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India plans to restrict sugar exports for the first time in six years to prevent a surge in domestic prices, potentially capping this season’s exports at 10 million tonnes, a government source told Reuters on Tuesday. India is the world’s biggest sugar producer and the second biggest exporter behind Brazil. Reuters in March reported that India was planning to curb sugar exports to keep a lid on local prices and ensure steady supplies in the domestic market.
Moving on to today’s stock market news. Equity indices failed to hold on to morning gains on Tuesday, with the Sensex falling 236 points amid a sell-off in IT stocks and weak trends from global markets. The 30-share BSE benchmark opened higher but could not carry forward the momentum and declined 236 points or 0.43 per cent to settle at 54,052.61. During the day, it hit a low of 53,886.28 and a high of 54,524.37. The broader NSE Nifty dropped 89.55 points or 0.55 per cent to end at 16,125.15. In the Sensex pack, Tech Mahindra, Hindustan Unilever, HCL Technologies, Asian Paints, NTPC, Tata Steel, Infosys, Axis Bank and Bajaj Finserv were among the biggest laggards. In contrast, Dr Reddy’s, HDFC, PowerGrid, Kotak Mahindra Bank, HDFC Bank and Nestle were among the major gainers. “Nifty faced selling pressure in the post noon session once again today. It opened flat and rose in the morning. It later came under selling pressure and closed lower for the second consecutive session,” said Deepak Jasani, Head of Retail Research, HDFC Securities. Asian markets in Hong Kong, Shanghai, Seoul and Tokyo ended lower. Exchanges in Europe were also trading lower in the afternoon trade.
In other news, former World Bank chief economist Kaushik Basu on Tuesday said that even though the fundamentals of the Indian economy are strong, the rise in divisiveness and polarisation in the country is damaging the ‘foundations’ of the nation’s growth. Basu further said India’s big challenge is unemployment and joblessness as youth unemployment in India is over 24 per cent, which is among the highest in the world. “A nation’s growth does not depend on economic policy alone. There is mounting evidence that trust among people is a big determinant of a nation’s economic success,” he told PTI in an interview. “The rise in divisiveness and polarization in Indian society is sad not just in itself but because it is damaging the foundations of the nation’s growth,” the eminent economist added. According to Basu, India has strong fundamentals – a large entrepreneurial class, highly skilled workers, and though it has been falling over the last few years, high investment to GDP ratio. Replying to a question on high inflation, the eminent economist said inflation that India is witnessing is a global phenomenon and it is caused by the COVID-19 pandemic and the war in Ukraine, and the supply-chain bottlenecks that arose because of these factors.
Now some corporate update. The Supreme Court has stayed a National Green Tribunal order imposing an environmental compensation of over Rs 15 crore on Moon Beverages, a key bottler for American beverage maker Coca-Cola in north India. A bench comprising Justices L Nageswara Rao, B R Gavai, and A S Bopanna issued notice on the plea filed by Moon Beverages to a Ghaziabad resident on whose petition the NGT had passed the order. “There shall be a stay of operation of the impugned judgement and order dated February 25, 2022, passed by the National Green Tribunal, Principal Bench, New in Original Application No.69 of 2020,” the bench said. The top court was hearing an appeal filed by Moon Beverages Ltd challenging NGT’s order imposing an environmental compensation of Rs 1.85 crore on Moon Beverages Ltd located at Greater Noida, Rs 13.24 crore on Moon Beverage Ltd’s Sahibabad unit, and Rs 9.71 crore on Varun Beverages Ltd’s Greater Noida unit.
Samsung Group will invest $356 billion in the next five years to accelerate growth in semiconductors, biopharmaceutical and other next-generation technologies, Samsung Electronics said. South Korea’s top conglomerate said on Tuesday the investments through 2026 are expected to help Samsung drive long-term growth in strategic areas such as the chip sector, while pledging aggressive investments in the biopharmaceutical sector to make it as successful as its chip business. Samsung Electronics, the world’s largest memory chip maker, did not provide a breakdown of the figures.
And finally, here’s critical update on India’s coal crisis. Expressing concerns over consumers being compelled to buy coal at high prices just to keep their plants running, Coal Consumers’ Association of India has sought the government’s intervention to provide ailing industries a new lease of life. The statement comes amid certain parts of the country witnessing power outrages in the wake of fuel shortages.
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