanol plant at its ferro alloy plant in Chandrapur in Maharashtra, according to an official. Mukesh Kumar , the Director of Steel Research & Technology Mission of India (SRTMI) told that the plan is in line with the government's aim to reduce the country's dependence on import for crude oil besides addressing the issue of carbon emissions. SRTMI is facilitating SAIL in setting up the gas-to-ethanol plant. It would cost around Rs 400 crore for SAIL to set up the plant, of which 20 per cent "viable gas funding" or aid will be provided by the government under the National Policy on BioFuels 2018. SRTMI is a collaborative research platform formed jointly by the steel ministry and domestic steel players which facilitates research and development (R&D) in the iron and steel sector by strengthening association among industry, academia and research bodies. "This would be the fourth such plant in the world in the steel sector, and overall the first in India. As of now the bio-ethanol fuel generation technology is being used at two plants in China and one at ArcelorMittal 's plant in Belgium," he said. SAIL's Chandrapur Ferro Alloy Plant (CFP) is the only public sector unit engaged in production of manganese based ferro alloys in the country. CFP has an installed capacity of 1,00,000 tonne per year (TPY) ferro manganese. Explaining about the new technology, Kumar said it captures the hot gases like carbon dioxide, carbon monoxide and hydrogen that emit from the ferro alloy plant's submerged arc furnace and convert these into ethanol using fermentation technology. The government has asked SAIL to prepare and submit a detailed project report (DPR) on the project, and SRTMI will facilitate SAIL in the project, he said while replying to a question related to the timeline for setting up the project. The official said there is a scope to produce 50,000 litre a/day of ethanol from about 10,000 normal meter cube (nmc) per hour gas produced at Chandrapur. An email sent to SAIL seeking its response remained unanswered. Steel Authority of India Ltd (SAIL), under the Ministry of Steel, is the country's largest steel-making company having an installed capacity of about 21 million tonne per annum ( MTPA ).

Apple and Tesla earnings, along with the Fed and GDP will drive markets in the week ahead

23 Jan, 2021, 04:56AM | CNBC

A Chinese customer walks by a large screen at the official opening of the new Apple Store in the Sanlitun shopping area on July 17, 2020 in Beijing, China.Kevin Frayer | Getty Images Stimulus euphoria may be waning, but investors will have plenty to focus on in the week ahead, as a blast of earnings news hits, the Federal Reserve meets and new data will show the state of the economy at the end of the year.Stocks gained in the past week on optimism for a $1.9 trillion stimulus package, proposed by President Joe Biden. But by Friday, the market lost steam amid increased concerns about the pandemic's economic impact, and as it seemed Biden would not have an easy time getting the stimulus plan approved.Apple, Facebook, Microsoft, Tesla and more than 100 other S&P 500 companies report earnings in the biggest rush of earnings reports this quarter. VIDEO2:4702:47Cramer breaks down analysts' pre-earnings Apple callsSquawk on the Street The pandemic will also be a factor as travel restrictions and lockdowns threaten the global economy, and worries remain over the speed of vaccine distributions.But there is hope that Johnson and Johnson will release positive news on its vaccine results soon, and if that's the case it could signal another source of vaccines will be available. The J&J vaccine would be a single shot, as opposed to the currently available double-shot vaccines."We expect to see their results," said Art Hogan, chief market strategist at National Securities. "That could be super bullish." The company reports earnings on Tuesday.Hogan said the market may also respond to Covid news. He said the seven-day average in new Covid cases fell below the 14-day average this past week for the first time since Thanksgiving, and if that continues, it could indicate a peak.If the virus news improves, the market could resume its grind higher in the coming week, said Hogan. Economy As for the economy, the first look at fourth quarter real gross domestic product comes Thursday, and it is expected to show growth of 4.7%, according to the CNBC/Moody's Analytics Rapid Update survey. For the year, the economists surveyed expect GDP contracted by 3.5%. The economists forecast 5% growth for 2021.Consumers pulled back at the end of the fourth quarter, evidenced by a surprise 0.7% decline in December retail sales reported this past week, after a negative November."You're really going to see a loss of momentum throughout the quarter," said Kevin Cummins, chief U.S. economist at NatWest Markets. "It's a set up for a really weak Q1." PMI data shows manufacturing activity has been strong, but labor market data is weak and consumer spending is disappointing."You've got to juxtapose what's happening with the vaccine and the virus with what's happening with underlying data. We've definitely seen a lot of the things that could spark a pullback," said Lori Calvasina, chief U.S. equity strategist at RBC.Calvasina and other strategists expect a sell-off early in the year.Stocks hit new highs across the major indices Wednesday, as Biden was inaugurated, and many technicians see the market as overbought. The catalyst for a pullback is not clear, but strategists expect the market to gain this year and say a buying opportunity would open up with any decline."Do we start to see stuff showing up in that data that makes us question that recovery?" said Calvasina. "My assumption is we're going to get a lot of volatility in that data, and we're going to get some downdrafts but it's not going to be bad enough to erase this upward trajectory we've seen in the economy since the second quarter." Fed ahead The Fed is also a powerful backstop for the market, and economists don't expect the Fed to take any action or change in its dovish tone when it releases its statement Wednesday afternoon, following its two-day meeting."I don't see them making many changes," said Cummins of NatWest. "They'll probably acknowledge just the fact that employment was weak."It's going to be pretty clear cut," he added. "I think Powell will sound similar to what he sounded like in September." Cummins said the Fed chairman is likely to say the economic outlook depends on the course of the virus and vaccine.There is also durable goods data Wednesday and personal income and spending data on Friday. The Fed's favorite inflation gauge, the PCE deflator is also released Friday, and Powell will surely be asked Wednesday afternoon about inflation, which is increasingly being priced into market expectations.Powell is also likely to be asked his views on fiscal stimulus, which could end up being smaller than some expect.Hogan of National Securities said the market traded lower on Friday on expectations the package could be smaller and take longer than expected to gain approval."I think the realism of saying $1.9 trillion and doing $1.9 trillion are two different things," he said. "We fall into that trap all the time.""What's happening now is there is no magic wand here," Hogan added. "It's not to say there's no stimulus. It's just a matter of how long it will take and how much there will be. There's a little bit of realism." Bitcoin vs stocks Strategists say the trigger for a sell-off could be just about anything. Zoom In IconArrows pointing outwards Matt Maley, chief market strategist at Miller Tabak, said a pullback could be sparked if bitcoin starts to fall more sharply, since some investors would sell stock in response. "When there's no bid in bitcoin they have to sell something, and they sell stock," said Maley.Bitcoin has had a wild early ride in 2021. The cryptocurrency hit aÂ record highÂ of $41,973 on Jan. 12, according to data from Coin Metrics. Days later, it fell about 15%,Â wiping out as much as $200 billion in just 24 hours.Bitcoin then regained some of its losses, surging to near $40,000 before another reversal. On Friday, it was trading at $33,200 after dipping below $30,000."If this thing starts tanking again, it's going to cause some forced selling and it's going to cause some selling in the stock market," said Maley, adding it will be important to hold the low from Thursday night. Zoom In IconArrows pointing outwards He said the short position in the dollar is also an overcrowded trade that could turn quickly. A resulting short squeeze could cause a dollar rally that would be negative for the stock market. He also is watching Tesla, which reports earnings on Wednesday."I think whether it be bitcoin, the dollar, Tesla, one of these crowded trades...it's going to turn the narrative that's permeating right now, and if we don't get a surprise the market will continue to push higher," he said. Week ahead calendar MondayEarnings: Kimberly-Clark, Yamana Gold, Steel DynamicsTuesdayFOMC meeting beginsEarnings: Microsoft, 3M, Johnson & Johnson, American Express, Starbucks, Raytheon, Verizon, Texas Instruments, Lockheed Martin, UBS, D.R. Horton, General Electric, Novartis, UBS, Freeport-McMoRan, Paccar, Capital One, Advanced Micro Devices9:00 a.m. S&P/Case-Shiller home prices9:00 a.m. FHFA home prices10:00 a.m. Consumer confidenceWednesdayEarnings: Facebook, Apple, Tesla, AT&T, Boeing, General Dynamics, Whirlpool, Norfolk Southern, Blackstone, Nasdaq, Anthem, Abbott Labs, Textron, Corning, Hess, VF Corp, Samsung, Teradyne, Canadian Pacific Railway, Raymond James, Levi Strauss8:30 a.m. Durable goods2 p.m. Fed rate decision2:30 p.m. Fed Chairman Jerome Powell briefingThursdayEarnings: McDonald's, Dow, Visa, Mondelez, Northrop Grumman, Comcast, Mastercard, PulteGroup, Southwest Air, Altria, American Airlines, JetBlue, T.Rowe Price, McCormick, Brunswick, Marsh and McLennan, Sherwin-Williams, Stanley Black and Decker, Canon, Valero Energy, Beazer Homes8:30 a.m. Initial jobless claims8:30 a.m. Q4 Real GDP10:00 a.m. Advance economic indicators10:00 a.m. New home salesFridayEarnings: Chevron, Caterpillar, Colgate-Palmolive, SAP, Eli Lilly, Honeywell, Weyerhaeuser, Synchrony Financial, Booz Allen, LyondellBasell, Church and Dwight8:30 a.m. Personal income and spending9:45 a.m. Chicago PMI10:00 a.m. Pending home sales10:00 a.m. Consumer sentiment

After the high, a big fall: Sensex's 11-week winning streak ends

23 Jan, 2021, 01:35AM | Business Standards

The Indian markets on Friday posted their biggest single-day fall in a month amid a slide in global equities and sell-off in the banking space. Most global stocks dropped, with investors pruning their bullish bets as rising Covid-19 cases sparked concerns about corporate earnings and economic revival. The dollar strengthened and yields rose due to inflation expectations. The benchmark Sensex finished at 48,878.5, down 746 points, or 1.5 per cent, ending its 11-week gaining streak. The Nifty closed at 14,372, down 218 points, or 1.5 per cent -- the most since December 21. FPIs sold shares worth Rs 636 crore, while domestic investors pulled out Rs 1,290 crore. The Bank Nifty index plummeted 3.2 per cent after Bandhan Bank’s jump in provisions and deterioration in asset quality spooked investors. Shares of Reliance Industries fell 2.3 per cent ahead of the December quarter results announcement and dragged the Sensex lower by 143 points. The stocks of Axis Bank, State Bank of India, and ICICI Bank fell over than 3.4 per cent each. Shares of metal companies also plunged, with SAIL dropping 10 per cent and Jindal Steel and Hindustan Copper falling over 5 per cent each. ALSO READ: Reliance Industries Q3 consolidated PAT at Rs 13,101 cr, up 12.5% YoY The fall in the markets was cushioned by gains in Bajaj Auto, Hindustan Unilever, and TCS. Shares of Bajaj Auto jumped over 10 per cent after it posted a better-than-expected rise in profits for the December quarter. A day earlier, the Sensex had vaulted past the historic 50,000-mark, but failed to hold the gains as investors judged recent gains as excessive. Since November, the Indian markets have rallied more than 25 per cent amid record inflows by foreign investors. Since the March 2020 lows, the benchmark indices are up more than 90 per cent. Not just India, but a slew of emerging markets also posted record highs this week on hopes of another round of stimulus in the US under the Joe Biden presidency. Already, the dovish outlook adopted by major central banks has helped fuel an unprecedented appetite for risk assets. Earlier this week, US Treasury Secretary-designate Janet Yellen urged the Congress to “act big” on spending to shore up economic growth, while defending Biden’s $1.9 trillion coronavirus spending plan. The former Fed chair’s comments gave more fodder to the bulls to take stocks higher. ALSO READ: Covid-19 cess, higher spending: Brokerages' expectation from Budget 2021 Market players said domestic investors could keep position light ahead of the Union Budget on February 1. Besides, Budget cues investors will keenly eye results announcements. Nine of the 12 Nifty50 companies that have declared their results for the December quarter surpassed analyst estimates.

Tata Motors to hike prices of passenger vehicles by up to Rs 26,000

22 Jan, 2021, 07:45PM | Business Standards

Tata Motors on Friday increased the prices of its passenger vehicle range. The prices have risen up to Rs 26,000, depending on the variant. The company said in a statement that it will offer protection from higher prices to customers who have booked Tata passenger vehicles on or before January 21. Tata Motors had earlier increased prices of its commercial vehicle range from January 1. The company said increase in cost of raw materials such as steel, metals and semi-conductors compelled it to raise the prices of its vehicles. Market leader Maruti Suzuki also increased prices from January 10. Raw material costs are hardening with the full impact of cumulative increases to be felt in Q4 of this financial year. Steel, aluminium, copper and rubber — key inputs for the auto industry — are all headed north. Automakers also do not have much room left to absorb the hike in input cost because of losses incurred in the first two quarters of the fiscal year following the coronavirus outbreak. Companies had registered zero sales in April and May due to the lock down induced by the government to counter the corona virus pandemic.

Tata Motors hikes prices of passenger vehicles by up to Rs 20,000

22 Jan, 2021, 07:41PM | Business Standards

Tata Motors on Friday said it has increased prices of its passenger vehicle (PV) range by up to Rs 20,000 to offset rising input costs and semiconductors. The company joins others like Maruti Suzuki and Mahindra & Mahindra, which have also hiked their vehicles' prices. "Rising input costs and material costs of steel, precious metals and semiconductors have compelled the company to pass on the part of the cost to customers," Tata Motors said in a regulatory filing. The company further said, "Tata Motors has marginally increased prices from 0 to Rs 26,000, depending on the variant. Continuing its commitment towards customers, the company will also offer protection from the price increase to customers who have booked Tata passenger vehicles on or before January 21, it added. Tata Motors currently sells PVs ranging from hatchback Tiago with starting price of Rs 4.7 lakh to SUV Harrier tagged at Rs 19.1 lakh (ex-showroom Delhi). Tata Motors said its PV business has been witnessing strong demand for its 'New Forever' range of Cars & SUVs and grew by 39 per cent in financial year 2021 over financial year20. In the third quarter of financial year 2021, Tata Motors also registered the highest ever sales in the last 33 quarters and continues to work on debottlenecking the supply chain and ramping up its output to meet the increased demand, it added. On Monday, Maruti Suzuki India had said it increased the price for select models by up to Rs 34,000 to offset the adverse impact of rising input costs. Earlier this month, Mahindra & Mahindra announced a hike in prices of its range of personal and commercial vehicles by around 1.9 per cent. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Sensex, Nifty posts biggest monthly drop on global cues, weaker bank stocks

22 Jan, 2021, 06:32PM | Business Standards

Domestic markets posted their biggest single-day fall in a month on Friday amid a slide in global equities and selloff in banking shares. Most global stocks dropped as investors pruned their bullish bets as rising covid-19 cases sparked concerns over corporate earnings and economic revival. The dollar strengthened and yields rose due on inflation expectations. The benchmark Sensex finished at 48,878.5, down 746 points, or 1.5 per cent—ending its 11-week gaining streak. The Nifty closed at 14,372, down 218 points, or 1.5 per cent—most since December 21. The Bank Nifty index plummeted 3.2 per cent after Bandhan Bank’s jump in provisions and deterioration in asset quality spooked investors. Shares of Reliance Industries fell 2.3 per cent ahead of December quarter result announcement and dragged the Sensex lower by 143 points. Shares of Axis Bank, State Bank of India and ICICI Bank fell over than 3.4 per cent each. Shares of metal companies also plunged as with SAIL dropping 10 per cent and Jindal Steel and Hindustan Copper falling over 5 per cent each. The fall in the market was cushioned by gains in Bajaj Auto, Hindustan Unilever and TCS. Shares of Bajaj Auto jumped over 10 per cent after it posted better-than-expected jump in profits for the December quarter. A day earlier, the Sensex had vaulted past the historic 50,000-mark. However, failed to sustain on to the gains as investors judged recent gains as excessive. Since November, the Indian markets have rallied more than 25 per cent amid record inflows by foreign investors. And from the March lows, the benchmark indices are up more than 90 per cent. Not just India, but a slew of emerging markets posted record highs this week on hopes of another round of stimulus in the US under the Joe Biden presidency. Already, dovish outlook adopted by major central banks has helped fuel an unprecedented appetite for risk assets. Earlier this week, Treasury secretary-designate Janet Yellen urged the Congress to “act big” on spending to shore up economic growth, while defending President Biden’s $1.9 trillion coronavirus spending plan. The former Fed chair’s comments gave more fodder to the bulls to take stocks higher. Market players said ahead domestic investors could keep position light ahead of the Union Budget on February 1. Besides, budget cues investors will keenly eye result announcements. Nine of the 12 Nifty 50 companies that have declared their results for December quarter surpassed analyst estimates.

JSW Steel's net profit jumps manifold to Rs 2,669 cr in Dec quarter

22 Jan, 2021, 05:24PM | Business Standards

JSW Steel on Friday reported a manifoldjump in its consolidated net profit to Rs 2,669 crore for the December 2020 quarter. The private sector steel maker had clocked a net profit of Rs 187 crore in the corresponding quarter of the previous financial year, JSW Steel said in a BSE filing. Its total consolidated income during October-December 2020 rose to Rs 22,006 crore, compared with Rs 18,182 crore in the year-ago period. The company's total expenses stood at Rs 18,120 crore, higher as against Rs 17,719 crore a year ago. Part of O P Jindal Group, JSW Steel has presence in sectors such as steel, energy, infrastructure, cement and sports. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

US President Biden halts border wall building after Trump's final surge

22 Jan, 2021, 02:58PM | Business Standards

In the days before Joe Biden became US president, construction crews worked quickly to finish Donald Trump's wall at an iconic cross-border park overlooking the Pacific Ocean, which then-first lady Pat Nixon inaugurated in 1971 as a symbol of international friendship. Biden on Wednesday ordered a pause on all wall construction within a week, one of 17 executive orders issued on his first day in office, including six dealing with immigration. The order leaves billions of dollars of work unfinished - but still under contract - after Trump worked feverishly last year to build more than 450 miles (720 km), a goal he said he achieved eight days before leaving office. As of January 15, the government spent $6.1 billion of the $10.8 billion in work it signed contracts to have done, according to a Senate Democratic aide with knowledge of the contracts who spoke on condition of anonymity because details have not been made public. The full amount under contract would have extended Trump's wall to 664 miles (1,069 km). Biden, seeking to fulfil a pledge not to build another foot, gave his administration two months to determine how much it would cost to cancel contracts and whether money could be spent elsewhere. The Senate aide said fees would be negotiated with contractors and the administration would seek to spend whatever's left on related uses on the border, such as roads, lights, sensors and other technology. Publicly, the Trump administration said it secured $15 billion for the wall. The Senate aide said it was actually $16.45 billion as of Wednesday, $5.8 billion of which was appropriated by Congress and the rest diverted from the Defence and Treasury departments. The Trump administration notified the Senate aide on January 14 that it was moving ahead with a contract for $863 million, but it was not awarded. The Army Corps of Engineers, which has awarded wall contracts with Defence Department money, said Thursday that it told crews not to install any additional barriers and to limit activity over the next few days to what is necessary to safely prepare each site for a suspension of work. John Kurc, an activist who posts videos of dynamite blasts by wall construction crews, said he saw one dynamite charge being set Wednesday afternoon in Guadalupe Canyon in easternmost Arizona, even as the inauguration was playing out in Washington. Heavy machines have been crawling over roadways gouged into rocky mountainsides, tapping open holes for posts on US Bureau of Land Management property. Advocates in Texas' Rio Grande Valley, the busiest area for illegal crossings, and near Nogales, Arizona, saw idle construction equipment Thursday. But in San Diego, crews were out replacing a steel fence with imposing, tightly spaced poles topped with flat steel plates rising 30 feet (9 metres), said Dan Watman of Friends of Friendship Park, a group that promotes public access to the cross-border park overlooking the Pacific Ocean. Contractors began last week, said Watman, who was informed of the project in a December conference call with Border Patrol agents but got no explanation for it. The agency referred questions to the White House, which had no immediate comment. Trump said the border wall would be virtually impenetrable and paid for by Mexico, which never happened. While the wall is much more formidable than the barriers it replaced, it isn't uncommon for smugglers to guide people over or through it. Portions can be sawed with power tools sold at home improvement stores. Despite Trump's bravado, Border Patrol officials have said the wall was never meant to stop everyone but rather to slow their advance. Jose Edgar Zuleta, whose business selling religious jewelery in the Mexican city of Puebla dried up during the coronavirus pandemic, cleared two walls in Friendship Park in October with a special ladder. He moved through brush in a heavily patrolled area for about half an hour before getting caught. His 21-year-old son, who went ahead of him, got picked up hours later. The cross-border park has hosted yoga classes, concerts and countless news conferences, including one in 2018 with then-Attorney General Jeff Sessions to announce a zero tolerance policy that caused thousands of children to be separated from their parents at the border. Since 2012, after construction of a double wall at the park, the Border Patrol has opened a gate many weekends for up to 10 people at a time to exchange words with those in Mexico. SLSCO Ltd. of Galveston, Texas, won contracts to build double walls blanketing 14 miles (22 km) in San Diego. Company spokeswoman Liz Rogers said work at Friendship Park is separate and done by another company. The Supreme Court is scheduled to hear arguments next month on whether the government' illegally diverted billions of dollars from the Defence Department to build the wall after Congress denied money that Trump sought, triggering a 35-day government shutdown in 2017. It is unclear if Biden will adopt Trump's position before the Supreme Court. The government's brief is due February 11. Mexican President Andres Manuel Lopez Obrador welcomed Biden's decision to stop wall construction but, in defence of Trump, noted that US presidents going back to 1990s built border barriers. He displayed a chart to prove his point.

Iran, pressured by power blackouts and pollution, targets Bitcoin

22 Jan, 2021, 02:51PM | Business Standards

Iran's capital and major cities plunged into darkness in recent weeks as rolling outages left millions without electricity for hours. Traffic lights died. Offices went dark. Online classes stopped. With toxic smog blanketing Tehran skies and the country buckling under the pandemic and other mounting crises, social media has been rife with speculation. Soon, fingers pointed at an unlikely culprit: Bitcoin. Within days, as frustration spread among residents, the government launched a wide-ranging crackdown on Bitcoin processing centres, which require immense amounts of electricity to power their specialised computers and to keep them cool - a burden on Iran's power grid. Authorities shuttered 1,600 centres across the country, including, for the first time, those legally authorised to operate. As the latest in a series of conflicting government moves, the clampdown stirred confusion in the crypto industry - and suspicion that Bitcoin had become a useful scapegoat for the nation's deeper-rooted problems. Since former President Donald Trump unilaterally withdrew in 2018 from Tehran's nuclear accord with world powers and re-imposed sanctions on Iran, cryptocurrency has surged in popularity in the Islamic Republic. For Iran, anonymous online transactions made in cryptocurrencies allow individuals and companies to bypass banking sanctions that have crippled the economy. Bitcoin offers an alternative to cash printed by sovereign governments and central banks - and in the case of Iran and other countries under sanctions like Venezuela, a more stable place to park money than the local currency. Iranians understand the value of such a borderless network much more than others because we can't access any kind of global payment networks, said Ziya Sadr, a Tehran-based Bitcoin expert. Bitcoin shines here." Iran's generously subsidised electricity has put the country on the crypto-mining map, given the operation's enormous electricity consumption. Electricity goes for around 4 cents per kilowatt-hour in Iran, compared to an average of 13 cents in the United States. Iran is among the top 10 countries with the most Bitcoin mining capacity in the world - 450 megawatts a day. The US network has a daily capacity of more than 1,100 megawatts. On Tehran's outskirts and across Iran's south and northwest, windowless warehouses hum with heavy industrial machinery and rows of computers that crunch highly complex algorithms to verify transactions. The transactions, called blocks, are then added to a public record, known as the blockchain. Miners adding a new block to the blockchain collect fees in bitcoins, a key advantage amid the country's currency collapse. Iran's rial, which had been trading at 32,000 to the dollar at the time of the 2015 nuclear deal, has tumbled to around 240,000 to the dollar these days. Iran's government has sent mixed messages about Bitcoin. On one hand, it wants to capitalise on the soaring popularity of digital currency and sees value in legitimising transactions that fly under Washington's radar. It authorised 24 Bitcoin processing centres that consume an estimated 300 megawatts of energy a day, attracted tech-savvy Chinese entrepreneurs to tax-free zones in the country's south and permitted imports of computers for mining. Amir Nazemi, deputy minister of telecommunications and information, declared last week that cryptocurrency "can be helpful as Iran struggles to cope with sanctions on its oil sector. On the other hand, the government worries about limiting how much money is sent abroad and controlling money laundering, drug sales and internet criminal groups. Iranian cryptocurrency miners have been known to use ransomware in sophisticated cyber attacks, such as in 2018 when two Iranian men were indicted in connection with a vast cyber assault on the city of Atlanta. On Thursday, British cybersecurity firm Sophos reported it found evidence tying crypto-miners in Iran's southern city of Shiraz to malware that was secretly seizing control of thousands of Microsoft servers. Iran is now going after unauthorised Bitcoin farms with frequent police raids. Those who gain authorisation to process cryptocurrency are subject to electricity tariffs, which miners complain discourage investment. Activities in the field are not feasible because of electricity tariffs, said Mohammad Reza Sharafi, head of the country's Cryptocurrency Farms Association. Despite the government giving permits to 1,000 investors, only a couple dozen server farms are active, he added, because tariffs mean Bitcoin farms pay five times as much for electricity as steel mills and other industries that consume far more power. Now, miners say, the government's decision to close down major Bitcoin farms operating legally seems designed to deflect concerns about the country's repeated blackouts. Mashhadi, spokesman of Iran's electricity supply department, noting that illegal farms sucked up daily some 260 megawatts of electricity. Although Bitcoin mining strains the power grid, experts say it's not the real reason behind Iran's electricity outages and dangerous air pollution. The telecommunications ministry estimates that Bitcoin consumes less than 2% of Iran's total energy production.

Nifty Metal index slips 4%; SAIL, Jindal Steel tumble up to 14%

22 Jan, 2021, 02:19PM | Business Standards

Shares of metal companies were under pressure at the bourses on Friday, with the Nifty Metal index falling 4 per cent, after share prices of Steel Authority of India (SAIL) and Jindal Steel and Power (JSPL) declined by up to 14 per cent on account of profit booking by investors. At 02:01 pm, Nifty Metal index, the top loser among sectoral indices, was down 4.3 per cent, as compared to 1.4 per cent decline in the Nifty50 index. Welspun Corp, Hindalco Industries, Hindustan Copper and JSW Steel were down 5 per cent in intra-day trade on the National Stock Exchange (NSE). Among individual stocks, SAIL fell 14 per cent to Rs 56 in intra-day trade on back of heavy volumes. A combined 108 million equity shares of the state-owned company have changed hands on the counter on the NSE and BSE. During the current week, the stock has dipped 20 per cent, as compared to a marginal 0.2 per cent decline in the Nifty50 index. Last week, the government had raised nearly Rs 2,500 crore from offloading 10 per stake sale in India's largest steelmaker SAIL through an offer for sale (OFS) which was over-subscribed. The government had set the base price for the OFS at Rs 64 per share. However, most bids came at Rs 66 per share, data provided by stock exchanges showed. Shares of JSPL slipped 8 per cent to Rs 278 as investors booked profit after the company reported a consolidated net profit of Rs 2,432 crore in the quarter ended December 31 (Q3FY21). It had incurred Rs 218.6-crore loss in the corresponding quarter a year ago. Revenue during the quarter grew 45 per cent year on year (YoY) at Rs 10,899 crore, on back of strong performance in India steel as well as power business. The management said that Q3FY21 showed recovery signs for the entire steel industry in India with utilization levels as well as domestic demand rising month-on-month. However, steel industry continues to struggle with raw material scarcity amplified by exponential rise in domestic and international iron ore prices. Iron ore prices have crossed $155 per dmt in December 2020, a level last seen in 2011, amid better Chinese demand and tepid supply due to severe weather conditions and covid induced restrictions in Brazil. Iron ore prices are expected to remain at elevated levels in the near term. This is consequent to the world’s biggest miner Vale in Brazil lowering its production forecast for a second time in 2020 citing heavy rains and delay in obtaining regional licenses to start operations. This would widen the deficit in iron ore market and keep prices at elevated levels as demand for the steelmaking ingredient remains intact, CARE Ratings said in steel sector update. A faster ramp up from mines auctioned in February will remain critical to meet the ever increasing demand for iron ore which has led to surge in prices. Moreover, the government’s stance on steel industry’s demand to ban export of iron ore, a move being strictly opposed by miners, shall remain key monitorable, the rating agency said. After a sharp drop in April-June quarter (Q1FY21), the domestic steel industry has reported sharp rebound in margins in the September 2020 quarter benefiting from improving demand and realizations on the one hand and softer coking coal costs on the other hand. Margins of steel companies are expected to show further expansion in the December and March FY21 quarter, it said.

Stocks to watch: RIL, YES Bank, Vedanta, HDFC Bank, SBI Card, Biocon

22 Jan, 2021, 08:36AM | Business Standards

Nifty futures on the Singapore Exchange traded 58 points down, at 8.25 am on Friday, indicating a weak start for the domestic benchmark indices. Here are the top stocks to track in today's session: Q3 earnings: Reliance Industries, Yes Bank, Gland Pharma, JSW Steel, Oberoi Realty and V-Mart Retail are among 41 companies set to announce their quarterly earnings later today. Driven by a strong rebound in petrochemicals business, and supported by growth in the retail segment, RIL is expected to clock a stellar sequential improvement in its net profit for the December quarter of the current financial year (Q3FY21). READ HERE SBI Card: SBI Cards and Payment Services reported nearly 52 per cent dip in its net profit to Rs 210 crore in the third quarter ended December 2020, on higher provisioning. HDFC Bank: Sebi imposed a penalty of Rs 1 crore on HDFC Bank for invoking securities pledged by stockbroker BRH Wealth Kreators in violation of the regulator's interim directions. Vedanta: Mining giant Vedanta said production of mined zinc in India rose 4 per cent to 2,44,000 tonnes in the third quarter of the ongoing fiscal. South Indian Bank: The private lender posted a loss of Rs 91.62 crore for the third quarter ended December 31, 2020, due to an increase in provisioning for bad loans. The bank had recorded a net profit of Rs 90.54 crore in the corresponding period of the previous financial year. Mphasis: Mphasis' Q3 net profit jumped 10.8 per cent to Rs 325.5 crore for the December 2020 quarter from Rs 293.6 crore in the year-ago period. Zensar: Zensar Technologies' net profit more than doubled to Rs 98.7 crore for the December 2020 quarter vs Rs 38.3 crore in the year-ago period. Its revenue, however, declined 7.7 per cent YoY to Rs 906.5 crore in the quarter. The firm has also declared interim dividend of Rs 1.20 per share of Rs 2 each. Jet Airways: The Jet Airways Aircraft Maintenance and Engineers Workers Association (JAMEWA) has filed an application with the NCLT to expedite the insolvency process of the airlines before the end of this month so that it can get 'summer slots'. MCX India: The Multi Commodity Exchange of India (MCX) reported a 29.20 per cent YoY rise in its consolidated profit after tax (PAT) to Rs 71.80 crore for the December 2020 quarter. Cyient: IT firm Cyient, on Thursday, reported a 11.9 per cent decline in net profit at Rs 95.4 crore for the December 2020 quarter. Its revenue decreased 5.6 per cent to Rs 1,044.3 crore for the period under review. Punjab & Sind Bank: Punjab & Sind Bank reported a fraud of Rs 94.29 crore in an NPA account of Supertech Township Projects. Reliance Power: The company, on Thursday, posted nearly 6 per cent rise in consolidated net profit at Rs 52.29 crore for December quarter 2020 mainly due to higher revenues. Westlife Development: Westlife Development, which owns Hardcastle Restaurants -- the master franchisee of McDonald's for west and south India, reported a 64 per cent decline in consolidated net profit at Rs 8.19 crore for the December quarter. JK Tyre: JK Tyre & Industries reported a multi-fold jump in consolidated net profit at Rs 230.46 crore in the third quarter ended December 31, 2020 riding on robust sales and aided by favourable foreign exchange fluctuations. Transport Corporation of India: The firm will consider interim dividend for FY21 at its board meeting on February 3; record date for which will be February 11, 2021. IEX: Indian Energy Exchange (IEX) posted a nearly 40 per cent jump in its consolidated net profit at Rs 58.14 crore in the December quarter compared to the year-ago period, mainly due to higher revenues. Biocon: Biopharmaceutical major Biocon posted a nearly 19 per cent dip on YoY basis in its consolidated net profit at Rs 186.6 crore for the third quarter of financial year 2020-21, owing to its generics business taking a hit along with headwinds across operational, regulatory and commercial functions. Wipro: The company closed its share buyback offer and completed extinguishment of 23.75 crore shares.

Market Ahead, January 22: All you need to know before the opening bell

22 Jan, 2021, 08:22AM | Business Standards

The BSE barometer Sensex witnessed an anticlimactic end to a historic day on Thursday when it surpassed the 50,000 mark only to end in the red. Going into the trade today, benchmark indices could slip further following weak cues from Asian peers. Meanwhile, stock-specific cues and Q3 earnings will also guide market mood. At 7.10 am, SGX Nifty was trading 35 points lower at 14,608. In the overnight session, the S&P 500 and Nasdaq closed at record highs, up 0.03% and 0.55%, respectively, propelled by optimism about more pandemic relief under the Biden administration. Dow was also poised for a record until falling into negative territory in the final minutes of trading and shed 0.04%. Asian markets, however, pulled back from an all-time high as investors assessed earnings, prospects for stimulus and escalating coronavirus cases. Japan’s Topix index slipped 0.6%, South Korea’s Kospi added 0.1% and Australia’s S&P/ASX 200 Index dropped 0.1%. That apart, cryptocurrency bitcoin extended its slide and fell to an almost three-week low on profit-taking and worries about extra regulation. Bitcoin fell nearly 5% to $29,300 early in the Asia session, its lowest since Jan. 4 and some 30% below its record high of $42,000 hit two weeks ago. Now, a look at the stock-specific developments that are likely to sway the market today: Reliance Industries, Yes Bank, Gland Pharma, JSW Steel, Oberoi Realty and V-Mart Retail are among 41 companies set to announce their quarterly earnings later today. Driven by a strong rebound in petrochemicals business, and supported by growth in the retail segment, RIL is expected to clock a stellar sequential improvement in its net profit for the December quarter of the current financial year (Q3FY21). SBI Cards and Payment Services reported nearly 52 per cent dip in its net profit to Rs 210 crore in the third quarter ended December 2020, on higher provisioning. Sebi imposed a penalty of Rs 1 crore on HDFC Bank for invoking securities pledged by stockbroker BRH Wealth Kreators in violation of the regulator's interim directions. South Indian Bank posted a loss of Rs 91.62 crore for the third quarter ended December 31, 2020, due to an increase in provisioning for bad loans. The bank had recorded a net profit of Rs 90.54 crore in the corresponding period of the previous financial year. Lastly, an update on the primary market, Indigo Paints issue was subscribed 6.97 times on Day 2 of the bidding process. The issue closes today. Meanwhile, the IPO by Home First Finance received 1.04 times bids on the first day of the issue.

Market Ahead, January 22: All you need to know before the opening bell

22 Jan, 2021, 08:00AM | Business Standards

WTO tells US to revise trade measures into line against South Korea

21 Jan, 2021, 09:25PM | Business Standards

BRUSSELS (Reuters) - The World Trade Organization recommended on Thursday that the United States bring a series of duties imposed in the pre-Trump era on South Korea into line with global trading rules. The tariffs on different grades of steel and on large power transformers were inconsistent with WTO rules because U.S. authorities had not correctly used the facts available to calculate the level of dumping or subsidies, the panel found. (Reporting by Philip Blenkinsop; Editing by Gareth Jones) (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

SBI Cards net profit down 52% to Rs 210 crore in Q3, total income dips

21 Jan, 2021, 07:08PM | Business Standards

SBI Cards and Payments Services, the credit card arm of the lender, reported a 52 per cent decline in net profit at Rs 210 in Q3FY21, compared to Rs 434.7 crore in the corresponding period of FY20 due to lower interest income and higher provisions. The company’s interest income declined 9 per cent year on year (YoY) to Rs 1,168 crore in Q3FY21, compared to Rs 1,282 crore in Q3FY20. Revenue from operations was also in the red, declining 3 per cent yoy in the reporting quarter to Rs 2,403 crore. However, total income of the company was down marginally by 1 per cent to Rs 2,540 crore due to robust increase in other income. Impairment losses and bad debts jumped 72 per cent YoY in Q3FY21 to Rs 648 crore. Sequentially, impairment losses and bad debts of the company was Rs 862 crore. Furthermore, total management overlay provision the company is holding is to the tune of Rs 1,113 crore as of December quarter versus Rs 758 crore in the September quarter. ALSO READ: Jindal Steel to enter container making biz to address domestic shortages The reported gross non-performing assets (NPAs) of the company stand at 1.61 per cent in Q3FY21, compared to 2.47 per cent in Q3FY20 and net NPAs stood at 0.56 per cent versus 0.83 per cent. However, the proforma NPAs of the lender would have been as high as 4.51 per cent, if not for the Supreme Court’s interim order on standstill in asset classification of lenders. But, if compared to the September quarter, proforma gross NPAs has come down. In September quarter, proforma gross NPA was 7.46 per cent of advances. On the positive side, new account sourcing has surpassed Q4FY20 levels. In Q3FY21, the company sourced 918,000 new accounts, compared to 688,000 in Q2FY21, and 851,000 in Q4FY20. Similarly retail spends has crossed pre-covid levels and so has corporate spends. Spends witnessed an almost 8 per cent rise to Rs 37,797 crore in Q3FY21, compared to Rs 35,135 core in Q3FY20. However, average spend per card declined YoY in Q3FY21. Receivables for the company has gone up 4 per cent YoY in Q3FY21 but receivable per card has declined, although it has improved from the preceding quarter. Card in force for the company grew 15 per cent in Q3FY21 to 1.15 crore, compared to one crore cards in Q3FY20. It has a healthy capital adequacy ratio of 23.7 per cent at the end of December quarter, with tier I capital at 19.8 per cent.

Sebi nod for Future, Reliance deal subject to court proceedings: Amazon

21 Jan, 2021, 06:39PM | Business Standards

The Securities and Exchange Board of India’s (Sebi) approval for Future Retail’s $3.4 billion deal with Reliance Industries is subject to court decisions, said Amazon on Thursday. The market on Wednesday approved Future Group's scheme of arrangement and sale of assets to Reliance. Based on this, the Bombay Stock Exchange also granted its "no adverse observation" report to the deal. "The letters issued by BSE and NSE (National Stock Exchange) clearly state that comments of Sebi on the ‘draft scheme of arrangement’ (proposed transaction) are subject to the outcome of the ongoing Arbitration and any other legal proceedings,” said Amazon. “We will continue to pursue our legal remedies to enforce our rights." In August 2020, Future Group struck a $3.4-billion asset sale deal with Reliance Industries (RIL). Amazon then sent a legal notice to Future, alleging the retailer’s deal breached an agreement with the American e-commerce giant. ALSO READ: India's secondary steel producers, trade see decline as China price falls Sebi has allowed the deal with some riders. It has reportedly said the litigation pending before the Delhi High Court and arbitration proceedings by Amazon contesting the deal should be specifically mentioned by Future Group while seeking shareholders or the National Company Law Tribunal approval. It has also reportedly held that Sebi's go-ahead on the draft scheme of arrangement would be subject to the outcome of these proceedings. Equipped with the notice from the Delhi High Court, Amazon this month had sent another letter to the Sebi, requesting it not to issue a ‘no-objection certificate’ (NOC) to the Future Retail-Reliance Industries deal and suspend the review immediately. The e-commerce firm has further urged the markets regulator to direct the Indian Stock Exchanges to not to issue no-objection or approval letter to Future Retail. This month it also informed Sebi about the formation of the arbitration tribunal at the Singapore International Arbitration Centre (SIAC). The next phase of arbitration proceedings between Jeff Bezos-led Amazon and Kishore Biyani-headed Future Group is expected to begin soon in Singapore, according to the sources.

A lot of hot air? Investors snap up hydrogen stocks in green frenzy

21 Jan, 2021, 02:31PM | Business Standards

An unprecedented rally in "green" hydrogen stocks looks set to extend as investors flock to companies which promise to produce the gas without using fossil fuels, expecting the technology to scale up over the next 10 years to justify rocketing valuations. Hydrogen is the universe's most abundant element. It is mostly extracted from fossil fuels, emitting carbon dioxide in the process. "Green" or clean hydrogen requires using electrolysis to split water into its components of hydrogen and oxygen and doing so cheaply is often described as the holy grail of green energy transition. Share prices of companies in the industry have soared more than 500% in the past year, driven by the rising adoption of zero-emission vehicles, a deadline set by many countries to go carbon-free by 2050 and lately U.S. President-elect Joe Biden's support for clean energy. Plug Power, Ceres Power and Fuelcell Energy, which make hydrogen fuel cell systems that power devices ranging from warehouse machines to cars, are leading that charge, jumping 400% to 1,600% in the last year. "Hot money is flowing towards renewables and clean energy, and there's been a clear re-rating of valuations in the sector," said Emmanuel Cau, head of European equity strategy at Barclays. While a lot of focus has been on hydrogen's role in the automotive sector, its usage is growing far beyond that. The European Union plans to scale up renewable hydrogen projects across polluting sectors ranging from chemicals to steel with cumulative investments in renewable hydrogen in the region seen reaching up to 470 billion euros ($570 billion) by 2050, the region's commission said. That has fuelled the stocks of electrolyser makers Norway's Nel and UK's ITM Power. "The momentum just keeps going really with this theme," Ashim Paun, HSBC's global co-head of climate change and ESG research said on a webinar. ZeroAvia, a hydrogen plane startup, last month secured $37.7 million in new cash via a funding round led by Bill Gates' Breakthrough Energy Ventures and from the British government to support its bid to develop zero-emission aircraft. The frenzy in hydrogen-related stocks has led to some concerns about a bubble, with companies trading at extreme prices based on expectations that their revenue will surge in future, despite worries about possible headwinds for the sector. Widespread adoption of hydrogen as a fuel for cars is far from a given. Toyota launched a new hydrogen fuel cell car in December, but it has largely failed to win customers over to the technology amid concerns about a lack of fuelling stations, resale values and the risk of hydrogen explosions. The momentum behind electric vehicles may be another headwind, said Jonathan Bell, chief investment officer at Stanhope Capital. "The problem with hydrogen is that sometimes when you have two competing systems, it's not the better technology that wins, it's the one that gets market share and the network effect first of all," Bell said. UK-based ITM Power, which manufactures the electrolysers needed to make green hydrogen, is trading at a massive seven times its 2030 sales, while rival Nel is relatively cheap at three times 2030 sales, according to HSBC's calculations. Some investors may avoid the sector altogether, after a similar burst of enthusiasm two decades ago proved short-lived, and much of the latest excitement around green energy is based on Biden's policy plans, which are yet to be passed into law. But no bank is ringing the alarm bells, yet. JP Morgan analysts advised long-term investors in a recent note to take advantage of any pullback in prices and "take an unorthodox approach to valuation for the next several years" - in other words, not worry about a potential bubble. Sean McLoughlin, HSBC EMEA head of industrials research, said scarcity value in the market, unprecedented fiscal stimulus, low cost of capital and debt and low yields in other asset classes mean the hydrogen market's valuation may be justified though he cautioned it was at a "potentially fraught level." "There's a lot of capital that is very ESG-focused chasing a select number of companies that offer this kind of pure play exposure to these future energy trends. So there is a risk that this may unwind." ($1 = 0.8258 euros)

India ready to play 'constructive role' in UNSC to end Syrian conflict

21 Jan, 2021, 06:54AM | Business Standards

Hoping that conflict in Syria will end completely, sooner than later, India on Wednesday said that it is ready to play a "constructive and meaningful" role in the United Nations Security Council (UNSC) towards achieving that objective. During a UNSC briefing on Syria, TS Tirumurti, Indian Permanent Representative to the United Nations, said it is "disheartening" to note that the ongoing crisis in Syria still has no end in sight and called on the international community to provide assistance to Syria for rebuilding its infrastructure. New Delhi asserted that terrorism emanating from Syria has spread far even reaching parts of Africa and the humanitarian situation has worsened in the country. "As we begin our new Council term eight years later, it is indeed disheartening to note that the ongoing crisis in Syria still has no end in sight and the political process is yet to take off. The conflict has become even more complex with the involvement of regional players," Tirumurti said. "Terrorism emanating from Syria has spread far, even reaching parts of Africa. Foreign fighters involved in the Syrian conflict have also moved to other places as mercenaries. The humanitarian situation has worsened, further exacerbated by the COVID-19 pandemic," he added. Tirumurti said the fact that the conflict has been so long-drawn and intractable, points to the inevitability of a Syrian-led and Syrian-owned political process, preserving the unity, sovereignty and territorial integrity of Syria. Syria's civil war began during the Arab Spring in 2011 as a peaceful uprising against the country's president, Bashar al-Assad. It has since escalated -- shattering the lives of Syrians, destroying cities, straining global politics, and spurring diplomatic efforts that are constantly questioned as the world is witnessing the horrors of ongoing warfare. "We hope that the conflict in Syria will end completely, sooner than later, and the reconstruction of Syria will begin so that Syria reclaims its place in the comity of nations as well as its historic role in the Arab world. Towards this objective, India is ready to play a constructive and meaningful role in the Council," the envoy said. The envoy expressed concern that hostilities in other parts of the country have continued unabated, adding that the prices of fuel and bread have doubled, the Syrian pound has devalued in the last two months. "The presence of foreign terrorist fighters, along with continued terror activities, has worsened the situation on the ground. It is imperative that all parties must adhere to their international obligations to fight terrorism and terrorist organisations in Syria, as designated," he said. "We call on the international community to provide assistance to Syria in rebuilding its infrastructure, safeguarding people's livelihoods and fighting COVID-19. In this situation, compounded by both economic and humanitarian crises, we should be sensitive to the debilitating impact that sanctions continue to have on the lives of the common people of Syria," he added. India, Tirumurti said, supports the UN continuing its humanitarian relief operations through all possible channels, with the cooperation of the Syrian Government. "In this regard, it is important to delink humanitarian assistance from progress on the political track. We believe that the noble and necessary cause of humanitarian assistance should always be bereft of politics," he added. Since the conflict broke out in 2011, India has provided USD12 million as humanitarian assistance to the Syrian government through bilateral and multilateral channels, Tirumurti apprised the council. Furthermore, India has set up a biotech park and an IT Centre and extended USD 265 million in lines of credit for projects in the steel and power sectors. In July 2020, in order to help Syria fight the COVID-19 pandemic, New Delhi sent a gift of 10 metric tonnes of medicines to Damascus. "We also organised an artificial limb fitment camp in Damascus during December 2019 - January 2020, which benefited over 500 Syrians. We have also provided 1000 scholarships for Syrian students to study in India. As Syria's reliable and long-lasting friend, India stands ready to continue to render all possible help and support to the Syrian people," the envoy said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

From Hawick to Hawick: The story of The Economist founder James Wilson

20 Jan, 2021, 11:20PM | Business Standards

In May 2019, a 12-foot statue was reinstalled in Hawick, a small Scottish town with population below 14,000. Sculpted in 1863 in Edinburgh by John Steell, Queen Victoria’s official sculptor, it came from a single block of carrara marble. So restored to a due honour was James Wilson, the first finance member of the Viceroy’s Executive Council, who presented India’s first Budget in 1860. Born into a Quaker family in 1805, fourth among 15 siblings, Wilson wanted to study law, but the Quaker tradition frowned upon the profession. He became an apprentice to a hat manufacturer, spending his nights reading economics and other subjects. Wilson’s father, a woollen manufacturer, purchased the firm for him and a brother. Having outgrown Hawick, the brothers moved their business in 1824 to London, where it flourished. In 1839, Wilson published Influences of the Corn-Laws, the first of his pamphlets, crusading for free trade. In September 1843, he established The Economist to campaign for abolishing the Corn Laws. In 1844, he retired from business, to expand his magazine. He wrote most of the lead articles. It soon became quite influential, as it continues to be today. To support The Economist with the benefit of political office, Wilson contested and was elected to the House of Commons in 1847. He made such a good impression that within six months, Prime Minister John Russell made him a secretary of the Board of Control, which oversaw the East India Company. He continued there till February 1852. Introduction of railways in India, against stiff opposition, was one area where Wilson played a role. Foreseeing the decline of the East India Company, Wilson mooted a Chartered Bank of India, Australia and China, to control banking in the East. The prospectus was published in The Economist. The bank would merge in 1969 with the Standard Bank, of South Africa, to become Standard Chartered Bank. In January 1853, he became financial secretary to the Treasury for five years. This stint established Wilson’s reputation as a financial administrator. A self-taught economist, his business success, remarkable memory, influential articles, ability to simplify complex issues, balanced judgement and quick decisions combined to build his reputation. In June 1859, Wilson became vice-president of Board of Trade, paymaster general, and a privy councillor. He was soon identified to become the first finance member of the Viceroy’s Executive Council India, to put order into chaos. Wilson was reluctant. He was expecting a Cabinet position, and was concerned about The Economist. He finally relented as a sense of duty. Walter Bagehot, who had married Wilson’s eldest daughter, was put in charge of The Economist. Bagehot would later author, among other classics, Lombard Street: A Description of the Money Market (1873), his lasting contribution to central banking. Wilson left England on October 20, 1859. Soon after reaching Calcutta in December, Wilson travelled up to Lahore, meeting with revenue officials on the way, deciding “it was a fine country to tax.” His plan of putting order into chaos involved five points. First, taxing the trading classes. Second, a government paper currency. Third, reform of the financial system with budgets and estimates, a Pay Department, and audit. Fourth, a civil police. Fifth, public works and roads. Wilson would claim great progress in the first four. He also set up a Military Finance Commission and a Civil Finance Commission. Wilson presented his Budget — India’s first — on February 18, 1860, and a Minute detailing the paper currency framework, completed with his idea of currency circles, on March 3. He rationalised various duties, and announced an income tax, licence tax and tobacco duty. The taxes were to remain stable for five years. It was so well received for ending uncertainty in taxation that Wilson called himself “the most fortunate of tax-gatherers”. The dissenting voice came from Charles Trevelyan, governor of Madras, who made public his disapproving Minute. He was promptly recalled for insubordination. But, the damage was done. Charles Canning forced Wilson to drop the licence tax and tobacco duty. A disappointed Wilson would say: “Firmness and justice are the only policy for India: no vacillation, or you are gone. They like to be governed; and respect an iron hand, if it be but equal and just.” Wilson compared the Indian exchequer to a huge machine, the English treasury being nothing in comparison for complexity, diversity, and remoteness of points of action. He assessed the Indian administration as follows: “Time, distance, and divided authority, with the sacrificing consequences of procrastination and shirking responsibility and the tendency to get rid of difficulties by compromise or delays are fatal elements in the character of the Government of India.” The increasing heat, fallout from the Trevelyan affair, and hard work, took a toll on Wilson. His wife and daughters were in Ootacamund to escape the heat. Wilson stayed on, conscious of the need for his presence to effect the changes he was introducing. With the onset of monsoon, he suffered from dysentery. On August 2, he shifted to his doctor’s home. Canning, after meeting him, wrote that he saw death in Wilson’s face. Wilson used the meeting to commend certain officers, and outline the pending work. He passed away on August 11, 1860, aged 55. His body was interred in a cemetery in Mullick Bazaar, Calcutta. Though in India for just eight months, his funeral procession, two miles long, was the largest Calcutta had seen. The mercantile community of Calcutta had a full-length statue of Wilson installed at the Dalhousie Institute in 1865. He shared space with former governor generals and viceroys. Evan Cotton in his 1907 book on Calcutta observed that all the others were moved to the Indian Museum pending transfer to the Victoria Memorial. He wondered why “James Wilson has not been permitted to follow them”. The answer lies in George Curzon’s February 1901 address to the Asiatic Society, where he outlined the shape the Victoria Memorial would take. One or more galleries were to be devoted to full-length sculptures for eminent persons. Others would only have portraits, busts, or mementoes. Wilson, an autodidact who had not gone to Eton or Oxford like Curzon and died too early to be knighted, figured in the second list. Wilson’s statue remained in stately isolation for over five decades. In 1960, the Dalhousie Institute building made way for the Telephone House. Someone had the statue sent to London. It was with The Economist till 2017, when they gifted it to Hawick, while shifting their office. The original location in Hawick was found unsuitable after two right hand fingers went missing, probably due to vandalism. In his final destination, Wilson looks in the direction of High Street, where he was born. Though Wilson’s mortal remains are in Calcutta, Hawick is proud and honoured to keep the statue of their famous son. Wilson himself would have been delighted to be back home, also content that his accomplishments were as varied, far-reaching, and enduring as those of any other. He could be humming the old Scottish song: “…the mist covered mountains of home! There shall I visit the place of my birth. They’ll give me a welcome the warmest on earth. So loving and kind, full of music and mirth, the sweet sounding language of home.” The writer is a former central banker

Kamala Harris sworn in as America's first woman Vice President

20 Jan, 2021, 10:11PM | Business Standards

Indian-origin Kamala Harris was on Wednesday sworn in as America's first woman Vice President during a historic inauguration at the West Front of the Capitol. Harris, 56, the 49th US Vice President, will serve as the deputy of President Joe Biden, 78, who also took the oath of office, becoming the 46th US President. Harris took over the office of the US Vice President from 61-year-old Mike Pence. Biden succeeded President Donald Trump, 74. Harris, the daughter of an Indian immigrant from Chennai, scripted history by becoming the first-ever woman Vice President of the United States. She is also the first female, first Black and first South Asian American vice president. Her husband Douglas Emhoff, 56, is the first ‘Second Gentleman' - the first male spouse of a vice president in the US. Justice Sonia Sotomayor, the first Latina member of the Supreme Court, administered the oath of office to Harris. She was sworn in on two Bibles - one that belonged to a close family friend named Regina Shelton and another that belonged to Thurgood Marshall - the country's first African American Supreme Court justice. ALSO READ: Inauguration LIVE update: Joe Biden takes oath as 46th US President Harris is the daughter of an Indian mother and African-American father from Jamaica. She was born in Oakland, California, in 1964, to parents who raised her in a bassinet of civil rights activism. Her mother, Shyamala Gopalan Harris from Chennai, was a breast cancer researcher who died of cancer in 2009. Harris' father, Donald, is a Jamaican American professor of economics. On the campaign trail, Harris often talked about how her activist parents would push her in her stroller at civil rights marches. The couple divorced in 1972. Harris grew up in the Bay Area but took frequent trips to India to visit extended family. At 12, she and her sister, Maya, moved with their mother to Montreal, where Gopalan Harris had secured a teaching post at McGill University as well as a research position at the Jewish General Hospital. After graduating from Howard in 1986 for her undergraduate degree and from the University of California's Hastings College of the Law in 1989, Harris passed the bar the following year and joined the Alameda County prosecutor's office as an assistant district attorney. From there, she began her political ascent. In 2003, Harris won her first race for San Francisco district attorney, becoming the first Black woman to hold such an office in California. In 2010, she became the first Black woman elected as California attorney general, and in 2016, she became only the second Black woman ever elected as a US senator. The inauguration, which was held in the midst of the COVID-19 pandemic, saw no large gatherings as the Presidential Inaugural Committee and local law enforcement officials had asked the public not to travel to Washington DC for the event. Elaborate security arrangements were put in place for the historic inauguration following the January 6 riot at the Capitol by supporters of outgoing President Trump. The event was held under the unprecedented security umbrella of over 25,000 National Guards, who have transformed the capital into a garrison city, mainly because of the threat of more violent protests by the supporters of Trump. Trump on Tuesday extended "best wishes" to the new administration in a farewell video address. Trump has not only refused to concede the elections for more than two months, but also did not invite his successor to the White House as is the custom. The ceremony was attended by former presidents Barack Obama, George W Bush and Bill Clinton. Former first ladies Michelle Obama, Laura Bush and Hillary Clinton are also set to attend the event. Biden and Harris will attend a traditional Pass in Review with members of the military on the East Front of the Capitol, signifying the peaceful transfer of power to a new commander-in-chief. Biden, Harris and their spouses will visit Arlington National Cemetery in Virginia, where they will lay a wreath at the Tomb of the Unknown Soldier. After the wreath ceremony, they will head to the White House, where they will get a presidential escort. That will kick off the virtual "Parade Across America," featuring performances from all 56 states and territories. The new administration enters the White House with the top challenge to lift the country from the devastation of the coronavirus pandemic that has killed over 400,000 Americans and thrown millions into economic distress. Revival of the economy, which has been badly bruised by the pandemic, is another challenge that he faces. Meanwhile, the American capital has been virtually turned into a garrison city, amidst multiple reports of threats and more armed violence by pro-Trump supporters to disrupt the events. The area in and around Capitol Hill, a large part of Pennsylvania Avenue and the White House has been made out of bounds for the general public with eight-feet high iron barricades being erected. In addition to converting downtown Washington D.C. into a fortress, security in and around 50 State Capitols has also been put on high alert to ensure a peaceful transition of power. US defence officials say they are also worried about an insider attack or other threat from service members involved in securing Biden's inauguration, prompting the FBI to vet all of the 25,000 National Guard troops deployed for the event.

Joe Biden, Kamala Harris arrive for historic inauguration at US Capitol

20 Jan, 2021, 09:10PM | Business Standards

US President-elect Joe Biden and Vice President-elect Kamala Harris on Wednesday arrived for the historic inauguration at the West Front of the Capitol. Biden, 78, will take the oath of office as the 46th President of the United States while Harris, 56, will be sworn in as the 49th US Vice President. Over 25,000 National Guard troops are guarding the venue and nearby areas to ensure that the nation's transfer of power can take place peacefully. Biden, who is set to be the oldest president in American history, will succeed President Donald Trump, 74, who has decided not to attend the swearing-in ceremony. Harris will take over the office of the US Vice President from 61-year-old Mike Pence. The President-elect is wearing a navy suit and a navy overcoat, both designed by American designer Ralph Lauren. His wife Dr Jill Biden is wearing an ocean blue wool tweed coat and dress by emerging American designer Alexandra O'Neil of Markarian. Harris, the daughter of an Indian immigrant from Chennai, will create history by becoming the first-ever woman Vice President of the United States. She would also be the first female, first Black and first South Asian American vice president. Her husband Douglas Emhoff, 56, will be the first Second Gentleman' - the first male spouse of a vice president in the US. Chief Justice John Roberts will administer the oath of office to Biden just after the clock strikes 12 (local time) at the West Front of the Capitol - the traditional location for presidential inaugural ceremonies. The inauguration, which is being held in the midst of the COVID-19 pandemic, will see no large gatherings as the Presidential Inaugural Committee and local law enforcement officials have asked the public not to travel to Washington DC for the event. The event is being held under the unprecedented security umbrella by elite security personnel, who have transformed the capital into a garrison city, mainly because of the threat of more violent protests by the supporters of Trump. Trump is the first outgoing president of the US to miss his successor's inauguration since Andrew Johnson, who was impeached in 1869. Trump, however, extended "best wishes" to the new administration in a farewell video address on Tuesday. Trump has not only refused to concede the elections for more than two months, but also did not invite his successor to the White House as is the custom. Biden has termed Trump's decision to skip the swearing-in ceremony as one of the few things he and I ever agreed on. He in the past has said that tackling the COVID-19 pandemic, economic crisis, systemic racism and climate change will be the top priorities for the incoming administration as they gear up for building back everything "better than ever". Biden will take the oath on his 127-year-old family Bible, which will be held by his wife, Jill Biden, 69. He will deliver his first presidential address to the country shortly after taking the oath. The historic speech, with the theme of unity and healing, has been prepared by his Indian-American speech writer Vinay Reddy. Harris will be sworn in as Vice President of the United States by Justice Sonia Sotomayor, the first Latina member of the Supreme Court. Harris will be sworn in on two Bibles - one that belonged to a close family friend named Regina Shelton and another that belonged to Thurgood Marshall - the country's first African American Supreme Court justice. The ceremony is likely to be attended by former presidents Barack Obama, George W Bush and Bill Clinton. Former first ladies Michelle Obama, Laura Bush and Hillary Clinton are also set to attend the event. After the swearing-in ceremony, Biden and Harris will attend a traditional Pass in Review with members of the military on the East Front of the Capitol, signifying the peaceful transfer of power to a new commander-in-chief. Biden, Harris and their spouses will visit Arlington National Cemetery in Virginia, where they will lay a wreath at the Tomb of the Unknown Soldier. After the wreath ceremony, they will head to the White House, where they will get a presidential escort. That will kick off the virtual "Parade Across America," featuring performances from all 56 states and territories. Biden enters the White House with the top challenge to lift the country from the devastation of the coronavirus pandemic that has killed over 400,000 Americans and thrown millions into economic distress. Revival of the economy, which has been badly bruised by the pandemic, is another challenge that he faces. Meanwhile, the American capital has been virtually turned into a garrison city, amidst multiple reports of threats and more armed violence by pro-Trump supporters to disrupt the events. The area in and around Capitol Hill, a large part of Pennsylvania Avenue and the White House has been made out of bounds for the general public with eight-feet high iron barricades being erected. In addition to converting downtown Washington D.C. into a fortress, security in and around 50 State Capitols has also been put on high alert to ensure a peaceful transition of power. US defence officials say they are also worried about an insider attack or other threat from service members involved in securing Biden's inauguration, prompting the FBI to vet all of the 25,000 National Guard troops deployed for the event. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Inheriting a confluence of crises, Biden will take helm as US president

20 Jan, 2021, 05:07PM | Business Standards

Joe Biden swears the oath of office at noon Wednesday to become the 46th president of the United States, taking the helm of a deeply divided nation and inheriting a confluence of crises arguably greater than any faced by his predecessors. The very ceremony in which presidential power is transferred, a hallowed American democratic tradition, will serve as a jarring reminder of the challenges Biden faces: The inauguration unfolds at a US Capitol battered by an insurrectionist siege just two weeks ago, encircled by security forces evocative of those in a war zone, and devoid of crowds because of the threat of the coronavirus pandemic. Stay home, Americans were exhorted, to prevent further spread of a surging virus that has claimed more than 400,000 lives in the United States. Biden will look out over a capital city dotted with empty storefronts that attest to the pandemic’s deep economic toll and where summer protests laid bare the nation’s renewed reckoning on racial injustice. He will not be applauded — or likely even acknowledged — by his predecessor. ALSO READ: Joe Biden inauguration LIVE: US set to rejoin WHO, Paris climate accord Flouting tradition, Donald Trump planned to depart Washington on Wednesday morning ahead of the inauguration rather than accompany his successor to the Capitol. Trump, awaiting his second impeachment trial, stoked grievance among his supporters with the lie that Biden’s win was illegitimate. Biden, in his third run for the presidency, staked his candidacy less on any distinctive political ideology than on galvanizing a broad coalition of voters around the notion that Trump posed an existential threat to American democracy. On his first day, Biden will take a series of executive actions — on the pandemic, climate, immigration and more — to undo the heart of Trump's agenda. The Democrat takes office with the bonds of the republic strained and the nation reeling from challenges that rival those faced by Abraham Lincoln and Franklin D. Roosevelt. “Biden will face a series of urgent, burning crises like we have not seen before, and they all have to be solved at once. It is very hard to find a parallel in history,” said presidential historian Michael Beschloss. “I think we have been through a near-death experience as a democracy. Americans who will watch the new president be sworn in are now acutely aware of how fragile our democracy is and how much it needs to be protected.” Biden will come to office with a well of empathy and resolve born by personal tragedy as well as a depth of experience forged from more than four decades in Washington. At age 78, he will be the oldest president inaugurated. ALSO READ: In first hours as President, Biden to undo Trump policies on climate, virus More history will be made at his side, as Kamala Harris becomes the first woman to be vice president. The former US senator from California is also the first Black person and the first person of South Asian descent elected to the vice presidency and will become the highest-ranking woman ever to serve in government. The two will be sworn in during an inauguration ceremony with few parallels in history. Tens of thousands of troops are on the streets to provide security precisely two weeks after a violent mob of Trump supporters, incited by the Republican president, stormed the Capitol in an attempt to prevent the certification of Biden’s victory. The tense atmosphere evoked the 1861 inauguration of Lincoln, who was secretly transported to Washington to avoid assassins on the eve of the Civil War, or Roosevelt's inaugural in 1945, when he opted for a small, secure ceremony at the White House in the waning months of World War II. Despite security warnings, Biden declined to move the ceremony indoors and instead will address a small, socially distant crowd on the West Front of the Capitol. Some of the traditional trappings of the quadrennial ceremony will remain. The day will begin with a reach across the aisle after four years of bitter partisan battles under Trump. Biden invited Mitch McConnell and Kevin McCarthy, the Republican leaders of the Senate and House, to join him at a morning Mass, along with Chuck Schumer and House Speaker Nancy Pelosi, the Democratic leaders. ALSO READ: European Union sighs with relief as Biden readies to enter White House Once at the Capitol, Biden will be administered the oath by Chief Justice John Roberts; Harris will be sworn in by Justice Sonia Sotomayor. The theme of Biden’s approximately 30-minute speech will be “America United,” and aides said it would be a call to set aside differences during a moment of national trial. Biden will then oversee a “Pass in Review,” a military tradition that honors the peaceful transfer of power to a new commander in chief. Then, Biden, Harris and their spouses will be joined by a bipartisan trio of former presidents — Bill Clinton, George W. Bush and Barack Obama — to lay a wreath at the Tomb of the Unknown Soldier at Arlington National Ceremony. Later, Biden will join the end of a slimmed-down inaugural parade as he moves into the White House. Because of the pandemic, much of this year's parade will be a virtual affair featuring performances from around the nation. In the evening, in lieu of the traditional glitzy balls that welcome a new president to Washington, Biden will take part in a televised concert that also marks the return of A-list celebrities to the White House orbit after they largely eschewed Trump. Among those in the lineup: Bruce Springsteen, Justin Timberlake and Lin-Manuel Miranda. Lady Gaga will sing the national anthem at the Capitol earlier in the day. Trump will be the first president in more than a century to skip the inauguration of his successor. He planned his own farewell celebration at nearby Joint Base Andrews before boarding Air Force One for the final time as president for the flight to his Florida estate. Trump will nonetheless shadow Biden’s first days in office. Trump’s second impeachment trial could start as early as this week. That could test the ability of the Senate, poised to come under Democratic control, to balance impeachment proceedings with confirmation hearings and votes on Biden’s Cabinet choices. Biden was eager to go big early, with an ambitious first 100 days that includes a push to speed up the distribution of COVID-19 vaccinations to anxious Americans and pass a $1.9 trillion virus relief package. On Day One, he’ll also send an immigration proposal to Capitol Hill that would create an eight-year path to citizenship for immigrants living in the country illegally. He also planned a 10-day blitz of executive orders on matters that don’t require congressional approval — a mix of substantive and symbolic steps to unwind the Trump years. Among the planned steps: rescinding travel restrictions on people from several predominantly Muslim countries; rejoining the Paris climate accord; issuing a mask mandate for those on federal property; and ordering agencies to figure out how to reunite children separated from their families after crossing the border. The difficulties he faces are immense, to be mentioned in the same breath as Roosevelt taking office during the Great Depression or Obama, under whom Biden served eight years as vice president, during the economic collapse. And the solution may be similar. “There is now, as there was in 1933, a vital need for leadership,” said presidential historian Doris Kearns Goodwin, “for every national resource to be brought to bear to get the virus under control, to help produce and distribute the vaccines, to get vaccines into the arms of the people, to spur the economy to recover and get people back to work and to school.” (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Limited upside in markets; Nifty to be at 15,000 by Dec: BofA Securities

20 Jan, 2021, 01:54PM | Business Standards

After the strong rally since April, there is a limited upside in the Indian equities and the markets will end 2021 with a low single digit gain, an American brokerage said on Wednesday. BofA Securities said it is "not as bullish" and gave a target of 15,000 points for the 50-share benchmark Nifty by the end of the newly started year. Markets have rallied by 80 per cent since April after a heavy 40 per cent correction following the announcement of the Covid-19-related restrictions. Many analysts, including RBI Governor Shaktikanta Das, have raised concerns over the over-heating in the markets. The benchmark Nifty was trading 0.6 per cent up at 14,607 points at 1259 hrs on Wednesday. "We are giving a target of 15,000 on the Nifty, which means there is a limited upside now. We are still bullish, but not as bullish," its India equity strategist Amish Shah told reporters. He mentioned the strong rally witnessed by the markets in the immediate past for its more conservative view on the markets. The brokerage is overweight on sectors including financials, metals and steel, and industrial, he said, adding that information technology, energy, consumer discretionary and auto are the sectors on which it is underweight. Within the financial sector, Shah said the brokerage feels the banks are adequately provided for the possible asset quality reverses and called the prediction of a jump in the dud assets by RBI in its biannual Financial Stability Report as conservative. He said the valuations of banking and financial companies are also lower from the historical highs which make it an attractive bet, and added that there is also a chance of higher credit growth fueling earnings for select lenders which will make it an attractive bet. On the metals and steel and industrials sectors, the call is driven more from a likely surge in capital expenditure from the government, real estate and infrastructure sectors which we should be seeing, he said. The upcoming budget will have an expansionist bias in the fiscal policy while the inventory levels will dip in the realty sector, leading to a surge in new projects, he said. Shah, however, said that a full private sector capital expenditure cycle recovery is still two years away and it will be select sectors which will be seeing a growth in investments in 2021. The target on the benchmarks also assumes a net addition of USD 10 billion to the foreign portfolio flows into the country, over and above the USD 22 billion in 2020, he said. The foreign flows will continue on the back of stimulus measures and easy monetary policies in the developed world, he said, adding that Joe Biden will continue with such measures in the US on taking charge. Shah also said that the government will continue on its reforms agenda in the new year as well and specifically pointed out power sector where there can be greater private sector play in distribution.

China bought most iron ore from Australia, Brazil in 2020, but imports from India up nearly 90%

20 Jan, 2021, 11:07AM | Economic Times

BEIJING/NEW DELHI: Australia and Brazil, the world's two largest iron ore producers , remained China 's top suppliers in 2020, but imports from India soared 88% as Chinese mills diversified sources amid sky-high raw materials prices. Australian shipments rose 7% to 713 million tonnes, while Brazilian supplies were up 3.5% at 235.7 million tonnes, data from China's General Administration of Customs showed on Wednesday. "The two countries' rise could not fully meet China's demand," said Tang Chuanlin, analyst with CITIC Securities, "Mills had to buy from other countries." The world's top steel producer imported 44.8 million tonnes of iron ore from India last year, compared with the 23.8 million tonnes purchased in 2019, and was the most in nine years. China churned out a record 1.05 billion tonnes of crude steel in 2020, with demand boosted by Beijing stimulus for infrastructure. India, the world's third-biggest steelmaker, suffered a 12.6% decline in the nine months though December from same period year earlier, government data showed, leaving more iron ore to sell to Chinese buyers. Tang also noted that Chinese steel firms were using more low-grade ore, like India's, as part of an effort to lower costs. Almost two-thirds of India's iron ore exports to China had less than 58% iron content, according to Indian mining industry estimates. "The purchases will continue until March (on strong Chinese demand)," said B.K. Bhatia, joint secretary general of the Federation of Indian Mineral Industries, the country's biggest mining lobby group. Bhatia expected Chinese buying to continue through until March, but said it was too difficult to predict demand beyond then. Spot prices of iron ore with 62% iron content for delivery to China jumped 73% in 2020, while 58% iron ore soared 91%, according to SteelHome consultancy.

Nifty outlook & stock picks by Vinay Rajani: Buy Ashok Leyland, Tata Steel

20 Jan, 2021, 07:22AM | Business Standards

Sharp pullback negates the possibility of a down trend From the low of 14,222, the Nifty50 index registered sharp recovery towards 14,546 in a short span of time. This recovery has recouped more than 62 per cent of the entire fall which was registered from 14,653 to 14,222. Retracement of more than 62 per cent is considered as a negation of a primary down move. Bullish trend of Nifty has now got new support at 14,222 and with that stoploss longs should be held. Stock picks: Buy Ashok Leyland (119.5) | Target: Rs 127 | Stop-loss: Rs 114 The stock has broken out from a "bullish flag" pattern on the daily chart. It has also remained as one of the best performing stocks from the auto sector in the last couple of months. It is placed above all important moving averages with Indicator and Oscillator setup being bullish on daily and weekly chart. Buy Tata Steel (682) | Target :Rs 720 | Stop-loss: Rs 660 The stock price has formed bullish "Hammer" candlestick pattern on the daily chart with higher volumes. Primary trend of the stock has been bullish. The metal sector has also been holding the strength from last many months. Short-term moving averages are trading above medium to long term moving averages. ==================== Disclaimer: Vinay Rajani is Senior Technical and Derivative Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal

Lockdowns caused by China's new Covid-19 outbreak are sparking concerns over steel, iron ore

20 Jan, 2021, 07:14AM | CNBC

This aerial image taken on June 6, 2019 shows a steel factory in Chengde, China's northern Hebei province.FRED DUFOUR | AFP | Getty Images A new wave of Covid-19 cases in China's Hebei province triggered transport restrictions in the major steel-producing region.The lockdowns in Hebei include areas surrounding steel mills, limiting the ability to transport the metal to customers. China is the world's top steel producer and analysts say Hebei contributes over 20% of the country's total output.Coronavirus cases in Hebei have been rising since the start of the year, prompting the province to lock down its capital, Shijiazhuang, and at least two other areas in an effort to contain the spread of the coronavirus.The curbs are unlikely to affect steel production for now, but they could hurt demand by spurring the manufacturing sector to stop work earlier than planned ahead of the major Lunar New Year holiday, commodity data provider S&P Global Platts said earlier this month.Demand and prices for raw materials used to make steel like iron ore could also shoot up, according to analysts. VIDEO1:0901:09China reports first Covid death in more than six monthsSquawk Box Restrictions in Hebei Steel deliveries by truck have been suspended in Hebei, leaving rail as the only way to transport steel, Shanghai-based Chinese metal data provider Mysteel said in a note last week. The report said blocked roads have led to completed steel piling up at major mills in the region."Partial lockdowns have restricted the transportation of goods, resulting in a sharper build in inventories held by local steel mills rather than at stockists in the first half of January," said Atilla Widnell, co-founder of Singapore-based Navigate Commodities, in an email to CNBC on Monday."We have heard anecdotal evidence that some stockists and traders are reluctant to tie up cash flow in-case a 'soft lockdown' is prolonged or intensified," he added.S&P Global Platts said inventories are rising at the Jingye Iron & Steel mill in Hebei's capital city Shijiazhuang. The firm cited a source at the mill, which produces 13 million metric tons of crude steel a year. Manufacturing, construction sectorsÂ stopping work Manufacturing and construction sites in China are set to stop work earlier than usual ahead of the Lunar New Year holiday between Feb. 11 and 17. That's likely to hit demand for steel, which is heavily used in those sectors.The government advised manufacturing and construction workers to return home before the peak holiday travel period, said S&P Global Platts."According to market sources, Beijing has done this in (an) effort to reduce the possibility of a spike in COVID-19 cases during and after the Lunar New Year holidays," the firm wrote.Work stopping earlier suggests steel demand is set to drop, causing inventories to rise elsewhere."Some traders said they were unwilling to increase their steel inventories as they anticipate having to hold on to these for much longer than usual, and with steel prices continuing to soar, building inventories will put pressure on their cash flows," S&P Global Platts added. Impact on steel, iron ore Daniel Hynes, senior commodity strategist at Australian bank ANZ, told CNBC on Monday that risks could spread to iron ore."There are concerns that a further rise in coronavirus cases in Hebei could result in some steel making regions being locked down. This would obviously impact demand for iron ore, as steel mills would likely see supply chains disrupted, thus impacting steel production," he said in an email. VIDEO3:0103:01China likely to diversify iron ore supply to reduce reliance on Australia, Brazil: AnalystStreet Signs Asia The ripple effects can already be seen in the costs for raw materials used to process steel like coking coal, said energy research consultancy Wood Mackenzie.Coking coal prices are surging and are about 450 yuan per ton higher than last year, according to Zhilu Wang, research associate at the firm."This is due to the restrictions on inter-provincial transportation in Hebei provinces which has resulted in the increase of transportation fee," said Wang.While this could in turn support steel prices, Wang predicted it could mildly weaken overall as traders stock less of the commodity due to the Covid uncertainty.

Top headlines: RBI backs NPCI-type agency for fintechs, how green are EVs?

20 Jan, 2021, 06:40AM | Business Standards

RBI working committee in favour of setting up NPCI-type agency for fintechs The newly-formed working committee of the Reserve Bank of India (RBI) is in favour of setting up an agency which will act as an umbrella institution for financial technology (fintech) firms in view of growing complaints against the collection and recovery practices deployed by some digital lending applications (apps). Read more How green are EVs? Long, winding road ahead for electric cars in India The electric vehicle (EV) evolution in India’s passenger vehicle market has remained frozen in time and may see limited adoption over the next decade, experts say. Weak consumer appetite, inadequate charging infrastructure, an inconsistent policy roadmap, and a high payback period, among other factors, have stymied EV adoption in the personal car segment. To a great extent, carmakers are still grappling with the same issues which failed Reva — high cost of acquisition, battery costs, range anxiety, infrastructure-related issues and high payback period. Read more Budget 2021: Consumer durables makers seek respite from inflation, taxes Consumer durables manufacturers, grappling with a recent surge in raw material cost and falling demand, have asked the finance minister for budgetary measures that will reduce cost pressures and improve the purchasing power of consumers. With prices of key raw materials such as copper, steel and plastic on the rise since at least November, players operating in most durables and electronics categories like refrigerators, televisions (TVs) and washing machines are feeling the pinch. Read more Govt may bring regional rural banks under a holding company in Budget The government is working on a policy to bring regional rural banks (RRBs) under a holding company to better govern these lenders and help them raise equity from the market. The intention to further reform the regional rural banking space may feature in the Union Budget. Currently, there are 43 RRBs in the country. The step would help centralise their functioning, improve efficiency and ensure they are run professionally. Read more NBHC plans to start an electronic market platform outside the mandis In one of the first moves after passing of the three agriculture Acts, National Bulk Handling Corporation (NBHC), a leading agri-warehousing services company, is planning to start an electronic market platform outside the mandis. This will complement its growing network of NABL-accredited quality testing and assaying labs along with existing storage infrastructure. Read more Investors should rebalance exposure to US-focused funds; don't exit US-focused funds have rewarded investors well with an average return of 31.2 per cent over the past year and 15 per cent (compound annualised) over seven years. Such a stellar performance has given rise to many questions in the minds of new and existing investors. Why invest in the US market? Investing in US equities provides geographical diversification. Read more India plans foreign investment rule changes that could hit Amazon: Report India is considering revising its foreign investment rules for e-commerce, three sources and a government spokesman told Reuters, a move that could compel players, including Amazon.com Inc, to restructure their ties with some major sellers. Read more

Biden all set to be sworn in as 46th US President amid heightened security

19 Jan, 2021, 09:58PM | Business Standards

Joe Biden will be sworn in as the 46th President of the United States, while Kamala Harris will take oath as the first woman Vice President on Wednesday, in the midst of growing concerns over the safety of the historic inauguration following the recent violent attack on the Capitol Hill by pro-Trump supporters. Chief Justice John Roberts will administer the oath of office to Biden just after the clock strikes 12 (local time) at the West Front of the Capitol - the traditional location - under the unprecedented security umbrella of more than 25,000 National Guards, who have transformed the capital into a garrison city, mainly because of the threat of violent protest by Trump's supporters. Biden, 78, will take the oath on his 127-year-old family Bible, which will be held by his wife, Jill Biden. Biden, who will be the oldest president in American history, will deliver his first presidential address to the country after taking oath shortly after noon. The historic speech, with the theme of unity and healing, is being prepared by his Indian-American speech writer Vinay Reddy. Harris, 56, will make history as the first female, first Black and first South Asian American vice president when she will be sworn in by Justice Sonia Sotomayor, the first Latina member of the Supreme Court. Sotomayor administered the oath to Biden as vice president in 2013. She will be sworn in on two Bibles - one that belonged to a close family friend named Regina Shelton and another that belonged to Thurgood Marshall - the country's first African American Supreme Court justice. This year, however, the transition stands out for its acrimony. The process usually starts straight after the election, but it started weeks late after President Donald Trump refused to accept the result of the November 3 election won by Biden, a Democrat. Trump has said he will not attend the inauguration. Trump, a Republican, will vacate the White House hours before the inauguration and is expected to travel to his Mar-a-Lago club in Florida. The scaled down inauguration is expected to begin around 11 a.m. with an invocation by Leo Jeremiah O'Donovan, a Jesuit priest who is a close friend of the Biden family. Andrea Hall, the first African American female firefighter to become captain of the Fire Rescue Department in South Fulton, Georgia, will recite the Pledge of Allegiance. Singer-dancer Lady Gaga will sing the national anthem and Amanda Gorman, who became the country's first Youth Poet Laureate in 2017, will read a poem she has written for the occasion called "The Hill We Climb." She would be followed by a performance by actress-singer Jennifer Lopez. Silvester Beaman, pastor of Bethel African Methodist Episcopal Church in Wilmington, Delaware, will deliver a benediction. After the swearing-in ceremony, Biden and Harris will attend a traditional Pass in Review with members of the military on the East Front of the Capitol, signifying the peaceful transfer of power to a new commander-in-chief. Biden, Harris and their spouses will visit Arlington National Cemetery in Virginia, where they will lay a wreath at the Tomb of the Unknown Soldier. After the wreath ceremony, they will head to the White House, where they will get a presidential escort. That will kick off the virtual "Parade Across America," featuring performances from all 56 states and territories. Traditionally, when the new president arrives at the Oval Office and occupies the chair in front of the resolute desk, a letter from his predecessor awaits him. Given the circumstances that Trump is leaving, speculation is rife that there might not be any letter at all. Trump not only refused to concede the elections for more than two months, but also did not invite his successor to the White House as is the custom here. At night, Biden is forgoing the traditional inaugural balls because of the COVID pandemic, and he will instead take part in a television event called "Celebrating America." Biden enters the White House with the top challenge to lift the country from the devastation of a raging pandemic that has killed more than 400,000 Americans and thrown millions into economic distress. Revival of the economy, which has been badly bruised by the pandemic, is another challenge that he faces. Meanwhile, the American capital has been virtually turned into a garrison city, amidst multiple reports of threats and more armed violence by pro-Trump supporters to disrupt the events. The area in and around Capitol Hill, a large part of Pennsylvania Avenue and the White House has been made out of bounds for the general public with eight-feet high iron barricades being erected. The entire city is on high-alert as authorities are receiving multiple reports of violent threats from various groups at the level of the incident that happened on January 6 - when hundreds of supporters of Trump stormed Capitol Hill. At least five people, including a police officer, died in the incident. In addition to converting downtown Washington D.C. into a fortress, security in and around 50 State Capitols has also been put on high alert to ensure a peaceful transition of power. The Federal Bureau of Investigation in its internal bulletins has warned of the potential for violence in Washington DC and at all 50 state Capitols. US defence officials say they are also worried about an insider attack or other threat from service members involved in securing Biden's inauguration, prompting the FBI to vet all of the 25,000 National Guard troops deployed for the event. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Tata Metaliks third quarter net profit up 55 per cent to Rs 75 crore

19 Jan, 2021, 06:36PM | Business Standards

Higher margins boosted the pig iron and ductile pipe maker -- Tata Metaliks Ltd's net profit to Rs 75.18 crore for the third quarter ended December 2020, a jump of 55 per cent over the corresponding quarter of last year, the company said on Tuesday. Revenue from operations was Rs 526 crore for the quarter, marginally higher from Rs 518 crore registered in the corresponding period of FY20. Tata Metaliks Limited, a subsidiary of Tata Steel has its manufacturing facilities at Kharagpur, West Bengal. It produces pig iron and DI pipes. The plant annually produces around 550,000 tonne of hot metal, of which over 200,000 tonne is converted into DI Pipes and the rest into Pig Iron. The company's Ductile Iron (DI) Pipe deliveries were, however, lower by 19 per cent compared to Q3 FY'20. Post Covid, the DI pipe industry has been under stress due to slowdown of executable projects. The company demonstrated robust performance in pig iron division and recorded the highest quarterly deliveries in the last five years. "The company has delivered excellent results in its pig iron business despite over a month-long shutdown of one of its blast furnaces for capital repairs. Strong focus on operational performance coupled with a buoyant market for pig iron has contributed to the high margins. The DI Pipe expansion project which was moving slowly due to Covid has been put on fast track for completion within the next financial year," Tata Metaliks, managing director Sandeep Kumar said.

Bill Gates-led fund raises another $1 billion to invest in clean tech

19 Jan, 2021, 06:18PM | Business Standards

Here’s more evidence the clean-tech boom is only getting bigger. Breakthrough Energy Ventures, the clean-tech venture capital fund led by Bill Gates, has raised $1 billion for a second round of investments after backing 45 startups with its first billion. Created in 2016, BEV began funding startups just as the second wave of clean-tech investments was gaining momentum. Since then, interest in the sector has exploded. VC money flowing into startups that can help cut emissions has soared to $16 billion in 2019 from $400 million in 2013, a 40-times increase, according to a PwC report published last year. The first clean-tech boom was a disappointment. VCs lost more than half the $25 billion invested between 2006 and 2011. The financial crisis compounded the losses, but experts believe there were bigger problems with the underlying investment philosophy. First, VCs were looking to replicate the success they had seen in internet startups, expecting returns from clean-tech investments in less than five years. Second, the types of technologies they invested in were mostly limited to renewable electricity, biofuels and electric vehicles—all of which depended heavily on government regulations to grow. BEV learned from that failure. It launched a “patient” fund that would run for 20 years, instead of expecting returns in just five years. It also pursued a larger set of technologies, including agriculture, buildings, transportation, and manufacturing. Profit remains the ultimate objective, but BEV set another criteria: companies needed to show a path to scaling up that would cut at least 500 million metric tons of annual CO₂ emissions—about 1 per cent of global emissions. Software startups can be nimble, moving from one idea to another when a business plan doesn’t pan out. That kind of pivot is rare for clean-tech companies because of the length of time and amount of money that needs to be spent before failure becomes apparent. That’s why BEV relies on a team that consists of academics, entrepreneurs, former government officials, and bankers, along with VC investors. Their mission goes beyond judging an idea and the people behind it to rigorously evaluate the feasibility and potential of new technologies. “We have built a great technical team and our ability to close a second fund is a testament to their good work,” said Eric Toone, BEV’s technical lead. The first round included investments in complex technologies including energy storage, lithium mining, electric aviation, synthetic palm oil, zero-carbon steel, hydropower turbines and even nuclear fusion. Photo: Bloomberg Even though BEV invests in early-stage startups and doesn’t expect returns quickly, the proliferation of clean-energy companies going public via SPACs helped it score its first exit. QuantumScape, which makes next-generation lithium-ion batteries, listed on the New York Stock Exchange in September. Its valuation has shot up to $20 billion from $3 billion even though its batteries won’t hit the market before 2025. “We may have some early wins, but the ultimate impact of many of our investments will require a longer time horizon,” said Rodi Guidero, BEV’s executive director. As its portfolio begins to mature, BEV will also start focusing on how best to bring the innovations to consumers. “Many of our companies are focused on sectors where policy and regulation play an important role in shaping markets,” said Guidero. “We need to fully understand these factors and the challenges and opportunities they bring to our companies.” Among the principal investors of BEV’s first fund were Jeff Bezos of Amazon Inc., Mukesh Ambani of Reliance Industries Ltd., Richard Branson of Virgin Group, Jack Ma of Alibaba Group, and hedge fund manager Chris Hohn. Michael Bloomberg, founder and majority owner of Bloomberg LP, is also a backer of BEV. Guidero said many of BEV’s original investors are involved in the second round, along with some new ones, but declined to provide names. The next $1 billion will go to between 40 and 50 startups. While BEV is still interested in a broad set of technologies, it’ll place special focus on “tougher climate challenges” in greener steel and cement, long-haul transport, direct air capture and hydrogen. In some areas where BEV might not find enough investable startups, it intends to launch new companies itself relying on its own technical expertise. “This model has already been successfully executed more than once but the companies have yet to be disclosed,” said Toone.

