Tega Industries IPO opens today: 10 key things to know about the company, issue - Moneycontrol.com

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Tega Industries, which manufactures and distributes specialised ‘critical to operate’ and recurring consumable products for the global mineral beneficiation, mining and bulk solids handling industry, will float a public issue on December 1.

Let’s take a look at the 10 key things to know before subscribing to the issue:

1. IPO Dates
The offer will open for subscription on December 1, 2021, and the last date for subscribing to the offer is fixed at December 3, 2021.

2. Price Band
The Kolkata-based company has fixed the price band at Rs 443-453 per share.

3. Offer Details
The company plans to mop up Rs 619.22 crore at the upper price band. The IPO is entirely an offer-for-sale (OFS) of 1,36,69,478 equity shares by selling to shareholders and promoters. Hence, the company will not get any fund from the offer.

Promoters Madan Mohan Mohanka and Manish Mohanka will sell 33,14,657 equity shares and 6,62,931 equity shares, respectively, through the offer-for-sale, and the remaining 96,91,890 equity shares will be offloaded by investor Wagner.

The promoter shareholding stands at 85.17 percent, which will come down to 79.17 percent, after this issue.

The anchor book, if any, may open for a day on November 30, a day before the opening of the IPO.

4. Objective of the Issue
The objective of the offer is to achieve the benefits of listing the equity shares on the stock exchanges.

5. Lot Size and Reserved Portions
Investors can bid for a minimum of 33 equity shares and in multiples of 33 shares thereafter. Retail investors can make a minimum investment of Rs 14,949 per lot and their maximum investment would be Rs 1,94,337 for 13 lots.

6. Company Profile and History
The company offers comprehensive solutions to global clients in the mineral beneficiation, mining and bulk solids handling industry across different stages of mining and mineral processing, screening, grinding and material handling, including after-market spends on wear, spare parts, grinding media and power.

Globally, on the basis of revenues, it is the second-largest producer of polymer-based mill-liners as of June 30, 2021. Its product portfolio comprises more than 55 mineral processing and material handling products, that cover a wide range of solutions in the mining equipment, aggregates equipment and the mineral consumables industry.

The company started operations in 1978 in India in collaboration with Skega AB, Sweden. Later, promoter Madan Mohan Mohanka acquired the entire equity stake of Skega AB in the company in 2001.

The company gets maximum business from abroad. It has six manufacturing sites, including three in India, at Dahej in Gujarat, and at Samali and Kalyani in West Bengal, and three sites in major mining hubs of Chile, South Africa and Australia.

The overseas business, including North America, South America, EMER (Europe, Middle East and Russia), Africa, and Asia Pacific, constituted 84.48 percent, and 86.42 percent of revenue in June 2021 quarter and FY21, respectively.

The company’s end customers are mineral processing sites involved in gold and copper ore beneficiation, accounting for 34.92 percent and 27.25 percent of its sale of products as an average of last three fiscals.

7. Financials
On a consolidated basis, the company posted revenues of Rs 856.68 crore on FY21 against the revenues of Rs 695.54 crore in FY20, a YoY growth of 23 percent. Consolidated revenues for FY 19 came in at Rs 643.01 crore.

The company posted a net profit of Rs 136.41 crore in FY21 as against a net profit of Rs 65.5 crore in FY20, a YoY jump of 108 percent. The net profit for FY19 stood at Rs 32.67 crore. For the first quarter of FY22 ended on June 30, 2021, it has earned a net profit of Rs 11.88 crore on a turnover of Rs 179.39 crore.

8. Key Risks
The company competes with strong multinational companies for its product and service portfolio. Though the competition is limited at international level, it comes from both the organised and unorganised players both domestically and internationally.

9. Promoters and Management
Madan Mohan Mohanka is one of the promoters of the company, and the chairman and executive director. He has been associated with the company since its incorporation.

Mehul Mohanka is one of the promoters, and the managing director and group CEO of the company. He is associated with the mining and construction equipment division of Confederation of Indian Industry as the chairman and is the co-chair of the CII national committee on mining.

Syed Yaver Imam is the executive director of the company, while Hemant Madhusudan Nerurkar, Jagdishwar Prasad Sinha, Madhu Dubashi and Rudolph Michael Edge are the independent directors.

Key managerial personnel include Manoj Kumar Agarwal, who is the director for global finance and chief financial officer of the company,
Manoj Kumar Sinha is the director for operations, Kanjanabha Bhattacharyya is the president of corporate strategy, Bhanu Sharma is the vice-president of human resources and administration, and Sudipta Bhowal is the general manager for legal as well as the company secretary.

