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Friday, Dec 02, 2022

The Expresso Business Update

Your Business Expresso is served! The Indian Express brings to you the latest updates from the world of Indian and international business. Your one stop shop for all finance and business stories.

Episode 543 August 17, 2022

Today’s Latest Business News, Finance and Share Market News at 9:30 am on 17th August 2022

Today’s Latest Business News Transcript at 9:30 am on 17th 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.

Let’s begin. Prime Minister Narendra Modi on Monday vowed to lift millions out of poverty and called for a solemn pledge to turn India into a developed country in the next 25 years. Addressing the nation from the Red Fort to mark the completion of 75 years of independence, Modi called on citizens to “aim big” and adopt “panch pran”, meaning, five resolves. One, To turn India into a developed country; two, to remove every trace of bondage; three, to take pride in its heritage, four, unity and integrity; and five, fulfil the duties to achieve the dreams of freedom fighters. Modi’s speech was notable for the absence of new scheme launches or announcements that have been a regular feature in past speeches.

In the telecom sector, operators including Bharti Airtel, Reliance Jio and Vodafone Idea will collectively make annual savings of Rs 4,934 crore this fiscal onwards on account of a lower spectrum usage charge. Under the new policy announced by the government in September 2021, spectrum acquired in the recently-concluded auction and even future ones will not attract any usage charge. According to analysts, apart from being beneficial for the operators, who have been able to bring down their spectrum outflow cost, the move will also be good for consumers as the former will have more cash in hand for investments in networks. Further, it will be in the interest of the operators to buy more spectrum in future auctions. At Rs 2,216 crore, Bharti Airtel will save the most, followed by Jio at Rs 2,078 crore and Vodafone Idea at Rs 640 crore. The SUC rate for Bharti will come down to 0.39% from 4.26%. For Jio, it will come down to 0.19% from 2.9%, and for Vodafone Idea, it will be 0.66% from 3%.

Moving on. After a gap of 17 years, the Employees’ Provident Fund Organisation may start investing again in securities guaranteed by state governments, as it has decided to review extant guidelines that have prevented such investments. However, the investment is proposed to be capped at 20% of about `2 trillion incremental annual accretion to the Employees’ Provident Fund Organisation kitty from its 66 million active subscribers. Earlier, the EPFO was permitted to invest in such papers as per its approved investment pattern. But the guidelines framed in 2005 capped investments “for the time being” in such asset classes under the “government securities” category in which the EPFO is authorised to invest 45-65% of its incremental accretion. It now wants Central Board of Trustees, its highest decision-making body, to lift the limit so that “adequate investments in higher yielding state government securities could also be made a part of EPFO portfolio”.

On to the banking sector. State Bank of India on Monday raised its marginal cost of funds-based lending rate by 20 basis points across tenures, a move that will make EMIs expensive. MCLR for one year, which is considered important as long-term loans like home loans are linked to this rate, is now at 7.70 per cent, as per information on the lender’s website. The bank has also raised MCLR for loans of other maturities – shorter maturities at 7.35 per cent, six months at 7.65 per cent, two years at 7.90 per cent and three years at 8 per cent. Since April 2022, the country’s largest bank has cumulatively hiked MCLR by 70 basis points. In April, May and July, SBI had upped the MCLR by 10 bps each, and in June, the MCLR was increased by 20 bps. The bank has also increased its repo-linked lending rate and external benchmark lending rate by 50 bps to 7.65 per cent.

In another development, market trend shows that non-alcoholic beers and cocktail mixers, which gained popularity during the days of Covid lockdown, have managed to carve out a niche space for themselves and are here to stay, show market trends. In the pre-pandemic times, such drinks were restricted to bars, pubs and restaurants, but have now made their way into people’s homes, thanks to easy availability through online channels and also modern trade, given that these are certified by the Food Safety and Standards Authority of India. The reason for the growing adoption of non-alcoholic drinks is that people are looking for low-sugar, low-calorie options, Vrinda Singhal, founder and CEO, Swizzle, told FE.

On to the last segment, the stock market. The market is expected to open in the green as trends in the SGX Nifty indicate a gap-up opening for the broader index in India around 17,830 level as against August 12 close of 17,713 mark. IN a recap, the BSE index ended 130 points higher at 59,462 on Friday whereas NSE Nifty advanced 0.2% to close at 17,698.

