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Morning Scan: All the big stories to get you started for the day

A round-up of the biggest articles from newspapers

August 06, 2021 / 07:38 AM IST
A round-up of the biggest articles from newspapers.

A round-up of the biggest articles from newspapers.

Below is a shortlist of all the important articles from newspapers.

India uses diplomatic channel to solve auto chips shortages

New Delhi has stepped up its diplomatic efforts with Berlin, Washington, Tokyo, and Taipei to solve the major shortage of automobile semiconductors in the country, reports The Economic Times.

Why it’s important: The shortage of semiconductors is faced across the globe.

The Chinese import slowdown has also hit the market.

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Auto plants in Haryana, Maharashtra and Tamil Nadu face chips shortages in the busiest season for cars.

The industry expects the shortage likely to slash production of 80,000-100,000 passenger vehicles in the quarter alone.

Startup heads seek PM’s nod overseas listing

The leaders of India’s startups and venture capital companies have sought Prime Minister Narendra Modi’s intervention for allowing local firms to directly list abroad, The Economic Times reports.

Why it’s important: The heads of 22 such firms said that move to listing abroad would be the “single most significant, big-bang reform”.

They think it would “instantly pave the way for many Indian companies to be on the global map.”

They say it will also help them to get a level playing field with foreign technology giants and be globally competitive.

PVR sees recovery from October; plans to open 40 screens

Ajay Bijli, CMD multiplex chain PVR told The Economic Times that the movie theatres should see a recovery from October as States are relaxing regulations imposed after the second wave of the Covid pandemic.

What he says: More States are opening theatres and the situation is improving quickly.

But uncertainty is still there on when the business would bounce back.

Bijli said: “India is a disparate market and if we want to have a pan-India approach, we have to have price points keeping in mind the demographic of the catchment. Today, we have ticket prices ranging from ₹100 to ₹1,500.”

Though the pandemic had slowed down its expansion plans, PVR is still planning to open around 40 screens this fiscal year.

Targets for Nifty at 16,400 and 16,900 even after the breakout: Tech Charts

Well-known chartist and founder of Tech Charts Aksel Kibar told The Economic Times in an interview that the Nifty index may rise to 16,900.

What he says: The outlook for Indian markets is one of the strongest in the world.

Nifty 50 index completed a rectangle chart pattern and one-time price target stands at 16,400 and 2 times price target stands at 16,900.

The USD-INR would be range-bound between 72.2 and 75.2 levels and don't see a major trend period on the forex side.

Adani Power’s plans to delist under Sebi scrutiny

The Sebi is scrutinising the proposal of Adani Power Ltd to delist its shares from the bourses, reports Mint.

Why it’s important: It might give more headaches to group companies.

The probe is initiated after the firm went for a buyback of shares at a price that is almost 65% less than the prevailing market price.

The stock price of the company is making unusual movements in the exchanges.

The debt-to-GDP ratio of the Govt set to rise

The Centre expects that India’s debt-to-GDP ratio to go up in this fiscal to a 16-year-high of 61.7% from 60.5% a year ago, reports Mint.

Why it’s important: The debt was only higher in FY06 at 63.9%.

The increasing level of debt is a major concern for rating agencies.

The Centre is trying to bring the level down to 60% by FY25 by increasing the buoyancy of tax revenue and through monetisation of its assets in public sector enterprises.

Vi lenders look at swapping debt for equity

Lenders to Vodafone Idea Ltd (Vi) are looking at plans to swap their debt for equity to stay afloat, reports Business Standard.

Why it’s important: The plan would certainly dilute the shareholding of promoters - Vodafone PLC and the Aditya Birla group.

Vodafone PLC of the UK owns 45 per cent in Vi, the Aditya Birla group holds a 27 per cent stake.

Various plans are discussed as no one wants the telecom major to go bankrupt or into liquidation.

Retro tax must be resolved via Indian law: Finance Secretary

Finance Secretary TV Somanathan in an interview with Business Standard that it makes sense for Cairn and Vodafone to withdraw arbitration cases after the government resolved the retrospective taxation.

What he says: The Centre has achieved a fine balance between not conceding foreign parties the right to pronounce on Indian tax laws and not wanting to have retrospective taxation.

A key point is the case should be resolved through Indian law, not via arbitral award.

“We have appealed because we are not going to pay it under the arbitral award. As a matter of policy, we are doing it through Parliament, under Indian laws.

We understand that investment requires a predictable and stable tax regime.

We do not also concede that our tax laws be pronounced on or arbitrated and decided in a foreign jurisdiction.

We feel the amendments are able to achieve both.”

Markets could consolidate at the current levels: Harshad Patil

Harshad Patil, executive vice-president and chief investment officer at Tata AIA Life, tells Business Standard in an interview that the government’s increasing expenditure and the rising capital spends by the private sector is expected to keep earnings momentum buoyant for a few years.

What he says: The likely third wave will have a lesser impact on the economy and markets could consolidate at current levels.

Earnings growth would not be significantly dented for the next couple of years.

Mid- and small-cap segments are likely to outperform and get expensive during a market rally.

In the medium to long term, mid-caps tend to generate higher returns.

It would be prudent to be stock-specific and invest in growth-oriented mid-caps.
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