10. GMP, Listing and Allotment Date
The IPO is commanding a premium of Rs 310 per share in the grey market as per IPO Watch. The share allotment will get finalised by December 8. The unsuccessful investors will get refunds in their bank accounts by December 9, while the successful investors will get shares in their demat accounts by December 10.

Trading in the Tega Industries equity shares on the BSE and NSE will commence on December 13.

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Tega Industries IPO opens today: 10 key things to know about the company, issue - Moneycontrol.com
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Stocks to Watch: Maruti, Future Retail, Coal India, NTPC - Livemint

Here is the list of the top 10 stocks that are likely to be in focus on Wednesday:

Maruti Suzuki: India's largest carmaker Maruti Suzuki has flagged the impact of chip crunch on the vehicle production at two of its manufacturing units in the country. The vehicle production could only be around 80% to 85% of the normal production, owing to supply constraint of electronic components due to the ongoing semiconductor shortage situation.

Future Retail: Future Retail Ltd’s lenders are planning to discuss allegations of financial irregularities against the retailer and may initiate a forensic audit of the company’s books, two people aware of the development said. In a 24 November letter to the finance ministry and the Reserve Bank of India, Future Group’s partner Amazon.com Inc. alleged funds diversion in Future Retail, including unfair related-party transactions worth about $1 billion; a sudden spike in Future Retail’s debts; and an inordinate delay in payment to creditors due to discrimination by promoters.

NTPC: State-owned power giant NTPC said 250-MW unit-4 of its Nabinagar power plant will begin commercial from the midnight of Wednesday. "Unit-4 of 250 MW capacity of Nabinagar Thermal Power Project (4X250 MW) of Bhartiya Rail Bijlee Company Limited (a subsidiary company of NTPC Ltd) is declared on commercial operation w.e.f. 00:00 hrs of December 1, 2021," according to a BSE filing. With this, the commercial capacity of the NTPC group will become 67,907.5 megawatts (MW), it stated.

Coal India: State-run Coal India Ltd (CIL) plans to invest ₹19,650 crore by FY24 to increase coal transportation capacity by 330 million tonnes (mt) by constructing rail links and setting up joint ventures (JVs). The world’s largest coal miner’s rail mobility play comes against the backdrop of a coal shortage that has raised concerns. The situation has however improved with fuel stock sufficient for nine days at 136 coal-run power projects totalling 166.109 giga watt (GW). Shares of Coal India surged in Tuesday's opening deals after the miner in a regulatory filing on Monday said that the board in its meeting held approved payment of interim dividend for FY22 at ₹9 per share of the face value of ₹10 as against ₹7.5 per share announced last year.

Rail Vikas Nigam: The company signed MoU with Economic Policy Research Institute of KYRGYZ Republic, Government of Kyrgyzstan, for development of railway corridor projects in Kyrgyz Republic specially to connect from Bishkek to Karakechenskoye.

NMDC: State-owned mining company NMDC on Tuesday slashed prices of lump ore by ₹750 a tonne and fines ₹200 per tonne, with immediate effect. In a regulatory filing, the company said it has revised the rates of lump ore or higher grade ore to ₹5,200 a tonne. While the price of lump ore or low-grade ore has been fixed at ₹4,560 per tonne.

Yes Bank: The Supreme Court on Tuesday set aside a Noida police directive that barred Yes Bank Ltd from exercising its rights over the shares it owns in Dish TV India Ltd and stayed the ongoing police probe, saying such actions can have “dangerous consequences". The top court’s order allows Yes Bank, the satellite-TV provider’s largest shareholder with a 25.63% stake, to continue its now over-two month battle for a board reconstitution at Dish TV.

Torrent Pharma: Shares of Torrent Pharmaceuticals Ltd have gained more than 10% over the last one week. The renewed investor confidence is led by expectations of a strong growth trajectory in the domestic market, which have prompted analysts at Credit Suisse to upgrade the stock to “outperform" from “underperform". The company had reported lower-than-expected performance for September quarter.

Axis Bank: Private lender Axis Bank has received approval from both Bombay Stock Exchange (BSE) and Nation Stock Exchange (NSE) to reclassify four insurers from promoter category to public shareholders. "We wish to inform you that BSE and NSE vide their respective letters dated November 30, 2021 have granted their approval for the reclassification of aforementioned promoters to “Public" category from “Promoter" category," Axis Bank said in a filing.

Zomato: Close on the heels of launching a $1 billion corpus to invest in startups, food delivery company Zomato on Tuesday unveiled Zomato Wings, a platform to help restaurants raise investments. Zomato said it would facilitate fundraising for its partner restaurants by helping them position their story and metrics and connecting them with investors. Zomato itself, though, will not invest in the restaurant brands.