You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories.

Click here to listen to yesterday evening’s Business News bulletin

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Today’s Latest Business News, Finance and Share Market News at 9:30 am on 17th August 2022Today's Latest Business News Transcript at 9:30 am on 17th 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. " Let's begin. Prime Minister Narendra Modi on Monday vowed to lift millions out of poverty and called for a solemn pledge to turn India into a developed country in the next 25 years. Addressing the nation from the Red Fort to mark the completion of 75 years of independence, Modi called on citizens to “aim big” and adopt “panch pran”, meaning, five resolves. One, To turn India into a developed country; two, to remove every trace of bondage; three, to take pride in its heritage, four, unity and integrity; and five, fulfil the duties to achieve the dreams of freedom fighters. Modi's speech was notable for the absence of new scheme launches or announcements that have been a regular feature in past speeches. In the telecom sector, operators including Bharti Airtel, Reliance Jio and Vodafone Idea will collectively make annual savings of Rs 4,934 crore this fiscal onwards on account of a lower spectrum usage charge. Under the new policy announced by the government in September 2021, spectrum acquired in the recently-concluded auction and even future ones will not attract any usage charge. According to analysts, apart from being beneficial for the operators, who have been able to bring down their spectrum outflow cost, the move will also be good for consumers as the former will have more cash in hand for investments in networks. Further, it will be in the interest of the operators to buy more spectrum in future auctions. At Rs 2,216 crore, Bharti Airtel will save the most, followed by Jio at Rs 2,078 crore and Vodafone Idea at Rs 640 crore. The SUC rate for Bharti will come down to 0.39% from 4.26%. For Jio, it will come down to 0.19% from 2.9%, and for Vodafone Idea, it will be 0.66% from 3%. Moving on. After a gap of 17 years, the Employees’ Provident Fund Organisation may start investing again in securities guaranteed by state governments, as it has decided to review extant guidelines that have prevented such investments. However, the investment is proposed to be capped at 20% of about `2 trillion incremental annual accretion to the Employees’ Provident Fund Organisation kitty from its 66 million active subscribers. Earlier, the EPFO was permitted to invest in such papers as per its approved investment pattern. But the guidelines framed in 2005 capped investments “for the time being” in such asset classes under the “government securities” category in which the EPFO is authorised to invest 45-65% of its incremental accretion. It now wants Central Board of Trustees, its highest decision-making body, to lift the limit so that “adequate investments in higher yielding state government securities could also be made a part of EPFO portfolio”. On to the banking sector. State Bank of India on Monday raised its marginal cost of funds-based lending rate by 20 basis points across tenures, a move that will make EMIs expensive. MCLR for one year, which is considered important as long-term loans like home loans are linked to this rate, is now at 7.70 per cent, as per information on the lender’s website. The bank has also raised MCLR for loans of other maturities – shorter maturities at 7.35 per cent, six months at 7.65 per cent, two years at 7.90 per cent and three years at 8 per cent. Since April 2022, the country’s largest bank has cumulatively hiked MCLR by 70 basis points. In April, May and July, SBI had upped the MCLR by 10 bps each, and in June, the MCLR was increased by 20 bps. The bank has also increased its repo-linked lending rate and external benchmark lending rate by 50 bps to 7.65 per cent. In another development, market trend shows that non-alcoholic beers and cocktail mixers, which gained popularity during the days of Covid lockdown, have managed to carve out a niche space for themselves and are here to stay, show market trends. In the pre-pandemic times, such drinks were restricted to bars, pubs and restaurants, but have now made their way into people’s homes, thanks to easy availability through online channels and also modern trade, given that these are certified by the Food Safety and Standards Authority of India. The reason for the growing adoption of non-alcoholic drinks is that people are looking for low-sugar, low-calorie options, Vrinda Singhal, founder and CEO, Swizzle, told FE. On to the last segment, the stock market. The market is expected to open in the green as trends in the SGX Nifty indicate a gap-up opening for the broader index in India around 17,830 level as against August 12 close of 17,713 mark. IN a recap, the BSE index ended 130 points higher at 59,462 on Friday whereas NSE Nifty advanced 0.2% to close at 17,698. You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories. Click here to listen to yesterday evening's Business News bulletin
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