A round-up of the biggest articles from newspapers.
Vi, Airtel asked to pay Rs 3,000 cr fines in 3 weeks in Jio connectivity issue
In another setback for Vodafone Idea and Bharti Airtel, the DoT has asked them to pay Rs 3,050 crore fines imposed on them in three weeks, reported The Economic Times.Why it’s important:
The cumulative fines are for not granting adequate points of interconnection to Reliance Jio Infocomm in 21 circles.
The move is unexpected as the government has unveiled a set of booster measures to help the debt-laden sector a few days back.
The penalities for Airtel is Rs 1,050 crore and that for Vi is Rs 2,000 crore.
Banks seek RBI directions after Rs 30,000 crore Srei loans turn NPA
A UCO Bank-led consortium has sought RBI instructions for recovering dues from the Srei Group, reported The Economic Times.Why it’s important:
Srei Group defaulted around Rs 30,000 crore worth of loans.
Lenders say that it’s qualified to be moved to the list of NPA this quarter.
But the Group is looking for a debt recast plan that will help them with future cash flows.
Chips demand pushes local investors to buy stocks of global makers
The stocks of chip-making companies are in great demand, The Economic Times.Why it’s important:
Semiconductors or chips are in huge shortage all over the world.
So, many domestic investors are looking for a long-term investment idea of putting their money into these companies.
It is estimated that Indian investors traded around $70-80 million in global chip-making stocks in one year.
Chip manufacturing Nasdaq-listed firms such as AMD and Nvidia are in great demand.
Invesco should be more transparent and open about changing ZEE Board: Harsh Goenka
RPG Group Chairman Harsh Goenka in an interview with The Economic Times said that the tussle battle between the management of Zee Entertainment Enterprises and shareholder Invesco was not good for the corporate environment in India.What Goenka says:
Invesco should be more transparent about why it wants to change the company's board.
A lot of shareholder activism is happening for its own sake.
You need to give reasons behind dislodging the management of a successful and profitable company like ZEE.
I think there is more to it than what meets the eye.
Share prices go up and down for various reasons. If that is the case, then they should say what is the reason behind it.
As bystanders in the corporate world, we don’t want any battle.
It’s not good for the morale of corporate India.
Corporate activism that leads to good corporate governance is good.
Maruti Suzuki to pull the plug of diesel cars, to push green ride
Maruti Suzuki is planning to junk its plans to go ahead with diesel vehicles, reported The Economic Times.Why it’s important:
The move comes after a huge jump in diesel prices as consumers now prefer more petrol cars.
It is also due to the government push towards cleaner mobility accelerating the production of vehicles powered by CNG and alternative fuels.
Maruti Suzuki had stopped producing small diesel-run cars.
Now, a plan to develop a 1.5-litre diesel engine has also been cancelled.
Future Retail moratorium ends; banks to decide on the future course of action
The moratorium of Future Retail Ltd ended on Thursday as lenders to meet soon to decide the company’s repayment plans, reported Mint.Why it’s important:
In case of a default, a decision on whether to refer the firm to a bankruptcy tribunal has to be taken.
If the retailer fails to make the payment by end-December, it would become a defaulter.
The company said it is doing well and making profits after the debt recast.
But not able to sell non-core assets to infuse funds.
Airtel to invest Rs 5,000 crore in data centre business
Bharti Airtel Ltd is betting big on data and is planning to invest Rs 5,000 crore in its data centre business, reported Mint.Why it’s important:
The company plans to triple its capacity by 2025.
The move is due to the rising digitisation environment and stringent local data storage rules.
Airtel expects the country to become a data centre hub for the Asia-Pacific.
‘Among emerging markets, India stands a good chance of outperforming’
Atul Bhole, senior vice-president for investments at DSP Investment Managers, in an interview with Business Standard, thinks that the markets sustain current levels despite high valuation.What he says:
Among emerging markets, India stands a good chance of outperforming.
Markets should be able to sustain at the current levels despite high valuations.
The Evergrande issue will be contained within China.
Banking, financial services and insurance (BFSI), auto, cement stocks look attractively valued.
Don’t see much upside in metal prices because of demand-supply issues.Markets are factoring in a good show by India Inc in Q2.