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Stocks to Watch: Maruti, Future Retail, Coal India, NTPC - Livemint
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TRAI releases consultation paper to discuss pricing, modalities for auction of 5G spectrum - Moneycontrol.com

The Telecom Department has asked TRAI to provide recommendations on issues such as applicable reserve price, band plan, block size, quantum of spectrum to be auctioned and associated conditions for auction of spectrum in 526-698 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3670 MHz and 24.25-28.5 GHz bands, the regulator said in a statement.

PTI

November 30, 2021 / 06:08 PM IST

Telecom regulator TRAI on Tuesday released a detailed consultation paper to discuss modalities for auction of 5G spectrum bands, including pricing, quantum and related conditions.

The Telecom Department has asked TRAI to provide recommendations on issues such as applicable reserve price, band plan, block size, quantum of spectrum to be auctioned and associated conditions for auction of spectrum in 526-698 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3670 MHz and 24.25-28.5 GHz bands, the regulator said in a statement.

"The Telecom Regulatory Authority of India (TRAI) has today released a consultation Paper on ’Auction of spectrum in the frequencies identified for International Mobile Telecommunications (IMT) / 5G,” the statement added.

TRAI has sought comments from stakeholders on various issued outlined in its consultation paper by December 28, 2021.

The deadline for counter-comments has been set at January 11, 2022.

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India to log double-digit growth this fiscal: CEA K V Subramanian - Economic Times

Chief Economic Adviser (CEA) K V Subramanian on Tuesday exuded confidence that India would achieve double-digit growth in the current financial year on the back of policy initiatives and continuing reforms.

He also said the country is well poised to meet the fiscal deficit target of 6.8 per cent of GDP.

"At this stage, I can say confidently that we should be able to achieve that fiscal deficit number. Any shortfalls that might happen on the disinvestment side will also be accompanied by positive surprises that have happened on tax revenue," he told reporters.

The government estimates fiscal deficit at 6.8 per cent of the gross domestic product (GDP) for the current financial year ending on March 31, 2022.

Subramanian, who would be demitting office after completing his three-year stint next month, added, "India is likely to have double-digit growth this year. The overall growth for the first half has been 13.7 per cent, so even a little more than 6 per cent growth in the subsequent quarters should be able to deliver double-digit growth for this year."

India's GDP growth stood at 8.4 per cent in the second quarter of 2021-22, with the economy surpassing the pre-COVID level, official data showed on Tuesday.

The Economic Survey 2020-21, released in January this year, had projected GDP growth of 11 per cent during the current financial year ending March 2022.

The Survey had said growth will be supported by supply-side push from reforms and easing of regulations, infrastructural investments, boost to manufacturing sector through the Production-Linked Incentive (PLI) schemes, recovery of pent-up demand, increase in discretionary consumption subsequent to rollout of vaccines and pick up in credit.

"We are projecting 6.5-7 per cent (growth) next year and thereafter 7 per cent plus over different scenarios. I think the impact impact of seminal second generation reforms will unfold in terms of both investment and in productivity going forward," he said.

With regard to the impact of the new coronavirus variant Omicron, he said it is too early to comment.

He, however, said the impact would be less than the first wave as the government already has experience of handling two waves of the pandemic.

"Given that we are still amidst pandemic and the Omicron variant seems to have actually created some concern, we are all waiting for evidence to come on how infectious would it be, and how debilitating would it be as well compared to the Delta variant," he said.

Asked about the impact of repeal of three farm laws on the reforms process, the CEA said it should not affect reforms in other sectors.

"In a democracy like ours, political economy matters a lot and I think it is a fact that the way agriculture generates emotion other sectors do not.

"Therefore, extrapolating anything that you are seeing in agriculture, be it reforms or otherwise, on to other sectors...I would not recommend, because the dynamics are quite different," he said.

Parliament on Monday passed a bill to repeal the three contentious agricultural laws at the centre of protests by farmers for over a year, with the Lok Sabha and the Rajya Sabha giving their approval in quick succession amid an uproar.

The government scrapped the three laws which were passed by Parliament in September last year.

Prime Minister Narendra Modi had announced on November 19 that the three farm legislations -- Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act; The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act; and The Essential Commodities (Amendment) Act -- will be repealed.

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India to log double-digit growth this fiscal: CEA K V Subramanian - Economic Times
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SC stays FIR filed against YES Bank by Subhash Chandra in Dish TV case - Business Standard

The Supreme Court has stayed the first information report filed with the Uttar Pradesh police by Essel group founder Subhash Chandra against YES Bank, and officials of Videocon D2H. As part of its investigation, the UP police had frozen the voting rights on YES Bank's stake held in Dish TV India.