The G-7 is heading to Cornwall, home to one of the UK’s most innovative and sustainable spaces

19 Jan, 2021, 02:22PM | CNBC

This June, leaders from countries including the U.S., U.K., Germany and Japan will congregate in Cornwall, a picturesque county in the southwest of England, to take part in the G-7 summit.The small coastal resort of Carbis Bay will be the epicenter of the talks, with larger towns including St Ives and Falmouth set to play a supporting role.While Cornwall is rightly famed for its natural beauty, fishing communities and pristine beaches, it's also home to one of the most interesting developments in Britain: the Eden Project.A popular tourist attraction located near the town of St Austell â around an hour's drive from Carbis Bay â the Eden Project was officially opened in 2001.The site is instantly recognizable thanks to its "Biomes," which are bubble-like structures housing vast indoor gardens packed with plants from across the world.Below, CNBC looks at some of the other design features and technologies which have helped the Eden Project stand out from the crowd and attract millions of visitors over the years.Monitoring techIn a bid to cut its energy consumption, the Eden Project â which is temporarily closed to visitors because of the coronavirus pandemic â makes use of a building management system, or BMS.Its official site describes this as resembling "a giant TV remote" which enables "very tight control of our heating and electrical systems." The BMS monitors usage within the Biomes, offices and other buildings at the complex and ensures the site never uses more than it needs. Energy efficiency and insulation In addition to the BMS, a range of on-the-ground technologies are being deployed to boost the energy efficiency of the Eden Project.These include the installation of LED lighting and use of high-efficiency boilers.Buildings at the site have also been designed to make the most of natural light and ventilation, while an emphasis has also been placed on the use of "super insulation."Hexagonal cushions on the Biomes' steel structure are used to capture air between two layers of a material called ethylene tetrafluoroethylene, creating a "thermal blanket."Elsewhere, insulation comes in the form of recycled newspapers, while a green roof located on a building used by staff attracts wildlife and helps keep things cool during the summer and warm in winter months.RenewablesWhile the site has placed a great deal of focus on energy efficiency, it's also embracing renewable energy technologies.A 30 kilowatt (kW) solar power system has been installed on the rooftop of the Eden Project's Core building â which is used for education purposes â while a 5 kW wind turbine is located near the site's car park. These technologies are supplemented by a deal with Good Energy, which supplies the Eden Project with 100% renewable energy.5G connectivityJust last week, it was announced a consortium headed up by the Eden Project was one of nine picked to take part in the Department for Digital, Culture, Media and Sport's "5G Testbeds and Trials Programme." Called Eden Universe, the Eden Project consortium will benefit from a grant of Â£1.6 million ($2.18 million), with a 5G network and 360-degree video technology set to be installed on-site. Among other things, the tech will allow teams at the Eden Project to create and test a range of augmented and virtual reality programs and "experiences" for visitors.Sustainable transportIn addition to the tech which has been integrated into the fabric of the Eden Project's buildings, efforts are also being made to encourage the use of sustainable transport.To this end, discounts are available for visitors who cycle, walk or use combined coach, bus and train tickets.Staff at the Eden Project can also make use of an 18-strong fleet of zero-emission electric vehicles from French carmaker Renault.

Automobile Q3 results preview: Strong volume recovery to drive earnings

19 Jan, 2021, 01:50PM | Business Standards

A sharp recovery in volumes across segments and leaner cost of operations due to cost-cutting measures are set to help auto companies post strong results for the December quarter of FY21 (Q3FY21), analysts believe. Moreover, pent-up demand, increased preference for personal mobility and strong rural sentiments have also helped revive the sector. According to HDFC Securities, the demand for automobiles has been resilient even post the traditional Diwali sales. "Sales for passenger vehicles and tractors continue to grow in healthy double digits and we expect the trends to sustain over Q4 as well. However, sales for two-wheelers have moderated. Commercial vehicle (CV) sales are improving sequentially and are expected to witness an uptrend, aided by a low base. As the country emerges from Covid-19, the economic recovery will further benefit auto sales," it said. Analysts, however, caution that the sharp increase in prices of major commodities such as steel, aluminum, copper and rubber in the last quarter would be a negative for the gross margin of the companies.That said, most original equipment manufacturers (OEMs) have taken price hikes from January onwards to partly counter the negative impact of the same. At the bourses, the Nifty Auto index grew 15.3 per cent in Q3FY21, thus underperforming the benchmark Nifty50 index which rallied 22.46 per cent during the same period. Kotak Institutional Equities (KIE) sees revenues for the auto companies, under its coverage, increasing by 19 per cent YoY in Q3FY21 while earnings before interest, tax, depreciation, and ammortisation (Ebitda) may improve by 48 per cent year-on-year (YoY) due to strong volume performance and cost-cutting measures. BP Wealth too expects Q3FY21 earnings for auto and auto ancillary to witness sequential growth, driven by healthy volume recovery and cost control measures. Overall, the brokerage is building a 16.7 per cent YoY growth in revenue for the auto firms under its coverage while profit after tax (PAT) and Ebitda are seen growing 16 per cent and 17.5 per cent YoY, respectively. As regards margina, HDFC Securities expects it to be sequentially range-bound, largely owing to rise in commodity prices. "While utilisation levels are elevated (car, tractor utilisation is upwards of 80 per cent) and discounts are lower due to encouraging demand trends, commodity prices have risen sharply over the past quarter which will weigh on margins," it said. Segment-wise forecast Passenger vehicle : Analysts at KIE sees Maruti Suzuki's Ebitda increasing by 27 per cent YoY in Q3FY21, led by 14 per cent YoY increase in revenues, driven mainly by volume growth. Those at BoB Capital Markets (BoB Caps), meanwhile, expect a 17 per cent YoY increase in Maruti's Q3 revenue led by higher volumes, although it is skeptical on the company's margins owing to sharp upswing in commodity prices. Two-wheeler: In this segment, KIE expects Ebitda of Hero MotoCorp to increase by 24 per cent YoY due to strong volume recovery (up 20 per cent YoY), resulting in higher profitability, partly offset by raw material cost pressures. Bajaj Auto's Ebitda, on the other hand, is pegged to grow 18 per cent YoY as "strong growth in the export motorcycle segment (up 26 per cent YoY) will aid Ebitda margin". This, the brokerage says, will be partly offset by raw material cost pressures and negative impact of withdrawal of the export incentive scheme. BoB Capital forecasts volume growth at around 20 per cent YoY for Hero MotoCorp and TVS Motor and around 9 per cent for Bajaj Auto and Eicher Motors. The Ebitda margins for two-wheelers are, however, forecast to decline QoQ due to the rising commodity prices. Commercial vehicle: Mahindra & Mahindra's Ebitda may increase by 38 per cent YoY for the quarter, led by 270 bps YoY improvement in Ebitda margin mainly due to a richer product mix, while Escorts may report a strong quarter due to 27 per cent YoY increase in tractor volumes and a richer product mix, Kotak IE noted. "In the CV segment, MHCV volume declines moderated to around 8 per cent YoY on lower economic activity and uncertainty over the scrappage policy. But with a 19 per cent YoY jump in average realisation per unit (low base in Q3FY20 and BSVI transition cost), Ashok Leyland may report over 27 per cent YoY revenue growth," said the earnings preview report by BoB Capital.

India Subcontracting Expo 2021 to highlight trade opportunities in India for US businesses

19 Jan, 2021, 10:06AM | Economic Times

NEW YORK: India offers tremendous business opportunities to the US in various sectors such as manufacturing and the COVID-19 pandemic has presented a "unique" opportunity to the country to work with America to build resilient and reliable supply chains that will have the ability to weather future shocks, eminent speakers told a virtual forum ahead of the India Subcontracting Expo. The India Subcontracting Expo 2021 focusing on the North American region is scheduled to be held February 16-19 virtually. The expo will bring together exhibitors from India and buyers from Canada, Mexico and the US. Ahead of the expo, Indian government officials, diplomats and industry leaders highlighted business opportunities that the expo will present for both the US and India in areas of trade and investment and help boost economic ties during a curtain raiser event organised Monday by the Engineering Export Promotion Council (EEPC) of India. Joint Secretary (EP-Engg.) in the Ministry of Commerce and Industry Srikar K Reddy said at the curtain raiser event that the global economy remained virtually stalled due to economic lockdowns imposed across nations to combat the pandemic and as nations begin the process of re-opening their economies, restoration to pre-COVID stage is likely to take some more time. He said India has emerged as one of the most promising economies for developed regions, especially in terms of trade and investment. He said initiatives introduced by the Narendra Modi government under the 'Aatmanirbhar Bharat Abhiyaan' are attracting attention of nations for trade and investment opportunities in India. He added that India offers tremendous business opportunities in various sectors, especially in manufacturing to North America. Reddy said a trade show with North America in the "strategically important" segment of subcontracting is very timely and will further promote Indian engineering businesses amid the pandemic. "I strongly believe that this expo will surely be mutually beneficial for both India and North America, and will be helpful for Indian engineering, especially the MSMEs to find new and sustainable businesses," he said, according to a statement. Manoj Mohapatra , Minister (Commerce) at the Embassy of India in Washington DC said trade, investment and economic cooperation forms an important pillar of the India-US partnership. He added that New Delhi and Washington are extensively engaging with each other to conclude a trade package, which will create growth opportunities for Indian and US businesses. Mohapatra said at the virtual curtain raiser that COVID-19 has presented India with a rare and unique opportunity to work with the US to build resilient, reliable, and trustworthy supply chains, which will have the ability to weather future shocks. He highlighted that US was India's largest engineering goods export market in 2019 with 6.4 billion dollars of exports. The goods include products such as iron and steel articles, auto components and electrical machinery. Stressing that Indian exports have remained resilient despite the pandemic, he said that Indian exports in electrical machinery and parts thereof as well as automobiles and auto components have particularly shown strong growth in 2020. Mohapatra added that this highlights that while there was a commensurate decline in US global imports, India is outperforming the competition. Indian exports registering a significant increase in this product group despite the pandemic indicates that India is finding its place in the global supply chains, particularly supply chains for advanced manufacturing. It is also indicative of the increased competitiveness of Indian exporters/products in these lines, he said. Mohapatra outlined advice to exporters including that they should diversify product base to cover products which have shown resiliency during the pandemic. "This will reduce fluctuation in demand and ensure consistent income streams," he said. He added that American businesses appreciate transparency, and clear and timely communication. Indian exporters can tap the US market by keeping lines of communications always open for queries and follow-ups, he said. EEPC India Chairman Mahesh Desai said that North America is the largest destination for India's merchandise as well as engineering exports and the pandemic has brought new opportunities across several segments of manufacturing to strengthen bilateral trade and investment relations with this region. "Subcontracting, as a major part of the manufacturing sector, is likely to be one of the major beneficiaries. Continuous support from the embassies will be instrumental to ensure efficient exchange of resources so that the underlying potential can be exploited to the maximum possible extent," Desai said. "Make in India 2.0 has been launched as an integral part of Atmanirbhar Bharat with a view to accelerate the process of converting India into a 'Global Manufacturing Hub'... Inviting leading global manufacturers to set up their production base in India will not only upgrade Indian manufacturing, but will also increase Indian overseas shipments," he said adding that the expo next month will further strengthen socio-economic ties between India and North America, especially in the areas of trade and investments.

Stocks to watch: Mindtree, Maruti, Adani Green, YES Bank, Apollo Hospitals

19 Jan, 2021, 08:44AM | Business Standards

The Nifty futures on SGX were trading nearly 100 points up at 14,373 around 8.30 am, indicating a gap-up start for benchmark indices in Tuesday's session. Here are the top stocks to track in today's session: Mindtree : The consolidated net profit of the IT company jumped 65.7 per cent to Rs 326.5 crore in the December 2020 quarter. The company said its deal pipeline continues to be healthy and strong. IndiaMart Intermesh: The firm posted a 29 per cent rise in its consolidated net profit to Rs 80 crore for the third quarter ended December 31, 2020. Maruti Suzuki : The automaker increased the price for select models by up to Rs 34,000 to offset adverse impact of rising input costs with effect from January 18. Q3 earnings: ICICI Lombard General Insurance Company, Alembic Pharmaceuticals, L&T Infotech, Tata Communications and CSB Bank among 26 companies set to announce their December quarter numbers today. L&T Finance: The board has fixed the price at Rs 65 per share for the Rs 3,000 crore rights issue which opens for subscription on February 1. Adani Green: Promoter of Adani Green Energy, Adani Trading Services LLP, on Monday offloaded shares worth nearly Rs 3,309 crore in the firm, through open market transactions. Meanwhile, Acme Trade and Investment bought 3.61 crore shares at Rs 915.37 per share. Yes Bank: The board will meet on Friday to consider a proposal for further fundraising through various means, according to the private sector lender. Indiabulls Real Estate: The consolidated net profit of the firm rose 64 per cent to Rs 80.69 crore for the quarter ended December. The company's total income was Rs 756.81 crore during the third quarter of the fiscal year, against Rs 1,317.70 crore a year ago. Cholamandalam Investment: The company's managing director Arun Alagappan has resigned to assume larger responsibilities within the group. IRB Infra: The company posted a 56 per cent decline in its consolidated net profit to Rs 69.48 crore for the quarter ended December 31, 2020. Man Industries bags new orders worth Rs 250 cr,ore to be executed over 5 months. Motherson Sumi: Auto components major Motherson Group on Monday said it will acquire a majority stake in Turkey's Plast Met Group, a key supplier of plastic moulded parts, related sub-assemblies and injection moulding tools, for an undisclosed amount. Apollo Hospitals: Apollo Hospitals launched a QIP to raise as much as Rs 1,000 crore with floor price set at Rs 2,508.58 per share. Tata Steel: According to a media report, talks of a potential acquisition of the company's IJmuiden steel mill are running out of steam as SSAB's two largest shareholders are skeptical to the idea. GAIL India: The board has approved a proposal for the buyback of 6,97,56,641 equity shares at a price of Rs 150 per share, for upto Rs 1,046.35 crore. RBL Bank: The private lender has approved the re-appointment of Vishwavir Ahuja as the Managing Director & Chief Executive Officer of the bank for a period of three years, from June 30, 2021 to June 29, 2024.

US Capitol briefly put under lockdown due to 'external security treat'

18 Jan, 2021, 10:35PM | Business Standards

The Capitol Hill, the complex comprising of US Congress and its buildings, was briefly put under lockdown on Monday due to "an external security treat", local police said after a fire was reported a few blocks away. "All buildings within the Capitol Complex: External security threat, no entry or exit is permitted, stay away from exterior windows, doors. If outside, seek cover," US Capitol Police said in a message, sending a security scare. The lockdown was later lifted. The American capital has been put under heightened security with the deployment of nearly 25,000 National Guards to prevent repeat of January 6 incident when thousands of supporters of outgoing US President Donald Trump stormed the Capitol Hill disrupting the constitutional process of certification of electoral college votes by a joint session of the US Congress. Five people died in the violence that followed. Lawmakers were forced to take shelter at safe places. In days after that an unprecedented level of security has been placed in entire Washington DC. The FBI and other intelligence agencies have received reports of armed violence in the city. The entire city has now been converted into a garrison city with thousands of armed national guards being placed in the nook and corners of the city and eight feet high iron barricade around key places including Capitol Hill and the White House. US Capitol Police said that the message of lockdown was due to an "external security threat located under the bridge on I-295 at First and F Streets SE." The lockdown was later lifted. Local media reports said that there was a fire a few blocks away from the Capitol Hill resulting in the security message. Personnel participating in rehearsal of the inauguration were evacuated as abundance of caution. President-elect Joe Biden is slated to be sworn in as the 46th President of the United States on January 20. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Here are the most anticipated movies of 2021 and how to watch them

18 Jan, 2021, 09:07PM | CNBC

Jamillah Ali (L) and Nadia Ali, both of Nevada, carry snacks as they head to an auditorium to see the movie "Star Wars: Episode V - The Empire Strikes Back" at AMC Town Square 18 on August 20, 2020 in Las Vegas, Nevada.Ethan Miller | Getty Images Entertainment | Getty Images In a normal year the list of movies destined for cinemas would be set in stone. At best, the 2021 slate is written in sand.The coronavirus pandemic has created a difficult landscape for studios. Rising case numbers are keeping moviegoers at home and closing cinemas around the country. This has lead companies to make hard decisions about which movies to keep on the calendar and which to push.While Warner Bros. has committed to placing its films in theaters and on HBO Max on the same day, other studios are working with cinemas to compromise on theatrical windows. Comcast-owned Universal has brokered deals to allow it to bring its movies to premium video on-demand sooner than previous years.Disney, on the other hand, has tried a number of different strategies from regular releases to launching films on its streaming service. It has also decided to try a day-and-date release of one of its films, "Raya and the Last Dragon," which is slated for a March release.So far in January, a few films have maneuvered around the calendar. Most notably, Sony's "Morbius" went from a March release to one in October. As the pandemic rages on, there are fears that more films could shift to new days.As of publication, here is the list of the most anticipated movies on the 2021 calendar and how to watch them. February Feb. 26: "Tom and Jerry""Tom and Jerry" is a movie coming from Warner Bros. that will debut in theaters and HBO Max on Feb. 26. The film is a combination of live-action and animation, as the titular characters of Tom and Jerry appear as animated creatures.After being kicked out of their house, Tom and Jerry call a truce and decide to go their separates ways. The two later cross paths in New York City, where Jerry has taken up residence in a fancy hotel. He has caused all sorts of trouble for the staff and they want him gone before an important wedding is due to take place at the hotel.Kayla (Chloe Grace Moretz) is tasked by wealthy hotel manager Mr. DuBros (Rob Delaney) to get rid of the mouse. She hires Tom the cat to catch Jerry, reigniting their slapstick antics. Michael Pena, Ken Jeong and Colin Jost round out the rest of the live-action cast. March March 5: "Raya and the Last Dragon"Disney's "Raya and the Last Dragon" will debut in theaters on March 5. That same day it will be available for purchase through the Disney+ streaming service for $30.The animated film takes place in Kumandra, a place where humans and dragons once lived together in harmony. However, when sinister monsters known as the Druun threatened the land, the dragons sacrificed themselves to save humanity. 500 years later, the Druun have returned. A lone warrior named Raya has been tasked with tracking down the last dragon in order to stop these creatures for good.Kelly Marie Tran voices Raya and Awkwafina is Sisu, a water dragon who can transform into a human. Sisu is the last dragon in existence.March 5: "Chaos Walking"After several delays â some related to the pandemic and some to deal with reshoots â "Chaos Walking" is finally set to debut in theaters on March 5.In the not-too-distant future, Todd Hewitt (Tom Holland) discovers Viola (Daisy Ridley), a mysterious girl who crash landed on the plant. On this planet all women have disappeared and all of the men are afflicted by "the Noise," a force that puts all their thoughts on display.Viola's life is threatened and Todd vows to protect her, sending them on a journey that uncovers the planet's dark secrets.Mads Mikkelsen, Cynthia Erivo, Nick Jonas and David Oyelowo are also part of the cast.March 12: "The King's Man"The third film from the "Kingsman" franchise arrives on March 12 in cinemas. The spinoff takes place decades before Eggsy is indoctrinated into the secret organization.The film centers around a collection of history's worst tyrants and criminal masterminds, who have gathered to plot a war that will wipe out millions. One man and his protege must act quickly to stop them."The King's Man" has a star-studded cast that includes Ralph Fiennes, Harris Dickinson, Gemma Arterton, Rhys Ifans, Matthew Goode, Tom Hollander, Daniel Bruhl, Djimon Hounsou, Charles Dance and Aaron Taylor-Johnson.March 26: "Godzilla v. Kong"Originally slated for May, "Godzilla v. Kong" will now arrive on HBO Max and in theaters on March 26. The film takes place after the events of "Godzilla: King of the Monsters" and features an epic showdown between Godzilla and the mighty Kong.Meanwhile, Monarch, a secret scientific organization, embarks on a mission that unearths clues to the titans' origins. April April 2: "No Time to Die"Five years after the capture of Ernst Stavro Blofeld (Christoph Waltz), James Bond (Daniel Craig) has left active service. Bond is approached by a friend from the CIA who asks him to help search for a missing scientist. When Bond discovers that the scientist has been abducted, he is sent on a path that leads to a villain whose schemes could see the death of millions.Rami Malek, Lea Seydoux, Lashana Lynch, Ben Whishaw, Naomie Harris, Jeffrey Wright, Ralph Fiennes and Ana de Armas round out the cast.The film will debut in theaters on April 2. Daniel Craig stars as James Bond in "No Time To Die."Source: MGM April 2: "Peter Rabbit 2: The Runaway"The second "Peter Rabbit" arrives in theaters on April 2. The film follows up with Bea (Rose Byrne) and Thomas (Domhnall Gleeson) and their rambunctious rabbits. Peter (James Corden) can't shake his mischievous ways, however, and adventures outside the garden.Peter finds himself in a world where mischief is accepted, but when his family risks everything to come looking for him, he needs to decide what kind of bunny he wants to be.April 16: "Mortal Kombat""Mortal Kombat," a film based on the iconic video game franchise, is set to hit theaters and arrive on HBO Max on April 16. The film serves as a reboot of the previous "Mortal Kombat" films.Mortal Kombat is a intergalactic tournament of ancient martial arts. The film seems to follow Shaolin Monk Liu Kang from Earth, who is invited as a competitor."Mortal Kombat" stars Ludi Lin, Joe Taslim, Tadanobu Asano, Jessica McNamee, Mehcad Brooks, Josh Lawson, Lewis Tan, Chin Han, and Hiroyuki Sanada.April 23: "A Quiet Place II"Emily Blunt, Millicent Simmonds and Noah Jupe return as the Abbott family. After the death of patriarch Lee (John Krasinski), the family must leave their home and face the terrors of the outside world, fighting for their survival in silence.They quickly realize that the creatures that hunt by sound aren't the only threats in their world.The film is set to debut in theaters on April 23. May May 7: "Black Widow"After the events of "Captain America: Civil War," in which the Avengers become fractured, Natasha Romanoff, aka Black Widow, finds herself alone and facing a dangerous conspiracy with ties to her past.Natasha reunites with her found family played by Florence Pugh, David Harbour and Rachel Weisz and battles against a villain called Taskmaster.Taskmaster is a character that studies his opponents' fighting style in order to mimic their strategies and use their own moves against them. From the trailer, it is apparent that he's already picked up a few techniques used by Avengers like Iron Man, Captain America, the Winter Soldier and Spider-Man.The film arrives in cinemas on May 7. Scarlett Johansson stars as Natasha Romanoff, AKA Black Widow, in Marvel's "Black Widow."Disney | Marvel May 21: "Free Guy"In an open world video game called "Free City," Guy (Ryan Reynolds) is a non-player character (NPC) that works as a bank teller. However, Guy becomes aware that his world is a video game after a program developed by programmers Milly (Jodie Comer) and Keys (Joe Keery) is inserted into the game by publisher Antoine (Taika Waititi).Guy takes steps to make himself the hero, creating a race against time to save the game before the developers can shut it down."Free Guy" arrives in theaters on May 21.May 28: "F9"The ninth installment in the "Fast and Furious" franchise arrives on May 28. In this film, Dominic Toretto (Vin Diesel) and his family must face Dominic's younger brother Jakob (John Cena), who is working with their old enemy Cipher (Charlize Theron).Michelle Rodriguez, Tyrese Gibson, Chris "Ludacris" Bridges, Jordana Brewster, Nathalie Emmanuel and Sung Kang are all set to return.May 28: "Cruella"Ever wonder how Cruella de Vil became the iconic villain of "101 Dalmations?" The Disney live-action film "Cruella" explores just that.Set in 1970s London, young fashion designer Estella de Vil (Emma Stone) becomes obsessed with fur, particularly the fur of Dalmatians. The film delves into how she becomes the ruthless and terrifying villain we all know.Emma Thompson also stars in the film which debuts on May 28. June June 11: "Ghostbusters: Afterlife"After being evicted from their home, a single mom and her two children move to a farm in Oklahoma that they inherited from their late grandfather. When the town experiences a series of unexplained earthquakes, the children discover the family's link to the original Ghostbusters.The film debuts on June 11 and features some familiar faces like Bill Murray, Dan Aykroyd and Sigourney Weaver as well as some newcomers to the franchise like Mckenna Grace, Finn Wolfhard and Paul Rudd. Still from Sony's "Ghostbusters Afterlife."Sony June 18: "Luca"Pixar's next film arrives on June 18 and explores a beautiful seasonal town on the Italian Riviera."Luca" is a coming-of-age story about a young boy and his adventures with his new best friend Alberto. All that fun is threatened when a secret is revealed: Alberto is a sea monster from another world living just below the water's surface.June 18: "In the Heights"Based on Lin-Manuel Miranda's Tony Award-winning musical, "In the Heights," the film follows a bodega owner named Usnavi (Anthony Ramos) who saves every penny and dreams of returning to the Dominican Republic, where his family is from.The film weaves together the lives of several others living in the Washington Heights neighborhood, exploring themes of gentrification and cultural identity through song.The film arrives in theaters and on HBO Max on June 18.June 25: "Venom: Let There Be Carnage"In the sequel to 2018's "Venom," Eddie Brock (Tom Hardy) is an investigative journalist who is the host of an alien symbiote known as Venom. He is set to face off against psychotic serial killer Cletus Kasady (Woody Harrelson), who has become the host of another alien symbiote known as Carnage.Michelle Williams returns as Eddie's ex-fiance Anne and Naomie Harris portrays Shriek, Kasady's love interest. The film arrives in theaters on June 25. July July 2: "Top Gun: Maverick"Tom Cruise and Val Kilmer return in the sequel to "Top Gun," as Pete "Maverick" Mitchell and Tom "Iceman" Kazansky.The film follows Cruise's Maverick, who continues to push the envelope after years of service as one of the Navy's top aviators. He must confront the past while training a new squad for a dangerous mission, one that demands the ultimate sacrifice.The film arrives in theaters on July 2.July 2: "Minions: Rise of Gru"In the heart of the 1970s, a 12-year-old genius named Felonius Gru is growing up in the suburbs. A fanboy of a super villain group known as the Vicious 6, Gru hatches a plan to become evil enough to join them.After the Vicious 6 fire their leader, Gru interviews to become their newest member. However, things go south after Gru steals a precious object with the help of his little yellow minions. After becoming the mortal enemy of the Vicious 6, Gru must turn to the group's former leader for guidance.The animated film hits theaters on July 2. "Minions: The Rise of Gru" is the sequel to the 2015 film, "Minions," and spin-off/prequel to the main "Despicable Me" film series.Universal July 9: "Shang-Chi and the Legend of the Ten Rings"Marvel is set to introduce a new hero in July, Shang-Chi, one of the greatest martial artists in the world played by Simu Liu.The film follows Shang-Chi after he is drawn into the clandestine Ten Rings organization. There he is forced to confront his past, which he thought he had left behind.Awkwafina stars as Shang-Chi's best friend Katy.July 16: "Uncharted"Based on the "Uncharted" video game series, the Tom Holland-led action-adventure film follows Nathan Drake, a young fortune hunter who claims to be the descendant of the famed English explorer Sir Francis Drake.In the film, due in theaters July 16, Nathan teams up with Victor "Sully" Sullivan (Mark Wahlberg), a fellow fortune hunter, mentor and father figure, after finding the whereabouts of El Dorado, the fabled South American city of gold.July 16: "Space Jam: A New Legacy"The long-awaited follow-up to 1996's "Space Jam" arrives on HBO Max and in theaters on July 16.The film features LeBron James as himself. When LeBron and his son Bronny are trapped in a virtual space by a rogue algorithm named AI-G Rhythm (Don Cheadle), LeBron must get them home safely by leading a team of Looney Toons to victory over the evil AI's digitized champions on the basketball court.July 30: "Jungle Cruise"After the box office success of the "Pirates of the Caribbean" films, Disney has used its iconic Jungle Cruise ride as inspiration for a movie starring Emily Blunt and Dwayne Johnson.Set in the early 20th century, a riverboat captain named Frank (Johnson) takes a scientist (Blunt) and her brother (Jack Whitehall) on a mission into the jungle to find the Tree of Life. Along their journey, the trio must fight dangerous wild animals and a competing German expedition.The film arrives in theaters on July 30. August Aug. 6: "The Suicide Squad"A sequel to "Suicide Squad," "The Suicide Squad" follows imprisoned convicts from Task Force X as they are sent on a new mission.These prisoners, iconic villains from DC lore, must destroy Jotunheim, a Nazi-era prison and laboratory that held political prisoners and conducted experimentations. Of course, with crazed criminals, hijinks ensue as they seek to fulfill their mission and reduce time from their jail sentences.The film has a packed cast that includes Margot Robbie, Idris Elba, John Cena, Joel Kinnaman, Peter Capaldi, Viola Davis, Jai Courtney, Alice Braga, Pete Davidson, Nathan Fillion and Michael Rooker. VIDEO5:1105:11What a box office recovery could look likeWorldwide Exchange September Sept. 17: "The Boss Baby: Family Business"The sequel to "The Boss Baby" finds Theodore Templeton and his brother estranged. The pair agree to take a magical formula that will turn them into babies for 48 hours so that they can go undercover to prevent an evil genius from turning fellow toddlers into monstrous brats.The film arrives in theaters on Sept. 17.Sept. 17: "Death on the Nile"Kenneth Branagh returns as famed Belgian detective Hercule Poirot in "Death on the Nile," due in theaters Sept. 17.When a death occurs on the S.S. Karnak, Poirot must identify which of the passengers is the killer before they strike again. The film also stars Tom Bateman, Annette Bening, Russell Brand, Gal Gadot and Armie Hammer. October Oct. 1: "Dune"Based on the novel by Frank Herbert, "Dune" is a science fiction film directed by Denis Villeneuve that will arrive in theaters and on HBO Max on Oct. 1.In the distant future, Duke Leto Atreides (Oscar Isaac) is entrusted with the protection of the most valuable element in the galaxy, a drug called "the spice," which extends human life and provides accelerated levels of thought.However, a bitter betrayal sends Atreides' son Paul (Timothee Chalamet) and his mother Jessica (Rebecca Ferguson) to seek out the Fremen, natives of the planet Arrakis who live deep in the desert.The film also stars Josh Brolin, Stellan Skarsgard, Dave Bautista, Zendaya, Jason Momoa and Javier Bardem.Oct. 8: "Morbius"Suffering from a rare blood disease, Michael Morbius (Jared Leto) tries a dangerous cure that afflicts him with a form a vampirism.The Marvel film produced by Sony is set to hit theaters on Oct. 8 and features a cast comprised of Matt Smith, Adria Arjona, Jared Harris and Tyrese Gibson. Additionally, Michael Keaton, who portrayed Adrian Toomes, aka Vulture in "Spider-Man: Homecoming," is set to appear in the film. Although it has not been confirmed if he is reprising his role as Toomes.Oct. 15: "Halloween Kills"Set on Halloween 2018, "Halloween Kills" is the next installment in the "Halloween" franchise. Jamie Lee Curtis returns as Laurie Strode, who must team up with her family and work with old allies to form a mob against Michael Myers, who is still loose in Haddonfield.The film arrives in theaters on Oct. 15. A scene for the movie Halloween released in 2018.Â Source: Universal Studios November Nov. 5: "Eternals"After an unexpected tragedy following the events of "Avengers: Endgame," the Eternals, an immortal race of aliens that have secretly lived on Earth for more than 7,000 years must reunite to protect humanity from their evil counterparts, the Deviants.It stars anÂ ensemble castÂ that includesÂ Angelina Jolie,Â Richard Madden,Â Kumail Nanjiani,Â Lauren Ridloff,Â Brian Tyree Henry,Â Salma Hayek,Â Lia McHugh,Â Don Lee,Â Kit Harington,Â Gemma Chan, andÂ Barry Keoghan.The film will be released in cinemas on Nov. 5.Nov. 24: "Encanto"Little is known about Disney's Thanksgiving film offering "Encanto." Teased in December, the film appears to center around a Colombian girl who grows up as the only non-magical member of her family.Disney has not announced a voice cast yet. The film arrives in cinemas on Nov. 24. December Dec. 10: "West Side Story"Directed by Steven Spielberg, "West Side Story" is a filmed adaptation of Stephen Sondheim's musical of the same name.Modeled after Shakespeare's "Romeo and Juliet," the film centers around teenagers Tony and Maria, who fall in love despite having affiliations with rival street gangs.Ansel Elgort portrays Tony and Rachel Zegler stars as Maria. The film is set to hit the big screen on Dec. 10.Dec. 17: "Spider-Man 3"Little is known about the plot of Tom Holland's third standalone Spider-Man film, which is due in theaters just ahead of the holidays.In addition to the return of Zendaya as MJ, it has also been confirmed that Jamie Foxx will return as Electro, from "The Amazing Spider-Man 2," which featured Andrew Garfield as Spider-Man.Alfred Molina, who portrayed Doctor Octopus during Tobey McGuire's turn as the famed webslinger, is also confirmed as appearing in the film. Benedict Cumberbatch's Dr. Strange will also appear.There has been speculation that other characters from the MCU or even from the previous iterations of Spider-Man will join the cast, but Disney has not confirmed these rumors. Tom Holland reprises his role as Peter Parker / Spider-Man in Sony's "Spider-Man: Far From Home."Sony Dec. 22: "Matrix 4"The fourth installment in the "Matrix" franchise will hit theaters on Dec. 22. Little is known about the plot of the film, but it has been confirmed that Keanu Reeves, Carrie-Anne Moss and Jada Pinkett Smith will return in their previous roles as Neo, Trinity and Niobe.Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

Washington DC converted into garrison city ahead of Biden's inauguration

18 Jan, 2021, 09:01PM | Business Standards

Ahead of the inauguration of President-elect Joe Biden and Vice President-elect Kamala Harris on Wednesday, the American capital has been virtually turned into a garrison city, amidst multiple reports of threats and more armed violence by pro-Trump supporters to disrupt the official ceremonies. In the aftermath of last week's Capitol riots, Washington D.C. is preparing for the scaled down inauguration of the 46th US President with extreme security measures - closing roads, erecting barbed wire fences and deploying more than 25,000 National Guards along with thousands of local police personnel and those from other security agencies. The area in and around Capitol Hill, a large part of Pennsylvania Avenue and the White House has been made out of bounds for the general public with eight-feet high iron barricades being erected. US Marshals are deploying 4,000 officers to Washington D.C. Major parts of the majestic National Mall, which during the inauguration is usually thronged by thousands of people, have been closed off. The entire city is on high-alert as authorities are receiving multiple reports of violent threats from various groups at the level of the incident that happened on January 6 -- when hundreds of supporters of outgoing President Donald Trump stormed Capitol Hill, disrupting the constitutional process of certification of electoral college votes. The unprecedented violence forced hundreds of lawmakers to take shelter at safe locations within the iconic building amidst vandalism by the mob. At least five people, including a police officer, died in the incident. Despite the heightened security concerns, Biden plans to go ahead with the inauguration ceremony in its traditional location. In addition to converting downtown Washington D.C. into a fortress, security in and around 50 State Capitols has also been put on high alert to ensure a peaceful transition of power. ALSO READ: A voice in everything: Harris prepares for key role in Biden's White House “I think this will be an inauguration unlike any other. It was already destined to be, given Covid concerns and some of the limited seating and public access. But having our fellow Americans storm the Capitol in an attempt to overthrow the government certainly warrants heightened security,” Mayor of Washington D.C., Muriel Bowser, told NBC News. “Our police department is working with our federal law enforcement partners and the United States Army also has a plan to pivot if we have any attacks in our neighbourhoods,” she said. "We don't want to see fences. We definitely don't want to see armed troops on our streets. But we do have to take a different posture,” Bowser said. The Federal Bureau of Investigation (FBI) in its internal bulletins has warned of the potential for violence in Washington DC and at all 50 state Capitols. "Our posture is aggressive. It's going to stay that way through the inauguration," FBI Director Christopher Wray said on the agency's plans for security on Wednesday. ALSO READ: 73% drop in election misinformation since Trump's Twitter ban: Report He added that the agency was monitoring "extensive" online chatter about further potential armed protests and issued a warning to the men and woman who wreaked havoc on the Capitol. US defence officials say they are also worried about an insider attack or other threat from service members involved in securing Biden's inauguration, prompting the FBI to vet all of the 25,000 National Guard troops being deployed here for the event. Police have arrested two people near security checkpoints in Washington, D.C. A 22-year-old Virginia man carrying a firearm, three high-capacity magazines and 37 rounds of unregistered ammunition was arrested on Sunday near the Capitol Hill. On Saturday, a woman claiming to be a law enforcement officer and part of the presidential Cabinet was stopped at an inauguration checkpoint, where U.S. Capitol Police say they arrested her for impersonating an officer as well as failing to obey and fleeing from law enforcement. “We are concerned, certainly, about these threats in other places,” incoming White House Chief of Staff Ron Klein said. “I do think the Secret Service and all their assets, the help they're getting from the National Guard, will keep the inauguration itself safe and the official ceremonies in Washington safe. But these broader threats are concerning,” Klein said. He said President Trump did incite the mob on January 6, and that's "very, very disconcerting". Jamie Raskin, the lead House impeachment manager, called Trump's actions “the most dangerous crime committed against the United States,” saying that the rioters “came within a hair's breadth of hanging the vice president.” Vice President Mike Pence was in the initial stages of presiding over the congressional certification of the Electoral College vote that Biden won over Trump when the mob stormed the Capitol. Raskin accused Trump, a Republican, of doing nothing to stop his supporters from storming the US Capitol. “He was watching it on TV, an insurrection tailgate party,” he told CNN. No date has been set for Trump's impeachment trial in the Senate on a single charge that he incited insurrection by urging thousands of his supporters to fight to overturn his loss to Biden, a Democrat. The trial of Trump, the only US president to be impeached twice, could start after Biden's inauguration. If convicted by a two-thirds vote in the Senate, Trump could be barred, on a simple majority vote, from ever holding public office again. Before he leaves office, however, Trump is expected to grant more than 100 pardons, possibly to key supporters convicted of crimes or facing trials.

Market Wrap, Jan 18: Here's all that happened in the markets today

18 Jan, 2021, 05:48PM | Business Standards

With largely all the positives priced-in the markets, equity indices continued to consolidate at current levels on Monday with bouts of volatility keeping investors on the edge. Volatility index, India VIX, jumped over 4 per cent in the intra-day trade today before cooling-off to settle 1.2 per cent higher at 24 levels. That apart, expectations that the Reserve Bank of India may set out proposals in a discussion paper this week, recommending that bigger shadow banks hold a share of deposits in cash, gold or government securities, weighed on financial counters. Shares of HDFC fell 2.4 per cent, while Bajaj Finance and Bajaj Finserv dropped over 3 per cent, dragging down the Nifty50 index. However, amid up to 2 per cent gains in Reliance Industries and HDFC Bank, the benchmark S&P BSE Sensex and Nifty50 managed to end off day's low. The S&P BSE Sensex index ended at 48,564 levels, down 470 points or 0.96 per cent, on the BSE with RIL, Titan, HDFC Bank, and ITC ending the day as the only gainers. In the intra-day deals, shares of HDFC Bank rose over 2 per cent and hit a fresh recor dhigh of Rs 1,503 on the BSE on the back of stable December quarter results. Nearly all brokerages have revised their target price on the stock with a maximum upside of 27 per cent. The stock settled 1 per cent higher at Rs 1,483 on the BSE. Moreover, shares of ITC extended its gain into sixth straight day on Monday, advancing 1.4 per cent in the intra-day deals today, and hit an over 11-month high of Rs 221. The stock settled 0.7 per cent higher on the BSE at Rs 219. On the downside, ONGC (down 5 per cent), Sun Pharmaceuticals, Bajaj Finance, and PowerGrid remained as top drags. The index hit an intra-day low of 48,404 today. Nifty50, meanwhile, gave up the 14,300-mark and ended at 14,281 levels, erasing 152 points or 1 per cent. 44 of the 50 constituents ended the day in the red. In the broader market, the S&P BSE MidCap index underperformed the frontline indices and ended at a 2-week low of 18,525 levels, down 2 per cent. The S&P BSE SmallCap index closed with a 1.89 per cent cut. Market breadth remained in the favour of bears as 2,089 stocks declined on the BSE today, as against 938 stocks that rose. On the sectoral front, all the indices ended the day in the red with the Nifty Metal index sliding over 4 per cent. Individually, SAIL, Jindal Steel, Tata Steel, and Hindalco skid up to 6 per cent on the NSE. That apart, Nifty Realty, Pharma, and Auto index each slipped 2 per cent on the NSE. On the earnings front, IT firm Mindtree today reported a net profit of Rs 326.5 crore for the December quarter of FY21. The revenue came in at Rs 2,023 crore for the quarter with EBIT margins at 19.6 per cent. Lastly, in the primary market, the 3-day initial public offer of IRFC was subscribed around 57 per cent on the first day of the issue till 4:!5 pm. Global cues Global stock markets sank on Monday as soaring Covid-19 cases offset investor hopes of a quick economic recovery. European stocks as measured by the STOXX 600 index opened 0.3 per cent weaker, Germany's DAX fell 0.2 per cent, France's CAC 40 fell 0.3 per cent, and Italy's FTSE MIB index slipped 0.3 per cent. Britain's FTSE 100 index also fell 0.1 per cent. In Asia, Chinese blue chips gained 0.8 per cent after the economy was reported to have grown 6.5 per cent in the fourth quarter, on a year earlier, topping forecasts of 6.1 per cent. Elsewhere in Asian markets, Japan's Nikkei slipped 0.8 per cent. MSCI’S All Country World Index, which tracks stocks across 49 countries, fell 0.1 per cent, down for a second session after hitting record highs only last week.

Jindal Steel in talks to get Covid-19 vaccines for its employees

18 Jan, 2021, 05:35PM | Business Standards

Steel producer Jindal Steel and Power Ltd said on Monday it was reaching out to COVID-19 vaccine manufacturers for a bulk supply of doses for its employees after the Indian government kicked off one of the world's largest vaccination campaigns over the weekend. "Will try to get these doses after completion of all frontline COVID warriors' vaccination," Pankaj Lochan, chief human resource officer, JSPL, said in a statement, making it among the first big companies to make a public statement on vaccination plans. Another steel producer, Tata Steel Ltd said the company would vaccinate its employees as per the government guidelines when vaccines were made available. India began vaccinating health workers and other frontline workers, such as those in sanitation and security, followed by about 270 million people older than 50 or deemed high-risk because of pre-existing medical conditions. India is currently using Britain's Oxford University/AstraZeneca vaccine, which is also being produced in India, and a government-backed vaccine developed by India's Bharat Biotech. "We have also categorised employees in order of vulnerability, so the ones above the age of 50 years and those who were infected from COVID-19 can be vaccinated first," Lochan said. JSPL, however, did not provide details on vaccine manufacturers that the company was getting in touch with or the number of doses it was looking for. (Reporting by Nallur Sethuraman in Bengaluru; Editing by Shailesh Kuber)

Steel companies engage with vaccine makers for bulk supply of doses for employees

18 Jan, 2021, 12:37PM | Economic Times

New Delhi: Leading steel-producing companies in the country are drawing up plans to vaccinate their employees across offices and plant sites with the start of the nationwide COVID-19 vaccination drive. Domestic steel makers like -- Tata Steel, ArcelorMittal Nippon Steel India (AMNS India) and Rashtriya Ispat Nigam Ltd (RINL) said they will continue to support the government in the nationwide drive and will wait till vaccines are available for corporates. Meanwhile, players like JSW Steel and Jindal Steel and Power Limited (JSPL) are already in talks with Indian vaccine makers to place orders according to their requirements. JSPL Chief Human Resource Officer said "we are reaching out to vaccine manufacturers for bulk supply of doses and will try to get these doses after completion of all frontline COVID warriors' vaccination." The company has already categorised employees in order of vulnerability, so the ones above the age of 50 years and those who were infected from COVID-19 can be vaccinated first. JSPL will seek the guidance of the government and will try to get all its employees vaccinated, he said adding the company has been conducting RT-PCR test, a test which detects COVID-19 virus, of all employees twice a month since September 2020. Meanwhile, JSW Group which employs 55,000 people directly and indirectly, has plans to vaccinate its staff working at its corporate offices, plants and townships in next financial year. The group is in talks to buy 2 lakh doses initially from one of the Indian vaccine makers and inject double shots once authorities allow private corporate vaccination programme. The first COVID-19 vaccine shots in India were given on Saturday to nearly two lakh frontline healthcare and sanitary workers as Prime Minister Narendra Modi rolled out the world's largest inoculation drive against the pandemic that has caused 1,52,093 deaths and upended millions of lives in the country. Oxford COVID-19 vaccine Covishield, manufactured by the Serum Institute of India, and Covaxin of Bharat Biotech are the two vaccines being given to frontline workers including doctors, nurses, paramedical staff, ambulance drivers and other medical staff besides sanitation workers, police etc. State-owned RINL and Steel Authority of India Limited (SAIL) have sent details of its employees to the administration and who will be vaccinated based on priority. Both SAIL and RINL also run hospitals at their plant sites. A Tata Steel Spokesperson said the company has been working very closely with the government and respective state governments of Jharkhand and Odisha from the start of the pandemic and serving the community with medical facilities at various locations of its operations. Tata Main Hospital (TMH) at Jamshedpur, in Jharkhand has been the largest COVID care facility in the state with over 1,000 beds dedicated for the purpose. As on date, TMH is the designated hospital for conducting COVID vaccine trials. In line with the priority decided by the government, the vaccination is being started with 3,000 health workers at TMH from January 16 onwards. "We will continue to work with the government and as and when further vaccines are made available, we would vaccinate our employees as per the guidelines. As always, Tata Steel stands committed to the safety and security of its employees across locations of its operations," the spokesperson said. AMNS India CEO Dilip Oommen said, "AMNS India has always given the highest priority to the health and safety of its employees. Whenever the vaccines are available to the corporates, we shall certainly take them on priority and provide it free of cost to all the employees."

Steel cos engage with vaccine makers to move bulk supply for employees

18 Jan, 2021, 12:28PM | Business Standards

Leading steel-producing companies in the country are drawing up plans to vaccinate their employees across offices and plant sites with the start of the nationwide COVID-19 vaccination drive. Domestic steel makers like -- Tata Steel, ArcelorMittal Nippon Steel India (AMNS India) and Rashtriya Ispat Nigam Ltd (RINL) said they will continue to support the government in the nationwide drive and will wait till vaccines are available for corporates. Meanwhile, players like JSW Steel and Jindal Steel and Power Limited (JSPL) are already in talks with Indian vaccine makers to place orders according to their requirements. JSPL Chief Human Resource Officer said "we are reaching out to vaccine manufacturers for bulk supply of doses and will try to get these doses after completion of all frontline COVID warriors' vaccination." The company has already categorised employees in order of vulnerability, so the ones above the age of 50 years and those who were infected from COVID-19 can be vaccinated first. JSPL will seek the guidance of the government and will try to get all its employees vaccinated, he said adding the company has been conducting RT-PCR test, a test which detects COVID-19 virus, of all employees twice a month since September 2020. Meanwhile, JSW Group which employs 55,000 people directly and indirectly, has plans to vaccinate its staff working at its corporate offices, plants and townships in next financial year. The group is in talks to buy 2 lakh doses initially from one of the Indian vaccine makers and inject double shots once authorities allow private corporate vaccination programme. The first COVID-19 vaccine shots in India were given on Saturday to nearly two lakh frontline healthcare and sanitary workers as Prime Minister Narendra Modi rolled out the world's largest inoculation drive against the pandemic that has caused 1,52,093 deaths and upended millions of lives in the country. Oxford COVID-19 vaccine Covishield, manufactured by the Serum Institute of India, and Covaxin of Bharat Biotech are the two vaccines being given to frontline workers including doctors, nurses, paramedical staff, ambulance drivers and other medical staff besides sanitation workers, police etc. State-owned RINL and Steel Authority of India Limited (SAIL) have sent details of its employees to the administration and who will be vaccinated based on priority. Both SAIL and RINL also run hospitals at their plant sites. A Tata Steel Spokesperson said the company has been working very closely with the government and respective state governments of Jharkhand and Odisha from the start of the pandemic and serving the community with medical facilities at various locations of its operations. Tata Main Hospital (TMH) at Jamshedpur, in Jharkhand has been the largest COVID care facility in the state with over 1,000 beds dedicated for the purpose. As on date, TMH is the designated hospital for conducting COVID vaccine trials. In line with the priority decided by the government, the vaccination is being started with 3,000 health workers at TMH from January 16 onwards. "We will continue to work with the government and as and when further vaccines are made available, we would vaccinate our employees as per the guidelines. As always, Tata Steel stands committed to the safety and security of its employees across locations of its operations," the spokesperson said. AMNS India CEO Dilip Oommen said, "AMNS India has always given the highest priority to the health and safety of its employees. Whenever the vaccines are available to the corporates, we shall certainly take them on priority and provide it free of cost to all the employees. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Nifty Metal index slips 4%; SAIL, Tata Steel, Hindustan Copper dip up to 6%

18 Jan, 2021, 11:55AM | Business Standards

Shares of metal companies were under pressure at the bourses on Monday with the Nifty Metal index plunging more than 4 per cent on media reports that China is considering allowing some stranded Australian coal cargoes amid ban on coal imports from Australia. At 11:29 am, Nifty Metal index, the top loser among sectoral indices, was down 4.2 per cent, as compared to 0.93 per cent decline in the Nifty50 index. Steel Authority of India (SAIL) and Hindustan Copper slipped 6 per cent each, while Tata Steel, Jindal Steel and Power, Hindalco and JSW Steel were down in the range of 4 per cent to 5 per cent on the National Stock Exchange (NSE). and contraction in demand in China are the key risks we see through FY21/22E that can disrupt the ongoing party, the brokerage firm said in recent report.

Stocks to watch: HDFC Bank, Metropolis Healthcare, Wipro, Airtel, DHFL

18 Jan, 2021, 08:33AM | Business Standards

SGX Nifty futures were trading 38 points down at 14,420 at 8.30 am, indicating a negative start for benchmark indices in Monday's session. Here are the top stocks to track in today's session: HDFC Bank: The private lender, on Saturday, reported an 18.1 per cent year-on-year increase in net profit to Rs 8,758.3 crore for the quarter ended in December 2020. That apart, the bank said it has imposed a penalty of Rs 10.20 lakh on its senior executive Jimmy Tata for selling his shares in violation of insider trading regulations. Q3 earnings: Mindtree, Rallis India, Indiabulls Real Estate, IndiaMart, Trident and Snowman Logistics are among the 21 companies that will release their December quarter numbers today. Metropolis Healthcare: Diagnostic chain Metropolis Healthcare said it will acquire Dr Ganesan's Hitech Diagnostic Centre to strengthen its leadership position in southern India. The company's board has approved the acquisition partly by way of cash consideration of Rs 511 crore and partly by issuance of up to 4,95,000 equity shares to the promoter group of Hitech. Wipro: The company has been selected as a strategic technology services partner by Fiat Chrysler Automobiles to establish the latter's first Global Digital Hub in Hyderabad. Meanwhile, the company said it has completed its Rs 9,500-crore share buyback programme. The buyback saw Azim Premji-affiliated entities tendering 22.89 crore shares worth about Rs 9,156 crore during the process. DHFL: The debt-ridden mortgage lender said, on Sunday, that the Committee of Creditors (CoC) has approved resolution plan submitted by Piramal Capital and Housing Finance Limited, a Piramal Group company. Dr Reddy's Laboratories: The pharma major has received approval from the Drug Control General of India to conduct phase 3 clinical trial for the Sputnik V vaccine in India. Happiest Minds Technologies: BNP Paribas Arbitrage acquired 9,25,250 equity shares in the company at Rs 368.55 per share on the NSE. Airline stocks: IndiGo's market share in December was unchanged at 53.9 per cent compared to November 2020. SpiceJet's market share in December 2020 stood at 13.0 percent against 13.2 percent in November 2020. Bharti Airtel: The company is preparing to raise a billion dollars with an offer of perpetual bonds — securities with no maturity date for investors, a media report said. NMDC: The company aims to utilize 97 per cent of its production capacity to produce 35 million tonne (MT) of Iron ore this fiscal and has set an ambitious target of producing 100 MT by 2030, in a bid to ensure a continuous and smooth supply of the mineral for steel makers, according to a senior official. IRB InvIT: The company's revenue for the December quarter this fiscal remained almost flat at Rs 333 crore. It had clocked a revenue of Rs 330 crore in the corresponding quarter last fiscal, it said in a statement. L&T Finance: L&T Finance Holdings reported a 51 per cent decline in consolidated net profit at Rs 287.75 crore during the third quarter ended December 31, 2020. The company's net profit stood at Rs 591.47 crore during the same period in the previous fiscal. Shoppers Stop: The company, on Friday, reported widening of its consolidated net loss to Rs 25.11 crore for the third quarter ended December 31, 2020. The company had posted a net loss of Rs 6.51 crore in the October-December quarter a year ago. SAIL: The retail portion of SAIL OFS was subscribed 5.22 times on Friday. Investors bid for nearly 12.5 crore shares as compared to the 5.16 crore shares on offer. PFC: State-run Power Finance Corporation's Rs 5,000 crore taxable non-convertible debentures issue was subscribed 94 per cent on the first day on Friday and is likely to close on Monday, a source said. Vedanta: The voluntary open offer by Vedanta for acquisition of over 37.17 crore shares will open on March 4 and close on March 18, 2021. Page Industries: A meeting of the Board of Directors of Page Industries is scheduled on February 10 to consider declaration of a second interim dividend for FY21. CESC: The company's board has approved proposal to acquire 23.18% stake in Noida Power Company Ltd., an associate company.

Market Ahead, January 18: Top factors that could guide markets this week

18 Jan, 2021, 08:10AM | Business Standards

While benchmark indices scaled fresh record highs in the last week, high volatility and weak global cues dented the sentiment on Friday, leading to a massive selloff in stocks. However, both Sensex and Nifty managed to gain around half a per cent for the week. As indices look set to kick off the trading this week, Q3 earnings and global cues will likely guide the market, meanwhile, volatility could stay high in the run-up to Union Budget. Traders will react to the HDFC Bank Q3 numbers that came out on Saturday wherein the lender posted an over 18 per cent jump in December quarter profit. Besides that, around 193 companies are set to announce their quarterly numbers this week, including a number of prominent large- and mid-caps firms such as -- Reliance Industries, Bajaj Finance, Bajaj Auto, YES Bank, Mindtree, Asian Paints, JSW Steel, SBI Life Insurance, Biocon, Bandhan Bank and Ultratech Cement to name a few. Meanwhile, on the global front, US President-elect Joe Biden will take office on Wednesday, January 20. Biden had last week unveiled a $1.9 trillion stimulus package that will come up for a vote in the Senate, wherein he would need Republican support to have it cleared. Any development on that front would be closely monitored by investors. That apart, market participants will also keep tracking latest developments and trends on the Covid-19 pandemic front, especially the pace of the vaccine rollout programme that kicked off on January 16 in the country and for signs of any adverse reactions from the vaccine. Moreover, movement in crude oil prices, rupee and FII inflows will also be monitored. Lastly, there will be no dearth of action in the primary markets too as two IPOs, namely - IRFC and Indigo Paints - are slated to open for subscription on January 18 and January 20, respectively. IRFC's IPO is priced at Rs 25-26 a share. Its nearly risk-free model positions the IPO as a safe bet for investors, analyst believe. And now, let's take a look at the trade setup for today Asian share markets retreated from highs on Monday as disappointing news on US consumer spending tempered risk sentiment ahead of a closely-watched reading on the health of the Chinese economy. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.3% having hit a string of record peaks in recent weeks. Japan’s Nikkei slipped 1% and away from a 30-year high. E-Mini futures for the S&P 500 dipped 0.3%, though Wall Street will be closed on Monday for Martin Luther King Jr. holiday. Tracking weakness in Asian peers, Indian markets too looked set for a tepid start. SGX Nifty futures traded 45 points down at 7.35 am. On the stock-specific front, Mindtree, IndiaMart, Rallis India and 18 other companies will release their Q3 numbers today. Wipro has been chosen as the strategic technology services partner by Fiat Chrysler Automobiles. SAIL's retail portion of the OFS was subscribed 5.22 times on Friday. Investors bid for nearly 12.5 crore shares as compared to the 5.16 crore shares on offer. DHFL said the Committee of Creditors (CoC) has approved the resolution plan submitted by Piramal Capital and Housing Finance Limited, a Piramal Group company.

US: Ahead of inauguration Washington DC converted into garrison city

18 Jan, 2021, 08:03AM | Business Standards

Ahead of the inauguration of President-elect Joe Biden and Vice President-elect Kamala Harris on Wednesday, the American capital over the weekend was literally converted into a garrison city because of the multiple reports of threats and armed violence that security agencies have been receiving over the past few weeks. More than 25,000 National Guards have been deployed along with thousands of local police personnel and those from other security agencies. The area in and around Capitol Hill, a large part of Pennsylvania Avenue and the White House has been made out of bounds for the general public with eight-feet high iron barricades being erected. US Marshals are deploying 4,000 officers to Washington DC. Major parts of the majestic National Mall, which during inauguration is usually thronged by thousands of people, have been closed off. The entire city is on high-alert as authorities are receiving multiple reports of violent threats from various groups at the level of the incident that happened on January 6 -- when hundreds of supporters of President Donald Trump stormed Capitol Hill, disrupting the constitutional process of certification of electoral college votes, forcing hundreds of lawmakers to take shelter at safe locations and vandalizing the historic building. At least five people died in the shameful incident. In addition to converting downtown Washington DC into a fortress, security in and around State Capitols has also been put on high alert as security officials are gearing up to prevent a January 6-like event and ensure a peaceful transition of power. I think this will be an inauguration unlike any other. It was already destined to be, given COVID concerns and some of the limited seating and public access. But having our fellow Americans storm the Capitol in an attempt to overthrow the government certainly warrants heightened security, Mayor of Washington DC, Muriel Bowser, told NBC News in an interview. Our police department is working with our federal law enforcement partners and the United States Army also has a plan to pivot if we have any attacks in our neighbourhoods, she said. We've never believed that so-called patriots would attempt to overthrow their government and kill police officers. That's exactly what happened. So, I do think we have to take another posture in our city that is more domestic terrorist focused than external to our country and act accordingly. We don't want to see fences. We definitely don't want to see armed troops on our streets. But we do have to take a different posture, Bowser said. The Federal Bureau of Investigation (FBI) in its internal bulletins has warned of the potential for violence in Washington DC and at all 50 state Capitols. We are concerned, certainly, about these threats in other places, incoming White House Chief of Staff Ron Klein told CNN in an interview. I do think the Secret Service and all their assets, the help they're getting from the National Guard, will keep the inauguration itself safe and the official ceremonies in Washington safe. But these broader threats are concerning, Klein said. He said the president did incite the mob on January 6, and that's "very, very disconcerting". "It's an action that Congressman Raskin, I thought, was quite articulate about, the unprecedented nature of that action. We are obviously getting briefings from the outgoing administration about the efforts to try to secure state capitals, secure Washington, D.C., the National Capital Region, he said. The president-elect is asked Lisa Monaco, the former homeland security adviser to President Obama, to be on point for him in the final days of the transition. We will have a team in place in the White House to monitor these actions going forward starting on 12:00 noon on January 20, Klein said. Meanwhile, a Kentucky man was arrested and charged Saturday in connection with the riots last week during which he joined a crowd of individuals who unlawfully entered the US Capitol and disrupted the conduct of business by the United States House of Representatives and the United States Senate. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

US: Joe Biden's long political evolution leads to his biggest test

18 Jan, 2021, 06:21AM | Business Standards

Joseph Robinette Biden Jr. has navigated a half-century in American politics by relentlessly positioning himself at the core of the Democratic Party. Wherever that power centre shifted, there Biden has been, whether as the young senator who opposed court-order busing in school integration cases or the soon-to-be 46th president pitching an agenda on par with Franklin D. Roosevelt's New Deal and Lyndon B. Johnson's Great Society. The common thread through that evolution is Biden always pitching himself as an institutionalist -- a mainstream liberal but also a pragmatist who still insists that governing well depends on compromise and consensus. Now Biden's central political identity faces the ultimate trial. On Wednesday, the 78-year-old president-elect will inherit stewardship of a nation wrenched by pandemic, seismic cultural fissures and an opposition party's base that considers him illegitimate, even to the point of President Donald Trump's supporters violently attacking the U.S. Capitol on Jan. 6 as Congress convened to certify Biden's victory. Biden's answer follows two tracks: defending the fabric of society and institutions of government that Trump's tenure has stressed and calling for sweeping legislative action. His agenda includes an initial USD 1.9 trillion pandemic response, along with proposed overhauls for health care, taxation, infrastructure, education, criminal justice, the energy grid and climate policy. A message of unity. A message of getting things done, Ron Klain, his incoming White House chief of staff, explained Sunday on CNN's State of the Union. The first approach, rooted in Biden's campaign pledge to restore the soul of the nation, netted a record 81 million votes in the election. In his Nov. 7 victory speech, Biden called that coalition the broadest and most diverse in history and framed it as evidence Americans are ready to lower the temperature and heal. Biden's second, policy-based approach, however, still must confront a hyperpartisan age and a closely divided Congress. The outcome will determine the reach of Biden's presidency and further test the lifetime politician's ability to evolve and meet events. We can't have a claim to want to heal the nation if what people mean is just having the right tone and being able to pat one another on the back, said the Rev. William Barber, a leading social justice advocate who has personally pushed Biden to prioritize the marginalized and poor of all races. Real healing of the nation, Barber said, must be dealing with the sickness in the body of the nation caused by policy, by racism, by polity. Activists such as Barber represent just one of many flanks surrounding Biden. Republicans are clear they won't passively ratify Biden's responses to the pandemic or deep-seated problems that came before it: institutional racism, widening wealth gaps, the climate crisis. The Democratic Party isn't marching in lockstep, either, as progressives, liberals and moderates dicker over details. I wouldn't expect big, sweeping change, said Michael Steel, once a top aide to former House Speaker John Boehner, R-Ohio. Democrats will control a 50-50 Senate with Vice President-elect Kamala Harris's tiebreaking vote as presiding officer. But the chamber's 60-vote filibuster threshold for major legislation remains. Biden's longtime friend, California Rep. Nancy Pelosi, is the House speaker, but presides over a diminished Democratic majority and slim margin for error. Harris framed the stakes Sunday, telling CBS Sunday Morning that the Capitol insurrection on Jan. 6 was an exposure of the vulnerability of our democracy. John Anzalone, Biden's campaign pollster, noted in a recent interview that Biden won with a message spanning ideology. Some voters may not believe in his politics. But they believe in him, Anzalone said. They believe in his compassion and they believe in, quite frankly, his leadership skills. Anzalone loosely compared Biden's appeal to Ronald Reagan's. Reagan was a hero of movement conservatives yet drew support from a wide swath of Reagan Democrats to win the presidency in 1980 amid economic and international instability. By extension, Reagan could count on support or at least good faith from many Democrats on Capitol Hill, most notably then-Speaker Tip O'Neill, D-Mass. The analogy sort of fails when you ask who are the Tip O'Neills for Republicans at this point? Anzalone acknowledged. But, he said, Biden is not averse to big fights. Biden projects confidence regardless, in part, those close to him say, because of his long tenure in Washington buttressed now with the presidential megaphone. Part of the president's job is making the case to the American people and persuading them what the right way forward is, said Stef Feldman, policy director for Biden's campaign. Through that lens, it becomes less surprising to see the politician who joined Republicans in the mid-1990s to clamour for a balanced budget now declares emergency spending measured by the trillions more urgent than ever, even including deficit spending. It was a similar course for Biden as he aged from a young senator in a chamber still stocked with old-guard segregationists into the trusted lieutenant for the nation's first Black president. The Senate Judiciary Chairman who in 1991 led an all-male panel in Supreme Court confirmation hearings involving sexual harassment claims turned the widely panned experience into invitations for the committee to seat its first Democratic female members. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Haryana Police arrest 89 people, recover Rs 112 crore in GST fraud scam

17 Jan, 2021, 06:13PM | Business Standards

In a well-coordinated operation against Goods and Services Tax (GST) scamsters, Haryana Police on Sunday said it busted four major gangs related to issuing or registration of bogus firms involved in fake invoice bills scam which defrauded the government exchequer to the tune of over Rs 464.12 crore. The nexus of the fraudsters was active not only in Haryana but across the country. The crackdown on GST fake invoice scam has also led to the recovery of over Rs 112 crore and unearthing of fake GST identification numbers (GSTIN). A total of 72 police cases have been filed so far in which 89 accused have been arrested by the Crime Branch. Among the total arrest, 40 cases have been registered against on Govind Sharma, Gaurav, Anupam Singla and Rakesh Arora. Director General of Police Manoj Yadava said these persons issued fraudulent invoices to numerous firms and companies without actual supply of goods through fraudulent e-way bills (GST related challans for transporting consignments) and facilitated fake income tax credit entitlement on GST portal through GSTR-3B form. It has also been revealed that fraudulent income tax credit worth crores of rupees has been passed by these gangs using fake GST invoices, e-way bills and with the help of forged bank transactions. During the course of investigations, it has also come to light that out of the arrested persons, some are white-collar economic repeated offenders. Police has also blocked inadmissible income tax credit worth of Rs 97.22 crore in the Excise and Taxation Department. Yadava congratulated DGP, Crime, Mohd Akil and his entire team for their performance in busting the racket involved in GST scam. A total of 21 FIRs against fake firms belonging to the Govind gang active in Panipat and adjoining areas were lodged in 2019 while other three gangs involved in major GST evasion were booked between 2018 and 2019. Police has so far blocked income tax credit of these gangs to the tune of over Rs 80 crore. The DGP said the major goods involved in these GST invoice scams were scrap, iron and steel articles, cotton yarn, paper, etc. The drive against the GST evaders and income tax credit fraudsters is expected to intensify and more arrests are likely in the future. Maximum fraudsters in these gangs used to first register fake firms on the GST portal in the name of gullible people and then generate fake invoices, bills of these firms by using software apps like BusyApp, TallyApp, Shkun Software, etc, and then uploading these bills to generate e-way bills on the GST portal. "We have conducted a statewide drive against GST fake invoice fraud and requested the department concerned seeking all the records. As the beneficiaries (income tax credit claimants) are from various parts of Haryana and other states too, we are coordinating with our counterparts to track the culprits involved in the fraud," Akil said. --IANS vg/vd (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

NMDC sets 100 MT iron ore production target by 2030

17 Jan, 2021, 02:16PM | Economic Times

New Delhi: State-owned NMDC aims to utilize 97 per cent of its production capacity to produce 35 million tonne (MT) of Iron ore this fiscal and has set an ambitious target of producing 100 MT by 2030, in a bid to ensure a continuous and smooth supply of the mineral for steel makers, according to a senior official. By the targeted year 2030, the government also aims to increase India's total steelmaking capacity to 300 MT. Iron ore is the main ingredient used for producing the metal besides coking coal. "In the ongoing financial year, NMDC has targeted to utilize 97 per cent of its production capacity to produce 35 MT of Iron ore. Going forward, NMDC has a target of achieving 50 MT production capacity by 2023, and 100 MT by 2030," P K Satpathy, NMDC Director, Production, told. He said while the country's overall production reported a sharp fall of 27.5 per cent at 110.5 MT in April-November of ongoing fiscal, from 152.3 MT in year ago period, National Mineral Development Corporation (NMDC) produced 18 MT during the period under review, against 18.9 MT and April-November of FY 2019-20, registering a decline of just 4.7 per cent. On the supply and price of iron ore, the official said the prices of the mineral are soaring globally. The values for 62Fe (ore with 62 per cent iron content) reached approximately at USD 172 per tonne by the middle of December. This level was last recorded in early 2013. Demand growth, particularly in China, is driving the increase in international cost of the raw material. The effect of the same is being felt in the domestic market as well, he said. "However, a closer look into the industry prices show, NMDC's iron ore prices are still at a discount of 30-40 per cent than the imported iron ore price and 20-25 per cent lesser than the domestic iron ore suppliers," he said. Satpathy noted that supply normalcy is yet to be achieved and the sharp shortages in India and abroad is aiding the iron ore rally. Higher demand for finished products like steel and the disruption in Odisha have also resulted in high iron ore prices. Aggravating the situation is the problem of non-operationalisation of merchant mines in India, he said. He said a disruption in supply of iron ore in the current financial year is owing to the expiry of 49 merchant iron ore mines of which 34 were operational on March 31, 2020. Of these, 17 are operational mines in Odisha and contributed to about 25 per cent of the total domestic production. Speaking on the company's ambitious target, NMDC CMD Sumit Deb said "it is imperative that NMDC would contribute significantly to the economy in line with the Prime Minister's vision of an 'AatmaNirbhar Bharat'. NMDC will leave no stones unturned to convert India's abundant mineral resources into reserves and boost domestic production." He said COVID-19 caused uncertain times and that had a withering effect on the performance of all sectors including mining and steel Industry. "We learnt early on that the way forward was to mobilise our operational capabilities owing to which NMDC was able to overcome the initial setback in production and we are sure we would excel the cumulative figures of the previous financial year in spite of the COVID challenges," Deb said. NMDC understands the need for wider economic and national interest and stands strong in support of the domestic steel industry. India is committed to becoming the key player in building a globally competitive steel industry with a crude steel capacity of 300 MT by 2030-31, as envisioned by National Steel Policy, he said.

Centre plans to end iron ore leases for mines that don't output after 7-8 months of auction

17 Jan, 2021, 01:08PM | Economic Times

NEW DELHI: The mines ministry has made a proposal to terminate the iron ore leases of those working mines that have not started production even after lapse of 7-8 months of auction and have not maintained minimum dispatch for three consecutive quarters. The mines ministry proposed to do so through the amendment of certain mining rules and has invited comments from the stakeholders on the same. "The Ministry of Mines has prepared the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Amendment) Rules, 2021, seeking to amend the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016," the mines ministry said. It added that as part of the pre-legislative consultation policy, the draft amendment rules are made available. "Comments/suggestions are invited from the general public, governments of states and union territories, mining industry, stake holders, industry associations, and other persons and entities concerned, on the draft amendment rules." Several successful bidders of such working mines whose previous mining leases expired on March 31, 2020, have not started production even after lapse of 7-8 months of auction and execution of mining leases in their favour. Further, many of the successful bidders who have started production have not maintained the production and dispatch quantity up to the level required under Rule 12A of the MCR , the ministry said. "Accordingly, it is proposed to strengthen the norms of minimum production/dispatch through amendment of Rule 12A of the MCR Rules, 1960, in order to ensure sustained supply of mineral in the market in future," the ministry said. It added that the Rule 12A is proposed to be amended to mandate the successful bidder to make payment equivalent to the revenue share and other statutory levies that would have been payable at the prescribed level of minimum production/ dispatch targets on a quarterly basis. "It is also proposed to provide in the Rules that failure to maintain prescribed production level for three consecutive quarters may lead to termination of the leases," the ministry said. Of the total 46 operating and working mines in the country whose leases expired on March 31, 2020, 24 mines are in Odisha, seven in Karnataka, six in Jharkhand , four in Andhra Pradesh , two in Rajasthan, two in Gujarat and one in Himachal Pradesh. All 24 mines in Odisha and four mines in Karnataka were auctioned last year. Non-operationalisation of these mines has created an acute shortage of iron ore in the country, the mines ministry said. Decline in production and dispatch of important mineral such as iron ore not only leads to spike in its market prices but also adversely affects the manufacturing of iron and steel in the country. "It is proposed to strengthen the norms of minimum production / dispatch through amendment of Rule 12A of the MCR Rules, 1960, in order to ensure sustained supply of mineral in the market in future," it said.

Railways ministry nod to new iron ore policy, to come into effect in Feb

16 Jan, 2021, 04:28PM | Business Standards

The Ministry of Railways has approved a new iron-ore policy governing the allocation of rakes and transportation of iron-ore. This new policy has been named as Iron-ore Policy 2021 and shall come into effect from February 10, 2021. The provisions of the new policy will be updated in the rake allotment system module by the Centre for Railway Information Systems (CRIS). “Scrutiny of documentation by Railways has been removed. Executive Director Rake Movement of Railway Board (EDRM) office, Kolkata which has been sanctioning programmes for movement of iron-ore traffic will have no regulatory role in the new policy. The office will be undertaking an analysis of various iron-ore traffic for further improvement of Railway freight loading,” a Rail Ministry statement said. “Customers now desirous of moving their traffic under any priority will have to give (an) undertaking that they have procured, transported and utilized materials as per rules and regulations of Central and State Governments. For lapses, customers will be liable to be taken up as per the law of land and railway will stand indemnified for any such lapses committed by customers,” the statement said. According to the Rail Ministry, this has been done to facilitate the ease of doing business. ALSO READ: Indian Railways allows e-catering in train, Railrestro set to deliver food As per the new policy, higher priority will be given to the movement of iron-ore traffic for domestic manufacturing activity. Within the domestic movement of iron-ore traffic, priority preference will be given to steel, pig iron, sponge iron, pellet, or sinter plant owning customers having their own private sidings at both the loading as well as unloading ends. They will be followed by customers with private siding at either loading or unloading end. Customers without any private siding of their own relying totally on public good sheds, sidings will come next in the priority list. The categorization of priority of movement of iron ore has now been based on the availability of railway infrastructure developed by the customer, for loading or unloading, and the nature of movement between various types of sidings with a view to maximize iron-ore movement by rail. Under the fresh policy, old and new plants will be treated similarly as far as allotment and loading of rakes is concerned. The priority preferences for the customers will be self-generated by the system based on the customer profile fed in the system by the concerning zone. “Customers are free to choose the priorities or combination of priorities for moving their traffic as per eligibility and necessity. No permission is required to be obtained for choosing priorities or combination of priorities,” the statement said. Iron ore is the second most important stream of traffic of Railways and along with steel accounts for nearly 17 per cent (53.81 million tonne of steel and 153.35 million tonne of iron ore) of total 1210 million tonne freight loading of Indian Railways in 2019-2020.

From hard lockdown to tactful reopening: How China bounced back from Covid

16 Jan, 2021, 09:46AM | Business Standards

The smell, salty and pungent, wafts through the freshly paved streets near the gleaming new factory. The factory is owned by a company called Laoganma, which makes a piquant chili-and-soybean sauce famous across China for its power to set mouths watering. In a time of global pandemic, when the jobs of working people around the world hang in the balance, the factory’s scents signal opportunity. Since it opened in March, when China was still in the grip of Covid-19, the factory has struggled to find enough machinery operators or quality control technicians. Now workers are flocking to Changmingzhen, a once-quiet farming town ringed with green mountains and rice paddies, from which young people once fled for better jobs elsewhere. Changmingzhen stands as a testament to China’s stunning post-coronavirus revival — one powered by the callused hands of the country’s factory and construction workers. With few exceptions, the rest of the world remains in a pandemic-driven malaise. But when China reports economic figures for 2020 on Monday, they are expected to show its economy grew despite losing early weeks to the lockdown. On a recent evening, workers flush with money left the factory at shift’s end and flooded nearby market stalls looking for hand-cut noodles, bananas and mandarin oranges. The family-owned company pays its production workers up to $1,200 a month. “Not bad for workers our age,” said Wang Mingyan, an employee leaving her shift. The slight 50-year-old said she received a rent-free apartment, free cafeteria meals and other benefits, as Laoganma competes with other companies for workers. The menu isn’t always to her liking, but that’s a small price to pay. “When you’re away from home,” said Ms. Wang, who moved from her hometown more than two hours away, “you just fill your stomach.” China froze a $15 trillion economy last February. It used brute force to isolate cities and provinces and drag people into quarantine. Beijing turned to the same set of blunt tools to get the economy going again. It ordered factories to reopen and state-run banks to lend. It told state-run companies to restart. Now the economy is charging ahead. Government subsidies are fueling new rail lines and factories. One state-owned company, a would-be competitor to Boeing and Airbus, says it will invest $3 billion in 22 big construction projects. The government’s role makes China’s revival distinctly blue collar. The state’s levers are most effective when it comes to restarting big factories or big construction projects. It has long focused on keeping the working class happy for fear of the sorts of upheavals that have upended politics in the United States and Europe. Beijing has a harder time fixing other problems. Shoppers remain skittish, and may become more so as the virus has resurfaced in several cities lately. Its economy still relies less on innovation and services than on making stuff. Legions of college graduates still find satisfying jobs in short supply. About 50 miles up the highway from Changmingzhen, in the provincial capital, Guiyang, Laoganma advertised positions with three-foot-high signs at a local job fair. But the work holds little appeal for young people looking for jobs. “You can find one if you look, but it will just not be the kind you imagined,” said Grace Cai, a senior majoring in tourism management at a Guiyang university, “and not the kind that meets the demand in your heart, or reaches your goal.” Ms. Cai had an internship last autumn working as a waitress in a hotel restaurant. She dreads finding a full-time job. “There are too many students now,” she said, “and because of the epidemic, it is actually not easy to find a job.” The villagers in Changmingzhen may not agree. It is in southwestern China’s Guizhou Province, in a county that was so poor five years ago that it became a target for China’s antipoverty campaign. Even before the coronavirus, officials strove to put idle hands to work. The national government just built a modern expressway and a bullet train connecting Guizhou to a neighboring province. Laoganma and other companies soon followed. The town buzzes with construction laborers throwing up apartments for new workers. “Every factory is short of workers — the local ones have all been recruited,” said Zhou Xin, a former farmer who gave up his rice paddies so that Laoganma could build its factory. “It’s too toilsome and local people are not willing to do it.” His own daughter studied in Shanghai and stayed to work for an industrial design company. He now runs a small eatery across the street from the factory and still fishes in an adjacent river. He resents just one thing: the factory’s constant low rumble and hiss. “It doesn’t matter if you get used to that sound,” he said. “There are billions of renminbi invested here.” The factory was supposed to have opened in February. Then the pandemic struck. Streets emptied. Residents set up barricades at town entrances, checking everyone’s temperature. A mix of fear and camaraderie kept practically everyone at home for six weeks, living on corn, potatoes and greens from backyard gardens. Yang Xiaozhen runs a Changmingzhen diner with her parents, charging $1.50 for a plate of dumplings. They closed. Her parents stayed indoors. Ms. Yang scarcely ventured out either. “We tried to be mindful,” she said, “because we Chinese are certainly very united and very mindful.” But the virus never struck Changmingzhen. By late February, with the economy still halted, local officials and Laoganma’s managers sprang into action. (Laoganma did not respond to requests for comment.) Neighborhood officials all over the county were ordered to find unemployed workers for the factory. Municipal workers put in long hours to complete nearby roads. Even the gardeners rushed to plant rows of saplings inside the factory fence. Wen Wei was one of the first workers. She carries spices to the production line and earns $620 a month. Her husband, who fries hot peppers, earns $1,200 a month. Laoganma’s package deal lured them to Changmingzhen. It offered a free apartment for them and their two children and free meals at the company cafeteria. They pay only for water and electricity. “You can’t find such a high salary in other places,” she said. A few blocks to the south of the Laoganma factory, Zhu Haihua drives trucks for a steel factory that makes towers for wind turbines. His monthly paycheck of $2,300 does not include food or housing. That is barely half of what the average American truck driver earns. But the money goes much farther in a Chinese mountain village. Frenetic construction over the past few years and permissive zoning regulations have produced a glut of recently built apartments. That allows Mr. Zhu to lease a three-bedroom apartment for just $175 a month. “Renting here is very cheap,” he said. For now, the sounds of machinery and construction often drown out the sounds of the birds in the Chinese maples surrounding the town. But signs of weakness aren’t far away. Business at Ms. Yang’s diner has never completely recovered. While the Laoganma factory continues to pump its spices into the air, the government-aided construction projects may not last. The high-speed rail construction crews are moving beyond the village. They come back less often to spend money. Cai Liuzhong, the owner of a drilling supplies store next door to Ms. Yang’s diner, is preparing to follow the work to the next boom town. “We just follow where it goes,” he said. Yang Faxue, a diner regular, feels a quiet confidence that he will always have work. The 36-year-old construction worker has been on the road most of the past two decades, leaving his home about two hours’ drive from Changmingzhen to work initially in the big city of Nanjing. His wife — and, eventually, three children — stayed home. Mr. Yang was pleased to find a job opening in Changmingzhen, closer to home. And work barely stopped during the pandemic. “The houses still need to be built,” he said. “Work is work.”

Coca-Cola and Pepsi won't be advertising their namesake sodas during the Super Bowl

16 Jan, 2021, 02:09AM | CNBC

Justin Timberlake speaks during the Pepsi Super Bowl LII Halftime Show press conference February 1, 2018 in Minneapolis, Minnesota.Timothy A. Clary | AFP | Getty Images Coca-Cola and PepsiCo will not be promoting their namesake sodas with Super Bowl commercials this year.The decadeslong rivalry between the two cola brands is often put front and center with dueling advertisements during the annual NFL championship game. But this year, both will sit it out. Variety first reported the news.Pepsi is replacing its traditional Super Bowl ad slot with a new campaign to lead in to its halftime show at the game featuring The Weeknd. This year marks the 10-year anniversary of Pepsi's sponsorship of the Super Bowl's halftime show. But Mtn Dew and Frito-Lay, which are both owned by PepsiCo, have plans for in-game ads.In a statement to CNBC, Coke said that it will be toasting to other brands from the sidelines this year."This difficult choice was made toÂ ensure we are investing in the right resources during these unprecedented times," spokesperson Kate Hartman said.In 2019, it opted to run an ad before the Super Bowl game rather than during. But recently, the beverage giant has been reeling from the impact of the coronavirus pandemic. Its revenue fell 13% during the first nine months of 2020 as it missed out on sales at restaurants, gas stations and office buildings. PepsiCo receives a smaller proportion of its sales from away-from-home occasions.Shares of Coke have fallen 14% in the last year, giving it a market value of $210 billion. PepsiCo's stock has risen 2% in the same time, giving it a market value of $197 billion. VIDEO0:4800:48Coca-Cola to use buyouts and layoffs to cut U.S. workforce by 12 percent: Dow JonesPower Lunch

Govt exhorts domestic steel makers to become more competitive globally

15 Jan, 2021, 08:44PM | Business Standards

The government has exhorted domestic steel makers to become more competitive locally as also in export markets besides developing newer products for use in industrial and construction sectors. In the upcoming Budget, the steel makers are expecting relaxation in basic custom duty (BCD) levied on raw materials like coking coal, anthracite coal, graphite, electrode, limestone and dolomite etc. At a conference organised by Indian Steel Association (ISA) on Friday, Union Steel Minister Dharmendra Pradhan said domestic steel manufacturers should focus on increasing production of finished steel while reducing imports and increasing imports. "I expect this from the ISA that when we hope for a tax restructuring from someone, we must increase production, become more competitive, increase exports and minimise import. The Finance Department gets some amount as revenue (on import of steel making raw materials). It must be filled with confidence that when the manufacturing line will be in our country the government can earn more (revenue by means of tax)," he said. "We need to increase our consumption. When volume increases, we (industry) will be able to contribute more to the country. Then the Finance Department will take interest in the reforms we are expecting," the minister said. Citing the example of Japan, Pradhan said the island country is an exporter of finished steel. It is a global supplier of steel for segments like automobile, electronics, big infrastructure etc. When Japan was able to make a global market for itself "why can't we (Indian steel players)", the minister stressed. Minister of State for Steel Faggan Singh Kulaste said the domestic per capita steel consumption at 74 kg is lower compared to the global average consumption. It is one-third of the global average per capita steel consumption, he said. Kulaste asked the ISA, which is the apex body for steel makers in India, to draw a road map to increase ways of increasing steel consumption both in urban and rural areas of the country, and submit it with the ministry. At the conference attended by domestic and international participants, Additional Steel Secretary Rasika Chaube said with government's enhanced thrust on 'Make in India' and focus on 'Aatmanirbhar Bharat' mission, a host of opportunities are in the offing for Indian steel sector as well as for the downstream industries. The government has earmarked Rs 102 lakh crore for the infrastructure projects in the country over the next 5 years, she said. "I find industry is not in a position to take complete advantage of these upcoming demands to the limitations in manufacturing and fabrication. The feedback we keep receiving from the infrastructure industry is that the desired thickness of plates is not available in the country which forces them to go out of the country for getting main components procured and fabricated in China and other countries. We require product development, " the official said. Various types of steel products will be required in airports, railways, bridges, buildings and structures and the industry's attention must be towards production of new products which find application in these areas, she said. Chaube further stated that the demand for rolled products is likely to rise manifold as the government is making efforts to start stalled projects and bring investment in oil and gas, railways, road development, and implementing Bharatmala project, PM Urja Ganga project, dedicated freight corridor project, Smart City project and Housing For All. Some projects may require special type of flat and rolled products, thus a continuous dialogue and attention is must on product development, the official said. "I think there is a very urgent need to critically evaluate the future requirement of steel and modernise and upgrade our facilities suitably," she said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Bridgestone India launches new axle tyre for commercial vehicles

15 Jan, 2021, 08:30PM | Business Standards

Tyre maker Bridgestone India on Friday launched a new tyre, V-Steel Mix M721, for commercial vehicles to establish a strong presence in the drive axle tyre category. The latest offering is specifically for the general cargo, long haul and highway application, and seeks to target the rapidly growing fleet segment, said Bridgestone India Managing Director Parag Satpute at the virtual launch. Bridgestone India, which is a subsidiary of Bridgestone Corporation of Japan, has its presence in both passenger and commercial segments, and caters to both aftermarket and the original equipment (OE) space. The company has two manufacturing facilities, one each at Pithampur in Madhya Pradesh and Chakan in Pune, which cater to almost the domestic market demand. The commercial vehicle segment is focussed on optimising total cost of operations to achieve higher profitability. The V-STEEL Mix M721 is targeted towards the general cargo segment, which is the largest portion of the CV segment and delivers 15 per cent extra tyre mileage and subsequent reduction in cost per kilometre (CPK) for the fleet operators, said Satpute. Priced at 7-10 per cent higher than other comparable Bridgestone tyres, the V-Steel Mix M721 is a combination of low rolling resistance compound, deeper tread depth and tie bar which enables extra tyre mileage and even wear, according to Satpute. "What we would like to focus on while working with fleet customers is the total cost of ownership (TCO). This new product addresses the TCO," he said. Over the past few years, this segment has grown rapidly and with its experience from the advanced economies, the company has helped in this process, Satpute added. Bridgestone India's strategy is to aggressively grow its core tyre business, providing the right product and by building a wide servicing infrastructure for the highways for the fleet customers, he said. Satpute added that the new product addresses the issues of both tyre fuel mileage and cut-chip resistance. "The other focus is to provide higher value to our customers with our new business models such as pay per kilometer. "With these business models, we look to leverage our expertise in tyre management and create a win-win situation for fleet operators," Satpute said. Last month, Pune-based Bridgestone India announced an undisclosed investment in fleet management firm Fleeca India to strengthen its positioning in the digital application-based mobility solutions. It will further strengthen its existing service Infrastructure for providing comprehensive tyre services across national highways. In line with its global journey of becoming a mobility solution, Bridgestone India is working towards providing end-to-end tyre management solutions to its customers, Satpute said. Bridgestone India has started doing this (services like pay per kilometre) as a new business model and it is making good progress and it remains the core part of the strategy going forward, he said. The company started the 'pay per km' business model for the fleet segment in 2018 but started scaling it up from 2020. "Today, it is a commercially available solution from Bridgestone. We have a dedicated team for PPK business and it is growing rapidly. "We are investing in this space and we are committed to bring the technology to the Indian market," he said. On the overall India business, Satpute said India is still a developing market and therefore, there is a lot of growth in the OE segment. "Overall, we have a strong position in the tyre business in India and our ambition is to become one of the leading players in the TBR (truck and bus radial) space in the country." Satpute said that 2020 was a "unique" year, owing to the emergence of the pandemic that brought all economic activities to a halt for nearly two months. However, from August-September onwards, industrial activities started coming back and 2021 is expected to continue with that momentum. "We are mindful that COVID-19 is still around, there are countries around the world who are in the second and third wave... but there is a lot of positivity because of the vaccine. I am cautiously optimistic about 2021," he said. Bridgestone India has a high emphasis on providing tyre management solutions and will continue to develop its network with both PV and CV segments getting a lot of focus, he said. The company has a "very robust" product line in the next few years, he added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Health ministry takes stock of vaccine preparation, assures jabs are safe

15 Jan, 2021, 08:20PM | Business Standards

A dedicated covid control room at the Nirman Bhawan premises of the health ministry, which has been analysing the spread of coronavirus in the country, will be monitoring the smooth roll-out of the covid vaccines through the Co-WIN digital platform. Health minister Harsh Vardhan visited the control room on Friday to take stock of the preparations for the nationwide launch of the vaccination drive on January 16. The Co-WIN platform is meant to enable real time information of vaccine stocks, storage temperature and individualized tracking of beneficiaries of the vaccine. The digital platform will be used to assist programme managers across the states by tracking beneficiary coverage, dropouts, sessions held and total vaccine utilisation. ALSO READ: Airlines, steel companies, auto makers race to get vaccine for staff The data of beneficiaries will be sorted by gender, age and comorbidity. Vardhan while reviewing the beneficiary registration page suggested that the data for all non-prioritised groups should be uploaded on the software using the electoral database, in addition to other documents that are authorised for registration. Vardhan also said that “the indigenously manufactured vaccines, Covishield and Covaxin have proven safety and immunogenicity records and are the most important tools to contain the pandemic.” Over 3,000 sites across the country are ready to vaccinate around 300,000 health workers on the first day of covid vaccination. Around 100 beneficiaries will be vaccinated at each session site on the inaugural day. A 24x7 call centre, 1075, will address the queries related to Covid-19 pandemic, vaccine rollout and the Co-WIN software- the key platform for the vaccination drive. The health minister will visit some of the vaccination centres in the capital on Saturday including All India Institute of Medical Sciences.

