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Friday, May 13, 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 383 May 13, 2022

Business News at 9:30 am on 13th May 2022

Here is the latest Business news from the Indian Express at 9:30 am on the 13th of May, 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.

Retail inflation beat analysts’ expectations and surged to a 95-month high of 7.79 per cent in April on a broad-based rise in price pressure across food, fuel and core segments, bolstering the chances of another round of aggressive rate hike by the central bank in June to break the back of inflation. Having refrained from an out-of-cycle revision of its inflation forecast earlier this month even as it hiked the repo rate by 40 basis points to 4.4 per cent, the Reserve Bank of India will now have to sharply raise its projection for the June quarter and for the full year from the April projections of 6.3 per cent and 5.7 per cent, respectively. Inflation based on the consumer price index breached the RBI’s medium-term target of 2-6 per cent for a fourth straight month through April, driven substantially by global factors, mainly the rise in commodity prices and supply-chain disruptions in the wake of the Ukraine war.
Meanwhile, the rupee hit a new low of 77.63 against the dollar as the April data on inflation in the US spooked markets, leading to expectations of more aggressive rate hikes by the Federal Reserve earlier than anticipated. The slide in the domestic currency was capped by the Reserve Bank of India, which was understood to have intervened at around the 77.60 level. The rupee closed at 77.42 after hitting an intraday high of 77.37, supported by dollar sales by the central bank. However, the Reserve Bank of India was relatively less aggressive in its intervention on Thursday, according to market participants. Experts say that there is little that the RBI can do beyond a point as a strong rupee is also detrimental to local exporters.
In some industry news, the index of industrial production grew at 1.9 percent in March from a year earlier, having crept up only marginally from 1.5 percent in the previous month, suggesting the fragile nature of the economic recovery. However, given the sharply-contracted base in the wake of Covid curbs during the second wave, industrial output in April may even record a double-digit expansion, analysts said. Official data released on Thursday showed that the IIP grew as much as 12.5 percent, sequentially, in March. But it was partly driven by seasonal factors that led to a spike in electricity generation and also weighed on manufacturing. With this, the IIP grew 11.3% in the last fiscal, driven by a favorable base. It was -8.4 percent in Financial Year 21. Still, the index grew for the first time in three years in Financial Year 22.
Moving on. Tata Sons-owned Air India on Thursday appointed aviation industry veteran Campbell Wilson as its chief executive officer and managing director, months after former Turkish Airlines chairman Ilker Ayci turned down the offer. Wilson has about 26 years of aviation industry expertise across both full service and low-cost airlines. At present, he is the CEO of Scoot, Singapore Airlines’ wholly-owned low-cost subsidiary. The Air India board has approved the appointment, which is subject to requisite regulatory approvals. Wilson will continue to be with Scoot till June 15. He had started off as a management trainee with SIA in New Zealand in 1996.
On to some legal drama. Market regulator Sebi and Reliance Industries on Thursday strongly countered each other in the Supreme Court as they sought remedy in a case concerning alleged irregularities by the latter in connection with acquisition of its own shares between 1994 and 2000. RIL wants Sebi to share certain documents that it thinks will exonerate it and its 108 promoters in the case. The company believes that these documents would negate the allegations of wrongdoing in the acquisition of shares and this would have a vital bearing on the criminal case being filed by Sebi. Taking “grave exceptions” to the Sebi’s affidavit that “RIL is blowing hot and cold”, senior counsel Harish Salve, appearing for RIL, questioned how the priniciple of litigation privilege, which is available to private parties, can apply to Sebi. He said that privilege cherry-picking policy is not allowed and the investigations should be fair and transparent.

And lastly, let’s hear how the market is behaving in pre-open session today. Domestic markets tanked on Thursday as bears continued to dictate the trend on Dalal Street. S&P BSE Sensex nosedived 1,158 points or 2.14% to end at 52,930 while the NSE Nifty 50 index tanked 359 points or 2.22% to settle at 15,808. Now, ahead of the final trading session of the week, SGX Nifty was up more than 100 points, suggesting a gap-up start for Sensex and Nifty. Global cues were mixed.