The SC said it would not permit police officers sitting in Gautam Buddh Nagar to freeze voting rights of YES Bank's stake in Dish TV India. Dish TV announced last night that it has postponed it's annual general meeting, scheduled for today, by a month.

The SC said the UP police had frozen YES Bank's voting rights which even company law tribunals had not done. This will only lead to lawlessness in the country, the court said.

The SC said the freeze on voting rights amounted to short-circuiting of judicial orders by using the police. "We can't allow this. Using the criminal law process to achieve results in civil proceedings will be dangerous. We have to look at the overall consequence," the SC said and issued notices to all the parties.

YES Bank had acquired a 24.5 per cent stake in Dish TV after its promoters failed to repay their debt and banks invoked the pledged shares. In September last year, the founder of Essel group, Subhash Chandra, filed a police complaint against the bank and its former management led by Rana Kapoor accusing them of fraud while brokering a merger transaction between Videocon D2H and Dish TV India. The matter is under investigation by the police.

Abhishek Manu Singhvi, senior counsel appearing on behalf of Yes Bank said a a loan of Rs 5,270 crores was disbursed by Yes Bank to the Essel Group and its sister concerns between 2016-2018 against a pledge of shares. The pledge of 44.53 crores shares of Dish TV was invoked following which, between May and July 2020, an intimation was furnished to the BSE, NSE and RBI.

A complaint was lodged on 22 June 22, lasy year by Subhash Chandra complaining that they had been induced or pressurized to take loans and an FIR on the basis of the complaint under the various provisions of the Indian Penal Code 1860 was registered on September 12, 2020.

On November 5, 2021, the UP police issued notices to Yes Bank preventing the transfer of the shares and the exercise of rights under them

Kapil Sibal, senior counsel, appears on behalf Chandra, submitted that there was neither a genuine loan transaction nor a valid pledge of shares in favour of Yes Bank.

But in its order, the SC said at this stage, it is of the view that it would be necessary to protect the interest of Yes Bank in respect of the pledged shares. The court listed the matter to January 12, 2022.

The lender moved the highest court after the Allahabad High Court dismissed its petition on Thursday to quash the FIR filed by Chandra with the Uttar Pradesh police.

As part of its investigation, the Crime Branch, Gautam Buddh Nagar police had frozen the voting rights on the stake held by YES Bank in Dish TV.

YES Bank wants to replace the current board of Dish TV with its own nominees as the lender is of the opinion that the board is siding with the Chandra family – whose stake in the company has decreased to 6 per cent. .

YES Bank and Dish TV India did not comment on the matter.

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Eight core industries growth rises to 7.5% in October - Moneycontrol.com

Representational image

The combined output of eight core industries has surged by 7.5 percent in October, as compared to the same period last year, showed the official data released on November 30.

The cumulative output, apart from registering a year-on-year growth, has also marked a sequential growth as the core industries grew by 4.4 percent in September 2021.

"The combined Index of Eight Core Industries stood at 136.2 in October 2021, which increased by 7.5 per cent (provisional) as compared to the Index of October 2020," the Ministry of Commerce and Industry said in an official release.

"The production of coal, natural gas, refinery products, fertilisers, steel, cement and electricity industries increased in October 2021 over the corresponding period of last year," it added.

The above industries, along with crude oil, constitute the eight core industries. They comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

The highest growth, in October, was recorded in natural gas production as it increased by 25.8 per cent over the same period last year. Its cumulative index increased by 22.6 per cent during April-October 2021 over the corresponding period of previous year.

Also Read | Q2 GDP: Indian economy grew 8.4% in July-September quarter

Coal production surged by 14.6 percent as compared to the same period a year ago, with its cumulative index increasing by 12.2 percent during April-October 2021 as compared to the same period of year 2020.

Petroleum refine production increased by 14.4 percent in October, and its cumulative index increased by 11.7 percent during April-October 2021.

Among other core industries, cement production increased by 14.5 percent in October, electricity by 2.8 percent, fertiliser production grew marginally by 0.04 percent and steel by 0.9 percent.

Crude oil was the only core industry that recorded a negative growth last month, as its production declined by 2.2 percent. Its cumulative index also declined by 2.8 per cent during April-October 2021 as compared to the same six-month period of last year.

"In YoY terms, the pace of growth varied widely across the eight core sectors, with cement, coal, natural gas and petroleum refinery products displaying a double-digit expansion, whereas the rise in electricity, steel and fertilisers was sub-3 percent and crude oil output contracted," said Aditi Nayar, Chief Economist, ICRA.

