#1. Reserve Bank holds rates, increases inflation forecast and cash reserve ratio
The Reserve Bank of India has kept interest rates unchanged for the third straight review at 6.5 percent but increased the case reserve ratio to suck out excess liquidity from the market. It raised the inflation forecast for the financial year to March to 5.4 percent from 5.1 percent earlier, as vegetable prices could keep retail inflation high.
Why it’s important: The 10 percent incremental in the cash reserve ratio will suck out nearly Rs 1 lakh crore of liquidity from the system. The raised inflation forecast pushes back the possibilities of a rate cut to the second quarter of next financial year.
#2. Government to take more measures to fight food inflation, finance minister says
The government is making efforts to tame food inflation and would take additional measures to keep prices in check, finance minister Nirmala Sitharaman said in Parliament. She drew a contrast between India’s promising economic prospects and challenges of high inflation and slow growth in the West and China’s struggle with declining consumer demand.
Why it’s important: India remains a bright spot even as global economic growth slows down, but higher food prices are a pain point that needs to be tackled immediately.
#3. More import curbs in the offing, government may target cameras and printers
After making licenses mandatory for the import of personal computers and laptops, the government is looking at other products on which such limitations could be imposed. These could include cameras, printers, hard disks, and parts of telephonic and telegraphic devices. The imports of these goods crossed $10.08 billion in 2022-23.
Why it’s important: The rationale for the restriction is that there is substantial domestic demand for these products is substantial and policy intervention is required to boost local production. Whether that works in practice remains to be seen.
#4. Rural FMCG market grows for second straight quarter to 4 percent
The rural FMCG market grew 4 percent on year in the June quarter compared with 0.3 percent growth in the preceding three months, according to NIQ India, formerly known as NielsenIQ. The FMCG sector grew at 12.2 percent in value and saw an overall volume growth of 7.5 percent, the highest in eight quarters.
Why it’s important: This marks a significant change as rural markets were in negative territory for several quarters. The recovery was driven primarily by the non-food category.
#5. Company law tribunal approves mega merger of Zee and Sony
The National Company Law Tribunal has approved the merger of Zee Entertainment Enterprises with Sony Pictures Networks India, nearly two years after the merger plan was announced in December 2021. Under the terms of the $10 billion merger, Sony will hold a 50.86 percent stake in the merged entity, while public shareholders of Zee will own 45.15 percent stake. Zee promoters of Zee will own 3.99 percent.
Why it’s important: The approval paves the way for the establishment of one of the biggest media conglomerates in India. The merger could potentially be completed by November
#6. Loss of cricket premier league streaming rights sees user exodus from Disney+ Hotstar
The loss of streaming rights for the Indian Premier League substantially reduced the subscriber base of Disney+ Hotstar in the June quarter, with 12.5 million users not renewing subscriptions. Walt Disney said the subscriber base at its video streaming platform shrank 24 percent from 52.9 million to 40.4 million, the sharpest quarterly decline.
Why it’s important: Disney+ Hotstar has seen a steady shrinking in its subscriber base in recent months by almost a third. The decline could have been compounded by a rise in subscription rates.
#7. Actis agrees to buy five road projects from Patel Infrastructure for $91 million
Actis will acquire five hybrid annuity model road projects from Patel Infrastructure at an equity value of around $91 million. The private equity firm may place these road assets under an infra investment trust that will also house the six operating highway toll road projects it bought from Welspun Enterprises last year.
Why it’s important: There has been significant investor interest in India’s road projects in recent times, leading to around 50 assets worth around $3 billion up for sale. It follows the government renewed focus on infrastructure growth.
#8. Dispatches of personal vehicles reach an all-time high of 350.149
Wholesales for passenger vehicles reached an all-time high in July, showing a growth of 2.6 percent over the same month last year and driven by demand for utility vehicles. Two-wheeler sales fell by 7.2 percent on year, with exports also taking a hit, slumping by 15.6 percent.
Why it’s important: The increasing shipments indicate that the auto sector has finally emerged from the chip shortage. There seems to be an improvement in supply chains amin higher demand
#9. Ola doubles revenues in 2021-22, but losses widen on increased costs
Taxi operator Ola doubled its revenue in the financial year ended March 2022. The company, led by chief executive Bhavish Aggarwal, posted consolidated operating revenue of Rs 1,970.4 crore, rising from Rs 983.2 crore in the year earlier, its latest annual filings with the Registrar of Companies showed.
Why it’s important: The improvement reflected a recovery from the widespread disruptions caused by the pandemic to the mobility business worldwide.
#10. Maharaja takes backseat as Air India launches new logo to refurbish brand image
Air India, owned by the Tata group, unveiled a new logo and fresh aircraft livery to create a new brand image, moving away from the iconic Maharaja theme associated with its past as a state-owned carrier. The airline’s new logo, called the Vista, draws inspiration from the iconic Indian window design. The new logo has been designed in partnership with a brand transformation company called FutureBrand.
Why it’s important: Air India is in the midst of a welcome transformation after it was acquired by the Tata Group. It also intends to merge with Vistara, and the new logo intends to integrate its brand image.
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