Business

Oil cos stop fuel supply to Air India in 6 airports

MUMBAI: Oil marketing companies (OMC) stopped Air India‘s jet fuel uptake in six airports, including Kochi, Pune, Patna, Ranchi, Vizag and Mohali over payment defaults on Thursday afternoon. “Around 4 pm, Air India was informed that it would not be able to uptake fuel in these six stations. On flights operated to these airports, Air India is currently uploading double the fuel quantity so as to have enough fuel to operate the return flight without refuelling at any of these stations,” said a source. Last month, Indian Oil Corporation (IOC) had threatened to stop fuel supplies, but the matter was resolved following intervention by the civil aviation ministry. An Air India spokesperson confirmed the development. “In the absence of equity support Air India cannot handl...

Billionaires facing a corp debt reckoning in India

NEW DELHI: Indian tycoons including Ajay Piramal and Pallonji Mistry are grappling with a prolonged realty slump that’s adding to the shadow banking crisis, showing that even the nation’s richest can’t escape widening cracks in the debt market. Ratings of some companies in the conglomerates run by billionaires Piramal and Mistry have been cut as the business environment worsened and funding costs rose. Rating companies also raised doubts about the debt repayment capabilities of a developer controlled by the nation’s richest property tycoon, and president of Bharatiya Janata Party’s Mumbai unit, Mangal Prabhat Lodha. “The deteriorating credit profiles of tycoons will have far-reaching implications in terms of ratings and lending,” said Sandeep Upadhyay, managing director of Centrum Infrastr...

Stimulus to industry creates moral hazard: CEA

NEW DELHI: Skeptical about the efficacy of a bailout package to Indian industry, chief economic adviser K V Subramanian on Thursday said any such step will be a “moral hazard” and an “anathema” to the market economy. The remarks come amid demand by India Inc for stimulus package to deal with the slowdown in various sectors of the economy. “Since 1991 we are a market economy, and in a market economy there are sectors which go on sunrise and then go through sunset phase,” he said at an event here. “If we basically expect the government to use taxpayers’ money to intervene every time when there are some ‘sunsets,’ then I think you introduce possible moral hazards from ‘too big to fail’ and as well as the possibility of a ...

Sensex plunges 587 points as stimulus hopes dim

NEW DELHI: Equity indices fell sharply on Thursday with the benchmark BSE sensex plunging over 550 points amid heavy global sell-off as investors remained concerned over global economic slowdown. Investor sentiment also tanked after chief economic adviser (CEA) Krishnamurthy Subramanian virtually ruled out a stimulus package from the government. The 30-share index nosedived 587.44 points or 1.59 per cent to end at 36,472.93. While, the broader NSE Nifty moved 182.30 points or 1.67 per cent lower to settle at 10,736.40. Yes Bank — which holds 12.79 per cent stake in CG Power and Industrial Solutions — was the biggest loser in the sensex pack, with its stock plunging as much as 12.16 per cent to Rs 56.30. The Gautam Thapar promoted CG Power is facing multiple probes, with the min...

‘Weakening growth prompted unconventional rate cut’

MUMBAI: Weakening of domestic growth impulses prompted the Reserve Bank of India (RBI) governor Shaktikanta Das to opt for an unconventional rate cut of 35 basis points (bps) to push economic activities early this month, said the central bank on Wednesday. Two of his RBI colleagues and an independent member in the rate-setting Monetary Policy Committee (MPC) had also favoured a 35 bps reduction, against the normal practice of 25 or 50 bps change, in the third bi-monthly monetary policy of 2019-20. The other two members, both independent, in the six-member MPC had voted for a 25 bps cut in the policy announced on August 7. In an unusual move, the RBI on August 7 had reduced the benchmark lending rate by 35 bps to 5.40 per cent amid concerns over slowdown in economy. Before this, the RBI had...

India Inc reports lower profit growth in Q1: Report

MUMBAI: The ongoing economic slowdown has started hurting corporates as well, with companies reporting a sharp decline in both revenue and profit growth numbers in the June quarter, a report said on Wednesday. India Inc’s net sales growth for the June quarter slid to 4.6 per cent as against 13.5 per cent for the same period last year, while the net profit growth moderated to 6.6 per cent as compared to last year’s 24.6 per cent. The findings are based on an analysis of 2,976 companies which have reported their quarterly numbers by domestic rating agency Care Ratings. “The first quarter of the fiscal year 2019-20 has been marked by disappointing and weak corporate earnings indicative of the overall slowdown in various industries and the economy,” it said. In what can...