"With a mixed trend displayed by most early indicators that are available for November 2021, we expect the core sector growth to slip to under 5% for this month," Nayar added.

Notably, the official data released by the government also showed that the combined growth rate of eight core industries during April-October 2021 was 15.1 percent higher as compared to the corresponding period last year.

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Go Fashion shares make bumper debut, nearly double from issue price - Livemint

Shares of Go Fashion (India) Limited, which owns women's wear brand Go Colors, made their stock market debut with a strong premium of 90% at ₹1,310 per share on the NSE as compared to its IPO issue price of ₹690 apiece. On the BSE, Go Fashion shares were trading at ₹1,316 

The three-day initial public offering (IPO) of Go Fashion had received a whopping 135.46 times subscription on its last day of subscription that concluded on November 22. The ₹1,013.6-crore IPO received bids for 1,09,44,34,026 shares against 80,79,491 shares on offer.

“Go Colors has a sturdy brand value with fluctuating revenues while the company moved into losses in FY21. However, as the number of working women is increasing along with the evolving fashion trends it is expected that the company can have a strong growth momentum. The company has a strong management team with a mixed bag of financials and it is expected that it may perform well," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

The IPO got its debut with a gain of 89% to its issue price. The aggressive investors who got the allotment can put a stop loss of ₹1000 and hold the stock with a long-term view, while safe investors can book the profit and wait for new buying opportunities at the lower levels,

The initial share sale had a fresh issue of up to ₹125 crore and an offer for sale (OFS) of up to 12,878,389 equity shares. The price range for the public offer was at fixed at ₹655-690 per share. Go Fashion has raised a little over ₹456 crore from anchor investors, ahead of its IPO that had opened for public subscription on November 17.

Go Fashion is engaged in the development, design, sourcing, marketing and retailing a range of women's bottom-wear products under the brand, 'Go Colors'. 

The proceeds from the fresh issue is aimed to be used to fund roll out of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes. Its network of 459 EBOs (Exclusive Brand Outlets) are spread across 23 states and union territories in India, as of September 30, 2021.

 

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Indian-Origin Parag Agrawal To Replace Jack Dorsey As Twitter CEO - NDTV

Jack Dorsey, 45, is also the head of payments company Square Inc. (File)

Jack Dorsey, the co-founder and chief executive officer of Twitter Inc., is stepping down, ceding the position to the company's Chief Technology Officer Parag Agrawal.

The move is effective immediately, though Dorsey will stay on the board of the social media company until his term expires in 2022, Twitter said in a statement Monday.

"I've decided to leave Twitter because I believe the company is ready to move on from its founders," Dorsey said in the statement. "My trust in Parag as Twitter's CEO is deep. His work over the past 10 years has been transformational. I'm deeply grateful for his skill, heart, and soul. It's his time to lead."

not sure anyone has heard but,

I resigned from Twitter pic.twitter.com/G5tUkSSxkl

— jack⚡️ (@jack) November 29, 2021

Dorsey, 45, is also the head of payments company Square Inc. and has been taking an increasing interest in cryptocurrencies recently. Dorsey stepped down as CEO of Twitter in 2008, but returned to the company in 2015.

In 2020, Dorsey came under pressure from activist investor Elliott Management Corp. over how he was spending his time. A year earlier, he had also said he planned to spend up to six months of the year working in Africa to better understand the continent's internet users, a move that was ultimately scrapped due to Covid 19. The hedge fund reached an agreement with Twitter and private equity group Silver Lake to appoint three new directors to Twitter's board and create a committee to review its leadership and governance. Agrawal, who became chief technology officer in 2017, will become a member of the board.

Company's Chief Technology Officer Parag Agrawal will be the new CEO

The deal came at a cost, though: Twitter had to grow its monetized daily users by 20% or more and boost revenue growth. Dorsey could lose his position if those goals weren't met, Bloomberg reported.

CNBC reported the news earlier Monday, without providing any other details. Twitter couldn't immediately be reached for comment.

Twitter shares jumped 3.4% at 10:50 a.m. in New York. In an unusually bubbly tech equity market, Twitter has lagged behind its peers, with its shares slumping almost 10% this year, while Meta Platforms Inc., formerly Facebook, has risen 23%. 

"The headline takeaway here is Twitter's execution," said Mandeep Singh, an analyst at Bloomberg Intelligence. "When you compare Twitter to all the other social media platforms, the level of engagement they had, they never were able to monetize it as well as some" other rivals. "Investors recognize having one man be the CEO of two companies wasn't very effective in terms of execution."