Dec exports up a marginal 0.14% in third monthly expansion in all of 2020

15 Jan, 2021, 07:57PM | Business Standards

Exports closed the year 2020 with a glimmer of hope, recording a marginal growth of 0.14 per cent in December, which is only the third month in the entire year to show expansion. Outbound shipments were just $40 million higher at $27.15 billion in the month over $27.11 billion a year ago on the back of drugs and pharmaceuticals, electronics, gems and jewellery exports. Oil exports continued to decline, dropping by 35.35 per cent in December year-on-year. "While intermittent hiccups may persist, we are hopeful that the performance of exports will strengthen in the coming months, as the Covid-19 vaccine rollout gathers speed in the major trading partners," Aditi Nayar, principal economist at ICRA, said. If the oil and gems and jewellery were taken out from the export basket, the outbound shipment grew by 5.50 per cent at $22.22 billion in December against $21.6 billion in December, 2019. Prahalathan Iyer of Exim Bank said this indicates pick up in manufacturing activity in the country. ALSO READ: Covid-19 impact: Companies bolster risk handling after a year of bouncers Exporters body FIEO president Sharad Kumar Saraf said the New Year 2021 has brought a ray of hope and optimism for all from the worst of Covid-19 and effective vaccines are expected to bring both life and economy back on growth trajectory with a v-shaped recovery in world trade. Imports moved to a positive territory for the first time after the Covid-induced lockdown was imposed towards the end of March by growing at 7.56 per cent to $42.59 in December against $39.59 billion a year ago. This has widened trade deficit to a 25-month high of $15.44 billion in December against $9.87 billion in the previous month. Non-oil, non-gold imports grew almost eight per cent in December at $28.52 billion versus $26.41 billion in the same month last year. This category of imports mostly declined in 2020. Their emergence to growth showed that industrial demand in the economy has strongly picked up in December which would have repercussions for factory production as well as larger economic growth. The index of industrial production (IIP) declined 1.9 per cent in November after rising over four per cent in October. Non-oil, non-gold imports showed that IIP might pick up in December. "Trade deficit was driven by the surge in non-oil imports that was exaggerated by pent-up demand," said Nayar, principal economist at ICRA. Exports declined 15.73 per cent at $200.80 billion during the first nine months of the current financial year against $238.27 billion during the corresponding period of 2019-20. On December export, Trade Promotion Council of India chairman Mohit Singla said resilience of the industry has challenged all adversity to buck the trend. "This growth comes amidst a challenging trade environment, especially with the rise in protectionist measures by a number of countries. Additionally, this performance comes indicating below-trend expansion in the first and second quarter," he said. Engineering exporters body EEPC India said exporters continue to face headwinds of extreme nature as the key economies of the world are in the midst of a demand recession. The domestic scenario of rising cost of raw material like steel aggravated the situation, it said. ALSO READ: Loan book audit at IDBI Bank to identify stress areas ahead of stake sale Imports contracted 29.08 per cent at $258.27 billion against $364.18 billion over this period. This led to narrowing of trade deficit to $57.47 billion during April-December, 2020-21 against $125.91 billion during the corresponding period of the previous year. Meanwhile, the estimated value of services export for December stood at $ 17.31 billion, while that for imports was at $10.32 billion. This led to overall surplus in merchandise and services trade to $5.22 billion in the first nine months of the current financial year compared to the deficit of $ 64.09 billion a year ago. Nayar expected the current account surplus to sharply reduce to sub-$two billion in the third quarter of FY'21 from $15.5 billion in the second quarter. She in fact did not rule out a small current account deficit as well in the third quarter. A few items such as royalty payments and receipts are added to balance in merchandise and services trade to arrive at current account balance.

Tata's 'clean' steel behind new care home VisitorPods in UK

15 Jan, 2021, 06:03PM | Economic Times

London: Tata Steel said on Friday that its Advantica L Control “clean” steel product is being used on the interior walls and ceiling of new care home pods to allow families to be reunited during the coronavirus lockdown in the UK. The steel, which is easy to clean in order to keep fully sanitised, is being used to create innovative modular meeting rooms allowing care home residents to meet their families safely. The brainchild of Splash – an event space design business based in Stockport, Greater Manchester — the VisitorPod uses the high-quality Tata Steel product. As well as having a long life span and being recyclable, the steel is said to not require intensive cleaning while keeping residents and visitors safe. “We all face challenging times and being able to remain in touch with loved ones who are in care is so important. The VisitorPod is an ideal solution as not only can it be installed quickly and later repurposed, but the unique properties of the steel used mean it can be kept safe for care home residents, staff and visitors,” said Tom Eussen, Director of Tata Steel Downstream Operation. The owners of Splash, Nathan Blythe and Darren Ashcroft , were the brains behind the new VisitorPod as the UK imposed strict social distancing lockdowns to control the spread of the deadly virus. “2020 forced us to diversify, and we quickly realised that our design and build skills could support the growing need for a safe space for families to visit their relatives in care homes,” said Blythe. “The VisitorPod is delivered onsite as pre-finished steel insulated panels. Its modular structure makes it easy to assemble. The pod can be positioned in a garden, on a carpark, or on a patio – wherever there's space – and can be relocated or reconfigured as required,” he said. The VisitorPod is designed to provide a safe space to enable face-to-face interaction between care home residents and their families during the pandemic. In the future, the pods can be used as ongoing treatment rooms or creative spaces, enabling care homes to make the best use of the additional space. Tata Steel said its Advantica L Control has many product benefits, including its ease of cleaning, and anti-static properties, reducing the attraction of dust and dirt. The best way to ensure surfaces are free of microbes, including viruses, is regular intensive cleaning. The product is sufficiently robust to withstand this, which is important for this type of application, the Indian steel major said. The first VisitorPod was installed at a care home in East Yorkshire in northern England just before Christmas last month. Tata Steel is one of Europe's leading steel producers, with steelmaking in the Netherlands and the UK, and manufacturing plants across Europe.

SC seeks reply from Centre, 61 firms on PIL alleging duty evasion in iron ore exports to China

15 Jan, 2021, 05:52PM | Economic Times

New Delhi: The Supreme Court has sought responses from the Centre and 61 iron exporting firms including Essar Steel and Jindal Steel & Power on a PIL seeking a direction to the CBI to register an FIR and probe the alleged duty evasion by them in exporting iron ore to China since 2015. A bench headed by Chief Justice S A Bobde took note of the submissions of lawyer and PIL petitioner M L Sharma that the companies be prosecuted for alleged evasion of export duty by declaring wrong tariff code to export the iron ore under the Foreign Trade (Development and Regulation) Act, 1992. "Issue notice," said the bench which also comprised Justices Justices A S Bopanna and V Ramasubramanian. The bench, which permitted the petitioner lawyer to argue in person the PIL, was told that iron ore "smuggling to China" has been taking place as these companies have been exporting them without paying 30 per cent export duty. The PIL said the ministries of commerce and finance control and regulate the export policies and decide as to under which Harmonized System (HS) Codes each good will be exported. It said the government had set up a firm with the name of KIOCL to use low grade iron ore and export them under the "duty free Tariff HS code 26011210 which is exclusively prescribed for KIOCL". The PIL said under Foreign Trade (Development and Regulation) Act, 1992, "tariff HS CODE NO. 26011100 was prescribed to export 'all other kind of iron ore' subject to payment of export duty at the rate of 30 per cent". The firms were wrongly allowed to export iron ore using the tariff code being used by KIOCL and as a result crores of rupees have been cheated by them, it said. The ministries of commerce and finance, customs department and 61 companies have been "hand-in-glove" and the firms have been "smuggling millions tons of iron ore @ iron ore pellets to China" in violation of various laws by "using Tariff HS Code 26011210 instead of 26011100 and evading 30 per cent export duties since 2015 till date", the PIL said. It alleged violation of the Customs Act, the COFEPOSA, the Foreign Trade (Development and Regulation) Act and certain penal provisions relating to cheating and forgery and sought a court-monitored and time-bound CBI probe against the companies. "Be further pleased to issue writ of mandamus to respondent no.1 & 2 (ministries) to issue show cause notice to the all smugglers/ accused persons...to impose and recover Rs 7,08,000 crores penalties, jointly & severally, from exporters..," the plea said. It said export duty evasion on iron ore export to China has been continuing since 2015 and the Centre, on being told about this, "did not issue even show cause notice to them and refused to stop said smuggling". Besides the Union ministries and the CBI, the top court has issued notices to 61 firms including Brahmani River Rellets Ltd, Rashmi Metaliks Ltd, Jindal Saw Ltd, Essar Power (Orissa) Ltd and JSW Steel Ltd.

Retail book of SAIL OFS subscribed 2.4 times, shares end 4.4% higher

15 Jan, 2021, 05:52PM | Business Standards

The retail investor quota of the Rs 2,600-crore offer for sale (OFS) in state-owned Steel Authority India (SAIL) garnered 2.4 times subscription on Friday. Individual investors bid for nearly 125 million shares as against 51.6 million on offer. A day earlier, the institutional investor portion too had garnered more than two times subscription. Shares of SAIL closed at Rs 70.2 with a gain of 4.4 per cent. The government had set the base price for the OFS at Rs 64 per share. However, most bids came at Rs 66 per share, data provided by stock exchanges showed. Following the share sale, the government’s stake in SAIL will decline by 10 percentage points from the current level of 75 per cent. The share sale was part of the 2020-21 disinvestment programme, where the centre is targeting to mop up over Rs 2 trillion. After the SAIL disinvestment, this year’s divestment tally has crossed Rs 15,000 crore.

Too many companies are banking on carbon capture to reach net zero

15 Jan, 2021, 05:04PM | Business Standards

As governments and companies jostle to show how committed they are to fighting global warming, plans to take carbon dioxide out of the air are becoming a giant loophole — just as experts have warned for years. The UN Principles for Responsible Investment estimates that some 42 companies announced net-zero targets in 2019 and 2020. More than half of those plan to plant trees, preserve forests or capture CO₂ in order to get there, even as their own businesses continue to warm the atmosphere. These measures, and other technologies to capture greenhouse gases, are collectively known as carbon dioxide removal (CDR). But CDR shouldn’t be a get-out-of-jail-free card for polluters. There’s a limit to how much CO₂ can plausibly be removed. There's only so much land available to plant new trees, and most other methods are expensive and difficult. As net-zero plans proliferate, some companies assume they can rely disproportionately on CDR to offset their own emissions. It’s not just about planting trees. There are even plans to create “negative emissions” by generating energy from burning biomass, then capturing the emissions produced, a little-used process that also requires large amounts of land. In a new report, Greenpeace UK points out that the Intergovernmental Panel on Climate Change estimates between 500 and 3,600 million metric tons of CO₂ could be removed annually through planting new forests by 2050. British Airways operator International Airlines Group and Italian oil company Eni each claim they’ll offset 30 million metric tons per year by then. That could be as much as 12% of the IPCC’s projection, Greenpeace warns. The IPCC also estimates that there’s only about 500 million hectares of land left that can be dedicated to new forests for carbon capture. Royal Dutch Shell Plc alone, Greenpeace says, has proposed planting a tenth of that amount to achieve its net-zero target. Some company plans look even worse when you consider their industries. For example, power generation has long been considered so easy to decarbonize with wind and solar that the IPCC and the International Energy Agency assume it can get to zero emissions without any CDR. That that hasn’t stopped U.S. electricity companies like Duke Energy Corp and Southern Co. from planning to offset the equivalent of 5% and 10% respectively of their current annual emissions with CDR. In a way, this is a problem of the scientific community’s own making. CDR features in virtually every pathway laid out in IPCC reports to keeping global warming to well below 2 or 1.5 degrees Celsius. Some of the roadmaps assume amounts of negative emissions that vastly exceed the best estimates of what’s economically feasible. Researchers have been critical of these pathways’ reliance on carbon capture for years now. A paper by Kevin Andrews and Glen Peters published in 2016 titled “The Trouble with Negative Emissions” has had almost 500 citations, according to Google Scholar. The same year, climate scientist James Hansen warned that negative emissions had “spread like a cancer” in the climate scenarios. Few dispute that negative emissions will be needed, and not all plans that include negative emissions look irresponsible. Some emissions – like those produced by heavy industry and transport – will be so difficult to cut that researchers and policymakers believe they should get priority in using CDR to mitigate their climate impact. And not all companies with net zero plans are grasping for more than their share. Steel producer ThyssenKrupp AG aims to produce carbon-neutral steel by 2050, and shipping company A.P. Moller-Maersk A/S says it will have carbon neutral ships within a decade without offsets. Others maintain they’ll lean on CDR, but will avoid forest-based measures because it’s so hard to tell if they’re genuinely making a difference. Occidental Petroleum Corp hopes to make a profitable business out of direct air carbon capture, a technically challenging proposition. Sabine Fuss of the Mercator Research Institute, an expert on the real-world potential of negative emissions, cautions against attempting to set a limit on global CDR efforts, let alone allocating it by sectors, company, and country. “The issue is probably not so much about getting budgets right and distributing them exactly, but the fear that is implicit here is that removals could be used as an excuse by companies not to proceed with decarbonization of their existing processes or that their allocation could lead to double-counting," she told me via e-mail. It’s still likely that tree-based measures will remain a tempting solution. Growing demand is set to boost the market for offsets. The simplicity of planting trees is appealing and the pressure to set net-zero targets will mean more companies turn to using large swaths of land to bolster their climate credibility. Charlie Kronick, who leads finance work at Greenpeace UK, said the risk comes from “trumpeting headline pledges” of net zero without reading the fine print. The onus is on regulators, investors, consumers and the media to remember that net-zero climate targets are only as good as the "net."

China's fight against new wave of Covid infections clouds economic recovery

15 Jan, 2021, 04:57PM | Business Standards

By Sophie Yu and Kevin Yao BEIJING (Reuters) - From cancelled hotel bookings ahead of the Lunar New Year to steel piled up at mills because of transport curbs in Hebei province, China's battle against a new wave of COVID-19 infections clouds what has been a dramatic economic recovery. New cases in China are at 10-month highs, prompting the lockdown of 28 million people in two provinces, disrupting logistics and industrial activity, with millions expected to scrap holiday travel plans in a blow to China's efforts to get consumption back on track. China's economy plunged an unprecedented 6.8% in the first quarter last year. Thanks partly to surging global demand for Chinese-made electronics and gear to protect from coronavirus, China looks set to be the only major economy to expand in 2020, with growth expected at 2.1%. Given the limited geographic spread of the outbreaks and improved testing and containment, economists do not expect anything approaching a repeat of what happened in the first quarter of last year, when the emergence of the coronavirus resulting in the world's second largest economy contracting by 6.8%. Manufacturing and export demand remain robust. But economists say consumption, which typically accounts for more than half of the economy and has lagged the wider recovery, may take a hit. Authorities have urged people not to travel for the week-long Lunar New Year holiday, which starts Feb. 11 and is typically a time to spend on travel, food and gifts. "The worsening coronavirus situation will impact economic activity, and markets may need to temper their expectations for strong pent-up consumption demand in the coming LNY holidays," Nomura analysts wrote in a note this week. The outbreak and social distancing measures "add conviction" to Nomura's forecast that policymakers will moderate moves to ease stimulus and slow credit growth, and delay rate hikes into 2022, it said. But Julian Evans-Pritchard, senior China economist at Capital Economics, said there may be an economic upside. "One reason many manufacturers have been quick to participate in official efforts to discourage travel is that it would allow them to keep factories running over the holiday," he wrote in a Friday note. TRANSPORT TROUBLES In the steelmaking powerhouse Hebei province, which surrounds Beijing and has seen cities locked down to contain the outbreak, steel inventories have jumped 11% this year, according to data from consultancy Mysteel, with industry sources blaming transport restrictions. In the Hebei city of Tangshan more than one-third of steel mills have coke supplies of fewer than seven days, which suggests supply shortages, and weekly blast furnace capacity utilization rates fell this week by 1.7% from last week and by 7% from a year earlier, Mysteel data shows. "The COVID situation may not improve quickly, but the impact will not be as big as in last year's Lunar New Year," said Zhang Yiping, economist at China Merchants Securities in Shenzhen. CANCELLED PARTIES Consumption in China was slower to recover than factory output or investment, although retail sales recorded the fourth straight month of year-on-year growth in November. Gubei Watertown, a tourist site at the foot of China's Great Wall, has suffered cancellations of 8,900 room bookings as well as numerous year-end conferences, Chen Xianghong, president of Wuzhen Tourism Co Ltd, one of its owners, said on the Twitter-like Weibo site on Thursday. "We can't close, but keeping open is loss-making," he said. Many companies which would ordinarily be holding parties are cancelling events, while cities have advised couples to delay wedding banquets. Liquor giant Kweichow Moutai, based in Renhuai in Guizhou province, told employees to stay put. "All employees are not allowed to leave Renhuai, participate in gatherings, or visit public areas such as karaoke outlets, bars or internet cafes," according to a notice to staff reported by state media this week. (Reporting by Sophie Yu, Kevin Yao, Min Zhang and Tony Munroe; Editing by Simon Cameron-Moore) (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Domestic steel demand expected to contract by 9-11% in FY21: CRISIL

15 Jan, 2021, 04:28PM | Business Standards

In the current fiscal, the domestic steel demand is expected to contract by 9-11 per cent on account of the nationwide lockdown through April-May and slower-than-desirable ramp-up in manufacturing activities post that, Indian Steel Association(ISA) knowledge paper prepared by CRISIL said on Friday. The demand for steel plunged 55 per cent in the first quarter as the pan-India lockdown brought construction and manufacturing to a near standstill. However, it has recovered sharply since then, with the demand decline limited to only 17 per cent in the first 9 months of FY21, said the knowledge paper. The paper was presented today at ISA Webinar on new opportunities for steel in construction and infrastructure. While economic activity – and hence steel demand – has picked up from the third quarter, the huge blow suffered in the first two quarters is likely to weigh on the year. Post fiscal 2020-21, steel demand will drive its growth trajectory to 7-7.5 per cent, led by numerous government-led initiatives on infrastructure and housing, as well as the automotive sector as low base of two years will also help, said the research agency. Demand from building and construction (B&C) segment, which accounts for 35-40 per cent of steel demand, is expected to rise 5-6 per cent between FY22 and FY25, led by a pick-up in affordable housing, kutcha-to-pucca conversions in rural belts, especially in the eastern and central regions, and real estate construction (given deferral in construction and RERA compliance). ALSO READ: Tata Steel Long back in the black in Q3, posts PAT of Rs 304 cr; stk up 13% Demand from the infrastructure sector is expected to be propelled by a healthy rise in demand from roads, metro projects, and railways. Large-scale irrigation projects, especially in the southern and western parts of the country, will also provide robust support. Deferral of capital investments in the past two years will also provide low base for support. Meanwhile, engineering and packaging sector will post modest growth of 4-5 per cent between FY22 and FY25 as demand from conventional power segment stays weak. However, consumer durables and packaging sector should perform well. Automobiles industry will post healthy growth of 9-10 per cent through FY25 after two successive years of decline. Steel demand was already under stress as the pandemic marched in, causing havoc across downstream segments. India’s steel demand logged a healthy 5.3 per cent CAGR between FY16 and FY20 to touch 100 million tonnes, largely spurred by the infrastructure sector, including railways. Demand had shot up 8 per cent on-year in 2017-18, post a low-growth trajectory over 7 years, followed by 9 per cent in FY19. The sharp rise was on account of higher infrastructure spending, spurred by automobile sales and strong construction activity aided by affordable housing. However, the industry was unable to sustain the growth momentum in 2019-2020 as demand lost steam. While demand has seen a sharp recovery in the recent months, the steep decline witnessed in the first quarter amid stringent lockdown norms is expected to drive demand 9-11 per cent lower in FY21.

Covid-19 impact: Companies bolster risk handling after a year of bouncers

15 Jan, 2021, 03:47PM | Business Standards

An Indian manufacturing company which supplies goods to the US and to companies in Europe found itself facing an unexpected problem following the Coronavirus (Covid-19) pandemic. There was a shortage of freight containers. Without containers, the company was unable to use ships to get its products overseas and eventually had to use airplanes to transport its goods. Such unexpected situations which increase expenses or otherwise pose risks to profits are being more closely studied and prepared for across Indian boardrooms after the Covid-19 pandemic and companies are carrying over their learnings in managing unforeseen risks after the events of 2020. A solution for the company above, an auto component maker, was to watch shipping rates even more closely. Vedanta, which faced supply chain disruptions among other issues during the Covid-19 pandemic, used a digital war-room to monitor the evolving pandemic situation daily and take decisions accordingly. ALSO READ: Vedanta's steel business back on growth turf after Covid-19 speed breaker “This war room has now been converted into a business transformation office so that we don’t lose the agility we had gained during the height of the Covid lockdown,” said Ajay Kapur, chief executive officer (aluminium and power) and managing director (commercial) at Vedanta. Similarly, JSW Steel sought to create hubs across the country to reduce the number of people in the corporate office in Mumbai. There are also other kinds of changes which take more cognizance of risk. Some companies are looking to combine risk management with strategy according to Sudhakar Rajendran, partner and enterprise risk leader, EY India. For example, people evaluating a new geography would also give a perspective on risks arising from operating in that particular region. This has happened after the pandemic, Kapur said. “A critical function of boards has always been to understand and mitigate enterprise-wide risks – but the Covid-19 pandemic has brought that responsibility into sharp focus. Its unprecedented impact has highlighted the inter-connectedness of risks and the velocity at which the risk landscape can change. Understanding new and emerging risks to business during a pandemic that impacted the lives of so many globally has added a new layer of complexity,” he said. “The risk on account of (the) Covid-19 pandemic which jolted the world throughout 2020 was not identified as a risk by most. In such a high-risk environment, the role of risk management committees has changed dramatically,” said Suresh Surana, founder of audit, tax and consulting provider RSM India. The Securities and Exchange Board of India issued a consultation paper on December 10 looking to mandate risk management committees to the top 1000 companies and better define the role of such committees including looking at internal controls. Internal control and risk management has typically been the under the purview of the audit committee. The expanded role of the risk management committee would give them some oversight on this too, under the proposed Sebi guidelines. An overlap of responsibilities between the two committees may create some ambiguity and should be resolved in the final guidelines, suggested Puneet Gupta, Protiviti India Member managing director. "While the audit committee is largely constituted of independent directors, the risk management committee is not. This may dilute effectiveness in the event of a shift in responsibilities when the final regulations are in place," he said. The increased focus on business risks comes even as earnings show signs of improvement. The Nifty 50 companies saw earnings estimates cut 20 per cent for the financial year 2020-21 (FY21), noted a 3rd January Jefferies India Equity Strategy report from equity analysts Mahesh Nandurkar and Abhinav Sinha. The Nifty earnings growth expectations are 37 per cent for FY22 (see chart of Nifty index versus price/earnings multiples). “India's gradual reopening and consequent economic pick-up has turned out to be faster than expected, which has driven earnings upgrades,” said the report.

MSTC hits record high on heavy volumes; zooms 61% in thus far in January

15 Jan, 2021, 03:19PM | Business Standards

Shares of MSTC hit a record high of Rs 263.65, soaring 20 per cent on the BSE on Friday, in an otherwise weak market on the back of heavy volumes. Trading volumes on the counter more-than-doubled with a combined 2.9 million equity shares, representing 4.1 per cent of total equity of MSTC, changing hands on the NSE and BSE till 03:18 pm. In comparison, the S&P BSE Sensex was down 1.1 per cent at 49,037 levels. Thus far in the month of January 2021, MSTC has rallied 56 per cent, after the company signed a Memorandum of Understanding (MOU) with Department of Mines and Geology, government of Andhra Pradesh for selection of agency to carry out sand operations in the state of Andhra Pradesh on January 4, 2021. Recently, CARE Ratings reaffirmed the credit rating to various bank facilities availed by the MSTC. "The ratings assigned to the bank facilities of MSTC continue to draw strength from the long track record and established position of the company in e-commerce segment, Government of India’s (GoI) controlling stake and stable source of revenue from service income," the rating agency said in rationale. MSTC was set up in September, 1964 for regulating export of ferrous scrap from India. Since 1991, the company has been in direct marketing of melting scrap, coke/coal, iron ore and many other products. MSTC earns stable service income through the e-commerce business and sales done through facilitator mode (majorly raw material for secondary steel producers and petrochemical industry).

Mining reforms: Industry gives a thumbs up, environment concerns remain

15 Jan, 2021, 01:34PM | Business Standards

The Union Cabinet approved a slew of reforms in the mining sector this week. While the fine print and official confirmation is yet to come, the industry is elated at the steps taken by the Centre. However, there could be concerns on the implementation at the state level and environmental impact. “Directionally it is a good set of reforms, but since implementation of the same is with state governments, the key lies in how each state government executes it at its end. Even today for a final go or no go---in terms of approvals, it takes about 3-4 years and this scares away investors,” said Ritabrata Ghosh, assistant vice president (Corporate Ratings & Industry Research) at ICRA Ltd. This paper reported on Wednesday that the Union Cabinet is learnt to have approved a reform package for the mineral mining sector which would entail amendments to three existing Acts, pricing formula for minerals, exploration of mines and several taxes and duties levied on mining. Officials said this is expected to boost production and private investment in the sector. The Centre has removed any distinction between captive (self-use) and merchant (commercial sale) mines. The Centre would amend the Mines and Minerals (Regulation and Development) Act, 1957 (MMRDA) to enforce the reforms. Government officials said the amended MMDRA would be placed in the Parliament in the upcoming session. A senior executive with a primary steel producing company said, removing the distinction between merchant and captive mines seems like a good move for corporates. “It will allow captive owners to sell too in the market. But unless the policy is implemented and we have the official document in hand, we would not like to comment much at this juncture,” he said. Under the proposed reforms, captive mines would be allowed to sell 50 per cent of the minerals excavated in a year. The Centre has also proposed to give 50 per cent rebate in the quoted revenue share, for the quantity of mineral produced and dispatched earlier than scheduled date of production. The Centre has proposed to amend the section 10A(2)(b) & 10A(2)(c) of the MMDRA in order to unlock more mines for auctioning. This would entail Centre auctioning the pending mining leases as well. R K Sharma, secretary general, Federation of Indian Mineral Industries (FIMI), said, “It is a move in the right direction. This will lead to more resource development as auctions are made attractive. FIMI welcomes this move.” But as more mines come under the auction, there are concerns that the environment and social impact of mineral mining would also increase significantly. Kanchi Kohli, said with the shift from captive to commercial use, without any end use restrictions, it will be virtually impossible to regulate the footprint, as minerals will be transported to places wherever mine developers find demand and higher rates of returns. “Environmental laws are designed to lay down conditions based on disclosures made prior to mineral extraction so that approvals can be granted or rejected based on the level of impacts. With the new set of proposed changes, this will be impossible to predict or monitor and the impact areas are likely to constantly shift and evolve. It is clear that the present amendments have not undergone an evaluation of their environmental viability or social consequences,” she said. The Centre has also proposed to reallocate non-producing blocks of public sector utilities so as to increase the number of mines into production. It is learnt that the Centre would also ask PSUs to facilitate production from those mines which were auctioned in March 2020 but have started production even after transfer of valid rights, clearances, etc. As part of the mining reforms, the Centre will amend the Indian Stamp Act, 1899, in order to bring uniformity across the States in calculation of stamp duty. The MEMC Rules (Minerals (Evidence of Mineral Contents) Rules, 2015) will also be amended for inclusion global exploration standards. “With such changes on commercial mining and revenue sharing, the measure of mining efficiency will shift from total tonnage of mined ores to profit/hour of mining operations as a leaseholder or as nation,” Saurabh Bhatnagar, partner and national leader, metals & mining, EY India said.

View: Are we looking forward to the UK and the US trade agreements to compensate RCEP?

15 Jan, 2021, 10:57AM | Economic Times

Pandemic has created lots of threats and opportunities simultaneously to the Indian economy . Since the fourth quarter of 2020, Indian trade shows signs of mild recovery, given some significant politico-economic changes in the international arena. Still, we have several uncertainties in the international negotiations front. The new variation of the COVID-19 has started influencing the world once again. It has triggered a few vulnerabilities once more. Is it accurate to say that we are going to lockdown once more? How will it affect our global exchange? We have just revoked RCEP . Will trade arrangements with our significant trading partners like the US, UK, and EU allow us to play better on the global stage? Are these exchanges going to open new occasions to move upward in the stepping stool of global value chains (GVC)? Or on the other hand, these will be another arrangement of strategic negotiations with the least economic benefits like the current free trade agreement (FTAs). The existing plethora of scholarly writing has called attention to the political economy inspirations driving the proliferation of trade agreements , which generated less economic benefits. In one of my examinations, I found that our existing FTAs don't significantly affect our trade after controlling the political economy factors. Typically, nations do tend to sign trade agreements with whom they have a critical trading history. India did likewise under south-south collaborations, yet none of the current FTAs have produced any significant welfare gain. A conceivable explanation could be the shallow kinds of agreements, which don't completely cover numerous elements of exchange, for instance, non-tariff measures. Data or information lop-sidedness to the exporters is another explanation, for which all exporters can't explore the FTA routes adequately. Current export shares (see figure) reveal that the US (16%), UK (3%), and EU (15%) are our major trading partners. We held a trade surplus with the US and UK by US$ 12.7 billion, and US$ 1.2 billion individually in 2018. Germany, Netherlands, Belgium, Italy, France, and Spain are our top exchanging nations EU locale. With EU, we are having a trade deficit of US$ - 5.6 billion. The Biden-Administration and Brexit have provided India some changing international politico-economic platform for effective trade negotiations with these trading partners. But whether these deals will help combat the trade diversion effect of RCEP for India is an inquiry. Consequently, unlike the existing FTAs, India should be more cautious in signing deals with the UK and the US. We should not rush to arrange these agreements so that the incumbent and new exporters can effectively use the FTA courses. International outsourcing of high-tech processed intermediate manufacturing like chemicals, pharmaceuticals, computers, electronics, optical, machinery equipment, motor vehicles,etc., has increased in developed nations like the US, UK, and EU nations. Developing countries like India have revealed higher linkages in the value chain of low-tech primary products used as intermediaries and processed intermediate goods like food, coke, refined petroleum, basic metal, rubber,plastic, etc. Given the growing regional-GVCs, the mega-regional negotiations would likely be more effective in enhancing the interconnectedness among nations regardingtheir participation in GVCs in “Factory Asia” or in “Factory EU.” Thus, for India, bilateral treaties may not compensate the benefits of mega-treaties to move up to the GVC-ladder. Given our existing infrastructure, and other roadblocks of growth trajectory, the pandemic tells us that the V-shape recovery of the economy is theoretically possible. Under the circumstances, we should focus more on rebuilding our trade policy to gain a comparative advantage in high-tech processed intermediate products to create an “enabling environment” to trade in manufacturing and services. (Author is a Trade Economist, and Associate Professor associated with BML Munjal University, Haryana. Views are author’s own.)

Tata Steel Long back in the black in Q3, posts PAT of Rs 304 cr; stk up 13%

15 Jan, 2021, 10:38AM | Business Standards

Shares of Tata Steel Long Products hit a fresh 52-week high of Rs 810, zooming 13 per cent on the BSE on Friday, after the company reported a consolidated net profit of Rs 304 crore for the quarter ended December 2020 (Q3FY21), on the back of strong operational performance. The Tata group company had posted a consolidated a net loss of Rs 112 crore in December 2019 quarter (Q3FY20). The company's revenue from operations grew 37 per cent YoY at Rs 1,364 crore as against Rs 999 crore in the corresponding quarter of previous fiscal. Ebitda (earnings before interest, taxes, depreciation, and amortization) margin stood at 30.06 per cent in Q3FY21. Despite maintenance shutdowns during the quarter under review, the company achieved the highest ever quarterly crude steel production with a growth of 3 per cent quarter on quarter (QoQ) and 10 per cent year on year (YoY) on the back of debottlenecking and arcing. Tata Steel Long Products saw strong steel sales momentum in Q3FY21 but sales volumes were constrained by lower opening inventory post very strong sales in Q2FY21. As a result, deliveries were 166KT in Q3FY21, lower by 10 per cent on QoQ but increased by 2 per cent on YoY basis, the company said on January 8. Tata Steel Long Products is in the business of manufacturing high alloy steel, primarily for the auto sector and wire rope industry. With one million tonne capacity, it is one of the largest specialty steel plants in India in long product segment. In the past one month, the stock rallied 58 per cent, as compared to a 7 per cent rise in the S&P BSE Sensex. At 10:20 am, it was trading 9 per cent higher at Rs 783, as against a 0.41 per cent decline in the benchmark index. The trading volumes on the counter more-than-doubled with a combined 1.7 million equity shares changing hands on the NSE and BSE till the time of writing of this report.

Possible gas leak caused death of 4 workers at Rourkela Steel plant

15 Jan, 2021, 08:00AM | Business Standards

The deaths of the four contract workers in the "suspected gas leakage" incident at the coal chemical unit of Odisha's Rourkela Steel Plant in Odisha was possibly due to their exposure to a pocket of toxic gas entrapped in sludge deposits inside a gas pipeline, reported preliminary inquiries. According to an official statement, Rs 10 lakh compensation was given to the kin of all four victims by the contractor and a permanent job was also offered to one family member of each of deceased. "Though workmen were provided with mask and carbon monoxide gas monitoring meter, apparently they did not use the same for ease of work. Strict action has been taken against the contractor and his work has been suspended. The contractor paid Rs 10 lakh to family members of the deceased offered a permanent job to a family member of each of them. Besides it, each family will get compensation as per statutory provisions such as EPF, ESI," the statement said. The entire plant and township continued to remain normal during and after the incident. RSP reaffirmed that there was no gas leakage to the environment or equipment. At least four workers died and six others fell ill due to toxic gas leakage at the coal chemical unit of the Rourkela Steel Plant in Odisha on January 6. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

'WandaVision' debuts Friday, kicking off a new era for Marvel on Disney+

15 Jan, 2021, 04:56AM | CNBC

Elizabeth Olsen and Paul Bettany star as Wanda Maximoff and Vision in Marvel's "WandaVision."Disney "WandaVision," Marvel's first scripted series for Disney+, arrives on Friday, kicking off a stacked slate of interconnected superhero content.This new show centers around Wanda Maximoff (Elizabeth Olsen) and Vision (Paul Bettany), characters from the Marvel Cinematic Universe, who fell in love. The show begins with the pair living in a 1950s-inspired sitcom enjoying blissful suburbia. They cycle through a number of different decades, showcasing television tropes and iconic fashion from each era, as they begin to question their picture-perfect lives.Like other Disney+ shows made exclusively for the platform, "WandaVision" will air new episodes week to week. However, on Friday's debut audiences will get to see two episodes from the show. In total, the show has nine episodes.Also part of the cast is Teyonah Parris, who is playing Monica Rambeau, the daughter of Maria Rambeau. Maria is the best friend of Carol Danvers, aka Captain Marvel. Both Monica and Maria were featured in the 2019 film "Captain Marvel," which was set in the '90s when Maria was just a child.Kathryn Hahn also stars as Agnes, a seemingly cheery next door neighbor. Little is known about her character and many fans have speculated that she is the villain of the show."WandaVision" is the first Marvel project to debut since "Spider-Man: Far From Home" in July 2019 and will be followed by "The Falcon and the Winter Soldier" in March, "Loki" in May and the animated series "What If...?" in the summer. The future of the MCU In total, Marvel head Kevin Feige has 10 Disney+ shows planned over the next few years, including Jeremy Renner's "Hawkeye," featuring Hailee Steinfeld as Kate Bishop; "She Hulk," starring Tatiana Maslany; and "Moon Knight" with Star Wars alum Oscar Isaac.These shows are tied directly into the content that Marvel will debut theatrically. For example, "WandaVision" will have implications on Sam Raimi's "Doctor Strange in the Multiverse of Madness," which is slated to arrive in cinemas in March 2022.Marvel had produced a number of TV shows set in the MCU for Netflix, although those programs never felt connected to the content in the films. There were vague references to characters or events from the films, but no crossover between them. That will change with the new content arriving to Disney+. Elizabeth Olsen and Paul Bettany star as Wanda Maximoff and Vision in Marvel's "WandaVision."Disney There are expectations that the Disney+ series are debuting ahead of 2021's movies because there are events or characters in the episodes that could impact the films. In 2021, Marvel has "Black Widow," set for May 7; "Shang-Chi and the Legend of the Ten Rings," set for July 9; "Eternals," set for Nov. 5; and the Sony co-production "Spider-Man 3," set for Dec. 17.And characters from those Netflix shows â"Daredevil," "Jessica Jones," "Luke Cage," "Iron Fist" and "The Punisher" â may not be pushed completely to the wayside just because they were part of the Netflix shows. Feige has signaled that these characters could be be utilized in the future.There have already been rumors that Charlie Cox will reprise his role as Matt Murdock, aka Daredevil, in the third Spider-Man film and that Krysten Ritter could return in "She Hulk" as private eye Jessica Jones. Marvel has not confirmed these appearances. The power of Disney+ Disney's decision to bring its blockbuster comic book heroes to the small screen is multifaceted. It not only allows the company to explore characters that were introduced in the films, but not top-billed stars, and introduce new characters, but it is part of a larger strategy to bolster Disney+.In October, Disney reorganized its media and entertainment divisions so that it could focus more heavily on streaming going forward. This move came in the middle of the ongoing coronavirus pandemic, but the groundwork had been laid over the last few years. After all, Marvel had teased fans back in mid-2018 that these new Marvel shows were on the horizon.The launch of "The Mandalorian," which debuted on the first day Disney+ was available, cemented that Disney was on the right track. The Star Wars program proved that streaming shows could become a part of the cultural zeitgeist in the same way that Marvel's films had done on the big screen.According to recent Nielsen data, "The Mandalorian" was one of the top 10 most-streamed original shows in 2020. Its second season began streaming in October. The Mandalorian and the Child on Disney+'s "The Mandalorian."Disney Shows like "The Mandalorian," as well as exclusive content like Pixar's "Soul" and the filmed version of the musical "Hamilton," have driven more than 86.8 million subscribers to Disney+, smashing Disney's sign-up expectations.When Disney+ launched in late 2019, the company expected it would reach 60 million to 90 million subscribers by 2024. In December, it updated that forecast, saying it now expects it will have 230 million to 260 million subscribers by 2024.Exclusive content, particularly that which feeds a franchise that has garnered more than $22.5 billion in ticket sales in a little over a decade, is vital to the success of Disney+.As more companies launch their own streaming services and vie for a share of consumers' wallets, Disney will need this kind of must-see content to keep subscribers. Already, the company announced more than 100 projects, 80% of which will be going directly to Disney+, during its investor day in December.Disney's investment in these projects has lead the company to increase Disney+'s monthly subscription fee by $1 to $7.99.Investors are eagerly awaiting Disney's next earnings report on Feb. 11 to see how its subscriber numbers were impacted by the launch of "Soul" and "WandaVision." VIDEO4:0004:00Trading Nation: Two traders debate if Disney or Netflix will win the streaming warsTrading Nation

Tata Group puts post-pandemic bet on digital, electronics and health

14 Jan, 2021, 07:27PM | Business Standards

Tata Group plans to invest in digital, high-end electronics and healthcare in a post-pandemic world, the $100 billion conglomerate's chairman said on Thursday. Tata, whose operations span hotels, steel, airlines, electronic goods and technology services, will also place big bets on electric vehicles, renewable energy and battery storage, N Chandrasekaran, who is also known as Chandra, added. "When you look at trends for the future, definitely there are clear signs you can pick up. Anything that is digital, we're making a big bet on," Chandra told the Reuters Next conference. The coronavirus pandemic has accelerated the adoption of technology, changing the way people live, work and consume as well as how companies operate, he added. Tata has already made public its intent to launch an umbrella app enabling access to all its consumer businesses, Chandra said, in a concept borrowed from China where apps such as Alipay allow everything from hotel bookings to e-commerce. Tata is also building an online business-to-business platform. The owner of British luxury brand Jaguar Land Rover (JLR) is placing big bets on electric vehicles as well as on battery storage and renewable energy for consumer and industrial use. "We are very serious about electric vehicles," Chandra said, adding that Tata is investing in developing clean technology cars at home through Tata Motors and at JLR. Automakers are investing in EVs, largely driven by tighter government regulations on polluting vehicles, with Tesla, now the world's most valuable car company, readying plans to launch in India this year. Chandra said the adoption of technology and shift in consumer and corporate behaviour will lead to the creation of new and shared workplaces closer to where people live. Meanwhile there will be a higher degree of automation in Indian factories driven by a greater use of artificial intelligence, internet of things or connected devices and data. With some of these changes unlikely to reverse, Chandra is looking at new opportunities for Tata, particularly as India's economy springs back from damage during the early stages of the pandemic last year. "I've been quite surprised with the speed with which the economy is recovering and bouncing back," he said, adding that several Tata companies are already recovering losses as demand picks up except in areas like airlines. COVID-19 has also forced Tata to be more resilient to disruption in the global supply chains it depends on and for Chandra, one way to do this is to be a part of it. "There are couple of industries we have already identified. One is electronics, high-tech manufacturing, where we've already started the foray and we are developing plans for the future." Tata also plans to cater to growing demand for medical devices in India and around the world, Chandra said.

PV sales in India at ten-year low, industry working to regain volumes: SIAM

14 Jan, 2021, 06:12PM | Business Standards

Passenger vehicle wholesales in India slipped to a ten-year low in the April-December this fiscal, and the industry will have to work hard to regain better volumes and business health, industry body SIAM said on Thursday. While releasing the wholesale numbers for December and the third quarter (October-December) of the current fiscal, the industry body said high levels of uncertainty remain in the industry due to COVID-19 situation and shortage of critical components like semiconductors. SIAM noted that sales improvement in December and the third quarter did not convey the actual picture of the auto industry, which continues to face severe headwinds. As per the latest data by Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle (PV) wholesales increased 13.59 per cent to 2,52,998 units last month as compared with 2,22,728 in December 2019. Similarly, in the October-December quarter this fiscal, PV sales rose 14.44 per cent to 8,97,908 units from 7,84,616 in the year-ago period. "If we look at absolute numbers from April-December 2020, some clear highlights emerge. We are at a seven-year low in the two-wheeler segment, ten-year low in the PV segment. Similarly, we are behind ten years in the commercial vehicle segment. "In the three-wheeler segment, we are behind 20 years. This means the auto industry will have to work hard to regain better volumes and business health," SIAM President Kenichi Ayukawa told reporters in a virtual press conference. He noted that 2019-20 fiscal was a year of big de-growth for the auto industry, so using it as a base to calculate percentage growth for the current fiscal year would be misleading. "The sales growth we saw during the third quarter of the current fiscal contains some of the pent up demand from the first quarter, so standalone sales performance of the third quarter may not be a true reflection of the industry's overall sales," he said. Instead, cumulative sales from April to December 2020 period would better reflect the market pulse, Akukawa added. In the April-December period of the current fiscal, PV sales declined by 16.06 per cent to 17,77,874 units as compared to 21,17,920 units in the same period of 2019-20. Similarly, two-wheeler sales declined by 22.63 per cent, commercial vehicles by 37.23 per cent and three-wheelers 74.25 per cent as against the April-December period of 2019-20. On sales outlook, Ayukawa said while the industry expected 2021 to be better than 2020, it remained tough to predict the future with COVID-19 pandemic still there. "At the same time, the industry is facing a shortage of semiconductors steel and other materials. These may lead to supply and production disruptions at the OEMs. There is also an impact of the price increase of steel, logistics and other raw materials. In such kind of fluctuations, it is very difficult to predict the demand scenario going ahead," he noted. Ayukawa noted that initiatives such as the announcement of the PLI scheme, low-interest rates, targeted spending in rural areas and continued focus on building road infrastructure, will help in the industry's recovery process. On the Budget wish-list, Akukawa said they have sought introduction of the scrappage policy. "We have not sought GST reduction, but if they do it on their own we will appreciate that," he added. Ayukawa said the industry body has been following the government orders on safety and other regulations, and on making airbags mandatory for front passengers they have told the authorities that it would require some time in order to make preparations. As per SIAM, motorcycle sales increased 6.65 per cent to 7,44,237 units as against 6,97,819 in December 2019, while scooter sales were also up 5.59 at 3,23,696 units from 3,06,550 units a year ago. Two-wheeler sales during the December quarter rose 13.37 per cent to 47,82,110 units as compared to 42,18,157 in the same period a year earlier. However, commercial vehicle sales saw a dip of 1.12 per cent to 1,93,034 units in the quarter under review against 1,95,211 in October-December 2019. Vehicle sales across categories during the third quarter rose year-on-year by 10.61 per cent to 59,44,991 units from 53,74,680 units. Ayukawa said passenger vehicle and two-wheeler segments in the third quarter have shown some recovery, while commercial vehicle and three-wheeler segments were still in the negative zone.

Market Wrap, Jan 14: Here's all that happened in the markets today

14 Jan, 2021, 05:40PM | Business Standards

The Indian markets ended Thursday's volatile session with marginal gains amid weekly options expiry supported by gains in Tata Consultancy Services (TCS) and Reliance Industries. The S&P BSE Sensex closed at 49,584, up 92 points, or 0.19 per cent. The index hit an intra-day high and low of 49,664 and 49,182, respectively. The broader Nifty50 index, meanwhile, ended the session at 14,596, up 0.21 per cent. In the broader markets, the S&P BSE MidCap and SmallCap indices ended 0.29 per cent and 0.17 per cent higher, respectively. IndusInd Bank (up 3 per cent) and TCS (up 2.7 per cent) were the top Sensex gainers, along with Reliance Industries that rose 1 per cent. On the other hand, HCL Tech (down 2 per cent) led the list of losers. Out of the 30 Sensex constituents, 16 ended the day in the green. Among other individual stocks, Infosys plunged as much as 5 per cent while Wipro fell 6 per cent in the intra-day deals as investors booked profits in both the stocks after the companies posted better-than-expected numbers for the December quarter. Both the stocks partially erased their losses and ended 1 per cent lower each. Furthermore, shares of Steel Authority of India dipped 10 per cent to Rs 66.70 on the BSE on Thursday after the government fixed floor price at Rs 64 per share for its 10 per cent stake sale in steel company via offer for sale. On the upside, Hindustan Aeronautics ended the day 9.5 per cent higher after the government approved procurement of 83 indigenously-developed light combat aircraft 'Tejas' for the Indian Air Force at a cost of Rs 48,000 crore. In another development, Tata Consumer Products is expected to replace state-run GAIL in the Nifty50 index as part of the semi-annual reshuffle. According to an analysis by ICICI Securities, the free-float market cap — a key parameter for index inclusion—of Tata Consumer Products is currently at Rs 36,000 crore, while that of Gail is about Rs 30,000 crore. If the Tata group firm that operates Starbucks cafes in India gets added to the Nifty index, it will join peers such as Hindustan Unilever, Nestle India and ITC in the blue-chip index. Meanwhile, on the economic front, the wholesale price-based inflation slowed to 1.22 per cent in December on easing food prices, as per government data released on Thursday. The inflation based on Wholesale Price Index (WPI) was 1.55 per cent in November 2020, and 2.76 per cent in December 2019. Global markets US Treasuries slipped on Thursday on a report that President-elect Joe Biden will announce a stimulus package as big as $2 trillion, while Japanese stocks surged to a new three-decade peak as investors extended bets on a global growth rebound. Japan's Nikkei closed up 0.9 per cent at its highest level since August 1990. S&P 500 futures, FTSE futures and EuroSTOXX 50 futures all rose about 0.2 per cent.

Passenger vehicle sales increase 13.6% in December, says SIAM

14 Jan, 2021, 04:12PM | Business Standards

Passenger vehicle sales jumped 13.6 per cent in December to 2.52 lakh units as compared to 2.22 lakh in the year-ago period, the Society of Indian Automobile Manufacturers (SIAM) said on Thursday. Two-wheeler sales witnessed a muted growth of 7.4 per cent to 11.2 lakh units as compared to 10.5 lakh units in December 2019. However, three-wheeler sales skidded by 58.8 per cent to 22,126 units last month as compared to 53,795 units in the same period. On the other hand, total production of passenger vehicles in December 2020 was 19 lakh units as against 17.5 lakh in December 2019, marking a growth of 9 per cent. SIAM President Kenichi Ayukawa said the market situation is dynamic and uncertain. The industry is facing a shortage of semiconductors, steel and shipping containers. "If we look at the cumulative numbers of nine-month period from April to December 2020, it shows that sales of all segments are still behind by many years," he said. There is also an impact of price increase of steel, logistics and other raw materials. "The industry is working hard to get back to better volumes and better business health while ensuring safety and well-being of people across the whole value chain," said Ayukawa. Passenger vehicle sales totalled 17.7 lakh units in April to December 2020 as compared to 21.1 lakh units in April to December 2019, down 16 per cent. Commercial vehicles sales dipped 37.2 per cent to 3.58 lakh units as compared to 5.7 lakh units in the same period. Three-wheeler sales plunged by 74.2 per cent to 1.3 lakh units in April to December 2020 as compared to 5.07 lakh units year-on-year while two-wheeler sales totalled 1.07 crore units versus 1.39 crore, down 22.6 per cent. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Tata Altroz vs Hyundai i20 vs Volkswagen Polo: Turbo-charged comparison

14 Jan, 2021, 01:37PM | Times Of India

NEW DELHI: Tata Motors on Wednesday unveiled the all-new Tata Altroz turbo variant, making the premium hatch line-up completely loaded to take on its direct rival, the Hyundai i20. Tata Altroz had been performing decently in the segment until Hyundai i20 rained on the hatchback’s parade and claimed a big share of the pie in the premium hatch market. The Tata Altroz iTurbo comes as the automaker’s shot at redemption as the line-up is now at par with its prime rival, the i20. TOI Auto takes a closer look at Altroz iTurbo and the rivals and see which one manages to get ahead in the race, at least on paper. Price Starting off with the most decisive factor in an average Indian consumer’s purchasing experience, the Tata Altroz iTurbo is expected to start at Rs 6.99 lakh (ex-showroom). The Tata Altroz iTurbo will be offered in 3 trims – XT, XZ, and the range-topping XZ+. The Hyundai i20 Turbo, on the other hand, starts at Rs 8.79 lakh (ex-showroom) and goes up to Rs 11.32 lakh (ex-showroom). The i20 Turbo is available in two trims- Sports and Asta. The Volkswagen Polo GT TSI comes as a single-variant offering and is priced at Rs 9.67 lakh (ex-showroom). If Tata Motors actually manages to price the Altroz iTurbo anywhere under Rs 8 lakh (ex-showroom), it will become the most affordable turbo variant of a premium hatch in the market. Engine and performance The Tata Altroz iTurbo gets a 1.2-litre turbocharged petrol engine that offers 110 PS of power and 140 Nm of torque. The 1199cc engine is offered with a 5-speed MT just like the rest of the variants in the line-up. The Altroz iTurbo also offers two drive modes- City/Sport. The new Sport drive mode is introduced to add an edge to the performance as it comes with better throttle mapping and it offers around 25-30% more torque to the car. The hatch is claimed to clock 0-100 kmph in 11.9 seconds. The Hyundai i20 turbo variant is powered by a 1.0-litre, 3-cylinder turbocharged petrol engine that manages to deliver 120 PS of power and 172 Nm of torque. i20’s turbo 999cc engine is quite identical to the one boasted by the Hyundai Venue. The premium hatch is offered with two transmission options- 6-speed iMT or 7-speed DCT. The Hyundai i20 takes around 9.9 seconds to clock the 0-100 kmph sprint. The Volkswagen Polo GT TSI is powered by a 1.0-litre TSI engine that manages to offer 110 PS of power and 175 Nm of torque. The 999cc engine is paired to a 6-speed automatic DSG transmission. The Polo GT can clock the 0-100 kmph sprint in a little under 10 seconds, precisely at 9.7 seconds. When it comes to the engines and the transmissions, the Hyundai i20 does take an upper hand as it has many versatile options available. And the Hyundai i20’s turbo engine offers more power compared to the rivals too. In terms of torque, the Polo GT takes a lead. Fuel economy Another important factor when comparing the 3 rivals is fuel efficiency. Turbo variants usually drain the fuel tank faster as the power-hungry audience makes sure that they get the best out of the car but it is also important to see that the turbo engine doesn’t overdo it. The Tata Altroz iTurbo is claimed to offer a fuel economy of 18.3 kmpl, while Hyundai i20 Turbo offers 20.28 kmpl and the Volkswagen Polo GT TSI offers a mileage of 16.47 kmpl. The Hyundai i20 leads the pack here as the fuel economy, even on paper, is better than the rivals by a significant margin. Customers can also achieve a higher or a lower figure than the claimed efficiency and it all comes down to a person’s driving pattern. Features The most prominent inclusion in the Tata Altroz iTurbo is the iRA connected tech. The Altroz iTurbo offers multiple connected features in 5 different aspects of remote commands, vehicle security, location-based services, gamification, and live vehicle diagnostics. Some of the key connected features include remote immobilization, geo-fencing, roadside assist, driving score, and vehicle diagnosis. The iRA system is quite convenient as it now comprehends Hinglish commands too. The other inclusions in the Tata Altroz iTurbo variant are Xpress Cool (70% faster cooling), leatherette seats, personalized wallpaper on the infotainment screen, one shot up power windows, and 2 additional Harman tweeters in the cabin. The rest of the features are the same as the standard model. Moving on to the Hyundai i20, the creature comforts offered position the hatch much above its segment. The i20 comes with features like a 10.25-inch touchscreen infotainment system, 50 Bluelink connected features, a one-touch electric sunroof, oxyboost air purification system, puddle lamps, wireless charging, dual Bluetooth, and the Bose 7-speaker stereo system. The Volkswagen Polo GT TSI is also a connected car like both the rivals and the My Volkswagen Connect system does enhance the in-cabin experience. Some of the key connected features of the car are service history, geo-fencing, vehicle diagnostics, and much more. The infotainment system, Climatronic auto AC, ambient lights, sporty flat-bottom steering, chrome accents are some of the key features that are the same as the standard version. In terms of features, the Hyundai i20 gets ahead of the rivals with such a comprehensive platter. The Tata Altroz iTurbo has a very practical set of features and it also cuts down on unnecessary premium features which might be the key to keeping its price tag quite affordable. The Volkswagen Polo GT TSI is a connected hatch but it loses out in this aspect since the automaker has held itself back from making some massive upgrades inside. Safety The Tata Altroz iTurbo leads this front indisputably as the hatch has already been awarded a 5-star Global NCAP safety rating. The Volkswagen Polo is not far behind with a 4-star Global NCAP safety rating. The Hyundai i20 is still awaiting a rating. The Korean hatch is expected to score well as it is built on the K-platform with 66% HSS (high-strength steel). How does the Altroz iTurbo fare in the segment? The Tata Altroz iTurbo is a high-performance premium hatch for the purists. Practical features, a powerful turbo engine, a manual transmission, decent comfort, sporty appearance, and safety at its best, is all an Indian purist motorhead could ask for. If the pricing remains under the Rs 8 lakh slab, then the Altroz iTurbo is definitely worth adding to your garage. The Tata Altroz iTurbo maintains a very fine balance in its elements and also makes sure it is not left behind in the bigger race. Competing with the feature-loaded i20 or the torquey Polo GT, the Altroz iTurbo does lose out on the spotlight it deserves but once you step inside the hatch and step on the gas, you’ll know what we’re exactly talking about.

SAIL dips 10% after government sets floor price at Rs 64 for OFS

14 Jan, 2021, 10:10AM | Business Standards

Shares of Steel Authority of India (SAIL) dipped 10 per cent to Rs 67.60 on the BSE on Thursday after the government fixed floor price at Rs 64 per share for its 10 per cent stake sale in steel company via offer for sale (OFS). The OFS for non-retail investors opens today, while for retail investors, it will start on Friday. The floor price for the OFS is at a 14.32 per cent discount to Wednesday's closing price of Rs 74.70. The government has decided to sell up to 206.5 million shares, or 5 per cent of total equity of SAIL, through the OFS, the company said on Wednesday. It has also kept the option to sell another 5 per cent if the issue is oversubscribed. The government’s stake post the sale will come down from 75 per cent to 65 per cent if the greenshoe option is exercised. The 10 per cent stake sale in the steel maker could fetch the government Rs 2,600 crore in divestment receipts. The stock hit an over two-year high of Rs 80.35, on January 5, 2021, amid expectations of further improvement in performance due to the realisation of uptick in the domestic market and progressively lower proportion of exports. Since November 5, post the July-September quarter (Q2FY21) results, the stock's price has more-than-doubled after the company reported a consolidated net profit of Rs 437 crore on the back of strong operational performance. It had posted a net loss of Rs 286 crore in the same quarter of previous fiscal and a loss of Rs 1,226 crore in the June quarter (Q1FY21). At 10:08 am, SAIL was trading 8 per cent lower at Rs 68.55 on the BSE, as compared to 0.32 per cent decline in the S&P BSE Sensex. A combined around 77 million equity shares had changed hands on the counter on the NSE and BSE.

Lack of tiny parts disrupts auto factories worldwide

14 Jan, 2021, 09:10AM | Economic Times

Automakers braced for turmoil when the pandemic hit. They expected supply chain disruptions and plummeting sales. But they never figured that a year later one of their biggest problems would be PlayStations . Strong demand for gaming systems, personal computers and other electronics by a world stuck indoors has sucked up supplies of semiconductors, forcing carmakers around the world to scramble for the chips that have become as essential to mobility as gasoline or steel. Virtually no carmaker has been spared. Toyota Motor has shut down production lines in China. Fiat Chrysler Automobiles temporarily stopped production at plants in Ontario and Mexico. Volkswagen has warned of production problems at factories in China, Europe and the United States. Ford Motor said last week that it was idling a Louisville, Kentucky, factory for a week because of the shortage. When COVID-19 hit, automakers slashed orders for chips in anticipation of plunging sales. At the same time, semiconductor makers shifted their production lines to meet surging orders for chips used in products like laptop computers, webcams, tablets and 5G smartphones. Businesses also upgraded their digital infrastructure to handle online meetings and employees working from home, while telecommunications companies invested in broadband infrastructure, further fueling demand for semiconductors. Then auto sales bounced back faster than expected at the end of 2020, catching everyone off guard. The shortages of chips that ensued are expected to last well into 2021, because it can take semiconductor makers six to nine months to realign production. “Consumer electronics exploded,” said Dan Hearsch, a managing director at the consulting firm AlixPartners. “Everybody and their brother wanted to buy an Xbox and PlayStation and laptops, while automotive shut down. Then automotive came back faster than expected, and that’s where you get into this problem.” While the shortage is not expected to cause auto prices to rise very much, buyers might have to wait longer to get the vehicles they want. iStock The chip shortage has its roots in long-term forces reshaping the auto and semiconductor industries, as well as short-term confusion from the pandemic. During the past decade, carmakers have become increasingly dependent on electronics to boost the appeal of their products, adding features such as touch screens, computerized engine controls and transmissions, built-in cellular and Wi-Fi connections, and collision avoidance systems that use cameras and other sensors. New cars can have more than 100 semiconductors, and the lack of even a single component can trigger production delays or shutdowns, industry analysts and consultants said. Long-term pressure on chipmakers to control production costs has also played a role. Semiconductor companies that supply the auto industry, such as Infineon, NXP Semiconductors and Renesas, chose to have their most advanced chips made for them by external manufacturing services, known as foundries. But the manufacturers also maintain their own factories to make simpler auto chips, frequently fabricating them on 8-inch silicon wafers rather than the 12-inch discs used in more modern plants. Manufacturers with plants using older 8-inch wafers weren’t easily able to increase production. They hadn’t invested much lately in new equipment, which is now harder to find because that technology is older, said Syed Alam, global lead for Accenture’s global semiconductor consulting practice. Geopolitics also played a role. The Trump administration in September placed restrictions on Semiconductor Manufacturing International Corp., China’s main foundry, which produces chips for cars and many other applications. The company’s customers began looking for alternatives, generating additional competition for chip supplies from other foundries, said Gaurav Gupta, a vice president at the research firm Gartner. The chip crisis is an example of how the pandemic has shaken the global economy in unpredictable ways. Carmakers expected to face supply chain shortages, and plants closed early in 2020 because of fear that workers would infect one another, or because trucking firms had stopped delivering. Most U.S. auto factories ceased production for roughly two months last spring. But suppliers and carmakers quickly found ways to contain contagion within factories and got assembly lines going again. The impact on most parts supplies was less than feared. The semiconductor shortage came out of left field, hitting the industry at a perilous moment. Sales have plunged worldwide. In Europe, for example, they were down 25% in 2020. This is all happening while automakers are trying to navigate a shift in basic technology from internal combustion engines to batteries, which has subjected them to new competition from Tesla , the California company that has become the most valuable automaker in the world by far, and emerging Chinese manufacturers like Nio. Exactly how long the shortage will last is unclear. It can take 20 to 25 weeks from the time new orders are placed for chips to be produced and work through the supply chain to reach cars, said Michael Hogan, a senior vice president at GlobalFoundries , a big chip manufacturer that services the auto industry and other markets. “We are doing everything humanly possible to prioritize our output for automotive,” Hogan said. German auto electronics supplier Bosch said the shortage was particularly acute for integrated circuits used to control engines, transmissions and other key functions. “Despite the difficult market situation, Bosch is doing all it can to keep its customers supplied and to keep any further impact to a minimum,” the company said in a statement. Carmakers and suppliers are reacting as best they can. BMW, based in Munich, said it had been able to maintain production but was “observing the situation intensively” and in constant contact with suppliers. For carmakers already stressed by the pandemic, some impact is inevitable. Honda said Wednesday that it would shut down some production activities at its plant in Swindon, England, which builds Civics, for at least four days starting Monday. Honda cited supply chain problems, including shortages of semiconductors. German supplier Continental, which is best known for tires but also produces electronic components, called on semiconductor producers to build up capacity in the foundries that produce chips. “Future investment in these foundries will therefore be critical so that the automotive industry can avoid such supply chain upheavals in the future,” Continental said in a statement. Infineon, based in Munich, said it was stepping up investment in new production capacity in 2021 to as much as 1.5 billion euros, or $1.8 billion, from 1.1 billion euros in 2020. The company is also ramping up production at a new chip factory in Villach, Austria, that will produce 12-inch wafers. But it will take time for the semiconductor makers to catch up. In the meantime, PlayStations have priority. “Automotive came back and they are not the front of the line for chips anymore,” said Gary Silberg, global head of the automotive practice at KPMG .

Stocks to watch: Infosys, Wipro, SAIL, HAL, IndusInd Bank, NHPC, 5Paisa

14 Jan, 2021, 08:23AM | Business Standards

The Nifty futures on Singapore Exchange (SGX) traded 14 points higher at 14,586, around 8.20 am, indicating a flat-to-positive start for benchmark indices in Thursday's session. Here are the top stocks to track today: Infosys: The company, on Wednesday, raised its full-year revenue and margin guidance after posting 16.6 per cent growth in net profit in the quarter ended December (Q3). The consolidated net profit of Rs 5,197 crore in Q3 is the highest ever for the firm. READ HERE Wipro posted 20.9-per cent year-on-year (YoY) growth in consolidated net profit at Rs 2,968 crore for the December quarter. The company said its dollar revenue growth was the highest in 36 quarters. READ HERE Q3 earnings: Den Networks, HFCL, Reliance Industrial Infrastructure, Tata Steel Long Products, Websol Energy System and Digicontent will announce their quarterly numbers today. IndusInd Bank: Sebi has provided an additional two weeks to promoters of IndusInd Bank for infusion of residual capital in lieu of conversion of warrants issued to them last year worth over Rs 2,695 crore, a filing said. SAIL: The government will sell up to 10 per cent stake in SAIL via offer for sale on January 14-15 and the offer price has been fixed at Rs 64 per share. NHPC: The company has inked a definitive agreement for takeover of Rangit-IV hydro power project in Sikkim. The agreement is for implementation of the approved resolution plan for takeover of 120 MW Rangit-IV hydro power project of Jalpower Corporation (JPCL) in Sikkim. Power Grid Corporation: The company has signed the 'Termination Agreement' with Reliance Infrastructure and Parbati Koldam Transmission Company, terminating the shareholders' agreement which was executed between them to form a joint venture company named PKTCL. HAL: The government has approved procurement of 83 indigenously-developed light combat aircraft 'Tejas' for the Indian Air Force at a cost of Rs 48,000 crore. 5Paisa Capital: The company reported a net profit of Rs 3.06 crore in the third quarter ended December 31. In comparison, the company had posted a net loss of Rs 2.18 crore in the year-ago period. GTPL Hathway: The firm posted a 37 per cent YoY jump in net profit at at Rs 45.2 crore. However, the revenue was down 5 per cent at Rs 647.1 crore. CESC: The firm posted around 25 per cent YoY jump in consolidated net profit at Rs 328 crore for December quarter. Adani Green: Adani Trading Services LLP, a promoter entity of Adani Green, on Wednesday sold 2 crore shares of Adani Green Energy Ltd worth over Rs 1,840 crore through open market transactions. Yes Bank has announced a tie-up with Aditya Birla Wellness to launch a credit card offering annual complimentary preventive health check-up and on-call consultation with doctors, specialists, counsellors and nutritionists. Indian Bank has raised Rs 2,000 crore by issuing Basel-III compliant bonds. The bank has raised tier-2 capital fund through private placement of Basel-III compliant tier-2 bonds, Indian Bank said in a regulatory filing. Inox Leisures: The company on Wednesday opened three new multiplexes, taking its total count to 150. The firm has opened two multiplexes in Gurugram having four screens each, and one at Salem (Tamil Nadu) with 3 screens. DLF: Realty major DLF and US-based Hines will invest around Rs 1,300 crore to construct the first phase of a premium commercial project, largely office space, in Gurugram, a senior company official said. Bank of Baroda: The PSU lender has raised over Rs 969 crore through a private placement of bonds. The fund raised through Unsecured Subordinated Non-Convertible fully paid up Basel III Compliant Additional Tier I Bonds. Kajaria Ceramics: The board of the company is scheduled to meet on January 21 to consider declaration of interim dividend, if any, for the financial year 2020-21.

Market Ahead, January 14: Top factors that could guide markets today

14 Jan, 2021, 08:11AM | Business Standards

Good morning, everyone. It's Thursday, January 14, and welcome to today's Market Ahead, a pre-market podcast from Business Standard. Global cues, stock-specific triggers and macro data along with Q3 earnings are likely to guide the Indian markets when they open for trading today. Going by the SGX Nifty futures that traded 26 points up at 14,599 around 7.20 am, D-Street could witness a flat-to-positive start to Thursday's session and Sensex could once again make a dash for 50,000 mark. In overnight trade, Wall Street closed mixed as investors waited for details of the next US fiscal stimulus plan, expected to be announced by President-elect Joe Biden later today. The Dow Jones Industrial Average fell 0.03%, the S&P 500 gained 0.23%, and the Nasdaq Composite added 0.43%. Meanwhile, in Asia, markets eked out gains even as political events in Washington culminated in the impeachment of President Donald Trump. Japan’s Topix index added 0.5% and Australia’s S&P/ASX 200 Index rose 0.3%.S&P 500 futures gained 0.2%. Besides that, market participants would also track macro data such as WPI inflation for December and US jobless claims data. A host of stock-specific news could also guide the market mood today, here's a look: Investors would react to the Q3 earnings announcement by Infosys and Wipro. Infosys raised its full-year revenue and margin guidance after posting 16.6 per cent growth in net profit in the quarter ended December. Meanwhile, Wipro posted a 20.9-per cent year-on-year (YoY) growth in consolidated net profit at Rs 2,968 crore for the December quarter. Den Networks, HFCL, Reliance Industrial Infrastructure, Tata Steel Long Products, Websol Energy System and Digicontent will announce their quarterly earnings on January 14. The government will sell up to a 10% stake in SAIL via offer for sale on January 14-15 and the offer price has been fixed at Rs 64 per share. Adani Trading Services LLP, a promoter entity of Adani Green, on Wednesday sold 20 million shares of Adani Green Energy worth over Rs 1,840 crore through open market transactions. HAL shares are likely to react to government's approval of the procurement of 83 indigenously-developed light combat aircraft 'Tejas' for the Indian Air Force at a cost of Rs 48,000 crore. SEBI has granted IndusInd Bank promoters extension until February 18 on warrant subscription, according to a media report.

Facebook tracking a rise in violent rhetoric tied to Biden's inauguration

13 Jan, 2021, 10:05PM | Business Standards

Facebook Inc has seen an increase in signals indicating potential future acts of violence associated with efforts to contest the result of the U.S. presidential election since the Capitol siege last week, a company spokeswoman told Reuters. The spokeswoman, who asked not to be named for security reasons, said late Tuesday the storming of the U.S. Capitol by armed pro-Trump demonstrators appeared to be a galvanizing event, spawning efforts to organize gatherings across the country for multiple dates around President-elect Joe Biden’s Jan. 20 inauguration. Signals Facebook tracked included digital flyers promoting the events, some of them featuring calls to arms or the insignia of militias or hate groups, she said. The FBI has warned of armed protests being planned for Washington and all 50 U.S. state capitals in the run-up to the inauguration. The Facebook spokeswoman said the pace of the company’s exchange of information with law enforcement officials had likewise increased since the Capitol protests. Violent rhetoric on online platforms had already ramped up in the weeks before last week’s unrest as right-wing groups planned the assault, largely in open public view, according to researchers and public postings. Lawmakers were forced to flee as the Capitol was mobbed by Trump loyalists, white nationalist groups and militias who overwhelmed security forces. Five people died in the violence, including a Capitol Police officer who was beaten as he tried to ward off the crowds. After the unrest, tech companies took unprecedented steps to crack down on the baseless claims of election fraud that had spurred calls for violence. Twitter Inc and Facebook blocked Trump’s accounts, while Amazon Web Services and the major mobile app stores cut off social media network Parler. On Monday, Facebook banned content promoting the phrase “stop the steal,” which has become a rallying cry at armed pro-Trump protests. The company was also blocking searches for “storm the Capitol” and flagging posts that include those phrases for further review, the spokeswoman said. Under pressure from civil rights groups, Alphabet Inc’s YouTube suspended Trump’s channel for seven days.

As House nears impeaching Trump, Republicans mull starting trial by Friday

13 Jan, 2021, 08:00PM | Business Standards

Washington: As the US House of Representatives neared a vote on Wednesday to impeach President Donald Trump, Republican leaders in the Senate weighed whether to launch a trial on Friday to consider removing him from office, a source familiar with the deliberations said, though no final decision has been reached. With only a week remaining in Trump's tumultuous four-year term, an immediate trial could allow the Senate to vote on whether to oust him before he leaves the White House and Democratic President-elect Joe Biden takes office on Jan. 20. The internal Senate discussions took place as the Democratic-controlled House moved toward impeaching the president for his role in last week's siege of the US Capitol, when Trump supporters breached the building's security, sent lawmakers fleeing and left five dead in their wake, including a police officer. Just after noon (1700 GMT), a majority of the House approved a procedural measure clearing the way for a vote, expected later in the day, on a single article of impeachment formally charging Trump with inciting insurrection in a speech shortly before the riot. "The president of the United States instigated an attempted coup in this country," Democratic Representative Jim McGovern said on the House floor. "If this is not an impeachable offense, I don't know what the hell is." Some Republicans made speeches urging the House not to impeach Trump in the interest in promoting national healing. Lawmakers remained on edge after last week's violence, and large numbers of National Guard troops wearing fatigues and carrying rifles were stationed outside and inside the building. If the House approves it, Trump - already one of only three presidents to be impeached - would become the first president to see it happen twice. Under the US Constitution, impeachment in the House triggers a trial in the Senate. Republican Senate Majority Leader Mitch McConnell had previously suggested no trial could begin until the Senate was scheduled to be back in regular session on Jan. 19, only a day before Democratic President-elect Joe Biden is due to be sworn in. Democrats, including Senate Minority Leader Chuck Schumer, have pressured McConnell to agree to bring the Senate back sooner under emergency circumstances and the source noted that the Senate has already scheduled a normally sparsely attended "prof forma" session on Friday. The New York Times reported that McConnell is said to be pleased by the House impeachment push. If Trump is impeached, a two-thirds majority of the Republican-led Senate is needed to convict him, meaning at least 17 Republicans in the 100-member chamber would have to find him guilty. Trump's actions have weakened his once-iron grip over his party. While no Republican senators have said they would vote to convict, two - Lisa Murkowski of Alaska and Pat Toomey of Pennsylvania - have called on Trump to resign. At least five House Republicans, including Liz Cheney, a member of her party's leadership team, said they would vote for impeachment. 'Attempted coup' The House convened in the same chamber where lawmakers hid under chairs and donned gas masks last Wednesday as rioters clashed with police in the halls of the Capitol, after Trump in an incendiary speech urged supporters to march on the building. In a break from standard procedure, Republican leaders in the House have refrained from urging their members to vote against impeaching Trump, saying it was a matter of individual conscience. "Instead of moving forward as a unifying force, the majority in the House is choosing to divide us further," Oklahoma Republican Tom Cole said on the House floor. "Let us look forward, not backward. Let us come together, not apart. Let us celebrate the peaceful transition of power to a new president rather than impeaching an old president." Cole was one of 139 House Republicans who voted against certifying the Nov. 3 presidential election results on Jan. 6, hours after the violence, after the Republican president repeated his false claims of widespread voting fraud. Other Republicans argued Democrats were rushing to judgment for political reasons and called for the creation of a commission to study the events surrounding the siege as an alternative. If Trump is removed from office, Vice President Mike Pence would become president and fill out his term. House Majority Leader Steny Hoyer, the No. 2 Democrat, said Democrats intended to send the impeachment charge, once approved, to the Senate "as soon as possible," and House Speaker Nancy Pelosi named nine impeachment managers who would present the House's case during a Senate trial. Hoyer told reporters he expected between 10 and 20 House Republicans to vote for impeachment on Wednesday. Washington is on high alert ahead of Biden's inauguration. Democrats moved forward on an impeachment vote after Pence rejected an effort to persuade him to invoke the 25th Amendment of the US Constitution to remove Trump. The House previously voted to impeach Trump in December 2019 on charges of abuse of power and obstruction of Congress stemming from his request that Ukraine investigate Biden and his son Hunter ahead of the election, as Democrats accused him of soliciting foreign interference to smear a domestic political rival. The Republican-led Senate in February 2020 voted to keep Trump in office. Wednesday's article of impeachment accused Trump of "incitement of insurrection," saying he provoked violence against the US government in a speech to thousands of supporters near the White House shortly before the Capitol siege. The article also cited Trump's Jan. 2 phone call asking a Georgia official to "find" votes to overturn Biden's victory in the state. In his first public appearance since last Wednesday's riot, Trump showed no contrition on Tuesday for his speech shortly before the siege. "What I said was totally appropriate," Trump told reporters. Democrats could also use an impeachment trial to push through a vote blocking Trump from running for office again. Only a simple Senate majority is needed to disqualify Trump from future office, but there is disagreement among legal experts as to whether an impeachment conviction is required first.

Govt to sell up to 10% in SAIL via OFS, may fetch Rs 2,600 crore

13 Jan, 2021, 06:42PM | Business Standards

The government will sell up to 10 per cent of stake held in Steel Authority of India through an offer for sale, in a move that’s expected to fetch Rs 2,600 crore to the exchequer in divestment receipts. The government is selling 206.5 million shares or 5 per cent in the one of the largest steel-making companies with a floor price of Rs 64 a share. It has also kept the option to sell another 5 per cent if the issue is oversubscribed. The government’s stake post the sale will come down from 75 per cent to 65 per cent if the greenshoe option is exercised. The 10 per cent stake sale in the steel maker could fetch the government Rs 2,600 crore in divestment receipts. ALSO READ: India Inc gets back to office cautiously, even as many MNCs remain shut The issue will open for non-retail investors on January 14, and on January 15 for retail investors. SAIL, that comes under Ministry of Steel, has an annual capacity of 21.4 million tonne per annum to produce crude steel. With broad markets at record highs, the government is moving swiftly with stake sales and initial public offerings as it tries to meet its ambitious Rs 1.2 trillion target for the ongoing fiscal. The government is also expected to get about Rs 1,500 crore from IRFC IPO to be launched on January 18, the first one to make allotment for anchor investors. DIPAM’s target for the ongoing fiscal also includes IPO of India’s largest insurer LIC and stake sale in IDBI Bank taking its cumulative target to Rs 2.1 trillion. IPO of LIC and IDBI stake sale is unlikely to be completed this year. The government has so far mopped up only Rs 13,844.5 crore in divestment receipts.

China wants to open up its financial markets to foreigners — but it's a long road ahead

13 Jan, 2021, 07:15AM | CNBC

A worker pours molten iron into a mold at a mill manufacturing marine engine components in Huaian, Jiangsu province, China February 11, 2019.Reuters BEIJING â Financial institutions are betting on more business opportunities in China's finance industry, which Beijing is eager to crack open â even if analysts say major changes are a long way off.Regardless of the coronavirus pandemic or geopolitical tensions, Chinese authorities have stuck to plans to increase the ability of foreigners to participate in the local financial market.Beijing would like more foreign capital to come into the country and boost international use of its currency, known as the yuan or renminbi. As China is set to grow into the world's largest economy, foreign investors are keen to capture a share of that growth.Some of the most recent developments in the industry are in the Chinese futures market. Investors can trade futures contracts as a way to bet on upcoming price changes, or guard against losses."As China introduces more international (futures) contracts such as the recent copper contract from (the Shanghai International Energy Exchange), we have been getting a vast amount of interest from our existing clients, especially from Europe some from the U.S. as well," said Rick Chang, general manage for Greater China at U.S.-based financial data and trading software company, CQG.The interest in copper means the commodity "has a huge potential of being a key benchmark to the market globally and regionally," Chang said. Greater influence in global prices In November, copper became the latest Chinese futures contract available for trading by overseas investors via the Shanghai International Energy Exchange, or INE.The Chinese crude oil contract that launched less than three years ago is now the third-most traded in the world for the commodity, albeit far below that of international benchmark Brent crude, and U.S. crude oil futures, WTI."We've seen an increasing number of overseas investors trading at INE covering over 20 countries and regions from five continents around the world," the Shanghai International Energy Exchange said in a statement to CNBC.In a sign of how much INE would like to attract foreign investors, the exchange launched online courses in English last year about the Chinese futures market.The potential for pricing power feeds into a longer-term goal of increasing global influence. As long as China has capital controls and foreign participation is not large enough, China's â¦ global influence in price setting will still be limited.Li-Gang LiuChief China economist, Citigroup While China is the world's largest consumer of many major commodities, its closed financial markets have meant that prices for products ranging from iron ore to copper are set by futures contracts traded in Chicago and London.In another step toward making the local financial market more accessible to foreigners, authorities added futures and other products in November to an investment channel that allows overseas capital into China. Known as the Qualified Foreign Institutional Investor (QFII) program, the channel previously limited foreigners to mainland-traded stocks. Chinese firms go abroad Reflecting growing international interest in Chinese futures, CQG strengthened its collaboration with Hangzhou-based brokerage Nanhua Futures in August through a global strategic partnership.The deal will allow overseas access to the six international futures products currently listed on three Chinese exchanges: copper, crude oil, rubber, low-sulfur fuel oil, iron ore and purified terephthalic acidÂ (PTA), which is used in polyesters.Nanhua Futures has seen very rapid growth in foreigners' trading volume, Li Lingfang, head of the international department at the brokerage told CNBC in December. In the past 12 months, growth more than doubled, she said.Nanhua has operations in Hong Kong, Singapore, the U.K. and the U.S. The company said the top four locations for overseas clients come from Switzerland, the Netherlands and Israel, Hong Kong. VIDEO3:1603:16U.S. regulatory risks are driving Chinese firms to seek Hong Kong listings: Bain & Co.Street Signs Asia Other Chinese futures firms, such as Huatai, have also opened offices in the U.S. in the last several years.More Chinese firms are starting to become futures commission merchants in the U.S., said JB Mackenzie, managing director of futures and forex at U.S.-based brokerage, TDÂ Ameritrade."As that information (about Chinese futures) becomes more streamlined and better understood by firms globally, I think you'll continue to see increased interest from investors outside mainland China to access (the) market," Mackenzie said, "and you've already seen that uptick."On the business side, last year Chinese regulators removed limits on foreign ownership of futures, securities and mutual fund management companies. U.S. and European business associations in China say finance is one area in which members are able to benefit from recent regulatory changes.Already, companies such as J.P. Morgan are working to boost their Chinese operations in the futures industry.Fang Xinghai, vice chair of the China Securities Regulatory Commission, spoke at the Asia Futures Conference in December about the opening of China's financial markets to foreigners."The U.S. futures market is a market that China has looked to for experience," Fang said. "We look forward to having more exchange of information between the Chinese market and the American market." Long road ahead However, some of the other inroads U.S. financial companies have made in China were mostly a result of the phase one trade agreement signed in January 2020. They come about two decades since China was meant to open up its financial sector after joining the World Trade Organization.China's strict controls on investors taking money out of the country can also deter foreigners."The issue at this moment (is) whether foreign investors can have free access to China's futures and whether in the future, the futures market could allow this contract to be done in not only in renminbi but other type of currencies," said Li-Gang Liu, managing director and Chief China economist at Citigroup."As long as China has capital controls and foreign participation is not large enough, China's â¦ global influence in price setting will still be limited," he said.

Best of BS Opinion: A Budget after contraction, new regulators, and more

13 Jan, 2021, 07:01AM | Business Standards

Our experience shows the pandemic will not mark a complete break with the scheme of things. Uddalok Bhattacharya sums up In the past, three Budgets were presented in the backdrop of a contraction, says A K Bhattacharya. What was common to them? If one were to create a steel regulator or a cement regulator, chances are those would ape the financial sector regulatory model, says Somasekhar Sundaresan. The danger lies there You consume content (TV and OTT) not just because you want to while away your time, but also because it gives you social capital. Hence appointment viewing will live on, says Ambi Parameswaran QUOTES Insofar as the apprehension regarding MSP (minimum support price) being done away with, it is submitted across the Bar that the same may not be dismantled. The Supreme Court Bench The credentials of these four people (on the Supreme Court panel), I think, do not inspire confidence because of the way they have been leaning towards these laws. Farmer leader and Punjab Congress chief Sunil Jakhar

Walmart customers don't expect a speedy economic recovery, top executive says

13 Jan, 2021, 04:25AM | CNBC

Shoppers are seen wearing masks while shopping at a Walmart store in Bradford, Pennsylvania, July 20, 2020.Brendan McDermid | Reuters Walmart Chief Customer Officer Janey Whiteside said Tuesday that many of its shoppers don't expect the economy to quickly bounce back from the coronavirus pandemic.Almost half of customers surveyed in November told Walmart that they were worried about the current health of the economy, she said when speaking at the virtual National Retail Federation conference. She said 40% said they didn't expect "any kind of speedy recovery.""Our core Walmart customer is absolutely not immune to the economic slowdown, in fact may even be disproportionately impacted," she said, noting that the pandemic has bifurcated society as it's hit some industries like hospitality and not others.Walmart's sales and earnings have risen during the pandemic, as customers have turned to its more than 4,700 U.S. stores and its website for groceries, hair color, puzzles and more. Its same-store sales rose by 6.4% and its U.S. e-commerce sales soared by 79% year over year in the fiscal third quarter ended Oct. 31. The company has not yet reported its fourth-quarter earnings, which include the holiday shopping season.Yet Whiteside said the company realizes customers feel financially strapped as they try to put food on the table and juggle other expenses, such as school supplies for their children. She said "galvanizing around that group of customers who needs us more than ever really is the fuel that keeps Walmart going.""We know they're continuing to look for ways to save money on basic items, so whether that is looking to switch from national brand to private brand, look for small pack sizes, cherry-picking deals when they're available," she said. "We also know that they are continuing to make sure they don't have to sacrifice on experiences for their families, so they're looking at where they can balance the wallet." VIDEO2:5002:50Walmart CEO Doug McMillon urges Congress to get a stimulus deal doneSquawk Box On Monday, Walmart announced it's creating a fintech start-up with venture capital firm Ribbit Capital. It did not share what services it may launch, but said they'll be affordable. Walmart already offers some financial products such as prepaid debit cards for customers with a poor credit history or no relationship with a bank.Walmart's plan to open health clinics is also geared toward affordability. The clinics offer lower prices that are listed upfront and can be paid out of pocket, such as $30 for an annual checkup or $45 for a counseling session."In these times, when everybody's got so much going on in their heads, we also know that saving time and kind of lifting that cognitive load for people is also at a premium," Whiteside said.

