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Today’s Latest Business News Transcript at 5:30 pm on 11th August 2022
“You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express.
India’s five-year overnight indexed swap rate was sharply off its recent high on Thursday, as softer-than-expected U.S. inflation data raised bets that the Federal Reserve may not be very aggressive in terms of interest rate hikes. The five-year swap rate was at 6.20%, down 14 basis points from a high of 6.34% hit on Monday, while the one-year swap rate was trading at 6.11%, easing from Monday’s high of 6.19%. U.S. consumer prices rose 8.5% in July from a year earlier, down from 9.1% in the previous month and below 8.7% expected by economists in a Reuters poll. On a month-on-month basis, prices were unchanged. The odds of a 75-basis-point rate hike at the Fed’s September meeting declined to 44% from over 70% prior to the data. The Fed had raised rates by 75 bps each at its June and July meetings.
Moving on- The CVC constituted panel — Advisory Board for Banking and Financial Frauds — has given its advice in 139 bank fraud cases involving an amount of Rs 21,735 crore in the last three years. Headed by former Vigilance Commissioner T M Bhasin, ABBFF was set up in August 2019, by the Central Vigilance Commission in consultation with the Reserve Bank of India for conducting first-level of examination in fraud cases reported by the public sector banks and public sector financial institutions before these cases were reported to external investigative agencies like CBI etc. The panel has been entrusted with the task of first-level checking of possible criminality or malafide intention of the staff in the fraud cases referred to them before advising to investigative agencies. Earlier in January this year, the ambit of the panel was expanded to conduct first-level examination of large bank fraud cases involving an amount of Rs 3 crore, as against the mandate of Rs 50 crore.
Now some news related to mutual funds- Equity mutual funds are the most popular financial instrument for retirement planning among Indians followed by Employees Provident Fund and Public Provident Fund, according to a recent survey. The survey of over 1400 respondents aged 34-55 years by digital wealth manager Scripbox found that equity mutual funds were the number 1 choice, used by 75% of all respondents to invest for the golden years. The equity mutual funds were followed by EPF, used by 44% and PPF, voted for by 43%. Insurance as an investment option for retirement was picked only by 23% of all respondents. The findings of the Financial Freedom survey show that there is a growing understanding of insurance being more of protection and not an investment instrument. The survey, however, reveals a worrying trend as 80% of the respondents were unsure of their retirement planning. They were not confident about their plans post-retirement.
In a separate development- The oil ministry has ordered the diversion of natural gas from industries to the city gas distribution sector to cool CNG and piped cooking gas prices that have shot up by 70 per cent on the use of imported fuel. Less than three months after it ordered the use of costlier imported LNG to meet incremental demand for automobile fuel CNG and household kitchen gas PNG, the ministry on August 10 reverted to an old policy of primarily supplying domestically produced gas for city gas operations. The allocation for city gas operators like Indraprastha Gas Ltd in Delhi and Mahanagar Gas Ltd of Mumbai has been increased from 17.5 million standard cubic meters per day to 20.78 mmscmd, officials said.
Moving on- As many as six merchant bankers are vying to handle and manage the sale of the government’s 29.53 per cent residual stake in Hindustan Zinc Ltd (HZL), according to an official notice. ICICI Securities, SBI Capital Markets, HDFC Bank, IIFL Securities, Axis Capital and Citigroup Global Markets will make their presentations via video conferencing before the government officials on Friday, highlighting their plans in managing the offer for sale. The bankers to manage the sale process would be finalised after the presentation and opening of financial bids on August 12, as per the notice.
Last but not the least- Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 ended nearly 1 per cent higher on Thursday, a day of weekly F&O expiry. BSE Sensex jumped 515 points or 0.9 per cent to end at 59,333, while NSE Nifty 50 gained 124 points or 0.7 per cent to settle at 17,659. Stocks of Axis Bank, Bajaj Finance, HDFC, Tech Mahindra, Wipro, State Bank of India (SBI), ICICI Bank among others were top index gainers. On the flip side, ITC, NTPC, HUL, Maruti, Bharti Airtel stocks capped the gains in the index.
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