Dorsey has also overseen the company when it faced widespread pressure from politicians and activists to take a more proactive role in moderating hate speech, misinformation and other forms of objectionable content from political leaders. Dorsey took a stronger line than his social-media peers during Donald Trump's presidency, banning the former president from Twitter and telling Congress that he takes some responsibility for online organizing that led to the Jan. 6 riot at Capitol Hill. The company also recently introduced a program to crowd source fact-checking misinformation.

Dorsey has been at the helm of Twitter as it experimented with new innovations in social media including most recently live audio products and subscription services. In June, the company unveiled Twitter Blue, a long-awaited subscription service that will allow users to rescind tweets and organize their posts. It's also launched Twitter Spaces, a live audio chat service that were meant to compete with up-and coming upstart Clubhouse.

In recent months, Twitter stepped up its pace of acquisitions after years of languid deal-making, as the company made a renewed effort to increase the addition of new features. In May the company purchased the news reader service Scroll. 

But the company also faced market pressures from younger rivals including TikTok and Snapchat which has large audiences among the youngest age cohorts with short-form video products.

Twitter said earlier this year it wants to double its annual revenue to $7.5 billion by 2023, and expects to increase its user base by an average of almost 20% in each of the next three years, according to a regulatory filing.

In the third quarter, Twitter said it had 211 million daily users, 5 million more than the previous period and a 13% increase from a year earlier. The social media service attributed the growth to "ongoing product improvements and global conversations around current events."

Dorsey has a net worth of $12.3 billion, with Square accounting for more than $10 billion of that amount. He's publicly pledged much of his stake in Square to charitable causes, according to data compiled by Bloomberg.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Indian-Origin Parag Agrawal To Replace Jack Dorsey As Twitter CEO - NDTV
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Twitter CEO Jack Dorsey Expected To Step Down - NDTV

In early 2020, Jack Dorsey faced calls from Elliott Management Corp to step down (File)

Twitter announced Monday that co-founder Jack Dorsey was stepping down immediately as CEO, with the company's chief technical officer Parag Agrawal replacing him.

"Twitter, Inc. today announced that Jack Dorsey has decided to step down as chief executive officer and that the Board of Directors has unanimously appointed Parag Agrawal as CEO and a member of the board, effective immediately," the company said in a statement.

not sure anyone has heard but,

I resigned from Twitter pic.twitter.com/G5tUkSSxkl

— jack⚡️ (@jack) November 29, 2021

In early 2020, Dorsey faced calls from Elliott Management Corp to step down, after the hedge fund argued he was paying too little attention to Twitter while also running payments processing company Square Inc.

Dorsey fended off the pressure by giving Elliott and its ally, buyout firm Silver Lake Partners, seats on Twitter's board.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Twitter CEO Jack Dorsey Expected To Step Down - NDTV
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RBI to soon start insolvency process of Reliance Capital, supersedes Board - Livemint

The Reserve Bank of India (RBI) has superseded the board of Reliance Capital as the company defaulted on various payment obligations to its creditors and the company will go under the insolvency process soon.

"In exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of M/s Reliance Capital Ltd (RCL) in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious governance concerns which the Board has not been able to address effectively," RBI said in a statement.

RBI said there were serious governance concerns which the Board has not been able to address effectively. The Central Bank has also appointed former Bank of Maharashtra director Y Nageswar Rao as the administrator of the company.

The Reserve Bank said it will shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy code.

The Central Bank will also apply to the NCLT for appointing the administrator as the Insolvency Resolution Professional.

Reliance Capital will become the third non-banking financial company to go under the insolvency procedure after DHFL and Srei Group companies.

A part of Anil Dhirubhai Ambani Group, Reliance Capital has repeatedly failed to repay its debt obligations.

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India Q2 GDP preview: Signs economists will be looking for - Economic Times

With the Q2 GDP numbers slated for release on Tuesday, November 30, economists and analysts feel the Indian economy grew in the range of 7-9%.

ET Online

The forecast
Rating agency ICRA has upgraded its GDP growth estimate for the second quarter of the current fiscal on the back of higher government spending in September. ICRA, which had pegged the growth rate at 7.7%, has now upgraded it to 7.9%. The Reserve Bank of India has forecast a growth rate of 7.9% for the real GDP. "Economic activity in Q2FY22 was supported by a pick-up in industrial and service sector volumes after the second wave of Covid-19 subsided and rising vaccine coverage revived confidence,” its chief economist Aditi Nayar said.