CES 2021: Samsung introduces its first-ever AI-powered water purifier

12 Jan, 2021, 10:46PM | Business Standards

Samsung Electronics on Tuesday introduced its first-ever water purifier as the tech giant enters the fast-growing home water purifier market amid the pandemic-induced stay-at-home trend. Samsung unveiled the BESPOKE water purifier that is highlighted by space-efficient design and easy care features at its media event for the Consumer Electronics Show (CES) 2021. The new water purifier will be launched in South Korea in the first quarter of the year, the company added, reports Yonhap news agency. Samsung's BESPOKE water purifier is an under-sink, modular-type product that offers enhanced customising options. Users can order the product with a single faucet or multiple faucets and select from a standard ambient, cold-ambient model or hot-cold model depending on their preferences, reports Yonhap news agency. They can also install the filter module either vertically or horizontally under the sink. Samsung said its water purifier, equipped with a four-level filter system, can filter a maximum 2,500 liters of water, which is enough for a four-person family to drink for a year. While most water purifier makers offer maintenance services through technician visits, Samsung said it has applied auto smart care solution so that users can manage their products on their own amid the contactless trend. Samsung said it used stainless steel purification pipes and that the water purifier will sanitize them every three days. If consumers don't use the product for four hours, it will also automatically discharge water. The South Korean tech giant added it applied artificial intelligence (AI) technology that can analyze people's water use data and send notices to their mobile devices when the purifiers require filter replacement. With the latest product, Samsung is also expected to enter into fierce competition with local water purifier makers including Coway, LG Electronics and SK Magic. Meanwhile, Samsung is working on a robot that can pick up laundry, load the dishwasher, set the table, pour wine, and even bring you a drink. The robot is called Bot Handy, and Samsung says it'll be able to recognize objects using a camera and AI, reports The Verge. The bot is meant to be "an extension of you in the kitchen, living room, and anywhere else you may need an extra hand in your home," Sebastian Seung, president of Samsung Research, said during Samsung's CES press conference on Monday --IANS wh/rs (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

US House Democrats race to impeach Trump over deadly Capitol siege

12 Jan, 2021, 10:08PM | Business Standards

Democrats will give President Donald Trump one last chance on Tuesday to leave office just over a week before his term expires or face an unprecedented second impeachment over his supporters' deadly Jan. 6 assault on the U.S. Capitol. The Democratic-led House of Representatives plans to vote as soon as Wednesday on an article of impeachment charging Trump with inciting an insurrection unless he resigns or Vice President Mike Pence moves to oust him under a provision in the U.S. Constitution. Making his first public appearance since the rampage that killed five, Trump lambasted Democrats for pushing ahead with the impeachment drive. "This impeachment is causing tremendous anger," Trump told reporters as he left the White House for a trip to the U.S.-Mexico border wall near Alamo, Texas. He also defended the remarks he made last week to a rally of his supporters immediately before some of them stormed the Capitol, saying, "I want no violence." The Republican president, however, did not answer a reporter's question about whether he would resign. The House will vote later on Tuesday on a resolution calling on Pence, a Republican, to invoke the 25th Amendment, a never-before used law that allows a majority of the Cabinet to strip the president of power if he or she is unable to discharge the office's duties. Pence advisers say he is opposed to the idea. The violence at the Capitol last week caused a serious rift between Trump and Pence, and the two men did not speak for days, although they did meet at the White House on Monday. A senior administration official said they discussed the violence. "The two had a good conversation, discussing the week ahead and reflecting on the last four years of the administration's work and accomplishments," the official added. If Trump has not stepped down and Pence has not taken action by Wednesday, Democratic leaders plan to bring impeachment to the House floor, one week after a riot that forced lawmakers into hiding for hours and left behind five dead, including a police officer. Two Democratic lawmakers, U.S. Representatives Pramila Jayapal and Bonnie Watson Coleman, said they tested positive for Covid-19 days after being locked down for hours with other colleagues, including Republicans who did not wear a face mask, to avoid the mob. REPUBLICAN CENSURE Meanwhile, U.S. Representative Tom Reed, a moderate Republican, wrote in a New York Times op-ed that he and House colleagues would introduce a censure resolution against Trump on Tuesday as an alternative to a "rushed, divisive" impeachment. But House Speaker Nancy Pelosi, the top congressional Democrat, told Democratic members on a conference call on Monday that a censure "would be an abdication of our responsibility," according to a source familiar with the call. Democratic lawmakers introduced one article of impeachment on Monday, accusing Trump of inciting a violent insurrection with a fiery speech exhorting thousands of followers to march on Congress as it worked to certify President-elect Joe Biden's Nov. 3 election victory. "The president's threat to America is urgent, and so too will be our action," Pelosi said. With only eight days left in Trump's term, chances the Democratic drive will result in his removal appear remote. Impeachment would trigger a trial in the Republican-controlled Senate, which is in recess and not scheduled to return to Washington until Jan. 19, the day before Biden is to be sworn in. A Senate conviction requires a two-thirds majority of those present, which means at least 17 Republicans would have to break with a president who has maintained an iron grip over his party for four years. Democrats will take control of the Senate once the two winners of last week's runoff elections in Georgia are seated later this month, creating a 50-50 split and giving Vice President-elect Kamala Harris the tie-breaking vote once she is sworn in. An impeachment trial could proceed even after Trump leaves office. Some Democrats have expressed concern that a trial could hamper Biden's agenda, slowing down confirmation of his appointees and distracting from legislative priorities such as a new coronavirus relief package. If an impeachment trial is held, Biden said on Monday he hoped the Senate would be able to conduct normal business at the same time, perhaps by splitting its hours in half. TRUMP SILENCED Until his departure for Texas, Trump had not been seen in public since the day of the Capitol siege. Trump's favorite means of communication was cut off last week when Twitter suspended his account permanently, saying it was concerned he could use it to incite further mayhem. The president's actions have driven a wedge among Republicans, with a handful of lawmakers either calling for him to step down immediately or saying they will consider supporting impeachment. Impeachment appears likely to pass: the lawmakers who drafted the formal charge say at least 214 of the 222 Democrats in the Democratic-led House already support it. The House impeached Trump in December 2019 for pressuring Ukraine's president to investigate Biden, but the Republican-controlled Senate acquitted him in February 2020. Only two other U.S. presidents have been impeached. After last week's chaos, authorities are hardening security ahead of Biden's inauguration, which has already been dramatically scaled back due to the coronavirus pandemic.

Toyota Kirloskar Motor lifts lock-out at Karnataka plant after 2 months

12 Jan, 2021, 02:40PM | Business Standards

After nearly two months of lock-out, Toyota Kirloskar Motor has resumed operations at its Bidadi plant located in Karnataka with over 1,200 employees on board, said the Japanese carmaker on Tuesday. These employees had expressed their intention to work with discipline, through a simple undertaking of good behaviour, it added. The 432-acre plant with two facilities was operational with minimum staff but with the lockdown being lifted, it will restart two shifts at the campus, said a company spokesperson. The company had been operating with skeleton staff, rolling out less than 100 units a day, compared to the customary 450-500 units a day, after the lockout was announced. Of the total 6,000 staff at Bidadi plant, nearly 3,500 are part of the Toyota Kirloskar Motor (TKM) Employees Union. A spokesperson of the TKM Employee Union claimed that only 300 employees of the 3,500 strong union have signed the undertaking, while the remaining employees will continue to protest. ALSO READ: Tata Steel, Vedanta: Tech charts signal more upside in metal stocks “The unilateral increase of the workload was behind the workmen's protest, but workers were not on strike. Our attempts to invite the attention to this issue were ignored by the management,” alleged Gangadhar M N, joint secretary, TKM Employees Union. The suspension, pending enquiry, of 66 unionised employees for serious misconduct will continue and domestic enquiries will be conducted in line with the principles of natural justice, according to the company. The first phase of the lockout started on November 10 on allegations of increased workload. Though the state labour department ordered workers to call off their strike and resume operations on November 19, less 10 per cent returned to work according to the company. Hence it was forced to extend its lockdown four days later as the situation was “volatile”. The plant manufactures variants such as Innova and Fortuner and has two units with an annual production capacity of up to 310,000 vehicles. “The safety and well-being of all our stakeholders, and especially our employees, being of utmost importance to us, we would like to emphasise that basic discipline will continue to be the cornerstone of our business principles and we will not compromise on behaviour and acts that threaten Toyota’s safety philosophy and its brand value in the country” said TKM.

Tata group shares rally; Tata Consumer, Tata Chemicals, Voltas at new highs

12 Jan, 2021, 01:22PM | Business Standards

Shares of Tata group companies were in focus with five stocks – Tata Chemicals, Tata Consumer Products, Tata Elxsi, Tata Investment Corporation and Voltas – from the group hitting record highs on the BSE in the intra-day trade on Tuesday. Tata Consultancy Services (TCS) hit an all-time high on Monday, while Tata Motors, which has rallied 26 per cent in the past two trading days, was trading at its 52-week high level. In the past one month, most of the frontline Tata group stocks have outperformed the market by surging up to 35 per cent on improved economy outlook. In comparison, the S&P BSE Sensex was up 7 per cent during the same period. Tata Motors and Tata Elxsi soared 35 per cent and 33 per cent, respectively while Tata Power Company, TCS, Voltas, Tata Steel and Tata Metaliks gained in the range of 13 per cent to 18 per cent. Among individual stocks, Tata Motors advanced 13 per cent to Rs 250 today in the intra-day trade, surging 26 per cent in the past two trading session after the company's subsidiary Jaguar Land Rover (JLR) posted second successive quarter-on-quarter recovery in sales, despite the continuing impact of Covid-19. The stock was trading higher for the eighth straight day. The trading volumes on the counter jumped nearly five-fold with a combined 339 million equity shares changing hands on the NSE and BSE till 01:09 pm. READ MORE Meanwhile, Tata Chemicals rallied 7 per cent, hitting a record high of Rs 535, surpassing its previous high of Rs 527 recorded on December 7, 2020. In the past three months, the stock has zoomed 76 per cent after its promoter, Tata Sons increases stake in the company via open market. During October-December quarter, Tata Sons hiked its stake by 2.51 percentage points to 31.9 per cent from 29.39 per cent at the end of September 2020 quarter. COMPANY LATEST 1-MONTH BEFORE GAIN(%) TATA MOTORS 243.15 178.80 36.0 TATA MOTORS-DVR 97.70 74.70 30.8 TATA ELXSI 2096.70 1604.30 30.7 TATA POWER CO. 86.00 72.80 18.1 TCS 3200.00 2783.45 15.0 TATA STEEL 703.55 621.75 13.2 VOLTAS 910.60 804.85 13.1 TATA METALIKS 655.35 581.70 12.7 TATA INV.CORPN. 1098.65 998.15 10.1 TATA CONSUMER 624.05 576.20 8.3 TITAN COMPANY 1540.35 1442.65 6.8 TATA CHEMICALS 531.55 507.90 4.7 RALLIS INDIA 298.15 285.45 4.5 TATA COFFEE 110.25 109.10 1.1 TRENT 694.80 689.20 0.8 TATA COMM 1041.00 1037.15 0.4

Covid-19 and India's trade dependency on China: Should we continue our ties?

12 Jan, 2021, 12:44PM | Economic Times

The trade and geopolitical engineering of the world is all set to undergo a massive change, if not a transfiguration due to the outbreak of the pandemic. China’s role in delaying the pandemic information to the world has raised consequential anti-China sentiments world-wide. India’s trade dependence on China is huge. Being one of the leading trade partners of India, China’s share in India’s total export and import are 9% and 18% respectively in 2019-20. The input-output table of India indicates that India tends to export raw material or ingredients to China’s manufacturing sector, and imports more of final products with higher value-added. The principal imports from China are electrical machinery, nuclear reactor, organic chemicals, articles of iron and steel, fertilisers, medical or surgical equipment, and auto components. International Monetary Fund’s (IMF) monthly data (January 2010 to January 2020) reveals that China’s share in India’s export to the world shows a declining trend from 2010 to 2016 and then, has evidenced a reversal. On the contrary, India’s share in total China’s exports reveals an increasing trend with a blip in 2016. Then, it shows fluctuations during the starting of the trade war between the US and China and the recession in the Rest of World (ROW). The analysis of above monthly data affirms persistent trade deficit with China. One recent IMF figure reveals that India has a trade deficit of $60 billion after the US, which has a deficit of $300 billion with China in 2019-20. It is the primary reason that India has not signed the RCEP treaty. Now the question is, how do we overcome the situation? What should be India’s move to cut down its trade dependency on China ? Are we in a position to take any drastic step towards severing our ties given China’s strategic (political and economic) engagements at various places of the globe? What could be our policy directions? Addressing all these issues during an ongoing pandemic situation needs a critical lens to see India’s trade dependency on China. There is no quick fix to the affairs. The current pandemic has destabilized China’s supply chain but has not pinned it down. Due to the pandemic hit, the manufacturing activity in China is slackening; countries have realized the need for diversification of risk in their production lines. Countries like Japan have already announced an economic stimulus package of $2.2 billion to diversify their manufacturing and supply chains to newer destinations and helps its manufacturers shift production out of China. To tap this potential, India needs to revisit and strengthen its existing trade negotiation deals with Japan, which was signed in 2011. To reduce our dependency on China and to make a niche in providing global output and trade products and services to the world, India currently requires to impart a calibrated move in designing medium-term and long-term policies. The challenges are primarily domestic, as in, up-scaling technology, infrastructure, etc., and reorienting policies by bringing global order in place by strengthening multilateral institutions to confront the strategic Chinese economic and political interventions and policies during and post Covid-19 era. Overhauling of Foreign Trade Policy is the need of the hour to promote trade based on comparative advantage. The shift in comparative advantage can come from investing in ports and roads infrastructure, telecommunications, value chains, 4IR (Fourth industrial revolution) technologies, ICT reach, e-governance, telemedicine, etc. Industrial sectoral dynamics are extremely heterogeneous. We need to identify the sectors for which the spillover effects of such investments will be greater. For example, pharmaceuticals, healthcare sectors are two very potential sectors, where such efficacy can be achieved. We are the global pharmacy of the world, and we require ingredients from China. Also, Trade-Related Intellectual Property Rights flexibilities of the WTO need to ensure that medicines are available and accessible to all during this pandemic outbreak. Further, steering the use of anti-dumping, countervailing duties (CVDs), safeguard duties, and non-tariff measures like Rules of Origin, Sanitary and Phytosanitary Measures, and Technical Barriers to Trade would be instrumental in short term to tackle our trade deficit with China. We are in the midst of health and economic crises. Crises though brings opportunities as well. We should harness it better than China by increasing fiscal and monetary measures to increase effective demand, and supply capacities. This can be done by relocating production to rural areas with focus on training of manpower for ensuring lives and livelihood for all. China has established its supremacy in providing global output and trade over time by bringing reforms as early as 1978 through upscaling rural productivity and employment, focusing on promoting ICT technologies, outward foreign investments in telecommunications, ports and road infrastructure like one belt and one road initiative ( OBOR ), harbouring global value chains, and by covertly providing heavy subsidies to their manufacturing sector. Thus, it is hardly going to impact China, even if we feel to severe our ties. Hence, continuing ties with China will be the right move given its strategic interventions in Ladakh, South China sea, Hong Kong, Taiwan, among its other strategic and economic policies adopted during the last forty years. (Authors are Trade Economists and associated with Indian Institute of Technology, Kanpur and BML Munjal University, Haryana. Dr. SK Mathur is Professor in Indian Institute of Technology Kanpur, Dr Anusree Paul is Associate Professor in BML Munjal University Views are authors’ own.)

Stocks to watch: GAIL, Tata Motors, Dishman Carbogen, DRL, Karnataka Bank

12 Jan, 2021, 08:33AM | Business Standards

Nifty futures on the Singapore Exchange traded 21 points down at 14,475 around 8.30 am, indicating a flat-to-negative start for benchmark indices on Tuesday. Here are the top stocks to watch in today's session: Karnatak Bank, Tata Elxsi: Karnataka Bank, Tata Elxsi, Steel Strips Wheels, Filatex India, Hathway Bhawani Cabletel, HPL Electric & Power are among the 13 firms slated to announce their quarterly earnings on January 12. Tata Motors: Jaguar Land Rover's retail sales fell 9 per cent YoY to 1,28,469 units in the October-December quarter, but increased by 13.1 percent QoQ. Dishman Carbogen: Promoter Adimans Technologies LLP will sell 3.87 per cent stake in the company via offer for sale on January 12-13, with an option to additionally sell up to 2.05 per cent shares. Adani Green: The Competition Commission of India (CCI) approved acquisition of share capital in Adani Green Energy by a subsidiary of Total SE. "Commission approves acquisition by Total SE through its subsidiary Total Renewables SAS in share capital of Adani Green Energy Limited," the regulator said in a tweet. GAIL: GAIL will consider buyback of shares on January 15 with a view to returning surplus cash to shareholders, the biggest being the Government of India. The board will also consider payment of interim dividend for FY21. DRL: Dr Reddy's Laboratories (DRL) said the Data and Safety Monitoring Board (DSMB) has recommended recruitment for the phase 3 clinical trials of Sputnik V vaccine for COVID-19 after reviewing the safety data from the phase 2 clinical trial of the vaccine without any modifications. Thyrocare Technologies: A media report stated, quoting agencies, that Thyrocare Technologies has seen significant business revival in Q3 and even non-Covid business is showing growth post festive season. Reliance Infrastructure: Reliance Infrastructure firms BSES Rajdhani Power and BSES Yamuna Power paid around Rs 400 crore to Aravali Power Corporation Private Ltd, a statement said. Laurus Labs: The wholly-owned subsidiary of the company, Laurus Synthesis, has incorporated a wholly-owned subsidiary under name of Laurus Ingredients with effect from January 9, for undertaking Ingredients Business and also for setting up Greenfield projects for new Synthesis Business. GMM Pfaudler: A meeting of Board of Directors of GMM Pfaudler is scheduled to be held on January 20 to consider and approve payment of third interim dividend for FY21. Future Retail: Amazon has written to Sebi yet again, apprising the market regulator of the formation of the arbitration tribunal at SIAC while urging it to suspend the review of the Rs 24,713 crore Future-RIL deal. Force Motors: The company's board has approved raising up to Rs 500 crore via NCDs. Cummins India: Mutual funds cut stake in the company to 17.12 per cent in Q3Fy21 from 18.63 per cent in Q2FY21. LIC also lowered its stake in the company to 6.12 per cent from 6.74 percent in the same period. Burger King India: Eastspring Investments India Consumer Equity Open sold 27,55,323 equity shares of Burger Kind India at Rs 154.92 per share, bulk deal data on the NSE showed. InterGlobe Aviation: Mutual funds reduced stake in the company to 3.88 per cent in December quarter from 5.91 per cent in September quarter. FPIs, meanwhile, raised stake to 17.34 pe rcent from 14.79 percent earlier in the same period. GNFC: LIC has trimmed its stake in Gujarat Narmada Valley Fertilisers to 5.93 per cent in December quarter from 6.91 per cent at the end of September quarter, latest shareholding data shows.

Market Ahead, January 12: Top factors that could guide markets today

12 Jan, 2021, 08:23AM | Business Standards

Indian benchmark indices look set to take a pause after Monday's stellar rally, with SGX Nifty futures trading 32 points down at 14,463 around 7.15 am, tracking weak cues from global peers. Besides a financial stability report by the Reserve Bank that raises concerns on the banks' financial health might also dampen the mood. In overnight trade, Wall Street’s main indices closed lower as investors took some profits while they waited for earnings season to begin and eyed events in Washington with trepidation. Investors believe a bigger stimulus could be delayed as House of Democrats introduced a resolution to impeach US President Donald Trump, accusing him of inciting insurrection following a violent attack on the Capitol by his supporters. Dow Jones Industrial Average fell 0.29%, the S&P 500 lost 0.66% and the Nasdaq Composite dropped 1.25%. Tracking a weak finish for Wall Street, markets in Asia opened lower. Japan’s Nikkei slipped 0.48%, South Korea’s KOSPI fell 0.91% and Hong Kong’s Hang Seng index futures lost 0.54%. While global cues paint a grim picture, the market bulls may take some strength from the strong GDP growth projections for India and development on the Covid vaccine front. According to a report by UBS global research, India's economy is expected to clock the fastest growth among Asian peers with higher than 11.5 per cent growth in FY22 amid fast falling active COVID cases. Meanwhile, rating agency Icra too sees double-digit growth for the Indian economy at 10.1% in the FY22, however, it cautioned that in absolute terms the country’s GDP would only “mildly” surpass the levels of FY20. In another positive development, India has signed the first purchase agreement for the government-sponsored Covid vaccination programme with Serum Institute of India. The first consignment of vaccines is likely to be shipped by air on Tuesday morning, said a Business Standard report. Besides that, market participants will also eye the Industrial Production and Manufacturing Production data for the month of November, along with CPI inflation for December that are slated to be out today. That apart, cryptocurrency bitcoin crashed 20.1 per cent to $30,500. The cryptocurrency had more than doubled in price from early December to a record $42,000 on Friday, leading some investment banks to warn of an impending bubble. Now, a look at the stock-specific developments that are likely to sway the market today: Bank stocks are likely to be in focus today after RBI's Financial Stability Report of December 2020 stated that banks' gross non-performing assets may rise to 13.5% by September 2021, from 7.5 per cent in September 2020 under the baseline scenario. The bank-level NPA had touched 14.7 per cent in 1998-99. Tata Motors share will likely react to a 9 per cent YoY fall in Jaguar Land Rover's retail sales in the October-December period. The sales were, however, up by 13.1 per cent on a QoQ basis. Gail's board is scheduled to meet on January 15 to consider the proposal of buyback of shares. The Competition Commission of India (CCI) has approved acquisition of share capital in Adani Green Energy by a subsidiary of Total SE. Karnataka Bank, Tata Elxsi, Steel Strips Wheels are among 10 other firms scheduled to release their December quarter results today.

Engineering exporters seek govt intervention to stem steel prices

12 Jan, 2021, 07:54AM | Economic Times

Engineering exporters' body EEPC India on Monday sought urgent government intervention to stem the runaway rise in steel prices , a key raw material for manufacturing. "With a whopping 55 per cent rise in prices of steel, the mother raw material for manufacturing, the path to Atmanirbhar Bharat has become very tough and arduous," EEPC India said, seeking urgent intervention of the government on the issue. It said the wholesale price of Hot Rolled Coil ( HRC ) has gone up to Rs 58,000 a tonne -- an unbearable increase of 55 per cent between January 2020 and January 2021. ''The engineering exporters, who account for more than one-fourth of the country's total merchandise exports, and comprise mostly the MSMEs, are battling the unprecedented impact of COVID-19 on global trade," EEPC India Chairman Mahesh Desai said. He said for the April-November period of the current fiscal, the engineering exports fell by 13.24 per cent to USD 43.9 billion from USD 50.5 billion during the same period of the previous financial year. As many as 29 out of 33 engineering panels exhibited a year-on-year decline in exports. Likewise, only five out of top 25 countries recorded positive cumulative growth in engineering exports during April-November 2020 over April-November 2019. ''Under these circumstances, an unprecedented increase in steel prices is making the situation for the engineering industry unbearable, hitting exports the most," Desai said.

Domestic steel prices still at 6-8% discount to global prices, there is room for further hikes: Crisil

12 Jan, 2021, 06:55AM | Economic Times

Mumbai: Amid high global steel prices, tight domestic supply on account of iron ore shortage , and healthy demand growth, steel prices are likely to remain high in the January-March 2021 quarter with a sequential price hike of Rs 7,000-8,500 per tonne. “Domestic steel prices defied predictions and ascended through the December quarter…Consequently, flat steel prices are seen 14-15% higher on-year this fiscal,” said Crisil in a report titled, 'price lift for steelmakers ' on Monday. Indian steel makers have raised the prices of hot-rolled coils (HRC) multiple times since August, by as much as Rs 13,800 per to Rs 51,050 per tonne in December a growth of almost 37% year-on-year (yoy). Global prices also touched an 8-year high in December on healthy demand and cost push from soaring iron-ore prices. China HRC f.o.b. (free on board) prices, after plunging to $409 per tonne in April from $499 per tonne in January 2020, rebounded to $647 per tonne between April and December 2020. Despite this material increase, domestic prices are still 6-8% below global landed prices, Crisil report said. “Put another way, there is room to raise domestic prices further given they move in sync with the world trend,” The report added. Domestic demand recovered to the pre-pandemic (February) level in August itself with normalisation of activities in the construction and consumption-linked sectors, but a full-blown recovery was seen only in November when sales volume surged 11% on-yea, the report said. “The demand momentum should continue in January-March…contraction in steel demand this fiscal to 9-11%, compared with our previous forecast of a 17-20% de-growth,” the report said. Prices of iron ore, one of the significant raw materials for steel companies, doubled from May-June levels to Rs 4,360 per tonne in December. However, it remains 60-65% cheaper than landed iron ore prices. On the other hand, Coking coal prices have declined, led by low procurement from China amid stable supply. Crisil expects the large steelmakers (excluding the public sector ones) to clock an 800-1000 basis points improvement in their Ebitda margin (on-year) in the second half of this fiscal, riding on the tailwinds of a 35% increase in domestic steel prices , a 30-35% decline in coking coal prices, and surging demand. “large steel mills, excluding the public sector ones, should see a 550-650 basis points (bps) Ebitda margin expansion this fiscal. In the second quarter, their margins expanded 740 bps, after plunging 600 bps in the first quarter,” the report said.

Review: Husqvarna 250 Twins uniquely tailored for fun

12 Jan, 2021, 12:33AM | Times Of India

NEW DELHI: The Husqvarna 250 Twins made their Indian debut back in February 2020 and the twins have managed to put on quite a show since then. The dynamic Swede duo’s graph has only moved upwards in India except when the sales were disrupted back in April and May due to the pandemic. While the Husqvarna Vitpilen 250 and Husqvarna Svartpilen 250 may look extremely similar and may boast the same engine too but the minor differences make a huge difference and the motorcycles serve different purposes altogether. TOI Auto brings these 10 highlights of the motorcycle that you need to know before you choose the right Husqvarna for yourself. 1. Vitpilen 250- The new-age café racer The Husqvarna Vitpilen 250 takes its inspiration from the classic café racers and gives it an extremely modern touch. The Vitpilen 250 is meant for your carefree urban rides and being slightly lighter than its twin, precisely at 153 kg, the motorcycle offers complete control and confidence when taking on curvy roads. The sporty riding position enhances the experience too. 2. Svartpilen 250 – Fresh take on a scrambler The Husqvarna Svartpilen 250 takes its inspiration from scramblers and flaunts an off-roading character. While the motorcycle offers good urban performance too, its dual-purpose tyres and an upright sitting posture won’t disappoint you if you have to indulge in some mild off-roading. 3. The KTM connection The Husqvarna twins borrow their 250cc powertrain and the underpinnings from the KTM 250 Duke. The motorcycles share the exact performance specs but the Vitpilen 250 and Svartpilen 250 boast a better power-to-weight ratio and torque-to-weight ratio compared to KTM 250 Duke. The kerb weight of Vitpilen 250 is 153 kg, while the Svartpilen 250 weighs 154 kg and the 250 Duke tips a little over 161 kg. 4. Different skins, same spirit The Husqvarna twins have an identical bodywork but they flaunt not-so-identical colour schemes. At first glance, the Vitpilen 250 appears to be much lighter than its twin boasting a dominant white colour scheme. The Vitpilen 250 gets a white fuel tank and a contrasting grey tail section with silver accents all over the body. The Svartpilen 250, on the other hand, gets a dominant dark grey colour scheme with a silver tail section and white accents across the body. 5. Fly like an arrow Vitpilen and Svartpilen literally mean ‘white arrow’ and ‘black arrow’ in Swedish and the moment you ride the bike, you understand why they are named so. The twins are powered by a 248.76cc single-cylinder, 4-stroke, liquid-cooled engine that offers 30 PS of power and 24 Nm of power. Paired with a 6-speed gearbox, the engine responds quickly and the performance is really smooth. The twins also get a Supermoto mode to add an edge to the performance. 6. Vitpilen 250 vs Svartpilen 250: Cycle parts The most prominent difference is the handlebar. The Husqvarna Vitpilen 250 comes with a low clip-on type steel tube to suit the handling on asphalt whereas the Husqvarna Svartpilen 250 comes with a slightly raised tubular steel bar to offer total control while taking on a rough control. The Svartpilen 250 also comes with a sporty tank rack. The suspension remains the same with a 43mm USD in the front and a rear mono-shock, borrowed from KTM. 7. Vitpilen 250 vs Svartpilen 250: Wheels and tyres Both the motorcycles come with R17 wheels. While the size of the tyres is identical, nature is not. The Vitpilen 250 gets MRF Revs FC 1 tyres to offer exceptional performance on asphalt while the Svartpilen 250 gets dual-purpose MRF Revz FD tyres. The tyres of the motorcycles are tubeless. 8. Braking performance The Vitpilen 250 and the Svartpilen 250 boast a dual-channel ABS with a 320mm front disc brake and a 230mm rear disc brake. Both the motorcycles offer a quick and confident braking response and their lighter weight also complements the braking performance. 9. Dimensions The Husqvarna twins have a wheelbase of 1357mm and also offer an apt ground clearance of 145mm. The motorcycles are quite easy to handle too as the seat height is just 835mm. The sleek 9.5-litre fuel tank adds to the aesthetic value of the motorcycles while also adding to the convenience quotient. 10. Pricing The Husqvarna Svartpilen 250 is priced at Rs 1.86 lakh (ex-showroom, New Delhi) and the Husqvarna Vitpilen 250 is priced at Rs 1.87 lakh (ex-showroom, New Delhi).

Engineering exporters seek govt intervention to stem steel prices

11 Jan, 2021, 08:27PM | Business Standards

Engineering exporters' body EEPC India on Monday sought urgent government intervention to stem the runaway rise in steel prices, a key raw material for manufacturing. "With a whopping 55 per cent rise in prices of steel, the mother raw material for manufacturing, the path to Atmanirbhar Bharat has become very tough and arduous," EEPC India said, seeking urgent intervention of the government on the issue. It said the wholesale price of Hot Rolled Coil (HRC) has gone up to Rs 58,000 a tonne -- an unbearable increase of 55 per cent between January 2020 and January 2021. ''The engineering exporters, who account for more than one-fourth of the country's total merchandise exports, and comprise mostly the MSMEs, are battling the unprecedented impact of COVID-19 on global trade," EEPC India Chairman Mahesh Desai said. He said for the April-November period of the current fiscal, the engineering exports fell by 13.24 per cent to USD 43.9 billion from USD 50.5 billion during the same period of the previous financial year. As many as 29 out of 33 engineering panels exhibited a year-on-year decline in exports. Likewise, only five out of top 25 countries recorded positive cumulative growth in engineering exports during April-November 2020 over April-November 2019. ''Under these circumstances, an unprecedented increase in steel prices is making the situation for the engineering industry unbearable, hitting exports the most," Desai said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Cement demand expected to grow by up to 20 pc in FY22: ICRA

11 Jan, 2021, 07:55PM | Economic Times

Mumbai: Cement demand in India is likely to increase by 18%-20% in FY2022 over FY2021 with the volumes reaching back to around FY2019-FY2020 levels, amid a strong rural demand including affordable housing and a recovery in the infrastructure segment. “After a sharp contraction in volumes in FY 2021, ICRA expects it to grow by 18%-20% in FY2022. The rural offtake is likely to be supported by the positive farm sentiment with the timely rabi sowing and favourable groundwater and reservoir levels, which are likely to boost rabi yields,” said Anupama Reddy, Assistant Vice President, ICRA. As per Icra, this volumetric growth and the industry’s pricing discipline is likely to support the operating margins in FY 2022 at around 20%-21%, notwithstanding some cost-side pressures. “The traction in the PMAY-Gramin is expected to continue and the PMAY-Urban has also picked up faster in recent months as against other housing segments owing to low ticket sizes and Government incentives,” said Reddy. Prices of pet coke, a significant raw material for cement, have increased in the recent months. The diesel prices also have increased in the current fiscal., the report said. “Going forward, the coal price levels will remain sensitive to demand from China and India, and to the extent of change in the energy mix from coal to natural gas and renewables, globally,” ICRA said. Addressing the recent order by the Competition Commission of India (CCI) for investigation into the alleged cartelisation by cement companies, ICRA said that any significant increase in the cement prices is unlikely in the near term. “While a likely increase in debt levels is envisaged owing to the capacity addition, the healthy operating profits and the consequent cash accruals would allow the debt coverage metrics of major cement companies to remain comfortable,” said Anupama Arora, Vice President, ICRA. Capacity additions by the cement players are expected to get back to around 20-22 mtpa (million tonnes per annum) in FY2022 from around 15-17 mtpa in FY2021. “The East is likely to lead the expansion and may add around 15-17 MTPA during FY2021-FY2022. With the revival in demand in FY2022 by around 20%, the utilisation is likely to improve to around 64% during the fiscal from the low levels of 56% in the previous year, however, remain at moderate levels,” the report said.

Cement demand expected to rise by up to 20% in fiscal 2022: Icra

11 Jan, 2021, 06:54PM | Business Standards

Cement demand is expected to increase by up to 20 per cent in the next fiscal year with volume touching FY19-FY20 levels, rating agency ICRA said on Monday. The growth would be supported by rural demand, including affordable housing, and recovery in infrastructure segment. "ICRA expects cement demand to increase by 18-20 per cent in FY2022 over FY2021 with the volumes reaching back to around FY2019-FY2020 levels," the rating agency said in a statement. The volume growth is also likely to support operating margins in FY22 at around 20 to 21 per cent, notwithstanding some cost-side pressures, it added. Capacity additions are expected to get back to around 20-22 MTPA (million tonnes per annum) in FY2022 from around 15-17 MTPA in FY2021, it said. The eastern region is likely to lead the expansion by adding around 15-17 MTPA capacity during the said period. "With the revival in demand in FY2022 by around 20 per cent, the utilisation is likely to improve to around 64 per cent during the fiscal from the low levels of 56 per cent in the previous year...," it said. On input costs, it said, while coal prices continue to remain soft, pet coke prices have increased in the recent months. "Diesel prices also have increased in the current fiscal. Further, with pet coke and diesel prices linked to crude, the prices are likely to remain elevated," it said. Going forward, coal price will remain sensitive to demand from China and India, and to the extent of change in the energy mix from coal to natural gas and renewables globally. ICRA Assistant Vice President Anupama Reddy said rural offtake is likely to be supported by positive farm sentiment with timely rabi sowing and favourable groundwater and reservoir levels, which are likely to boost rabi yields. "The traction in Pradhan Mantri Awas Yojana-Gramin (PMAY-Gramin) is expected to continue and PMAY-Urban has also picked up faster in recent months as against other housing segments owing to low ticket sizes and government incentives. "Although urban housing has also seen a pick up in the recent months in select markets, the sustainability remains to be seen," she said. In addition, the recent announcements, with focus on real estate, PMAY-Urban and infrastructure sector as part of the 'Atmanirbhar Bharat 3.0' package, are likely to support cement demand. "On the infrastructure side, the pace of execution of projects in the transportation segment - roads, metros, railways and airports - is expected to aid cement volume expansion going forward," Reddy added. According to the Cement Manufacturers Association (CMA), the total installed capacity in Indian cement sector is approximately 545 million tonnes per annum and it is the fourth-largest revenue contributor to the exchequer. The Indian cement sector accounts for over 7 per cent of the global installed capacity and is the second-largest in the world after China, as per the CMA. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Coal to be biggest contributor to India's $5 trillion economy: Amit Shah

11 Jan, 2021, 05:56PM | Business Standards

The Centre on Monday awarded the letter of allocation to successful bidders of coal mines under the commercial auction held during October-November 2020. Speaking at the event, Home Minister Amit Shah said the coal sector will be the largest contributor to India’s ambition of being a $5 trillion economy. “The coal sector was non-transparent, complex and favoured a few corporates. But many small trading companies are now getting into coal mining, which was not possible six years back. India has one of the largest coal reserves and high demand but ironically still imports vast quantities. Reducing import dependence is crucial for our economy,” Shah said. The Centre in 2020 opened the coal mining sector with private companies entering the arena of commercial mining and sale of coal–-47 years after coal mining was nationalised in India. The Centre amended the Coal Mines (Special Provisions) Act, 2015, in May to open the coal auction for non-mining, MSMEs and foreign companies. The two-part auction concluded in November when companies submitted bids for 19 out of the total 38 coal blocks on offer. ALSO READ: Budget Byte: Post-pandemic Budget will need to focus on ignored sectors Among the winning bidders were Adani Enterprises, Hindalco, Vedanta ltd, Essel Mining of the Aditya Birla Group, Jindal Steel & Power ltd, and several new and non-mining companies such as Aurobindo Realty, Yazdani International, JMS Mining, and Boulder Stone Mart. Union minister for coal Pralhad Joshi said the energy aspirations of the nation cannot be crushed in the quest to follow the West. “We should make the maximum use of our coal reserves while shifting to cleaner forms of energy,” he said adding more mines will be offered under commercial mining during January. The ministers also launched a ‘Single Window Clearance Portal’ for the companies that have won the coal mines. “In the absence of a unified platform for grant of clearances, the companies were required to approach different departments, leading to delay in operationalisation of coal mines. Now, the complete process shall be facilitated through Single Window Clearance Portal in a phased way,” Joshi said. Currently, some 19 major approval or clearances are required before commencing the mining operations. These include approval of mining plan and mine closure plan, grant of mining lease, environment and forest clearances, wild life clearance, clearances related to safety, environment, rehabilitation of project affected families, welfare of workers etc. The Single Window Clearance Portal would facilitate these clearances. The coal ministry said the mine-bearing states would garner a total revenue of Rs 6,656 crore annually (over the life of mine) from these mines.

Nifty Auto index at over 2-year high on hopes of strong Q3 earnings growth

11 Jan, 2021, 02:42PM | Business Standards

Shares of automobile and related companies were in demand in Monday's session with Nifty Auto index hitting an over two-year high, up more than 2 per cent, on expectation of double-digit earnings growth in the October-December quarter (Q3FY21), aided by robust volumes. At 02:20 pm, Nifty Auto index was up 2.14 per cent at 9,950 as compared to a 0.79-per cent rise in the Nifty50 index. The auto index hit an intra-day high of 9,970, its highest level since September 27, 2018. Thus far in the month of January 2021, the Nifty Auto index has outperformed the market by surging 8 per cent as compared to a 3.4-per cent rise in the Nifty50 index. Among individual stocks, Tata Motors rallied 6 per cent to Rs 211 on the National Stock Exchange (NSE). Ashok Leyland, Maruti Suzuki India, TVS Motor Company, Mahindra & Mahindra, Bharat Forge, MRF and Bajaj Auto from the auto index were up 2 per cent to 4 per cent. GNA Axles, Jtekt India, JK Tyre, TVS Srichakra, Jamna Auto Industries, Steel Strips Wheels and Munjal Auto Industries, among the non-index stocks, gained between 4 per cent and 10 per cent. A healthy festive period, elements of pent-up demand and channel restocking helped the auto industry remain firmly on the recovery path in Q3FY21. Sales of passenger vehicles (PV), motorcycles and tractors continued to be buoyant, with a pick-up in truck and scooter sales a welcome development. OEM revenues are expected to rise on the back of consistent volume improvement and better realizations. Ancillaries with high replacement exposure (battery and tyre companies) should also report strong growth. The automobile sector remains a key beneficiary of economic recovery and low-interest rates. "While topline performance is consequently expected to be strong across our coverage universe, margins are seen contracting sequentially on the back of a sharp rise in key raw materials like metals, rubber & other crude derivatives," ICICI Securities said in auto sector update. "In ancillaries, companies with high exposure to replacement channel (tyre and battery makers) are thought to have outperformed on the topline front. Companies with global exposure (Bharat Forge, Motherson Sumi) are expected to deliver relatively muted performance. Minda Industries and Balkrishna Industries are seen having done well courtesy a pick-up in demand from base industries (domestic 2-W, 4-W & global agri respectively), accompanied by comparatively healthy margin prints," the brokerage firm said. Aggregate OPM (ex-Tata Motors) should expand 40 basis points (bps) year-on-year (YoY), despite a surge in commodity prices, owing to better scale, price increases and cost-cutting efforts, analysts at Emkay Global Financial Services said. Cost-control efforts include a reduction in discounts, marketing spends, travelling costs and other variable and fixed expenses.

BHEL secures Rs 450 cr order for steam and power plant from NALCO

11 Jan, 2021, 02:09PM | Economic Times

NEW DELHI: State-run engineering firm BHEL on Monday said it has bagged an order worth Rs 450 crore for a steam and power plant from National Aluminium Corporation Limited ( NALCO ). The Rs 450 crore order has been placed on BHEL by NALCO for its 5th Stream Alumina Refinery Expansion Project at Damanjodi, Odisha, Bharat Heavy Electricals Limited ( BHEL ) said in a statement. BHEL 's scope in the contract includes design, engineering, manufacturing, supply, erection, testing and commissioning of 1x300 TPH Coal Fired Boiler, 18.5 MW Steam Turbine Generator and associated auxiliaries, including Flue-gas desulfurization (FGD) and selective catalytic reduction (SCR). With this order , BHEL has not only maintained its track record of supplying all of NALCO 's power plants, for both their Smelter plant (10x120 MW) at Angul and Alumina Refinery plant (5x18.5 MW) at Damanjodi, but will also be contributing to the 'Make in India' initiative, the statement added. BHEL is India's largest manufacturer of power generation equipment with an installed base of over 1,90,000 MW of power plant equipment globally. The company has a proven track record in providing customised solutions for industry specific steam and power requirements to all major industries including petrochemicals, refineries, fertilizers, cement, steel, chemicals, sugar, paper, etc in India, and has footprints in almost all major industrial plants across the nation. Over the years, BHEL has maintained its strong market position and market share even amidst strong competition from global players in a shrinking market, for its industrial products and systems, it said.

BHEL secures Rs 450 cr order for steam and power plant from NALCO

11 Jan, 2021, 01:58PM | Business Standards

State-run engineering firm BHEL on Monday said it has bagged an order worth Rs 450 crore for a steam and power plant from National Aluminium Corporation Limited (NALCO). The Rs 450 crore order has been placed on BHEL by NALCO for its 5thStream Alumina Refinery Expansion Project at Damanjodi, Odisha, Bharat Heavy Electricals Limited (BHEL) said in a statement. BHEL's scope in the contract includes design, engineering, manufacturing, supply, erection, testing and commissioning of 1x300 TPH Coal Fired Boiler, 18.5 MW Steam Turbine Generator and associated auxiliaries, including Flue-gas desulfurization (FGD) and selective catalytic reduction (SCR). With this order, BHEL has not only maintained its track record of supplying all of NALCO's power plants, for both their Smelter plant (10x120 MW) at Angul and Alumina Refinery plant (5x18.5 MW) at Damanjodi, but will also be contributing to the 'Make in India' initiative, the statement added. BHEL is India's largest manufacturer of power generation equipment with an installed base of over 1,90,000 MW of power plant equipment globally. The company has a proven track record in providing customised solutions for industry specific steam and power requirements to all major industries including petrochemicals, refineries, fertilizers, cement, steel, chemicals, sugar, paper, etc in India, and has footprints in almost all major industrial plants across the nation. Over the years, BHEL has maintained its strong market position and market share even amidst strong competition from global players in a shrinking market, for its industrial products and systems, it said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

India, US negotiating on wide range of trade concerns: Congressional report

11 Jan, 2021, 01:12PM | Economic Times

Washington: India and the US are negotiating on a wide range of trade concerns, including greater access to the Indian market for American agricultural products , potentially in exchange for America restoring New Delhi's status under the Generalised System of Preferences ( GSP ), according to a Congressional report. President Donald Trump in 2019 terminated India's designation as a beneficiary developing nation under the key GSP trade programme after determining that it has not assured the US that it will provide equitable and reasonable access to its markets. "The United States and India are negotiating on a wide range of trade concerns, including greater access to the Indian market for US agricultural products, potentially in exchange for US restoration of India's eligibility under GSP. The current status of the negotiations has not been disclosed," the latest report by independent Congressional Research Service (CRS) said. Reports of the CRS are not an official report of the US Congress. Its subject matter experts prepare reports on various issues for the American lawmakers to make informed decisions. The comment on India is mentioned in the "Major Agricultural Trade Issues in the 117th Congress" dated January 8. In September last year, the Indian government enacted three laws intended, in part, to help integrate Indian agriculture into the global market. Commerce and Industry Minister Piyush Goyal in September said most issues preventing a limited trade deal between India and the United States have been resolved and an agreement could be signed anytime the political situation in the US allows it. India is seeking exemption from high duties imposed by the US on some steel and aluminium products, resumption of export benefits to certain domestic products under the GSP, and greater market access for its products from sectors such as agriculture, automobile,automobile components and engineering. On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items and medical devices, apart from cut in import duties on some information and communication technology products. Noting that the United States and India view one another as important strategic partners to advance common interests regionally and globally, the CRS report said given the rapid growth in population and income among a large segment of the population, demand for higher-value food products such as fruits, nuts, dairy products, and other livestock products is growing among Indian consumers. While India is among the world's largest producers and consumers of a range of crop and livestock commodities, United States Department of Agriculture (USDA) projects that India will continue to be an important importer of dairy products, vegetable oils, pulses, tree nuts, and fruit and that it will continue to be a major exporter of rice, cotton, and buffalo meat. Observing that US-India trade negotiations follow a period of trade tensions, the CRS said in March 2018, the United States levied additional tariffs on steel and aluminum imports from India. India responded by identifying certain US food products for retaliatory tariffs but did not levy them until June 16, 2019, after the United States terminated preferential treatment for India under the GSP. India's retaliatory tariffs range from 10 per cent to 25 per cent on imports of US chickpeas, shelled almonds, walnuts, apples, and lentils. Both countries' tariffs and India's GSP status are likely issues in the ongoing negotiations, it said. Agricultural exports from the US to India have increased since 2015, reaching USD 1.6 billion in 2019. The US in the same year imported agricultural products valued at USD 2.6 billion from India. The CRS said that India maintains high tariffs on many products- for example, 60 per cent on flowers, 100 per cent on raisins, and 150 per cent on alcoholic beverages. Some Members of Congress have requested that the United States Trade Representative (USTR) seek to reduce the current 36 per cent tariffs faced by US pecans. Since 2017, a system of annual import quotas on pulses has restricted US exports of pulses to India. Export of wheat and barley to India are currently restricted due to its zero-tolerance standard for certain pests and weeds, and restrictions also exist on imports of livestock genetic material, it said. In its report, the CSR informed lawmakers that USTR may continue challenging India's domestic support for agriculture at upcoming WTO Committee on Agriculture (COA) meetings and, if necessary, could pursue these concerns through WTO's dispute settlement mechanism. India's domestic support for agriculture could be an issue during US-India trade negotiations or during the discussions related to WTO reform on agriculture.

India, US negotiating on wide range of trade concerns: Congressional report

11 Jan, 2021, 12:40PM | Business Standards

India and the US are negotiating on a wide range of trade concerns, including greater access to the Indian market for American agricultural products, potentially in exchange for America restoring New Delhi's status under the Generalised System of Preferences (GSP), according to a Congressional report. President Donald Trump in 2019 terminated India's designation as a beneficiary developing nation under the key GSP trade programme after determining that it has not assured the US that it will provide equitable and reasonable access to its markets. The United States and India are negotiating on a wide range of trade concerns, including greater access to the Indian market for US agricultural products, potentially in exchange for US restoration of India's eligibility under GSP. The current status of the negotiations has not been disclosed, the latest report by independent Congressional Research Service (CRS) said. Reports of the CRS are not an official report of the US Congress. Its subject matter experts prepare reports on various issues for the American lawmakers to make informed decisions. The comment on India is mentioned in the Major Agricultural Trade Issues in the 117th Congress dated January 8. In September last year, the Indian government enacted three laws intended, in part, to help integrate Indian agriculture into the global market. Commerce and Industry Minister Piyush Goyal in September said most issues preventing a limited trade deal between India and the United States have been resolved and an agreement could be signed anytime the political situation in the US allows it. India is seeking exemption from high duties imposed by the US on some steel and aluminium products, resumption of export benefits to certain domestic products under the GSP, and greater market access for its products from sectors such as agriculture, automobile,automobile components and engineering. On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items and medical devices, apart from cut in import duties on some information and communication technology products. Noting that the United States and India view one another as important strategic partners to advance common interests regionally and globally, the CRS report said given the rapid growth in population and income among a large segment of the population, demand for higher-value food products such as fruits, nuts, dairy products, and other livestock products is growing among Indian consumers. While India is among the world's largest producers and consumers of a range of crop and livestock commodities, United States Department of Agriculture (USDA) projects that India will continue to be an important importer of dairy products, vegetable oils, pulses, tree nuts, and fruit and that it will continue to be a major exporter of rice, cotton, and buffalo meat. Observing that US-India trade negotiations follow a period of trade tensions, the CRS said in March 2018, the United States levied additional tariffs on steel and aluminum imports from India. India responded by identifying certain US food products for retaliatory tariffs but did not levy them until June 16, 2019, after the United States terminated preferential treatment for India under the GSP. India's retaliatory tariffs range from 10 per cent to 25 per cent on imports of US chickpeas, shelled almonds, walnuts, apples, and lentils. Both countries' tariffs and India's GSP status are likely issues in the ongoing negotiations, it said. Agricultural exports from the US to India have increased since 2015, reaching USD 1.6 billion in 2019. The US in the same year imported agricultural products valued at USD 2.6 billion from India. The CRS said that India maintains high tariffs on many products for example, 60 per cent on flowers, 100 per cent on raisins, and 150 per cent on alcoholic beverages. Some Members of Congress have requested that the United States Trade Representative (USTR) seek to reduce the current 36 per cent tariffs faced by US pecans. Since 2017, a system of annual import quotas on pulses has restricted US exports of pulses to India. Export of wheat and barley to India are currently restricted due to its zero-tolerance standard for certain pests and weeds, and restrictions also exist on imports of livestock genetic material, it said. In its report, the CSR informed lawmakers that USTR may continue challenging India's domestic support for agriculture at upcoming WTO Committee on Agriculture (COA) meetings and, if necessary, could pursue these concerns through WTO's dispute settlement mechanism. India's domestic support for agriculture could be an issue during US-India trade negotiations or during the discussions related to WTO reform on agriculture. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Market Ahead, January 11: Top factors that could guide markets this week

11 Jan, 2021, 08:09AM | Business Standards

The benchmark equity indices extended their record-breaking bull run in the past week, hitting all-time highs on almost all days. In the last five trading sessions, BSE Sensex and NSE Nifty added almost 2 per cent each. This week markets are likely to take cues from Q3 earnings, a host of macroeconomic data and global trends. Meanwhile, progress on the coronavirus vaccine front, which India is looking to roll out from January 16, and a bigger stimulus in the US would also be in focus. When markets open for trading today, they will react to the Q3 numbers reported by IT major Tata Consultancy Services whose profit jumped 7% YoY in the December quarter to Rs 8,701 crore. Shares of Avenue Supermarts are likely to be in focus too as the firm posted a 16% jump in profit. That apart, a number of companies are also slated to release their Q3 numbers this week, including Infosys, Wipro, HCL Tech, HDFC Bank, Filatex India, Tata Elxsi, L&T Finance Holdings, PVR and Karnataka Bank to name a few. Besides this, market participants will eye the macroeconomic data such as the Industrial Production and Manufacturing Production data for the month of November, along with CPI inflation for December that are scheduled to be released on January 12, while WPI inflation for December is slated on January 14. According to a Reuters poll, India’s retail inflation likely fell sharply in December, landing within the Reserve Bank of India’s target range, due to a significant drop in vegetable and food prices. Meanwhile, there are expectations that industrial production likely expanded for the second month in a row after six months of contraction. Any development on the global front too will sway the market sentiment back home. US President-elect Joe Biden last Friday said he will deliver a coronavirus relief plan costing “trillions” of dollars next week and the markets will likely react to that, and also to the US jobless claims due on Thursday. Lastly, movement in crude oil prices and rupee, along with inflows from FIIs would be of keen interest for the markets. And now, let's take a look at the trade setup for today Tracking a strong finish for Wall Street in overnight trade on Friday, Indian markets are set to kick off the week on an upbeat note, hitting yet another record high at the open. SGX Nifty futures were trading 72 points up at 14,448. However, tepid cues from Asian peers are likely to limit gains for benchmark Sensex and Nifty. Asian shares took a breather as “trillions” in new US fiscal stimulus plans were set to be unveiled this week, stoking a global reflation trade. S&P 500 futures slid 0.5%, Australia’s S&P/ASX 200 index fell 0.6% while South Korea’s Kospi index advanced 2.7%. On the stock-specific front, shares of TCS and Avenue Supermarts will be in focus after reporting strong Q3 numbers. Drug major Cipla is recalling over 5.8 lakh packets of a drug for the reduction in the occurrence of gastric ulcers from the US market, as per a report by the US Food and Drug Administration. Tata Steel's total output from India operations rose 3% to 4.60 million tonnes (MT) during the October-December quarter of the current financial year. Bharti Airtel announced the appointment of Pradipt Kapoor as its Chief Information Officer (CIO).

Big steel, cement companies are operating as a cartel: Nitin Gadkari

10 Jan, 2021, 10:17PM | Business Standards

Big players in the steel and cement industry are indulging in cartelisation to jack up prices, Union Road Transport Minister Nitin Gadkari said, pitching to place a regulator for the sectors. It will be difficult to achieve Prime Minister Narendra Modi's dream of making India a $5 trillion economy if the steel and cement prices keep going up, Gadkari said, pointing out the target of investing Rs 111 trillion on infrastructure projects in the next five years to aid the economy. It can be noted that allegations of such cartelisation have been made in the past as well, especially by the real estate industry, which is impacted through higher input prices because of it. The minister said he had discussed the issue with the Prime Minister.

Union Minister Nitin Gadkari assures regulator for steel, cement industry to curb cartelisation

10 Jan, 2021, 03:10PM | Economic Times

MUMBAI: The government is serious about setting up a regulator for the steel and cement industry to curb the cartelization, said Union Minister of Road Transport and Highways Nitin Gadkari . Expressing concern over the cartelization in the steel and cement industry, the minister said that it was not in the interest of the nation. "We have taken serious note of it and I have discussed this with honourable prime minister. Most of the steel companies own iron ores and with no increase in labour and power charges, why should there be the increase in the steel prices. It is very difficult to understand. Similarly, cement industry is taking disadvantage of the situation by exploiting it for the profit. This is not in the interest of the nation. We are aiming to implement the projects worth Rs 111 lakh crore in next five years and honourable prime minister has dreamt of making the economy of Rs 5 trillion. With such a cartelisation by cement and steel industry it will be difficult to achieve the aim,” Gadkari said. Real estate developers, for the last few months, have been alleging cartelisation by cement and steel manufacturers and seeking government intervention to regulate prices that have been rising. According to him, regulatory authority for steel and cement industry was a good idea and the ultimate decision, however, needs to be taken up by the Finance Ministry and the office of Prime minister. "But I can assure you that this has been taken very seriously and we will resolve it at the earliest,” he said at a virtual meeting with members of the Builders Association of India. There is a cartel in cement & steel industry. Every steel company has its own iron ore mines & there has been no in… https://t.co/tjaEuo4PXX— ANI (@ANI) 1610234474000 The developers' body has also demanded the status of industry to the infrastructure sector. According to BAI’s president Mu Mohan, the status would help them in solving major taxation and duty related issues. Gadkari has assured the organization to look into it. The minister has also sought cooperation and proactive approach by the industry players in helping the government in achieving its goals in infrastructure sector. "We have planned infrastructure projects worth Rs 111 lakh crore and road construction projects worth Rs 15 lakh crore. This would be a major boost to the infrastructure and construction industry. But the industry players should adopt innovative steps and proactive measures to reduce cost and complete projects within time frame. BAI’s role is important in that respect,” he added. Gadkari also said that he had discussion over issue related to the Goods & Services Tax (GST) with the concerned departments. “As far as the implementation of the GST is concerned, we have had a lot of discussion with the finance ministry. We are facing problems with the compliances and methods. The Finance Ministry has instructed NHAI and other government agencies to issue bids excluding part of the quoted bids so that the problems could be resolved. It has given noted direction that the future bids should be based on civil cost including GST, which would be paid separately. Detailed Standard Operating Procedure (SOP) has been issued for pre-GST projects,” he said. About the release of the bills, Gadkari has asked the body to have dialogues with the concerned state governments. The minister also suggested the BAI and the contractors, industry players association with it to take steps to ensure that the newer innovations are taken up to decrease the cost of construction in the sector.

India's coal import drops 17% in April-November: mjunction

10 Jan, 2021, 01:03PM | Economic Times

NEW DELHI: India's coal import declined by 17 per cent to 137.16 million tonne (MT) in the April-November period of the current fiscal. The country had imported 165.35 MT of coal in the year-ago period, according to provisional compilation by mjunction , based on monitoring of vessels' positions and data received from shipping companies. mjunction, a joint venture between Tata Steel and SAIL, is a B2B e-commerce company that also publishes research reports on coal and steel verticals. The country's coal import in November also dropped to 20.35 MT from 21.72 MT in the corresponding month of previous fiscal, it said. "India's coal and coke imports during November 2020 through the major and non-major ports are estimated to have decreased by 6.3 per cent over November 2019," it said. Of the total imports during November, non-coking coal was at 13.77 MT, against 15.32 MT imported in the same month last year. Coking coal imports were at 4.28 MT, up from 4.09 MT in November last fiscal. During April-November period, non-coking coal import was at 91.44 MT as compared to 114.05 MT during the same period of the previous fiscal. Coking coal imports were recorded at 28.18 MT, lower than 32.72 MT imported during the same period a year ago. "Coal demand from utilities witnessed a modest easing following the festive season, leading to an increase in coal stockpile in the system in December. This coupled with the recent surge in seaborne thermal coal prices in the international markets is expected to restrict the volumes, going forward," Vinaya Varma, MD and CEO, mjunction services said while commenting on the coal import trend. Coal India, which accounts for over 80 per cent of domestic coal output, is aiming at substituting imported dry fuel of 80-85 million tonne with more domestic supplies in the current fiscal. The miner has asked power plants in the coastal areas to submit proposals for a gradual increase of its supplies to these units to reduce foreign exchange outgo. The country had imported 248 million tonne of coal in 2019-20, resulting in an outflow of around Rs 1 lakh crore of foreign exchange.

Top four steel players' production rises 6 pc to about 15 MT in Oct-Dec

10 Jan, 2021, 12:10PM | Business Standards

The country's top four steel makers jointly produced 14.95 million tonne (MT) steel in the October-December quarter of the current fiscal, registering a 6 per cent year-on-year rise. The total steel output of JSPL, JSW Steel, SAIL and Tata Steel India was 14.09 MT during the same quarter of 2019-20. During the quarter under review, the total sales of the steel producers - excluding JSW Steel - surged 2.25 per cent to 10.88 MT, as against 10.64 MT in the year-ago quarter, according to the data provided by the companies. Among all four steel players, Tata Steel India was the top producer in the October-December period of FY21. Its total output from India operations was 4.60 MT during in the quarter. At 4.60 MT, the company's output was 3 per cent higher compared to 4.47 MT steel it had produced in the year-ago period. Its sales from India operations slipped 4 per cent to 4.66 MT from 4.85 MT. State-owned Steel Authority of India Ltd (SAIL) production grew 9 per cent to 4.37 MT steel during October-December compared to 4 MT a year ago. Its total sales were at 4.32 MT, up about 6 per cent from 4.09 MT in the same quarter preceding fiscal. JSW Steel's output during the period under review rose 2 per cent to 4.08 MT, as against 4.02 MT in the year-ago period. The company did not provide its sales figures for the quarter. Jindal Steel and Power Ltd (JSPL) output surged 18 per cent to 1.9 MT in the October-December quarter from 1.6 MT a year ago. Its sales increased by 12 per cent to 1.9 MT from 1.7 MT. JSPL, JSW Steel, SAIL and Tata Steel India jointly contribute about 45 per cent to India's total steel production annually. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Top four steel players' production rises 6 per cent to about 15 MT in Oct-Dec

10 Jan, 2021, 12:02PM | Economic Times

NEW DELHI: The country's top four steel makers jointly produced 14.95 million tonne (MT) steel in the October-December quarter of the current fiscal, registering a 6 per cent year-on-year rise. The total steel output of JSPL, JSW Steel , SAIL and Tata Steel India was 14.09 MT during the same quarter of 2019-20. During the quarter under review, the total sales of the steel producers - excluding JSW Steel - surged 2.25 per cent to 10.88 MT, as against 10.64 MT in the year-ago quarter, according to the data provided by the companies. Among all four steel players, Tata Steel India was the top producer in the October-December period of FY21. Its total output from India operations was 4.60 MT during in the quarter. At 4.60 MT, the company's output was 3 per cent higher compared to 4.47 MT steel it had produced in the year-ago period. Its sales from India operations slipped 4 per cent to 4.66 MT from 4.85 MT. State-owned Steel Authority of India Ltd (SAIL) production grew 9 per cent to 4.37 MT steel during October-December compared to 4 MT a year ago. Its total sales were at 4.32 MT, up about 6 per cent from 4.09 MT in the same quarter preceding fiscal. JSW Steel's output during the period under review rose 2 per cent to 4.08 MT, as against 4.02 MT in the year-ago period. The company did not provide its sales figures for the quarter. Jindal Steel and Power Ltd (JSPL) output surged 18 per cent to 1.9 MT in the October-December quarter from 1.6 MT a year ago. Its sales increased by 12 per cent to 1.9 MT from 1.7 MT. JSPL, JSW Steel, SAIL and Tata Steel India jointly contribute about 45 per cent to India's total steel production annually.

GM's Cruise founder expects consolidation for makers of lidar self-driving vehicle sensors

09 Jan, 2021, 10:26PM | CNBC

Cruise Automation COO Dan Kan (l to r), Cruise Automation CEO Kyle Vogt and General Motors President Dan Ammann Tuesday, November, 20, 2018 at Cruise Automation offices in San Francisco, California.Â Source: Noah Berger | General Motors The co-founder and president of Cruise, General Motors' majority-owned autonomous vehicle subsidiary, is predicting a consolidation/collapse of the lidar industry, specifically regarding companies that have gone public or plan to do so through deals with blank check companies.In a series of tweets earlier this week, Kyle Vogt, who also serves as Cruise's chief technology officer, said recent valuations of companies that have cut deals to go public with such firms, also known as special purpose acquisition companies (SPACS), are overvalued."Interesting thing happening in the LIDAR industry right now. 5+ companies will soon or have SPAC'd," he said Wednesday afternoon. "Their value is based on *projected* revenue that comes from *entirely overlapping* potential customers, with very little discount applied to future projections. Is this bad?"Vogt continued by discussing the SPAC model and says one of the companies â specifically naming AEVA, Innoviz, Ouster, Velodyne Lidar and Luminar Technologies â may be able to meet such high valuations, but not all of them. The first three companies have announced SPAC deals but have not yet gone public."Of course, it's certainly not unusual for startups to be valued based on future revenue projections, even in a highly competitive space," Vogt tweeted. "But I typically see private markets put a much larger discount on these future projections than what we see with these SPACs."Cameras help autonomous vehicles read street signs and the color of traffic lights. But lidars, or light detection and ranging systems, do the important work of sensing and helping cars avoid obstacles, whether that's a fallen tree, drunk driver, or a child running out into the road. Lidar also has applications in defense, robotics, aviation and, more recently, personal electronic devices such as Apple's iPhone.Luminar went public last month through a SPAC deal with an enterprise value of $2.9 billion. Its current market cap is $10.7 billion. It's a similar story with Velodyne, which went public in September with a $1.8 billion valuation despite recording a net loss of $67.2 million on revenue of $101.4 million in 2019. It has a market cap of $4 billion. VIDEO2:5502:55Luminar CEO Austin Russell on potential Apple carSquawk Alley "Robotaxis will have an enormous positive impact on society, so it's critical to see progress here," tweeted Vogt, saying he respects all of the companies. "But we saw a consolidation / collapse of the robotaxi space over the last 24 months (down to a handful of players), and LIDAR is next. This probably means lower market caps for most of these co's, which sucks for everyone involved, but may the best product win!"Outside of Tesla CEO Elon Musk, who has criticized lidar, many consider the technology essential for self-driving vehicles. Lidar works by using laser beams to create a 3D environment of its surroundings for onboard computer systems.Cruise acquired a lidar start-up called Strobe in 2017. The company is continuing to build its own self-driving sensor technology internally as well as "watching to see what comes from the marketplace," according to a Cruise spokesman."As we begin to commercialize, we're going to make our decision based entirely on making sure our customers and communities are safe, and that we get the price of the technology down to a point where it's accessible to everyone," he said in an emailed statement.

Stocks making the biggest moves midday: Tesla, Plug Power, U.S. Steel, Chipotle & more

08 Jan, 2021, 10:45PM | CNBC

VIDEO4:5404:54Leadership expert Jeff Sonnenfeld on corporate leaders' responses to Capitol unrestSquawk Box Check out the companies making headlines in midday trading.Â Tesla â The electric vehicle company surged more than 7% to a new record high. Tesla's market capitalization jumped above $800 billion for the first time on Friday, making the company more valuable than Facebook, and the fifth-most valuable component of the S&P 500. Evercore ISI also upgraded Tesla to inline from underperform.Micron â Shares of the semiconductor company gained more than 1% after Micron beat expectations for its fiscal fist quarter. The company reported adjusted earnings per share of 78 cents and revenue of $5.77 billion. Analysts surveyed by Refinitiv were expecting 71 cents per share and $5.73 billion in revenue. Micron's revenue and gross margin increased year over year.TripAdvisor â Shares jumped more than 8% after Deutsche Bank added a short-term buy call to the online travel company, calling it a big player in the "post vaccine travel recovery." Â However, the Wall Street firm reiterated its long-term hold rating on the stock. Shares have rallied more than 20% in January.Chipotle â The fast food chain advanced 2% after Loop Capital Markets named Chipotle a top pick for 2021. The Wall Street firm said Chipotle has "multiple levers" in place to drive outperformance.Sarepta Therapeutics â Shares dropped 50% after the top-line results for a study of Sarepta's investigational gene therapy showed statistically insignificant results from the placebo group. The therapy was being developed for patients with Duchenne muscular dystrophy. Several Wall Street firms downgraded the stock following the news, according to FactSet.U.S. Steel â Shares rallied nearly 13% after an analyst at Deutsche Bank upgraded the steel producer to buy from sell. The analyst said U.S. Steel has "greater leverage to current elevated steel prices given costs are largely contained."JetBlue â The airline stock popped nearly 2% after Bank of America hiked its rating on the shares to buy from neutral. The Wall Street firm is bullish on JetBlue's leisure-oriented business on the back of a vaccine-driven economic recovery.CVS â Shares of the pharmacy company gained more than 2% after Jefferies upgraded CVS to buy from hold. The upgrade is based on a "belief that its role in COVID-19 vaccinations will yield near-term earnings upside."Enphase Energy â Shares of the solar company slid more than 2% following a downgrade to underperform at Raymond James. "Enphase is an extremely crowded trade â a textbook example of, in our view, overly euphoric sentiment," the firm said in a note to clients. The stock gained roughly 570% in 2020.Plug Power â Shares of the hydrogen fuel cell company jumped more than 14%, accelerating Thursday's 35% gain. The move comes after South Korea's SK Group announced a $1.5 billion stake in the company.F5 Networks â Shares of the networking technology company gained more than 5% after F5 raised its financial targets. The company also announced that it will acquire Volterra, a software company, for $500 million.Goodyear Tire â The tire company jumped more than 6% following an upgrade to overweight at KeyBanc. "We regard GT as a prime 'earnings momentum' stock with a notable multiyear de-levering thesis that stands to unlock significant equity value over time," the firm said in a note to clients.- CNBC's Yun Li, Maggie Fitzgerald, Fred Imbert and Jesse Pound contributed reporting.Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Tata Steel's India output grows 3% in Oct-Dec, sales decline 4%

08 Jan, 2021, 09:39PM | Business Standards

Tata Steel on Friday said its total output from India operations rose 3 per cent to 4.60 million tonnes (MT) during October-December quarter of the current financial year. The output from company's operations in India was at 4.47 MT in the year-ago period, Tata Steel said in a statement. Its sales from India operations during the period under review were at 4.66 MT, down 4 per cent from 4.85 MT in the same quarter of 2019-20 financial year. Tata Steel Europe's output also rose 4 per cent to 2.61 MT from 2.51 MT in the year-ago period. Sales from operations in Europe declined 10 per cent to 2.11 MT during the period under review from 2.35 MT in October-December of 2019-20. "Automotive and special products' segment deliveries grew 48 per cent quarter-on-quarter (q-o-q) on the back of improvement in overall demand, increased share of business from existing customers and new product approvals," the company said in the statement. Deliveries of branded products and retail segment grew by 5 per cent q-o-q, it said. "Industrial products and projects' segment deliveries were marginally lower. However, the company achieved a 47 per cent q-o-q delivery volume growth in high-end segments as we continued to focus on product mix enrichment by catering in sub-segments such as oil and gas, lifting and excavation and pre-engineered buildings," it added. Tata Steel is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum.

Top steelmakers ramp up production in Q3 FY21, domestic sales exceed pre-Covid levels

08 Jan, 2021, 09:28PM | Economic Times

Mumbai: India’s primary steelmakers JSW Steel , Tata Steel , Steel Authority of India and JSPL reported a jump in production on the back of improved capacity utilisation and the domestic sales during the December quarter of FY21 reached pre-covid levels owing to better demand. State-owned Steel Authority of India reported a 9% growth in crude steel production for the quarter under review at 4.37 million tonnes (mt) as against a production of 4 mt during the same period last year. SAIL’s sales volume also registered a growth of 5.6% during the Q3 of FY 21, at 4.32 mt. “The first quarter was impacted due to the onset of the pandemic but gradually we have scaled up our performance by enhancing the volumes. It is heartening that the pre-covid levels have already been reached and the production has grown in the last quarter,” said the newly appointed chairman of SAIL , Soma Mondal in a statement on Friday. The company’s domestic sales increased 9% to 4.05 mt during the December quarter and exports came down by 25% to 0.27 mt. Tata Steel India’s crude steel production in the third quarter was recorded at 4.60 mt, registering a 3% yoy growth. The company’s domestic sales ramped up to 4.16 mt which translates to an increase of 8% QoQ and 4% YoY. Exports shrank below 11% of overall deliveries. “Tata Steel’s sales volumes were constrained by lower opening inventory post very strong sales in 2QFY21. As a result, deliveries were 4.66 mt in 3QFY21, lower by 8% QoQ and 4% YoY,” the company said in a statement on Friday. Yet another top steelmaker, JSW Steel achieved a crude steel production of 4.08 mt in the third quarter of FY 21, registering a growth of 6% quarter on quarter and 2% year-on-year. “The company’s average capacity utilisation improved to 91% in Q3 of FY 21 from 86% in Q2 of FY 21,” the company’s statement said. Steelmaker, JSPL reported record sales and production during the third quarter. The company reported a 20% yoy rise in production to 19.3 lakh tonnes during the third quarter of FY 21 with December production alone reaching record high levels of 7.27 lakh tonnes, a rise of 30% yoy. JSPL's standalone steel sales increased by 12% YoY to 18.8 lakh tonnes in Q3FY21 compared to 16.7 lakh tonnes in Q3FY20, however, the company’s Steel exports increased by 18% yoy to 3.87 lakh tonnes in Q3 of FY21 contributing 21% to the total sales volumes. “We did 35 lakh tonnes of sales and 35 lakh tonnes of production in H1. We are targeting 40 lakh tonnes of sales and 40 lakh tonnes of production in H2 which will amount to 7.5 million tonnes of sales & production in FY2021", said V R Sharma, Managing Director, JSPL Steelmakers are witnessing demand from auto, construction and infra segments. “Automotive & Special Products segment deliveries grew 48% QoQ on the back of improvement in overall demand, increased share of business from existing customers and new product approvals,” said Tata Steel in a statement. Yet another top steel player said that the government projects and construction such as railways, roads and individual home building have picked up since the mid of November contributing at least 20% of the overall sales. The improved sales, coupled with better sales during the quarter may lead to the steel companies reporting record earnings in the Q3 of FY 21, say analysts. “The rally in steel prices was mainly led by higher global steel prices and recovery in demand in the domestic markets. Hence, we expect higher volumes and realizations for Indian steel companies in Q3FY21 which in turn will lead to record profits for these companies,” said IDBI Capital in a sector report on Thursday. While the primary steelmakers are getting back to pre-covid levels, with an increase in production of crude steel on a quarterly basis, the production at the end of 9 months of FY21 is still falling short due to the peak lockdown period during the initial few quarters. JSW Steel’s crude steel production at the end of 9 months ending December fell by 10% to 10.89 million tonnes, as against a production of 12.09 mt during the same period last year. SAIL’s production from April-December was recorded at 10.60 million tonnes, a fall of 10.33%. Tata Steel India's production for the April - December of FY 21 fell by 10% to 2.18 million tonnes.

SAIL reports 9% growth in crude steel production

08 Jan, 2021, 05:01PM | Economic Times

MUMBAI: State-owned Steel Authority of India reported a 9% growth in crude steel production for the December quarter of FY21 at 4.37 million tonnes as against a production of 4 mt during the same period last year. SAIL’s sales volume registered a growth of 5.6% during the Q3 of FY 21, at 4.32 million tonnes. “The first quarter was impacted due to the onset of the pandemic but gradually we have scaled up our performance by enhancing the volumes. It is heartening that the pre-covid levels have already been reached and the production has grown in the last quarter,” said the newly appointed chairman of SAIL , Soma Mondal in a statement on Friday. The company’s domestic sales increased 9% to 4.05 mt during the December quarter and exports came down by 25% to 0.27 mt, the company’s exports during the previous quarter was recorded at 0.67 million tonnes. “The domestic steel consumption has a positive outlook as the economy is reviving and all sectors have started to pick-up. We are confident of seizing the unfolding opportunities in the steel market,” Mondal added. Speaking to ET, SAIL’s ex-chairman, Anil Kumar Chaudhary earlier said that the company is on a path to deleverage its balance sheet and is planning to bring down the debt levels to Rs 45,000 crore by the end of December 2020 and to Rs 40,000 crore by March 2021 from its current level of Rs 50,638 crore. “SAIL has significantly reduced the net debt to Rs 44308 crores on 31st Dec 2020 ...The company continues its efforts to deleverage further,” said the company on Friday. Amid an iron ore shortage in the market, the ministry of mines has allowed SAIL to sell 25% of its total iron ore production calculated on the basis of cumulative production of all captive mines in a state, as well as sub-grade minerals lying at the mine pit heads. “In compliance of this notification, SAIL has already sold approximately 2.16 Million Tonnes (MT) of fresh fines through auction during the current financial year from its various mines. Around 0.3 MT of dump fines and tailings have also been successfully auctioned during this period,” the company said in a statement, adding that this move has helped to alleviate the shortage of iron ore in the market. Yet another top steelmaker, JSW Steel achieved crude steel production of 4.08 mt in the third quarter of FY 21, registering a growth of 6% quarter on quarter and 2% year-on-year. While the primary steelmakers are getting back to pre-covid levels, with an increase in production of crude steel on a quarterly basis, the production at the end of 9 months of FY21 is still falling short due to the peak lockdown period during the initial few quarters and due to a shortage of iron ore. JSW Steel’s crude steel production at the end of 9 months ending December fell by 10% to 10.89 million tonnes, as against a production of 12.09 mt during the same period last year. SAIL’s production for the period of April-December was recorded at 10.60 million tonnes, a fall of 10.33% year-on year.

Road ministry to spend over Rs 1,200 crore for wildlife passes on highways: Gadkari

08 Jan, 2021, 02:19PM | Times Of India

MUMBAI: Union Minister Nitin Gadkari on Thursday said his ministry is spending over Rs 1,200 crore for creating corridors to be used by wildlife for safely crossing highways passing through green belts. The road transport, highways and MSMEs minister also said the Mumbai-Delhi expressway will be extended to the country's largest container port JNPT by spending up to Rs 15,000 crore. Concerns have been expressed about the impact of highways on the wildlife and calls have been repeatedly made to emulate global experiences where dedicated corridors are created for the safe movement of animals. Gadkari said a bulk Rs 1,100 crore will be spent on underpasses to be built on the Nagpur-Jabalpur National Highway which passes through the Pench National Park. Apart from this, four highways including Gadchiroli-Chandrapur and Chimur-Vadodara will see an expenditure of Rs 170 crore for animal crossings, he told reporters. "We are not just building roads. We also want to plant trees and create infrastructure for safe movement of wildlife," Gadkari said. On the extension of the Mumbai-Delhi expressway, Gadkari said a need was felt for it because otherwise, all the vehicles will clog the traffic in the financial capital. The expressway will be connected to a special road constructed by the container port near Panvel and entail a cost of Rs 12,000-15,000 crore, Gadkari said. A bulk of it will be on land acquisition, he added. The Union minister, who met Chief Minister Uddhav Thackeray on Thursday, said he had requested Maharashtra to contribute half of the incremental cost of the highway building. Maharashtra, however, declined the proposal but agreed to waive the GST on steel and cement to be used and also on royalty component, he said. The money will be considered as equity contribution by the state in the ambitious project, Gadkari added. He said 40 per cent of the work on the project has already been completed and exuded confidence for a commissioning of the access control highway in one-and-a-half year. Meanwhile, Gadkari also announced that a Rs 12,000-crore cement concrete highway will be constructed to connect the Alandi and Dehu Road with the pilgrim town of Pandharpur in Maharashtra. These national highways, to be used by "palkhis" walking to Pandharpur will also have dedicated green lanes with grass on the sides which can be used by devotees, Gadkari said. The ministry will also ask Maharashtra for additional land on the route where the walkers can stay overnight, he added. He also announced a Rs 6,000-crore highway from Surat to Solapur via Nashik and Ahmednagar, which will lessen the traffic burden on Mumbai and Pune as the north-south traffic passes through these two cities. The ministry may extend the FASTag implementation by some more days, he said adding that 75 per cent of vehicles have complied with the electronic system. He said the government is also contemplating using GPS equipment fitted in vehicles to ensure that there are no toll plazas at all, explaining that the toll will be directly debited as per the distance for which a vehicle has been used. When asked about the scrappage policy, Gadkari said the proposal is pending with the finance ministry on the taxation treatment but declined to give a timeline for the same. Gadkari said this was his maiden visit to the financial capital since the onset of pandemic in March and added that state ministers Ashok Chavan, Balasaheb Thorat and Eknath Shinde were also present. Earlier in the day, he also paid a visit to Shiv Sena leader Manohar Joshi's residence but stressed that the same was not political in nature. He parried questions on Thackeray's performance as the chief minister and also the pre-eminence of the Enforcement Directorate in Maharashtra's politics.

HMEL to shut Bathinda refinery for 40 days from end-January: Report

08 Jan, 2021, 01:12PM | Business Standards

By Nidhi Verma NEW DELHI (Reuters) - India's HPCL-Mittal Energy Ltd (HMEL), part owned by steel tycoon L N Mittal, will shut its 226,000 barrels per day (bpd) Bathinda refinery in northern Punjab state for about 40 days from end-January for maintenance, two sources said. During the shutdown HMEL will also carry out work to be able to hook petrochemical units, including a 1.2 million tonnes a year ethylene cracker, sources with knowledge of the plan said. The 40-day shutdown is expected to start around Jan. 25-26, said one of the sources, adding the company plans to commission petrochemical units in September-October. The sources declined to be named as they are not authorised to speak to media. HMEL's chief executive Prabh Das said 'no comments' when asked about the shutdown plan. Indian refiners have turned their focus to raising production of petrochemicals to cater for rising demand and help hedge against lower refined fuel margins. State-refiner Hindustan Petroleum Corp and Mittal Energy Investments Pvt Ltd own 49 percent stake each in the project. (Reporting by Nidhi Verma; Editing by Michael Perry) (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Harsh Vardhan reviews preparedness for vaccine dry run on Friday

07 Jan, 2021, 07:15PM | Business Standards

Union Health Minister Harsh Vardhan on Thursday interacted with the Health Ministers, Principal Secretaries, and Additional Chief Secretaries of the states and UTs to review the preparedness for the nationwide mock drill for coronavirus vaccination scheduled for Friday. The second nationwide mock drill on the Covid19 vaccination will be held at three session sites of 736 districts across all 33 states and UTs. Its objective is to simulate the actual vaccine administration event. The entire planning of the vaccination drive including beneficiary registration, microplanning and vaccination at the planned session site, will be tested under the leadership of District Collector/District Magistrate. The dry run will also familiarise the state, district, block and hospital level officers on all aspects of the vaccine roll out. This activity will help administrators in strengthening the linkages between planning, implementation and reporting mechanisms, identification of any residual challenges prior to the actual implementation and to provide confidence to the programme managers at all levels to carry out a smooth implementation of the vaccination drive. Seeking their personal indulgence, leadership and keen oversight for the national dry run, Dr Harsh Vardhan requested the Health Ministers to be vigilant against rumours and disinformation campaigns regarding the safety and efficacy of the Covid-19 vaccine. Rubbishing the rumours being propagated on social media which are raising doubts in the mind of the public regarding the vaccine side effects, he said: "These miscreants might derail the whole exercise, set the clock back by years." He urged the state health authorities to work with the multiple stakeholders and the youth to spread the right information and dispel rumours and mistruths being spread about the Covid-19 vaccine. Harsh Vardhan started by reminding everyone that the country has completed a year of successfully battling the pandemic with the first meeting of the Joint Monitoring Group (JMG) of MoHFW on Covid being held on January 8. He appreciated the tireless efforts being made by the multiple stakeholders, including the Central and state government officials and the medical community who have worked proactively in the last few months to compose and disseminate detailed guidelines on the upcoming vaccination drive, train the vaccine administrators. He also expressed gratitude to the scientific community who have worked tirelessly to bring the country two vaccines which have recently received the Emergency Use Authorisation few days back. The Health Minister highlighted the unique digital platform, Co-WIN, repurposed from the e-VIN platform that will provide real time information of vaccine stocks, their storage temperature and individualized tracking of beneficiaries of the Covid-19 vaccine. This platform will assist the programme managers across all levels through automated session allocation for pre-registered beneficiaries, their verification and for generating a digital certificate upon successful completion of the vaccine schedule. More than 78 lakh beneficiaries have been already registered on the platform, he stated. The Minister reassured all his State counterparts that the country's cold chain infrastructure has been sufficiently upgraded to ensure last mile delivery and that adequate supplies of syringes and other logistics have also been provided for. "India has unparalleled experience in dealing with immunisation and runs one of the largest universal immunisation programmes in the world which has been applauded by the world for its robustness." He referred to India's several successful immunisation drives with respect to polio, rubella and measles and also narrated his personal experience from the early nineties of having galvanised efforts of millions of Indians which eventually led to the eradication of polio from the country. "The rich experience of the country from the UIP and the anti-polio campaign are being used to strengthen the processes of Covid-19 vaccination," he said. Following this, he reminded his state counterparts to also ensure that the National Immunisation Day (NID) scheduled on January 17 is also given due importance. He also requested the state and UT Health ministers to ensure that non-Covid essential services are not adversely impacted. "It is with the collaborative efforts of the states and UTs and multiple partners that India and 11 other countries of the South East Asia region of WHO have been declared polio free. It should be our endeavour to sustain India's polio-free status," he said. Drawing attention to some neighbours still having cases of wild polio, he said that it is important that the NIDs are effectively rolled out. Harsh Vardhan stated that to strengthen the capacity of human resource for Covid-19 vaccine introduction and roll-out, detailed training modules have been developed for different categories of vaccine handlers and administrators including medical officers, vaccinators, alternate vaccinators, cold chain handlers, supervisors, data managers, ASHA coordinators and all others involved in the implementation process at different levels. He said the entire operational planning and IT platform has been field tested on several occasions before the second national dry run of Friday. The earlier national mock drill of January 2 helped to iron out any glitches in the final execution and further refinement of the operational procedures. The feedback from most of the States and UTs was satisfactory conduct of the dry run. The State and UT ministers shared their feedback and experience from the past dry run exercises and the preparedness for Friday's exercise. They informed about the training sessions held for vaccinators, updation of the database of beneficiaries, cold chain management, session allocation, reporting of Adverse Event Following Immunisation (AEFI) etc. The Union Minister was also apprised that the meeting on the state level, district level and block level are being conducted regularly. Effective communication is being carried out in the States to disseminate the correct information about vaccines. --IANS aka/vd (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

NALCO to invest Rs 30,000 crore on expansion by 2027-28: Pralhad Joshi

07 Jan, 2021, 04:30PM | Economic Times

State-run NALCO will invest nearly Rs 30,000 crore on expansion and diversification plans, union coal and mines minister Pralhad Joshi said on Wednesday. Of the proposed investment, the company will spend over Rs 7.000 crore on the fifth stream refinery, Pottangi bauxite mines, bauxite transportation system from Utkal D & E coal mines. Remaining Rs 22,000 crore will be spent on smelter and captive power plant expansions, including expansion of the company’s smelter plant at Angul district in Odisha with construction of a 1400 MW feeder captive plant, an official statement said. “With the ambitious growth plans that NALCO has for the future, it will contribute significantly to the alumina and aluminium sectors having a multiplier effect in the production and consumption of this strategic metal and achieve Aatmanirbhar Bharat vision, Joshi said while addressing the 41st Foundation Day of NALCO at the company’s headquarters in Bhubaneswar . Joshi said that the central government is extending all round support to Odisha to avoid any interruption in the mineral production of the country. He said in view of the requests made by the state government, the central government will amend concerned rules so that smooth production of minerals could be ensured and non-serious players barred from participating in mineral block auctions. “Specially to expedite iron ore production in Odisha, we have approved the proposals to allot 02 iron ore mining blocks to Odisha Mineral Corporation and 01 block to Odisha Mineral Exploration Corporation Ltd on the request of the state.” he said. An MoU was also signed between Odisha Mineral Exploration Corp Ltd (OMECL) and Mineral Exploration Corp Ltd (MECL) for exploration of mineral blocks of OMECL. In order to expedite the auction of mineral blocks in Odisha, relaxation in norms is also being considered, Joshi said. An auction regime was introduced by the Ministry of Mines for allotment of mineral blocks in India through an amendment made in MMDR Act in 2015. As per laid down procedures made through this amendment, leases for 46 mineral blocks were getting expired in March 2020, majority of them were situated in Odisha. To keep the mineral productions uninterrupted, the central government brought The Mineral Laws (Amendment) Ordinance, 2020, in January 2020, that broadly mandated the state governments to take advance action for auction of mineral blocks so that the new lease holder could be decided before the existing lease gets expired. Secondly, it was also mandated that approvals and clearances shall automatically get transferred to the new owners of mineral blocks for a period of two years from the date of grant of new lease. During this period, the new owners could apply and get fresh clearances. This helped the new owners to continue with hassle free mining operations. NALCO, in association with the government of Odisha, is setting up abn aluminium park in Angul, in close proximity to its smelter plant to encourage development of downstream and ancillary industries in the state of Odisha. This will enhance employment in the area and give a boost to local entrepreneurship.

