Business News Highlights: RBI Approves Sashidhar Jagdishan's Re-Appointement As HDFC Bank MD & CEO
Business News Highlights: Please follow this space for all the breaking news and latest updates from the Stock Market, economy and corporate world.
IndiGo on Tuesday revealed its plan to commence flights to San Francisco through a route that includes a layover in Istanbul. The new flight launch is part of a codeshare connection agreement with Turkish Airlines. The flights are set to begin operating on September 25, expanding the Turkish Airlines and IndiGo codeshare network to encompass five more destinations in the United States, the airline said in a statement, reported Moneycontrol
With the introduction of the San Francisco route, IndiGo's partnership with Turkish Airlines will offer travelers access to an additional 39 destinations.
"These flights are being introduced to cater to business and leisure travellers seeking new and affordable flying options to access destinations that facilitate business development and offer tourist attractions," IndiGo said.
Ahead of the US Federal Reserve kicking off monetary policy meeting, the US indices opened flat. According to Mint, the S&P 500 declined 0.2 per cent in early trade, while the Dow registered a 37-point drop, and the Nasdaq composite was down by 0.4 per cent.
Futures for the Dow Jones Industrial Average and the S&P 500 exhibited minimal changes, with gains of less than 0.1 per cent before the market opening, the report said.
The Federal Reserve is convening for a two-day meeting starting on Tuesday, during which it will make its decision regarding interest rates. It is widely expected that the Fed will maintain its benchmark rate at the current level.
State-owned Hindustan Copper has announced the appointment of Umesh Singh as Executive Director (ED) within the company. Singh officially assumed his role as ED (Mining) at the corporate office on Monday, Hindustan Copper said in a regulatory filing.
Singh holds a B.Tech (Hons) degree in Mining Engineering from the Indian Institute of Technology (IIT), Kharagpur, and boasts more than three decades of experience in mining operations, safety, and management. Before joining Hindustan Copper Ltd, he served as the Additional General Manager (Mining) at NTPC Ltd's Pakri Barwadih Coal Mining Project.
The Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 35 lakh on MI Research for violating regulatory norms. MI Research, with Ashish Jain as its proprietor, is a registered Investment Adviser under SEBI. SEBI's action follows an examination of MI Research's business conducted to assess its compliance with Investment Advisers (IA) regulations. The examination covered the period from November 2017 to August 2019.
In its ruling issued on Monday, SEBI determined that MI Research had amassed a total of Rs 1.95 crore from 748 clients by charging them for services rendered as an investment adviser. The fees charged for these services were deemed unreasonably high.
However, the noticee (MI Research) had failed to comply with the basic requirements of IA rules and also promised assured returns and mis-sold his services to clients and thus, failed to act honestly and in good faith with due skill, care and diligence, and adhered to a high professional standard, appropriate standards of conduct and compliance with regulatory requirements.
The Reserve Bank of India (RBI) on Tuesday approved the re-appointment of Sashidhar Jagdishan as the Managing Director and Chief Executive Officer of HDFC Bank. The private lender in an exchange filing said that the re-appointment is for a period of three years with effect from October 27, 2023, to October 26, 2026.
A meeting of the Board of Directors of the Bank will be convened in due course to give effect to the re-appointment, it added.
The RBI had first approved the appointment of Jagdishan as CEO of HDFC Bank for a period of three years from October 27, 2020, when he took charge from Aditya Puri.
The net financial savings of households declined to a nearly five-decade low in the fiscal year 2022-23 (FY23), the data from the Reserve Bank of India (RBI) revealed on Monday. The savings declined from 7.2% in FY22 to 5.1% of GDP in FY23 due to an income crunch coupled with a short-term surge in post-pandemic consumption.