Tanvee Gupta Jain, Economist at Swiss brokerage UBS Securities has said that the UBS Activity Tracker has shown an upward trend. UBS has forecast that India’s GDP in the September growth should see a growth of around 8-9%. But on the recovery front, Gupta-Jain says India isn’t really seeing a broad-based recovery. “We are seeing a mixed recovery in India, definitely not a broad-based recovery. But we are expecting improvement in demand-side indicators including vehicles, property, home and personal care and consumer durables,” she says.

"From the worst ever recession which we saw last year when the economy declined 7.3%, this year we are seeing a 9.5% GDP growth. I would say that is largely due to a favourable base. The actual rebound on the ground has been muted."

— Tanvee Gupta Jain, UBS Securities

Teresa John, Economist at Nirmal Bang Institutional Equities forecasts the GDP growth for Q2FY22 at around 7%. John notes that the government support for the rural sector is slowly being withdrawn. “This implies that rural growth is likely to slow going ahead which could pose some headwinds for growth, but may be offset at least partially by a recovery in urban demand,” John says.

SBI Research has said that the forecasted GDP growth for Q2 would be around 8.1% (with upward bias) while Q2 GVA is estimated at 7.1%. India’s projected 8.1% growth rate in Q2FY22 is the highest growth across all economies, it said in its note.

Current situation and challenges for Indian economy
Inflationary pressures remain a global concern in a market pressured by supply chain worries. “Raw material prices have risen but the pass-through to retail prices is far from complete. The rise in retail prices of consumer staples and discretionary products may also weigh on demand,” John says.

Owing to the sudden outbreak of COVID-19 in 2020, India’s GDP shrank 7.3% in FY21 but has since been on a path to recovery. But despite the recovery, Gupta-Jain believes that the actual rebound in economic growth on the ground has been muted. Although she does point out the fact that due to the emergence of the first and the second wave of COVID-19, the Indian government was forced to focus on getting people vaccinated and getting the economy back on track, rather than focusing on new growth drivers.

“Even though the government used the pandemic to announce a lot of long-standing reforms the implementation is still lagging. We still have to wait out for next year to see whether and how quickly the reforms announced are finally being implemented,” she said.

"The supply recovery has lagged the recovery in demand, but supply is bound to catch up. A case in point is crude oil where prices have begun to ease with improving supply"

— Teresa John, Nirmal Bang

Gupta-Jain further flags the fact the formal economy has gained market share during COVID-19 and that the unorganised informal economy has suffered which is definitely not captured in the GDP numbers seen so far.

Inflation worries?
John says the supply chain bottlenecks that have pushed up inflation globally are likely to ease with time. “While inflationary pressures may sustain over the next few quarters, we do not believe that there is a structural change in the inflation outlook. Emerging from a pandemic, consumers are unlikely to throw caution to the wind while spending which will keep a lid on demand-side pressures on inflation. Policymakers are likely to be tolerant of slightly higher than target inflation in the interim, and not view it a big threat, but slightly faster normalization cannot be ruled out,” she adds.

ET Online

Between 2009 and 2013, the average inflation in India was around 9.9%. Gupta-Jain believes things are different now, thanks to sustained capex spending by the Centre and state governments. “The government seems to be on a path to fiscal consolidation. Data shows capex spending by the Centre is in double-digits, in-line with the Budget estimate. Public capex spending is happening on the ground unlike in the previous years. As consumption slows down and you need a new growth driver, it is capex and somewhat real estate recovery which is being seen.

The road ahead
On the demand front, Gupta-Jain opines that the pent-up demand seen now will moderate by March 2022. Vaccination rates might increase, people will want to spend money, they will want to avail themselves of high contact services. It is going to fade as we move towards FY23. For FY22, UBS has forecast a 9.5% YoY growth. SBI Research estimates that the FY22 GDP growth rate for India could be between 9.3-9.6%.

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LIC gets RBI nod to increase stake in Kotak Mahindra Bank - Moneycontrol.com

File image of Uday Kotak

Private sector lender Kotak Mahindra Bank, on November 29, said the Reserve Bank of India (RBI) had granted its approval to Life Insurance Corporation of India (LIC) to increase holding in the bank up to 9.99 percent.

The approval is valid for a period of one year, the bank said.

This is subject to compliance with the provisions issued by the Securities and Exchange Board of India (SEBI), provisions of the Foreign Exchange Management Act, 1999 and any other guidelines/regulations and statutes, as applicable, the bank said.

Uday Kotak tells Twitter user to "get facts right", says Kotak Bank was not lead manager for Paytm IPO

Last week, the RBI accepted a working group's recommendation to increase promoter stake in private banks till 26 percent and non-promoter stake to 10 percent.