Metals extend rally on strong demand; Tata Steel zooms 97% in 3 months

07 Jan, 2021, 02:43PM | Business Standards

Shares of metal companies extended their rally into Thursday, with the Nifty Metal index surging 4 per cent to hit a fresh 52-week high of 3,564 on the National Stock Exchange (NSE) on strong demand outlook. In comparison, the Nifty50 index hit a fresh record high of 14,256 today. The index was up 0.28 per cent, at 02:15 pm. Tata Steel, Hindustan Copper, Jindal Steel and Power (JSPL) and Hindalco Industries from the Nifty Metal index were up between 5 per cent and 9 per cent. NMDC, Hindustan Zinc, Steel Authority of India (SAIL), JSW Steel and National Aluminium Company gained in the range of 2 per cent to 3 per cent on the NSE. In 2021, steel demand in India is expected to be extremely strong on the back of government's infrastructure investments, production linked incentives, support for rural economy through infra development. Restarting of construction activities across India and recovery in the auto industry are also likely to support demand. Among the individual stocks, Tata Steel hit three-year high of Rs 729, up 7 per cent on the NSE. The stock was trading at its highest level since January 2018. In the past three months, it rallied 97 per cent, as compared to 57 per cent surge in Nifty Metal index and 21 per cent gain in the Nifty50 index. Last month, S&P Global Ratings had revised outlook for Tata Steel to 'stable' on the expectation that the company’s earnings would strengthen over the next 18 months and its key financial metrics would improve to levels appropriate for the current rating. JSPL too rallied 7 per cent to Rs 305, its fresh 52-week high, on the back of heavy volumes. The trading volumes on the counter jumped 1.5 times with a combined 14 million equity shares changing hands on the NSE and BSE. JSPL steel operations reported their highest ever monthly production volumes with 7.27 lakh tonnes during December 2020. The company’s steel sales increased by 12 per cent (Y-o-Y) to 18.8 lakh tonnes in the October- December quarter (Q3FY21). SAIL was up 4 per cent to Rs 79.25, rallying 137 per cent in the past three months. The stock of the state-owned company hit a 52-week high of Rs 80.30 on January 5, 2021. The company’s management expects the company is determined to perform better in future and is geared up to take all necessary actions to remain a world-class domestic steel producer towards building an Atmanirbhar Bharat. SAIL had reported a consolidated net profit of Rs 437 crore in the July-September quarter (Q2FY21) on back of strong operational performance. It had posted a net loss of Rs 286 crore in the same quarter of previous fiscal and a loss of Rs 1,226 crore in the June quarter (Q1FY21). Dear Reader, Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. We, however, have a request. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed. Support quality journalism and subscribe to Business Standard. Digital Editor Read our full coverage on Nifty Metal index .pubDate{color:#000!important;font-size:14px!important;border-top:solid 1px #cecece;font-style:italic;font-family:'open sans';padding:10px 0 2px 0} First Published: Thu, January 07 2021. 14:43 IST Read More On Markets | Nifty Metal Index | Tata Steel | Buzzing Stocks | Hindustan Zinc | Nmdc | Jsw Steel | Steel Authority Of India | News PREVIOUS STORY NEXT STORY var cmtIframe=$("#article-comment-frame");var cmtIframeOffset=cmtIframe.offset();var iframeDivhgt=cmtIframeOffset.top;iframeDivhgt=iframeDivhgt-600;var iframeDistanceTop=iframeDivhgt;var iframeLoaded=false;$(function(){$(window).scroll(function(){if($(window).scrollTop()>iframeDistanceTop){if(iframeLoaded==false){$("#article-comment-frame").attr("src",$("#article-comment-frame").attr("data-original"));iframeLoaded=true;}}});});

Steel stocks hit fresh high on price hike, improvement in production

07 Jan, 2021, 01:57PM | Business Standards

Steel stocks rallied to fresh highs on Thursday on the back of price hikes and improvement in capacity utilisation. Stocks of all major steel producers hit a new one-year high with Tata Steel leading the pack. The stock gained 6.1 per cent intraday and touched a new 52-week high of Rs 725.70 on the Bombay Stock Exchange (BSE). The Jindal Steel & Power (JSPL) scrip touched Rs 300.90, JSW Steel Rs 412.95 and Steel Authority of India Ltd (SAIL) Rs 80.35. The rally is driven largely by successive increases in steel prices since July and spreads that are at multi-year high for the larger steel companies. Beginning January, companies have announced an increase in prices from Rs 1,000-Rs 4,000 a tonne and the expectation is that more could be in store in the coming weeks after NMDC announced a revision in prices of iron ore lumps and fines on Wednesday. ALSO READ: Bharti Airtel regains Rs 3 trillion market-cap as stock surges over 5% The market is also anticipating a strong set of numbers from steel companies for the third quarter. Production numbers announced by JSW Steel and JSPL, so far, show an increase in production levels, both quarter-on-quarter (QoQ) and year-on-year (YoY). JSW Steel announced on Thursday that it had achieved crude steel production of 4.08 million tonnes in Q3FY21, an increase of 6 per cent QoQ and 2 per cent YoY. The company’s average capacity utilisation improved from 86 per cent in Q2FY21 to 91 per cent for Q3FY21. JSPL, on the other hand, recorded its highest ever production and sales in December 2020; its steel production increased 20 per cent YoY to 1.93 million tonne in Q3FY21 while sales increased 12 per cent YoY to 1.88 million tonne in Q3FY21. Even though the prices of iron ore – a key input material – have been at elevated levels, the margins for major steel producers are expected to improve significantly, as steel companies increase prices. According to data from SteelMint, prices of hot rolled coil (flat) increased by about 48.3 per cent to Rs 55,250 a tonne (YoY), rebars (long) by 48.6 per cent to Rs 55,000 a tonne. However, prices of iron ore fines ex-Odisha increased 149 per cent to Rs 6,350 a tonne and lumps by Rs 89.2 per cent to Rs 8,800 a tonne; the price of NMDC fines increased 58.4 per cent to Rs 4,610 a tonne and 62.4 per cent to Rs 6,040 a tonne. But margins are still expected to be good as coking coal – the other major input material – has been depressed due to geopolitical issues. Isha Chaudhary, director, Crisil Research, expects EBITDA margins for large steelmakers to rise by 500-600 bps year-on-year in Q3FY21 on the back of robust realisations and volumes as the steel industry sharply recovered from its Covid slump. ALSO READ: L&T Hydrocarbon Engineering bags offshore contract from state-owned ONGC “Steel prices have risen by 30 per cent on-year in Q3 coupled with healthy steel demand (Oct-Nov’20 – 8 per cent on-year), leading to a robust top line growth for the quarter,” Chaudhary said. Players with captive iron ore access are likely to benefit more as merchant domestic iron ore prices have increased by over 50 per cent on-year (Q3FY21) which will weigh down on the profitability of non-captive iron ore steelmakers. “However, coking coal which is a larger part of the raw material cost has corrected by 23 per cent during the same period, thereby providing a further push to margin expansion,” she said. Since the unlocking, the sector has been on the rebound. An ICRA analysis suggested that the operating margins improved sharply on a QoQ basis to 21.5 per cent in Q2FY21 from 10.3 per cent in Q1FY21 (15.4 per cent in Q2FY20) on account of a spurt in sales volumes and softer input costs. The third quarter is expected to be even better and the trend is expected to follow through in the fourth quarter as well, a typically strong quarter. As JSPL Managing Director, V R Sharma said, “H2 will be better than H1.”

Apple working on cheaper AirPods Max headphones with plastic build

07 Jan, 2021, 11:52AM | Business Standards

Apple is reportedly working on a relatively cheaper version of AirPods Max headphones with a few changes. The next AirPods Max would be lighter than its sibling that weighs roughly 384 grams, with a plastic build instead of machine-textured anodized aluminium ear cups and stainless steel headband, reports GizmoChina. The upcoming cheaper model of the Apple AirPods Max headphones could be priced around $350, the report said on Thursday. To recall, AirPods Max was launched the last month with high-fidelity sound, Adaptive EQ, Active Noise Cancellation and spatial audio for Rs 59,900. AirPods Max uses Adaptive EQ to adjust the sound to the fit and seal of the ear cushions by measuring the sound signal delivered to a user and adjusting the low and mid-frequencies in real-time - bringing rich audio that captures every detail. Switching between Active Noise Cancellation and Transparency mode can be done with a single press using the noise control button. AirPods Max offers battery life with up to 20 hours of high-fidelity audio, talk time, or movie playback with Active Noise Cancellation and spatial audio enabled. --IANS wh/na (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

JSW Steel Q3 production up 6% at 4.08 million tonnes in December quarter

07 Jan, 2021, 11:14AM | Business Standards

JSW Steel on Thursday reported crude steel production of 4.08 million tonnes in the third quarter (October to December), marking a growth of 6 per cent quarter-on-quarter and 2 per cent year-on-year. The company said its average capacity utilisation improved from 86 per cent of 2Q FY21 to 91 per cent for 3Q FY21. The production of flat rolled products moved up 5 per cent to 2.98 million tonnes in 3Q from 2.84 million tonnes in 2Q. On the other hand, production of long rolled products jumped 22 per cent to 0.93 million tonnes from 0.77 million tonnes in the same period. JSW Steel is the flagship business of 12 billion dollar JSW Group with an installed capacity of 18 million tonnes per year. It is the only Indian company ranked among the top 10 steel producers in the world by World Steel Dynamics for the last 10 consecutive years. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

At least four workers die after gas leak at SAIL's Rourkela plant

06 Jan, 2021, 11:30PM | Business Standards

At least four workers died on Wednesday and a few others fell ill after inhaling a toxic gas leaked from a unit at Rourkela Steel Plant (RSP) of the state-run SAIL in Odisha, official sources said. The mishap took place at a coal chemical department facility in the morning when 10 workers were on duty there, they said. "The four contractual workers, engaged by a private company, felt unwell at 9 am, following which they were taken to a health facility of the plant and later admitted to the ICU of the Ispat General Hospital where they died,” the RSP officials said. The four deceased were identified as Ganesh Chandra Paila (55), Rabindra Sahu (59), Abhimanyu Sah (33) and Bramhananda Panda (51). According to a preliminary report, the four workers died due to carbon monoxide gas leak from the unit, the officials said, adding that some others, who also fell ill after inhaling the toxic gas, are being treated at the RSP dispensary. “A high-level committee has been formed to inquire into the cause of the incident. The plant is functioning normally,” the RSP officials said. RSP chief executive officer Dipak Chattaraj condoled the demise of four contractual workers and said the authorities will extend all the supports to the bereaved families.

Thermal coal imports at major ports fall 16% to 55 MT in Apr-Dec period: IPA

06 Jan, 2021, 05:24PM | Economic Times

New Delhi: Disruptions caused by the COVID-19 pandemic continued to impact cargo movement in India with thermal coal imports at 12 major ports declining 16.43 per cent year-on-year to 55.16 million tonnes in April-December 2020 period, according to ports' body IPA. Coking coal handling dropped by 12.13 per cent to 36.96 MT during the April-December period of the current fiscal. Coal volumes at the 12 major ports declined for the ninth straight month in December 2020, as per the Indian Ports Association (IPA). These ports had handled 66 MT of thermal coal and 42 MT of coking coal in April-December period of the previous financial year. Thermal coal is the mainstay of India's energy programme as 70 per cent of power generation is dependent on the dry fuel while coking coal is used mainly for making steel. India is the third-largest producer of coal after China and the US. It has 299 billion tonnes of resources and 123 billion tonnes of proven reserves, which may last for over 100 years. In the wake of the pandemic, sharp declines were also witnessed in handling of containers, coal and POL (Petroleum, Oil and Lubricant), among other commodities. India has 12 major ports under the control of the central government -- Deendayal (erstwhile Kandla), Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Kamarajar (earlier Ennore), V O Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia). These ports handle about 61 per cent of the country's total cargo traffic. They handled 705 MT of cargo last fiscal. Adversely impacted by the pandemic, these 12 ports witnessed a considerable decline in cargo traffic for the eighth straight month in November. Recently, Shipping Minister Mansukh Mandaviya said the cargo traffic at 12 major ports declined considerably from March 2020 onwards due to the adverse impact of the pandemic.

Thermal coal imports at major ports fall 16% to 55 MT in Apr-Dec: Body

06 Jan, 2021, 04:51PM | Business Standards

Disruptions caused by the COVID-19 pandemic continued to impact cargo movement in India with thermal coal imports at 12 major ports declining 16.43 per cent year-on-year to 55.16 million tonnes in April-December 2020 period, according to ports' body IPA. Coking coal handling dropped by 12.13 per cent to 36.96 MT during the April-December period of the current fiscal. Coal volumes at the 12 major ports declined for the ninth straight month in December 2020, as per the Indian Ports Association (IPA). These ports had handled 66 MT of thermal coal and 42 MT of coking coal in April-December period of the previous financial year. Thermal coal is the mainstay of India's energy programme as 70 per cent of power generation is dependent on the dry fuel while coking coal is used mainly for making steel. India is the third-largest producer of coal after China and the US. It has 299 billion tonnes of resources and 123 billion tonnes of proven reserves, which may last for over 100 years. In the wake of the pandemic, sharp declines were also witnessed in handling of containers, coal and POL (Petroleum, Oil and Lubricant), among other commodities. India has 12 major ports under the control of the central government -- Deendayal (erstwhile Kandla), Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Kamarajar (earlier Ennore), V O Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia). These ports handle about 61 per cent of the country's total cargo traffic. They handled 705 MT of cargo last fiscal. Adversely impacted by the pandemic, these 12 ports witnessed a considerable decline in cargo traffic for the eighth straight month in November. Recently, Shipping Minister Mansukh Mandaviya said the cargo traffic at 12 major ports declined considerably from March 2020 onwards due to the adverse impact of the pandemic. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

JBM Auto incorporates subsidiary; stock surges 12%, hits 52-week high

06 Jan, 2021, 01:22PM | Business Standards

Shares of JBM Auto advanced 12 per cent to Rs 323, also its 52-week high, on the BSE on Wednesday after the company said it has formed a new company, JBM Ecolife Mobility Private Limited, to leverage growth opportunities in the electric vehicles segment. “The Company has incorporated a wholly owned subsidiary company "JBM Ecolife Mobility Private Limited” as approved by Ministry of Corporate Affairs (“MCA”) vide certificate of incorporation dated 06 January, 2021,” JBM Auto said in a regulatory filing. JBM Ecolife Mobility belongs to automotive sector and yet to commence its business operations. The incorporation of JBM Ecolife Mobility will leverage the growth opportunities in the evolving Emobility/ Electric Vehicles Segment including e-buses etc. and will help the Company in becoming more agile and customer-focused, it said. JBM Auto is the flagship company of the $2.2 billion JBM Group. The company is the leading manufacturer of auto components, tooling and electric buses in the country. The company is engaged in the manufacturing of sheet metal components, assemblies & Sub-assemblies, Tools, Dies & Moulds. JBM is primarily a Tier-1 supplier of key systems and assemblies to the automotive OEM industry and caters services to esteemed clients that include Ashok Leyland, Bajaj, Daimler, Fiat Chrysler, Ford, Honda, Hero, JCB, Mahindra, Maruti Suzuki, Renault, Nissan, Tata, Toyota, TVS, Volvo Eicher, Volkswagen and many more. The Group has alliances with more than 15 renowned companies globally and the associations include Arcelor Mittal, Cornaglia, Dassault Systems, JFE Steel, Ogihara, Solaris Bus & Coach S.A., Sumitomo, etc. At 01:20 pm, JBM Auto was trading 8 per cent higher at Rs 311 on the BSE, as compared to 0.19 per cent decline in the S&P BSE Sensex. Around 300,000 equity shares have changed hands on the counter on the NSE and BSE, so far.

US imposes fresh sanctions on Iran as Donald Trump's term nears end

06 Jan, 2021, 01:15PM | Business Standards

WASHINGTON (Reuters) - The United States on Tuesday blacklisted a Chinese company that makes elements for steel production, 12 Iranian steel and metals makers and three foreign-based sales agents of an Iranian metals and mining holding company, seeking to deprive Iran of revenues as U.S. President Donald Trump's term winds down. The U.S. Treasury Department, in a statement, named the China-based company as Kaifeng Pingmei New Carbon Materials Technology Co Ltd. (KFCC), saying it specialized in the manufacture of carbon materials and provided thousands of metric tonnes of materials to Iranian steel companies between December 2019 and June 2020. No one at KFCC, which makes graphite electrodes, was available for comment on Wednesday. Filings show the company is owned by Henan Yicheng New Energy, which said it was unaware of the situation. Shares in Yicheng, which is ultimately controlled by China's Henan province, fell as much as 6.7% to a two-week low on Wednesday. When Yicheng was buying KFCC in 2019, it said exports - to Southeast Asia, the Middle East and Europe - accounted for about half of KFCC's core business. Among the 12 Iranian companies blacklisted are the Pasargad Steel Complex and the Gilan Steel Complex Co, both of which were designated under Executive Order 13871 for operating in the Iranian steel sector. The others are: Iran-based Middle East Mines and Mineral Industries Development Holding Co (MIDHCO), Khazar Steel Co, Vian Steel Complex, South Rouhina Steel Complex, Yazd Industrial Constructional Steel Rolling Mill, West Alborz Steel Complex, Esfarayen Industrial Complex, Bonab Steel Industry Complex, Sirjan Iranian Steel and Zarand Iranian Steel Co. The Treasury said it was also designating MIDHCO's Germany-based subsidiary GMI Projects Hamburg GmbH, its China-based World Mining Industry Co Ltd and U.K.-based GMI Projects Ltd for being owned or controlled by MIDHCO. "The Trump Administration remains committed to denying revenue flowing to the Iranian regime as it continues to sponsor terrorist groups, support oppressive regimes, and seek weapons of mass destruction," Treasury Secretary Steven Mnuchin said in the statement. Trump's term ends on Jan. 20, when Democrat President-elect Joe Biden is to be sworn in to succeed him. (Reporting by Arshad Mohammed, Daphne Psaledakis and Doina Chiacu; additional reporting by Zhang Min and Tom Daly; writing by Arshad Mohammed; editing by Doina Chiacu and Jonathan Oatis) (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

49 Indian steel, iron items to be preferred for public works

06 Jan, 2021, 10:33AM | Economic Times

(This story originally appeared in on Jan 06, 2021) NEW DELHI: The government has put in place a new mechanism to offer preference to 49 domestically manufactured iron and steel products in public contracts, including tubes, pipes, railway tracks, wires, tables and household items, tanks, containers, railway coaches and rolling stock. The move is part of the Centre’s efforts to boost domestic production, for which it had put in place public procurement norms a few years ago. Since then, the programme has moved from the ‘Make in India’ campaign to ‘Atmanirbhar Bharat’ with steel being among the sectors that have come into special focus. Steel is seen as a key input for a host of sectors, ranging from construction to building ships and railway lines & coaches. In fact, the steel ministry, which has issued the order, had earlier pushed railways to buy domestically manufactured rails at a time when the public transporter was citing the lack of capacity in the country and was arguing for imports. The latest order will extend to centrally sponsored schemes, and even local bodies executing public contracts will have to follow this if the procurement value exceeds Rs 5 lakh. The government has specified minimum domestic value addition, ranging between 20% and 50%, for various steel products. Besides, the ministry has armed itself with powers to restrict import of iron and steel from countries that do not allow Indian companies to participate in procurement due to restrictive conditions. In case such instances are proven, then it can “restrict or exclude” bidders from that country from the eligibility norms. A supplier or bidder shall be considered to be from a country if the entity is incorporated in that country, or majority shareholding or effective control of the entity is from that country. It will face restrictions even if over 50% of the value of the item being supplied has been added in that country that restricts Indian steel companies’ access, the new order said. For long, Indian companies have complained of getting a harsh treatment in government contracts in China, as well as some Asean countries and the latest clause, first inserted by the department for promotion of industry and internal trade, is seen to be a counter-offensive. While the government cannot restrict imports due to its commitments at WTO, it had not offered to bind itself by signing the public procurement agreement at the multilateral body.

Banking on Budget: Hope and reforms amid pandemic and fiscal deficit

06 Jan, 2021, 10:00AM | Business Standards

The ongoing pandemic and the resultant lockdown(s) have caused massive disruption in businesses and sent shockwaves around the world. India is no exception. The government has taken laudable steps to support and propel the economy, but a lot still needs to be done. Against this backdrop, the finance minister, in the upcoming Budget, will try to further boost the economy towards its pre-pandemic growth level. Here are some points for consideration for Budget 2021. Maintain status quo on income-tax rates Keeping in view the fiscal deficit, increasing tax rates in some shape or form is likely to be on the cards. It is pertinent to note that almost every section of the society has borne the brunt of the pandemic, be it large corporates, MSMEs, small vendors or daily wage workers. Savings and livelihoods have taken a hit, and many families are struggling to keep financially afloat. Therefore, it is desirable that the government refrain from increasing the tax rates or imposing additional surcharge and cess. Additionally, to garner resources, probably time has come for India to speed up its disinvestment process, the seeds of which have already been sown: several announcements to this effect were made by the government during the pandemic. Promoting investment and consumption To boost infrastructure development, a deduction may be allowed for individuals for investments in long-term infrastructure bonds/projects, say for Rs 1 lakh. Besides providing the necessary funds, this would give an impetus to inter-dependent sectors like cement, steel, logistics, etc, and create large-scale employment for unskilled and semi-skilled workers. To boost consumption, a one-time tax deduction of Rs 50,000 to Rs 1 lakh could be proposed for all individual taxpayers for expenditure incurred on travel and stay in India, purchase of electronics, white goods and vehicles manufactured in India. This single step would provide the much-needed impetus to the ailing hospitality industry and give a boost to ‘make in India’. Work from home/anywhere One big, forced change due to the pandemic is a shift in the mindset of the Indian society in embracing the concept of “Work from Anywhere”. Even the government itself has experienced and practised it and found to be cost-effective. Faceless assessments and appeals are a living example of this change. Consequentially, Special Economic Zones (SEZs), which are area-/rule-bound, need more flexibility. India has an edge in information technology (IT) and IT-enabled services (ITeS). Therefore, the rules relating to SEZ need relaxation to allow employers to decide on their workforce operating from offices or homes. Similarly, the infrastructure provided by employers to employees like table, chairs, computer peripherals, etc, used primarily to carry out office duties, should be outside the perquisite/salary tax net. Rationalisation of Tax Deduction at Source (TDS)/Tax Collection at Source (TCS) provisions The ever-increasing coverage of TDS/TCS provisions, coupled with interpretational challenges, create administrative burden and lead to unnecessary disputes. Hence, there is a compelling need to revamp TDS/TCS provisions and reduce the different rates of tax. The stated intent of these provisions is to garner information and eventually widen the tax net. With the advent of technology and increasing digitisation, as all the information is easily available with the tax authorities, a token rate of 1 per cent or 2 per cent should suffice. Further, there is a lot of unnecessary disputes on matching income and tax credits in different financial years. This could be remedied by introducing the concept of TDS/TCS passbook. Credits in the taxpayer’s passbook may be utilised by them anytime, in any year. This revenue-neutral measure would save time and effort of both taxpayers and tax authorities. Startups, valuations and business re-orgnaisation It would not be an exaggeration to say that no one fully understands the valuation or the real value of start-ups. One view is that it defies logic on how their valuation could go up from a few thousands to a few billions of dollars in just a couple of quarters. The counter argument to justify this, though philosophically, is that “beauty lies in the eyes of the beholder”. So, a suggestion would be to let this be decided by investors and the startups themselves. More so when no public money is involved. It is desirable to ease out the valuation norms for startups and not force them to create paperwork just to support the agreed values. Similarly, the boundaries set for any organic or inorganic re-structuring entailing transfer or issue of shares or securities often act as impediments for business re-organsation. There is a need to re-evaluate these rules and make them transaction-supportive. Conclusion Frankly, there are no easy answers on how to tackle the current economic downturn, with limited ammunition available with the government to meet demands of diverse stakeholders. Nevertheless, “hope” for a better tomorrow is an ingredient that has kept humans alive and resilient. One hopes that Budget 2021 will be a bold and reformist one, that it will unleash animal spirits in the economy, and that it will become an important milestone in India’s journey to becoming a $5-trillion economy. The author is National Managing Partner - Tax, Grant Thornton Bharat LLP. Views expressed are personal. They do not reflect the view/s of Business Standard.

Indian economy riding against the Covid wave, in good health: FinMin

05 Jan, 2021, 11:10PM | Business Standards

The finance ministry on Tuesday said the impending vaccination drive in various countries, coupled with sustained improvement in high frequency indicators, helped the economy perform better in H2FY21. This comes days ahead of the advance estimates for gross domestic product (GDP) growth for FY21. In its monthly economic review for December, the Department of Economic Affairs (DEA) said: “Approval for the long-awaited vaccine and initiation of vaccination drives in various countries has enhanced optimism on both the health and economic fronts, despite the continuing surge in global cases and potential challenge of a mutant strain.” It added that the effective management of Covid despite the festive season and onset of winter — combined with the sustained improvement in high frequency indicators and a V-shaped recovery thanks to the easing of lockdown restrictions — distinguish the Indian economy as one riding against the Covid wave. According to the DEA, India has been successful in bending the Covid curve, with falling infections, a rising recovery rate (now at 95 per cent), and one of the lowest fatality rates. The active caseload has fallen below 250,000, with India now at 10th in the number of active cases. The report added that the government was prepared to undertake a mega-vaccination drive, with a blueprint ready. However, it cautioned that while the impending vaccination was drawing closer, continued observation of “Covid-appropriate” behaviour was still crucial, in light of the incoming mutant strain and possible precaution fatigue. As regards individual sectors, the report said that agricultural remains the bright spot — thanks to a healthy 2.9 per cent year-on-year growth in rabi sowing, accelerating tractor sales, and storage in reservoirs reaching 122 per cent of the decadal average. Along with the rise in MSP (accompanied by record procurement) and accelerated wage employment generation through MGNREGS, this bodes well for rural income. This rise in rural income is reflecting in the healthy — though moderated — sales recorded by passenger vehicles, two- and three-wheelers, tractors, and a rebound in vehicle registrations for the first time since March 2020, the report noted. At the same time, growth in industrial production ran parallel to the festive fervor of October, and rose to an eight-month high led by manufacturing and electricity sector. Core industries, though, registered a slight decline in November, driven by natural gas and cement, while coal production, electricity, and fertiliser production registered growth. Steel output showed sequential growth, with consumption recording high year-on-year growth, indicating acceleration in construction. The sustained spurt in commercial and industrial activity was corroborated by continued growth in PMI manufacturing, power demand, persistent improvement in generation of e-way bills, and highway toll collection rising above pre-Covid levels. Growth momentum in rail freight traffic remains strong, thanks to the recovery in earnings. Port cargo traffic has shown YoY growth, with domestic

In Karnataka, govt offers to step in to help MSMEs get steel

05 Jan, 2021, 09:29PM | Economic Times

Bengaluru: Karnataka State Small Industries Development Corporation (KSSIDC) has offered to buy steel directly from JSW Steel in Ballari district and sell them to medium and small scale industries at the same price at which it was bought. Corporation's new managing director V Ram Prasath Manohar, in an interaction with industry body Kassia, has suggested this as an option in view of the steep hike in steel prices due to its shortage. This, Kassia members said, has severely hurt many medium, small and micro industries even as they are struggling to wriggle out of the Covid-19 crisis. Manohar has asked Kassia to gather the requirement of steel in terms of quantity and specification from the industrial units and submit it to his corporation. This will prevent a demand-supply mismatch and also help negotiate a competitive price from the steel producing companies. The KSSIDC will set up godowns in districts for storing the steel. Three godowns will be established in Peenya to enable easy lifting of the raw material by the MSMEs which are present in large numbers in the Peenya Industrial Area, Manohar said.

Nithia Capital and CarVal Investors complete acquisition of stressed assets of Uttam Group for ?2,000 crore

05 Jan, 2021, 06:22PM | Economic Times

Mumbai: UK-based stressed asset management companies, Nithia Capital and CarVal Investors, announced Tuesday that they have completed the acquisition of Uttam Galva Metallics Limited (UGML) & Uttam Value Steel Limited (UVSL) for a total purchase consideration of around Rs 2000 crore. “The acquisition of Uttam is an important and strategic step for Nithia Capital. Nithia envisions to create a consolidated steel operating platform of up to 2million tons of steel production per year in India through acquisition and organic growth,” said Jai Saraf, founder of Nithia Capital. Saraf added that he considers India to be the engine of growth for world steel for the next 20-25 years, and it is the company’s intention to actively participate in this process. The asset management company has acquired Uttam through their Singapore-based Joint Venture Holding Company, Wardha Steel Holdings Pte Ltd. Johannes Sittard, chairman and founding member of Nithia Capital, has been appointed Chairman of Wardha Steel and Jai saraf, founder and chief executive officer of Nithia Capital, has been appointed the chairman of newly acquired Uttam Galva Metallics and Uttam Value Steels. “Our aim always is to identify unique value investment opportunities across the globe where we can leverage our proprietary research and our investment experience across cycles and geographies to create value for all the stakeholders,” said Nimrod Wei, managing director, CarVal Investors Uttam Value Steels is an integrated steelmaking company that produces hot rolled coils, cold rolled coils, galvanised coils and sheets and colour-coated products, among other products, with a total capacity of 1 million tonnes. Uttam Galva Metallics is an unlisted entity that manufactures hot metal/pig iron and has an iron making capacity of 0.60 MTPA at Wardha, Maharashtra. It is a major supplier of hot metal to Uttam Value Steels Ltd. The facilities are located in the centre of India near Nagpur with captive railway siding, enabling reach to all major markets countrywide and proximity to Iron ore, the company said in a statement. “The plan of Nithia Capital and CarVal is to increase Uttam’s primary steel making capacity by 50% in the immediate future by completing partially completed projects in a timely and cost effective manner,” the company said in a joint statement. In May 2019, a lenders’ consortium led by SBI had initiated insolvency proceedings against two distressed entities of Uttam Galva Steels, which were recommended for corrective action by the Reserve Bank of India in its second list of large defaulters. The National Company Law Tribunal ( NCLT ) then approved the CarVal Investors and Nithia Capital Resources Advisors LLP-led consortium’s resolution plan for acquisition of the assets. On May 6th of 2020, a monitoring agency was formed, in which successful resolution applicants Nithia and CarVal along with two members from the bank and one independent member were made responsible for operating the plants. As per NCLT’s order, Nithia and CarVal were to pay upfront and a contingent payment of ₹1,078 crore for Uttam Value Steels and another ₹1,576 crore for Uttam Metallics. Nithia, which specialises in turning around stressed assets in various sectors, had also looked at major assets like Essar, Bhushan and Monnet Ispat, before larger steel players started showing interest.

Realty firms may witness margin shrink by 4-6% due to steel price rise

05 Jan, 2021, 05:09PM | Business Standards

Surge in prices of steel products that are used in the construction sector has an adverse impact on the real estate companies as these entities are now not in a position to pass the additional cost on their buyers and may witness shirking of margin by 4-6 per cent, realtors said on Tuesday. The steel prices have increased at a time when demand for property is slowly getting back on the track with the government measures and low interest-rate regime, they said. Price of construction steel or TMT bars had recently touched Rs 45,000 a tonne in some markets, which was at least 30-40 per cent higher than the rate in the pre-COVID period. "The steel price rise is hurting the real estate companies as the property prices are under pressure. The additional cost will result in a shrink of gross margin by 5-6 per cent," Bengal Peerless Housing Development Company CEO Ketan Sengupta told PTI. Real estate industry body Credai Bengal president Nandu Belani said the spurt in steel prices will reduce the margin by 4-5 per cent, which is quite high for the sector. Presently, only the residential sector has seen a revival of demand, while the commercial and industrial segment is still reeling under pressure, and the high cost will discourage builders to delay the launch of new projects, the officials said. "We are not planning to launch new projects due to market condition and will review the situation by the end of the fiscal and then take a call," Sengupta added.

Chinese cities reportedly go dark as country faces shortage of coal, a major Australian export

05 Jan, 2021, 09:14AM | CNBC

View on the Bund, a waterfront area in central Shanghai, which runs along the western bank of the Huangpu River.FrÃ©dÃ©ric Soltan | Corbis News | Getty Images SINGAPORE â Several major Chinese cities have reportedly gone dark as authorities limit power usage, citing a shortage of coal.Analysts said prices of the commodity in the country have shot up due to the reported crunch. The reports also follow rising trade tensions between Beijing and Canberra, leading some analysts to tie the coal shortages and blackouts to the unofficial ban on Australian coal.Relations between the two nations soured last year after Australia supported an international inquiryÂ into China's handling of the coronavirus pandemic. Coal is just one in a growing list of Australian goods that China is targeting, as a result of their escalating row.Last year, China told its power plants to limit the amount of coal imports from other countries to keep a lid on prices.Beijing reportedly lifted those restrictions later, but didn't remove curbs on coal imports from Australia. China also reportedly gave state-owned utilities and steel mills verbal notice to stop importing Australian coal. VIDEO3:0303:03Australia-China relations have hit 'rock bottom': Orient Capital ResearchStreet Signs Asia China is the world's largest coal consumer and its greatest source of coal imports was Australia. Coal is the energy source that the world's second largest economy predominantly relies on â even as it has committed to a renewable energy plan. China is the second-biggest buyer of Australia's thermal coal, a variety used to generate power. Coal restrictions leading to blackouts? Prices of coal in China have shot up as a result of the shortage and research firm Wood Mackenzie predicts they will remain high during the peak winter demand period."China's thermal coal market is in chaos, with prices rocketing after daily price index releases were suspended on 3 December," research firm Wood Mackenzie said.The report said power rationing "has already commenced" in Hunan and Zhejiang provinces due to the shortages, and there is "little scope" for increased production from Chinese producers.Concerns about the availability of electricity for ordinary Chinese spiked in December. A widely shared online article listed planned blackouts by the Shanghai State Grid for different parts of Shanghai on Dec. 22.Other regions have also restricted electricity use, the Shanghai State Grid added.Some cities, primarily those in southern China, have imposed limits on off-peak electricity usage for factories since mid-December, according to a report last week by the South China Morning Post. In the tech hub of Shenzhen, there have been week-long blackouts in different areas, the report said.It was not immediately clear whether any of the blackouts actually happened, or to what extent.Senior economist Marcel Thieliant at research firm Capital Economics said the blackouts are "underlining that China is willing to go to great lengths to harm Australia." VIDEO2:1602:16Coal trade is the biggest long-term risk to dry bulk shipping: AnalystStreet Signs Asia Chinese authorities have not tied the blackouts to tensions with Australia or the coal restrictions. They instead attribute the restrictions on power use to exceptionally high demand and routine maintenance.China has used 11% more electricity this December than last year, the National Development and Reform Commission said in December. The department is the country's top economic planning body.The commission said the rapid economic recovery, cold winter weather and limited supply have prompted some regions to restrict power use. China's November coal imports fell 44% from last year, according to data from the Commonwealth Bank of Australia.As temperatures are set to remain low, the commission said it expects national electricity demand to rise. A shift in coal flows China is now turning to alternative sources for coal.Analysts noted that could lead to a shift in trade flows as Australia's coal, one of the country's largest exports, becomes the latest casualty in the trade fight. But experts say the developments will have limited impact on overall demand for Australian coal as it will simply find other markets."Trade flows will shift, as Australian coals look for new homes and higher volumes of non-Australia coking coals move to China," said Wood Mackenzie in a recent note. Coking coals are a variety of coal used to produce steel.Correspondingly, shifts in other trade flows of coal will occur, with China's import data showing increased coal imports from Mongolia, Canada and Russia, the research firm said.Last month, China signed a deal with Indonesia to buy $1.5 billion worth of thermal coal.Still, China is short of coal, said Wood Mackenzie, with some mills surviving on stockpiles and Mongolian coal prices increasing as the Chinese switch over."We suspect that China will continueÂ (and probably intensify) its long-running efforts to reduce reliance on imported coal more generally in the coming years, though it will perhaps take some time to bear fruit," according to a report by Capital Economics.Next year, there will still be great pressure on China's three main coal-producing regions to ensure supply, a national coal industry association said in a Dec. 1 report in the Economic Observer, a Chinese financial news outlet.But factors such as China's aim for peak carbon emissions in 10 years give companies less incentive to ramp up production.

Ultra-low interest rates to stay: A 2021 guide for global central banks

05 Jan, 2021, 08:02AM | Business Standards

Central banks are set to spend 2021 maintaining their ultra-easy monetary policies even with the global economy expected to accelerate away from last year’s coronavirus-inflicted recession. In Bloomberg’s quarterly review of monetary policy that covers 90% of the world economy, no major western central bank is expected to hike interest rates this year. The Bloomberg Central Bank Outlook China, India, Russia and Mexico are among those predicted to cut their benchmarks even further. Only Argentina and Nigeria are forecast to raise rates. The assumption is central bankers will want to guarantee the recovery is safe before they even start to consider tightening policy. Continued uncertainty over the path of the virus along with elevated unemployment and weak inflation are the main reasons for waiting. And even if inflation makes a comeback this year, central banks will likely try to look through it. What Bloomberg Economics Says: “In the Great Financial Crisis, central banks were the only show in town. In the Covid-19 recession, they are warm up acts for ministries of finance delivering massive fiscal stimulus and healthcare systems delivering the vaccine. Looking forward, the main challenge will be exiting extreme stimulus without disrupting financial stability.”--Tom Orlik Here is Bloomberg’ quarterly guide to 23 of the world’s top central banks: GROUP OF SEVEN U.S. Federal Reserve Current federal funds rate (upper bound): 0.25% Bloomberg Economics’ forecast for end of 2021: 0.25% Fed Chairman Jerome Powell Holds News Conference Following FOMC Rate Decision Jerome Powell The Federal Reserve enters 2021 with the pedal to the metal on monetary policy to help the U.S. economy recover from the coronavirus pandemic -- and is in no hurry to take its foot off the gas. Even as Chair Jerome Powell says he can see the “light at the end of the tunnel” thanks to vaccines that should be broadly available by mid-year, he stressed there would be no hasty withdrawal of support. Officials have signaled they’ll hold interest rates near zero through at least 2023, and promised to keep buying bonds at a monthly pace of at least $120 billion until “substantial further progress” had been made toward the targets for maximum employment and 2% inflation. “We are committed to using our full range of tools to support the U.S. economy to achieve our goals,” Powell said in December after the Fed strengthened its bond-buying guidance. “We will continue to use our tools to support the economy for as long as it takes until the job is well and truly done. No one should doubt that.” Federal Reserve Board building on Constitution Avenue is pictured in Washington. Photo: Reuters What Bloomberg Economics Says: “The Fed’s efforts to adopt more qualitative guidance on interest rate policy and, more recently, asset purchases should not be construed as evidence policy makers are moving toward reducing accommodation. Rather this is a dovish-minded endeavor intended to avoid a repeat of the 2013 taper tantrum. The economy is poised for a robust recovery in 2021, particularly in the latter half, but Bloomberg Economics does not expect quantitative easing to be scaled back until 2022, leaving interest rate liftoff closer to 2025.” --Carl Riccadonna European Central Bank Current deposit rate: -0.5% Bloomberg Economics’ forecast for end of 2021: -0.5% European Central Bank President Christine Lagarde Announces First Rate Decision The ECB increased its emergency bond-buying program to 1.85 trillion euros ($2.3 trillion) in December and extended it through March 2022. The 500 billion-euro boost won broad backing in the Governing Council only because President Christine Lagarde conceded that not all of that amount necessarily needed to be spent. Whether policy makers will get away with fewer purchases will depend chiefly on the evolution of the pandemic. While the start of vaccinations brightens the economic outlook, surging infections and a hard lockdown in Germany, the region’s largest economy, are weighing on short-term prospects. Economists and investors are also looking out for signals on the outcome of the ECB’s ongoing strategic review. Policy makers are discussing a change to the central bank’s inflation goal and how to incorporate climate risks, with results expected after the summer break. What Bloomberg Economics Says: “The ECB’s primary tool for fighting the economic devastation reaped by Covid-19 is the Pandemic Emergency Purchase Programme. Its firepower now stands at 1.85 trillion euros. We expect buying through it to continue until the end of 2021 at a speed of about 20 billion euros per month. In addition, the Governing Council will continue to provide liquidity through its targeted longer-term refinancing operations at an interest rate that could be as low as -1%.” --David Powell Christina Legarde Bank of Japan Current policy-rate balance: -0.1% Bloomberg Economics’ forecast for end of 2021: -0.1% Bank of Japan Governor Haruhiko Kuroda News Conference As Central Bank Ramps Up Asset Buying, Holds Rates Steady After Fed Cut The Bank of Japan is expected to keep its main rates unchanged during the year after fine tuning its stimulus in 2020. The central bank has called for a review as it seeks ways to reduce the side effects and improve the effectiveness of its yield curve control policy. The need to make the framework more sustainable over the longer run reflects the lengthening time span for achieving its inflation goal as prices fell at the fastest pace in a decade toward the end of 2019. The trajectory of the pandemic remains the biggest uncertainty. But presuming widespread vaccination in the first part of the year and the Olympic Games go ahead, BOJ watchers will be closely watching to see if the central bank will be able to wind down its Covid-19 support measures around September. What Bloomberg Economics Says: “The BOJ needs to maintain its policy support for the corporate sector to keep risks to the economy in check. This raises the prospect that it will also extend the temporary boosts in ceilings on its purchases of ETFs and REITs beyond the March 2021 expiry. The decision to do that will probably come at its next policy board meeting in January. The policy review in March may adjust flexibility and quality of ETF purchases.”--Yuki Masujima Bank of England Current bank rate: 0.1% Bloomberg Economics’ forecast for end of 2021: 0.1% Bank of England News Conference On Coronavirus Rate Cut Bank of England Governor Andrew Bailey insists the BOE has plenty in its armory, including interest-rate cuts and the ability to accelerate or increase the institution’s bond-buying program. He may become the first-ever BOE governor to take rates below zero. Much depends on how the U.K. economy, already ravaged by the coronavirus, copes with life outside the European Union after the Brexit transition period ended on Dec. 31. Bailey also moves into the second year of his governorship with a cloud over his head, after being heavily criticized over a scandal during his previous role as head of the U.K.’s financial watchdog. He publicly apologized in December for the failure to fix the problems at the regulator early enough. What Bloomberg Economics Says: “The BOE has sounded cautiously optimistic about the outlook. Our base case is that the central bank stays on hold, though that doesn’t mean it will be a dull year for BOE watchers. The central bank is likely to bring negative rates formally into its toolkit by reducing its estimate of lower bound. That will give the QE planned for 2021 more bang for its buck.”--Dan Hanson Bank of Canada Current overnight lending rate: 0.25% Bloomberg Economics’ forecast for end of 2021: 0.25% The Bank of Canada won’t raise its overnight policy interest rate this year even if the nation’s economy recovers. Governor Tiff Macklem has pledged to keep it at the current 0.25% level until excess capacity is fully absorbed, something the central bank last projected won’t happen until 2023. It will update its forecasts later this month. What will be in play in 2021 is the mountain of government debt the central bank has been buying. It’s expected to start scaling back purchases as a first step in stimulus withdrawal. The program was one of the most aggressive anywhere in 2020, and there are worries the Bank of Canada will start distorting the bond market at the current pace of purchases. Officials appear keen to put it in check. For the same reason, don’t expect the Ottawa-based central bank to top up bond purchases as a first line of defense if things unexpectedly deteriorate. If more stimulus is needed, Macklem will first look to other tools -- like further cuts in the policy rate or a yield curve control framework. What Bloomberg Economics Says: “The Bank of Canada will monitor financial conditions as the economy enters a rougher stretch this winter. Yet unless activity restrictions drive a market shock or vaccine rollout disappoints, the BoC is more likely to calibrate asset purchases lower around mid-2021, versus add stimulus. If substantial fiscal aid lifts growth by more than expected into the summer, the BoC could mull a change to forward guidance on a rate hold -- currently ‘into 2023’ -- late in the year.”--Andrew Husby BRICS CENTRAL BANKS People’s Bank of China Current 1-year best lending rate: 3.85% Bloomberg Economics’ forecast for end of 2021: 3.75% The PBOC cut the rates at which it lends to banks to historic lows in response to the pandemic, with one-year loan rates reduced from 3.25% to 2.95%. It also used quantitative tools, such as lowering the amount of money banks have to keep in reserve and providing 1.8 trillion yuan of “re-lending” funds for banks to pass on to small and medium-sized businesses. Yet the pace of expansion in the PBOC balance sheet was modest compared to other major central banks. That was largely because, as the regulator of a state-dominated banking system, it could order banks to increase loans and sacrifice profits in order to lower corporate financing costs. As a result, China’s credit growth soared as well as its debt-to-GDP ratio. China probably was the only major economy to grow in 2020 and the central bank has indicated it wants to bring credit expansion in line with nominal economic growth in 2021. That would mean a moderation in the pace of new credit compared with 2020, possibly by injecting less cash into the financial system. What Bloomberg Economics Says: “China’s growth looks set to rebound sharply in early 2021 before a slowdown in 2H toward the long-term trajectory. The PBOC is set to start tapering stimulus as it sets about normalizing policy. Its focus is likely be on delivering targeted liquidity -- using targeted required reserve ratio cuts, targeted medium-term lending facilities, and central bank re-lending. A 10 bp cut in the one-year Loan Prime Rate to cushion the 2H slowdown is possible.”--David Qu Reserve Bank of India Current RBI repurchase rate: 4% Bloomberg Economics’ forecast for end of 2021: 3% RBI Governor Shaktikanta Das News Conference As India Keeps Rate Steady Amid Uncertain Inflation Outlook Governor Shaktikanta Das has assured investors monetary policy will stay accommodative through much of 2021, but that will be easier said than done. India’s central bank faces a deluge of foreign inflows, sticky inflation and uneven growth prospects. The RBI, which cut interest rates by 115 basis points in 2020 to support an economy going through its worst downturn, has been on pause for the past three meetings as growth in consumer prices stayed well above its 2%-6% target range. The biggest challenge will be checking a glut of liquidity that threatens a spike in inflation as demand for goods and services revive. A host of unconventional remedies include setting up a new facility to absorb surplus liquidity, raising banks’ cash reserve ratios and holding reverse repo auctions at higher rates. It will need to walk a fine line, as those moves also risk spooking debt markets and eroding demand for sovereign bonds, something the central bank would want to avoid since its the investment manager to the government. Reserve Bank of India (RBI) Governor Shaktikanta Das during an interview. What Bloomberg Economics Says: “We expect inflation to recede below the Reserve Bank of India’s 6% upper tolerance level in December to allow an extremely dovish monetary policy committee to resume easing in 2021. We expect the RBI to lower the repo rate by 25 bps to 3.75% at the February review and to 3% by August 2021. With liquidity a bigger inflationary threat, we expect RBI’s accommodative stance to switch to slashing borrowing costs this year.”--Abhishek Gupta An Extremely Dovish MPC Lowers Bar for Further Easing Central Bank of Brazil Current Selic target rate: 2% Bloomberg Economics’ forecast for end of 2021: 2% Brazil's Central Bank President Roberto Campos Neto Holds Press Conference Brazil’s central bank has indicated it may soon give up on its pledge to keep interest rates unchanged for the foreseeable future as inflation expectations rise toward the 2021 and 2022 targets. The benchmark Selic has stood at an all-time low 2% since August, when the bank introduced its forward guidance and conditioned it to measures to keep public spending in check after a record budget deficit in 2020. While policy makers have stressed that the removal of the guidance won’t automatically translate into rate hikes, economists surveyed by the central bank forecast borrowing costs will start rising in August to end the year at 3%. What Bloomberg Economics Says: “To a large extent, BCB’s next steps are tied to decisions on the fiscal policy. If markets perceive that President Bolsonaro is committed to fiscal responsibility, the real -- which appears undervalued -- could strengthen and help reverse some of the recent inflationary pressures. This could allow the BCB to hold rates through year-end, as in our base-case scenario. If instead he insists on popularity-boosting measures the country cannot afford, the rise in fiscal risk could force the BCB not only to start a premature monetary normalization, but perhaps even a rate shock.”--Adriana Dupita Bank of Russia Current key rate: 4.25% Bloomberg Economics’ forecast for end of 2021: 4% Russia's Central Bank Interest Rate Decision Russia’s central bank paused its easing cycle in September after a plunge in the ruble contributed to a surprise inflation uptick. By December, Governor Elvira Nabiullina was warning that continued price rises could limit the outlook for any further monetary easing. Inflation has become a political issue after incomes slumped in 2020 and President Vladimir Putin has ordered the government to take urgent measures to reduce prices of key staples. Nabiullina says she doesn’t think they’ll have much impact. Meanwhile reports of Russia’s involvement in a U.S. hacking scandal could increase sanctions risk, further weakening the ruble. Russia’s inflation rate climbed above the central bank’s 4% target in November and may near 5% by the end of the year, according to Nabiullina. What Bloomberg Economics Says: “The Bank of Russia is firmly on hold, in the face of a spike in inflation that may not be as temporary as it seems. Policy makers will need at least a few months of data before they can regain confidence in the outlook. Ultimately weak demand is likely to take over as the main driver of price pressure. Another round of easing is more likely than premature tightening in 2021.”--Scott Johnson South African Reserve Bank Current repo average rate: 3.5% Bloomberg Economics’ forecast for end of 2021: 3.5% Opening Day Of The World Economic Forum (WEF) 2020 South Africa’s monetary policy committee halted its cutting cycle after easing by 275 basis points since March, when the country’s first virus case was confirmed. Its projection model now indicates two increases of 25 basis points each in the second half of 2021. However, the MPC continues to emphasize future decisions will be data-dependent. That means any significant shocks to the economy from the second wave of the pandemic could see it push out the hikes and hold the benchmark rate, especially if it trims its inflation forecast further. Uncertainties over the outlook for the economy and price growth also mean the panel hasn’t “closed the door” on rate cuts, Deputy Governor Fundi Tshazibana said in November. The central bank has said it would continue buying government bonds in the secondary market if more dysfunctionality arises and the risks posed by the pandemic means it’s too early to talk about unwinding its holdings. What Bloomberg Economics Says: “The South African Reserve Bank has cut rates by 275bps in response to the Covid-19 crisis and sees this as enough for now. It is now looking to a gradual normalization of rates, but has kept the door open for more easing. We think a choppy recovery will force the SARB to push back the two rate hikes it has signaled for 2H21, with rates staying on hold through 2021.”--Boingotlo Gasealahwe MINT CENTRAL BANKS Banco de Mexico Current overnight rate: 4.25% Bloomberg Economics’ forecast for end of 2021: 3% Key Speakers At The Central Bank Conference Mexico’s central bank in November put its record monetary easing cycle on pause, saying it needed to reassess an inflationary spike that saw price increases speeding past the 4% target ceiling between August and October. While inflation subsequently slowed down significantly, the bank still left the benchmark interest rate unchanged at 4.25% in December arguing it needed more time to see the trend consolidating. The first meeting of the year, scheduled for Feb. 11, will be key to see if Banxico resumes its rate cuts: Galia Borja, most recently the Finance Ministry’s treasurer, replaces Javier Guzman, one of the board’s most hawkish members, and this may tilt the balance of forces at the central bank after a split 3-2 vote in the last decision of 2020. Despite recent reductions, Mexico still has one of the G-20’s highest real interest rates -- meaning borrowing costs adjusted for inflation. What Bloomberg Economics Says: “We expect the central bank to reduce the monetary policy interest rate to 3.0% this year from 4.25% in 2020. Abating transitory shocks and weak domestic demand point to lower inflation that would allow resuming the easing cycle. High unemployment and favorable external financial conditions should also contribute. The central bank will has a more dovish bias starting this year as President Andres Manuel Lopez Obrador has appointed three board members, out of five.”--Felipe Hernandez Bank Indonesia Current 7-day reverse repo rate: 4% Bloomberg Economics’ forecast for end of 2021: 3.5% Indonesia Keeps Key Rate Unchanged as Focus Shifts to Growth Bank Indonesia has been among Asia’s most aggressive central banks in slashing interest rates, and has pledged to keep monetary policy accommodative in 2021 for as long as inflation allows. Foreign fund inflows spurred by optimism over a vaccine should lift the rupiah and give the central bank room to maneuver if Southeast Asia’s worst Covid-19 outbreak weighs further on economic recovery prospects. Talk of increased government oversight of Bank Indonesia has quieted down but not disappeared entirely, as President Joko Widodo renewed calls for the central bank to do more to support the economy. Governor Perry Warjiyo has said he’s ready to use all the policy tools at his disposal, especially as bank lending rates have remained stubbornly high despite five rate cuts in 2020. While Bank Indonesia will no longer directly fund the government’s budget deficit, it will remain a standby buyer of government securities. What Bloomberg Economics Says: “Bank Indonesia paused its rate cut cycle in December and didn’t signal more cuts. Even so, we expect the combination of rupiah gains from capital inflows and still-sluggish domestic demand to provide scope for another 50 bps of easing in 2021. Though monetary transmission is weak, more cuts would rein in government borrowing costs as its debt balloons. The central bank’s purchases of government bonds will likely continue, but at a much more moderate pace.”--Tamara Henderson Central Bank of Turkey Current 1-week repo rate: 17% Forecast for end of 2021: 13% Turkish Finance Minister Naci Agbal Interview Turkey’s new central bank governor is spearheading a boost to the monetary authority’s credibility with market-friendly messages and back-to-back increases to the key funding rate. Naci Agbal’s first step as governor after his abrupt appointment in November was ending a complex rate-corridor structure criticized for its use of multiple rates and lack of transparency, moving Turkey to a more orthodox framework where all funding is provided through the benchmark. He also delivered two meaty interest-rate hikes, bolstering investor confidence in Turkish assets. The governor, who inherited double-digit inflation, a low real-interest rate, a weak lira and depleted foreign-currency reserves after his predecessor spurred a period of rapid credit growth, pledged to keep the policy tight and prioritize price stability in 2021. So far, investors and economists have welcomed Agbal’s stewardship of monetary policy. What Bloomberg Economics Says: “A return to orthodoxy under a new governor saw the central bank of Turkey more than doubling interest rates since July. Reversing this tightening will be slow and gradual. Before cutting rates, the bank will want to see a moderation in credit growth, an improvement in the current account, greater lira stability and slower inflation. We don’t expect these conditions to be met until 3Q21.”--Ziad Daoud Central Bank of Nigeria Current central bank rate: 11.5% Bloomberg Economics’ forecast for end of 2021: 13.5% Key Speakers At The Nigeria Capital Markets And Banking Forum The Nigerian central bank is under pressure to aid the recovery of an economy that’s in recession, even after 200 basis points of cuts in 2020. However, inflation at a 34-month high and a currency that had to be devalued three times in 2020 complicates the outlook for monetary policy. Nigeria’s system of multiple exchange rates and curbs on dollar access have been key drivers of inflation and a drag on economic growth, with importers resorting to the more expensive parallel market to get hard currency. Central Bank Governor Godwin Emefiele and Finance Minister Zainab Ahmed have said they would seek a more flexible and unified naira. Still, there is no timeline for this yet and the IMF and World Bank said in December authorities should speed up these reforms to support the economy. Inflation will remain at double digits if the central bank doesn’t reform monetary policy to focus on price stability, and easing is unlikely to give any additional boost to output, according to the IMF. Godwin Emefiele What Bloomberg Economics Says: “Nigeria’s inflation rate continues to surge, and has been stuck above the central bank target range for the past five years. However, the Central Bank of Nigeria has overlooked the recent uptick, choosing instead to support the economy with a 200 basis point interest rate cut. We expect it to hike rates again this year, when the recovery has gathered pace and the policy focus shifts back to inflation.”--Boingotlo Gasealahwe OTHER G-20 CENTRAL BANKS Bank of Korea Current base rate: 0.5% Bloomberg Economics’ forecast for end of 2021: 0.5% Bank Of Korea Governor Lee Ju Yeol At Rate Decision Meeting The Bank of Korea is likely to stand pat on its benchmark interest rate and continue to dial down talk of unconventional measures such as full-scale QE as long as the economy continues to recover with the help of improving exports. The recent resurgence of the coronavirus is the key threat to the budding economic rebound that the central bank has helped to create with record-low rates, government bond purchases, cheap loans and other measures. The South Korean central bank faces other challenges heading into 2021, too. Political pressure is growing on the bank to adopt employment as another official mandate, while criticism over ultra-low borrowing costs fueling housing prices across the country is limiting its room for policy maneuver. A strengthening won that could weigh on South Korea’s exporters is another growing concern. The majority of economists surveyed by Bloomberg see the bank holding its policy rate at the current level for another year and a half. What Bloomberg Economics Says: “The Bank of Korea has likely reached the end of its easing cycle. While uncertainties surrounding the pandemic remain high, South Korea’s economy is poised to rebound in 2021 and the central bank remains concerned about growing financial risks. The BOK has cautioned that the government’s large borrowing plans could lead to bond market imbalances, but we think it will continue using ad-hoc bond purchases to contain yields rather than shift to QE.”--Justin Jimenez Lee Ju-yeol Reserve Bank of Australia Current cash rate target: 0.1% Bloomberg Economics’ forecast for end of 2021: 0.1% Reserve Bank of Australia Governor Philip Lowe Address at CEDA Annual Dinner With the local economy recovering at a faster pace than expected, the RBA isn’t seen adding to stimulus over the coming year. That switches the focus to the RBA’s QE program and whether the bank will extend it beyond its current six-month run. The bank introduced the QE to keep a lid on a relentless appreciation of the Australian dollar. The rise in the currency partly stems from an increase in longer-term yields above those of major international counterparts. As the RBA’s variant of yield-curve control focuses on three-year debt, the QE targets 5-10 year securities outside the YCC framework. If the Aussie dollar keeps trying to edge up as the labor market heals, iron ore prices stay high and consumers spend, the RBA will likely stick with the buying of longer-dated bonds beyond April. What Bloomberg Economics Says: “The Reserve Bank of Australia took the plunge into asset purchases and yield curve control in 2020. In 2021, it’s likely to fine tune policy, with further easing via adjustments to bond buying rather a lower cash rate. One aim will be to curb currency appreciation -- at the cost of fueling asset inflation. The reinstatement of macro-prudential policy restraints may complement efforts directed at boosting domestic demand and absorbing labor market slack.”--James McIntyre Central Bank of Argentina Current rate floor: 38% Bloomberg Economics’ forecast for end of 2021: 42% Argentina Central Bank Seeks to Cut Rates and Slow Inflation Argentina’s central bank has taken an incipient turn to more orthodox policies in a bid to reduce volatility in the peso. After a massive rate-cutting cycle for most of 2020, policy makers slightly raised the benchmark in November to provide incentive to savings and investment in pesos. They have also marginally relaxed some of their strict foreign exchange controls, allowing currency exchange stores to partially reopen for business. Future monetary policy will likely become clearer when Argentina reaches an understanding for a new program with the International Monetary Fund. Negotiations are ongoing and the government aims to close a deal by March or April. Until then, the central bank’s reserves, now at a four-year low, will remain a major source of concern -- and the reason why policy makers maintain strict controls, including two separate taxes on dollar purchases. What Bloomberg Economics Says: “Tight capital controls allowed the BCRA to maintain the combo of an overvalued currency and negative real interest rates over 2020. We find it unlikely that the BCRA will be able to sustain a similar line of policy in 2021, under an IMF agreement, even if capital controls remain in place over the year. We believe it is more likely that the BCRA raises the policy rate to bring real rates back to positive territory, at the same time it attempts to gradually weaken the peso in real terms. A pre-condition for that is a fiscal adjustment that reduces the reliance on money issuance to fund the public deficit.”--Adriana Dupita G-10 CURRENCIES AND SMALL EAST EUROPE ECONOMIES Swiss National Bank Current Libor target rate: -0.75% Economist media forecast for end of 2021: -0.75% Swiss National Bank Keeps Rates On Hold The SNB is still pursuing its policy of negative interest rates and currency-market interventions, despite having been censured by the U.S. for the practice. In light of the small local bond market, the strategy is “the most effective” available, SNB President Thomas Jordan said in mid December. The economy suffered its biggest in contraction in decades in 2020 due to the pandemic, and the SNB forecasts that inflation will be stuck around zero over the next two years. Sveriges Riksbank Current repo rate: 0% Bloomberg Economics’ forecast for end of 2021: 0% 2019 Monetary and Financial Policy Conference Sweden’s central bank remains focused on buying assets to keep rates low and stabilize markets, while the minutes of its latest meeting show the prospect of an interest rate cut from zero was again raised by some board members as a way to restore confidence in the Riksbank’s inflation target. The central bank surprised markets in November with a bigger-than-expected expansion of its asset purchase program, to 700 billion kronor ($82 billion). It kept rates unchanged, as expected, but said there’s room to deliver more stimulus between scheduled meetings. Governor Stefan Ingves has signaled he prefers QE to rate cuts. He said last month that the size of the Riksbank’s balance sheet can be made “much larger if need be” as it’s small in relation to GDP compared to that of the ECB and the Fed. While long-term inflation expectations are holding up for now, policy makers have voiced concerns over erosion of confidence in the bank’s ability to fuel price increases. In recent months, inflation has edged closer to zero and further away from the central bank’s target of 2%. What Bloomberg Economics Says: “Sweden will suffer a smaller economic hit than most from Covid-19 and our base-case is that the Riksbank keeps policy unchanged in 2021. Still, Governor Stefan Ingves is more likely to cut than to raise rates. Inflation has on average been below target in the past five years, a stronger krona looks set to cap import prices and wage talks held under the shadow of the virus produced only modest wage increases until 2023.” --Johanna Jeansson Norges Bank Current deposit rate: 0% Bloomberg Economics’ forecast for end of 2021: 0% Lone Hawk Norges Bank Stuns Markets With Signal on Rates Norway’s central bank has been pegged as the first among holders of the world’s major currencies to tighten policy as the economy recovers, with its latest forecast implying an interest rate increase from the first half of 2022. Governor Oystein Olsen still signaled in December that significant uncertainty remains, as the pandemic tightens its grip across Europe, warranting no rate increases from the historic low until “there are clear signs that economic conditions are normalizing.” Norway faces a milder economic hit from the pandemic than most other countries, thanks in part to an effective lockdown strategy and billions of dollars in government support packages backed by the country’s $1.2 trillion sovereign wealth fund. The central bank has never cut rates below zero or experimented with QE. What Bloomberg Economics Says: “Abundant fiscal support to households and businesses is helping Norway bounce back from the dual hit of the pandemic and a sharp drop in oil-prices. We expect this will allow Norges Bank -- which takes both inflation and financial stability into account -- to lift rates in early 2022. With house prices and credit growth on the rise, if anything the lift-off will come sooner.”--Johanna Jeansson Reserve Bank of New Zealand Current cash rate: 0.25% Bloomberg Economics’ forecast for end of 2021: 0% RBNZ Governor Adrian Orr Says Unconventional Options Include Negative Rates The New Zealand economy’s V-shaped rebound from recession, aided by the country’s successful containment of Covid-19, has seen investors remove all bets that the RBNZ will cut its cash rate into negative territory in 2021. Instead, the focus has shifted to the booming property market, which has shone a light on the potential pitfalls of record-low borrowing costs. While Governor Adrian Orr has rebuffed a suggestion from the finance minister that house prices be included in the RBNZ’s monetary remit, the political heat may make it harder to loosen policy any further. The central bank remains concerned about global downside risks, but with the local economy performing better than anyone expected, attention may soon turn to when the RBNZ could begin to taper its bond purchases. What Bloomberg Economics Says: “Rising house prices are set to complicate, but not totally constrain, the Reserve Bank of New Zealand’s options to deliver further easing over 2021. Negative rates are a risk but a low one. More likely -- further QE. We see the RBNZ boosting the Funding for Lending program and its asset purchases. It’s also likely to get tougher on the macro-prudential front given the hot property market and concerns around high-risk lending.”--James McIntyre National Bank of Poland Current cash rate: 0.1% Economist media forecast for end of 2021: 0.1% Poland's Central Bank Governor Adam Glapinski News Conference As Rates Held And Hawks Sidelined Poland’s central bank probably will hold its benchmark interest rate at a record-low of 0.1% as QE, rather than negative interest rates, remains the preferred tool to buoy the economy. The bank reduced the key rate by 140 basis points between March and May as well as launching an open-ended buying of government-guaranteed bonds to help finance support programs for businesses. While a 7.7% quarterly rebound in GDP between July and September helped offset much of the slump that resulted from the spring Covid-19 lockdown, Poland’s economy remains on track for its worst year since communism collapsed three decades ago. Czech National Bank Current cash rate: 0.25% Economist media forecast for end of 2021: 0.25% Czech Central Bank Rates Decision The Czech central bank is one of few in the world flagging higher borrowing costs to keep a lid on inflation once growth resumes. Its forecast implies three hikes in 2021, starting in the second quarter, but Governor Jiri Rusnok has said the tightening will probably start later. The bank says the full impact of one of the worst Covid-19 outbreaks in Europe will only be clear once programs to protect jobs and business expire. The monetary outlook has become more complicated after the government proposed a record income-tax cut, which may further boost inflation. “The need to consider some future, gradual interest-rate increases toward normal levels has slightly increased,” Rusnok said in December. “On the other hand, anti-inflationary risks are also significant.” (--With assistance from Ramsey Al-Rikabi, Theophilos Argitis, Dorota Bartyzel, Catherine Bosley, Walter Brandimarte, Matthew Brockett, Alister Bull, Toru Fujioka, Patrick Gillespie, Michael Heath, Harumi Ichikura, Paul Jackson, Claire Jiao, Sam Kim, Cagan Koc, Mario Sergio Lima, Peter Laca, Prinesha Naidoo, Jana Randow, Niclas Rolander, Arran Scott, Nasreen Seria, Alonso Soto, Brian Swint, Gina Turner, Ott Ummelas and Rene Vollgraaff.)

Pradhan flags off equipment for Indian Oil's MEG Plant at Paradip

05 Jan, 2021, 06:30AM | Business Standards

Union Petroleum Minister Dharmendra Pradhan on Monday flagged off from L&T's Hazira plant in Surat district critical components bound for Indian Oil's MEG (mono-ethylene glycol) plant coming up at the refinery-cum-petrochemical complex at Paradip in Odisha. During his visit to Surat in Gujarat, the minister flagged off the equipment from the engineering and construction giant Larsen & Toubro's Hazira plant. "Flagged-off indigenously manufactured critical components from L&Ts Hazira manufacturing facility to @IndianOilcls MEG (mono-ethylene glycol) plant coming up at the refinery-cum- petrochemical complex at Paradip in Odisha," Pradhan tweeted after the visit. In a series of tweets, the Union Minister said the delivery of three super critical equipment -- Ethylene Oxide Reactor, Wash Tower and De-ethyleniser -- "will be a significant stride in the commissioning of the MEG project at Paradip refinery" and will help reduce MEG imports and also enhance the competitiveness of the refinery. "It will also act as a driver for the growing textiles industry in Odisha, fuel several downstream textile and polymer industries in the region, strengthen #MakeInIndia and also meet the entire MEG requirement for the proposed Textile Park at Bhadrak and Dhamra," he said. "The MEG project being setup with an investment of Rs 5,654 crore is expected to be commissioned in October, 2021. It will boost large-scale employment generation in the textile sector, including creation of 14,000 job opportunities in the downstream units at Bhadrak and Dhamra alone," he said further. He said this will help establish Paradip as a hub of petroleum, textiles and petrochemical-based industries and usher in unprecedented opportunities for the development of Odisha. Pradhan also visited steel-making facilities at Arcellor-Mittal Nippon Steel at Hazira. In another tweet, he said the company is planning a capacity addition of 8 million tonne per annum to its 12-MTPA capacity iron ore pelletization facility in Paradip. "Happy that AMNS India has evinced interest in expanding its investment footprints to the tune of Rs 50,000 crore in Odisha, especially in the areas of value added and special steels," he said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Gold prices jump and rupee rises to 4-month high as dollar falters

05 Jan, 2021, 01:15AM | Business Standards

Gold started the new year on a high in the international market by notching an eight-week peak on Monday, as the dollar slipped broadly to mid-2018 lows with investors selling it for just about everything else in the Asia session, wagering the world’s pandemic recovery would drive other currencies higher. The rupee closed at a four-month high of 73.02 after appreciating 9 paise. Oil, too, touched multi-month highs on expectations Opec (Organization of the Petroleum Exporting Countries) and allied producers may cap output at current levels in February and on hopes that vaccines may curb the spread of the coronavirus and drive an economic rebound. But its price eased a bit in later trade. Spot gold rose 2.14 per cent to trade at $1,919.11 an ounce by 5.58 pm IST, having hit its highest since November 9 at $1,925.05. In India, standard gold rose Rs 877 to Rs 50,619 a 10 gram in the national capital. Brent crude, too, rose in line with the broader financial market and its futures reached $53.33 a barrel, the highest since March 2020. US West Texas Intermediate (WTI) crude touched $49.83 a barrel, the highest since February 2020. At 6.05 IST, Brent was 0.12 per cent down at $51.74 a barrel, while WTI was 0.45 per cent below at 48.30 a barrel. Emerging Asia's currencies also began the new year on the front foot as investors bet that a vaccine-led recovery from the Covid-19 pandemic would keep the dollar subdued, with the Indonesian rupiah climbing to a more than six-month high. The Indian rupee, too, strengthened, supported by sustained foreign fund inflows and weakness of the American currency overseas. Traders said approval to two Covid-19 vaccines in the country also improved sentiments. The greenback continued to retreat after posting its largest annual loss since 2017 last year, buoying the Taiwanese dollar 1.5 per cent, while the Malaysian ringgit and the South Korean won advanced 0.6 per cent and 0.5 per cent, respectively. “The Indian rupee appreciated amid weakness in the dollar and surge in the stock markets. Market sentiments improved on hopes of global economic recovery from pandemic buoyed by the rollout of vaccine and extraordinary fiscal and monetary stimulus,” said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas. Further, the rupee gained strength on steady FII inflows and improved economic data, Mukadam said, adding that it may trade in the range of 72.75 to 73.55 in the next couple of sessions. Positive economic indicators, too, played part in the weakening of the dollar. India’s Manufacturing Purchasing Managers' Index (PMI) was at 56.4 in December, a tick higher than November's reading of 56.3 and above the critical 50 threshold for the fifth straight month. The gauge of growth in British manufacturing activity rose to its highest level in three years as factories rushed to complete work before the end of the post-Brexit transition period on December 31. German manufacturing also continued to power on at the end of the year. IHS Markit economist Phil Smith said: “With the rollout of Covid vaccines, it's hoped that the pandemic will become less and less of a hindrance to demand and that investment will continue to recover in the year ahead.” Commodities like iron ore and copper also kicked off 2021 on a strong note.

Nearly 40% components of Nifty50 change in a decade, shows data

05 Jan, 2021, 01:13AM | Business Standards

Twenty, or 40%, of components that were part of the Nifty50 in December 2010 are no longer part of the index today. Big names that are out of the index include BHEL, Sterlite Industries, Jindal Steel, Ambuja Cement, ACC, and SAIL. The new entrants comprise Asian Paints, Britannia, Titan, Nestlé, BAF (Bajaj Finance), and Bajaj Finserv. RIL, Infosys, ICICI Bank, and HDFC feature among the top five heavyweights even after a decade. Sector weighting has also changed — those with high weighting a decade ago were oil and gas (14.7%), private banks (14.5%), and IT (14.3%). Sectors with high weighting in 2020 were private banks (24.7%), IT (16.3%) and oil and gas (12.5%). Sectors which lost the most were metals (640 bps), and capital goods (610 bps); the biggest gainers were private banks (1,020 bps) and consumer (470 bps).

Dharmendra Pradhan urges coal and mines minister to expedite capacity expansion of smelter plant

04 Jan, 2021, 09:15PM | Economic Times

Union petroleum and steel minister Dharmendra Pradhan on Monday urged his colleague Prahlad Joshi, who holds the portfolio of coal, mines and parliamentary affairs, to expedite capacity expansion of Nalco's Aluminium smelter plant at Angul in Odisha. Pradhan, in his letter, requested Joshi to take necessary steps for increasing Nalco smelter plant's capacity to 1 MTPA from existing 0.46 MTPA. The National Aluminium Company is undertaking a brownfield expansion project for their aluminium smelter plant at Angul, which include construction of a 1400 MW feeder Captive Power Plant ( CPP ). The cost of this project, which is presently at the land acquisition stage, is estimated to be around Rs 22,000 crore, Pradhan said in the letter. This apart, he said aluminium smelting is a highly power-intensive process and the feasibility of this brownfield expansion project is heavily dependent on a steady supply of affordable coal to the 1400 MW feeder CPP for uninterrupted generation of power. "In this context, I would like to put forward a proposal for commencement of the brownfield expansion project for increasing the capacity of Nalco's aluminium smelter plant at Angul from 0.46 MTPA to 1 MTPA," he added.

JSPL posts 30% rise in production and sales up by 25% in December 2020

04 Jan, 2021, 08:24PM | Economic Times

Mumbai: Steelmaker, Jindal Steel & Power Limited ( JSPL ) reported a 20% year-on-year rise in production to 19.3 lakh tonnes during the third quarter of FY 21 with December production reaching record high levels of 7.27 lakh tonnes, a rise of 30% yoy. “We are proud of our dedicated workforce who achieved such an extraordinary increase in the production with existing capacity by way of optimizing various operating parameters without any Capex . We will achieve even greater heights in times to come," said, V R Sharma, managing director, JSPL. The company’s production jumped 30% in December to 7.27 lakh tonnes. The company also reported a monthly sales of 7.11 lakh tonnes in December 2020 as against sales of 5.67 lakh tonnes during the same period last year. JSPL has produced crude steel of 5.44 mnt from year to date of FY21 an increase of 14% YoY implying utilization rates of 84%, analysts said. “JSPL's Standalone Steel sales also increased by 12% YoY to 18.8 lakh tonnes in Q3FY21 compared to 16.7 lakh tonnes in Q3FY20,” the company said in a statement. “We understand strength in domestic sales is driven by rail products, plates as well as a higher proportion of semi finished products. In terms of YoY, domestic sales volumes grew 30% in Dec-20,and year to date basis domestic volumes are down 18%,” said Morgan Stanley in a report on Monday. JSPL’s integrated steel plant in Angul reported a monthly production of 4.16 lakh tonnes during December and the Raigarh steel plant also reported the production of 3.11 lakh tonnes. “The company guided for production of around 7.3mnt for F2021, which implies 1.9mnt for the balance of the year (monthly rate of 0.63mnt and utilization rate of 88%). In light of strong Dec-20 production, this appears achievable in our view,” the Morgan Stanley report said. JSPL’s Steel exports increased by 18% (Y-o-Y) to 3.87 lakh tonnes in Q3FY21 contributing 21% to the total sales volumes.

Market Wrap, Jan 4: Here's all that happened in the markets today

04 Jan, 2021, 05:12PM | Business Standards

The Indian government's decision to approve two vaccines -- Serum Institute of India's Covidshield, and Bharat Biotech's Covaxin -- for restricted use in an emergency situation pushed indices to record high levels yet again on Monday. Moreover, manufactruing PMI, which remained in the expansion zone for the fifth straight month and stood at 56.4 in December, also let loose bulls on D-Street. Extending the bull-run into tenth week, the benchmarks ended tad-bit lower than record highs but at fresh closing peaks nonetheless. The S&P BSE Sensex settled the day 308 points, or 0.64 per cent, higher at 48,177 levels on the BSE, after hittig a fresh liftime peak of 48,220.4 in the intra-day deals. Its NSE counterpart, Nifty50, ended above the 14,100-mark for the first time, at 14,133 levels, up 114 points or 0.8 per cent. In the intra-day trade, the index hit a record peak of 14,148. In the broader market, the S&P BSE Midcap index hit a record high of 18,435.14 in intra-day session, surpassing previous high of 18,321, touched on January 9, 2018. It ended 1.4 per cent higher at 18,421.5 level. The S&P BSE SmallCap index, on the other hand, ended 1.37 per cent higher at 18,511 level. On the sectoral front, Nifty Metal index jumped 5 per cent on the NSE today and hit an over 3-year high of 3,442 after global brokerage Jefferies said benign monetary policies, and potential stimulus measures provide strong backup to the metal sector. It also said that Indian metal firms should deliver a strong earnings rebound in FY22. Among individual stocks, Tata Steel, SAIL, Hindalco, and JSPL ended the day up to 8 per cent higher. That apart, the Nifty IT index ended the day at a fresh closing peak of 25,110. Individually, Infosys, HCL Tech, and TCS hit their respective lifetime highs today. On the downside, Nifty Bank, Nifty Private Bank, and Nifty Financial Services indices ended the day in the red. Coming to other individual stocks, shares of Reliance Industries closed at day's high, up 0.18 per cent at Rs 1,991, on the BSE after the company said its telecom arm Reliance Jio has approached the Punjab and Haryana High Court urging it to direct the Punjab government to intervene and stop the continuous vandalism of its infrastructure in the state. In a petition filed earlier in the day, Reliance Industries said the company has not done any corporate or contract farming in the past, and has absolutely no plans to enter the business. That apart, shares of Alkyl Amines Chemicals moved higher by 19 per cent to Rs 4,626 on the BSE in intra-day trade on Monday after the company said its Board of Directors would meet on February 2 to consider stock split and expansion plans. The stock settled around 15 per cent higher at Rs 4,451. State-owned BEML also jumped 8 per cent to hit a high of Rs 1,050 on the BSE after the government invited bids for strategic divestment in the defence and engineering company. It closed 3.4 per cent higher. Global markets World stock markets hit record highs on Monday as investors hoped the rollout of vaccines would ultimately lift a global economy decimated by the Covid-19 pandemic. The UK's National Health Service (NHS) on Monday began rolling out the Oxford University vaccine developed by AstraZeneca as protection against COVID-19. Consequently, European stocks open higher, with Britain's FTSE 100 gaining 1.75 per cent, Germany's DAX up 1.1 per cent, Spain's IBEX up 1.3 per cent and Italy's FTSE MIB rising 0.7 per cent. Asian stock markets also gained, although Japan's Nikkei 225 index shed early gains, falling 0.4 per cent after the government said it was considering a state of emergency for Tokyo and three surrounding prefectures amid coronavirus concerns. Meanwhile, Dow Jones Futures were last trading 165 points, or 0.5 per cent higher, indicating a green start for Wall Street later today.

Steel companies raise prices by upto Rs 2,400 a tonne, more hikes expected

04 Jan, 2021, 05:08PM | Business Standards

Amid the noise around rising steel prices, the rally continued in the new year with some companies increasing prices by Rs 1,000-2,400 a tonne and indicating more hikes in the coming weeks. A primary producer said that the prices would be raised in tranches this month and the total increase could be Rs 6,000 a tonne. “The first tranche is already effective. We have increased hot rolled coil prices by Rs 1,500 a tonne and rebar by about Rs 2,400 a tonne,” he said. Jindal Steel & Power (JSPL) has increased prices by Rs 1,000-1,500 a tonne. V R Sharma, managing director, said that the market was good, but prices would stabilise if NMDC kept its iron ore prices at the same level. The buoyancy in the market was reflected in JSPL’s production numbers released on Monday. The company recorded its highest ever production and sales in December; production increased 20 per cent year-on-year to 1.93 million tonnes in Q3 while sales increased 12 per cent (Y-o-Y) to 1.88 million tonnes in the same period. Other major producers, too, are expected to come out with a good showing in the third quarter. Some companies, however, were waiting for NMDC’s move on prices before taking a call on the quantum of increase. “We will decide this week,” said a producer. Since India entered the unlocking phase, steel prices have been on a continuous uptrend. Sharma explained that there was a shortage of long products as secondary producers that account for about 40 per cent of the production were not able to come up to the right level of production. “They are producing 30-31 per cent which is being made up for by the six major producers,” he said. The increase in prices, however, has caused much discontent among user industries. Raw materials industry, too, has raised the matter. About a week back, the Indian Steel Association (ISA) wrote to the Prime Minister’s Office (PMO), explaining the reasons behind the price increases undertaken by the industry. Primary among them were that international prices had moved from a bottom of $397 a tonne to $750 a tonne due to temporary shortage in global supplies and a shortage of iron ore, a key input material. The industry also highlighted evacuation challenges with respect to iron ore and said that iron ore export competes with the movement for domestic use. The ISA has urged for a six-month ban on the export of iron ore till the situation stabilises. Days after, the Federation of Indian Mineral Industries (FIMI) wrote to the PMO, countering ISA's points. FIMI said that the ISA was obfuscating the issue and justifying the unjustifiable increase in steel prices. The association also pointed out that the Indian steel industry fixes its products almost at par with international levels; on the contrary, Indian iron ore prices were priced much lower than international prices. On an uptrend Steel prices have risen by Rs 1,000-2,400 a tonne; more increases likely this month Prices have been on the rise since July 2020 in line with international prices International prices increased from $397 a tonne to $750 tonne NMDC iron ore prices increased from Rs 1,960 a tonne in June to Rs 4,610 a tonne in December

Tariff policies under Trump hit India-US trade ties: US Congress report

04 Jan, 2021, 03:39PM | Business Standards

Under the Trump administration, US-India tensions have increased over each side's tariff policies, a Congressional report has said, noting that the two sides have also held concerted negotiations to address these trade frictions. The bipartisan Congressional Research Service (CRS), in its latest report, pointed out that India's recent tariff hikes on cell phones and other telecommunication goods went up from zero per cent to 15-20 per cent in the last few years. "Under the Trump administration, bilateral tensions increased over each side's tariff policies. In general, India has relatively high average tariff rates, especially in agriculture. It can raise its applied rates to bound rates without violating its commitments under the WTO (World Trade Organization), causing uncertainty for US exporters," said the CRS report, which is prepared for the members of Congress ahead of trade decisions. The United States and several other countries have requested to join various WTO dispute consultations against India, related to its technology tariffs, also questioning its compliance with the WTO Information Technology Agreement (ITA). "India opposes the 25 per cent steel and 10 per cent aluminum national security-based 'Section 232' tariffs that the Trump Administration imposed in 2018. India repeatedly delayed applying planned retaliatory tariffs against the United States in hopes of resolving the issues bilaterally," it said. After India lost its eligibility for the US Trade Preference Program, India imposed higher tariffs of 10 per cent to 25 per cent, affecting about USD 1.32 billion of US exports, such as nuts, apples, chemicals, and steel, the report stated, adding that the two sides are challenging each other's tariffs in the WTO. "Under the Trump administration, the United States and India held concerted negotiations to address trade frictions. A potential trade deal could include partial restoration by the United States of India's GSP (Generalised System of Preference) benefits in exchange for certain market access commitments according to press accounts," CRS said. Yet, the long expected limited trade deal has not materialised to date, the report said. Negotiations under prior administrations on a Bilateral Investment Treaty (BIT) are stalled due to differences on approaches on investor protection. On the government-to-government trade policy, the CRS listed a set of key issues. Main among them was what aspects of bilateral trade relations would change or remain the same under a President-elect Joe Biden-led administration. President Donald Trump, a Republican, is set to be succeeded by Biden, a Democrat on January 20 after he won the November 3 presidential election. Other key issues were, what trade issues should the United States and India prioritise in future talks, the potential for broader trade agreement negotiations, will India and the United States renegotiate entry into the Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), or potentially seek other ways to engage on regional issues, and are there opportunities for the United States and India to bridge differences on multilateral trade issues. Noting that India and the US have signed defense contracts worth more than USD 20 billion since 2008, up from USD 500 million in all previous years combined, the CRS said the future big deals are the purchase of an Integrated Air Defense Weapon System, valued at nearly USD2 billion, and 30 MQ-9B Sky Guardian drones worth more than USD 3 billion. "India is eager for more technology-sharing and co-production initiatives, while the United States urges more reforms in India's defence offsets policy and higher Foreign Direct Investment caps in its defence sector. India's multibillion-dollar deal to purchase the Russian-made S-400 air defense system may trigger US sanctions on India under the Countering America's Adversaries Through Sanctions Act, the CRS said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

BSE Midcap index hits record high; JSPL, Ashok Leyland surge 6%, SAIL up 5%

04 Jan, 2021, 01:11PM | Business Standards

Shares of midcap companies were on a roll on Monday with the S&P BSE Midcap index hitting a record high on the back of a strong rally in metals, financials and public sector undertaking (PSU) stocks. At 12:50 pm, the S&P BSE Midcap index was up 0.85 per cent at 18,319 levels, as compared to a 0.31-per cent rise in the S&P BSE Sensex. The midcap index hit a record high of 18,363 in the intra-day trade, surpassing its previous high of 18,321, touched on January 9, 2018. Among individual stocks, Ashok Leyland hit a 52-week high of Rs 105, up 6 per cent on the BSE, after the company reported a 14 per cent increase in its total commercial vehicle sales at 12,762 units in December 2020. The company had sold a total of 11,168 units in December 2019. Meanwhile, Jindal Steel and Power and Steel Authority of India (SAIL) from the metal pack rallied 6 per cent and 5 per cent, respectively. Steel stocks were in demand amid expectations of further improvement in performance due to the realisation of uptick in the domestic market and progressively lower proportion of exports. Although steel demand in India may decrease in 2020 but it is expected to be extremely strong in 2021 on the back of government's infrastructure investments, production linked incentives, support for rural economy through infra development, analysts say. Restarting of construction activities across India and recovery in the auto industry are also likely to support demand. In a report dated January 4, global brokerage Jefferies said that calndar year 2021 is "likely to be a year of a synchronised pick-up in most major economies". "Benign monetary policies, and potential stimulus measures also provide strong backup... Indian metals should deliver a strong earnings rebound in FY22," it added. That apart, Bharat Heavy Electricals (BHEL), Bharat Electronics (BEL), NHPC, Hindustan Aeronautics and Oil India from the PSU pack were up in the range of 3 per cent to 5 per cent. Vodafone Idea, Cholamandalam Investment and Finance Company, Oracle Finance Services Company, Federal Bank, Muthoot Finance and Mahindra & Mahindra Financial Services gained between 3 per cent and 4 per cent. For calendar year 2021 (CY21), ICICI Securities expect midcaps and small caps to gain relatively more than the large caps. "The delta in earnings growth during a recovery phase will be high in midcaps and small caps vis-à-vis large caps whereas multiple expansions in the former will provide additional alpha for capital appreciation. Other macro factors like benign interest rates and structural cost rationalisation measures will also aid operating and financial leverage for this category," the brokerage firm said in a report.

