Business Current Affairs

Adidas India gets a new managing director

Adidas AG has appointed Dave Thomas as the new managing director of Adidas India. Thomas succeeds Erick Haskell who was heading the India operations of Adidas for near about two years since November 2012. Thomas has been a part of the Adidas Group for 16 years since February 1998. He played prominent roles in sales and marketing in Australia, at the group’s headquarters in Germany and Hong Kong. In his recent assignment, he has been working as brand director for Adidas emerging markets, based in Dubai.

Trading Market Remains Closed in India on October 24, 2014

Due to the occasion of Diwali Balipratipada, trading segments in India remained closed on October 24, 2014. The markets that remained closed for the day were money, equity, commodity, and forex. On Muhurat Day Trading (October 23, 2014), one of the biggest gainers was BSE Mid-cap index, which increased by 93.9 points. The market was cheerful because of the reform measures announced or implemented by the Union Government in last one week, analysts say.

Samvat 2071 Starts with a Cheer; Samvat 2070 Ended with a Sweet Smile

While Sensex increased by 211 points to end Samvat year 2070 on October 22, 2014, Muhurat Trading on October 23, 2014 too kick-started on a cheerful note. Nifty rose by 15.55 points and Sensex by 63.24 points on Thursday. Biggest gainer of Samvat 2070 is Adani Group of Companies, whose market value swelled by 94 per cent. While Reliance Group witnessed a 2.7 per cent fall in market capitalisation, RIL’s stocks increased at a slow but steady pace of 5.2 per cent during Samvat 2070.

Net Profit of GoAir, IndiGo, and All Domestic Airlines Fall

Net Profit of GoAir decreases from Rs. 104 crore for FY 2013 to Rs. 5.44 crore FY 2014, a sharp fall of 95 per cent. The figures are obtained from Ministry of Corporate Affairs, to whom GoAir submit their balance sheet. IndiGo, the leader in India’s aviation industry also witnessed a plunge in profit by 60 per cent. Two major reasons that adversely affected net profit of the domestic airlines are currency depreciation and increase in fuel costs.

Banks Woo Corporates by Cutting Lending Rate

3rd quarter of 2014 saw a marginal rise in bank lending to corporates. This has been due to working capital loans given to corporates. Banks say that for full recovery few quarters are still required. Banks have now resorted to corporate lending at lower rate of interest for wooing corporates. However, it is restricted on a case-by-case basis rather than across the board. On a transaction basis, banks are decreasing lending rates by 25 to 50 basis points for corporates.

Samvat 2070 comes to an End; Gold Performed Poorly but Sensex Gained

Vikram Samvat year 2070 is coming to an end on October 22, 2014, the day before Diwali. On October 23, 2014, Samvat year 2071 will start with Diwali Muhurat trading day, considered as important by stock brokers and  investors in India. In Samvat 2070, Gold performed poorly in comparison to previous year, 8.8 per cent less. Sensex gained significantly, best performance in the last 5 years.  

DLF in a Mutual Fund Soup

DLF was barred from dealing in securities by the Securities and Exchange Board of India (SEBI) on October 13 for 3 years. Citing this order mutual funds have declined to refund the invested money by DLF through different mutual fund schemes. The monetary sum declined by the MFs for refund amounts to Rs 2,000 crore. Asset Managers of mutual funds can refund the real estate company only after getting 'no-objection' notice from the regulatory body.

Private Companies can Now Mine in India after Ordinance

Union government has promulgated Coal Mines (Special Provisions) Ordinance to pave way for commercial mining in India. This ordinance will open door for foreign companies in getting coal mining rights in India. Companies such as BHP Billiton and Rio Tinto will be able to bid after this ordinance for getting mining rights. Accordingly provisions have been added to Mines and Minerals (Development and Regulation) Act, 1957 and Coal Mines (Nationalisation) Act, 1973.

Wipro Disappoints Dalal Street

Though the 3rd largest IT and ITES company, Wipro, reported a net consolidated profit of Rs 2,084 crore and net sales of Rs 11,680 crore (both rose at the rate of 8 per cent compared to corresponding period last year) in 3rd quarter, the results were not as per expectations of the Dalal Street. Surprisingly, Wipro posted revenue loss in some key verticals and geographic locations such as global media and telecom, financial solutions, and Europe.

