Petroleum products to enter under GST regime to fuel big gains
- Petroleum products, including crude and some intermediate products, could be taxed under the proposed goods and services tax (GST).
- A move that will reduce the imperfections in the new levy and also narrow the inflationary impact of the tax.
- A proposal favouring imposition of a modest tax on these products is being examined and is expected to be taken up by the newly constituted GST Council where the government will try and convince states of its merit.
- Idea is to have some minimal tax of about 2-3 per cent so that seamless flow of credit is not broken and cascading is removed.
- Products are at present proposed to be covered within the GST but zero rated till the time the council decides to impose a tax. States will continue to have freedom to levy local sales tax on it.
SBI-led lenders to auction Kingfisher Villa next month, price set at Rs 85 cr
- After multiple failed attempts to sell assets of Kingfisher Airlines (KFA), lenders are likely to auction the long-defunct carriers prime property in Goa, Kingfisher Villa, next month at a reserve price of Rs 85 crore.
- Lenders, led by State Bank of India, may issue a public notice for the auction of the airlines prime asset.
- Property at Condolim was once used by Mallya — who is now abroad and facing a slew of criminal charges for allegedly defaulting on loans — to host lavish parties.
- Kingfisher Villa) may be auctioned towards the middle of next month with a reserve price of around Rs 85 crore.
- Lenders were able to take possession of the Villa in May after a long legal battle with United Spirits which had claimed tenancy rights over the property.
- Villa, owned by United Breweries Holding (UBHL), was mortgaged by KFA to SBI-led 17-bank consortium to obtain loans in 2010.
Global food retail chains, brands eyeing India: Centre
- Big retail chains and food brands from the U.K., Italy and Brazil are eyeing an entry in the Indian market after the government opened up foreign investments up to 100 percent in processing, marketing and retailing of food made in India.
- I have had very positive meetings with all the big food retail brands in U.K.
- Everyone is looking at India positively and their first destination for expansion happens to be India.
- Minister said that she would also be visiting Italy on September 29 at the invitation of the Italian government to meet food producers and retailers who have evinced interest in investing in India.
- India’s food economy is growing at a faster rate than the economy and our food and grocery market is the sixth largest in the world.
- We are pursuing the idea that food products should either be exempt from GST or be taxed at the lowest rate possible. The decision will now be taken at the GST Council, which I am sure will use its wisdom to consider what’s best for the country.
Rupee trades flat at 66.93 against US dollar
- Indian rupee on Wednesday erased all the losses and was trading little changed against the US dollar after wholesale price index (WPI) inflation rose slower than estimates.
- At 12.30pm, the home currency was trading at 66.93 per dollar, down 0.01% from its previous close of 66.92.
- Rupee opened at 66.99 per dollar and touched a low of 67.04, a level last seen on 1 September.
- India’s WPI rose to a two-year high of 3.74% in August, a level last seen in August 2014, as compared to the estimate of 4% by a Bloomberganalyst poll.
- Government data showed that retail inflation decelerated sharply to 5.05% in August, while the Index of Industrial Production (IIP) contracted by 2.4% in July, the lowest in eight months.
Coal India Shares Fall 3% As Q1 Profit Declines
- Shares of Coal India fell nearly 3 percent today after the company reported 14.7 percent decline in consolidated net profit for the quarter ended June 30.
- After making a weak opening, the scrip further lost 2.72 per cent toRs. 321.70 on BSE.
- At NSE, shares of the company declined by 2.7 per cent to Rs.321.50.
- Coal India (CIL) yesterday reported 14.7 per cent fall in consolidated net profit at Rs. 3,065.28 crore for the first quarter due to decline in sales.
- CIL had posted a consolidated net profit of Rs. 3,596.93 crore in the year-ago period. Consolidated profit includes profit of jointly controlled entities and associates.
Increases in wage rates significantly higher than Inflation rate: PHD Chamber
- Minimum wage for unskilled workforce has witnessed a significantly increasing trend as compared to increase inflation rate (CPI Inflation) in majority of the states in India.
- Minimum wage rate increase for unskilled workforce during the years 2013-14, 2014-15 and 2015-16 was at an average of 11.17%, while the average CPI Inflation rate was at 6.13% during the same period.
- Increase in wage rate was of 5.04 percentage points higher as compared to increase in CPI inflation.
- Kerala, Assam, Odisha and Maharashtra witnessed more than 20% higher increase in minimum wage rate for unskilled workforce as compared with CPI inflation.
- Minimum wage rate increased from Rs. 85.20 per day in 2012-13 to Rs. 150 per day for the years 2013-14 and 2014-15 and further reaching to Rs. 275.46 per day for 2015-16, thus the average increase in wage rate for the three consecutive years was 53.23%.
Online payment gateway PayU acquires Citrus Pay for $130 million
- Global online payment service provider PayU has acquired Indian payments technology player, Citrus Pay, for $130 million in an all-cash deal.
- Agreement is due to close in the third quarter of 2016. The statement described PayU’s $130 million transaction as the largest ever merger and acquisition cash deal in the Indian fintech sector.
- Today’s announcement is a significant milestone for both businesses, as well as the fintech industry in India.
- Exciting for everyone across the PayU and Citrus teams as we bring together new capabilities that will help us to better serve our collective clients.