Manufacturing shows marginal improvement in Dec, PMI inches up to 56.4

04 Jan, 2021, 12:27PM | Business Standards

Manufacturing sector activity showed a marginal improvement in December compared to the previous month even as employment generation remained low, showed a widely-tracked IHS Markit purchasing managers’ index (PMI) survey. PMI inched up to 56.4 in December compared to 56.3 in November. However, it remained lower than 58.9 in October and 56.8 in September, the two months when the economy saw lifting of lockdowns. A reading above 50 shows growth, while the print below 50 means contraction. While firms were able to lift input stocks, and did so at the quickest rate in nearly a decade, holdings of finished goods decreased sharply due to ongoing increase in new work. Output growth eased to four-month low, but remained strong. Manufacturing in the index of industrial production (IIP) rose by 3.5 per cent in October, according to latest figures. However, it may also come down in line with the PMI results, warned Pollyanna De Lima, economics associate director at IHS Markit. Lima said, “The latest available official data pointed to a 3.5 per cent annual increase in manufacturing production during October, when the PMI Output Index had strengthened considerably. In the two months, growth lost some momentum and we are likely to see the official results showing a similar pattern.” ALSO READ: Steel companies raise prices by upto Rs 2,400 a tonne, more hikes expected Rahul Bajoria, chief India economist at Barclays, said the sticky and elevated PMI readings continue to be in sync with high frequency real activity data, which has shown ongoing improvement in performance through the last six months. “The positive growth momentum could get a further boost after a nationwide, phased distribution of the approved vaccines. That is expected to begin in the next one-two weeks,” he said. One area that failed to improve was employment. “Once again, the survey brought the bad news of falling employment. However, the trend for jobs is at least moving in the right direction as the rate of contraction softened to the weakest in the current nine-month period of reduction,” said Lima. Meanwhile, raw material scarcity at suppliers’ end caused delivery delays and the fastest rise in input costs in over two years. Reflecting the loosening of Covid-19 restrictions, strengthening demand and improved market conditions, factory orders increased during December. In response, firms lifted production again. In both the cases, rates of expansion remained sharp despite easing to four-month lows. International demand for Indian goods rose in December, but anecdotal evidence suggested that growth was hampered by the Covid-19 pandemic. As a result, new export orders increased at the slowest pace in the current four-month sequence of expansion. Input cost inflation accelerated to a 26-month high in December, with panelists noting increased prices for chemicals, metals, plastics and textiles. Output charges were lifted in response to rising cost burdens, but here the rate of inflation was only marginal. Manufacturers maintained an upbeat view that output will increase in the coming year. However, the degree of optimism weakened to a four-month low as some firms were concerned about the lasting effects of the Covid-19 pandemic on the global economy.

JSPL posts record sales, production numbers in December

04 Jan, 2021, 11:41AM | Economic Times

New Delhi: Private steel maker Jindal Steel and Power Ltd (JSPL) on Monday posted a record 30 per cent jump in its standalone production and 25 per cent growth in sales during December 2020. The company's total production from its plants in India was at 7.27 lakh tonne (LT) in December, up from 5.59 LT during the same month in 2019, JSPL said in a statement. During the month under review, its standalone sales were at 7.11 LT, as against 5.67 LT in December 2019. On a month-on-month basis, the production at 7.27 LT was over 18 per cent higher from 6.14 LT in November 2020. At 7.11 LT the sales in December 2020 were 26 per cent up compared to 5.65 LT in November 2020. For October-December 2020, the company has posted 19.26 LT standalone production, up 20 per cent from 16.10 LT in the same period in 2019. During the period under review, the sales were at 18.76 LT, registering a rise of 12 compared to 16.71 LT in October-December 2019. In the statement, JSPL said the company recorded its highest ever production and sales numbers in December 2020, as well as in the October-December period. "We are proud of our dedicated workforce who achieved such an extraordinary increase in the production with existing capacity by way of optimizing various operating parameters without any Capex. We will achieve even greater heights in times to come," JSPL Managing Director (MD) V R Sharma said. Part of the OP Jindal Group, JSPL has presence in steel, power, mining and infrastructure sectors.

Jindal Steel and Power posts record sales, production numbers in December

04 Jan, 2021, 11:39AM | Business Standards

Private steel maker Jindal Steel and Power Ltd (JSPL) on Monday posted a record 30 per cent jump in its standalone production and 25 per cent growth in sales during December 2020. The company's total production from its plants in India was at 7.27 lakh tonne (LT) in December, up from 5.59 LT during the same month in 2019, JSPL said in a statement. During the month under review, its standalone sales were at 7.11 LT, as against 5.67 LT in December 2019. On a month-on-month basis, the production at 7.27 LT was over 18 per cent higher from 6.14 LT in November 2020. At 7.11 LT the sales in December 2020 were 26 per cent up compared to 5.65 LT in November 2020. For October-December 2020, the company has posted 19.26 LT standalone production, up 20 per cent from 16.10 LT in the same period in 2019. During the period under review, the sales were at 18.76 LT, registering a rise of 12 compared to 16.71 LT in October-December 2019. In the statement, JSPL said the company recorded its highest ever production and sales numbers in December 2020, as well as in the October-December period. "We are proud of our dedicated workforce who achieved such an extraordinary increase in the production with existing capacity by way of optimizing various operating parameters without any Capex. We will achieve even greater heights in times to come," JSPL Managing Director (MD) V R Sharma said. Part of the OP Jindal Group, JSPL has presence in steel, power, mining and infrastructure sectors. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Metal giants in race for Uttam Galva

04 Jan, 2021, 10:09AM | Economic Times

(This story originally appeared in on Jan 04, 2021) MUMBAI: Metal billionaires Lakshmi Mittal , brothers Sajjan Jindal & Naveen Jindal, and Anil Agarwal (of Vedanta) have shown an interest in Uttam Galva Steels, which has been put on the block by lenders. Mittal has the highest exposure to Uttam Galva’s liabilities of Rs 9,742 crore, followed by other financial and operational creditors. Phoenix Asset Reconstruction Company (ARC), owned by Kotak Mahindra, has also thrown in its hat for Uttam Galva, for which the initial bid deadline ended last month. The ARC too has an exposure to the 35-year-old, Mumbai-based company’s liabilities. In March 2020, State Bank of India (SBI) had initiated bankruptcy proceedings against Uttam Galva at the Mumbai bench of the National Company Law Tribunal (NCLT) after it defaulted on an external commercial borrowing of $6.7 million. Six months later, the NCLT admitted SBI’s petition and appointed Milind Kasodkar of law firm KMDS & Associates to oversee Uttam Galva’s affairs and conduct its bankruptcy proceedings. Uttam Galva, founded by Rajendra Miglani, is among the largest makers of value-added steel in western India with facilities located at Khopoli, about 75km from Mumbai. Value-added steel is used in automobiles, aerospace and consumer durable industries. The company posted a loss of Rs 140 crore on a revenue of Rs 277 crore in the first six months of FY20. While Sajjan Jindal’s JSW Steel and Naveen Jindal’s JSPL declined to comment on the report, Mittal’s local unit ArcelorMittal Nippon Steel India and Vedanta did not immediately respond to a request for comment. Phoenix ARC could not be reached for comments. Vedanta, said sources, has routed its interest in Uttam Galva through ESL Steel, a company it acquired through the bankruptcy route in 2018. ArcelorMittal was once a co-promoter of Uttam Galva, but later sold its stake in the company to the founders so that it could bid for other stressed Indian steel assets that were being auctioned under the bankruptcy proceedings. It also had to take on the bulk of the stressed Uttam Galva’s debt to be eligible to bid for bankrupt Indian steel assets. It subsequently won Essar Steel, now known as ArcelorMittal Nippon Steel India, through the bankruptcy route. ArcelorMittal through two entities has an exposure of Rs 7,922 crore to Uttam Galva’s liabilities. It has 87.2% vote among financial creditors — 71.5% through ArcelorMittal India and 15.9% through AMNS Luxembourg.

Stocks to watch: RCFL, Tata Motors, RIL, BEML, Cadila Health, Adani Green

04 Jan, 2021, 08:16AM | Business Standards

Nifty futures on the Singapore Exchange were, at 8:20 AM, trading at 14,131, up nearly 0.82 per cent, indicating a gap-up start for the benchmark equity indices on Monday. Here is a look at top stocks that are likely to be in focus today: Rashtriya Chemical: The government is planning to sell 10 per cent stake in Rashtriya Chemical and Fertilizers and has invited bids from merchant banker and legal firms for managing the share sale process. BEML: The government, on Sunday, invited preliminary bids for strategic sale of 26 per cent stake along with transfer of management control in defence PSU BEML. Bidders can submit their Expression of Interest (EoI) by March 1. Cadila Healthcare: DGCI has approved phase 3 clinical trials of Ahmedabad-based Cadila Healthcare’s ZyCov-D. The company will now be initiating Phase III clinical trial in around 30,000 volunteers. RIL: Sebi, on Friday imposed penalties on Reliance Industries, its Chairman and Managing Director Mukesh Ambani as well as two other entities for alleged manipulative trading in the shares of erstwhile Reliance Petroleum back in November 2007. Besides, RIL and its partner BP Plc of UK have committed to pay in cash for any natural gas volumes they are unable to deliver to customers from the next wave of discoveries in the eastern offshore KG-D6 block. Coal India: Despite its cash-flow issues, Coal India has already spent over Rs 8,000 crore as capital expenditure (capex) till December 2020 in the current fiscal, and is looking to meet a revised target of Rs 13,000 crore of such expense by the end of FY'21, an official said on Sunday. Besides, the company's production in December was up by 0.5 per cent to 58.3 million tonne, while its offtake was down by 2.1 per cent to 52.6 million tonne for the month. Tata Steel: Tata Steel, on Friday, said it has transferred its stake in two companies to TSDPL, a wholly- owned subsidiary of the firm, as part of reorganising its India footprint. Adani Green: Adani Green Energy said its wholly-owned subsidiary Adani Renewable Energy Holding Eight has been awarded a 600-megawatt wind-solar hybrid power project by Solar Energy Corporation of India. Antony Waste Handling Cell: Edelweiss Finvest sold 2,51,348 shares of Antony Waste Handling Cell at Rs 439.70 per share. CSB Bank: The lender, in its December quarter business update, stated that total deposits rose 16.5 per cent year-on-year to Rs 17,752.97 crore while gross advances rose 22.64 per cent year-on-year to Rs 13,425.24 crore. Tata Motors: Tata Motors, on Friday, reported a 21 per cent increase in total vehicle sales in the domestic market to 53,430 units in December. TVS Motor: TVS Motor Company on Saturday reported a 17.5 per cent increase in total sales to 2,72,084 units in December. Hero MotoCorp: The country's largest two-wheeler maker Hero MotoCorp has reported 5.02 per cent increase in total sales at 4,47,335 units in December.

Billions of dollars at stake as courts begin ruling on pending bank cases

04 Jan, 2021, 07:24AM | Business Standards

Indian courts may rule in coming months on cases involving billions of dollars in distressed assets, and the decisions could clarify what roles banks play in helping companies devastated by the pandemic. What may be among the first of the verdicts could also be one of the most important: the Supreme Court may decide within weeks on requests by big borrowers seeking relief on repayments and defaults, in what’s being called the loan moratorium case. Courts also need to rule on pending bankruptcies whose resolution in the coming year could bring billions of dollars of much needed cash to banks. The legal tussles pit India’s lenders, central bank and government against corporate borrowers struggling to survive amid lockdowns prompted by Covid-19. Companies are asking for more relief as the Reserve Bank of India forecasts the economy will shrink by 7.5% this fiscal year, but that could cause a deeper hit for lenders than the central bank is willing to allow. Loan Moratorium Case The Supreme Court in December completed hearing arguments in the case that lasted for around two months. It’s expected to give a verdict in coming weeks, though no date has been announced. In the same case, the top court will also rule on petitions by the central bank and lenders to lift an order that barred banks from marking loans as non-performing assets. Read more background here. Why It Matters Courts have recently issued orders favorable for borrowers, including barring lenders from selling pledged assets and stopping banks from marking accounts as bad loans. The top court also urged the government to subsidize a 65 billion rupee ($886 million) interest waiver for small borrowers. Some argue that India’s banks, already stuck with one of the world’s biggest bad-debt piles, would be even more reluctant to lend if courts issue orders that conflict with their contracts. Courts’ “borrower-friendly” approach despite clear contractual terms was among the biggest reasons for legal troubles for banks in 2020, said Veena Sivaramakrishnan, a partner at law firm Shardul Amarchand Mangaldas & Co. Banks would seek certainty in enforcing contracts and “would expect the courts and the judiciary to also respect the same to continue to provide financing,” she said. Allowing banks to mark bad loans again would help uncover the impact of the lockdowns on their financial health. The central bank, lenders and the federal government have also urged the top court to not grant more relief to borrowers because that’s a matter to be decided with economic policy. Authorities unveiled from March measures to assist companies including a six-month moratorium on loan repayments and a bar on bankruptcy filings for a year. Major Bankruptcy Cases Half of the so called “dirty dozen” -- 12 big bankruptcy filings in 2017 -- are yet to be resolved. Three of them are pending in the top court and may reach a verdict in the coming year. These are the next tentative hearing dates, though rulings could possibly take months: * Jan. 11: Amtek Auto Ltd. The auto parts manufacturer owes banks about $1.7 billion. While the National Company Law Tribunal earlier this year approved a bid led by U.S.-based hedge fund Deccan Value Investors LP to take over the company, the fund has since attempted to withdraw from that plan. The top court will decide whether to allow that and if banks should be asked to conduct another round of bidding. * Jan. 13: Bhushan Power & Steel Ltd. The court will decide whether to allow a planned purchase of the firm by JSW Steel Ltd. to go ahead. If the deal does go through, it could fetch banks about $2.6 billion. * No date set yet: Jaypee Infratech Ltd., the largest real estate bankruptcy in India. If the top court finalizes a takeover bid from NBCC Ltd. for the company, then banks would get assets worth about $3.2 billion, according to bankruptcy regulator Insolvency and Bankruptcy Board of India.

High cost of production delays recovery of secondary steel companies

03 Jan, 2021, 11:09PM | Economic Times

MUMBAI: Steel prices are rising, but the responses of primary and secondary makers of the alloy to the defining price movements are markedly different. Big, integrated players have reported a quicker return to normalcy, but weaker financials, limited product range and higher costs have combined to delay the recovery for secondary steel companies . “Most of the secondary steel plants are likely to be completely closed and it is a matter of time due to really high manufacturing cost. After the pandemic, the cost of production between an integrated steel plant and the secondary players has widened by around Rs 10,000 per tonne,” said RK Goel, managing director of Kalyani Steel , one of the top secondary steel companies in India. CARE reported that India’s top six integrated steel producers (ISPs) together produced 5.9 mt of crude steel out of the total 9.2 mt in November, up 7.5% on year. By contrast, the output at smaller players fell 6%. Secondary steel players continued to report on-year decline in production for the 19th consecutive month ended December. India's steel making consists of two sectors; integrated primary steel players contributing nearly 55% and the secondary steel players comprising the remaining 45%. The ratio isn’t the same as the industries clamber out of the pandemic-induced contraction. “Limited scale of operations and weaker financial flexibility to cope with the multiple challenges thrown by the pandemic have further delayed their recovery. Consequently, the share of the six ISPs have gone up to 65% in November 2020 from 62% in November 2019,” said the report by CARE ratings. “For secondary steel makers, operating margin will test the lower range of 5.5-6.5%, marking a fall of nearly 100 basis points. This is largely due to the pandemic-driven shutdown in the first quarter of this fiscal, which led to a near-complete shutdown of operations for many producers,” said Mohit Makhija, Director, CRISIL Ratings. What led to this? During the peak lockdown period, primary steelmakers were able to catch up with the lost domestic demand through exports, which the secondary players could not due to limited reach and infrastructure. A secondary steel player that owns a steel re-rolling mill in Chhattisgarh said that the rise in steel prices had very little impact on their profitability as the iron ore price too shot up at the same time. “We had labour issues, logistics issues, liquidity crunch during Apr-Sep period. We slowly revived only to get hit by the sharp cost pressure,” the person quoted above said. The primary reason behind the adjustment of prices has been on account of the sharp rise in the main raw material cost which is iron ore and its overall shortage besides surging global steel prices. As per Industry body Indian Steel Association (ISA) rise in sponge iron prices are around 70% and pellets around 104% in the last 6 months. “Bearing the brunt of the current situation are the smaller steel producers, who are faced with the double whammy of high input prices and non-availability of iron ore. As a result, they are unable to scale up production and stocks in smaller plants are less than 15 days of requirement,” said Indian Steel Association in a letter to the Prime Minister’s office last week. Kalyani Steel’s Goel added that the secondary steel manufacturers that cater to auto companies, could not increase prices to a great extent and long product players took a hike of around Rs 4,750 per tonne. However, integrated steel players increased it by around Rs 18,000 per tonne. Light at the end of the tunnel? Integrated steel players said that the situation is likely to turn around in a couple of months. “I feel this is quite temporary, maybe today the secondary players are not able to get iron ore and they are also suffering due to lower working capital and liquidity and third, many secondary players do not have the manpower availability,” said SAIL’s ex-chairman, Anil Kumar Chaudhary. Several secondary steel companies ET spoke to are seeking a ban on exports of iron ore and iron ore pellets in order to bring down their raw material costs.

Rourkela Steel Plant sets records in production, dispatch despite Covid

03 Jan, 2021, 04:46PM | Business Standards

Rourkela Steel Plant, a unit of the state-run SAIL, on Sunday said it has registered an impressive performance in 2020, despite the COVID-19 challenges and set records monthly hot metal production of 4,06,397 tonnes and crude steel output of 3,62,388 tonnes in December. The year-end performance also includes the best single-day production of 15,180 tonnes hot metal on December 30, and a record dispatch of 16,552 tonnes saleable steel on the last day of 2020, it said. The raw materials handling plant (RMHP) clocked the highest monthly base mix stacking of 10,92,111 tonnes in the last month. Other major achievements during 2020 include the highest single-day crude steel production of 13,336 tonnes on October 28 and saleable steel output of 21,354 tonnes on October 31. "A power-packed national record created by the steel melting shop-II (SMS-II) has set in motion the process of the turnaround. It had clocked 48 blows to register the highest blow in a single converter on July 2, 2020," the RSP said in a statement. Besides, the steel plant registered the best performance in major techno-economic parameters such as the lowest energy consumption in November and the highest steel ladle life. During the year, the RSP made a significant stride into the niche market by developing many import-substitute grade steel products, the statement said. With favourable market conditions prevailing now, the authorities of the RSP are now looking forward to scale new heights in 2021, it added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Four cases of new Covid strain found among UK returnees in Ahmedabad

03 Jan, 2021, 04:19PM | Business Standards

The new strain of Covid-19 first detected in the United Kingdom and now known as the 'UK strain' has found its way into Gujarat with four cases in Ahmedabad. State government has confirmed that genome sequencing by National Institute of Virology (NIV), Pune has found four people who tested Covid-19 positive after landing at the Ahmedabad airport to be carrying the UK strain. Named VUI-202012/01 or 'variant under investigation in December 2020', the strain found its entry from a London-Ahmedabad flight on December 22 via four residents. Confirming the news, Gujarat deputy chief minister and health minister Nitin Patel said that the all precautions are being taken by the medical teams and administration to cure them and prevent further spread of the highly infectious strain. All the four patients tested positive in RT-PCR test and were directly taken to the Sardar Vallabhbhai Patel (SVP) hospital in Ahmedabad where they are admitted for the past 11 days. The strain is defined as a set of 17 changes or mutations and has been termed as more infectious albeit not more virulent or deadly by health experts. ALSO READ: ArcelorMittal, JSW Steel among six firms keen on buying Uttam Galva Steel According to Ahmedabad Municipal Corporation (AMC) sources, no change in the course of treatment is being made as of now given the mild symptoms. The four patients with the new UK strain are kept in a separate ward at the hospital, amid lack of any major health complications so far. Apparently, two repeat samples of the 55 passengers from the UK who are in Ahmedabad have been taken even as they are being monitored for any viral traces or clinical symptoms. As such, there are clear SOPs issued by the Government of India about treatment and observation of such patients which are being followed, said health department officials. Results for another 15 samples sent to NIV Pune are awaited. According to authorities, finding the strain requires genome sequencing of the virus which takes more time than the regular procedures. However, all who returned from the UK and other European countries recently are under observation. Meanwhile, Gujarat has shown steady decline in the infections. According to the state health department's data, during the 24 hours ended on January 1, the state added 734 new Covid-19 cases and three deaths. The total number of active cases in the state is reported at 9663 with 4309 people succumbing to the virus. Total recoveries in Gujarat stand at 231,000.

FIMI urges Centre to withdraw protective support provided to domestic steel players

03 Jan, 2021, 04:09PM | Economic Times

New Delhi: Miners' body FIMI has urged the government to revisit its protectionist apprach towards indigenous steel manufacturers and said that domestic players are taking "undue advantage" by fixing steel prices almost at par with the international level despite all the protection and incentives. Union Transport and MSME Minister Nitin Gadkari last month said that he had sought Prime Minister Narendra Modi's attention towards 55 per cent hike in steel prices by players during the past six months, making projects unviable. "In order to take undue advantage and profiteering, the integrated steel companies fix up the steel prices almost at par with the international steel prices despite all the protection and incentives provided to steel industry backed up with secured iron ore and other raw material supply," Federation of Indian Mineral Industries (FIMI) Secretary General R K Sharma said in a letter to Principal Secretary to the Prime Minister P K Mishra. "This Federation would therefore request the Government of India to withdraw import duty @15 per cent and other undue protective support provided to Indian steel industry," he added. The Indian steel industry is well protected from international competition because of the 15 per cent import duty on steel as per Indian Customs Tariff, in addition to other protectionist measures, including minimum import price, antidumping and countervailing duties, Steel Import Monitoring System (SIMS), preference to domestically manufactured steel products in government procurement among others, Sharma said. Any firming up of steel demand propels the steel companies to raise price of steel unabatedly. Since COVID-19, the steel industry has been raising prices of steel very frequently, he said. During the last two months itself, the prices of steel have increased six times which is unprecedented, the letter said. While working out the price of steel, the Indian steel industry takes international price as base whereas it gets high grade iron ore at comparatively much lower prices, either from domestic sources or captive mines. At present, almost all the primary steel producers have captive iron ore mines where iron ore is available to them at transfer prices. Some of the primary producers of steel are exporting and selling iron ore in the open market. The consumption of high grade iron ore at lower than the international price, coupled with cheaper labour costs should give more and better quality steel at a competitive price. "The domestic steel industry hides these vital information and reaps windfall profits," Sharma said. With a view to reap windfall profits, the domestic steel industry fixes its products prices almost at par with international level. On the contrary, Indian iron ore prices are always much lower than the international prices. During the month of December, the domestic prices are cheaper to the extent of Rs 7,128 per tonne in comparison to international prices, it said. Apart from the price advantage for domestic iron ore and depressed coking coal, there is lot of cushion in the formula for working out the price of steel. "The average grade of iron ore required by domestic steel industry is 63 per cent Fe against the world average of 60 per cent Fe. However, it uses 1.65 tonnes of iron ore per tonne hot metal (world average of 1.37 tonnes) which is abnormally high and has lot of scope to make windfall profits," the letter said.

Budget: Steel sector seeks relief in customs duty on key raw materials

03 Jan, 2021, 11:35AM | Economic Times

NEW DELHI: The domestic steel industry is seeking reduction in basic customs duty on key raw materials like anthracite coal, metallurgical coke, coking coal , and graphite electrode in the upcoming Budget. The non-availability of these items in good quality and quantity hinders the growth of the steel industry, industry body Confederation of Indian Industry (CII) said in its Budget recommendations for the sector. The basic customs import duty on anthracite coal is 2.5 per cent. The availability of the said item in "good quality" is declining in the country and the steel industry may have to become totally dependent on import of these on a regular basis, the body said while suggesting a reduction in import duty to nil. For metallurgical coke, CII has suggested cutting the import duty to 2.5 per cent, from 5 per cent at present. "Low ash metallurgical coke, HS Code 2704, is a key raw material in steel (making) accounting for almost 46 per cent of the total raw material cost. Reduction in duty will help the domestic steel industry to be cost-competitive," it said. In its recommendations, CII has also suggested removing the import duty on coking coal. The duty on import of coking coal at present is 2.5 per cent. The industry body said the domestic supply of coking coal is not sufficient. Hence, to meet the domestic requirement, it has to be imported. Therefore, the duty should be reduced to nil. "The reduction will also help to rationalise the duty structure on met Coke, which is the end product of coking coal," it added. CII further said graphite electrode is a major consumable in steel making. The Indian steel producers are bound to import graphite electrodes as almost 60 per cent of domestic production of graphite electrode is exported, creating a shortage in the domestic market. "High duty merely increases the cost burden," it said, adding that it should be reduced to nil from 7.5 per cent at present.

Exports slip 0.8% in December 2020; trade deficit widens to USD 15.71 billion

02 Jan, 2021, 10:56AM | Economic Times

NEW DELHI: India’s exports shrank for the third straight month in December but the pace of contraction slowed to 0.8% from 8.74% decline in November even as the country’s trade deficit widened. Outbound shipments in December were $26.89 billion and in sectors like petroleum, leather and marine products witnessed contraction, preliminary data released by the commerce and industry ministry showed Saturday. The trade deficit in December widened to $15.71 billion, as imports grew by 7.6% to $42.6 billion due to a sharp increase in gold imports. Gold imports rose 81.8% in December 2020 to $2.01 billion. Other items that witnessed an increase in imports include electronic goods, vegetable oil, chemicals, textile yarn and fabric, machine tools, pharmaceuticals and precious & semi-precious stones. “India is thus a net importer in December 2020,” the ministry said in a statement. Among geographies, Singapore was the top destination for India’s exports last month with an increase of $241.63 million led by petroleum products and engineering goods, followed by the US and UK. Major commodities of export which recorded growth during the month under review include Oil meals, Iron ore, Carpet, pharmaceuticals, spices, electronic goods, fruits and vegetables, and chemicals. “The monthly exports have moved towards positive territory as major export products show signs of further revival as expected,” said Federation of Indian Export Organisations President, Sharad Kumar Saraf. Saraf said the order booking position have continuously improved besides more new orders in the offing. “Going ahead by this trend, we expect our inventories to be liquidated, adding further to the overall demand,” he said. In December 2020, oil imports declined 10.37% to $9.61 billion. Exports during April-December 2020-21 fell 15.8% to $200.55 billion compared to the same period last fiscal . Imports posted a decline of 29.08% to $258.29 billion. To give a leg up to exports, FIEO sought notification of the Remission of Duties and Taxes on Exported Products rates, addressing issues such as adequate availability of containers, softening of freight charges, release of the required MEIS benefits and clarity on SEIS benefits and risky exporters.

Steel producers, buyers, material suppliers fight over price hike

02 Jan, 2021, 01:21AM | Business Standards

Consumers and raw material providers of steel are up in arms against producers over rising prices of finished products, prompting them to write to the central government. Steel producers are justifying the price hike by pointing towards a shortage of iron ore, among other market factors. Mining companies that supply iron ore have sought a ban on export of steel products. According to representations reviewed by Business Standard, both producers and raw material suppliers have written to the Prime Minister's office. Consumers of steel, such as electronic manufacturers, are also seeking a regulation in the prices and a 15 per cent export duty. They have written to the ministry of power in this regard. In its letter, the Indian Steel Association (ISA) said the industry has “no recourse, but to raise prices of steel from time to time.” “Many steel companies in India with sub-optimal operating capacity showed substantial cash losses due to non-absorption of huge fixed costs for the quarter ended June 2020. Global steel prices fell sharply below $400 per tonne and domestic prices followed suit…when the global economy started opening up, international prices surged to over $750 per tonne from the bottom of $397 seen this year. As India is an open economy, steel prices move in accordance with the international price,” the ISA said. Steel manufacturers had focussed on exports during the lockdowns to stay afloat. With steel demand picking up, the prices have firmed up significantly. The ISA also said there is presently an “acute shortage of iron ore”. “The Indian steel industry is facing testing times as the iron ore supply has been badly squeezed. At the same time, the prices of iron ore have shown an unprecedented rise in both national and international markets. The limited supply and rising prices of iron ore, which is the basic raw material for making steel, has also led to high steel prices,” the ISA said. The Federation of Indian Mineral Industries (FIMI) said the ISA was ‘obfuscating the whole issue.’ Terming the steel price hike unjustifiable, FIMI said: “While working out the price of steel, the Indian steel industry takes international price as the base, whereas it gets high grade iron ore at comparatively much lower prices.” “Duplicity of steel producers about shortage of iron ore is well exposed as some of the primary steel producers are themselves exporting iron ore,” FIMI said. It also blamed the larger steel producers for the reduced production of iron ore and referred to the auction of iron ore mines in Odisha, whose leases expired in March. “The target production for April-October 2020-2021 was 28.70 million tonnes and actual production was 6.51 million tonnes. It can be seen that steel companies have failed to produce iron ore in accordance with the stipulation. Had the primary steel producers, who have got mines in the Odisha auction, been able to produce the quality mandated, there would not have been any ground for them to blame standalone miners for any alleged shortfall,” FIMI said. These operational mines were reauctioned after their leases expired and the statutory clearances were automatically transferred to the new winners. This was done to mitigate any shortfall in production that would have occurred for want to regulatory approvals. According to FIMI, primary steel producers got the larger share of these iron ore mines and are now the reason for any dip in raw material availability. The biggest brunt is being borne by steel consumers such as electronics manufacturers. In their representation, the Indian Electrical & Electronics Manufacturers’ Association sought a 15 per cent export duty on steel. It said: “The electrical equipment manufacturing industry is passing through difficult times due to unusual rise in the price of steel, which is a basic raw material for the industry. The content of steel, as a raw material, varies from 25 to 60 per cent in various equipment.”

Tumultuous 2020 rewards investors who stared down Covid-induced turmoil

02 Jan, 2021, 12:56AM | Business Standards

The bell has just tolled on one of the wildest years in Wall Street history, full of precipitous plunges, improbable rebounds and human tragedy. The S&P 500 ended on an up beat, with a 1.4 per cent gain in the holiday-shortened week. This pushed its CY20 gain to 16 per cent, an ending that would have seemed far-fetched in March. Investors needed nerves of steel to stay the course, and those who did were duly rewarded. Stocks jumped to all-time highs. Corporate bond yields hit record lows. Speculative mania sprang up everywhere from Bitcoin to IPOs. Anyone who invested $10,000 at the start of 2020 can likely point to a portfolio that looks positively bloated at year-end. An investor plunging into bets that looked speculative in January would have done even better. A once little-known biotech company, an electric carmaker trading at lofty multiples, and a loss-making producer of faddish exercise bikes are all up more than 400 per cent. The upshot: Most major asset classes have now posted a tidy profit thanks to the easiest financial conditions on record. For the legions of newbie traders entering the markets after much of the world locked down, the “stocks only go up” mantra served them well — whether they crowded into stay-at-home trades dominated by tech firms or piled into the reopening trade at the market’s bottom. Here’s a look at how a hypothetical investor would have fared putting $10,000 at the start of 2020 in a selection of stand-out assets: Virus victors The outbreak brought a boom for global healthcare-related stocks, including Malaysian glove manufacturers and biotech firms. One of the best pandemic plays of all was Moderna, netting a more than 400 per cent total return during the course of the year after regulators approved its Covid inoculation. Despite being first to market, Pfizer shares hardly budged. Stay-at-home trades As economies got shuttered, firms reaped gains if they enabled white-collar workers to carry on with business-as-usual, or something close to it. Zoom Video Communications was one such standout, quickly becoming a staple of homeschooling, office politics, weddings and bar mitzvahs. The company is down from dizzying highs but still handed investors a total return of almost 400 per cent in 2020. Assuming they bought the correct stock. Silver sparkles Unprecedented amounts of stimulus from central banks fuelled currency debasement fears in some parts of the investing community. Those seeking to protect their wealth as the dollar fell to a two-year low flocked to precious metals. Silver rose more than 40 per cent during the year — eclipsing the likes of gold and palladium. Goldman Sachs advised investors buy the metal to capture surging demand for solar energy installations. Electric dreams The playbook wasn’t just about the pandemic winners and losers. Bets on clean energy outperformed as countries like China, Korea, and Japan, and even oil majors such as BP pledged to reduce carbon emissions while investors wagered the Biden administration would set the US on a similar course. Electric carmaker NIO was the year’s best-performing stock, up over 1,100 per cent in total return terms, beating Tesla to the trophy. Best performing country Nigerian stocks, meanwhile, had an amazing year, as Airtel Africa, Dangote Cement and MTN Nigeria Communications generated huge gains. Local investors flocked to the market in search of returns as yields on government debt dropped. FUD for thought While speculative mania was everywhere in the second half of the year from developing-country stocks to clean energy, crypto grabbed much of the attention. Digital currencies in 2020 took steps toward mainstream adoption and a boom in decentralised finance rekindled interest among developers. Bitcoin topped $29,000 for the first time on December 30. Some investors worried that loose monetary policy will debase fiat currencies, while Elon Musk pondered whether it was possible to convert some of Tesla’s balance sheet into Bitcoin.

NMDC posts over 23% rise in iron ore output at 3.86 mn tonne in December

01 Jan, 2021, 08:07PM | Business Standards

State-owned NMDC on Friday posted over 23 per cent rise in iron ore output at 3.86 million tonne (MT) during December 2020. In the year-ago period, the miner had produced 3.13 MT iron ore from its mines, NMDC said in a BSE filing. The company's total sales during the month under review were at 3.62 MT, up 19 per cent from 3.04 MT in December 2019. NMDC, under the administrative control of the Ministry of Steel, is the country's largest iron ore miner, presently producing about 35 MT of iron ore annually from three fully mechanised mines in Chhattisgarh and Karnataka. Besides iron ore, it is also involved in exploration of a wide range of minerals like copper, rock phosphate, limestone, dolomite and gypsum. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Soma Mondal takes charge as SAIL chairperson; succeeds Anil Kumar Chaudhary

01 Jan, 2021, 04:39PM | Economic Times

New Delhi: State-owned Steel Authority of India Ltd (SAIL) on Friday said Soma Mondal has taken charge as its chairperson. Prior to this, she was the director (commercial) of SAIL , the country's largest steel-making company said. A 1984-graduate in electrical engineering from the National Institute of Technology-Rourkela, Mondal started her career as a graduate engineer trainee at NALCO and rose to become director (commercial) at NALCO. She joined SAIL in 2017 as the director (commercial), it said. She succeeds Anil Kumar Chaudhary , who superannuated on Thursday after serving the company for 36 years in various roles including junior manager and director (finance). Mondal said, "Our immediate focus is to improve the topline (revenue) and bottomline (profit) of the company. We are charting out all strategies to improve value for all our stakeholders and make it structurally stronger." She added SAIL has a rich legacy with enormous contributions from its employees and leadership over the decades.

Soma Mondal takes over from Anil Kumar Chaudhary as SAIL Chairman

01 Jan, 2021, 04:25PM | Business Standards

Soma Mondal has taken over as Chairman of Steel Authority of India Limited (SAIL) from Friday. She was the Director (Commercial) of SAIL prior to this. Before joining SAIL as a Director, Mondal was the Director (Commercial) at fellow Central public sector enterprise, National Aluminium Company Limited (NALCO). In a company statement, Mondal said that the first target is to improve the financial performance of SAIL. “Our immediate focus is to improve the top-line and the bottom-line of the company. We are charting out all strategies to improve value for all our stakeholders and make it structurally stronger”, she said. Mondal was instrumental in introducing new marketing strategies and products at SAIL enriching the company’s product basket. Under her leadership, the company launched niche branded products like NEX (Structural) and SAIL SeQR (TMT bars), a company statement said.

Global challenge of Covid has given scope to innovate, says PM Modi

01 Jan, 2021, 01:54PM | Business Standards

Prime Minister Narendra Modi on Friday laid the foundation stone of the Light House Projects (LHP) under the Global Housing Technology Challenge (GHTC-India) and said the worldwide challenge of Covid-19 has given the scope to innovate and incubate with new technology. The six LHP has been conceptualised by the Union Ministry of Housing and Urban Affairs. The project aims to identify and mainstream several innovative technologies from across the world which are sustainable and disaster-resilient. Speaking on the occasion, Modi said: "This global challenge of Covid-19 has given us the scope to innovate and incubate with new technology. From today, work is starting on six Light House Projects at different locations. These projects will be completed by modern technology and innovative processes." The Prime Minister said at one time, housing schemes were not the priority for the Central governments as much as it should have been. "However, we know that transformation is impossible without all-around development. The country has adopted a new approach and a different road ahead," he said. He also said that these six projects are really like lighthouses. These six projects will show a new direction to the housing construction in the country. "These projects are incubation centres for our planners, engineers, architects and students to learn from. They will also be able to experiment on new technology," Modi said. The Prime MInister said to promote research and innovation, we're running the ASHA India project. Through this, we're developing new and cheap technology to build houses for the 21st century. Citing examples of the use of new technology in construction, Modi said that in Ranchi, we are using 3D construction system from Germany. In this pattern, every room will be built separately and then the entire structure will be connected like lego blocks. "In Agartala, we are building homes using steel frame technology from New Zealand. This is to prevent the houses from the perpetual risk of earthquakes," he said, adding, "In Lucknow, we are using technology from Canada. Plaster and paint would not be needed in this and pre-built walls will be used." Earlier in the day, Modi tweeted, "On the first day of 2021, will be taking part in a programme aimed at transforming India's urban landscape. Will lay the foundation stone of Light House Projects and distribute PMAY (Urban) and ASHA-India Awards." Under the project, LHPs will be constructed in Agartala, Lucknow, Indore, Rajkot, Chennai and Ranchi, with each location getting more than 1,000 houses for the Economically Weaker Sections (EWS). The period of construction is maximum 12 months from the date these sites are handed over to the construction agency after all statutory approvals. Union Minister for Housing and Urban Affairs Hardeep Singh Puri, and Chief Ministers of Tripura, Uttar Pradesh, Madhya Pradesh, Gujarat, Tamil Nadu, Andhra Pradesh respectively, also addressed the gathering. --IANS aks/dpb (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Core sector contraction expands in November after two months of moderation

31 Dec, 2020, 06:33PM | Business Standards

The oft-repeated apprehension of economic recovery fizzling out post-October is turning out to be true, at least in the crucial eight-industry core sector. After the contraction narrowed to just one per cent in September and 0.9 per cent in October, the fall got accentuated to 2.6 per cent in November despite it being a festival month. This may have repercussions on the index of industrial production (IIP) even as some economists believe consumer goods might offset the impact to some extent. Core sector accounts for 40.27 per cent of IIP. "IIP growth can be in the range of 0-1 per cent as consumer goods are likely to remain upbeat for this month given the festival season factor," said Madan Sabnavis, chief economist at CARE Ratings. Aditi Nayar, principal economist at Icra, projected IIP to contract in November instead. "Based on the available information, we expect the IIP to revert to a temporary but unpalatable 2-5% contraction in November," she said. That would be quite a dampener as IIP rose 3.6 per cent in October. Nayar attributed core sector contraction to the base effect, fewer working days on account of a shift in the festive calendar, and a potential step-down in production following the satiation of pent-up demand. ALSO READ: HCL Tech's Covid-hit 100-acre Lucknow project gets six months' extension The core sector output declined for the ninth consecutive month. Barring coal, fertilisers and electricity, all sectors -- crude oil, natural gas, refinery products, steel and cement -- saw a fall in output in November. Only three sectors, namely, crude oil, natural gas and refinery products, had contracted in October. Core sector output dropped by 11.4 per cent during the first eight months of the current financial year as compared to a growth of 0.3 per cent in the same period of the previous year. The output of crude oil, natural gas, refinery products, steel and cement declined by 4.9 per cent, 9.3 per cent, 4.8 per cent, 4.4 per cent, and 7.1 per cent, respectively, in November this year. On the other hand, coal and electricity sector output grew by 2.9 per cent and 2.2 per cent during the month under review. Fertiliser sector growth stood at 1.6 per cent as against 6.3 per cent in October. India's economy shrank unprecedented 23.9 per cent in the first quarter and 7.5 per cent in the second quarter of the current financial year.

Current domestic coal production inadequate to meet country's demand: Government

31 Dec, 2020, 06:27PM | Economic Times

New Delhi: The government on Thursday said the current domestic production is unable to meet the country's demand , even though the country is the world's second-largest producer of fossil fuel and the fifth-largest nation in terms of coal deposits . Currently, India is producing about 729 million tonnes of dry fuel, the coal ministry said in a statement. "However, it is a fact that the domestic production is not able to meet the demand of coal in the country," the statement said. Last year, India imported 247 million tonnes (MT) of coal and spent Rs 1.58 lakh crore worth of foreign exchange. Commercial auction of coal mines along with transparent measures taken by the Centre has come at an opportune time to bridge the mismatch between demand and supply of coal in the country. "This will not only provide a huge opportunity for employment in the backward regions but will also save foreign exchange to the extent of almost Rs 20,000 crore to Rs 30,000 crore per year," it said. These reforms will also have an effect on other sectors dependent on coal. With an increase in coal production, the positive impact will also be felt on production and processing in steel, aluminum, fertilisers and cement sectors. The auction of coal blocks for commercial mining was launched in June with 38 blocks in the first tranche. Out of the said blocks, the auction process was successfully completed for 19 blocks in November. Total annual revenue generation from the auction is estimated at Rs 6,656 crore, considering production at aggregated peak rate capacity level of 51 million tonnes per annum. The total upfront amount of Rs 262 crore will be received by the states during the financial year 2020-21, and the remaining amount of Rs 786 crore will be received subsequently based on the milestones mentioned in the bid documents. Import substitution is one of the topmost priorities of the government. An inter-ministerial committee has been constituted for the purpose. Towards the goal of Aatmanirbhar Bharat, the ministry along with all stakeholders is actively pursuing to achieve the mission of import substitution.

Eight core industries' output contracts 2.6% in November

31 Dec, 2020, 05:38PM | Business Standards

Contracting for the ninth consecutive month, the output of eight core infrastructure sectors dropped by 2.6 per cent in November, mainly due to decline in production of natural gas, refinery products, steel and cement. The production of eight core sectors had recorded a growth of 0.7 per cent in November 2019, data released by the commerce and industry ministry showed on Thursday. Barring coal, fertiliser and electricity, all sectors -- crude oil, natural gas, refinery products, steel and cement -- recorded negative growth in November 2020. During April-November, the sectors' output dropped by 11.4 per cent as compared to a growth of 0.3 per cent in the same period of the previous year. The output of crude oil, natural gas, refinery products, steel and cement declined by (-)4.9 per cent, (-)9.3 per cent, (-)4.8 per cent, (-)4.4 per cent, and (-)7.1 per cent, respectively, in November this year. On the other hand, coal and electricity sector output grew by 2.9 per cent and 2.2 per cent during the month under review. Fertiliser sector growth stood at 1.6 per cent as against 13.6 per cent in the same month last year. The eight core industries account for 40.27 per cent of the IIP.

Isgec Heavy Engineering shares advance 12% on heavy volumes

31 Dec, 2020, 01:36PM | Business Standards

Shares of Isgec Heavy Engineering rallied 12 per cent to Rs 344 on the BSE in intra-day trade on Thursday on the back of heavy volumes. At 01:23 pm, the stock was trading 10 per cent higher at Rs 337, as compared to 0.06 per cent rise in the S&P BSE Sensex. Around 655,000 equity shares, representing 0.88 per cent of total equity of the industrial machinery manufacturer, have changed hands on the BSE, so far. On an average 138,000 equity shares were traded daily in past two weeks, data shows. In the month of December, the stock rallied 34 per cent, against 8 per cent rise in the S&P BSE Sensex. On December 17, Isgec Heavy Engineering announced that it has secured a new order valued at Rs 431 crore. The company said the said order is from KPR Sugar & Apparels Limited to set up a 10,000 TCD sulphurless sugar plant, 40 MW CoGeneration plant, 60 TPH incineration boiler and 7.5 MW power plant for zero liquid discharge system for client’s distillery plant on EPC basis. Earlier, in a separate exchange filing, on December 12, the company announced that it has signed a technology license agreement with BHI FW Corporation of the United States (BHI FW) for combustion system modifications of tangentially fired boilers. This license agreement will enable Isgec to utilize within India the proven foster wheeler technology for engineering, designing, manufacturing, supplying and erecting tangential low NOx (TLN) equipment in order to modify combustion systems of tangential fired boilers. The company said there is increased interest for this technology by its clients in order to comply with the latest NOx emission norms as published by the Ministry of Environment, Forest and Climate Change in India. Isgec manufactures among other process equipment, presses, iron & steel castings, and boiler pressure parts. Isgec’s portfolio includes turnkey projects for setting up air pollution control equipment, boilers, power plants, sugar plants, distilleries, factories, industrial water treatment facilities and material handling facilities.

Fresh IBC suspension, pandemic may hit stressed assets resolution pace

31 Dec, 2020, 01:23PM | Business Standards

Suspension of fresh proceedings under the insolvency law as well as the NCLT and the appellate tribunal switching to virtual hearings due to the coronavirus pandemic seem to have put the brakes on the pace of resolution process for stressed assets and realisation for creditors. To provide relief for entities impacted by the pandemic, the government has suspended fresh proceedings under the Insolvency and Bankruptcy Code (IBC) starting from March 25, when the nationwide lockdown was imposed to curb spreading of coronavirus infections. The suspension has been extended till March next year. While the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) are conducting virtual hearings with a new set of standard operating procedures, experts are of the opinion that the pandemic has caused an overall slowdown in the resolution process. For most part of 2020, both the NCLT and the NCLAT functioned without a full time President or Chairperson, respectively. Besides, the need for more benches and adequate number of judicial and technical members along with presiding officers was also felt. A recent report by rating agency Icra said that creditors may realise just Rs 60,000-65,000 crore in the current fiscal through successful resolution plans under the IBC compared to about Rs one lakh crore realised in 2019-20, which will be a decline of around 40 per cent. Legal experts have apprehensions that once fresh filings resume under the IBC, the NCLT and the NCLAT would witness a substantive jump in the number of fresh cases of default. The system needs to be ready to face the expected wave, they opined. "There could be a tremendous rush," senior advocate Abhinav Vashisht said, adding that the tribunals would have to prioritise urgent matters for hearing given their present strength. Moreover, the number of benches should be increased and vacancies should be immediately filled after retirements, he added. "They may take up more urgent matters and some would be taken up later but unless you increase the number all over the place, it would be difficult to handle if you have a gap of a year-and-a-half of the non-filings and with pandemic leading to further insolvencies," Vashisht said. According to senior advocate Ramji Srinivasan -- who has appeared in several key cases, including IL&FS -- the government's decision to provide a holiday against default occurring after the lockdown and raising the threshold of the defaults have had both a positive and a negative impact. "The positive impact is that it has proved to be a support and a shield for businesses finding themselves in liquidity crisis... while the negative impact has been... to slow down the growth of IBC," he said. Another negative impact is that on "smaller businesses who were owed smaller amounts by bigger businesses and are facing difficulty in recovering amounts due to them," he noted. In 2020, the NCLAT did not get a regular Chairperson after Justice S J Mukhopadhaya retired on March 15. In October, the government had again extended the tenure of Justice B L Bhat as the officiating Chairperson of the NCLAT till the end of this year. Moreover, judicial functioning of the appellate tribunal was disrupted several times as some of its staff and members tested positive for coronavirus. The situation had also caught the attention of Supreme Court, which asked the NCLAT to find a way on how to resume online hearing while its functioning remains suspended and observed "the doors of justice cannot be closed". The NCLAT passed more than 1,050 judgements this year in matters related to the IBC, Companies Act and Competition Act, as per its website. In 2021, the appellate tribunal is expected to pass orders on several ongoing insolvency matters such as those related to Bhushan Power & Steel, Jaypee Infratech and IL&FS. This year, the NCLAT passed several key judgements, including setting aside the government's plea to supersede the board of 63 Moons Technologies and dismissing pleas of auditors in a case related to alleged fraud at IL&FS group firm IFIN. Among other matters, the appellate tribunal gave conditional go-ahead to NBCC for buying Jaypee Infratech under the IBC, upheld Adani group firm's takeover of Dighi Port and set aside some resolution plans. The NCLAT also held that successful resolution applicants cannot be permitted to withdraw their offer. In another matter, it ruled that insolvency proceedings cannot be initiated once the debt is converted into capital. In an unprecedented move, a three-member NCLAT bench, in September, said a previous judgement passed by a five-member bench related to deciding the time frame for initiating insolvency proceedings against a company, was "contrary to settled law" and referred it for reconsideration. However, the five-member bench of the NCLAT turned down the reference terming it as "misadventure", "inappropriate" and crossing the red line. Meanwhile, the NCLT -- which has its principal bench in the national capital and fourteen other benches across the country -- approved resolution for 78 corporate debtors as on September 30, 2020 , according to data from the Insolvency and Bankruptcy Board of India (IBBI). In 2019, the NCLT had approved 122 resolution plans. According to NCLT Bar Association Secretary Saurabh Kalia, the NCLT's functioning like other courts and tribunals has been affected, resulting in the regular matter not being taken up. "Though the existing benches have tried to take up urgent matters, lack of a sufficient number of members in various benches and infrastructural issues have not helped in the functioning of the NCLT. Appointment of a sufficient number of members have always been an issue with the NCLT and the same persists even today," he said. He also noted that a sheer number of matters with the NCLT requires sufficient number of members without which the litigant as well as the corporate suffer. The tribunal ordered liquidation in 228 cases in the first nine months of this year after debtor companies failed to attract any resolution plan/ probable buyer. After the retirement of Justice M M Kumar as the NCLT President, the government-appointed B S V Prakash Kumar as Acting President of the tribunal. According to Vashisht, despite several odds, both the NCLT and the NCLAT have functioned during the pandemic and have done a tremendous job. "Once the vaccine is out, we feel that there could be a hybrid model of both -- virtual hearing and physical hearing -- with proper precautions and I do expect only better things to come forward," he said. Srinivasan said that after some initial hesitation, and plenty of trial and error, courts have slowly but steadily adopted virtual hearings and video conferences as a minimum acceptable alternative. This is welcome and heralds a possible change that will continue in some form or the other going ahead, he added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Vedanta wins Radhikapur west coal block in Odisha

31 Dec, 2020, 12:58PM | Economic Times

NEW DELHI: Vedanta Ltd has emerged as the highest bidder for Radhikapur west coal block located in Angul district of Odisha at a distance of about 190 km from the company's Jharsuguda aluminium smelter . The coal block is an optimal fit for Jharsuguda smelter, given its logistical location and annual capacity, the company said. The mine has total reserves of 312 million tonnes and an approved per annum extraction capacity of six million tonnes. "Once operational, it will provide fuel security and improve power availability. It will also further strengthen the company's aluminium and power operations and performance," said Vedanta. Vedanta is one of the world's leading oil and gas and metals company with significant operations in oil and gas, zinc, lead, silver, copper, iron ore, steel and aluminium and power sectors across India, South Africa, Namibia and Australia.

After Covid pandemic blows in 2020, India's exports may rebound in new year

31 Dec, 2020, 12:09PM | Business Standards

After being severely hit by the COVID-19 pandemic this year, the country's exports growth is expected to rebound in 2021 on the back of recovery in economic activities and demand worldwide. However, the uncertain global trade situation due to rising protectionism, which adversely impacted exports in 2019, could have a bearing on the country's outbound shipments in the coming months. Exporters' community is hopeful that outbound shipments would start recording healthy growth rates from April 2021, helped by growth in demand in developed as well as developing countries, and effective COVID-19 vaccines that may bring life back on track the world over. In October, the World Trade Organisation (WTO) forecasted a 9.2 per cent decline in the volume of world merchandise trade for 2020, followed by a 7.2 per cent rise in 2021. These estimates are subject to a high degree of uncertainty since they depend on the pandemic situation and the responses of governments. "The first quarter in 2021 will remain subdued because of issues related to MEIS (Merchandise Export from India Scheme) are not yet resolved. We are expecting that the issues would be resolved in the coming months and the situation will turn normal for exports from April 2021 onwards," Federation of Indian Export Organisations (FIEO) President Sharad Kumar Saraf said. He said that order books of exporters are good but issues-related to MEIS, high freight rates and raw material prices are currently hurting the shipments. FIEO Director General Ajay Sahai said 2021 would bring a ray of hope and optimism for the exporting community as there are expectations that the worst effect of COVID-19 will vanish and effective vaccines will bring life back on track. "We are confident that a V-shaped recovery will be witnessed in world trade and we will recover much more from what we lost in 2020," he said. While noting that the first and second quarter of 2020-21 were pretty bad, he said, "we may end 2020-21 with exports of around USD 290 billion". Professor Rakesh Mohan Joshi from the Indian Institute of Foreign Trade (IIFT) said steps taken by the government to boost economic activities would help exports turn positive next year. "However, there is a need to undertake structural reforms to increase the competitiveness of Indian products in the global markets," Joshi added. Founder Chairman of Trade Promotion Council of India (TPCI) Mohit Singla said there is hope as well as apprehension surrounding the global trade ecosystem. "Clearly this year, some of the sectors have been doing well such as agriculture and processed food, and pharmaceuticals. Broadly, these are the sectors which will see sustained rise next year too," Singla said. Hand Tools Association President S C Ralhan said that issues like containing shipping freight rates would help push overall exports. He added that rising steel prices, which have impacted the engineering sector, also needs to be looked upon. Nischal Arora, Partner, Nangia & Co LLP, said that in 2021, "we are likely to see a sharp increase in exports primarily due to a low base set in 2020". "Looking beyond 2021, India is on track to be a major export hub as consumption driven economies like Western Europe and North America look to diversify their supply chains," Arora added. From June 2019 till November 2020, exports have registered positive growth only in three months -- July 2019, February and September this year. Fall in shipments of key sectors like petroleum, engineering and gems and jewellery had led to an overall contraction in exports. The contraction hit a record in March this year when the shipments declined by over 60 per cent. During the year, the sectors, which helped exports include processed food, pharmaceuticals, medical and diagnostic products, technical textiles, chemicals, plastics and electronics. The commerce ministry is taking steps to boost domestic manufacturing and exports. It has started the exercise to formulate the new foreign trade policy for the next five years to push the country's outbound shipments. The government has also constituted a three-member committee for determination of ceiling rates under a scheme for reimbursement of taxes and duties to exporters. The reimbursement of taxes under the Remission of Duties and Taxes on Export Products (RoDTEP) such as duty on power charges, VAT on fuel in transportation, farm sector, captive power generation, and mandi tax, stamp duty and central excise duty on fuel used in transportation would make Indian products competitive in global markets. Since 2011-12, India's exports have been hovering at around USD 300 billion. In 2019-20, it dipped by around five per cent to about USD 315 billion. Promoting exports will help a country create jobs, boost manufacturing and earn more foreign exchange. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

2020: A year of raging Covid, gas spill, floods, massive protests for Assam

31 Dec, 2020, 11:12AM | Business Standards

Assam had little luck escaping the ravages of COVID-19 in a year filled with myriad developments for the northeastern state from aggressive protests against the Citizenship Amendment Act and birth of new political parties to a major industrial disaster. Assam's tryst with the killer virus happened on March 31, when a returnee from outside the state tested positive for COVID-19 in Silchar, and since then over 1,040 people have died from the contagion and more than 2,16,000 afflicted. The Assam government adopted the policy of 'Ruthless Quarantine with A Human Heart' as nearly 30 lakh people underwent both institutional and home isolation. It also set up 550 dedicated COVID-19 hospitals and health centres to deal with the pandemic, and provided Rs 2,000 each to people from the state who were stranded outside during the nationwide lockdown. The widespread agitation against the contentious Citizenship Act in 2019 spilled onto 2020 with renewed vigour before coming to an abrupt end owing to the lockdown in March. The Assam government quelled the protests with an iron hand, arresting key leaders like Akhil Gogoi, who opposed tooth and nail the law that seeks to grant citizenship to Hindu, Sikh, Parsi, Buddhist and Christian migrants who fled religious persecution in Pakistan, Afghanistan and Bangladesh. The anger of the indigenous Assamese was triggered by the concern that they would be reduced to a minority as Hindu Bengalis and illegal Muslim migrants from neighbouring Bangladesh posed a threat to their land, language and culture. The Centre and the state government made efforts to assuage the Assamese people with the promise that they were committed to constitutionally safeguarding their political, linguistic, cultural and land rights, and urged the High Level Committee on Implementation of Clause Six of the Assam Accord, set up last year, to submit its report at the earliest. The 13-member committee submitted its report in February, but there was no further action or word on it, prompting the All Assam Students' Union (AASU) to make the report public on August 11. Chief Minister Sarbananda Sonowal, however, asserted that his government and the Centre are committed to implementing the report. There was also no further progress on the National Register of Citizens, the final list of which had last year excluded the names of 19,06,657 people. A total of 3,11,21,004 names were included out of 3,30,27,661 applicants. In December, NRC state coordinator Hitesh Dev Sarma told the Gauhati High Court that it was only a "supplementary list" and the final document is yet to come out. Over 10,000 names were either wrongly included or excluded and necessary orders have been issued to delete nearly 4,800 "ineligible persons" from the document, Sarma said in an affidavit. Two new political parties were floated during the year as the state geared up for assembly elections in 2021 The AASU and the Asom Jatiyotabadi Yuba Chatra Parishad (AJYCP) formed the Asom Jatiyo Parishad (AJP), while the Krishak Mukti Sangram Samiti (KMSS) created the Raijor Dal. Both the parties have agreed on an alliance, but details are yet to be worked out. The opposition Congress and the AIUDF announced that the new parties will be part of a 'Grand Alliance' to prevent the BJP and its allies from returning to power in the state, with former chief minister Tarun Gogoi playing an important role in the initiative. Gogoi, unfortunately, tested positive for the coronavirus in the last week of August and succumbed to post- COVID complications on November 23, creating a void in the party and resulting in defections. The ruling BJP, late in the year, emerged victorious in the Bodoland Territorial Council (BTC) and Tiwa Autonomous Council polls, and asserted that the outcome was like victory in a semi-final match before the assembly elections. Assam was also witness to one of its worst industrial disasters in the pandemic year, after Oil India Ltd's gas well at Baghjan in Tinsukia district started spewing gas uncontrollably. Three persons lost their lives due to a fire incident and high-voltage electric shock. The well was finally 'killed' and the flames doused after 173 days, but not before forcing more than 3,000 people to leave their homes, besides damaging the bio-diversity of the neighbouring Maguri-Motapung wetlands and the Dibru- Saikhowa National Park. Another major environmental issue that rocked the state was alleged illegal mining by Coal India Ltd inside the Dehing-Patkai Wildlife Sanctuary, with the state government ordering an inquiry into it and PILs filed in the Gauhati High Court. Floods, which create havoc in the state year after year, were particularly devastating, as they coincided with the pandemic, affecting over 60 lakh people in 29 districts. In the course of the year, the United Liberation Front of Asom (Independent), which is yet to come to the negotiating table, suffered a serious blow when its deputy commander-in- chief Dhristi Rajkhowa was apprehended by the Army in November and, along with 18 other ULFA militants, surrendered before the state government in December. Scams also made headlines in Assam in 2020, including the sub-inspector recruitment fraud in which a retired DIG and a serving SP were among 40 people arrested. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Commodity markets to end 2020 on strong note with vaccine, stimulus news

31 Dec, 2020, 10:25AM | Business Standards

By Naveen Thukral and Gavin Maguire SINGAPORE (Reuters) - Global commodity markets are poised to end 2020 on a strong note, with recovering demand and widespread stimulus packages buoying prices after a roller coaster ride caused by the global coronavirus pandemic. Roll-outs of vaccines to combat the virus and trillions of dollars' worth of fiscal support are expected to boost investment and spending in 2021. "It's been a tumultuous year for the commodity market, as the oil meltdown in March changed how we measure and gauge risk in the entire commodity sphere," Stephen Innes, chief global market strategist at brokerage Axi, told Reuters. Graphic: Price chart of key commodities markets in 2020 https://fingfx.thomsonreuters.com/gfx/ce/jbyvrbdrave/KeyCommds2020.png "But thanks to the Fed's unwavering support to dig the U.S. and global economy out of a hole," commodity markets have flourished, he added. Dalian iron ore futures and silver are up around 50% in 2020, leading the gains in commodity futures. ENERGY Overall, spot Asian LNG led the energy complex, gaining more than 140% this year on booming demand and outages in key suppliers. Global oil futures have more than doubled from their decade lows hit in April, closing out a historic year that marked the first-ever negative prices for WTI. Graphic: Price chart of key global energy markets in 2020 https://fingfx.thomsonreuters.com/gfx/ce/xlbvgmdoevq/Energy2020.png "The recovery from the pandemic will accelerate once a vaccine is widely available, further supported by ongoing fiscal and monetary stimulus from governments around the world," ANZ said in a note. "A strong global growth pulse will likely see the U.S. dollar weaken, which is normally a prerequisite for a rally in commodity markets." Oil prices plunged in March and April when China and other countries went under lockdown to curb the spread of COVID-19, choking off global fuel demand. Graphic: 2-year price chart of key global energy markets https://fingfx.thomsonreuters.com/gfx/ce/rlgvdqelypo/2YearEnergy.png Vaccine rollouts have raised hopes for a demand recovery in 2021, brightening the outlook for all energy products, with Goldman Sachs forecasting Brent to hit $65 a barrel in the next 12 months. METALS Dalian iron ore and Comex silver were the top performing major metals futures in 2020. Graphic: Price chart of key global metals markets in 2020 https://fingfx.thomsonreuters.com/gfx/ce/xegpbbwmrpq/Metals2020.png Iron ore was driven by a combination of booming demand in China and a drop in supplies from key producer Brazil. In precious metals, Comex silver gained 47.9% and Comex gold 25% on the back of a rush of buying by investors seeking a store of value amid rampant global central bank spending. In industrial metals, benchmark three-month copper on the London Metal Exchange rose 27% this year, becoming the sector's best performer. Graphic: 2-year price chart of key global metals markets https://fingfx.thomsonreuters.com/gfx/ce/bdwvkqnegvm/2YearMetals.png More gains in copper and other base metals are expected in 2021 as the China-led economic revival expands to other regions. "We will see an overall price surge across metals at least in the first half of the year (of 2021). Money is still trickling through the global economy," said commodities broker Anna Stablum of Marex Spectron. AGRICULTURE In agriculture, Dalian corn futures were the top performing market in 2020, followed by U.S. soymeal. Graphic: Price chart of key global agriculture markets in 2020 https://fingfx.thomsonreuters.com/gfx/ce/qzjpqdgwkvx/Agri2020.png U.S. corn and soybeans are on track for their strongest yearly gains since 2010, while wheat is poised to be up for a fourth straight year. Cattle and hogs look set to finish down. U.S. corn's gains caught many traders by surprise. "It was an absolutely unprecedented rally, right into the teeth of harvest. I think that is what we will remember the most, how this market hit the contract lows there during the second week of August, then turning it on and never looking back," said Jeff French, analyst at Top Third Ag Marketing. Soymeal, up 40%, and palm oil, up almost 18%, were other big gainers. Graphic: 2-year price chart of key global agriculture markets https://fingfx.thomsonreuters.com/gfx/ce/qmypmqwkgpr/2YearAgs.png London cocoa dropped around 5% after rising for the last two years. Raw sugar and white sugar are up for a second year in a row. (Reporting by Naveen Thukral and Gavin Maguire; additional reporting by FMai Nguyen in HANOI, Emily Chow in SHANGHAI, Florence Tan in SINGAPORE, Christopher Walljasper and Karl Plume in CHICAGO. Editing by Gerry Doyle)

Stocks to watch: Tata Steel, Adani Green, Vedanta, Infosys, United Spirits

31 Dec, 2020, 08:14AM | Business Standards

Nifty futures on SGX were trading at 13,984, up nearly 0.02 per cent, indicating a flat start for domestic equity indices on Thursday. Here are the top stocks that might move your market today: Tata Steel: In its outlook for 2021, MD & CEO TV Narendran said the company is optimistic about demand for steel in India. The company expects steel demand to grow proportional or higher to the GDP growth in FY22. It also expects global steel prices to remain firm as China is not expected to export large volumes. Adani Green: Adani Solar Energy Kutchh Two Private Limited, a wholly-owned subsidiary of Adani Green Energy Limited (AGEL) has commissioned a 100 MW solar power project at Khirsara, Gujarat, ahead of the schedule. The project has a power purchase agreement with Gujarat Urja Vikas Nigam Ltd (GUVNL) at Rs 2.44/kWh (unit) for 25 years. Vedanta: Vedanta promoters cannot sell or create any security on shares they hold in the group as part of the terms attached to the recent $1.4 billion fund raising -- conditions which technically fall within the definition of 'encumbrance' but no pledge on shares has been created, the company said. It also emerged as the highest bidder for the Radhikapur West coal block in Odisha. United Spirits: CRISIL has reaffirmed its long-term rating of AA+/Positive and short-term rating of A1+ for the total bank loan facilities worth Rs 3,925 crore. Further, the rating agency has reaffirmed AA+/Positive rating for NDCs worth Rs 750 crore and A1+ rating for commercial paper worth Rs 500 crore. Infosys: Joint venture partner in Saudi Arabia has filed a lawsuit in a California court alleging that Infosys violated US law on corruption, a media report said. SPC alleged that Infosys falsely claimed that it was not making money from certain contracts and requested it to reduce its 8 per cent commission by at least half or waive it off completely, which led to financial losses. Union Bank: Shareholders of Union Bank of India on Wednesday approved the bank's proposal for raising up to Rs 6,800 crore equity capital to fund business growth. Chemcon Speciality Chemicals: Plutus Wealth Management LLP bought 10 lakh shares or 2.73% stake in Chemcon Speciality at Rs 428.52 per share. GMR Infrastructure: Promoter GMR Enterprises sold 6.50 crore shares or 1.08% stake in the company at Rs 27.09 per share. STFC: Shriram Transport Finance has approved and allotted senior secured rated, listed redeemable NCD of the face value of Rs 10 lakh each on a private placement basis. Fortis Healthcare: ICRA has upgraded the long-term rating for the line of credit of Fortis Healthcare's subsidiaries- SRL Limited and SRL Diagnostics Private Limited. Indian Bank: Indian Bank on Wednesday said it has raised Rs 392 crore through perpetual bonds YES Bank: YES Bank said its board has approved promotion of Niranjan Banodkar as the Group Chief Financial Officer (CFO) and Anurag Adlakha as the Group Chief Human Resources Officer following the recommendations of the nomination and remuneration panel and the audit committee. Ansal Properties: The company said that it has agreed to sell its entire 66.24 per cent stake in IT SEZ in Greater Noida to Migsun group. Fineotex Chemical: Nippon India Mutual Fund has acquired 66.08 lakh shares or 5.96% of the total shareholding in Finotex Chemical. RITES: The company on Wednesday declared an interim dividend of Rs 5 per share on face value of Rs 10 each. Filatex India: The company's proposed installation of captive rooftop solar power generation of 1.0 MW at Dahej and 0.4 MW at Dadra has been successfully completed and commenced commercial operation w.e.f. December 30, 2020.

Competition Commission gives nod to 8% acquisition of API Holdings by TPG

30 Dec, 2020, 09:50PM | Business Standards

Competition Commission of India (CCI) on Wednesday said it has cleared the proposed acquisition of around 8 per cent stake by private equity major TPG in API Holdings. API Holdings is the parent entity of API Holdings Group and of Pharmeasy, a leading e-pharmacy player. "Commission approves acquisition of 8% (approx.) shareholding of API Holdings by TPG," the fair trade regulator said in a tweet. In June, a composite scheme of amalgamation filed by API Holdings was approved by the National Company Law Tribunal (NCLT), as per a notice filed with the regulator. Recently, CCI had approved the proposed combination of Medlife and API Holdings. In another tweet, the watchdog said it has cleared the acquisition of 51 per cent stake in Mukand Sumi Special Steel Ltd (MSSSL) by Jamnalal Sons Pvt Ltd (JSPL). According to a combination notice filed with CCI, both JSPL and Mukand are part of the same group and the proposed combination is an intragroup transfer. JSPL is an unregistered core investment company holding shares in various Bajaj Group Companies. MSSSL is into manufacturing, marketing, selling and distribution of special and alloy steel hot rolled bars and hot rolled wire rods. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

New vistadome coaches will make train travel more memorable: PM

30 Dec, 2020, 08:07PM | Business Standards

Prime Minister Narendra Modi on Wednesday praised the newly designed vistadome coaches developed by the Integral Coach Factory and said the comfort they will provide will make journeys more memorable. The vistadome tourist coaches, which have larger viewing area including roof top glass and 44 seats for passengers that can rotate up to 180 degrees, completed the 180 kmph trial run on Tuesday. "Comfort and cutting edge technology! Will make train journeys more memorable," the PM said in a tweet responding to Railway Minister Piyush Goyal's post on the microblogging site introducing the new coaches. "It is rightly said, 'Journey is best measured in terms of memories rather than miles'. Take a look at the new Vistadome coaches of Indian Railways that will give an unforgettable travel experience to passengers and will ensure that they truly have a journey to remember," tweeted Goyal. The coach also has a Wi-Fi-based passenger information system and for the first time the vistadome coach has been built on the LHB platform, which is safer. Among other stand-out features of the new vistadome coaches are that they are equipped with air-spring suspension in secondary stage for better ride comfort, large glass windows and glass roof that boast electrically controlled opalescence, transparent roof for the passengers to get a panoramic view of their journey, and observatory lounge with a larger window at one end. In the newly built coaches, a mobile charging socket has been provided for each passenger below the seat armrest, an entertainment system integrated with digital display screens and speakers for music lovers. "Content on Demand" Wi-fi facility has been provided on personal gadgets of passengers, wider entrance doors for persons with disabilities on wheelchairs and automatic sliding doors at the compartment's entry on both sides. The coaches are connected with GPS-based Public Address-cum Passenger Information System (PAPIS), sunk-in type LED destination board, stainless steel multi-tier luggage racks outside the passenger area, mini pantry to provide refreshments to the passengers, service area consisting of hot case, microwave oven, coffee maker, bottle cooler, refrigerator and washbasin. The new coaches are also equipped with a CCTV system for onboard surveillance and have aesthetically designed interiors and FRP panelling, FRP modular toilets with pressurized flushing system and bio tanks and automatic fire detection with an alarm system for safe travel. The ICF will be manufacturing 10 such coaches at present. Two coaches have been rolled out and the remaining will be finished before March 31 next year. The two coaches which were rolled out have gone to the Central Railway, one of which had cleared the speed trials. The older version of the vistadome coaches mostly run in tourist locations where visitors can indulge in sightseeing. Some of the routes where these coaches are operated by the Indian Railways are Dadar and Madgaon, Araku Valley, Kashmir Valley, Darjeeling Himalayan Railway, Kalka Shimla Railway, Kangra Valley Railway, Matheran Hill Railway and Nilgiri Mountain Railway. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Import monitoring system being built for several sectors: Commerce Ministry

30 Dec, 2020, 07:17PM | Business Standards

The commerce ministry on Wednesday said an import monitoring system is being developed for several sectors, including aluminium, copper, footwear, furniture, sports goods, and gym equipment. The system would help gather advanced information on imports of these products and make it available to the stakeholders, including government and domestic industries. The system is already in place for steel and coal. "Import monitoring system (IMS) is being developed for aluminium, copper, footwear, furniture, paper, sports goods, gym equipment etc," the ministry said while enlisting significant highlights of the Department of Commerce during 2020. It also said that India had supplied around 45 tons and 400 million tablets of Hydroxychloroquine to about 114 countries. Besides, the country has provided around 96 million tablets of Paracetamol to 24 countries. For trade facilitation, about a 1.3 lakh Certificate of Origin has been issued through an electronic platform, it said. During April 1 and December 30, the directorate general of trade remedies (DGTR) has initiated 43 anti-dumping, four countervailing duty, and one safeguard investigations to support domestic manufacturers. "Average time taken to initiate an anti-dumping investigation has been brought down from 43 days in 2018-19 to 33 days in 2019-20 and the average time for completing an investigation has been brought down to 234 days in 2019-20, from 281 days during 2018-19 and more than 400 days in previous years," it added. Technical regulations were formulated for 176 products (worth USD 49.9 billion), and similar norms for 371 goods are in progress. Further, the ministry said that till date, a total of 40 projects have been approved under the Trade Infrastructure for Export Scheme (TIES), out of which eight projects have been completed. Till date, a total of 40 projects have been approved under the Trade Infrastructure for Export Scheme (TIES), out of which eight projects have been completed. The scheme helps involve states in promoting export activities in the country. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Reliance-BP invites bids for gas from KG-D6, priced against int'l benchmark

30 Dec, 2020, 02:52PM | Business Standards

Reliance Industries and its partner UK's BP Plc on Wednesday invited companies to bid for incremental gas it plans to produce from the second-wave discoveries in the KG-D6 block, pricing them for the very first time against an international gas benchmark. While Reliance-BP had in November 2019 sold the first 5 million standard cubic meters per day of gas from the R-Series field in the KG-D6 block, the duo has now invited bids for 7.5 mmscmd of incremental output that is likely to be available from February next year, according to a notice inviting offer. They have priced the first 5 mmscmd of gas against Brent crude oil but now they are seeking rates equivalent to JKM or Japan/Korea Liquefied Natural Gas Import Price. Bidders have been asked to "quote the variable denoted as 'V' in USD per million British thermal unit (MMBtu) terms." "The gas price (in USD/MMBtu (GCV)) shall be = JKM + V," the notice said. GCV stands for gross calorific value. 'V' can be a positive, zero or negative number and up to two decimal places but it cannot be less than (-)0.30 USD/MMBtu, it said. This means users will have to quote -0.30 or higher value of 'V'. JKM averaged USD 6.20 per MMBtu in November and at the base or cut off price, KG-D6 gas would cost USD 5.9 per mmBtu. This is higher than USD 4.2 to 4.4 per MMBtu rate at which the first 5 mmscmd are sold at Brent crude oil benchmark. Brent crude oil is presently in the range of USD 50 to 51 per barrel. Pricing of gas at JKM will be the first time that domestically produced gas is being sold at rates linked to an international gas benchmark, industry sources said. Also, this will be the first discovery of gas price since the October 2020 decision of the government setting out uniform e-bidding norms for finding the market price. That Cabinet decision also allowed the sale of gas to 'affiliates' and so while Reliance-BP affiliate companies couldn't participate in the November 2019 price discovery, they can do so in the current one when e-bidding happens on January 22. The government has given operators the freedom to discover market prices but this rate is subject to a pricing ceiling or cap that the government notifies every six months. The cap for six months to March 31, 2021, is USD 4.06 per mmBtu. And accordingly, Reliance-BP would get only that amount for the first 5 mmscmd of gas that they started to produce earlier this month. Essar Steel, Adani Group and state-owned GAIL in November 2019 bought the majority of the initial 5 mmscmd of gas planned to be produced from R-Series in the KG-D6 block by bidding between 8.5 and 8.6 per cent of dated Brent price. In that bidding, Reliance-BP had asked gas users to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required. A floor or minimum quote of 8.4 per cent of dated Brent price was set, which meant that bidders had to quote 8.4 per cent or a higher percentage for securing gas supplies. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made. The rate discovered in the November 2019 auction at the lower end of the Brent price band is the same as the one that Reliance got in the first five years of production from Dhirubhai-1 and 3 and MA fields in the KG-D6 block. These fields ceased to produce a few months back. Reliance got USD 4.205 per mmBtu for gas from D1 and D3 and MA fields during April 2019 and March 2014. It would have got double of that rate if a new formula proposed by the Rangarajan committee was approved but the new BJP government scrapped it and brought a new formula on pricing gas at rates prevalent in export surplus nations such as the US and Russia. The rates came to USD 5.05 in 2014 and are currently at USD 1.79 per mmBtu. Sources said the government in 2016 allowed a higher price for any new gas to be produced from a difficult project such as the deep sea field. R-Cluster (or R-Series) fields fell in that definition and gas from it was free to be sold but subject to the price cap. The price cap for October 2020 to March 2021 period is USD 4.06 per mmBtu, down from USD 5.61 in the previous six months. Reliance-BP is investing USD 5 billion in bringing to production three deepwater gas projects in block KG-D6 R-Cluster, Satellites Cluster, and MJ which together are expected to meet about 15 per cent of India's gas demand by 2023. R-Cluster will have a peak output of 12.9 mmscmd while satellites, which are supposed to begin output from the third quarter of the 2021 calendar year, would produce a maximum of 7 mmscmd. MJ field will start production in the third quarter of 2022 and will have a peak output of 12 mmscmd. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 -- the largest among the lot -- were brought into production from April 2009 and MA, the only oilfield in the block was put to production in September 2008. While the MA field stopped producing last year, output from D-1 and D-3 ceased in February. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production. Reliance is the operator of the block with 66.6 per cent interest while BP holds the remaining stake. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Air, water pollution disputes kept NGT busy in 2020 amid coronavirus

30 Dec, 2020, 12:39PM | Business Standards

Apex environment adjudication body NGT handled disputes involving multi-disciplinary issues relating to air and water pollution through a smooth digital workflow despite the novel coronavirus pandemic this year resulting in a nationwide lockdown. The National Green Tribunal, though working with handful of Judicial and Expert Members, that too via video conferencing, made its presence felt in 2020 by dealing with various sensitive issues related to environment and ecology. Before the lockdown, Chief Secretaries of 15 states and three Union Territories participated in Chamber meetings on compliance issues relating to waste management, sewage treatment, air quality management in 122 non-attainment cities, rejuvenation of 351 polluted river stretches and regulation of sand mining. The tribunal also dealt with several thorny cases through the year including coastal pollution, restoration of water bodies, industrial waste water and sewage treatment, noise pollution, protecting environment along the highways, compliance of environmental norms by restaurants/hotels, regulation and control of pet coke use and guidelines for dairy stock rearing. Besides, it passed several path-breaking orders and cleared many pending projects such as Subansiri Hydroelectric Power, Mumbai Trans Corridor, Alang Ship Breaking activities, Pollavaram Lift Irrigation Scheme and Kutchh Camel, balancing growth and environment. As of November, the NGT, which marked 10th year of its establishment, had 5,073 matters to deal while it disposed of 2,372 cases leaving 2,701 for consideration, with 943 lying undecided at the principal bench at New Delhi. As the country went into the lockdown, the tribunal, headed by Chairperson justice Adarsh Kumar Goel, expressed dissatisfaction over the slow progress and lackadaisical approach of authorities and government agencies on key issues relating to public health and hygiene and emphasised on recovering compensation from polluters. The year also saw the tribunal taking unprecedented stand on banning use of firecrackers during festive period in National Capital Region (NCR) and in those cities where air quality fell in poor category. Besides, noting that dust is a significant component of air pollution, the NGT directed all municipal corporations and local bodies in the NCR and other cities where air quality is ''poor'' to ensure that water is sprinkled on roads before sweeping them. The tribunal took cognisance of gas leak incidents in Andhra Pradesh as also the fire in Assam's Baghjan oil well and observed that such disasters occurred on account of mishandling of operations, lack of skilled supervision and unprepared system to deal eventualities. Holding that public oriented schemes do require environment clearance, the NGT passed direction on such requirement for Purushothapatanam Lift Irrigation Scheme, Andhra Pradesh, which involved lifting of water from river Godavari. Noting that air pollution kills millions of people every year, the tribunal asked brick kilns, which emit particulate matter, to adopt the environment friendly zig-zag technology. It got an assessment done through CPCB by finding out ambient air quality and carrying capacity. The green panel slammed the Ministry of Environment and Forests (MoEF) for non-utilisation of over Rs 800 crore meant towards Environment Relief Fund for victims of accidents in the process of handling hazardous substances and directed that compensation needs to be provided to them on urgent basis through District Collectors. The NGT also took note that the COVID-19 related biomedical waste in the country is about 101 tonne per day, and said that segregation of this waste from others is a must to avoid further contamination adversely affecting public health. During the latter part of the year, the tribunal dealt with the issue of protecting endangered Great Indian Bustard (GIB) which has been facing fatalities on account transmission lines. The NGT directed that bird diverters be installed and transmission lines may be put underground. The NGT said rivers in states like Uttar Pradesh, Madhya Pradesh, Odisha, Bihar, Andhra Pradesh, Karnataka were being unscrupulously exploited for sand mining without any regard for the environment and ordered that such projects be executed with due caution in accordance with mining plan. On the issue of ground water extraction, the NGT said that water withdrawal cannot be at the cost of the environment and ignoring intra and inter-generational, sustainable development principles. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

SAIL hits 2-year high, zooms 100% in 2 months on strong earnings outlook

30 Dec, 2020, 11:34AM | Business Standards

Shares of Steel Authority of India (SAIL) rose 5 per cent to hit an over two-year high of Rs 67.85 on the BSE in Wednesday's session amid expectations of further improvement in performance due to the realisation of uptick in the domestic market and progressively lower proportion of exports. The stock of the state-owned company was trading at its highest level since November 2018. In the past two months, the share price of the stock has more-than-doubled after the company reported a consolidated net profit of Rs 437 crore in the July-September quarter (Q2FY21) on back of strong operational performance. It had posted a net loss of Rs 286 crore in the same quarter of previous fiscal and a loss of Rs 1,226 crore in the June quarter (Q1FY21). The company's consolidated revenue from operations grew 20 per cent to Rs 16,925 crore from Rs 14,128 crore in the year-ago quarter. At present, SAIL, under the Ministry of Steel, is the country's largest steel maker having a total installed capacity of about 21 million tonne per annum (MTPA). The company has set up a target to more than double its capacity to 50 MTPA by 2030. The management said the company is determined to perform better in future and is geared up to take all necessary actions to remain a world-class domestic steel producer towards building an Atmanirbhar Bharat. Although steel demand in India may decrease in 2020 but in 2021 it is expected to be extremely strong on the back of government's infrastructure investments, production linked incentives, support for rural economy through infra development. Restarting of construction activities across India and recovery in the auto industry are also likely to support demand. Analysts at Edelweiss Broking expect SAIL’s performance to improve further driven by realisation uptick, volume growth and iron ore sales providing additional revenue stream. "We expect SAIL’s EBITDA to increase to Rs 5,000/t through to rest of FY21 as volume and realisations improve. In our view, volume uptick is the biggest mover for SAIL as the operating leverage benefit is higher compared to peers. Furthermore, being integrated on iron ore front, the company is insulated from further cost pressure. On leverage front as well, we expect respite as cash accretion is expected to reduce the debt level from the current level of Rs 54,400 crore," the brokerage firm said in a report.

IFGL Refractories hits 52-week high on rating upgrade, leaps 53% in a month

30 Dec, 2020, 10:18AM | Business Standards

Shares of IFGL Refractories surged 9 per cent in intraday trade on the BSE on Wednesday to hit a 52-week high of Rs 267 after the company said rating agency ICRA has upgraded credit rating assigned to the company's Rs 173 crore line of credit with a stable outlook. The stock had hit a record high of Rs 374 in January 2018. "Based on a review of the latest developments, the rating committee of ICRA, after due consideration, has upgraded the long-term rating to (ICRA) AA- from (ICRA) A+ assigned to the Rs 173 crore line of credit (LOC) of the company. The outlook on the long-term rating is 'Stable'. The short-term rating for the captioned LOC has been reaffirmed at 1 ICRA AI+,” ICRA said. Meanwhile, in the past one month, the stock of IFGL Refractories has outperformed the market by surging 53 per cent, as compared to an 8 per cent rise in the S&P BSE Sensex. For the July-September quarter (Q2FY21), the company had reported a strong 65 per cent year on year (YoY) jump in its consolidated net profit at Rs 20.60 crore on the back of 9 per cent YoY growth in revenue at Rs 248 crore. EBITDA margins improved by 510 basis points to 16.6 per cent from 11.5 per cent. Strong demand recovery in all the markets, improved realizations and cost optimization efforts have led to strong growth in revenue & profitability. “The government’s production Linked Incentive (PLI) scheme for 10 sectors especially in speciality steel will attract fresh investment and state of the art technology that would make India self-reliant in producing value-added speciality steel products. The PLI scheme for automobiles and auto components will generate sustained demand for steel in the long term from domestic manufacturers,” IFGL Refractories said in an investor presentation. At 10:16 am, the stock was trading 4 per cent higher at Rs 256 on the BSE, against a 0.10 per cent decline in the S&P BSE Sensex. A combined around 42,000 equity shares changed hands on the counter on the NSE and BSE.

Stocks to watch: JSPL, Jindal Stainless, HDFC Bank, IIFL Securities

30 Dec, 2020, 08:24AM | Business Standards

The Nifty futures on the SGX were trading 63 points higher at 13,996 at around 8.30 am, indicating a strong start for the benchmark equity indices. Here are the top stocks to watch in today's session: JSPL: Jindal Steel and Power Ltd (JSPL) on Tuesday said it has received the 'regular rail supplier' status from the Indian Railways. Paisalo Digital: Elara India Opportunities Fund reduced stake in Paisalo Digital to 1.76 per cent from 4.37 per cent earlier by selling 2.6 per cent stake via open market transaction. UPL: The company has completed the pre-payment of $410 million of 3.25 per cent senior notes due October 2021. This prepayment is in line with its commitment to reduce debt. Jindal Stainless: Board of directors of Jindal Stainless (JSL) and Jindal Stainless (Hisar) (JSHL) approved the merger of JSHL into JSL. As per the approved share swap ratio, 195 equity shares of JSL will be issued for every 100 equity shares of JSHL. IFGL Refractories: ICRA upgraded credit rating assigned for Rs 173 crore line of credit of the company. Vedanta: Promoters of Vedanta have pledged their holding in the company to raise USD 1.4 billion, mostly for repaying the debt that was coming up for maturity. IIFL Securities: The company will open its Rs 90-crore share buyback today. CARE Ratings: FPA Global Opportunity Fund on Tuesday sold nearly 10 lakh shares of CARE Ratings worth about Rs 52 crore through an open market transaction. APL Apollo Tubes: CARE Ratings revised credit rating on the bank loan facilities of the company to AA from AA-, with stable outlook. Dhanlaxmi Bank: Dhanlaxmi Bank has proposed Shivan JK as its new Managing Director and Chief Executive Officer (CEO) and has sought shareholders’ approval for the same. Shivan retired as Chief General Manager of State Bank of India and handled various roles, including forex operations. HDFC Bank: Former Economic Affairs Secretary Atanu Chakraborty is likely to be the next Chairperson of the country's largest private sector lender HDFC Bank, sources said. He would replace Shyamala Gopinath, who is set to complete her term in January. Pritish Nandy Communications: Promoter Pritish Nandy acquired 85,000 shares in company at Rs 22.94 per share on the NSE. NLC India: The company has issued and allotted 10,000 commercial papers of face value of Rs 5 lakh each, aggregating to Rs 500 crore Future Group stocks: Future group firms have started getting large orders from Reliance Industries, its CEO Kishore Biyani said in an email to his employees on Tuesday. Whirlpool: Whirlpool of India is seeking to build on its innovations around sanitisation for its washing machines category in 2021 to cater to the needs of consumers brought by the coronavirus pandemic, according to a senior company official. Godrej Consumer: Godrej Consumer Products Limited (GCPL) on Tuesday said it has forayed into home cleaning products, a segment which is witnessing fast growth after the pandemic. The Godrej group firm would provide surface cleaning and disinfecting solution under its newly-launched brand Godrej ProClean, the company said in a statement. Snowman Logistics: Adani Logistics sold 80.05 lakh shares or 4.8% stake in the company at Rs 61.82 per share. Acrysil: Everest Finance And Investment Company sold 2.48 lakh shares or 0.93% stake in Acrysil at Rs 186.60 per share.