Telecom major Reliance Jio on Tuesday launched Jio AirFiber in select cities in India, including Delhi, Kolkata, Bengaluru, Chennai, and Mumbai, among others, on Ganesh Chaturthi, with an aim to bridge last-mile connectivity. Jio AirFiber aims to provide broadband services along with bundled home entertainment and digital services. It has been launched at a starting price of Rs 599 with the most expensive plan being priced at Rs 3,999. With the product, the company intends to bundle home entertainment, broadband as well as digital services. Reliance Jio AirFiber will offer more than 550 digital TV channels and customers will also be able to use Catch-up TV.
A US District Judge in Manhattan on Monday ruled that Starbucks must face a lawsuit alleging that some of its Refresher fruit beverages lacked actual fruit. The court rejected Starbucks' request to dismiss nine of the 11 claims in the proposed class action. The judge, John Cronan, stated that a significant number of reasonable consumers would expect these fruit-named beverages to contain the fruits they claim to have, reported Reuters. Customers raised concerns that Starbucks' beverages including mango dragonfruit, pineapple passionfruit lemonade, and strawberry açai lemonade refreshers lacked the specified mango, passion fruit, or açai ingredients as advertised. The complainants argued that Starbucks' deceptive product names led to them being overcharged, thereby violating their states' consumer protection laws. The lawsuit commenced in August 2022 and claimes damages of at least $5 million.
The Central Bureau of Investigation registered an FIR against Mandhana Industries (now GB Global Ltd) for allegedly defrauding the Bank of Baroda-led consortium of banks of Rs 975.08 crore, officials revealed on Tuesday. The Mumbai-based company run by the Mandhana family has been accused of availing credit facilities from the Bank of Baroda in 2008, however, the account was declared a non-performing asset in December 2016, the report revealed.
The complaint was filed by the bank against former managing director Purushottam Chhaganlal Mandhana, former executive director Manish Biharilal Mandhana, and a few others for defrauding the consortium in a criminal conspiracy to funnel funds, reported PTI.
CDIL Semiconductors said it will add new semiconductor packaging lines via the IT ministry’s SPECS scheme. The company announced this move to increase it’s annual capacity by 100 million units with the new lines. The semiconductor chips and components manufacturer informed via a release that it has started the first phase of this production with a surface-mount packaging line of 50 million devices. These devices will be inaugurated on September 28 by electronics and information technology minister, Rajeev Chandrasekhar, reported PTI.
The Income Tax (I-T) department has increased the income tax return filing deadline for charitable trusts, religious institutions, and professional bodies by one month till November 30. Further, the department has also extended the due date for furnishing audit reports for the fiscal year 2022-23 by a fund, trust, institution, university, medical institution, or educational institution by a month till October 31.
The Indian government extended the deadline for filing income tax returns for companies on Monday. The new deadline for furnishing return of income in Form ITR-7 for the assessment year 2023-24 has been shifted by one month till November 30, the finance ministry revealed in it’s statement. Further, the due date for providing audit reports by companies who need to get their accounts audited has been extended by one month till October 31.
Uttar Pradesh’s Industrial Development Minister Nand Gopal Gupta on Monday directed the Noida Authority to complete it’s target of Rs 90,000 crore investments on time for the next groundbreaking ceremony. The minister’s office revealed in a statement that the Noida Authority has managed to achieve 60 percent of it’s target so far, with projects worth Rs 53,875 crore ready to go on the ground. The minister was informed of the developments in a meeting in Lucknow attended by the UP Infrastructure and Industrial Development Commissioner Manoj Kumar Singh, Additional Chief Secretary Industrial Development Anil Sagar, and Noida Authority's Chief Executive Officer Lokesh M, reported PTI. The groundbreaking ceremony (GBC) was expected to be hosted at a large scale in Lucknow in September but has been postponed for now.