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.

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Business News at 9:30 am on 13th May 2022Here is the latest Business news from the Indian Express at 9:30 am on the 13th of May, 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. " Retail inflation beat analysts’ expectations and surged to a 95-month high of 7.79 per cent in April on a broad-based rise in price pressure across food, fuel and core segments, bolstering the chances of another round of aggressive rate hike by the central bank in June to break the back of inflation. Having refrained from an out-of-cycle revision of its inflation forecast earlier this month even as it hiked the repo rate by 40 basis points to 4.4 per cent, the Reserve Bank of India will now have to sharply raise its projection for the June quarter and for the full year from the April projections of 6.3 per cent and 5.7 per cent, respectively. Inflation based on the consumer price index breached the RBI’s medium-term target of 2-6 per cent for a fourth straight month through April, driven substantially by global factors, mainly the rise in commodity prices and supply-chain disruptions in the wake of the Ukraine war. Meanwhile, the rupee hit a new low of 77.63 against the dollar as the April data on inflation in the US spooked markets, leading to expectations of more aggressive rate hikes by the Federal Reserve earlier than anticipated. The slide in the domestic currency was capped by the Reserve Bank of India, which was understood to have intervened at around the 77.60 level. The rupee closed at 77.42 after hitting an intraday high of 77.37, supported by dollar sales by the central bank. However, the Reserve Bank of India was relatively less aggressive in its intervention on Thursday, according to market participants. Experts say that there is little that the RBI can do beyond a point as a strong rupee is also detrimental to local exporters. In some industry news, the index of industrial production grew at 1.9 percent in March from a year earlier, having crept up only marginally from 1.5 percent in the previous month, suggesting the fragile nature of the economic recovery. However, given the sharply-contracted base in the wake of Covid curbs during the second wave, industrial output in April may even record a double-digit expansion, analysts said. Official data released on Thursday showed that the IIP grew as much as 12.5 percent, sequentially, in March. But it was partly driven by seasonal factors that led to a spike in electricity generation and also weighed on manufacturing. With this, the IIP grew 11.3% in the last fiscal, driven by a favorable base. It was -8.4 percent in Financial Year 21. Still, the index grew for the first time in three years in Financial Year 22. Moving on. Tata Sons-owned Air India on Thursday appointed aviation industry veteran Campbell Wilson as its chief executive officer and managing director, months after former Turkish Airlines chairman Ilker Ayci turned down the offer. Wilson has about 26 years of aviation industry expertise across both full service and low-cost airlines. At present, he is the CEO of Scoot, Singapore Airlines’ wholly-owned low-cost subsidiary. The Air India board has approved the appointment, which is subject to requisite regulatory approvals. Wilson will continue to be with Scoot till June 15. He had started off as a management trainee with SIA in New Zealand in 1996. On to some legal drama. Market regulator Sebi and Reliance Industries on Thursday strongly countered each other in the Supreme Court as they sought remedy in a case concerning alleged irregularities by the latter in connection with acquisition of its own shares between 1994 and 2000. RIL wants Sebi to share certain documents that it thinks will exonerate it and its 108 promoters in the case. The company believes that these documents would negate the allegations of wrongdoing in the acquisition of shares and this would have a vital bearing on the criminal case being filed by Sebi. Taking “grave exceptions” to the Sebi’s affidavit that “RIL is blowing hot and cold”, senior counsel Harish Salve, appearing for RIL, questioned how the priniciple of litigation privilege, which is available to private parties, can apply to Sebi. He said that privilege cherry-picking policy is not allowed and the investigations should be fair and transparent. And lastly, let's hear how the market is behaving in pre-open session today. Domestic markets tanked on Thursday as bears continued to dictate the trend on Dalal Street. S&P BSE Sensex nosedived 1,158 points or 2.14% to end at 52,930 while the NSE Nifty 50 index tanked 359 points or 2.22% to settle at 15,808. Now, ahead of the final trading session of the week, SGX Nifty was up more than 100 points, suggesting a gap-up start for Sensex and Nifty. Global cues were mixed. 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.
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