- Deal will grow PayU India customers to more than 30 million, processing a forecasted 150 million transactions in 2016 worth a combined $4.2 billion, growing at more than 50% year-on-year.
Budget overhaul: FinMin readies presentation before PM
- Finance ministry plans to make a presentation to the Prime Minister on the proposed overhaul of the Budget by shifting to outcome-based budgeting, and merger of rail with the general Budget.
- Bringing forward the Budget presentation date by a month to January end, scrapping the distinction of Plan and non-Plan expenditure and moving away from traditional budgeting based on inputs to one measurable by outcome are among the five pillars the ministry has identified as part of the exercise.
- Make a presentation on these points to Prime Minister Narendra Modi before putting them in a Cabinet note for approval.
- Necessity and benefits of merging rail with the general Budget will also be featured.
- Finance ministry will float a Cabinet note on this after the Prime Minister gives a go-ahead.
HSBC sees room for 50 basis points rate cut this fiscal
- RBI is expected to go for a 50 basis points rate cut over the remaining months of the fiscal as inflationary pressure is expected to stay contained thanks to good monsoon and falling vegetable prices.
- Global financial services major HSBC over the next 12 months, CPI inflation is expected to trend at or below 5 percent, which incidentally is RBI’s upcoming target for inflation in early 2017.
- We expect a 50 bps rate cut over the remained of FY17 (October 2016 to March 2017).
- August CPI print of 5 percent marks the start of a prolonged period (approximately a year) over which CPI inflation is likely to trend at or below 5 percent.
- Inflation is likely to remain below (RBI’s early-2017 target of) 5 percent for the next 12 months, convincingly opening up space for monetary easing.
ICICI Pru Life can retain leadership without acquisition:Kochhar
- Company will maintain market leadership among private players even without an acquisition.
- Company plans to raise Rs 6,000 crore from the IPO, the utilisation of the proceeds of which will be decided by the company’s board.
- Company has been a market leader since 2002 and has been consistent with it strategy and that it believes in customer-centric proposition with a focus on cost efficiency.
- Protection market is widely under-penetrated in India at the moment and the company will look to tap the opportunity to grow market share further.
- About 21 private insurance players in the country which makes the sector highly competitive.
Live: Sensex, Nifty trade flat; Punj Lloyd jumps 14%
- Continuing its downward trend, the benchmark BSE Sensex fell over 60 points in early trade as investors indulged in cutting down their bets on disappointing macroeconomic data and weak trend in Asian markets.
- 30-share barometer declined by 30.22 points or 0.10% to 28,323.32 with metal and FMCG stocks trading in the red, falling by up to 0.43%.
- Gauge had lost 691.74 points in the previous two sessions. The market remained closed yesterday on account of “Id-ul-Zuha”.
- NSE Nifty shed 7.25 points or 0.08% to 8,708.35. Brokers said market mood took a hit after IIP data, which was released after trading hours on Monday, showed industrial output contracted by 2.4% in July.
- Registering the worst performance in eight months mainly on account of declining output in manufacturing and capital goods sectors. Meanwhile, Retail inflation eased to a five-month low of 5.05% in August.
Indefinite parking of money in schemes impedes growth: Arun Jaitley
- Government money cannot be indefinitely parked in schemes as it leads to inefficiencies and impedes growth. – Jaitley
- Release of government money should be calibrated with utilisation and it cannot be allowed to lie idle with states.
- You cannot have indefinite parking of government money at various ends because that itself not only leads to inefficiency, but also leads to impediment to growth.
- PFMS), also known as Central Plan Scheme Monitoring System (CPSMS), tracks the fund disbursement and ensures that state treasuries are integrated with Centre to ensure as and when money is required.
- Web portal for pensioners, launched by Jaitley today, will serve as a one-stop destination for providing information and speedy redressal of grievances.
Reliance Capital surges 5% as board decides to list RHF on stock exchanges
- Shares of Reliance Capital BSE 9.42 % shot up nearly 5 percent on Wednesday after it informed BSE that its board approved a proposal to independently list its home finance business, Reliance Home Finance, on the stock exchanges.
- Independent listing of Reliance Home Finance is expected to unlock substantial value for existing shareholders of Reliance Capital.
- Listing of Reliance Home Finance will also lead to increased management focus and accelerated growth in the home finance business,” the company told BSE.
- Stock climbed 4.85 percent to hit a high of Rs 558.40 on BSE.
- 49 per cent stake in RHF will be allotted to all shareholders of Reliance Capital in the ratio of one share free of cost in Reliance Home Finance for every one share held in Reliance Capital.
WPI inflation hits 2-year high of 3.74% in August
- Wholesale price inflation soared to a two-year high in August to 3.74 percent driven mainly by a gradual increase in prices in the manufacturing sector.
- Wholesale Price Index (WPI) accelerated from the 3.55 percent seen in July, consumer price inflation for the period slowed by a percentage point to come in at 5.05 per cent in August.
- Reflecting the annual rate of price rise, in July stood at 3.55 percent. In August 2015, WPI inflation was (-)5.06 per cent.
- vegetables cooled to 0.17 percent in August, from a spike of 28.05 percent in July.
- Although food inflation declined to 8.23 percent in August from 11.82 percent in July it was offset by a simultaneous increase in manufacturing inflation to 2.42 percent in August from 1.82 percent in July.