Indian Steel Association seeks temporary ban on iron ore exports to stabilize rising steel prices

29 Dec, 2020, 08:40PM | Economic Times

Mumbai: Steel Industry body , Indian Steel Association has written to the prime minister’s office seeking a temporary ban on iron ore exports to ease domestic supply and bring down the prices. “A temporary ban of Iron Ore export for a 6-month period till the situation stabilises is the need of the hour. This will help the domestic steel industry by increasing the availability of Iron ore in the country,” said ISA’s secretary-general, Bhaskar Chatterjee in a letter addressed to P. K. Mishra, principal secretary to the Prime Minister, dated 27th of December. The only comparative advantage Indian steel Industry has over its global peers is availability of local iron ore. Unfortunately, the acute shortage of iron ore aggravated the problems of Indian steel industry further affecting the steel production, Chatterjee said. The Indian steel industry is currently facing very testing times as the iron ore supply has been badly squeezed and at the same time, the prices of iron ore have shown an unprecedented rise in both national and international markets, added Chatterjee. “The limited supply and rising prices of iron ore, which is the basic raw material for making steel, has also led to high steel prices,” Chatterjee said. In the past few weeks several steel-consuming industries like the engineering exporters, forging industry bodies have raised voices against the sharp price hike in the market and have urged the government to intervene. According to analysts, domestic hot-rolled coil prices are quoting at a two-year high of Rs 49,000-50,000 per tonne. Supporting the current steel price hikes, the industry body said that the Indian steel prices even though has gone up is still at a discount to that of international prices. “As India is an open economy, the steel prices in India move in sympathy with the international prices,” Chatterjee said. The primary reason behind the adjustment of prices has been on account of the sharp rise in the main raw material cost which is iron ore and its overall shortage besides surging global steel prices, the letter said. NMDC a PSU Company has increased prices of iron ore lumps (0-10 mm Fe 64 from Rs 1960 (as on 15th June 2020) to Rs 4610 per ton (as on 22nd December 2020) in the last six months. The increase is 135%. “Each Rs 1000 increase in iron ore prices impacts the minimum Rs 2000 per tonne in steel making,” Chatterjee said. As per the industry body, iron ore production in April to October 2020 was at 92.08 million tonnes, and has witnessed a sharp de-growth of 30 % over the same period last year. Odisha contributes over 50% of the country's annual iron ore output. In the first five months of the fiscal year, i.e., for the period April to August 2020, the Odisha iron ore dispatches have been roughly 15 million tonnes (MT), a fall of nearly 60% compared to the 35 MT in 2019. “The shortage in Odisha has been mainly on account of the change in hands of the expired iron ore leases and numerous evacuation issues,” The letter said. The industry body also highlights that the export of iron ore has jumped by 70% during the same period of a shortage in the domestic market, and around 92% has been to China. “On the export front, we find that Indian Iron ore exports have surged 70.3 per cent to 29.2 million tonnes (MT) in the first half of the current fiscal compared with the corresponding period a year ago,” the letter said. About 92 per cent of the exports were directed towards China during this period - the very period during which Indian and China had a violent border standoff in eastern Ladakh and when Chinese products were subject to a barrage of restrictions including the ban on apps, Chatterjee added. “Implement quick policy measures for easing the supply of Iron ore situation, especially Odisha, where the State Government miners, like OMC and IDCOL may be directed to prioritise supply to domestic end-users over exporters by limiting the daily tonnage to exporters and diverting the major quantity to domestic steel manufacturers,” Chatterjee said in the letter. In addition to policy changes, ISA urged the government to restrict e-auction of iron ore by OMC, OMDC and IDC for the end-users in India either for Pellets or Steel manufacture.

Expect sharp drop in asset quality after Covid accommodation withdraws: RBI

29 Dec, 2020, 07:56PM | Business Standards

The Indian banking and non-banking financial sector showed resilience in 2019-20, but with nearly 40 per cent of outstanding loans under moratorium, the system may face sharp deterioration in asset quality going forward, the Reserve Bank of India (RBI)’s annual Report on Trend and Progress of Banking in India released on Tuesday said. The report evaluated the banking sector’s performance for the financial year 2019-20 and touched upon some views for the coming days. In the year under review, asset quality, capital positions and profitability strengthened. The gross non-performing assets (GNPA) ratio moderated from its peak March 2018 to reach 7.5 per cent by end-September 2020. The improvement was driven by lower slippages which declined to 0.74 per cent in September 2020 and resolution of a few large accounts through the Insolvency and Bankruptcy Code (IBC). Fresh slippages remained the highest among public sector banks. However, “in 2020-21, as policy support is rolled back, the impact of the Covid-19 pandemic may dent the health of the banks and non-banks.” ALSO READ: US fund Interups pulls out of Air India race as deal with employees fails The modest GNPA ratio of 7.5 per cent at end-September 2020 "veils the strong undercurrent of slippage." The accretion to NPAs would have been higher in the absence of the asset quality standstill provided as a Covid-19 relief measure, the RBI said, adding, "given the uncertainty induced by Covid-19 and its real economic impact, the asset quality of the banking system may deteriorate sharply, going forward." The banking system stress, as per the report, is probably “obscured under the asset quality standstill with attendant financial stability implications.” “Going forward, banks will have to adapt and adjust to the rapidly evolving economic landscape due to these challenges and also the entry of niche players and emerging financial technologies,” according to the report. With substantial increase in provisioning, the net NPA ratio of banks moderated to 2.8 per cent by end-March 2020, and further declined to 2.2 per cent by end-September 2020. The reduction in NPAs during the year was largely driven by write-offs, as banks wrote off NPAs that required full provisioning. A preliminary estimate based on published quarterly results of a sample of banks indicates that their GNPA ratios would have been higher b 0.10-0.66 per cent at end-September 2020. But the Covid-19 provisioning and ploughing back of dividends “would help shield their balance sheets from emanating stress to a certain extent.” Also, RBI’s preliminary estimates suggested that potential recapitalisation requirements for meeting regulatory purposes as well as for growth capital may be to the extent of 150 basis points (bps) of the common equity tier I ratio for the banking system. Against this, the government has earmarked Rs 20,000 crore for capital infusion in public sector banks (PSBs). The banks, therefore, must raise additional resources from the market as an optimal capital raising strategy. In view of the Covid pandemic, the central bank aimed to give stimulus and maintain financial stability through rate cuts, liquidity infusion, regulatory forbearance; and time-bound resolution with additional provisions. "Improvement in the health of the banking sector henceforth hinges around the pace and shape of economic recovery. The challenge is to rewind various relaxations in a timely manner, reining in loan impairment and adequate capital infusion for a healthy banking sector,” according to the report. However, the economy was already in a slowdown, and that reflected in the credit growth of banks. After a gap of two consecutive years, credit growth decelerated in 2019-20, reflecting both risk aversion and tepid demand. This was accentuated even more by the Covid pandemic. Private banks have been the “engine of credit growth during the last few years," but their loan growth decelerated across sectors in 2019-20. Lending to the industry and agriculture sector by private and public sector banks also slowed down or declined. “The aggressive credit growth of PVBs to services and retail segments in the last few years – which surpassed 30 per cent mark in 2018-19 – came down sharply, even as PSBs managed to hold on to market shares in the retail segment,” the RBI said. “The loan book of private banks was affected disproportionately relative to their counterparts on asset quality concerns and higher provisioning requirements. Credit expansion was at a higher pace among public sector banks during March, June and September, 2020 quarters, after three consecutive quarters of deceleration,” it said. There was, though, robust credit growth in rural areas. The share of rural credit in the total has been hovering between 8 and 9 per cent, but its growth surpassed that of other categories in 2019-20, after a gap of four years. Interestingly, the share of PSBs in rural credit has gradually fallen in favour of private banks, the report said. Of the 22 private banks, only three attracted higher foreign shareholdings during 2019-20. ALSO READ: Jindal Steel first private firm to get "regular supplier" tag from Railways The rise of alternate sources of funds caused the credit to GDP ratio to decline rapidly across all bank groups in 2019-20. To compensate for the muted credit offtake, public sector banks invested in ‘risk free liquid statutory liquidity ratio (SLR) securities’, whereas the investment portfolio of private and foreign banks decelerated due to profit booking in their trading books. The commercial sector witnessed lower credit flow from both bank and non-bank sources, but the corporates raised higher resources from the foreign shores. The report also singled out investments by Life Insurance Corporation of India (LIC) in corporate debt as a silver lining. The flow of funds to the commercial sector has been higher during 2020-21 so far. During the crisis, banks were seen as safe haven and this led to sharp accretion of deposits. There was significant moderation in NBFCs’ financial performance, after double digit balance sheet growth in the previous three years. The impact was particularly pronounced for non-deposit taking NBFCs but deposit taking NBFCs fared well. However, green shoots are visible now in the NBFC segment as loans and advances are rebounding. RBI harps on perverse incentive structure in private banks The Trend and Progress Report touched upon compensation practices in banks, stating “perverse incentive structures that reward risk-takers for short-term profits, without adequate recognition of long term risks, jeopardise various stakeholders’ interests and have potential to threaten financial stability.” The central bank said in India, banks which compete in the same market place have different compensation levels and structures. The median variable pay of CEOs in private banks and small finance banks was much less than 50 per cent of their total compensation. Similarly, deferrals in payment of variable pay were found to be infrequent. Therefore, the central bank had to revise its guidelines on pay packages for whole time directors, chief executive officers and material risk takers November 2019, which became effective from pay cycles/ performance periods beginning April 1, 2020. "These key personnel are required to get at least half of their compensation in the form of variable pay which, in turn, is linked to the bank’s performance. The total variable pay is capped at a maximum of 300 per cent of the fixed pay. Deferral arrangements are required to be implemented for the variable pay of the top executives, regardless of the quantum of pay,” RBI said.

JSL, Jindal Stainless (Hisar) boards approve merger in share swap of 1:1.95

29 Dec, 2020, 07:18PM | Business Standards

The Boards of Jindal Stainless Limited (JSL) and Jindal Stainless (Hisar) Limited (JSHL) today approved the merger of JSHL into JSL in a share swap ratio of 1:1.95. “The merger of JSHL in to JSL will induce a simplified capital structure, expanding the turnover of the merged business to Rs 20,000 crore. With 1.9 MTPA melt capacity, the merged entity will be the only Indian company in the league of top 10 stainless steel companies in the world,” Abhyuday Jindal, managing director at JSL and JSHL was quoted as saying. Post the merger, JSL will be the single listed entity on the stock exchanges with promoter holding at 57 per cent, and remaining 43 percent by the public. As per the proposed structure, the mobility business of JSL Lifestyle Limited, a domestic subsidiary of JSHL would be merged into Odisha-based JSL. The non-mobility businesses would be carved out as a separate new entity, named Jindal Lifestyle Limited. Post restructuring, Jindal Stainless Steelway Limited (JSSL) and Jindal Lifestyle Limited will operate as Indian subsidiaries, while overseas operational subsidiaries of JSL in Spain and Indonesia will continue to operate as business units of merged JSL. ALSO READ: Karnataka tops investment proposals amid coronavirus pandemic: Minister With the appointed date of April 1, 2020, the merger process is expected to be completed in H2 FY22 and merger is subject to approvals from statutory authorities, shareholders, creditors, and NCLT, said the company in its release today. Merger of Haryana-based JSHL into JSL will not only enhance the company’s product portfolio, along with a 360-degree reach to better serve its customers, but will also offer a seamless, single-window, pan-India, as well as global network access to customers and further boost the ‘Just-in-Time’ approach. The consolidation of businesses will recast the merged entity as an integrated, modern and ‘state-of-the-art’ manufacturing facility, bringing the diversified technology, talent and R&D under one roof. The merger will lead to the realisation of enhanced operational synergy, with JSL’s proximity to port and raw materials, along with world-class finishing lines, and JSHL’s strategic location around key domestic consumption centres. Furthermore, the merged entity will present reinvestment opportunities for growth by leveraging ready infrastructure at Jajpur for cost-efficient Brownfield expansions. ALSO READ: CCI dismisses unfair practices complaint against 4 credit rating agencies In 2015, Jindal Stainless initiated a demerger to distribute its debt of close to Rs 8,500 crore between four firms and cut interest costs. Besides JSL, there were three other entities. Both JSL and JSHL were separately listed, while Jindal United Steel Ltd (JUSL) and Jindal Coke Ltd (JCL), the other two, remained private companies. Jindal Stainless was into corporate debt restructuring twice and this had triggered the demerger move back then as there was no scope for further debt restructuring as it would make the company a non-performing asset. The demerger, allowed all four companies to operate independently. In March 2020, Kotak Investment Advisors-managed Kotak Special Situations Fund (KSSF) announced an investment of Rs 500 crore in JSL in the form of debt and equity. The investment was meant to help the stainless steel producer come out of the corporate debt restructuring (CDR) process as it will aid in repaying its loans and debt obligations to banks, said Kotak Investment Advisors in its release.

Jindal Stainless (Hisar) to be merged with Jindal Stainless by H2 of FY21

29 Dec, 2020, 06:57PM | Economic Times

Mumbai: The Board of Directors of Jindal Stainless Limited (JSL) and Jindal Stainless (Hisar) Limited (JSHL) on Tuesday has approved the merger of JSHL into JSL. As per the approved share swap ratio, 195 equity shares of JSL will be issued for every 100 equity shares of JSHL. “The consolidation will enable harnessing of the complementing strengths of the individual Companies. Seamless integration of infrastructure, processes and operational synergies, along with a strengthened balance sheet, would improve financial flexibility,” said managing director of JSL & JSHL, Abhyuday Jindal in a statement. Post the merger, JSL will be the single listed entity on the stock exchanges and the promoter holding will be around 57%, while the remaining 43% will be held by the public. As per the proposed structure, the mobility business of JSL Lifestyle Limited, a domestic subsidiary of JSHL, would be merged into JSL. Non-mobility businesses would be carved out as a separate new entity, named Jindal Lifestyle Limited. Post restructuring, Jindal Stainless Steelway Limited (JSSL) and Jindal Lifestyle Limited will operate as Indian subsidiaries, while overseas operational subsidiaries of JSL in Spain and Indonesia will continue to operate as business units of merged JSL. "With the appointed date of April 1, 2020, the merger process is expected to be completed in H2 FY22. The merger is subject to approvals from statutory authorities, shareholders, creditors, and NCLT,” the company’s statement said. The merger of JSL and JSHL will also induce a simplified capital structure, expanding the turnover of the merged business to around Rs 20,000 crore. “With 1.9 MTPA melt capacity, the merged entity will be the only Indian Company in the league of top 10 stainless steel companies in the world. This transition will also bolster the government ‘Atmanirbhar Bharat’ mission,” said Jindal. As per the company, the merger will lead to the realisation of enhanced operational synergy, with JSL’s proximity to port and raw materials, and JSHL’s strategic location around key domestic consumption centres. “Furthermore, the merged entity will present reinvestment opportunities for growth by leveraging ready infrastructure at Jajpur for cost-efficient Brownfield expansions,” the company said. Jindal Stainless Limited has a capacity of 1.1 million tonne per annum and is located in the eastern part of India, in the state of Odisha. The plant comprises ferro-alloy facilities with a captive power generation facility, and is eventually scalable up to 3.2 MTPA of stainless steel production. Jindal Stainless (Hisar) Limited (JSHL) is an integrated stainless steel manufacturer with facilities starting from melting, casting, and hot rolling to cold rolling and other value additions. JSHL has a melt capacity of 0.8 MTPA. JSHL’s Specialty Product Division (SPD) caters to the high-end precision and specialty stainless steel requirements of reputed Indian and international customers.

Steelmakers write to PMO defending price hike, demand iron ore export ban

29 Dec, 2020, 06:22PM | Business Standards

A steel producers' body has written to Prime Minister Narendra Modi, explaining that the metal price hike was due to surging raw material costs, and demanded a ban on iron ore export for six months, an official said on Tuesday. The Indian Steel Association informed the PMO about the price increase of the metal after Union Road Transport and Highways Minister Nitin Gadkari wrote a letter to the prime minister on the impact of rising steel prices on infrastructure projects. "We would like to highlight some of the very serious and compelling reasons which have left the steel industry with no recourse, but to raise prices of steel from time to time," the ISA said in its letter to the PMO. Hot-rolled coil prices have increased by 46 per cent to Rs 52,000 per tonne in November as compared to Rs 37,400 per tonne in July this year. Rebar TMT, which is used in the housing and construction sectors, had touched Rs 50,000 a tonne, industry sources said. The ISA mentioned about the issues related to iron ore, price rise of raw materials, shortage in global steel supply and lower capacity utilisation due to COVID-induced disruptions. The steelmakers' body demanded a temporary ban on iron ore exports till the supply side stabilises for the key raw material. "Due to a temporary shortage of steel in the wake of the COVID-19 disruptions, the international prices surged to over USD 750 per tonne from the bottom of USD 397 per tonne witnessed this year. As India is an open economy, the steel prices in the country move up with the global prices," ISA secretary general Bhaskar Chatterjee said. He also mentioned that iron ore price has increased more than double from Rs 1,960 to Rs 4,160 per tonne in the period of June-December 2020. "With an increase of Rs 1,000 in iron ore prices, the minimum impact is Rs 2,000 per tonne in steelmaking," Chatterjee said. Iron ore production in the April-October period of 2020 was at 92.08 million tonne, registering sharp degrowth of 30 per cent over the same period last year. On the other hand, iron ore exports had surged by 70.3 per cent to 29.2 million tonne in the first half of the current fiscal. Explaining why the metal price has been raised, the ISA said Indian crude steel production fell by 19 per cent in the current financial year. "Indian steel industry faced severe disruptions in production caused by the unprecedented COVID-19 pandemic. Consequently, many steel companies in India with sub-optimal operating capacity showed substantial cash losses due to non- absorption of huge fixed costs for the quarter ended June 2020," it added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Steelmakers write to PMO defending price hike, demand iron ore export ban

29 Dec, 2020, 05:14PM | Economic Times

A steel producers' body has written to Prime Minister Narendra Modi , explaining that the metal price hike was due to surging raw material costs, and demanded a ban on iron ore export for six months, an official said on Tuesday. The Indian Steel Association informed the PMO about the price increase of the metal after Union Road Transport and Highways Minister Nitin Gadkari wrote a letter to the prime minister on the impact of rising steel prices on infrastructure projects. "We would like to highlight some of the very serious and compelling reasons which have left the steel industry with no recourse, but to raise prices of steel from time to time," the ISA said in its letter to the PMO. Hot-rolled coil prices have increased by 46 per cent to Rs 52,000 per tonne in November as compared to Rs 37,400 per tonne in July this year. Rebar TMT, which is used in the housing and construction sectors, had touched Rs 50,000 a tonne, industry sources said. The ISA mentioned about the issues related to iron ore, price rise of raw materials, shortage in global steel supply and lower capacity utilisation due to COVID-induced disruptions. The steelmakers' body demanded a temporary ban on iron ore exports till the supply side stabilises for the key raw material. "Due to a temporary shortage of steel in the wake of the COVID-19 disruptions, the international prices surged to over USD 750 per tonne from the bottom of USD 397 per tonne witnessed this year. As India is an open economy, the steel prices in the country move up with the global prices," ISA secretary-general Bhaskar Chatterjee said. He also mentioned that iron ore price has increased more than double from Rs 1,960 to Rs 4,160 per tonne in the period of June-December 2020. "With an increase of Rs 1,000 in iron ore prices, the minimum impact is Rs 2,000 per tonne in steelmaking," Chatterjee said. Iron ore production in the April-October period of 2020 was at 92.08 million tonne, registering sharp degrowth of 30 per cent over the same period last year. On the other hand, iron ore exports had surged by 70.3 per cent to 29.2 million tonne in the first half of the current fiscal. Explaining why the metal price has been raised, the ISA said Indian crude steel production fell by 19 per cent in the current financial year. "Indian steel industry faced severe disruptions in production caused by the unprecedented COVID-19 pandemic. Consequently, many steel companies in India with sub-optimal operating capacity showed substantial cash losses due to non- absorption of huge fixed costs for the quarter ended June 2020," it added.

Australia’s growth may ‘never return’ to its pre-virus path after trade trouble with China, says economist

29 Dec, 2020, 02:59PM | CNBC

The national flags of Australia and China are displayed before a portrait of Mao Zedong facing Tiananmen Square.Frederic J. Brown | AFP via Getty Images Australia's economy has been badly hit by escalating trade tensions with China â and it's possible growth might "never return" to its pre-virus levels even when the pandemic is over, according to research firm Capital Economics.China is by far Australia's largest trading partner, accounting for 39.4% of goods exports and 17.6% of services exports between 2019 and 2020, the firm said.But Beijing has for months been targeting a growing list of imported products from Down Under â putting tariffs on wine and barley, and suspending beef imports.Gross domestic product (GDP) in Australia could contract even more if Beijing continues to pile tariffs on more Australian imports, said its senior economist Marcel Thieliant in a note last week.Goods and services that are already "in the firing line" are worth almost a quarter of Australia's exports to China â forming 1.8% of its economic output, the research firm said.But it may not end there."That figure could rise to around 2.8% of GDP if China targeted other products for which it isn't hugely dependent on Australian imports," Thieliant said. While Australia should be able to divert some shipments to other countries, the escalating trade war is another reason why Australia's economy will never return to its pre-virus path even once the pandemic has been brought under control.Marcel ThieliantEconomist, Capital Economics Relations between Canberra and Beijing soured this year after Australia supported aÂ growing call for an international inquiryÂ into China's handling of the coronavirus pandemic.More restrictions by Beijing could come, including exports of gold, alumina â a type of material for industrial usage â and a "vast range of smaller items," the report said."While Australia should be able to divert some shipments to other countries, the escalating trade war is another reason why Australia's economy will never return to its pre-virus path even once the pandemic has been brought under control," Thieliant said.Overall, the country's gross domestic product could fall short of its pre-virus trajectory by about 1.5 percentage points at the end of 2022 â and additional trade restrictions by China could widen that shortfall further, said Capital Economics.The pain could be lessened, however, as "it's possible that Australia will find other destinations for its exports," said the economist. One bright spot for Australia Australia is the world's largest producer of iron ore, another commodity that has been under the spotlight as Australia-China tensions rose.But there's one bright spot for Australia: Iron ore exports would likely continue to be spared, given that half of China's needs are being met by Australia.China imports 60% of its iron ore from Australia, and is heavily dependent on the commodity which is used to make steel.Analysts say the lack of alternatives available could be why iron ore has been spared from the tariff fight so far.Iron ore prices recently spikedÂ as demand from China rose, and have been further stoked by dwindling supply and disruptions caused by storms hitting Australia."We still think that iron ore exports will remain spared â¦ It would not be possible for China to source all of its current needs without Australia," Thieliant wrote.

SAIL turnaround most challenging phase in 36-yr career: Outgoing chairman

29 Dec, 2020, 12:05PM | Business Standards

The turnaround of SAIL from several quarters of losses was one of the most challenging experience, said Anil Kumar Chaudhary, the outgoing Chairman of the country's largest steel maker. The Chairman said he also wants to see SAIL paying back at least 50 per cent of its debt in the near future. Chaudhary who had joined SAIL as a Junior Manager in 1984 would be superannuating from the top post on December 31, 2020 after serving the company for almost 36 years in various roles. "I have been associated with SAIL almost from the beginning of my career and have seen several ups and downs traversed by the company... I was the Director Finance and then the Chairman during SAIL's recent turnaround saga. SAIL emerged from the consecutive losses incurred since FY16 and turned around," Chaudhary told PTI while replying to a question related to the most challenging phase of his career. On February 18, 2018 SAIL posted a standalone net profit of Rs 43.16 crore for the October-December quarter of 2017-18 fiscal, after remaining in losses for several quarters back to back. From 2011 onwards, Chaudhary was serving as Director Finance of the company till September 2018, when he took charge as Chairman of SAIL. Chaudhary further said in the last financial year 2019-20, SAIL became the largest steel producing company along with the largest miner of the steel making input materials. "I want to see this glory touch new heights and I have full faith on the entire SAIL collective that it will take the Maharatna to newer heights," the Chairman said, sharing his expectations from the company after his retirement. At present, SAIL, under the Ministry of Steel, is the country's largest steel maker having a total installed capacity of about 21 million tonne per annum (MTPA). The company has set up a target to more than double its capacity to 50 MTPA by 2030. From a debt level of Rs 50,638 crore in September 2020, the company aims to bring it down to around Rs 45,000 crore by the end of this month, and Rs 40,000 crore by the end of the ongoing fiscal, he said. Replying to a question seeking a reason as to why SAIL's plan of setting up a joint venture with ArcelorMittal (AM) could not bear fruits, Chaudhary said even though the discussions with the Luxembourg-based global steel giant had reached an advanced stage, "the same took a back seat when AM got engaged in acquisition of (erstwhile) Essar Steel under the NCLT (National Company Law Tribunal) mechanism." In December 2019, ArcelorMittal announced that it had completed the acquisition of Essar Steel and formed a 60:40 joint venture with Nippon Steel (AM/NS India) to own and operate the debt-ridden firm. The deck for acquisition of Essar Steel for Rs 42,000 crore by L N Mittal-led company was cleared by the Supreme Court. Not defaulting on its part, SAIL had also written several letters to the Lakshmi Mittal-owned ArcelorMittal asking to expedite the process for signing a definitive agreement to set up a joint venture. However, the technology for making auto-grade steel is available with other steel companies as well for which SAIL is exploring different options, he said. Earlier, two separate delegations of Indian Steel PSUs led by Ministry of Steel visited Japan and South Korea for deliberations with the steel firms in these countries for further expansion and probable areas of technological collaboration towards manufacturing of high grade steel including steel for auto-body sheets, Chaudhary informed. The Centre had approved outright sale of loss making Alloy Steels Plant (ASP) in West Bengal, Salem Steel Plant (SSP) in Tamil Nadu and Visvesvaraya Iron and Steel Plant (VISP) in Karnataka. Sharing the status of SAIL's three plants which were up for sale, he said "Preliminary information memorandum/expression of interest request for ASP, VISP and SSP were issued on July 4, 2019 and the last date for submission of EoI requests after granting three extensions was September 10, 2019. The bids were received for VISP and SSP for which bidders have been shortlisted and the process is underway. The Chairman did not provide any information with respect to ASP. In the steel industry, rising prices of the metal is something which is a matter of concern for the consumers these days. When asked for his comments on the prices, the industry veteran said "domestic steel prices are guided by international steel prices. In the past, the steel prices had really touched the low and it was indeed a tough time for the domestic steel industry. Any industry follows its own dynamics confirming to the market situations and it operates accordingly. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

SAIL turnaround a challenging experience in 36-year-long career, says outgoing Chairman

29 Dec, 2020, 12:04PM | Economic Times

New Delhi: The turnaround of SAIL from several quarters of losses was one of the most challenging experience, said Anil Kumar Chaudhary , the outgoing Chairman of the country's largest steel maker. The Chairman said he also wants to see SAIL paying back at least 50 per cent of its debt in the near future. Chaudhary who had joined SAIL as a Junior Manager in 1984 would be superannuating from the top post on December 31, 2020 after serving the company for almost 36 years in various roles. "I have been associated with SAIL almost from the beginning of my career and have seen several ups and downs traversed by the company... I was the Director Finance and then the Chairman during SAIL's recent turnaround saga. SAIL emerged from the consecutive losses incurred since FY16 and turned around," Chaudhary told while replying to a question related to the most challenging phase of his career. On February 18, 2018 SAIL posted a standalone net profit of Rs 43.16 crore for the October-December quarter of 2017-18 fiscal, after remaining in losses for several quarters back to back. From 2011 onwards, Chaudhary was serving as Director Finance of the company till September 2018, when he took charge as Chairman of SAIL. Chaudhary further said in the last financial year 2019-20, SAIL became the largest steel producing company along with the largest miner of the steel making input materials. "I want to see this glory touch new heights and I have full faith on the entire SAIL collective that it will take the Maharatna to newer heights," the Chairman said, sharing his expectations from the company after his retirement. At present, SAIL, under the Ministry of Steel, is the country's largest steel maker having a total installed capacity of about 21 million tonne per annum (MTPA). The company has set up a target to more than double its capacity to 50 MTPA by 2030. From a debt level of Rs 50,638 crore in September 2020, the company aims to bring it down to around Rs 45,000 crore by the end of this month, and Rs 40,000 crore by the end of the ongoing fiscal, he said. Replying to a question seeking a reason as to why SAIL's plan of setting up a joint venture with ArcelorMittal (AM) could not bear fruits, Chaudhary said even though the discussions with the Luxembourg-based global steel giant had reached an advanced stage, "the same took a back seat when AM got engaged in acquisition of (erstwhile) Essar Steel under the NCLT ( National Company Law Tribunal ) mechanism." In December 2019, ArcelorMittal announced that it had completed the acquisition of Essar Steel and formed a 60:40 joint venture with Nippon Steel (AM/NS India) to own and operate the debt-ridden firm. The deck for acquisition of Essar Steel for Rs 42,000 crore by L N Mittal-led company was cleared by the Supreme Court. Not defaulting on its part, SAIL had also written several letters to the Lakshmi Mittal-owned ArcelorMittal asking to expedite the process for signing a definitive agreement to set up a joint venture. However, the technology for making auto-grade steel is available with other steel companies as well for which SAIL is exploring different options, he said. Earlier, two separate delegations of Indian Steel PSUs led by Ministry of Steel visited Japan and South Korea for deliberations with the steel firms in these countries for further expansion and probable areas of technological collaboration towards manufacturing of high grade steel including steel for auto-body sheets, Chaudhary informed. The Centre had approved outright sale of loss making Alloy Steels Plant (ASP) in West Bengal, Salem Steel Plant (SSP) in Tamil Nadu and Visvesvaraya Iron and Steel Plant (VISP) in Karnataka. Sharing the status of SAIL's three plants which were up for sale, he said "Preliminary information memorandum/expression of interest request for ASP, VISP and SSP were issued on July 4, 2019 and the last date for submission of EoI requests after granting three extensions was September 10, 2019. The bids were received for VISP and SSP for which bidders have been shortlisted and the process is underway. The Chairman did not provide any information with respect to ASP. In the steel industry, rising prices of the metal is something which is a matter of concern for the consumers these days. When asked for his comments on the prices, the industry veteran said "domestic steel prices are guided by international steel prices. In the past, the steel prices had really touched the low and it was indeed a tough time for the domestic steel industry. Any industry follows its own dynamics confirming to the market situations and it operates accordingly."

Borosil Renewables hits new high; stock zooms 113% in 11 days

29 Dec, 2020, 10:05AM | Business Standards

Shares of Borosil Renewables continued their upward movement in Tuesday's session and were locked in 10 per cent upper limit at Rs 279.95 on the BSE. The stock of the solar glass manufacturer was trading at its fresh lifetime high level. The scrip has more-than-doubled against shares issued to qualified institutional buyers (QIBs) at a price of Rs 126.55 per share. In the past 11 trading days, the share price of Borosil Renewables has zoomed 113 per cent from level of Rs 131.60 on December 11, 2020. In comparison, the S&P BSE Sensex has gained 3.5 per cent during the same period. Till 10:02 am, a combined 380,000 equity shares had changed hands and there were pending buy orders for 400,000 equity shares on the NSE and BSE. Borosil Renewables is engaged in the manufacturing of low iron solar glass for application in photovoltaic panels, solar thermal flat plate collectors and greenhouses and is the only solar glass manufacturer in India. On December 18, the company had successfully raised Rs 200 crore through a qualified institutions placement (QIP) issue. The company said the funds raised through this QIP will help to undertake planned expansion. It further said the funds raised via the issue are planned to be utilized to service its capital expenditure requirements for a brownfield expansion to more than double its solar glass production capacity from 450 tons per day (TPD) to 950 TPD. Among the QIBs, Franklin India Smaller Companies Fund (1.89 per cent), Franklin Templeton Investment Funds - Templeton Emerging Markets Smaller Companies Fund (2.01 per cent) and Infinity Holdings (4.56 per cent) have been allotted more than 1 per cent stake, according to shareholding pattern filed by the company post QIP issue.

Brexit to benefit Indian firms only in the long run, say analysts

28 Dec, 2020, 08:14PM | Business Standards

The United Kingdom (UK) and European Union (EU), last week, struck a historic Brexit deal that cheered global markets, including investors back home. Though most market experts remain bullish on the prospects of companies that do business with the region, they caution that any benefit will be visible over the long term. The UK and the EU have been in complex negotiations since March to try and keep their trade in goods flowing from January 1, 2021. The deal announced on Thursday means that this goods trade – roughly half of the $900 billion of annual EU-UK commerce – will remain free of tariffs and quotas. Analysts believe that since the Brexit vote was first cast in 2016, the companies have had enough time to diversify their operations across the globe. This will help them avoid being impacted by the tug of war that continued between the UK and EU. Indian auto, pharma, information technology (IT) and chemicals sectors are among those having significant reliance on UK and European nations. Tata Motors, Motherson Sumi, Tata Steel, TCS, Wipro, Infosys and Tech Mahindra are the key players there. “We understand that it will be a gradual exit versus the push for a hard exit, earlier. It is a positive for companies with exposure to UK and EU as they will continue to enjoy the benefits of free trade of goods (zero tariffs),” said Siddhartha Khemka, vice-president - head of research (retail) at Motilal Oswal Financial Services. “There are multiple facets to the deal and we continue to await finer details as well as updates from companies before making any revisions to our earnings estimates,” added Khemka. Following the development, shares of Tata Motors jumped nearly six per cent on Monday, while Motherson was up 4.5 per cent and Tata Steel gained 1.7 per cent, as compared to 0.8 per cent rise in the BSE Sensex. “Tata Motors would benefit from the Brexit deal as it has got enough exposure as far as Jaguar Land Rover (JLR) is concerned,” said Gaurang Shah, head investment strategist at Geojit Financial Services. Around 16 per cent revenue for Tata Motors comes from the UK while Europe accounts for a fifth, according to latest estimates. But, more than Brexit, GDP growth and other domestic and international factors are likely to influence the prospects of companies. G Chokkalingam, founder and chief investment officer at Equinomics Research has a negative outlook on the auto sector, including Tata Motors. “In 2021, the European economy is expected to grow at 4 per cent, which will be 2 per cent lower than the 2019 GDP growth of Eurozone in absolute terms. I believe these are the best prices one can get for auto companies and they are unlikely to outperform, going ahead,” he said. Among other firms, Shah and A K Prabhakar, head of research at IDBI Capital, are bullish on Motherson Sumi and don't see any negative impact of the deal. This is because the auto component maker has diversified its operations over the last few years. Among top IT firms, TCS, Infosys and HCL Technologies earn 24-31 per cent of revenue from Europe and UK. Pharma firms such as Aurobindo Pharma, Biocon and Dr Reddy's get 6-26 per cent of their revenue from the region. “Orders are picking up for IT companies and the stocks are likely to move up as we head into 2021. Most IT firms are well placed to capitalise on the global and domestic opportunities,” said Prabkahar. Shah said the Indian IT sector is not a geographically concentrated sector in the US or Europe. It has got a much larger piece of the pie for the entire globe. And, India itself is a big opportunity. “Consensus on the Brexit deal will remove overhang of slower decision making on large IT deals in the UK region. We expect acceleration in tech demand, specifically from BFSI and public services vertical in the UK region. This is likely to benefit the Indian IT industry in the medium term,” said Suyog Kulkarni, research analyst, Reliance Securities. On year-to-date basis, shares of Infosys have gained 70 per cent, TCS is up 35 per cent and Wipro by 56 per cent. Even for the pharma sector, the outlook remains positive. “India is pharmacy to the world. Brexit will not have any adverse impact on companies supplying to Europe or UK, and we are extremely bullish on the sector,” Shah said. Commenting on Tata Steel, Chokkalingam said he has a negative view on the stock and the sector in short term. “If the Eurozone economy shrinks, the steel sector would also be impacted. But, beyond 2021, if growth returns, steel companies can make a comeback,” he added.

India's mining sector to witness reforms, flurry of activities in 2021

28 Dec, 2020, 12:41PM | Economic Times

NEW DELHI: The country's mining sector will see "hectic activities" in the new year with the central government's approvals for pending mining reforms expected in January itself and efforts continuing to bolster overall mineral output. The reforms will pave the way for auctioning of at least 500 mineral blocks , Mines Secretary Anil Kumar Jain told PTI and emphasised that the calendar year 2021 will be a "bridge year between the past and the future". On account of market forces, there is a fluctuation in steel prices but the COVID-19 pandemic did not impact the country's mineral production this year, he noted. While many sectors had to bear the brunt of the pandemic-induced lockdown, Jain said India has "registered in iron ore some of the best export numbers in the last seven-eight months as compared to previous years". "The year 2021 will see hectic activity on the mining side because the reforms which have been in waiting for some time, they (reforms) are likely to be approved in the month of January which will involve some changes in the MMDR Act (Mines and Minerals (Development and Regulation) Act, 1957) and some changes in the rules all meant to liberate the sector. "It is going to bring into play a large number of mining blocks so the production in most of the minerals resources will see quantum jump because of these mines which will become available for interested parties in the calendar year 2021," Jain said. As per official figures, India's iron ore export increased by 70.26 per cent to 29.261 MT in the April-September period of ongoing fiscal over 17.186 MT in the year-ago period. "At the outset when it (government) identified essential sectors, for which the lockdown was not imposed, it included the mining sector in that (essential sectors). So that has helped and it kept the people employed and it kept the ore coming. "India has registered in iron ore some of the best export numbers in the last seven-eight months as compared to previous years. In that sense, the Government of India was very cognizant of the importance of this sector and it has served the nation well," the secretary said. However, miners' body FIMI is of the view that 2020 has been very tough and challenging year due to the pandemic and subsequent lockdown. "(For the) Mining sector, which was already under the phase of slowdown, the impact of COVID-19 proved to be a double whammy," FIMI Secretary General R K Sharma said. The government declared mining as an 'essential service' and allowed the production and transportation of minerals during the country-wide lockdown, he said. Despite the adversity, mining companies showed remarkable resilience and continued mining operations to the extent possible, he added. The government amended the mining law to facilitate enhancing coal production and reducing imports. It also aims to smoothen transitions of expiring non-captive operating mines to new bidders and deemed validity of statutory clearances for a period of two years. After implementation of the amended mining law, 28 operative mines (24 iron ore, iron and manganese ore, and chrome ore mines in Odisha, and 4 iron ore mines in Karnataka) that expired on March 31, 2020 have been successfully auctioned. The government's endeavour is to enhance the mining sector's contribution to the country's GDP, Sharma said. About the prospects for 2021, he said the government is in the process of further reforming the mining sector by amending the MMDR Act with the objective of exploration of deep-seated minerals like gold, diamond, platinum, copper, zinc and lead, with greater participation of the private sector. "Initiatives are being taken to ensure early operationalisation of auctioned greenfield mineral blocks (52)," he said. Rationalisation of taxes in the mining sector is also being considered. Under the Aatmanirbhar Bharat scheme , the Centre, in May, announced enhancing private investments in the mineral sector and bringing in other reforms. The mines ministry has proposed legislative amendments to the MMDR Act, 1957 for undertaking structural reforms with the objective of accelerating growth and employment generation. They are also aimed at resolving legacy issues to move towards an auction only regime for allocation of mineral resources, removing the distinction between captive and non-captive mines, developing a transparent National Mineral Index and clarifying the definition of illegal mining, among others.

Skyroot Aerospace successfully test fires a solid propulsion rocket stage

28 Dec, 2020, 09:34AM | Business Standards

Skyroot Aerospace has successfully test fired a solid propulsion rocket stage (named Kalam-5). This is the first time in India that a private company has successfully designed, developed and tested a full solid propulsion rocket stage. Meanwhile, Mukesh Bansal, Vedanshu investments backed space start-up is looking to raise around $15 million. A special feature of this is that it is built with advanced carbon composite structure in a completely automated process. Carbon composite case is very challenging to design and manufacture but is five-times lighter than steel, said Pawan Kumar Chandana, co-founder & CEO, Skyroot Aerospace. He added that Kalam-5 uses 15 different advanced materials, 9 different manufacturing processes, and has zero moving parts. This is a major milestone for Skyroot & for the Indian private space sector. "The test results closely matched our predictions and this success gives great confidence for our Vikram-I vehicle development,” said Chandana. Test firing of Vikram-1 launch vehicle’s third stage (Kalam-100) is planned in a few months at ISRO facilities, added Naga Bharath Daka, co-founder & COO, Skyroot Aerospace. The company's first launch vehicle ‘Vikram-I’ is under active manufacturing and targeting launch in Dec 2021 with the help of ISRO. Chandana said, with this test along with the company's Raman Engine test firing done in August 2020, Skyroot has demonstrated all propulsion technologies in Vikram-1 vehicles. Company's first launch vehicle ‘Vikram-I’ is under active manufacturing and targeting launch in Dec 2021 with the help of ISRO. With this, Skyroot unveils the first of five Kalam series of solid rocket motors with a thrust ranging from 5kN to 1000kN (~100 Tons). The remaining four motors are in various stages of manufacturing and will be tested in 2021. Kalam-5 is a demonstrator solid rocket propulsion stage with exactly the same propellant, materials and interfaces as the three solid propulsion stages of Vikram-1 launch vehicle. It gives a peak sea level thrust of 5.3kN and is designed to take 66 atmospheres and 30000C of combustion pressure and temperature respectively. This is also 1:4 scale in size of our Vikram-1 3rd stage, he said. The solid motors are high thrust, low-cost rocket engines with propellant in solid form. They are highly reliable as they have very few moving parts. Testing was done at a private test facility on December 22 in Nagpur owned by Solar Industries- India's largest explosives manufacturer and a leading space and defence contractor (also partner and investor in Skyroot). Founded by former scientists of the Indian Space Research organization (ISRO), Skyroot has raised $4.3 million till now and is in process of raising another $15 mn in 2021. In the past the company has raised investments from: Mukesh Bansal (Founder Myntra, CureFit), Solar Industries (India’s largest explosives manufacturer and renowned Space & Defence Contactor), Vedanshu investments and a few other Angel investors.

America can't retain supremacy against Chinese tech by walling itself off

28 Dec, 2020, 08:07AM | Business Standards

The election of Joe Biden will not end the U.S.-China trade war. Biden has already vowed to keep outgoing President Donald Trump’s tariffs as leverage for negotiations. That signals the dawn of a permanent new era of economic competition between the two superpowers. But beyond the flashy, headline-grabbing issue of tariffs and trade deals, there’s another, more important economic struggle being waged -- the battle to control technology industries. And the U.S. is deploying some very risky weapons to win it. As China approaches technological parity with the U.S. in a variety of high-value industries, the U.S. has acted to maintain supremacy. Under Trump, the Committee on Foreign Investment in the U.S. (CFIUS) dramatically stepped up its blockage of Chinese acquisitions of U.S. companies -- a major way that China appropriates advanced technology. Though natural security is the official justification for this, retaining U.S. commercial dominance is undoubtedly an additional goal. CFIUS’s tougher approach will probably continue under Biden. This is probably a smart move, as Chinese acquirers have little to offer the U.S. tech industry except capital, and it’s already awash in that, thanks to low interest rates and continued inflows of foreign and domestic money. But what’s less obviously smart is Trump’s other big weapon against the Chinese tech industry: export controls. Export controls prevent U.S. companies from selling technology to Chinese companies. Although China is getting more advanced, its flagship companies still depend on various specialized hardware and software products that are only produced by one or two highly specialized companies in the U.S. or other developed nations -- for example, equipment used to make semiconductors. Blocking the flow of these products can severely hamper a Chinese company’s business. This weapon was first wielded against Huawei Technologies Co., China’s premier telecom equipment maker and the leading contender in the race to supply 5G technology. For a while it looked as if Trump had relented, but this fall he cracked down even harder. The controls have succeeded in hurting Huawei’s business substantially, at least in the short term. That has apparently encouraged Trump to double down on the tactic. His administration recently extended export controls to more than 60 Chinese companies, including flagship semiconductor maker SMIC and world-beating drone maker DJI. The official justification is these companies’ involvement with the Chinese military. But the latest round of controls also seem aimed at preventing China from gaining dominance in any high-value, high-tech industry. This is a very dangerous game. Stopping trade secrets from leaking from the U.S. to China is one thing. But trying to smash the Chinese tech industry is a far taller order, and it seems unlikely to succeed. Countries specialize when they trade with each other. The U.S. is great at software, Japan at car manufacturing, Taiwan at making semiconductors, and so on. For China to be integrated with the world economy while not specializing in any internationally competitive high-tech products at all would be extremely strange. China is no longer the low-cost assembly platform it was in the 2000s, slapping together iPhones with components made in Korea and Japan; its tech talent and accumulated knowledge are now world-class. Someone, somewhere, will want to buy Chinese tech products, and the U.S. won’t be able to stop them. And in the meantime, export controls are hurting U.S. companies. If China can’t buy high-tech equipment, semiconductors, and software from the U.S., then it will go buy them from Japan or Europe or elsewhere. Or if the U.S. manages to block that too, then China will simply learn how to make the products itself. The main enduring result will be a loss of revenue for American manufacturers, who will now be permanently shut out of the Chinese market. Thus export controls could easily end up hurting the U.S. more than China. The Peterson Institute for International Economics reports that as of July, China accounted for a quarter of U.S. semiconductor manufacturers’ revenues, but China only got 5% of its semiconductors from the U.S. So American suppliers can be replaced more easily than the Chinese market can. The PIIE report also notes U.S. equipment makers will lose business elsewhere too, because other countries are afraid the U.S. will try to stop them from selling products to China made with American equipment. And export controls deter foreign manufacturers from investing in the U.S., as then they might not be able to sell to China. In other words, export controls are an attempt to force the global tech industry to divide neatly into two spheres — one Chinese and one American. But because the Chinese market is so huge, America could easily find its own sphere far smaller and more pitiful than the Chinese one. By sealing itself behind an economic Iron Curtain, the U.S. risks repeating the mistakes made by its vanquished Cold War rival, the Soviet Union. Export controls are simply too dangerous a tool for economic competition. There are other ways to limit the reach of Chinese military technology, such as the increasingly successful effort to nudge the world away from Huawei’s 5G tech. The U.S. should stick to tools like that, while upgrading its own technology industry and spending more on research.

Prices of TV and appliances likely to go up by around 10% from January

27 Dec, 2020, 01:07PM | Business Standards

Prices for LED TV and appliances such as refrigerator, washing machines are expected to go up by around 10 per cent from January next year on account of rise in costs of key input materials like copper, aluminium and steel and increase in ocean and air freights charges. Besides, prices of TV panels (Opencell) have also gone up by over two-folds due to short supply by the global vendors, while cost of plastic has also gone up due to rise in crude oil prices, said manufacturers. Terming it as imminent and unavoidable, manufacturers such as LG, Panasonic and Thomson are going to increase the prices from January, however, Sony is still reviewing the situation and is yet to take a call on this. "We expect the increase in commodity prices to impact our product pricing in near future. I anticipate the prices to go up by 6-7 per cent in January itself and may go up to 10-11 per cent towards end of FY Q1," said Panasonic India President & CEO Manish Sharma. LG Electronics India is also going to increase the price of a minimum of 7 to 8 per cent across its products in the appliances category from January 1 next year. "From January, we are going to increase the price of 7-to 8 per cent on all products including TV, Washing Machine, refrigerator etc. There is an increase in raw material prices and metals as copper and aluminium. Moreover, crude oil prices have gone up, hence the cost of plastic materials have also gone up substantially," said LG Electronics India VP-Home Appliances Vijay Babu. While for Sony India, it's still a 'wait and watch' situation and yet to take a final call on this but hinted that it is also moving in that directions. On being asked about the prices Sony India Managing Director Sunil Nayyar said: "Not yet. It is a wait and watch. We are watching the supply side, which is changing day by day. Its blurry situation and we have not decided as how much... Tendency is moving towards that situation." The panel prices have edged up and the some of the other raw material costs also has gone up, specially for the TV, he added. "I reckon it with primarily with demand and supply situation. There is excess demand because of work from home and there is limited supply because factories were not running at full capacity and that has created a vacuum in the supply side and have pushed up the prices," said Nayyar adding "it was a perfect storm as all thing came together disruption in supply, excessive demand and extraneous issues". Prices of small screen sizes have a bigger issue for the industry and their prices have gone up significantly. "Off course, the large screen also has an issue but I do not think it is troubling. India is still a predominantly 32-inch screen size market," said Nayyar. Super Plastronics, the brand licensee for French Electronics brand Thomson and Kodak, said there is a scarcity of TV Opencell in the market and the prices have almost gone up by 200 per cent. "There is an increase of 200 per cent in panel prices and despite the increase, there is short supply. Due to no alternative of panel manufacture at the global stage, we are dependent on China. So, Thomson and Kodak will increase the android TV prices by 20 per cent from January," said SPPL CEO Avneet Singh Marwah. Videotex International Director Arjun Bajaaj said: "The other factor leading to a sharp rise in the prices is the three-fold increase in Import Freight charges compared to October 2020." However, there is a warning note also from the Consumer Electronics and Appliances Manufacturers Association (CEAMA) saying that a price hike by the brands may also hamper the overall demand in the next quarter. "A rise in the commodity cost by 20-25 per cent, increase in the ocean and air freights to the extent of 5-6 times due to shortage of containers and the lag in the mining activity due to the pandemic is putting upward pressure on the overall input cost for Appliances. As a result, brands are most likely to increase prices to the extent of 8-10 per cent in near future, which may hamper the overall demand in the next quarter," said CEAMAPresident Kamal Nandi. However, Nandi, who is also Business Head and Executive Vice President Godrej Appliances, said the industry hopes that it will be offset to some extent by pent up demand surfacing now. According to Nayyar: "It would not sustain for a long period but for the industry until the first half of the next year, the pressure would remain." The Indian appliances and consumer electronics industry is largely dependent on global imports, mainly from China, for the sourcing of components and some of the finished goods. According to a joint report by CEAMA and Frost & Sullivan, the industry had a total market size of Rs 76,400 crore in 2018-19, in which Rs 32,200 crore was contributed from domestic manufacturing. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

India's crude steel output grows 3.5 percent to over 9 million tonne in November

27 Dec, 2020, 01:05PM | Economic Times

NEW DELHI: India registered a growth of 3.5 per cent in crude steel production at 9.245 million tonne (MT) in November, according to World Steel Association . The country had produced 8.933 MT crude steel during the same month last year, the global industry body said in its latest report. "Crude steel production for the 64 countries reporting to the World Steel Association ( worldsteel ) was 158.261 MT in November 2020, a 6.6 per cent increase compared to 148.417 MT in November 2019. "Due to the ongoing difficulties presented by the COVID-19 pandemic, many of this month's figures are estimates that may be revised with next month's production update," worldsteel said. According to the worldsteel data, China registered 8 per cent year-on-year growth in steel output at 87.660 MT during November 2020, compared to 81.191 MT in the same period last year. The US production stood at 6.120 MT, down 13.7 per cent from 7.088 MT. Japan's output slipped 5.9 per cent to 7.264 MT from 7.716 MT a year ago. South Korea's steel production fell 2.4 per cent to 5.760 MT in the month under review, as compared to 5.904 MT in the year-ago period. Germany's crude steel output rose 14.8 per cent to 3.376 MT as against 2.941 MT. Italy's crude steel production was 2.049 MT in November 2020, up 3.2 per cent from 1.986 MT a year ago. France produced 1.149 MT of crude steel last month , 3.7 per cent lower from the year-ago period, while Spain's steel production stood at 1.113 MT, a rise of 11.2 per cent year-on-year. With members in every major steel-producing country, Brussels-based worldsteel represents steel producers, national and regional steel industry associations, and steel research institutes. Its members represent around 85 per cent of global steel production.

Hammered by virus, investors rethink role of bonds, tech and ESG in 2021

27 Dec, 2020, 10:19AM | Business Standards

This has been a year like no other. Hammered by an unprecedented health crisis, global stocks tumbled into a bear market at record speed, and then rallied to new highs thanks to a flood of central bank money. Bond yields tanked to uncharted lows and the world’s reserve currency surged to all-time highs, only to then retreat to its weakest level in more than two years as 2020 draws to a close. Global asset allocators from BlackRock Inc. to JPMorgan Asset Management have outlined their takeaways for investors from the volatile year. Here are some of their reflections: The massive stimulus doled out by global policy makers when markets seized up in March led to one instance of a breakdown in what has long been a negative correlation between equities and bonds. The 10-year U.S. Treasury yield rose from 0.3% to 1% within a week, and simultaneously equity markets continued to fall. Now, as investors face lower-for-longer rates even as growth picks up, doubts are emerging whether developed-market government bonds can continue to provide both protection and diversification as well as satiate investors seeking income gains. There’s also a debate over the traditional investing policy of putting 60% of funds in stocks and 40% in bonds, even though the strategy proved to be resilient during the year. “We expect more active fiscal stimulus than any other modern period in history in the next economic cycle, as monetary and fiscal policy align,” said Peter Malone, portfolio manager at JPMorgan Asset’s multi-asset solutions team in London. “Future returns from a simple, static stock-bond portfolio will likely be constrained.” Some Wall Street giants recommend investors take a pro-risk stance to adapt to the changing role of bonds. Among them, BlackRock Investment Institute advised investors to turn to equities and high-yield bonds, according to a note published in early December. ‘Don’t Fight the Fed’ Few would have expected the swift turnaround in markets we saw in 2020. As Covid-19 spread, the S&P 500 Index plunged 30% in just four weeks early in the year, a much faster tumble than the median one-and-a-half-years it had taken it to get to the bottom in previous bear markets. Then, as governments and central banks shored up economies with liquidity, stock prices rebounded at an equally astonishing pace. In about two weeks, the U.S. benchmark was up 20% from its March 23 low. “Normally you get more time to position your portfolio in a correction,” said Mumbai-based Mahesh Patil, co-chief investment officer at Aditya Birla Sun Life AMC Ltd.. With markets moving so fast, someone in cash “would have been caught napping on this rally and it would have been difficult to catch up.” Being a bit contrarian helps, Patil said, adding that it’s better for investors not to take too large a call on sitting on cash. They should also focus on a bottom-up portfolio so they can go through both up and down cycles, he said. SooHai Lim, head of Asia Equities ex-China at Barings, said the speedy market recovery proved the soundness of the old saying “Don’t fight the Fed.” That said, some fund managers warned that investors should not take swift central banks support as guaranteed. “It was a flip of a coin where it went from there and whether they’d stepped in early enough,” said John Roe, head of multi-asset funds at Legal & General Investment Management in London. “The downside could have been unprecedented.” Teflon Tech This year’s dizzying rally in tech stocks gave investors an opportunity of a lifetime. Anyone who missed out on this theme that benefited greatly from stay-at-home and digitization trends in the pandemic would most likely find their portfolios lagging benchmarks. The top ten U.S. companies that have contributed the most gains to the S&P 500 Index this year are all technology-related stocks, ranging from cloud-computing pioneer Amazon.com Inc to chip maker NVIDIA Corp. Even with a short pause in November when positive trial results from a Covid-19 vaccine spurred a rotation into lagging cyclical shares, technology has ended as the top-performing sector in Asia and Europe. Adherents of the value strategy saw multiple false starts during the year, as investors bet that the group of shares, defined by cheapness and mostly comprising names sensitive to economic cycles, would finally have their day. They were disappointed. “Never underestimate the impact of technology,” said Alan Wang, portfolio manager at Principal Global Investors in Hong Kong. Thanks to cheap borrowing costs, “a lot of new technology has been re-rated and this (pandemic) just created a great opportunity for them to re-invent our lives.” Innovative stocks now are being valued on intangible factors such as goodwill and intellectual property rather than traditional methods like price-to-earnings ratios, Wang said, adding that investors should adopt such valuation strategies. Cash is King for Companies The pandemic and the speed with which it roiled markets showed investors they should stick with companies with strong balance sheets that can ride the waves of uncertain times. “The resilience of stocks in a year like this helps to prove their worth and justify their higher valuation multiples in a low rate world,” said Tony DeSpirito, chief investment officer of U.S. fundamental active equity at BlackRock. 2020 reaffirmed two important lessons DeSpirito has learned over the years: investors should undertake stress tests on companies to see if those firms’ earnings and balance sheets are strong enough to survive recessions during normal times; and they should diversify investments risks and also increase sources of alpha potential. Be Mindful of Collateral Damage Policy makers’ decisive rescue plans came at a cost for investors in some sectors. European banking shares tanked after being ordered to halt dividends to preserve capital. In Asia, real estate became the second-worst-performing industry after energy shares this year, weighed down by property owners when some markets like Singapore’s passed laws asking landlords to provide some tenants with rent relief. “The government this time around has been quite heavy-handed,” said SooHai Lim, head of Asia Equities ex-China at Barings. “They have been more coordinated, a lot faster and more decisive.” Lim said he will price in a higher risk level when investing in certain sectors like banks, which are “definitely more exposed to regulatory intervention.” Doubling Down on ESG ESG-related assets managed to outperform in many pockets of the market during volatility, proving skeptics wrong. For example, an FTSE index of global stocks with significant involvement in environmental markets is up 35% this year, outperforming the global equity benchmark by more than 20 percentage points. “The Covid crisis has brought the need for more rapid change into sharp focus and we are seeing clients of all types reassess their long-term objectives and the outcomes required of their investments,” said Harriet Steel, head of business development at Federated Hermes. In fact, the pandemic has prompted massive inflows to ESG-related products. Global funds investing in or adopting strategies related to clean energy, climate change and ESG have grown their assets under management by about 32% from a year earlier to a new record $1.82 trillion in 2020, according to data compiled by Bloomberg.

Covid impact: Coal India to diversify into non-coal mining areas in 2021

26 Dec, 2020, 01:00PM | Business Standards

State-owned Coal India Ltd (CIL) is set to diversify into non-coal mining areas as well as make major investments in clean technology in 2021 after demand for the dry fuel remained muted for most of this year amid the coronavirus pandemic impacting economic activities. Against all odds, including the slump in coal demand, the government opened up the country's mining sector for private players by auctioning 19 blocks. Coal demand across the world is projected to fall by around five per cent this year compared to 2019 while various sectoral challenges are expected to persist in 2021, analysts said. "In 2021, we will try to get Coal India Ltd (CIL) to diversify into non-coal mining-related areas. It (CIL) will make major investments in sectors other than coal mining so that it is well prepared to make the transition away from fossil fuel. "So, it (CIL) will make investments in renewable energy, get into aluminium and clean coal technology and will do a lot," Coal Secretary Anil Kumar Jain told PTI. In the coming year, Jain said CIL is also likely to go ahead with its agenda of achieving one billion tonnes of production target by 2023-24. CIL may also "go ahead with one billion tonnes agenda. It is getting approvals. It is gearing up to keep enhancing its production which was 603 million tonnes last year. It is taking upon itself bigger and bigger target. It will be able to achieve one billion tonnes (production target) in 2023-24," he said. Noting that CIL has taken upon itself an investment plan of Rs 2.5 lakh crore, Jain said that out of the proposed outlay, a significant chunk would be spend on clean coal technologies and diversification. "The rest of it (the investment will be) to increase coal production," he noted. About 2020, Jain said that auction of "commercial coal blocks was number one achievement (in the coal sector). We amended the Act to ease several things". The auction of coal blocks for commercial mining witnessed "fierce competition" and the 19 blocks that went under the hammer will generate total revenues of around Rs 7,000 crore per annum and create more than 69,000 jobs once they are operationalised. As many as 38 mines were put on auction, which also marked opening up of the country's coal sector to private players. The bidding also saw participation of players from sectors like pharma, real estate and infrastructure. A total of 42 companies participated in the auction and 40 of them were private players. As many as 76 bids were received for 23 mines. Some of the large corporate groups that have bagged blocks include Adani Enterprises, Vedanta, Hindalco Industries and Jindal Power. According to the secretary, the government facilitated the mining plan and made it eco-friendly to promote ease of business. The coal ministry took initiatives to re-visit old laws with an aim to improve efficiency, ease of doing business, and to open up coal sector to improve domestic coal production and reduce imports. Prior to amendments in the mining law, there was dominance of public sector companies both in exploration and mining of coal. The Mineral Concession Rule, 1960 was governing many aspects of coal mining and required amendment in furthering the coal sector reforms. Noting that the creation of a sustainable development cell was another achievement of the coal ministry, Jain said it will ensure CIL and other companies maintain environmental standards as well as that star rating of mines are done. "Since coal mining is a core activity we do not want there should be any slackening in our endeavour to maintain the highest environment standards," the secretary said. Sustainable Development Cell aims to promote environmentally sustainable coal mining and address environmental concerns during the decommissioning or closure of mines. The cell also formulates policy framework for the environmental mitigation measures, including the mine closure fund. The coal sector also faced rough weather in 2020 as fuel demand slumped due to sluggish economic activities in the wake of the coronavirus pandemic. A coal ministry official who did not wish to be named said that almost all sectors of the country were hit due to the pandemic and the coal industry was no different. Sale of coal fell as the power sector, a major consumer of the dry fuel, saw a decline amid the lockdown, the official added. CIL Chairman Pramod Agarwal said the company is planning to produce 650-660 million tonnes of coal this financial year while production of 334 million tonnes was achieved till November. Regarding coal demand in 2021, Jain said it will depend on many things, including movement of the economy. Global coal consumption is estimated to have fallen 7 per cent, or over 500 million tonnes, between 2018 and 2020. In 2019, global coal demand decreased 1.8 per cent after two years of growth as power generation from coal weakened globally, including in India. Analysts opined that there will be a modest rise in demand in 2021 and prices are also expected to firm up. Coal demand is set to revive by 2021 in India and other Asian nations, including China, which are the major consumers of the fuel, Moody's Investors Service said in a report in October. Coal use is anticipated to increase 3.8 per cent in 2021. In the medium term (to 2025), India has one of the highest potentials to increase coal consumption as electricity demand rises and more steel and cement are required for infrastructure projects, as per the International Energy Agency said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Coal India set to diversify into non-coal mining areas in 2021

26 Dec, 2020, 12:55PM | Economic Times

New Delhi/Kolkata: State-owned Coal India Ltd ( CIL ) is set to diversify into non-coal mining areas as well as make major investments in clean technology in 2021 after demand for the dry fuel remained muted for most of this year amid the coronavirus pandemic impacting economic activities. Against all odds, including the slump in coal demand, the government opened up the country's mining sector for private players by auctioning 19 blocks. Coal demand across the world is projected to fall by around five per cent this year compared to 2019 while various sectoral challenges are expected to persist in 2021, analysts said. "In 2021, we will try to get Coal India Ltd (CIL) to diversify into non-coal mining-related areas. It (CIL) will make major investments in sectors other than coal mining so that it is well prepared to make the transition away from fossil fuel. "So, it (CIL) will make investments in renewable energy, get into aluminium and clean coal technology and will do a lot," Coal Secretary Anil Kumar Jain told . In the coming year, Jain said CIL is also likely to go ahead with its agenda of achieving one billion tonnes of production target by 2023-24. CIL may also "go ahead with one billion tonnes agenda. It is getting approvals. It is gearing up to keep enhancing its production which was 603 million tonnes last year. It is taking upon itself bigger and bigger target. It will be able to achieve one billion tonnes (production target) in 2023-24," he said. Noting that CIL has taken upon itself an investment plan of Rs 2.5 lakh crore, Jain said that out of the proposed outlay, a significant chunk would be spend on clean coal technologies and diversification. "The rest of it (the investment will be) to increase coal production," he noted. About 2020, Jain said that auction of "commercial coal blocks was number one achievement (in the coal sector). We amended the Act to ease several things". The auction of coal blocks for commercial mining witnessed "fierce competition" and the 19 blocks that went under the hammer will generate total revenues of around Rs 7,000 crore per annum and create more than 69,000 jobs once they are operationalised. As many as 38 mines were put on auction, which also marked opening up of the country's coal sector to private players. The bidding also saw participation of players from sectors like pharma, real estate and infrastructure. A total of 42 companies participated in the auction and 40 of them were private players. As many as 76 bids were received for 23 mines. Some of the large corporate groups that have bagged blocks include Adani Enterprises, Vedanta, Hindalco Industries and Jindal Power. According to the secretary, the government facilitated the mining plan and made it eco-friendly to promote ease of business. The coal ministry took initiatives to re-visit old laws with an aim to improve efficiency, ease of doing business, and to open up coal sector to improve domestic coal production and reduce imports. Prior to amendments in the mining law, there was dominance of public sector companies both in exploration and mining of coal. The Mineral Concession Rule, 1960 was governing many aspects of coal mining and required amendment in furthering the coal sector reforms. Noting that the creation of a sustainable development cell was another achievement of the coal ministry, Jain said it will ensure CIL and other companies maintain environmental standards as well as that star rating of mines are done. "Since coal mining is a core activity we do not want there should be any slackening in our endeavour to maintain the highest environment standards," the secretary said. Sustainable Development Cell aims to promote environmentally sustainable coal mining and address environmental concerns during the decommissioning or closure of mines. The cell also formulates policy framework for the environmental mitigation measures, including the mine closure fund. The coal sector also faced rough weather in 2020 as fuel demand slumped due to sluggish economic activities in the wake of the coronavirus pandemic. A coal ministry official who did not wish to be named said that almost all sectors of the country were hit due to the pandemic and the coal industry was no different. Sale of coal fell as the power sector, a major consumer of the dry fuel, saw a decline amid the lockdown, the official added. CIL Chairman Pramod Agarwal said the company is planning to produce 650-660 million tonnes of coal this financial year while production of 334 million tonnes was achieved till November. Regarding coal demand in 2021, Jain said it will depend on many things, including movement of the economy. Global coal consumption is estimated to have fallen 7 per cent, or over 500 million tonnes, between 2018 and 2020. In 2019, global coal demand decreased 1.8 per cent after two years of growth as power generation from coal weakened globally, including in India. Analysts opined that there will be a modest rise in demand in 2021 and prices are also expected to firm up. Coal demand is set to revive by 2021 in India and other Asian nations, including China, which are the major consumers of the fuel, Moody's Investors Service said in a report in October. Coal use is anticipated to increase 3.8 per cent in 2021. In the medium term (to 2025), India has one of the highest potentials to increase coal consumption as electricity demand rises and more steel and cement are required for infrastructure projects, as per the International Energy Agency said.

Freight boom fires Buffett trains, Maersk ships and oil prices

26 Dec, 2020, 10:12AM | Economic Times

A great global restock is at hand, filling ships, trucks and trains, and also firing oil demand. During the depths of China’s coronavirus crisis at the start of the year, shipping behemoth A.P. Moeller-Maersk A/S reported an unprecedented number of canceled sailings as the Asian country all but shut itself off from the world. Since then, the company’s shares have surged to the brink of a record in Copenhagen. In the U.S., BNSF Railway Co., the freight giant owned by Warren Buffett, is riding a boom that’s pushed the number of carloads and containers it hauls up year-on-year in recent weeks. A shift in consumer behavior, particularly in western countries, has driven oil prices above $50 a barrel in the past few weeks. People have been diverting expenditure previously earmarked for now-unattainable things -- like holidays and meals in restaurants -- toward purchasing physical goods. And that’s only the start of it: stores, warehouses and industries have undertaken a huge inventory restocking phase. As more boxloads of stuff get moved across the planet, so demand for fuel to power ships, trucks and freight trains has soared. “This is the perfect storm for global container flows,” said Lars Mikael Jensen, head of network at Maersk , which marshals a fleet of almost 700 ships. “The current restocking in the U.S. and Europe raises demand, whilst global measures to contain the pandemic cause severe strain across the supply chain from lack of vessels, containers and trucking capacity.” While beneficial to oil prices and freight haulers, the boom is straining important transport infrastructure. Bottlenecks are worsening at ports around the world, contorting supply chains for everything from car parts to cosmetics. The recent closing of freight deliveries from France into the U.K. serves as a reminder that things could become even more snarled -- but also that the full economic and trade impacts of the coronavirus remain far from certain. Los Angeles is emblematic of the turnaround in activity. Together with Long Beach, L.A. is a corridor for the import of goods from Asia into the U.S. Earlier this year, thousands of empty containers were sitting at the dock in Los Angeles, a symptom of both trade tensions with China, and Covid. Today, imported goods are now flooding in. “Right now, what we are grappling with is a change in buying habits,” said Gene Seroka, executive director of the Port of Los Angeles. “Where we were once buying mainly services, now you and I have turned back to buying products and those warehouses need to be restocked. Folks have been ordering so much for delivery, we can’t process it fast enough.” Exports from China are surging, pushing the country’s trade surplus to a record. The nation’s companies shipped $268 billion of goods in November, a 21% increase year-on-year. In India, the lifting of lockdown restrictions and a full resumption of intra-state vehicle movement led to a boost in road transport fuel consumption in October, with diesel demand growing more than 7% year-on-year, according to Senthil Kumaran, head of South Asia oil at industry consultant FGE. Shipping rates are going crazy. Moving a 40-foot steel box by sea from Shanghai to the European trade hub of Rotterdam costs about $6,500 per container, the most for the time of year since at least 2011, according to data from Drewry. The trends matter for the oil market because trucking accounts for about 16% of global oil consumption and almost half of all diesel demand, according to 2019 data from the International Energy Agency. The rebound in activity, combined with the onset of Northern Hemisphere winter, has been lifting a previously disastrous market for the fuel for about two months. Back in September, the so-called crack spread -- diesel’s premium to crude -- plunged as low as $2 a barrel in Europe. As well as stuttering demand, a key cause of the diesel-market weakness was a collapse in global aviation. Oil refineries responded to that slump by diverting output of jet fuel into making diesel instead, boosting output when consumption was weak. In addition, because people were often staying off public transport to avoid catching the virus, refineries needed to keep high output levels to service gasoline demand -- further swelling diesel supply at a time when it wasn’t needed. Those dynamics have turned. Last week, the crack spread rallied to $6.28 a barrel. That’s at a time when the underlying price of crude oil has also rallied strongly. Keep on Trucking In the U.S., freight by truck is the primary influencer of diesel and viewed as a sign of the health of the wider economy. Interstate miles covered by trucks are up above 9% over last year, while traffic for all vehicles is down more than 10%, federal Department of Transportation statistics show. A proxy for demand in U.S. is how much of a petroleum product oil refineries supply. And in the week to Dec. 11, they supplied 4 million barrels a day of distillate fuel oil, the category that includes diesel. Back in May, that figure slumped to 2.7 million a day, the lowest in decades, Energy Information Administration data show. Stockpiles remain high but are far less bloated than they were earlier this year. The pull on diesel can be seen in excess demand for deliveries this year. Data from consultant Freight Waves show that 26% of requests for freight hauling are being turned down this quarter, double the rejection rate from a year ago. While trucking may be the mainstay of diesel demand, one of the largest U.S. buyers of the fuel -- after the Navy -- is Buffett’s BNSF Railway. It too reports surging activity. “We have seen a strong recovery in intermodal volumes as an increase in e-commerce sales drives demand for parcel and truckload intermodal shipments on our network,” said Tom G. Williams, BNSF group vice president consumer products. “As cities and states began reopening, intermodal demand was further supported by recovering brick-and-mortar retailers.” Current volumes at some of BNSF’s intermodal facilities are as much as 20% higher than they were at this time last year, and the company is continuing to work with its customers to meet a “consistent surge” in demand while replenishing inventories that have been low since the onset of the pandemic, he said. Even Europe Over in Europe, the continent’s biggest owner of trucks reports the same dynamics, filling the company’s fleet and boosting usage of diesel. “There is definitely a new consumer pattern,” said Kristian Kaas Mortensen , an executive at Girteka Logistics , a Vilnius, Lithuania-based owner of more than 7,500 trucks. “Because we can’t give it face-to-face we are shipping it.” Girteka is so busy that it’s giving overflow business to other trucking companies. It anticipates the busiest year-end in its history. In Germany, miles driven by large trucks have been steadily rising since September and are currently their highest in a month, according to the nation’s statistics office. Polish heavy traffic in the week to Dec. 20 is about 20% higher than the equivalent year ago. It was a similar picture in the U.K. prior to the country’s most recent set of lockdown rules. But it’s a surge that’s global and may well be without precedent, according to Gebr. Weiss, a 500-year-old firm that lays claim to being the world’s oldest logistics company. “Looking back at our history, you could say we’ve weathered a few challenges: a war, a revolution or two but still, in all my years in logistics I’ve never had a year like this,” said Gebr. Weiss board member Lothar Thoma. “Covid choked up, disrupted transport arteries on a global scale, messed the cycles of goods-in, goods-out, be it air, sea, rail or road.” --With assistance from Thomas Black, Jack Wittels, Brian Parkin and Sharon Cho.

Israeli jets strike several sites in Gaza after militants fire rockets

26 Dec, 2020, 07:41AM | Business Standards

Israeli aircraft struck several sites in the Gaza Strip early Saturday after Palestinian militants fired two rockets toward southern Israel. The airstrike targets included rocket manufacturing facility and training and military posts belonging to Hamas, the militant group ruling Gaza, according to the military. Palestinian media reported the airstrikes shattered windows in east Gaza City. There were no reports of casualties. The rockets fired on Friday were aimed at the Israeli coastal city of Ashkelon, but air defenses intercepted them, the military said. No Palestinian group in Gaza has claimed responsibility for the rocket fire, which broke months of cross-border calm. Volleys of missiles from the Iron Dome defense system illuminated the sky in northern Gaza Strip as they exploded trying to hit the incoming rockets. Rocket attacks and Israeli retaliatory artillery and aerial strikes are frequent, but they have largely been subdued in recent months due to the raging coronavirus outbreak in both territories. Hamas which has ruled Gaza since 2007 and fought three wars with Israel and countless rounds of smaller skirmishes, maintains an unofficial cease-fire with Israel. Hamas charges that Israel doesn't honour its truce obligations, which include easing a crippling blockade on the Palestinian enclave, and allowing for large-scale infrastructure and job-creation projects. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Army says 2 rockets fired from Gaza Strip toward southern Israel

26 Dec, 2020, 01:37AM | Business Standards

The Israeli military said Friday that Palestinian militants in the Gaza Strip fired two rockets toward southern Israel. The rockets were aimed at the Israeli coastal city of Ashkelon, but air defenses intercepted them, the military said. There were no reports of casualties or damage. Volleys of missiles from the Iron Dome defense system illuminated the sky in northern Gaza Strip as they exploded trying to hit the incoming rockets. No Palestinian group in the Hamas-ruled Gaza claimed responsibility for the rocket fire, which broke months of cross-border calm. Rocket attacks and Israeli retaliatory artillery and aerial strikes are frequent, but they have largely been subdued in recent months due to the raging coronavirus outbreak in both territories. The militant Hamas group, which has ruled Gaza since 2007 and fought three wars with Israel and countless rounds of smaller skirmishes, maintains an unofficial cease-fire with Israel. Hamas charges that Israel doesn't honour its truce obligations, which include easing a crippling blockade on the Palestinian enclave, and allowing for large-scale infrastructure and job-creation projects. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Odisha govt denying PM-Kisan Nidhi benefits to farmers: Dharmendra Pradhan

25 Dec, 2020, 09:24PM | Business Standards

Union Minister Dharmendra Pradhan on Friday came down heavily on the Odishas BJD government, accusing it of denying benefits of the PM-Kisan Nidhi scheme to the state farmers. Pradhan made the allegations against the two decade-old BJD government headed by Naveen Patnaik while addressing a meeting held as part of Prime Minister Narendra Modis farmers outreach programme at Japa block in Jagatsinghpur district. Stating that the Centre has given Rs 60,000 crore to Odisha farmers through different schemes during the last six years, Pradhan said the new farm legislations intended to make the farmers "atmanirbhar" (self-dependant). The Union Minister for Natural Gas and Petroleum and Steel alleged that the state government was not providing the final list of farmers so that the needy farmers of Odisha could gain from PM-Kisan Nidhi. He said every needy farmers get Rs 6,000 a year under the PM-Kisan Nidhi scheme. He alleged that though the centre provides a lot of money for the development of Odisha, the funds are misappropriated. "As part of Modi governments 'Sushasan' (good governance), the funds are directly credited to the bank accounts of farmers. "However, it is unfortunate that the state government is not sending the list of farmers eligible for the benefits under PM-Kisan Nidhi," Pradhan said. Pradhan also raised questions on the fate of Odisha governments own farmers scheme "KALIA" (Krushak Assistance for Livelihood and Income Augmentation). "Where is the financial assistance for farmers under the KALIA scheme?" he asked. Terming it as unfortunate, Pradhan said the Odisha government is yet to submit a list of farmers for availing the fruits of the central programme. Initially, the state government had submitted a list of 43 lakh farmers for the PM-Kisan Nidhi scheme and funds were released accordingly by the centre. "However, I fail to understand why the state government is not sending the full and final list for PM -KISAN and is also keen on decreasing the number of farmers," Pradhan pointed out. Without taking the name of Congress or any other political parties, the BJP leader also criticised those opposed to the three central farm legislations. "The people who have been defeated through a democratic process are now conspiring against Prime Minister Narendra Modi. These people were in power for a long time both in the state and country," he said. Pradhan also unveiled a statue of former Prime Minister Atal Bihari Vajpayee at Japa, Jagatsinghpur on the Bharat Ratna leaders 96th birth anniversary Friday. He remembered the former Prime Ministers contributions to the nations progress. Atal Bihari Vajpayees commitment for development of Odisha was unparalleled, Pradhan said. Pradhan also criticised the state government and alleged that when powerful officers and ruling party leaders in Odisha are involved in corruption, the vigilance department has arrested a handful of Anganwadi workers or clerks in a bid to project the state government as transparent. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Foundries demand import duty cut on pig iron, other key raw materials

25 Dec, 2020, 07:41PM | Business Standards

Hit by surging input costs, the foundry industry in the country has demanded reduction of import duty for pig iron and other raw materials, an official said on Friday. Prices of pig iron and other raw materials for the industry have gone up by 30-50 per cent, Institute of Indian Foundrymen (IIF) president Vijay S Beriwal said. The industry body has also sought subsidies on power from the government to stay competitive in the global markets. "Steel prices have increased by 30-50 per cent in the last 5-6 months and foundry chemicals have become expensive by 15-20 per cent," Beriwal said. Compared to other countries, the cost of power in India is high, which is hurting the energy-intensive foundry industry, he claimed. "Energy cost accounts for 15-20 per cent of the manufacturing expense, which is the highest. The Chinese government had extended a 10 per cent incentive to their units before the COVID-19 pandemic and again 5 per cent after the crisis. Such measures were proposed by the foundry industry in India," Beriwal said. The high input cost has an adverse impact on the USD 3-billion foundry exports from India and makes units uncompetitive in the international markets, he said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Foundries demand import duty cut on key raw materials

25 Dec, 2020, 06:56PM | Economic Times

Kolkata: Hit by surging input costs, the foundry industry in the country has demanded reduction of import duty for pig iron and other raw materials, an official said on Friday. Prices of pig iron and other raw materials for the industry have gone up by 30-50 per cent, Institute of Indian Foundrymen ( IIF ) president Vijay S Beriwal said. The industry body has also sought subsidies on power from the government to stay competitive in the global markets. "Steel prices have increased by 30-50 per cent in the last 5-6 months and foundry chemicals have become expensive by 15-20 per cent," Beriwal said. Compared to other countries, the cost of power in India is high, which is hurting the energy-intensive foundry industry, he claimed. "Energy cost accounts for 15-20 per cent of the manufacturing expense, which is the highest. The Chinese government had extended a 10 per cent incentive to their units before the COVID-19 pandemic and again 5 per cent after the crisis. Such measures were proposed by the foundry industry in India," Beriwal said. The high input cost has an adverse impact on the USD 3-billion foundry exports from India and makes units uncompetitive in the international markets, he said.

Top headlines: Modi offers farmers talks; 4 states to hold vaccine dry run

25 Dec, 2020, 05:16PM | Business Standards

Modi says open to talks with farmers, attacks Opposition Opposition parties are “pushing a political agenda” by spreading lies about laws that will benefit farmers, said Prime Minister Narendra Modi on Friday as he offered talks "based on facts and logic". Read here NDTV to appeal against Sebi fine Markets regulator Securities and Exchange Board of India (Sebi) on Thursday imposed a penalty of Rs 27 crore on New Delhi Television's (NDTV) promoters- Prannoy Roy, Radhika Roy and RRPR Holding. The penalty was imposed for violating various securities norms, including Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations. The regulator imposed the penalty against NDTV promoters for by concealing information from shareholders regarding certain loan agreements. Read here Govt plans dry run for Covid vaccine next week The central government on Friday said that it has planned a dry run for administration of the COVID-19 vaccine in Andhra Pradesh, Assam, Gujarat and Punjab next week as a step to prep up before the actual thing takes off. Read here Manufacturing firms log 'softer contraction' in sales Demand conditions in the manufacturing sector returned to the recovery mode with a softer contraction of 4.3 per cent (Y-o-Y) in the second quarter of this fiscal in terms of nominal sales after shrinking 41.1 per cent in the previous quarter that was hit by countrywide lockdowns due to COVID-19, according to RBI data. The recovery was led by iron and steel, food products, cement, automobile and pharmaceuticals companies, showed the data on the performance of the private corporate sector during the second quarter of 2020-21. Read here Reliance to buy out IMG Worldwide Billionaire Mukesh Ambani's Reliance Industries Ltd (RIL) has agreed to buy out IMG Worldwide LLC from their sports management joint venture for Rs 52.08 crore. The nation's biggest company by market value, in a stock exchange filing, said it will buy IMG Worldwide's 50 per cent stake in IMG-Reliance Ltd (IMG-R) for no more than Rs 52.08 crore in cash. Read here

Manufacturing firms log 'softer contraction' in sales at 4.3% in Q2: RBI

25 Dec, 2020, 03:46PM | Business Standards

Demand conditions in the manufacturing sector returned to the recovery mode with a softer contraction of 4.3 per cent (Y-o-Y) in the second quarter of this fiscal in terms of nominal sales after shrinking 41.1 per cent in the previous quarter that was hit by countrywide lockdowns due to COVID-19, according to RBI data. The recovery was led by iron and steel, food products, cement, automobile and pharmaceuticals companies, showed the data on the performance of the private corporate sector during the second quarter of 2020-21. Manufacturing companies reported sales of Rs 5,99,479 crore in the second quarter, compared to Rs 3,97,233 crore in April-June of FY 2020-21. The data has been drawn from abridged quarterly financial results of 2,637 listed non-government non-financial (NGNF) companies, the RBI said. Nominal sales of non-IT services sector also registered lower contraction of 14.5 per cent (Y-o-Y) led by expansion in sales of telecommunication and real estate companies. Sales growth of IT sector companies remained steady at 3.6 per cent (Y-o-Y) in Q2 FY 2020-21. As per the data, sales of non-IT firms and IT firms during the second quarter stood at Rs 80,842 crore and Rs 1,01,353 crore, respectively. "Operating profits of manufacturing companies increased on the back of savings in expenditure; operating profits of services (both IT and non-IT) companies also increased in Q2:2020-21," the RBI said in a statement. On expenditure, it said input cost pressure from raw materials remained subdued for manufacturing sector in the July-September quarter of the fiscal. Meanwhile, staff cost growth (Y-o-Y) decelerated for IT companies in the second quarter, whereas it remained in contraction zone for the manufacturing and non-IT services sectors. As per the data, with rise in profits, interest coverage ratio (ICR) of manufacturing companies improved to 4.6 in the second quarter of 2020-21 from 2.4 in the previous three-month period. The ICR of non-IT services companies remained below one. Also, profit margins improved across manufacturing and services companies on account of rise in profit from cost saving. The coverage of companies in different quarters varies, depending on the date of declaration of results. This is, however, not expected to significantly alter the aggregate position, the RBI said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

2021 to provide important opportunities to broaden India-US ties: Biswal

25 Dec, 2020, 10:23AM | Business Standards

Asserting that the long due US-India mini trade deal should be on top of agenda of the incoming Biden administration, US India Business Council president Nisha Desai Biswal has said that the ties between the two nations continued to be "strong and vibrant" and 2021 will provide important opportunities to broaden and deepen this partnership. India and the US are negotiating a deal to iron out differences on trade issues to boost economic ties "The US-India relationship has continued to be strong and vibrant. That has been the case in the prior administration, in the current administration and I'm confident in the next one as well, USIBC president Biswal told PTI in a year-end interview on Thursday, noting that the year 2020 started with the "strong and robust" visit of President Donald Trump to India. Despite the fact that the US and India weren't able to see a mini trade deal launched, they did see that the robust strategic partnership was continuing to be advanced throughout the year, she said. Be it the defence ties, close coordination between the US and India on regional and global challenges, the third 2+2 ministerial or further strengthening of the QUAD grouping (India, the US, Japan and Australia) in the Indo-Pacific, the bilateral has continued to strengthen, Biswal noted. "Unfortunately, we haven't seen the same level of progress on the trade front. That is something that both countries will need to reflect on...2021 perhaps (would) provide some important opportunities to broaden the US-India partnership, continue the deep strategic convergence and broaden the partnership to reflect on some additional areas of opportunity," she said. Biswal, who in her capacity as Assistant Secretary of State for South and Central Asia was one of the prime drivers of the India-US ties during the second term of the Obama administration, observed that the COVID-19 pandemic has underscored the importance that the two nations work together not only for the benefit of their own people but globally as well. Climate change, one of the main focus areas of the Biden administration, would be another key area of cooperation between India and the US in the next administration, she said. India, Biswal noted, has made tremendous investments in clean energy, in solar and renewable. Responding to a question, Biswal said while the two countries have not been able to advance the trade deal, they did made some significant progress on a number of policy issues which support increased trade and investment in the US-India corridor. This has been an important year for advancing a number of key economic reforms. However, it is unfortunate that the two nations were not been able to sign the trade deal, despite having put a lot of time and efforts, she said. Referring to the trade negotiations, Biswal praised the Indian side for coming to the table and looking to resolve some thorny issues like those related to medical devices, or tariffs. Similarly, on the US side, she said there was a real desire to try to get it done. The USIBC president said the deal that perhaps could have gotten done 18 months ago wasn't the deal that could have gotten done six months ago. "As time goes on, new issues emerge and then the expectations and the parameters that perhaps would have made the deal doable for one side are no longer the same as what the other side would need or wanted. That's unfortunate...there is a small basket of issues that could and should get resolved if not by the current administration at this point, then hopefully early into the Biden administration. "(This is) not because it is so incredibly important or consequential, the small issues, they're very important and consequential to a few key sectors, but how do we approach the idea of a larger framework between our two countries, which we know is in our economic interest and in our strategic interest, how do we take that on if we cannot even come to closure on a small set of issues that should be relatively easier to find some gives and takes on, Biswal said. She hoped that this is something that the two governments after January 20, when Joe Biden takes oath as US President, can quickly try to put a lid on and say, "okay, we got this done. Now, let's think about where we want to go in this relationship". The US remained India's top trading partner for the second consecutive fiscal in 2019-20. According to the data of the commerce ministry, in 2019-20, the bilateral trade between the US and India stood at USD 88.75 billion, as against USD 87.96 billion in 2018-19. Biswal noted that there are a number of areas where the US and India should be focusing like services sector, electronics and technology and pharmaceuticals. I know agriculture is very difficult. And I don't necessarily think that has to be the first thing on the docket. I recognise, the extreme sensitivity with which the reforms that were announced by the government are being met in terms of the social and political impact of those, she said. Observing that trade is hard and politically very challenging in democracies like India and the US, Biswal said the two countries do need to work together for the larger benefit of both of the economies to create more growth and opportunities for their citizens. India, she said, is a very important partner for the US, both in terms of the bilateral agenda, and also because the two countries collaborate on a number of big global challenges, including free and open Indo-Pacific, and climate security. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

China's economic recovery continues with exports and commodities booming

25 Dec, 2020, 01:34AM | Business Standards

China’s economic recovery continued in December, underpinned by booming global demand for exports, rising commodity prices and a rallying stock market. That’s the outlook from the latest aggregate index combining eight early indicators tracked by Bloomberg, which was unchanged from last month. China was already pulling further ahead of other major economies in November, with domestic demand growing, foreign investment rising and record export demand propelling growth even as other major nations struggle amid soaring virus cases. With the Communist Party signaling there won’t be a sudden withdrawal of monetary and fiscal assistance, there’s growing confidence for a healthy expansion in 2021. The export boom has been one of the strong drivers for China’s rebound, with goods shipments hitting a record $268 billion in November. That strength looks set to continue this month, with Korean exports rising 1.2% in the first 20 days of the month and an index tracking the cost of shipping a container of goods reaching an all-time high last week. There’s so much demand for containers to ship products from China to the US that some companies are sending empty boxes back to Asia. Shipments to the US’s busiest seaport in Los Angeles are expected to remain robust until at least early March. Smaller, export-oriented firms have outperformed their peers on the back of that demand, with an index tracking their current performance rising to a record-high 58.1, according to Standard Chartered, which surveys more than 500 small and medium-sized companies in China each month. An increase in the indexes for new export orders and production show “strong external demand and improved production capacity amid a Covid resurgence elsewhere,” according to the report from Lan Shen and Shuang Ding at Standard Chartered. However, expectations for next year eased, possibly due a pullback in holiday demand and the upcoming Lunar New Year in February, they wrote. The main index for small companies slipped to 52.7 in December from 52.9 a month earlier. Numbers above 50 indicate improvement. There might also be an improvement this month in the factory-price deflation that has plagued Chinese firms this year, with Bloomberg’s tracker for factory prices improving to -0.3 per cent in December, the highest level since February. “The PPI tracker is based on market commodity prices, so the recent rise in commodity prices, such as copper, coal and iron ore, should have raised it significantly,” Bloomberg economist David Qu said.