Amazon inaugurates world’s largest campus in Hyd

HYDERABAD: US-based e-commerce giant Amazon on Wednesday inaugurated its new campus here – its largest facility globally – that will house 15,000 of its employees in India. The campus building contains over 2.5 times more steel than the Eiffel Tower, measured by weight, and is spread over 9.5 acres of land. With 15,000 work points across 1.8 million sq ft in office space, built on 3 million sq ft of construction area – this is Amazon’s single largest building in the world in terms of total area, said Amazon vice president of Global Real Estate and Facilities John Schoettler. “We have eight buildings in Hyderabad with 4 million sq ft of office space. We are going to be migrating some of the employees out of some of those facilities (to the new campus). So far a...

Gold hits new high of Rs 38,820; silver jumps Rs 1,140

NEW DELHI: Gold prices on Wednesday appreciated Rs 50 to hit a new high of Rs 38,820 per 10 gram at the bullion market here on account of consistent buying support from jewellers, according to the All India Sarafa Association. Silver also soared by Rs 1,140 to Rs 45,040 per kg on fresh offtake by industrial units and coin makers. Traders attributed the gain in gold to increase in the domestic spot market demand. However, a weak trend in the international market restricted the gains, they said. Besides, the decline in equity markets also aided the rally in the precious metal as investors moved towards safe-haven assets such as gold, they added. Gold prices traded weak with international spot gold prices but continue to hover around $1,500 an ounce. In New York, spot gold was trading lower a...

TCS surpasses RIL to reclaim most-valued firm status

NEW DELHI: Tata Consultancy Services (TCS) on Tuesday reclaimed the status as the country’s most-valued company by market valuation replacing Reliance Industries Ltd (RIL). Reliance Industries Ltd had on Monday raced past TCS to become the country’s most-valued firm by market valuation. At the end of trade on Tuesday, the market capitalisation (m-cap) of TCS was at Rs 8,20,702.82 crore, which is Rs 11,835.13 crore more than that of RIL’s Rs 8,08,867.69 crore. Shares of TCS rose 1.09 per cent to close at Rs 2,187.15 apiece on the BSE, while those of RIL fell 1.25 per cent to Rs 1,276. RIL and TCS have in the past also competed with each other for the number one position in terms of m-cap. In the ranking of top domestic firms by m-cap, TCS was at number one position followe...

Gold touches fresh all-time high of Rs 38,770

NEW DELHI: Gold prices on Tuesday touched a record high of Rs 38,770 per 10 gram in the national capital after gaining Rs 200 on persistent buying from jewellers even as the precious metal lost steam overseas, according to the All India Sarafa Association. Silver, however, plunged Rs 1,100 to Rs 43,900 per kg on reduced offtake by industrial units and coin makers. Despite weak trend overseas, the precious metal gained in the domestic spot market mainly on increase in demand from jewellers, traders said. Besides, a weaker rupee also supported the surge in the yellow metal, they added. “Globally, spot gold held steady near $1,500 an ounce weighed down by a strong US dollar and higher level profit-booking. However, traders remain cautious on taking big positions ahead of the key economi...

SBI announces home, auto loans at cheaper rates

NEW DELHI: State Bank of India (SBI), the country’s largest lender, on Tuesday announced a number of offers including cheaper rates for home and auto loan borrowers, to cash in on festival fervour. Customers can avail the cheaper loans with added benefits such as waiver in processing fees, pre-approved digital loans and loans with no escalation in interest rates spread across various categories, SBI said in a statement. The bank has not specified the time period for which this festival offer would be valid. However, the move would be followed by the other lenders as well. “SBI has waived processing fees on car loans during festival season. The bank is offering lowest interest rate starting from 8.70 per cent to customers opting for car loan, with no escalation in interest,̶...

Price tag for global trade war uncertainty is $585 bn

NEW DELHI: US President Donald Trump’s tariffs on Chinese imports are getting a lot of blame for slowing the global economy, but it’s all the uncertainty from his Twitter habit and trade policy more broadly that could be even more harmful. According to a report by Bloomberg Economics’ Dan Hanson, Jamie Rush and Tom Orlik, uncertainty over trade could lower world gross domestic product by 0.6% in 2021, relative to a scenario with no trade war. That’s double the direct impact of the tariffs themselves and the equivalent of $585 billion off the International Monetary Fund’s estimated world GDP of $97 trillion in 2021. China would be hit harder by the uncertainty factor, with its GDP lower by 1% compared with a 0.6% chunk taken out of America’s economic output, the analysis showed. “The tweet ...