Indian equities surge after US Fed indicates slower rate hikes
Indian markets rallied on optimism that the US Federal Reserve will slow the pace of monetary tightening. The benchmark Sensex closed at 56,858 points, up 1.9 percent, the biggest single-day gain in two months. The 50-share Nifty rose 1.7 percent. Both gauges closed at their highest level since May 2.
Why it’s important: The say’s rise was primarily a relief rally because the US central bank signaled that it may slow the rate of interest rate hikes at some point. Although the rupee strengthened against the dollar, the volatility in risk appetite is expected to continue.
Battle for Uttar Pradesh East takes 5G auction proceeds close to Rs 1.5 lakh crore
Total proceeds from the third day of spectrum auctions inched closer to Rs 1.5 lakh crore as demand in the 1800MHz band for the Uttar Pradesh East circle took bidding over the base price for the second consecutive day, with little sign of the competition subsiding.
Why it’s important: Higher bids mean the government’s collection from the spectrum auction will rise proportionately. Bidding rose beyond the reserve price only in the promising market of eastern Uttar Pradesh, which still has relatively low tele-density.
Market regulator may ringfence alternative investment funds
The Securities and Exchange Board of India wants schemes of private equity and venture capital funds, also known as alternative investment funds, to be ring-fenced from each other so that any stress and liabilities in one pool of money do not spill over into another. The markets regulator has broached the subject in a meeting of the alternative investment policy advisory committee.
Why it’s important: There is interest by NRIs, wealthy foreign investors and offshore institutions to put in money in alternative investment funds. Some regulation could make the investments a little safer.
Startups start scaling back advertising as funding winter sets in
A long funding winter in the startup world is beginning to take its toll on advertising across properties. In one such important instance, Mastercard replaced Paytm as the title sponsor for all international and domestic cricket matches organized by the Board of Control for Cricket in India earlier this week.
Why it’s important: Startups are starting to take a backseat on the advertising front as investors push for return on investment and profitability, compelling them to trim advertising budgets.
Increasing infra investment pushing down logistics costs, offering efficiency gains
Logistics costs as a percentage of the GDP in India are set to reach the levels of advanced economies in about five years, offering efficiency gains to the economy. Growing infrastructure investments are resulting in improved mobility that will lower logistics costs to 10 percent of the GDP from the current 16-18 percent, transport minister Nitin Gadkari said.
Why it’s important: Increased investments in boosting mobility has a strong bearing on long-term economic growth by making transportation more economical, efficient, and sustainable.
Chinese phone maker Vivo denies charges of financial terrorism
The India unit of Chinese mobile phone company Vivo told Delhi High Court that it hasn’t laundered money or committed financial terrorism. It has instead “contributed greatly towards the financial integrity and economic stability” of India. The company denied that it sent money to China to avoid payment of taxes in India.
Why it’s important: The Enforcement Directorate had alleged that Vivo India laundered money to destabilize India’s financial system. Chinese firms have come under the scanner in recent months due to allegation of tax evasion and money laundering.
ReNew Power to invest $8 billion to produce green hydrogen in Egypt
ReNew Power has signed a preliminary agreement with the Egyptian government to invest $8 billion (over Rs 63,000 crore) to produce green hydrogen in the northern African country. ReNew, backed by Goldman Sachs and Abu Dhabi Investment, wants to produce 220,000 tons of the clean fuel a year in Egypt.
Why it’s important: ReNew joins bigger conglomerates such as Adani and Ambani to tap into the lucrative business prospects of producing green hydrogen, considered a key element to decarbonize economies.
Women gravitate towards companies offering opportunities to work remotely
In the post-pandemic world, women are gravitating toward organizations that provide opportunities to work from home. Companies that offer work from home, work from anywhere (WFA) or even hybrid models are seeing a spike in the number of women applying. Some of them are already reporting better gender diversity numbers.
Why it’s important: Hiring women, including those exploring a second career, has become an emerging talent strategy in most industries, and offering them flexibility will go a long way to attract and retain them.
Google, Meta muscle into short video game, threatening smaller local firms
Indian short video platforms may be running out of time to monetize their platforms as Google’s YouTube and Meta’s Instagram muscle into the space. The two companies have said they are renewing their focus on short videos at a time when Indian startups are still acquiring users in their growth phase.
Why it’s important: The runaway global success of TikTok has piqued the interest of the tech majors. Their forays into the in the short video space would put pressure on local platforms in the country.
Increased demand by workers to raise costs of festive season hiring
Cash-strapped companies are looking further afield to recruit people ahead of the festive season. Recruiters are now scouting for candidates in places that are hundreds of km away from major urban centers while asking firms to improve their budgets to meet the surge in festive season demand.Why it’s important: Blue-collar contract workers for looking for better pay, healthcare and living quarters to shift from one state to another. FMCG, manufacturing and logistics firms need to get large numbers of workers before the festive season.