Realty firm Signature Global raised Rs 318.5 crore from anchor investors prior to it’s initial public offer (IPO) launch. The company said in it’s regulatory filing that anchor investors including Nomura have subscribed to 82,72,700 equity shares at Rs 385 per share. Nomura Trust and Banking Co Ltd purchased the maximum number of shares at 18,70,094 shares, the company informed. Other major investors in the company include Kotak Mahindra Trustee Co Ltd, Kotak India EQ Contra Fund, Quant Mutual Fund, Nippon India Equity Opportunities AIF, Bandhan Core Equity Fund, Morgan Stanley Asia, Societe Generale, BNP Paribas Arbitrage and Goldman Sachs Singapore. The company’s IPO will launch on September 20 at a price band of Rs 366-385 per share.
Background
Business News Highlights: Hello and welcome to ABP Live's Business LIVE blog. Please follow this space for all the breaking news and latest updates from the Stock Market, economy, and the corporate world.
The two key equity benchmarks, Sensex and Nifty, on Monday, ended their winning run after opening in red and spent the trading day trying to narrow the losses. The S&P BSE Sensex opened over 200 points lower to Friday’s close. The index closed trading even lower at a loss of 241 points and stood at 67,596.84. On the other hand, the Nifty50 settled almost 60 points lower at 20,133.30.
On the 30-share Sensex platform, Power Grid Corporation, Titan, M&M, and NTPC emerged as major gainers. On the downside, Bharti Airtel, HDFC Bank, Reliance Industries, and Infosys were among the losers.
Global oil benchmark Brent crude climbed to settle at $93.43 a barrel. Meanwhile, the rupee fell 13 paise to settle at 83.29 against the US dollar on Monday, amidst a risk aversion in global markets and surging crude prices. Additionally, a downward trend in domestic equities and the strong American currency weighed on investor sentiments, stated forex traders. The domestic unit opened at 83.09 against the dollar and traded in the day in the range of 83.09 to 83.30 against the dollar. It finally closed at a record low of 83.29 against the dollar, registering a fall of 13 paise from its previous close.
Here are some important factors that can impact the market on September 19.
Monetary Policy
The domestic markets will remain closed on Tuesday on account of the Ganesh Chaturthi festival. However, global markets will remain keenly focused on the US Fed’s meeting scheduled today. Fed policymakers are scheduled to meet for the latest Federal Open Market Committee (FMOC) on Tuesday and their call on interest rates will be announced on Wednesday. The two-day meeting will be chaired by Federal Reserve Chief Jerome Powerll. Additionally, the Bank of England will also disclose it’s interest rate decision on Thursday, and the Bank of Japan will reveal it’s call on the same on Friday.
Other major macroeconomic data to be revealed over the week includes housing data to be announced by the US on Tuesday, and initial jobless numbers for the week ended September 16 to be disclosed on Thursday. The Fed will also hold a press conference on Thursday. Notably, the CPI gained in July by 3.2 per cent, on a year-on-year (YoY) basis. This was the first time in more than a year that the CPI registered an upward trajectory.
Further, the Eurozone is scheduled to come out with it’s inflation data for August on Tuesday and other data including the current account for July on Tuesday, and composite purchasing managers’ index (PMI) flash for September on Friday. In addition to the interest rate decision to be revealed by the Bank of Japan on Friday, Japan is expected to announce it’s balance of trade and inflation data for August, and it’s composite PMI Flash for September along with some other data in the week. The United Kingdom will reveal it’s interest rate call on Thursday, along with inflation data for August on Wednesday. It will also announce it’s retail sales data for August along with manufacturing, services, and composite pmi flash data for September towards the end of the week.
IPOs Awaited
The market will see some action with mainboard IPOs scheduled in the week. Sai Silks, the Hyderabad-based saree retailer, will open it’s initial public offering (IPO) for subscription on September 20. It will be available at a price band of Rs 210-222 per share, and investors can place a bid for a minimum of 67 shares in one lot. Real estate firm Signature Global will start accepting bids for it’s IPO on September 20. The IPO will be priced in the range of Rs 366-385 per share. The IPO includes a fresh issue of shares worth Rs 603 crore and shares worth Rs 127 crore offered by the company’s existing shareholder, International Finance Corporation.
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