India's steel companies leading metals towards best rally in decade

25 Dec, 2020, 12:43AM | Business Standards

The country’s steel makers are on course to leading the BSE’s metal index to its biggest quarterly gain in more than a decade, on the back of recovery in consumption and surge in prices across the globe. The S&P BSE Metal Index has surged by around a third so far in the three months through December, jumping the most since the quarter ended June 2009. Metal companies are in an earnings upcycle after two years of downgrades, and steel demand as well as pricing have improved sharply, according to a Jefferies Group LLC report this month. Shares of the country’s oldest steel mill, Tata Steel, have climbed more than 70 per cent since October 1, clocking the firm’s best performance in more than 11 years thanks to higher steel prices after it entered into talks for sale of its Dutch unit. ALSO READ: Robust capital expenditure by states crucial for economic recovery: RBI Steel Authority of India has rallied around 75 per cent, while JSW Steel and Jindal Steel & Power have jumped more than 30 per cent on the bourses. “India-based steel capacity is capitalising on a global shortage of steel and the inability of the other global manufacturers to supply,” said Saurabh Bhatnagar, partner and national leader for metals and mining at EY India. “While there has been a continuous increase of demand from China, on account of the government-aided growth and rising focus on sectors such as infrastructure and construction, the revival of demand from India is pushing steel prices even higher.” Steel prices have soared on the back of reviving demand, especially in China, and also due to iron ore bursting past $170 a tonne on concerns of supply shortage in Brazil and Australia, the top exporters. Prices are likely to remain at these levels until supply to China normalises to pre-COVID levels, Bhatnagar said. “Local steel price increases are purely a reflection of import parity pricing,” according to Ritesh Shah, an analyst at Investec Capital Services India. “We have been positive on the steel cycle, that is, steel pricing and profitability,” since March and continue to remain constructive on the profitability of steel mills into 2021, he said. Spot prices for Indian hot-rolled coil steel and aluminum are about 20 per cent above the previous quarter’s average, which has further improved the earnings outlook for metal companies, Jefferies said. Copper prices in London have also rallied around 17 per cent this quarter. Aluminum maker Hindalco Industries and iron ore miner NMDC have risen more than 30 per cent so far during the quarter, while Vedanta brought up the rear with a near 10 per cent gain after a failed delisting bid and concerns over upstreaming of its cash to parent.

WPIL jumps 36% in 2 days on bagging Rs 851 crore order from MP Jal Nigam

24 Dec, 2020, 02:54PM | Business Standards

Share prices of WPIL jumped 13 per cent to Rs 675 on the BSE in intra-day trade on Thursday, advancing 36 per cent in two days, after the company received a letter of intent (LoI) from Madhya Pradesh Jal Nigam. "WPIL has received a letter of intent from Madhya Pradesh Jal Nigam for two projects for an aggregate amount of Rs 851.31 crore to be executed over 30 months," the company said in a BSE filing on Wednesday. At 02:45 pm, the stock was trading 7 per cent higher at Rs 641, as compared to a 1.2-per cent rise in the S&P BSE Sensex. Around 73,000 equity shares changed hands on the counter till the time of writing o this report, as against an average 24,000 shares that were traded daily in the past two weeks on the BSE, the exchange data showed. During the financial year 2019-20 (FY20), the operations of the company were adversely affected by the poor environment in the infrastructure and capital goods sector. The economic momentum remained subdued due to lack of both private and public investment in major infrastructure sectors such as power, steel and cement. However, the company has strengthened itself with a strong diversified business model across products and geographies which should allow it to constantly look for opportunities. "Major opportunities exist in the Jal Jeevan Mission to be executed by 2024 which aims to provide water to every household in India. Similar, opportunities exist in energy efficiency projects across the country along with an expected upturn in public and private investments in India," WPIL said in its FY20 annual report.

Odisha CM announces India's largest hockey stadium in Rourkela

24 Dec, 2020, 02:32PM | Business Standards

Odisha Chief Minister Naveen Patnaik on Thursday announced a new world-class hockey stadium in Rourkela city which is set to host the 2023 FIH Men's Hockey World Cup. The showpiece event will be hosted by Odisha, for a second consecutive time, at two venues, Bhubaneswar and Rourkela. The Rourkela city stadium would be the biggest stadium for hockey in India with a sitting capacity of 20,000. The stadium along with the allied facilities will be developed as a benchmark for other hockey stadiums around the world. Spread over 15 acres of land, the stadium will be constructed in the Biju Patnaik University of Technology campus, Rourkela. "As we have announced earlier, Odisha will once again be the proud host of the prestigious Men's Hockey World Cup in 2023," said CM Patnaik in a video message. "Sundargarh district is our powerhouse of hockey talent. The India team led by players like Dilip Tirkey and Sunita Lakra have brought laurels for the country. As a tribute to the contribution of Sundargarh to Indian Hockey, I would like to announce that we will build a new international level hockey stadium in Rourkela with a seating capacity of 20,000," the Odisha CM added. The steel city of Rourkela in Sundergarh district of Odisha is gearing up to host the tournament at a scale equal to the 2018 edition. Recently, a high-level team including senior officials from the state government, International Federation of Hockey (FIH), Department of Sports and Youth Services and Hockey India had visited Rourkela. And reviewed the infrastructure and allied facilities in the city to host the prestigious and much-awaited hockey event. The work to develop synthetic hockey turf in each of the 17 blocks of Sundargarh district has already commenced. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Italy's accidental prime minister? Giuseppe Conte has lasted longer in power than many expected

24 Dec, 2020, 02:28PM | CNBC

Italy's Prime Minister Giuseppe Conte attends RAI's broadcast talk Show Porta a Porta on January 08, 2019 in Rome, Italy.Alessandra Benedetti - Corbis | Corbis News | Getty Images In June 2018, Giuseppe Conte â a lawyer and academic with no political experience â became Italy's prime minister because of a compromise.At the time, the then-leaders of Italy's anti-establishment Five Star Movement (M5S), Luigi Di Maio, and the anti-immigration Lega party, led by Matteo Salvini, couldn't decide between them who would be prime minister after they formed a coalition government.So they appointed Conte, an independent not allied to either party, to the top job. He was largely seen then as a technocrat, in the role purely to oversee Lega and M5S' government program.That did not run smoothly, however, and power in Rome has since changed hands. This came after Salvini, in the summer of 2019, filed a vote of no confidence in Conte.This forced the collapse of the coalition government (to which he belonged), triggered an election, and was widely seen as an attempted power grab by Salvini, a divisive but popular politician who at the time was riding high in voter polls.The move backfired, however, with the M5S and Democratic Party (PD) agreeing to form aÂ new government and Conte remaining prime minister. The unlikely alliance of M5S and the PD was a sigh of relief for many officials in Europe as it was seen likely to soften the more hardline euro-skeptic stance of the previous administration. VIDEO3:5303:53Italy's Covid situation is 'critical, but not dramatic', Ambrosetti's De Molli saysStreet Signs Europe From coming into the role of prime minister almost accidently, some analysts say that Conte has actually thrived, becoming well liked among the public and managing political affairs well.Italy is not an easy country to operate in politically; suffice to say, Italy has had five prime ministers in the last 10 years. Conte has certainly lasted longer in the post than other recent holders of the premiership; Conte's predecessors Paolo Gentiloni, Mario Monti and Enrico Letta each lasted less than two years and Matteo Renzi only slightly longer than Conte's current time in office."As with so many things in Italian politics, temporary and emergency measures often end up lasting well beyond their initial shelf-life. The prime minister post is no exception," Federico Santi, senior Europe analyst at Eurasia Group, told CNBC."So I can't say I'm too surprised Conte has lasted this long â though he has proven more resilient and adaptable than many gave him credit for initially. This is partly due to circumstance, partly due to Conte's own ability to play to the political mood of the moment," he noted.Santi said Conte had come a long way from what he characterized as his first "hesitant and awkward press conference, which revealed how he himself could hardly believe the turn of events that propelled him to lead the EU's third-largest country."To give Conte his due, Santi noted that he "really came into his own" in 2019 when Lega leader Salvini engineered the government's collapse."Rather than appease him, Conte pushed back against the far-right leader â creating an opening for the center-left PD to replace Lega as M5S coalition partner. Once again, neither party wanted to relinquish control of the government to the other, which made Conte the obvious choice." Italian Prime Minister Giuseppe Conte (R), flanked by Deputy Prime Minister and Interior Minister Matteo Salvini (L), delivers a speech at the Italian Senate, in Rome, on August 20, 2019, as the country faces a political crisis.ANDREAS SOLARO/AFP/Getty Images Conte's political inexperience and "uncontroversial" profile, and what one political analyst called his "polite, calm" personality â attributes that his media team have emphasized â could have helped to endear him to the public."Conte made careful and thoughtful use of the media, thanks also to the support of professional staff" who had helped to cultivate a media image of Conte as representative of "reliability and political competence, empathy, reassurance, and personal sharing in times of collective difficulty," according to Marino De Luca, a Marie Sklodowska-Curie Research Fellow at the department of politics at the U.K.'s University of Sussex."In the beginning, with his inexperience, he seemed unable to last long (in the role). Instead, he has proven that he can withstand political attacks," he told CNBC. Pandemic politics The coronavirus pandemic in 2020 would have been challenging enough for experienced political leaders, let alone one less than two years into the top job.Conte found himself in the eye of the storm as the virus first emerged in northern Italy in February with the Italian government imposing localized lockdowns in Lombardy and the Veneto, where clusters of cases initially appeared, and then a national lockdown.The pandemic could have prevented Conte's opponents from trying to oust him from office, according to Eurasia Group's Santi, but not for long."As with many other leaders on the continent â irrespective of their actual record in managing Covid-19 â Conte benefited from a noticeable 'rally around the flag' effect," Santi said.Â Yet De Luca noted how the pandemic had also brought about public criticism of Conte in Italy, particularly amid a second wave of infections. Italy is still operating under strict coronavirus restrictions which are not being relaxed over Christmas, as in other European countries, as Italy tries to avoid a third wave of cases. Italian Prime Minister Giuseppe Conte holds a press conference on July 7, 2020 in Rome, Italy.AM POOL | Getty Images News | Getty Images "With the second wave, something has changed," De Luca said. "His popularity has decreased. His choices are more contested by citizens or the self-employed and other categories of workers, such as restaurateurs for example," he said.Frictions have also emerged again in Italy's ruling coalition, most recently over the management of EU recovery funds for Italy in the wake of the pandemic and reform of the European Stability Mechanism, the euro zone's bailout fund.Scores of rebels within M5S had threatened to oppose the government on supporting the reform at an EU level. But in the end Italy's Parliament gave the go-ahead earlier in December (Dec.9) for the prime minister to approve the changes when EU leaders met at a summit on Dec. 10-11.According to Wolfango Piccoli, co-president of Teneo Intelligence, the pandemic has allowed Conte "to concentrate power and secure significant leeway from his political backers" but he has since been found wanting. "The government's disastrous management of the second wave of Covid-19, coupled with the inefficient handling of the financial aid pledged to businesses and workers and an amateurish communication policy, have undermined Conte's standing," Piccoli said in a note.Piccoli has forecast a limited cabinet reshuffle in January as the fragile governing coalition seeks to iron out its differences and formulate a new political program. But, he said, "looking further ahead, Conte's third government will remain a fragile governing arrangement that is utterly inadequate to lead the country out of the economic quagmire precipitated by the pandemic."The prospect of new elections is still far off, experts say, for now, but Eurasia Group's Federico Santi noted that "Conte is still on shaky ground," nonetheless."None of the parties in the government want snap elections, which remain a distant prospect. But many in the coalition would welcome a change in government that brings in a new prime minister, backed by a similar coalition in parliament," Santi said."I suspect that as the healthcare emergency gradually lets up next year, attempts to get rid of Conte will resume in earnest."

Economy recovering faster than expected, inflation needs to be tackled: RBI

24 Dec, 2020, 12:15PM | Business Standards

Indian economy is recovering faster than expected and may post minor positive growth in the third quarter, but efforts need to be redoubled to fight inflation so that it doesn’t hurt the incipient growth impulses, according to the State of the Economy report in the December Bulletin of the Reserve Bank of India (RBI). “Indian economy is pulling out of Covid-19’s deep abyss and is reflating at a pace that beats most predictions," the report said. Although there are headwinds, “steadfast efforts by all stakeholders could put India on a faster growth trajectory,” the report said. The National Statistical Office’s (NSO) end-November release showed that the Covid-19 pandemic imposed retrenchment of the first quarter was much shallower in the second quarter and the economy was reflating at a pace that beats most predictions. RBI’s nowcasting model also shows that the economy will post a positive economic growth rate of 0.1 per cent in the third quarter. The fourth bi-monthly monetary policy in December also projected economic growth to be 200 basis points higher than what it had predicted in October. It said the Indian economy will clock a growth rate of 14.2 per cent in the first half of 2021-22 on top of 0.4 per cent in the second half of 2020-21. “Contractions forecast by various agencies for the year as a whole are being trimmed, and if the current momentum is maintained, the bounce back expected in the last quarter of the year may be stronger than postulated under baseline assumptions," the RBI said. During the Covid-19 pandemic, financial savings of households and corporations have risen, “waiting to be intermediated into productive investments rather than passive holdings of Statutory Liquidity Ratio (SLR) and non-SLR paper.” With economic activities turning around, bank credit is slowly gaining traction. Therefore, with the policy emphasis now shifting towards the more durable drivers of the economy, private investment should turn its focus away from precautionary and deleveraging considerations “to capex, capacity utilisation and building of new capacities," the report said. Although total merchandise exports at $23.5 billion declined 8.7 per cent y-o-y in November, non-oil exports maintained pre-Covid-19 levels for the third consecutive month. Sectors like drugs and pharmaceuticals, agriculture, pharmaceuticals and iron ore showed resilience, while imports declined for the ninth successive month though the pace of contraction is moderating. Oil imports declined 43.4 per cent in November 2020 mainly due to soft international crude prices. But in a sign that demand is getting back in the economy, non-oil imports have returned broadly to pre-Covid levels, the RBI said. The return of demand, though, is putting some pressure on the inflation front. “A combination of rising international commodity prices and increasing pass-through to domestic manufactured goods and services prices, firms striving to recoup lost incomes by raising margins, and demand normalising is adding to core inflation pressures," the RBI said. “Efforts need to be redoubled to excoriate the ‘worm in the apple’ – inflation – before it hurts the impulses of growth that are taking root. Efficient, effective and timely supply management, including checking runaway retailer margins and reducing the incidence of indirect taxes on consumers, can break the back of the inflation pressures before they incipiently broaden and work against the intent of fiscal and monetary stimuli,” the RBI said. Since September, India has managed to flatten the Covid-19 infection curve, barring some localised flare ups. The recovery rate is close to 95 per cent, and vaccine developments are at an advanced stage. Calibrated stimulus measures have also managed to support investment and consumption demand, according to the report. "On the whole, the above-the-line fiscal stimulus will likely boost growth by close to 2 per cent of GDP (gross domestic product) in 2020-21. In other words, it is prudent to look beyond the volatility inherent in high frequency indicators,” it said. The 12 month forward earnings estimate for most companies reveals improvement in outlook. Sectors such as auto and capital goods, which had been hit hard by the lockdown are expecting a turnaround in forward earnings. Healthcare, information technology (IT) and fast-moving consumer goods (FMCG) companies are sighting stronger earnings outlook. “Moreover, intrinsic strength in the manufacturing and services sectors is being built as debt servicing capacity is getting reinforced and leverage is being brought down. India’s farm sector is also forging ahead, backed by pathbreaking marketing reforms," the report said. Liquidity conditions remain comfortable, and banks have returned Rs 37,348 crore of funds taken under long-term repo operations (LTRO) and targeted long term repo operations in favour of cheaper on-tap TLTRO.

India to put in place Coal Import Monitoring System from February 1

23 Dec, 2020, 10:17PM | Economic Times

NEW DELHI: India will implement a Coal Import Monitoring System (CIMS) from February 1 that would require coal importers to submit advance information in an online system for import and obtain an automatic registration number. “The Coal Import Monitoring System (CIMS) shall require importers to submit advance information in an online system for import of items and obtain an automatic Registration Number by paying a registration fee of Rs 1 per thousand, subject to a minimum of Rs 500 and maximum of Rs 1 lakh on CIF value,” Directorate General of Foreign Trade (DGFT) said in a notification. As per the notification, imports of anthracite coal , bituminous coal , coking coal , and steam coal will be subject to the CIMS. “The importer can apply for registration not earlier than 60th day and not later than 15th day before the expected date of arrival of import consignment,” DGFT said. The government already has an import monitoring system for a number of steel items, called SIMS, that keep a tab on imports and boost domestic manufacturing . For CIMS, the automatic registration number shall remain valid for a period of 75 days and the importer would have to enter the registration number and expiry date of registration in the Bill of Entry to enable customs for clearance of consignment.

5 things to know before the stock market opens Wednesday

23 Dec, 2020, 06:32PM | CNBC

Here are the most important news, trends and analysis that investors need to start their trading day:Trump slams Covid stimulus bill, Pelosi welcomesMarkets shake off stimulus saga, futures risePfizer reaches deal to provide additional vaccine dosesTrump issues pardons to 15 peopleElon Musk says Tim Cook refuses meeting about acquiring Tesla 1. Trump slams Covid stimulus bill U.S. President Donald Trump waves as he departs on the South Lawn of the White House, on December 12, 2020 in Washington, DC.Al Drago | Getty Images PresidentÂ Donald Trump railed againstÂ the $900 billion Covid relief billÂ passed by Congress, calling it an unsuitable "disgrace" in a tweet Tuesday evening. He urged lawmakers to make a number of changes to the measure, especially the amount allocated for direct payments to Americans.Trump did not threaten a veto, and he had been expected to sign the legislation into law, along with the bill to keep the government open. The legislation passed both houses of Congress with veto-proof majorities.In a surprising move, House Speaker Nancy Pelosi said she agreed with Trump's call for $2,000 payments to Americans. "Democrats are ready to bring this to the Floor this week by unanimous consent. Let's do it!" she tweeted. 2. Markets shake off stimulus saga, futures rise Traders work on the floor of the New York Stock Exchange.NYSE The market seems to be shrugging off the risk that Trump might delay the passage of the much-needed coronavirus relief package. Futures tied to the Dow Jones Industrial Average rose about 50 points, implying an opening gain of about 60 points. S&P 500 futures climbed 0.2% and Nasdaq 100 futures were flat.The S&P 500 just posted a three-day losing streak as some investors looked to lock in profits after an unexpected year of solid gains. The broad equity benchmark is up more than 14% with six trading days left in 2020. 3. Pfizer reaches deal to provide additional vaccine doses A healthcare worker draws the coronavirus disease (COVID-19) vaccine from a vial at Dignity Health Glendale Memorial Hospital and Health Center in Glendale, California, December 17, 2020.Lucy Nicholson | Reuters Pfizer and BioNTech on Wednesday announced a second deal with the U.S. government to supply an additional 100 million doses of their jointly-developed Covid-19 vaccine. The deal brings the total number of doses to 200 million, which will be delivered to the U.S. by the end of July. The government is paying $1.95 billion for the additional doses.Shares of Pfizer gained about 1% in premarket trading on Wednesday. 4. Trump issues pardons to 15 people U.S. President Donald Trump waves as he walks on the South Lawn of the White House upon his return to Washington from Camp David, November 29, 2020.Yuri Gripas | Reuters TrumpÂ issued pardons to 15 people on Tuesday, including two men convicted as part of special counsel Robert Mueller's investigation, and four former Blackwater USA guards who were convicted in the killings of 14 unarmed Iraqi civilians in Baghdad in 2007.Others who received pardons included two former Republican congressmen who admitted committing financial-related crimes. Trump also commuted all or some of the criminal sentences of five other people, as the president faces his last month in office. 5. Elon Musk says Tim Cook refused meeting about acquiring Tesla Elon Musk revealed that he had reached out to Apple about selling Tesla years ago, but CEO Tim Cook refused the meeting."During the darkest days of the Model 3 program, I reached out to Tim Cook to discuss the possibility of Apple acquiringÂ TeslaÂ (for 1/10 of our current value). He refused to take the meeting," Musk said in a tweet Tuesday.His comment came after Reuters reported that Apple is moving forward with its automotive efforts to target 2024 for production of a self-driving vehicle featuring its lithium iron phosphate batteries.â Follow all the developments on Wall Street in real time with CNBC Pro's live markets blog. Get the latest on the pandemic with our coronavirus blog.

Economic recovery, demand revival spark 2021 hopes for steel sector

23 Dec, 2020, 02:21PM | Economic Times

Recovering economy, sprouting demand and improving prices raise hopes for the country's battered steel sector as it steps into the new year after pandemic-induced disruptions turned 2020 into a "disaster" for the industry. As the sector experiences signs of better times, the apex body of domestic steel makers, ISA, expects good days ahead and surely no more outbreak like that of coronavirus infections. The Indian steel industry grappled with tough times in running their operations as well as witnessed a sharp plunge in demand for steel soon after the coronavirus pandemic and subsequent lockdowns disrupted overall economic activities. Adverse market conditions forced steelmakers to cut down their operations by up to 50 per cent in April. There was a shortage of manpower as many workers migrated to their native places amid the lockdown as well as limitations on the number of staff working at an office or site after gradual unlocking. The nationwide lockdown came into force in late March and the relaxations began in a phased manner only in June. While terming 2020 as a "catastrophe" for the steel industry, Indian Steel Association (ISA) Deputy Secretary-General Arnab Hazra said there is a revival in demand now which will continue to grow in 2021. "We are expecting good days ahead and no more outbreak of any virus like corona in the future. Year 2020 was a disaster, we expect no more disaster. This will save us from further disruption," he said. The outlook for the sector is turning positive and the industry expects the government will spend more on infrastructure in the new year, which will have a multiplier effect on demand, Hazra said, adding that the demand will show resilience to reach to pre-COVID level in 2021. In 2019, the demand was around 100.2 million tonne (MT) and that will fall to 81 MT in 2020, he noted. Helped by government spending and demand coming from steel-intensive sectors, the overall steel demand is expected to reach 100 MT in 2021. "Demand is clearly visible and going forward is expected to become stronger which augurs well for the industry in 2021," he said. JSW Steel Joint Managing D Seshagiri Rao said, 2020 is the worst year in the last 70 years and that the unprecedented pandemic has had a devastating impact on the world economic growth. Even though the overall steel demand is expected to fall in 2020, the industry is experiencing improvement in realisation and margins, he added. According to Rao, the company's expansion plans and inorganic growth through acquisitions are expected to come to fruition by the end of March 2021 coinciding with a rebound in economic activity. JSW Steel's priority is to leverage the availability of additional capacities to meet the incremental demand that would arise due to economic rebound to create value to stakeholders, he said. State-owned SAIL's Chairman Anil Kumar Chaudhary said that from the third quarter of the ongoing fiscal, the market has started improving and will continue to do better in the next fiscal year. The growth in the auto sector, infrastructure and construction, white goods and agri equipment will aid the steel demand in India, he said. Things are improving in the domestic and the international prices are on the rise. Domestic prices are governed by the international prices whether they are of steel or iron ore, Chaudhary said. "Looking at this, we think domestic demand will continue to be strong in the fourth quarter. Overall, this (financial) year should be good despite the pandemic in the first quarter and also the fact that we lost a lot of money in Q1. Q4 will also be good. "Financial year 2021-22 should also be a good year for the industry because the demand has already started picking up and this buoyancy will remain," he said. Electrosteel Steels Limited's CEO Pankaj Malhan said in the last few months since the lockdown was lifted, things have improved and steel demand has started increasing as economic and manufacturing activity is starting to gain pace. He also said that construction activity is also getting back to pre-COVID levels slowly and that the industry is bullish on the price of steel for the next two quarters. "Plus, we are expecting that the government will announce favourable proposals in the (upcoming) Union Budget which will help the steel industry in terms of arresting the increasing price and shortage of iron ore which is a primary raw material for the steel industry by not only capping its price but also by stopping exports at a time when the domestic industry is facing a shortage," he said. Rashtriya Ispat Nigam Ltd (RINL) Chairman and Managing Director P K Rath said "the pace of recovery of the market and surge in demand of steel in the third quarter has raised the hope of closing the year on a better note. Our priorities will be definitely commissioning and stabilising the forged wheel plant and ramping up the plant production to its rated capacity. JSPL Managing Director V R Sharma said the passing year was globally one of the most challenging years for the industry as well as mankind due to the COVID-19. Some steel companies scaled-down production of their operations some had to close their plants, he added.

Borosil Renewables rallies 13% to hit new high; stock zooms 60% in 8 days

23 Dec, 2020, 11:14AM | Business Standards

Shares of Borosil Renewables (BRL) rallied 13 per cent to hit a new high of Rs 211 on the BSE in Wednesday's intra-day trade on the back of heavy volumes on strong growth outlook. In the past eight trading days, the stock has zoomed 60 per cent, as compared to a 0.25 per cent rise in the S&P BSE Sensex. At 11:11 am, BRL was trading 12 per cent higher at Rs 208, against a 0.42 per cent gain in the benchmark index. The trading volumes on the counter rose 1.5 times with a combined 2.5 million equity shares changing hands on the NSE and BSE. Last week, BRL had successfully raised Rs 200 crore through a qualified institutions placement (QIP) issue. The company said the funds raised through this QIP will help to undertake planned expansion and that it is excited to capitalise on the business opportunity that industry offers. It further said the funds raised via the issue are planned to be utilized to service its capital expenditure requirements for a brownfield expansion to more than double its solar glass production capacity from 450 tons per day (TPD) to 950 TPD. In 2019, BRL had expanded its glass capacity from 180 TPD to 450 TPD, which is equivalent to the production of 2.5 gigawatts of solar modules annually. It would now further expand the capacity to 950 TPD. Meanwhile, the government is set to levy duty at 9.71 per cent on textured tempered coated or uncoated glass imports (of which the company is the sole manufacturer in India) from Malaysia. The Borosil group company is engaged in the manufacturing of low iron solar glass for application in photovoltaic panels, solar thermal flat plate collectors and greenhouses and is the only solar glass manufacturer in India. The company services India's solar panel manufacturers while simultaneously exporting its products to Europe, Turkey, and North America.

Juggling to survive the year, small businesses fret over lack of profitability

23 Dec, 2020, 10:20AM | Economic Times

The year gone by may well have been the worst nightmare that came true for the MSME sector. Already reeling under the impact of delayed payments and slowdown in demand in 2019, the sector had long been facing its share of turmoil. But absolutely nothing could have prepared it for the eventuality that was to follow. The coming of the virus and the resultant lockdowns that were announced was the final blow for a sector, often referred to as the ‘backbone’ of the Indian economy. And for a good reason. India is home to over 60 million MSMEs , accounting for 30% of India’s GDP and 40% of the overall exports in the country. Despite such an overwhelming presence, however, the sector has been in dire straits since the start of this fiscal. Q1 was particularly distressing when the reality of shuttered units, no sales, escalating expenses and dead stock played out in the most macabre fashion for MSMEs. With Work From Home (WFH) being an alien concept and fixed overheads adding strain to the limited cash reserves, the journey even for the more established units had been anything but easy. Even the economic stimulus package doled out by the government in May had offered little relief, with MSMEs not finding it on a par with expectations. As part of the package, a Rs 3-lakh crore collateral free loan scheme for businesses, Rs 20,000 crore subordinate debt for MSMEs and Rs 50,000 crore equity infusion through MSME Fund of Funds (FoF) were announced by Finance Minister Nirmala Sitharaman earlier this year in May. However, this had left the industry largely unhappy, saying that it did not offer them the direct fund support needed to ward off immediate expenses. And while the second quarter showed a slow pick up post the various phases of Unlock, Q3 came with mixed sentiments. The MSMEs whom ET Digital reached out to say that while sales have picked up considerably, profitability still seems far in sight. Profits or the lack of it For most in the manufacturing sector, a rise in sales has been offset by a corresponding rise in commodity prices. Jayanth Mutha, Director of agri-electrical company Himlite Products, talks about how the raw material prices have risen sharply in this time. “Prices of copper, brass, plastic etc have all gone up by 30-40%. We can't pass it on to consumers; else there won't be any buyers. So though sales have been 100% of previous years on volume basis, the profit has just gone. We are facing losses so that sales can continue and we can survive,” he rues. Mutha adds that though this is a market phenomenon which shows up every few years, they did not expect it to happen at this time. “This will continue for at least 3-4 months. We have seen such similar rallies eight years back too, but did not expect that Covid would lead to it. It came out of the blue,” he avers. In sync with Mutha’s views, Upkar Singh Ahuja, MD of the New Swan Group, which manufactures agricultural and auto part components, and is the President of the Chamber of Industrial and Commercial Undertakings (CICU) President, says that the rising steel price in the US is hurting the auto industry. “The steel cartelisation is affecting the industry. Also, the high rate of GST of 28% on our industry needs to be reduced. For us, Q3 was good and almost at par with Q3 last year. The maximum sales were seen for two-wheeler tractors and farm machinery,” he highlights. The only thing that has been certain about this year is that the pain has been broad-based and has impacted everyone regardless of sector or industry. For apparel players, 2020 has been a year of jugglery with WFH and staying indoors being the order of the day. Fashion lines gave way to loungewear collections and comfort wear, with more consumers looking at apparel that could be relevant to the ‘new normal’. Shivani Poddar, Cofounder, FabAlley & Indya. Shivani Poddar, Cofounder, FabAlley & Indya says that Q3 has seen a good turnaround for their business. “Q3 has been the best quarter for a lot of businesses this year because of festive shopping, which started in September. Q2 was a slow quarter for our business since offline footfalls were low and people were cutting spends on discretionary products like fashion and lifestyle. Aided by good offers, promotions and introduction of categories such as masks, WFH and loungewear, we have seen fantastic recovery in Q3,” she enthuses. The momentum also picked up for Saankhya Labs, a wireless communication and semiconductor chipset company in Q3, with investments in new product developments picking up. “The overall mood in the sector has been a lot more positive compared to Q2 and in the beginning of the fiscal, having gone past the first shock wave from the pandemic. But the delivery of hardware products continue to experience delays due to electronics supply chain issues,” states Vishwakumara Kayargadde, COO, Saankhya Labs. Online gains traction The digital domain, however, saw a different side of the story, with sentiments being fairly positive and robust for sellers in the online space. Hyderabad-based Chitra Vyas, who has been a seller on Flipkart since 2016 and had the fashion category of footwear previously, quickly pivoted to include dry fruits as part of her portfolio. And this worked wonderfully for her business since these formed a part of the ‘essential products’ allowed during lockdown. “We saw a sudden spike in the category from May. On the first day itself we saw 800 orders. People have been anxious of their health and did not want direct contact of purchase. More consumers shifted focus to online,” she says exuberantly. Vyas plans to expand the food category to include more of regional food and other types of food categories from their manufacturing unit. Dealing in skin care and hair care products, Kartbin Online Services ’ Sanjib Prasad also had a stressful year as orders slipped from 1700 to around 350 per day during the lockdown. However, the demand for sanitisers and masks kept his business afloat during that time, and later the demand for his existing categories saw a steady increase. Prasad sees an uptick in ecommerce sales in the New Year and plans to launch 2-3 more categories in apparel, after the encouraging demand seen in his t-shirt business. Q3 also saw good demand in some categories with the onset of the marriage season. Rahul Bajaj, Director of Sree Shakti Enterprises , a kitchenware supplier to Walmart India cash and carry stores, says that the spike in marriages and increase in farmer earnings augured well for them. However, he says that they will close the fiscal at the same turnover as last year since Q1 sales were nil in kitchenware and Diwali gifting was also relatively low this time. Clothing manufacturing facility of Kartbin Online Services. When the clock strikes 12 So with the mixed bag experienced by MSMEs in the latter part of this year, will 2021 herald a new beginning for a sector dubbed as the ‘growth engine’ of the economy? The MSMEs who spoke to ET Digital expressed skepticism about the first half of the year, saying it would continue to be a challenging time. “The profit has just gone due to the steep increase in raw material costs. Profitability will kill more MSMEs than what Covid did. It will be a split. The first six months will be very difficult. After that it will stabilise - the rally cannot sustain more than that,” adds Mutha. Bajaj foresees things to be comfortable for the sector only after August. He feels that we should reorient the approach in order to come up next year in a better position. “We need to take Covid out of our mind and focus on recent developments. We should be competitive in the world scenario, be it as an MSME or a large player. Contingency balances and other financial aspects which we never thought of earlier should be a part of the plan now,” he explains. He adds that the next six months could be problematic as savings have saturated and lockdown orders in some states may also continue. But there is a ray of hope, too. “The vaccine story is coming up in a good manner. Things won’t get any tougher than what we have already seen. The first half of the year can be difficult, but the second half should be excellent,” sums up Bajaj fervently.

Elon Musk says he once considered selling Tesla to Apple, Tim Cook didn't want to take a meeting

23 Dec, 2020, 04:44AM | CNBC

SpaceX owner and Tesla CEO Elon Musk (R) gestures as he arrives on the red carpet for the Axel Springer Awards ceremony, in Berlin, on December 1, 2020.Britta Pedersen | AFP | Getty Images On Tuesday, Tesla CEO Elon Musk tweeted that he considered selling his electric car company to Apple in recent years, but Apple CEO Tim Cook was not even interested in taking a meeting.Specifically, Musk wrote in a tweet on December 22:"During the darkest days of the Model 3 program, I reached out to Tim Cook to discuss the possibility of Apple acquiringÂ TeslaÂ (for 1/10 of our current value). He refused to take the meeting."On Tuesday, Musk also made remarks about lithium iron phosphate batteries that Apple is reportedly developing for use in vehicles, per a Reuters report on Monday."Strange, if true," Musk wrote. "TeslaÂ already uses iron-phosphate for medium range cars made in our Shanghai factory.- A monocell is electrochemically impossible, as max voltage is ~100X too low. Maybe they meant cells bonded together, like our structural battery pack?"It was a rare admission from the mercurial CEO that he once considered giving up control of the company he helped build and take to a market value that's more than the top nine automakers combined. Tesla has not discussed a sale in any financial filing.In 2018, Musk did publicly say the car business was "hell," and that he was sleeping at the factory to try to solve the problems the company was having as it tried to start mass-manufacturing its Model 3 electric sedans.He also previously said, in a tweet, that Tesla once got "about a month" from bankruptcy during the Model 3 ramp-up â a detail that the company never disclosed in its quarterly filings.Tesla and Apple have always competed for talent in and beyond Silicon Valley. In 2015, Musk called Apple the Tesla graveyard. "If you don't make it at Tesla you go work for Apple," he quipped then.In July 2018, Apple hired Tesla engineering chief Doug Field â a former Apple employee â back to the company, following scores of other employees.At the time, Tesla told CNBC in a statement about Apple's ability to poach key employees from its ranks: "Tesla is the hard path. We have 100 times less money than Apple, so of course they can afford to pay more. We are in extremely difficult battles against entrenched auto companies that make 100 times more cars than we did last year, so of course this is very hard work."Apple has never acknowledged plans to build a car, but Cook has admitted that it's worked on "autonomous systems" that could be used in self-driving cars or for other purposes.Apple and Tesla did not immediately respond to requests for comment.

India's favourite dish: A Biryani ordered per second, on Swiggy in 2020

22 Dec, 2020, 10:17PM | Business Standards

At a time when the coronavirus pandemic has accelerated the adoption of food delivery platforms, a biryani was ordered more than once every second in 2020, according to the fifth edition of Swiggy’s annual StatEATstics analysis. The orders include different biryani varieties such as vegetarian, chicken, mutton or aloo. The StatEATstics order analysis is based on millions of orders received by Swiggy, India’s largest food ordering and leading on-demand delivery platform, between January and December 2020. Over 300,000 new users made their Swiggy debut by ordering in a chicken biryani. However, its vegetarian counterpart did not have the same luck. For every veg biryani, there were six chicken biryani orders. “The mighty chicken biryani reaffirmed its place as India’s favourite dish,” says the report. While Swiggy delivered 5 times as many orders to ‘Home’ addresses compared to ‘Work’ addresses between January and March, that number rose to 9 times as many Home orders vs. Work orders in April and May. Dishes like paneer butter masala, masala dosa, chicken fried rice and mutton biryani continued to be India’s favourite pick-me-up dishes. Perhaps missing their office cappuccinos and masala chais while working from home, thousands of Swiggy users fought the post-lunch slump by ordering in varieties of tea and coffee. Swiggy also delivered over 200,000 pani puri orders post-lockdown. ALSO READ: 30% of urban seniors fear contracting coronavirus: Max India survey Since launching in August, Swiggy HealthHub, a curation of healthy food items on Swiggy has grown exponentially in cities like Bengaluru, Delhi, Mumbai, and Hyderabad. The users in the National Capital Region (NCR) ordered the healthiest meals. The users in Bengaluru showed a high resolve to get healthy - at 130 per cent. The city saw the highest increase in healthy food orders on Swiggy HealthHub. Supergrains emerged as India’s favourite way to get healthy with a 127 per cent increase in orders for dishes based on them. It was followed by Vegan (50 per cent increase) high-protein dishes (49 per cent) and keto-friendly items (46 per cent). People ate an average of 342 calories for dinner. Lunches ranged at under 350 calories, while breakfast, the day’s most important meal, saw people consume an average of 427 calories. For those who chose not to order in but cook themselves, Swiggy delivered over 160,000 meal kits via Instamart. It gave them the restaurant dining experience in the comfort of their homes. Swiggy delivered over 75,000 kgs of onion. This is the most ordered item on Swiggy Instamart till now. Besides that other kitchen essentials like potatoes, bananas, coriander leaves and milk were also ordered. ALSO READ: Iron ore may stay elevated with robust Chinese demand, supply disruptions Forgotten keys, chargers, jackets and spectacles were the most common tasks in pre-pandemic for Swiggy Genie. Post lockdown, Swiggy’s pick-up and drop service Genie which is present in over 65 cities, delivered daily essentials and food. These products included snacks and books to parents juggling remote work and their kids’ online school sessions, and even rakhis and chocolates during Raksha Bandhan. Home-cooked food was one of the most ferried items in 2020, as people reached out to help elderly relatives, friends and colleagues struggling without help. A rising interest in baking also meant a lot of people were swapping goodies and organising socially-distant potlucks. “We received over 120,000 food-related tasks on Swiggy Genie,” says the report. “Our shortest delivery request came in from someone in Bangalore and spanned a meagre 600 meters to collect an empty water can from their home and exchange it for a full one at the store.” Cities such as Bengaluru, Mumbai and Chennai turned to Swiggy Genie the most for food and daily essentials. Kolkata found itself a place in the top three cities for the delivery of medicines and Covid essentials. India’s meat of choice was chicken with over 600,000 kgs ordered on Swiggy. Rohu and Catla (cut Bengali Style,) were the most popular fish orders. Bengaluru emerged as the most meat-loving city, according to the report.

3rd-gen Mahindra Scorpio low-specced variant spied

22 Dec, 2020, 09:21PM | Times Of India

NEW DELHI: Mahindra is gearing up for the launch the 3rd-gen Scorpio and the SUV has probably entered its final stage of testing. 3rd-gen Mahindra Scorpio , or as the industry reports suggest, Scorpio Sting , is expected to hit the market by mid-2021. The 2021 Mahindra Scorpio was caught on camera while testing in the suburbs of Coimbatore. The spied images that surfaced online seem to showcase the low-specced version of the 2021 Scorpio and the SUV sported 17-inch steel wheels, an elongated hood, exaggerated wheel arches and the front fascia flaunts a grille with vertical slats and many of the details look like they may be replaced later. On the inside, the SUV boasts a dual-tone brown and black theme with leather upholstery seats. The interiors of the test mule suggest that there won’t be any drastic changes in the cabin. The SUV also boasts a similar looking steering wheel, analogue cluster, rotary dials in the central console and the prototype also sported provisions for an electric sun-roof. The 3rd-gen Scorpio is expected to boast a derivation of the 2.0-litre mStallion petrol engine of Mahindra Thar . The engine is likely to be paired to a 6-speed MT or a 6-speed torque converter automatic transmission. Picture credits: Team-BHP

Goa Mining halt led to sense of all-round gloom in state economy: Study

22 Dec, 2020, 03:53PM | Business Standards

The stoppage of mining in Goa dealt a devastating blow to the livelihoods of people and has resulted in all-round gloom in the state economy and social life, according to a recent study. The mining in Goa came to a halt in 2018 after the Supreme Court quashed the renewal of 88 mining leases. A recent study on impacts of stoppage of mining in Goa on socio-economics carried out by Indian Institute of Technology-Indian School of Mines, Dhanbad, said that "the survey results clearly demonstrated a sense of all-round gloom in the state economy and social life." The closure of mining has dealt a devastating blow to the livelihoods of people which includes both in mining and non-mining areas. Agriculture, art and craft, tourism and all allied industries have suffered because of suspension of mining activities, it said. "With mining closure, the drop in income level has been very sharp not only in mining talukas but the impact has been felt all across Goa. Post closure, there has been at least a 30 per cent drop in income across talukas and in some talukas like Mormugao the drop is as high as 50 per cent," it said. Stoppage of iron ore mining in Goa has impacted revenues worth over Rs 34 billion and the livelihoods of several dependent segments have been affected and left the stakeholders of the industry without any alternate sources of income. The savings of the households have dipped drastically after the closure of the mines. The closure, it said, has resulted in loss of direct and indirect employment and has affected over 3,00,000 households in Goa. The total contribution of mining and its activities to Goa's state gross domestic product (GDP) has been much over 15 per cent. For two consecutive years, the Goa government in its annual budgets has conceded that around 20 per cent of its GDP decline is attributable to mining. The economic survey shows that Goa earned Rs 244.9 crore just as royalty in 2016-17 from iron ore extraction and exports. Since 2015, the state has collected Rs 118.7 crore for Goa Mineral Ore Permanent Fund. The halt of mining activity has led to major loss of investor confidence which would have a long-term negative impact on Goa's economy, the study observed. The psychological and social costs of prolonged unemployment post the ban on mining in Goa has impacted harshly on the quality of life of affected individuals and families, it said. Experiences of low self-esteem and loss of self-identity impact on physical and mental health and can extend to broader consequences of social isolation and the loss of social networks and support, the study said. The impact of redundancy causes family disruption and breakdown. Unemployment has been known to induce substance abuse. This savage impact can foster suicidal tendencies, marriage breakdowns, drug and alcohol abuse and much more. Goa has been hit with similar aspects of increased alcoholism leading to family upheavals and higher reported cases of domestic violence as a result of the same, it said. "Over 82 per cent of the respondents opined that in the near future the economy of the state would be further damaged due to the mining imbroglio. They also mentioned that youth migration is high but would be much higher in the coming months and Goa would be a state with much of the youth and next generation absent," the study said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

NCB arrests two Nigerian nationals, seizes drugs in Bengaluru

22 Dec, 2020, 03:42PM | Business Standards

Two Nigerian nationals, including a woman, have been arrested here on charges of drug peddling and 3,000 ecstasy pills and cocaine, received from the Netherlands and Ethiopia through postal parcel service, seized by the Narcotic Control Bureau, the central agency said on Tuesday. Acting on intelligence inputs, a team of NCB officials arrested Ramla Shedafa Nancy and Emmanuel Michael when they arrived to collect the parcels at the Foreign Post Office here on December 18, a release from the agency said. A total of 3,000 yellow and grey coloured ecstasy pills, totally weighing 610 gms and hidden in layers of table cloth in the parcels. The NCB team also recovered 235 grams of cocaine concealed in the inner walls of a corrugated box from another parcel, it said. Preliminary investigation revealed that ecstasy pills were sourced from the Netherlands for distribution. The cocaine was received from Ethiopia, the NCB, which said. The bureau, which has busted several drug rackets in the state in the past few months, said it suspected that the passports of the arrested Nigerians were fake. MDMA (methylenedioxy-methamphetamine), commonly known as ecstasy, is a party drug that alters mood and perception and reduces feelings of increased energy and pleasure. The NCB release said the popularity of such synthetic drugs have increased manifold over the past five years in the country. Cocaine, also known as coke, is a strong stimulant most frequently used as a recreational drug. It was commonly snorted, inhaled as smoke, or dissolved and injected into a vein, the release said, adding high doses of the drug can result in very high blood pressure or body temperature. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

JSW Steel to acquire 31% stake in Italy's GSI Lucchini

22 Dec, 2020, 11:20AM | Economic Times

JSW Steel's Italian subsidiary has signed an agreement to acquire the remaining 30.73 per cent stake in GSI Lucchini SpA of Italy for one million euros (about Rs 9 crore). The balance share capital of GSI is already held by JSW Steel Italy Srl. The manufacturing unit of GSI is located at the port city of Piombino in Tuscany region , providing easy access to export markets . This also allows specific advantages in terms of lead time, service level and logistics cost in its target markets, JSW Steel said in a statement. "The port-based facility also gives GSI the flexibility and access to import raw material's bars/blooms and billets to supplement supplies as when required." GSI is a producer of forged steel balls used in grinding mills with predominant application in mining processing. The brand is widely recognised in Europe and Africa , and is among the prominent supplier in African mines. "In summary, the proposed transaction provides a unique opportunity for JSW to consolidate its stake in GSI." The transaction is subject to fulfilment of conditions precedent and other terms mentioned in the share purchase agreement.

iPhone 12 mini review: Apple's compact smartphone punches above its weight

22 Dec, 2020, 10:01AM | Business Standards

Many people these days fancy big-screen smartphones but are averse to bulky designs, which is unfortunately what you get in most current-generation big-screen devices. Smartphone makers have in the past made efforts to design balanced smartphones with optimum size and big screen. But they have restricted such products to the midrange segment, leaving the users of premium smartphones in the lurch. That said, there is now a smartphone, the Apple’s iPhone 12 mini, which packs the best of both the worlds – a top-end premium device of an optimum size and a big screen. iPhone 12 mini: Design The iPhone 12 mini is a no-compromise premium smartphone, which is small in size but not in any other respect. It has the same flat-frame design of its siblings in the iPhone 12 series. The iPhone 12 mini flaunts a premium glass-aluminium construction, with a ceramic shield glass on the front touted to be 4x more resistant to drops than the previous generation. However, the textured scratch-resistant glass and stainless steel frame on the Pro models have been replaced with a glossy glass and an aluminium frame in the mini. The phone’s ergonomic design is complemented by a lightweight (133g) build, which aids its in-hand feel and does not make your jeans pocket look unnecessarily bulky when placed there. Some compromises have been made in the iPhone 12 mini but they are not on parameters that directly impact the handling of the phone. For example, the iPhone 12 mini is IP68 rated for water and dust resistance, and it is said to withstand water abuse at a maximum depth of 6 metres for up to 30 minutes. iPhone 12 mini: Display Despite being as big as the iPhone SE 2020 (review), the iPhone 12 mini sports an ample screen of 5.4 inches, which is good 0.7-inch bigger than the former. The display size is neither small nor too big. It’s just right, and it complements the iPhone 12 mini’s overall dimensions. It is an OLED screen of a 2340 x 1080 resolution (Super Retina XDR display) that works well for most content you consume on a mobile device. In terms of performance, the screen is bright and stays legible under direct sunlight. The brightness almost doubles (1200 nits) for high dynamic range (HDR) content, resulting in exceptional contrast ratio with deep blacks and true whites. Like its elder siblings, the iPhone 12 mini has a true tone display that adjusts the colour temperature automatically based on ambient light conditions. iPhone 12 mini: Camera The iPhone 12 mini has a dual camera set-up on the back, featuring two 12-megapixel sensors — wide and ultra-wide. Both the sensors are capable of delivering consistent results, irrespective of light conditions. Though the phone lacks a dedicated telephoto lens — and the optical zoom capability therefore — the 2x digital zoom is good enough for day-to-day imaging. Despite some compromises, such as the absence of night-mode portraits and sensor-shift optical image stabilisation, the iPhone 12 mini does not lag far behind its premium siblings in the Pro series. On the brighter side, some of the pro features like night mode for both wide and ultra-wide sensors is available here, and they give a major boost to the phone’s low-light imaging. Similarly, the camera system on the iPhone 12 mini is capable of HDR video recording with Dolby Vision at up to 60 frames per second from the rear sensor and 30 fps from the front. The iPhone 12 mini’s 12MP front camera is similar in performance to the iPhone 12 Pro. It supports most of the camera features available for the rear-camera module, including night mode, portraits, and live photos. iPhone 12 mini: Performance The iPhone 12 mini is powered by Apple’s 5nm process-based A14 Bionic chip, which is the same chip that powers the rest of the iPhone 12 series. Therefore, the performance is top-notch and the phone handles day-to-day tasks with ease. It does not slow down or show any weakness even while handling processor- or graphic-intensive tasks like multimedia editing, 4K 60fps video recording, etc. It does warm up at times but not so much as to become uncomfortable to hold and operate. Talking of the battery life, the phone sails through a day on a single charge on moderate usage but requires intermittent charging if used for power-intensive purposes like extended video recording or streaming videos over the internet. As for charging, the iPhone 12 mini supports up to 20W fast-charging through wired charger (sold separately) and up to 12W through the newly introduced MagSafe charger (sold separately at Rs 4,500). The phone takes about an hour to fully charge using the 20W wired charger. The charging time extends to about two hours through the MagSafe wireless charger. iPhone 12 mini review: Verdict Priced Rs 69,900 (64GB storage) onwards, the iPhone 12 mini is a compact smartphone that punches well above its weight. Unlike other compact-sized smartphones like the Google 4a (review), the iPhone 12 mini does not cut corners on any front and offers an experience that is somewhat similar to what you get in the iPhone 12 Pro (review) models. It is an ergonomically sized smartphone that is otherwise as premium as it gets. The phone fully justifies its premium pricing.

Stocks to watch: Tata Motors, Thermax, Lupin, Wendt, Edelweiss, Majesco

22 Dec, 2020, 08:22AM | Business Standards

After a massive selloff on Monday, benchmark indices looked set to return to their winning ways as SGX Nifty traded over 1 per cent higher at 13,430, at around 8.20 am. Here are the top stocks to track in today's session: Tata Motors: The auto maker is set to increase commercial vehicle prices from January 1, 2021 owing to steady rise in material and other input costs, impact of forex and transition to BS-VI norms, that have raised cost of vehicle manufacturing. Edelweiss Financial Services: Edelweiss Financial Services (EFSL) on Monday said it will raise up to Rs 200 crore through issuance of secured redeemable non-convertible debentures (NCDs). The base size of the issue is Rs 100 crore, with an option to retain over-subscription up to Rs 100 crore, the company said in a release. NIIT: The company will consider buyback of equity shares at its board meeting on December 24. Thermax: The company iIncreased its stake in First Energy Pvt. to 100 per cent from 76 per cent by acquiring the remaining stake. With this, First Energy becomes a wholly-owned subsidiary of the company. Lupin: Thepharma company, on Monday, said it has received approval from the US health regulator to market a generic drug used in the treatment of seizures associated with Lennox-Gastaut syndrome. The company has received approval from the USFDA for its Rufinamide Oral Suspension in 40 mg/mL strength, Lupin said in a statement. JSW Steel: JSW Steel’s Italian unit has entered into a share purchase agreement with Industrial Development Corporation, South Africa to acquire 30.73 per cent of GSI Lucchini S.p.A. for a cash consideration of 1 million Euros. The a Acquisition is made to strengthen its presence in overseas grinding media markets. JSW Steel's Italian subsidiary already holds balance 69.67 per cent stake in GSI. Wendt: The promoters of Wendt will sell up to 4.74 per cent stake in the company via OFS during December 22-23; floor price set at Rs 2,200 per share. Majesco: Edelweiss Retail Finance bought 2.04 lakh shares of Majesco on NSE at Rs 974 per share. IDBI Bank: IDBI Bank on Monday said it had option to draw Rs 1,500 crore as equity capital from its promoter Life Insurance Corporation of India (LIC). Future Enterprises: The firm defaults on payment of interest of Rs 13.91 crore due on non-convertible debentures. Prabhat Dairy: Sebi on Monday granted a six-month extension to Prabhat Dairy Ltd (PDL) to complete the delisting process. The company received shareholders' nod for delisting the company on October 14, 2019. Birlasoft: Acacia II Partners LP on Monday offloaded more than 67 lakh shares of Birlasoft worth over Rs 137 crore through an open market transaction. According to the bulk deal data available on NSE, Acacia II Partners LP disposed of 67.11 lakh scrips of the company at an average price of Rs 205.15 per share. Max Financial Services: Avendus Absolute Return Fund bought 16,73,026 shares in the company at Rs 653 per share. However, Moneyline Portfolio Investments sold 37.40 lakh shares at Rs 654.55 per share. Coal India: State-owned Coal India allocated 25.78 million tonnes (MT) of coal in the first eight months of this fiscal under spot e-auction scheme, registering a year-on-year increase of 59.4 per cent. Coal India had allocated 16.17 MT of coal in the April-November period of the previous fiscal, according to government data. Bank of Baroda: Public sector lender Bank of Baroda (BoB) has signed a memorandum of understanding (MoU) with Indian Navy and Indian Coast Guard under which the bank would offer customised services along with a host of facilities to account holders. Indian Bank: The Special Resolution for appropriation of accumulated losses of Rs 18,975.53 crore was passed with requisite majority by the shareholders of the bank during the EGM. Engineers India: The company fixed January 1, 2021 as the record date for share buyback.

Apple plans to make cars by 2020, may include its own battery tech: Report

22 Dec, 2020, 06:57AM | Business Standards

By Stephen Nellis, Norihiko Shirouzu and Paul Lienert (Reuters) - Apple Inc is moving forward with self-driving car technology and is targeting 2024 to produce a passenger vehicle that could include its own breakthrough battery technology, people familiar with the matter told Reuters. The iPhone maker's automotive efforts, known as Project Titan, have proceeded unevenly since 2014 when it first started to design its own vehicle from scratch. At one point, Apple drew back the effort to focus on software and reassessed its goals. Doug Field, an Apple veteran who had worked at Tesla Inc, returned to oversee the project in 2018 and laid off 190 people from the team in 2019. Since then, Apple has progressed enough that it now aims to build a vehicle for consumers, two people familiar with the effort said, asking not to be named because Apple's plans are not public. Apple's goal of building a personal vehicle for the mass market contrasts with rivals such as Alphabet Inc's Waymo, which has built robo-taxis to carry passengers for a driverless ride-hailing service. Central to Apple's strategy is a new battery design that could "radically" reduce the cost of batteries and increase the vehicle's range, according to a third person who has seen Apple's battery design. Apple declined to comment on its plans or future products. Making a vehicle represents a supply chain challenge even for Apple, a company with deep pockets that makes hundreds of millions of electronics products each year with parts from around the world, but has never made a car. It took Elon Musk's Tesla 17 years before it finally turned a sustained profit making cars. "If there is one company on the planet that has the resources to do that, it's probably Apple. But at the same time, it's not a cellphone," said a person who worked on Project Titan. It remains unclear who would assemble an Apple-branded car, but sources have said they expect the company to rely on a manufacturing partner to build vehicles. And there is still a chance Apple will decide to reduce the scope of its efforts to an autonomous driving system that would be integrated with a car made by a traditional automaker, rather than the iPhone maker selling an Apple-branded car, one of the people added. Two people with knowledge of Apple's plans warned pandemic-related delays could push the start of production into 2025 or beyond. Shares of Tesla ended 6.5% lower on Monday after their debut in the S&P 500 on Monday. Apple shares ended 1.24% higher after the news. Apple has decided to tap outside partners for elements of the system, including lidar sensors, which help self-driving cars get a three-dimensional view of the road, two people familiar with the company's plans said. Apple's car might feature multiple lidar sensors for scanning different distances, another person said. Some sensors could be derived from Apple's internally developed lidar units, that person said. Apple's iPhone 12 Pro and iPad Pro models released this year both feature lidar sensors. Reuters had previously reported that Apple had held talks with potential lidar suppliers, but it was also examining building its own sensor. As for the car's battery, Apple plans to use a unique "monocell" design that bulks up the individual cells in the battery and frees up space inside the battery pack by eliminating pouches and modules that hold battery materials, one of the people said. Apple's design means that more active material can be packed inside the battery, giving the car a potentially longer range. Apple is also examining a chemistry for the battery called LFP, or lithium iron phosphate, the person said, which is inherently less likely to overheat and is thus safer than other types of lithium-ion batteries. "It's next level," the person said of Apple's battery technology. "Like the first time you saw the iPhone." Apple had previously engaged Magna International Inc in talks about manufacturing a car, but the talks petered out as Apple's plans became unclear, a person familiar with those previous efforts said. Magna did not immediately respond to a request for comment. To turn a profit, automotive contract manufacturers often ask for volumes that could pose a challenge even to Apple, which would be a newcomer to the automotive market. "In order to have a viable assembly plant, you need 100,000 vehicles annually, with more volume to come," the person said. Some Apple investors reacted to the Reuters report on the company's plans with caution. Trip Miller, managing partner at Apple investor Gullane Capital Partners, said it could be tough for Apple to produce large volumes of cars out of the gate. "It would seem to me that if Apple develops some advanced operating system or battery technology, it would be best utilized in a partnership with an existing manufacturer under license," Miller said. "As we see with Tesla and the legacy auto companies, having a very complex manufacturing network around the globe doesn't happen overnight." Hal Eddins, chief economist at Apple shareholder Capital Investment Counsel, said Apple has a history of higher margins than most automakers. "My initial reaction as a shareholder is, huh?" Eddins said. "Still don't really see the appeal of the car business, but Apple may be eyeing another angle than what I'm seeing." (Reporting by Stephen Nellis in San Francisco, Norihiko Shirouzu in Beijing; and Paul Lienert and Ben Klayman in Detroit; editing by Jonathan Weber, Edward Tobin and Sonya Hepinstall) (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

New coronavirus strain infects global markets; Sensex, Nifty fall over 3%

22 Dec, 2020, 01:24AM | Business Standards

Global stocks tumbled on Monday amid panic selling as a new strain of coronavirus emerging from the UK led to fresh travel restrictions, casting a cloud over the prospects of economic recovery. The Sensex plunged 1,407 points, or 3 per cent, to end at 45,554 in its biggest fall in percentage terms since April, while the Nifty dropped 432 points, or 3.14 per cent, to end the session at 13,328. Monday's fall saw investor wealth shrink by Rs 6.6 trillion, based on the market capitalisation of all listed companies on the BSE. The new strain of the virus forced the UK government to impose fresh lockdown in London on Sunday, which requires more than 16 million Britons to stay at home. Moreover, many countries, including the UK's regional neighbours, suspended travel from the island nation. Experts warned that the new strain was 70 per cent more transmissible. "The rally was a little overdone over the last couple of weeks, and investors were looking for a reason to book profits. We have seen many stocks with no credibility in the books running up, and this is a global trend. The news about the new virus strain in the UK provided them with an opportunity to take money off the table," said Saurabh Mukherjea, founder and chief investment officer, Marcellus Investment Managers. Analysts said the mutant strain of the virus was worrying investors who were counting on the roll-out of the vaccine, and raised concerns on whether the spread of the pandemic would be brought under control in the near future. "There is worry amongst investors that the new strain of the virus could lead to lockdown across the globe during the holiday season," said Andrew Holland, CEO, Avendus Capital Alternate Strategies. Safe haven assets like treasuries and gold advanced. The elevated levels of valuations in Indian equities also made investors turn cautious. In a note to investors, Nomura said the Street's earnings growth expectations were high and market valuations were at a peak at a time when prospects of growth revival weren't robust enough. "Further, the Street seems to be ignoring the potential impact of GDP contraction in H1FY21 on future demand. Despite favourable liquidity conditions, credit growth and spreads have not improved thus far," Saion Mukherjee, head of India equity research, Nomura wrote. ALSO READ: Markets may remain on tenterhooks amid fears of new Covid-19 strain The benchmark indices had risen more than 80 per cent from its March lows on the back of buying by foreign portfolio investors (FPIs), and due to optimism surrounding progress in vaccine trials in the last one month. Jyotivardhan Jaipuria, founder, Valentis Advisors, said the market valuations were expensive and returns in the next few years would come from earnings growth. "Investors hope that next year will be normal as people get vaccinated. If earnings growth is robust, then we could be looking at market returns which are in high single digits," said Jaipuria. Experts said measures taken by the Biden administration vis-a-vis tax hikes and stimulus, and the smooth roll-out of vaccination would determine the market movement. "And lastly the US dollar affects the performance of emerging markets like India. If the dollar continues to depreciate, it's good for India," said Jaipuria. Indian manufacturing companies like Tata Steel, UPL, SRF, Motherson Sumi, Balkrishna Industries and Tata Motors have exposure to Europe and the UK. Their stocks were down between 4.6 per cent and 9 per cent on Monday, much higher than the 3 per cent fall in leading indices. As many as 466 stocks were locked in the lower circuit on the BSE on Monday. The market breadth was highly negative with total advancing stocks at 564 and those declining at 2,472 on the BSE. All the Sensex components ended the session with losses. ONGC was the worst-performing Sensex stock, and ended the session with a loss of 9.15 per cent. IndusInd Bank, Mahindra & Mahindra, and State Bank of India fell more than 6 per cent. All the BSE sectoral indices ended the sessions with losses. Infrastructure and Metal stocks fell the most, and their gauges fell 6.3 per cent and 6.1 per cent, respectively. Analysts said the presence of highly leveraged stocks and fears of metal prices crashing led to the steep fall in these sectors. "When the market falls, investors exit stocks which are unlikely to hold on to the gains. If there is an economic slowdown metal prices will crash," said Siddhartha Khemka, head of research (retail), Motilal Oswal Financial Services. FPIs sold shares worth Rs 323 crore while domestic institutional investors bought shares worth Rs 486 crore.

Indian economy to clock double-digit growth next fiscal: Deloitte report

21 Dec, 2020, 08:10PM | Business Standards

Having gone through a rough patch on account of the coronavirus pandemic, the Indian economy is expected to record a double-digit growth at 10 per cent in 2021-22, according to a report. "Economic activity is showing signs of traction. The PMI Manufacturing Index is at its highest since 2008," said the report titled 'Voice of Asia' prepared by Deloitte. The economy contracted by a historic 23.9 per cent in the first quarter of 2020-21 on account of the impact of the coronavirus pandemic. The contraction, however, narrowed to 7.5 per cent in the second quarter. Stronger car sales, rising production of finished steel and diesel consumption, and higher goods and services tax revenue collections indicate that the economy has bounced back strongly since 'the unlock', backed by pent-up and festive season demand, the report said. Sustaining this rebound could be a challenge next year, if coronavirus infection cases continue to be high, it added. However, it said, "We expect India's GDP (gross domestic product) to rebound to double digits in FY2022 after contracting in FY2021." According to the report, three drivers -- inclusive job growth, a robust services sector rebound and a sustained recovery in private demand -- will ensure a sustained economic revival and rehabilitation. The government's effective policy measures together with prudent business strategies should help the economy grow strongly from the next financial year, it added.

Borosil Renewables surges 13% on successfully raising Rs 200 crore via QIP

21 Dec, 2020, 11:14AM | Business Standards

Shares of Borosil Renewables surged 13 per cent to Rs 189, also its fresh record high on the BSE on Monday, after the company announced the successful completion of fund raising of Rs 200 crore through a qualified institutions placement (QIP). The company allotted 15.8 million equity shares of face value of Re 1 each at Rs 126.55 per share. Post the QIP issue, the holding of promoter and promoter group will be 61.92 per cent, Borosil Renewables said in a press release. The funds raised through this QIP will help to undertake planned expansion and the company is excited to capitalise on the business opportunity that industry offers, it said. The company further said that the funds raised via the Issue are planned to be utilized to service its capital expenditure requirements for a brownfield expansion to more than double its solar glass production capacity from 450 tons per day (TPD) to 950 TPD. Borosil Renewables is engaged in the manufacturing of low iron solar glass for application in photovoltaic panels, solar thermal flat plate collectors and greenhouses and is the only solar glass manufacturer in India. The company commissioned its first solar glass manufacturing facility at Bharuch in the Indian State of Gujarat. The company services India's solar panel manufacturers while simultaneously exporting its products to Europe, Turkey, and North America. In the past one month, the stock has zoomed 52 per cent as the government is set to levy duty at 9.71 per cent on textured tempered coated or uncoated glass imports (of which the company is the sole manufacturer in India) from Malaysia. In comparison, the S&P BSE Sensex was up 7 per cent during the same period. "Pursuant to application made by Gujarat Borosil Limited (Company amalgamated with our Company ie. Borosil Renewables Limited, under a Composite Scheme approved by NCLT) to the Directorate General of Trade Remedies, Ministry of Commerce & Industry, Government of India, for imposition of Countervailing Duty on imports from Malaysia of "Textured Tempered Coated or Uncoated Glass"(of which the Company is the sole manufacturer in India). The designated authority has, vide their letter dated December 11, 2020, issued final findings for imposition of Countervailing duty at 9.71 per cent of CIF (Cost, Insurance and Freight) value for a period of five years," the company said on December 14, 2020. The duty will be effective after the issuance of final customs notification by Ministry of Finance, Government of India in this regard in due course, it said.

Top headlines: Centrum-BharatPe in race for PMC bank; Jio preps 5G infra

21 Dec, 2020, 07:25AM | Business Standards

Centrum-BharatPe, Liberty group in race for beleaguered PMC Bank Steel baron Sanjeev Gupta’s Liberty Group of the UK, the Jaspal Singh Bindra-led Centrum group and BharatPe combine, and two business families from Mumbai and Hyderabad have expressed interest for beleaguered Punjab and Maharashtra Co-operative Bank (PMC Bank). This is the first time that corporates, non-banking financial companies, and high-net-worth individuals have shown eagerness in taking over an urban-cooperative bank (UCB). Read More Paediatric coronavirus vaccine work may begin in India by mid of 2021 The pandemic year has turned the conventional way of developing vaccines on its head. Though immunisation worldwide is a paediatric medical event, the first Covid-19 shots developed were for people aged 18 years and above. Work on paediatric versions of Covid-19 vaccine, however, is not far behind, according to vaccine manufacturers in the race. Read More Reliance Jio to go for next generation network architecture for 5G Reliance Jio is planning to launch the next generation 5G standalone Option 2 architecture for its network and skip the current interim standard used by most of the networks across the globe. The current interim architecture, known as non-standalone 5G, enables operators to leverage their existing investments in their 4G LTE networks and reduce capital costs. Read More Being part of Amazon is Prime Video's biggest strength, and challenge Sudip Sharma’s Paatal Lok grips you from the word go. The down-and-out Inspector Hathi Ram Chaudhury’s investigation into the assassination attempt on a famous news anchor surprises and shocks in equal measure. It is well written and perfectly cast. Not surprisingly, it is on every list of the top 10 streaming shows in 2020. From convincing filmmakers to do shows for online, to having a slate with some of the best films and shows, Amazon Prime Video has come a long way since it came to India four years ago. Read More Market value of 8 of 10 most valued firms zooms Rs 1.25 trillion Eight of the top-10 valued domestic companies together added Rs 1,25,229.25 crore in market valuation in the past week, in line with a bullish broader market trend, with HDFC, TCS, and Bajaj Finance emerging the biggest gainers. Over the past week, the BSE benchmark gained 861.68 points or 1.86 per cent. Only Reliance Industries and Hindustan Unilever witnessed erosion from their market valuation, rest eight companies including HDFC Bank and Infosys made gains. Read More Amazon enables digitisation of over 1 million small businesses in India Technology (tech) giant Amazon said it has enabled digitisation of more than 1 million small and medium businesses (SMBs) in India. This year alone, more than 150,000 new sellers have joined its marketplace platform. This makes it one of the biggest examples of tech adoption of small businesses in the country. The Covid-19 pandemic has also accelerated the adoption of tech by SMBs. The SMBs include sellers, delivery and logistics partners, neighbourhood stores, enterprises, developers, content creators and authors in India, according to the 2020 Amazon SMB Impact Report. Read More Lenders extend Reliance Home Finance bid deadline to January-end Lenders to Reliance Home Finance — part of the debt-ridden Anil Dhirubhai Ambani Group — have extended the bidding deadline to end-January next year, following requests from bidders. According to a source close to the development, only two bidders — Avenue-Asset Reconstruction Company (India), or ARCIL, consortium and Authum Investment & Infrastructure — have submitted binding bids. Read More ONGC begins production in Bengal basin, making it India's eighth functional Oil and Natural Gas Corporation (ONGC) Limited has begun crude oil production from the Asokenagar-1 well, Bengal Basin in 24 Paragana district. This has made the Bengal basin India’s eighth producing basin, joining the ranks of Krishna-Godavari (KG), Mumbai Offshore, Assam Shelf, Rajasthan, Cauvery, Assam-Arakan Fold Belt and Cambay. Read More We aim to double our direct distribution in 12 months: Tata Consumer chief Sunil D’Souza took over as managing director and chief executive officer of Tata Consumer Products in April this year, at the height of the nationwide lockdown induced by the Covid-19 pandemic. D’Souza, a consumer goods veteran, has moved with speed and agility to restructure the organisation and take advantage of the new trends emerging in the business. He lays out his plans in a conversation with Viveat Susan Pinto. Read More

Telsa VC investor Tim Draper bets jetpack suits and flying motorcycles are the next frontier in human flight

20 Dec, 2020, 08:30PM | CNBC

Richard Browning, CEO of JetPack Aviation demonstrates his JBPack suitJetPack Aviation It takes visionaries like venture capitalist Tim Draper to reimagine the future of transportation and back ideas many consider futuristic pipe dreams. But this renown Silicon Valley venture capitalist who was an early investor in Elon Musk's Tesla and SpaceX ventures has a knack for spotting mobility trends early in the adoption curve.One he sees taking off within a decade is vertical takeoff and landing aircraft (VTOL) technology that enables human propulsion. Two start-ups Draper Associates has invested in are on the leading edge of this new mobility movement: JetPack Aviation and Gravity Industries Ltd.The companies both focus on VTOL technology to make travel and commuting easier and more flexible. And they both have captured the imagination of people worldwide.Gravity Industries has developed a real-life 'Iron Man' flying suit. The exo-skeleton jetsuit Â has two jet engines attached to each arm and one engine mounted on the back that allows the pilot to vertically take off and fly using the pilot's shifting body-weight and arms as its thrust control; and JetAviation is prototyping the Speeder, a fully stabilized flying autonomous motorcycle that can fly one or two individuals at over 250 mph. Getting the idea off the ground JetAviation, led by CEO and founder David Mayman, has raised $5 million in start-up capital to date. It also created a jetpack called the JB12 Jetpack that can be worn like a backpack. Mayman himself has demonstrated the personal aerial jetpack numerous times including when he flew with it around the Statue of Liberty in 2015. The device has been certified by the FAA, and it landed a CRADA agreement with the U.S. Navy Special Forces for use in short-distance troop transportation. Since then, it has been demonstrated in nine countries to live audiences of over 300,000 and TV audiences of billions including at a Formula One event in 2018. It will start flight testing the JB12 for the military in March of next year.The jetpack also boasts a lot of features that sound like science fiction: Over 250 mph top speed, and suitcase-sized portability, for instance."I think we are now in in a two-dimensional transport society and both of these companies have figured out how to make this technology more practical so anyone can fly and land from anywhere," said Tim Draper, founding partner of Draper Associates. "These are exciting and fun to ride."As he explained society is at a point where we need to break the traditional commuting models. "Right now, we are stuck in cars, long distances require driving to an airport and getting on a plane. Imagine you can just strap on a jetsuit and take off and fly where ever you want to go. I think VTOL technology is what we are all looking for."JetAviation originally focused on the jetpack suit, but also began developing a flying motorcycle that uses VTOL technology in 2018. The company raised seed capital from Draper Associates, Skype co-founder Jaan Tallinn, Y Combinator, Rosecliff Ventures, Cathexis Ventures and a group of angels that it says will fund the development of the Speeder's first functional prototype. A rendering of JetPack Aviation's Speeder, a flying motorcycle being developed that can be used for commercial and military use.Jetpack Aviation The Speeder provides a fully stabilized ride that's either pilot-controlled or fully autonomous. It can take off and land vertically. There are no exposed rotors systems, which make it a lot safer and easier to operate than a lot of other VTOL designs and helicopters, and the company says it can also be refueled in less than five minutes, which is a dramatically shorter turnaround time for powering up versus an electric vehicle.Its jet engines are fueled by diesel since battery power is still too low for it to be used to fly long distances using electric propulsion.According to Mayman, the Speeder, should be able to provide quick cargo transportation for emergency services and military, (its first planned uses before moving on to the consumer market,) in a much shorter period."It takes off like a helicopter and can carry over 600 pounds of pilot or cargo," he said."The army realizes it is an option that can be used to transport medics or rescue soldiers in dangerous enemy hotspots. You can swarm these vehicles Â instead of risking a large $35 million Black Hawk helicopter," Mayman explained. These vehicles can move autonomously at twice the speed of a Black Hawk helicopter at an altitudes ranging from 20 ft. above the ground to 15,000 feet. "Right now, many lives are being lost because it takes a medic too long to get to a crisis victim due to ground transport, Mayman noted. I think we are now in in a two-dimensional transport society and both of these companies have figured out how to make this technology more practical so anyone can fly and land from anywhere.Tim Draperfounding partner, Draper Associates Jakob Riis, CEO of Faulk, one of the world's largest emergency and response companies agrees. "If VTOL vehicles even save just 3 minutes of medical emergency response time that can boost the survival rate for many victims, especially those who get a heart attack." Taking the technology mainstream According to Draper, it will take years for flying motorcycles and jetpack suits to mature into a mainstream commercial market but applications for military use are coming soon. "I think the military will use the first commercial model of our Speeder aircraft in 2024," Mayman predicts.Amid the Covid-19 crisis, the global market for VTOL autonomous vehicles has reached an estimated at $4.4 billion this year and is projected to reach $15.6 billion by 2027, growing at a CAGR of 19.6% through 2027, according to a report by Research and Markets. Of that, $9 billion will be the military market.Companies including Uber have been researching the nascent market. In its "Fast-Forwarding to a Future of On-Demand Urban Transportation" report it notes how VTOL technology can help commuting gridlock in cities, especially megacities and help local economies save millions of dollars in lost productivity.Just as skyscrapers allowed cities to use limited land more efficiently, urban air transportation will use three-dimensional airspace to alleviate transportation congestion on the ground. A network of small, electric aircraft that take off and land vertically), will enable rapid, reliable transportation between suburbs and cities and, ultimately, within cities.It has been proposed that the repurposed tops of parking garages, existing helipads, and even unused land surrounding highway interchanges could form the basis of an extensive, distributed network of "vertiports" (VTOL hubs with multiple takeoff and landing pads, as well as charging infrastructure) or single-aircraft "vertistops" (a single VTOL pad with minimal infrastructure).Over the years the risks of VTOL technology has improved. As Mayman explains, there are normal aviation hazards flying these transporters, but now jetpack suits such as the JB12 and the Speeder have redundant engines and controls, and aircraft backup flight systems so if an engine or a control fails, another kicks in. History of human propulsion flight It has been 55 years since the concept of a jetsuit first captured the world's imagination when the late Sean Connery strapped on a Bell Aerosystems Rocket Belt and took off from a chateau roof to evade enemy agents in the opening sequence of the James Bond movie "Thunderball."There have been any number of attempts to develop a practical jet suit or jetpack since Bell demonstrated the futuristic Rocket Belt to the U.S. Army in 1961 as a potential asset for special forces. But many have often been large, bulky contraptions that are as dangerous as they are unwieldy.Richard Browning, the founder of Gravity has also been pioneering this technology since he invented his 50-lb. Jet suit in 2017, which is now manufactured using 3-D printed polymer and aluminum. The former Royal Marine Reservist set a Guiness World Record in 2019 wearing it when he recorded the fastest speed in a body-controlled jet engine-powered suit: hitting 85 mph. Wearing it a traveler can fly 5 minutes or so. It has 1,000 horsepower. This company has built a jet-powered âIron Manâ suit Â "I launched the company in 2017 after doing a Ted Talk, Tim Draper heard it and invested $650,000 in my idea in the parking lot," Browning recalls. Since then the company has grown into a multi-million enterprise."To date we have trained over 100 clients to fly with our Gravity suit and we make a couple million dollars a year doing training and events worldwide."While Browning also thinks this mode of transport has tactical applications for transporting the military and in paramedic response especially in mountainous regions, he also thinks there is a market for it in entertainment and sports."Many adventure seekers who like sky diving and want to experience something unusual are interested in this mode of flying," he said. "Right now, we are working on our third generation Mark 3 suit that will be able to fly longer â for 7 or 8 minutes.""Perhaps this can become a new racing sport like Indie or Nascar," said Browning noting he is launching an international racing series, and also has a Flight Club at the world famous Goodwood Estate in U.K. home to the Festival of Speed. . Browning and the team are expanding flight training to other global locations and are taking bookings."People around the world find this kind of flying thrilling and inspirational. We have even gotten calls from actor Tom Cruise and British adventurer Brian Grylls who want to do some training."

Bombay HC asks Essar to deposit security payable to AM/NS with court

20 Dec, 2020, 06:33PM | Business Standards

Essar House Private Limited, which owns Essar House, the headquarters of Ruias-controlled Essar group, and Essar Services Private Limited have been directed to deposit the refundable security payable to ArcelorMittal Nippon Steel India by the Bombay High Court. The petitions were filed by AM/NS India as urgent protective interim order pre-arbitration under Section 9 of the Arbitration and Conciliation Act 1996. Both sides agreed to a reference of their disputes to the sole arbitration of Soli Cooper, a senior advocate of the high court. In an order passed on December 10, Essar House Private Limited (EHPL) has been ordered and directed to deposit with the Prothonotary and Senior Master an amount of Rs 35.5 crore within eight weeks from the date of order; optionally, a bank guarantee of any nationalised bank for the entire amount along with all interest earned thereon could be furnished. Till the time the deposit is made or bank guarantees furnished, EHPL has been injuncted from disposing assets or creating any third party rights. If the respondent wished to make an extraordinary disposal of the assets, it would have to apply to the court for relief only after at least one week’s written prior notice to the advocates for the petitioners (AM/NS India). AM/NS India sought a deposit of Rs 35.81 crore as security for their claim in arbitration. This was a refundable security deposit payable to it under a Business Centre Agreement dated September 17, 2018. A spokesperson for the Essar group said, “The matter is subjudice and therefore we can’t comment. We are exploring all available options including appealing to a higher court in this matter.” On April 1, 2016, Essar Steel had entered into a rental agreement with EHPL to occupy the ground floor, podium and 20 upper floors of Essar House. The agreement was of a leave and license, and was extended by consent to operate until 31st March 2019. However, on September 17, 2018, Essar Steel entered into the Business Centre Agreement for the corporate insolvency resolution period with EHPL, to avail of business centre facilities on six floors of Essar House. The agreement subsumed the earlier rental agreement. On November 27, 2019, EHPL asked Essar Steel to vacate premises (after Supreme Court order paved the way for acquisition of Essar Steel by ArcelorMittal and its partner, Nippon Steel); however, the refundable security deposit was not returned after vacating the premises. EHPL had adjusted the amount against receivables from Essar Steel. AM/NS India also sought a deposit of Rs 47.41 crore as refundable security deposit payable upon termination of a Support Services Agreement dated 15th May 2014 with Essar Services India Private Limited (ESIPL). The court, on December 10, ordered and directed to deposit with the Prothonotary and Senior Master an amount of Rs 47.41 crores within eight weeks; optionally, ESIPL may furnish a bank guarantee of any nationalized bank for the entire amount along with all interest earned thereon. In addition, within six weeks, a disclosure of all its movable and immovable assets including monthly receivables, without exception including financial investments. An order of injunction on disposing of assets has also been passed till such time.

Reliance, BP to get govt capped price of $4.06 for new gas from KG-D6

20 Dec, 2020, 03:20PM | Business Standards

Reliance Industries and its partner BP will get only USD 4.06 a unit for the new gas they have started to produce from the eastern offshore KG-D6 field even though they have discovered a higher rate in an open market auction, sources said. Reliance-BP in November 2019 auctioned initial gas from the R-Series field at a biddable percentage of Brent crude oil price. If Brent crude oil stays in the current range of USD 50 to 51 a barrel, the price comes to USD 4.2 to 4.4 per million British thermal unit, two sources at the buyers of R-Series gas said. Even though operators have pricing freedom, they can't sell gas at a rate higher than the cap the government notifies every six months. The cap for six months to March 31, 2021, is USD 4.06 per mmBtu and so Reliance-BP would get only that amount for the remainder of the current fiscal, they said. Essar Steel, Adani Group and state-owned GAIL in November 2019 bought the majority of the initial 5 million standard cubic meters per day of gas planned to be produced from R-Series in the KG-D6 block by bidding between 8.5 and 8.6 per cent of dated Brent price. Emails sent to Reliance and BP for comments remained unanswered. The rate discovered in the November 2019 auction at the lower end of the Brent price band is the same as the one that Reliance got in the first five years of production from Dhirubhai-1 and 3 and MA fields in the KG-D6 block. These fields ceased to produce a few months back. Reliance got USD 4.205 per mmBtu for gas from D1 and D3 and MA fields during April 2019 and March 2014. It would have got double of that rate if a new formula proposed by the Rangarajan committee was approved but the new BJP government scrapped it and brought a new formula on pricing gas at rates prevalent in export surplus nations such as the US and Russia. The rates came to USD 5.05 in 2014 and are currently at USD 1.79 per mmBtu. Sources said the government in 2016 allowed a higher price for any new gas to be produced from a difficult project such as the deep sea field. R-Cluster field fell in that definition and gas from it was free to be sold but subject to the price cap. The price cap for October 2020 to March 2021 period is USD 4.06 per mmBtu, down from USD 5.61 in the previous six month. Reliance and BP had on November 18 stated that they have the commencement of natural gas production from Asia's deepest gas project, R-Cluster or R-Series. The two firms are investing USD 5 billion in bringing to production three deepwater gas projects in block KG D6 R-Cluster, Satellites Cluster, and MJ which together are expected to meet about 15 per cent of India's gas demand by 2023. R-Cluster will have a peak output of 12.9 mmscmd while satellites, which are supposed to begin output from the third quarter of 2021 calendar year, would produce a maximum of 7 mmscmd. MJ field will start production in the third quarter of 2022 and will have a peak output of 12 mmscmd. Sources said Reliance had in November 2019 auctioned the first 5 mmscmd of gas from the newer discoveries in the KG-D6 block by asking bidders to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required. A floor or minimum quote of 8.4 per cent of dated Brent price was set, which meant that bidders had to quote 8.4 per cent or a higher percentage for securing gas supplies. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made. Essar Steel picked up 2.25 mmscmd in the country's first transparent and dynamic forward auction that lasted about five-and-a-half-hours on November 15, 2019, sources said. Gujarat State Petroleum Corp (GSPC) bought 1.2 mmscmd while Adani Group and Mahanagar Gas Ltd bought 0.3 mmscmd, sources said, adding GAIL, acting on behalf of fertiliser companies, bought 0.3 mmscmd of gas. Hindustan Petroleum Corp Ltd (HPCL) had bought 0.35 mmscmd and 0.10 mmscmd went to Gujarat State Fertilizers & Chemicals Ltd (GSFC)/Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), sources said. In all, 15 customers across sectors such as steel, petrochemicals, city gas, glass and ceramic got gas in the tender, they added. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 -- the largest among the lot -- were brought into production from April 2009 and MA, the only oilfield in the block was put to production in September 2008. While the MA field stopped producing last year, output from D-1 and D-3 ceased in February. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production. Reliance is the operator of the block with 66.6 per cent interest while BP holds the remaining stake.