Business Registration will take Just One day

Narendra Modi is determined to project India as the preferrable destination for global businesses. Average number of days required to register a business in India is 27 days now. With the new slew of measures the average time required to register a business will be just one day. Some of these measures will now include tax system overhaul, reduction in permit numbers, single registration requirement for all labour laws, ease in registration of properties, quicker electricity connection, and others.

Major Stocks including DLF Slump after Expectations of Tougher Penalties

The SEBI’s ban on the country's largest property developer, DLF, has fuelled speculations that tougher measures are in the offing for large companies, who are supposedly sheltered by political connections.On the expectation of stricter penalties, some of the hottest stocks started slumping . While DLF lost 17.4 per cent in the last one week, Sun TV Network lost 5 per cent stock price.

Bad Loan Reporting Rules Revised by RBI

 RBI has issued new set of guidelines on bad loan reporting, on one hand, and JLF (Joint Lenders' Forum) working on the other. Banks from now on will have to report about JLF formations as well as Special Mention Accounts on every Friday. With new regulations in place, there will be no requirement for crop loan reporting. However, banks have to report about other agricultural loans as they used to do earlier.

Rate Cut Possibility Next March

Reserve Bank of India’s technical advisory committee’s member Ashima Goyal has indicated that there could be possible interest rate cut during the coming March next year. This possibility arose due to the cooling of inflation after fall in global oil prices to 4-year low. It is reported that upgrade of sovereign credit outlook by S&P in September is certainly a boost in favour of India.

Foreign Companies can Mine and Sell Coal in India

Sources have revealed that coal mining could be opened for business entities, indigenous as well as foreign. Possibility of this move may open the Indian coal mining market for global giants. Coal Ministry's executive order says that the companies incorporated in India can mine coal for either sale or own consumption.

Union Government Ordinance for Resolving Coal Supply Issue

 After September 24 Supreme Court verdict leading to cancellation of 204 coal blocks allocated earlier, the Union government is going to issue ordinance that will help in resolving supply issues of coal to central as well as state government companies, on one hand, and private companies in the power, steel, and cement businesses. Arun Jaitley, Union Finance Minister, has also said that for introduction of commercial mining, provisions will be enabled at a later date. Market cheered on this announcement.

Hero MotoCorp to Expand Exponentially

Hero MotoCorp is looking forward to capacity expansion by the year 2020. The largest two wheeler manufacturer of India is all set to invest Rs 5,000 crore for increasing annual production capacity to a massive 12 million units. Capacity expansion will be done in the existing manufacturing units present in India, Bangladesh, and Colombia.

Foreign Investors upbeat about Indian market

 Chief Investment Officer as well as President of DSP Blackrock has said that after Narendra Modi government started announcing and implementing reforms and policy actions in India, global market has started to rebuild its faith in Indian market. This has led many foreign investors to contemplate the idea of increasing exposure to Indian equities.

No Probe against Flipkart, says Nirmala Sitharaman

The Union government is not mulling the idea of initiating probe into the alleged unfair trade practices as well as predatory prices of goods by Flipkart, one of the leading e-Commence names in India, during the 'big billion day sale' on October 6.

Depending upon Global Price, India will have New Gas Price after Every 6 Months

Domestically produced natural gas has seen an upward revision of prices to $5.61 per mBtu from $4.2 per mBtu. This government decision will have an impact on consumers of PNG, CNG, fertilisers, and power. On the basis of Gross Calorific Value, the new price is going to be determined, which will be subject to review after every 6 months.  From November 2013, the new price will come into effect.

IndiGo on a Buying Spree

In its latest move IndiGo is all set to buy 430 jets, billing $40 billion. In the aviation history of India, this is the largest order placed till date. Market analysts believe that this move has been undertaken by IndiGo management on the belief that Indian economy is going to rebound after economic performance is expected to accelerate under the new business friendly Modi government. Many also feel that it is the biggest bet any Indian aviation company has yet placed.

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