As of September 30, the LIC holds 4.96 percent stake in Kotak Mahindra Bank. Promoters Uday Kotak and family holds 26 percent stake in Kotak Mahindra Bank while Canada Pension Plan Investment Board holds 6.37 percent. In 2020, Kotak moved court against the RBI’s direction to reduce promoter stake to 15 percent. The RBI later agreed to allow Kotak to retain stake at 26 percent.

On November 26, the RBI accepted 21 out of the 33 recommendations submitted by a Central bank working group on ownership and corporate structure for Indian private sector banks.

Among the recommendations accepted is a rule that says the cap on promoters’ stake in the long run of 15 years may be raised from the current levels of 15 percent to 26 percent of the paid-up voting equity share capital of the bank.

This stipulation should be uniform for all types of promoters and would not mean that promoters, who have already diluted their holdings to below 26 percent, will not be permitted to raise it to 26 percent of the paid-up voting equity share capital of the bank, the RBI said.

'Central banks, sovereigns globally have one medicine for all problems: print money', says Uday Kotak

"The promoter, if he/she so desires, can choose to bring down holding to even below 26 percent, any time after the lock-in period of five years," the RBI said.

The Central bank, on November 20, released a report on the internal working group (IWG) recommendations on private bank ownership and corporate structure

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LIC gets RBI nod to increase stake in Kotak Mahindra Bank - Moneycontrol.com
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LIC gets RBI nod to increase stake in Kotak Mahindra Bank - livemint.com

Private lender Kotak Mahindra Bank today said that Life Insurance Corporation (LIC) has received approval from the Reserve Bank of India (RBI) to increase its stake in the Bank up to 9.99%.

While announcing reformed rules on the structure of private sector banks, the RBI had on Friday said that non-promoter share holdings would continue to be capped at 10% for individuals and non-financial institutions.

The approval by the Central Bank will be valid for one year.

Currently, LIC holds 4.96% in Kotak Bank, as per the information available from the shareholding pattern till 30 September.

"We wish to inform you that Kotak Mahindra Bank Limited ("Bank") has received an intimation from Life Insurance Corporation of India ("LIC") stating that the Reserve Bank of India had granted its approval to UC, for increasing its holding in the Bank up to 9.99% of the paid up equity share capital of Bank," Kotak said in an exchange filing.

On Monday, Kotak Mahindra Bank shares were trading 2.55% higher in noon deals at ₹2,014.30 on NSE.

LIC's raising of stake is subject to compliance with the provisions of the directions given by RBI in 2015 and required regulations by the market regulator SEBI.

The RBI norms mandate that every person or an entity who intends to make an acquisition in Private Banks of more than 5% stake, prior approval is needed from the Central Bank.

LIC has made an application to the Reserve Bank and on the receipt of it, the RBI has sought recommendations on the acquisition from the concerned Bank.

Meanwhile, LIC, which is one of the biggest institutional investors in India’s stock market, is aiming to list on domestic bourses by March next year in an initial public offering estimated at $12 billion, set to be the country's biggest.

Kotak Mahindra Bank, one of the largest private banks in India, boasts of a free float market capitalisation of nearly ₹3 lakh crore.

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Stock Market Highlights: Sensex Ends 153 Points Higher, Nifty50 Reclaims 17,050 As Market Rebounds - CNBCTV18

Healthy correction for market, support for Nifty50 around 16,600-16,700 levels: Goldilocks Premium's Gautam Shah 

Gautam Shah of Goldilocks Premium believes the current correction is a mild dip in a bigger bull market. This is a healthy correction for the Indian market, he said in an interaction with CNBC-TV18. He sees support for the Nifty50 index around 16,600-16,700 levels. He said the index appears to be getting into an oversold zone around 16,600. 

He is positive on real estate, capital goods, telecom and pharmaceutical shares. Shah believes the current dip in unlock trade stocks is providing a good opportunity to enter.

Reliance Industries could be the leader for the Nifty to bounce from here on, and the stock could move towards its lifetime highs, he said.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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Stock Market Highlights: Sensex Ends 153 Points Higher, Nifty50 Reclaims 17,050 As Market Rebounds - CNBCTV18
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Oil rebounds on speculation OPEC+ may pause output increase By Reuters - Investing.com

© Reuters. FILE PHOTO: A sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant

By Yuka Obayashi

TOKYO (Reuters) -Oil prices rebounded on Monday as investors looked for bargains after Friday's slump and on speculation that OPEC+ may pause an output increase in response to the spread of Omicron, but the mood remained cautious with little known about the new variant.

Prices jumped over 4%, recovering some ground after plunging more than 10% in the previous trading session. On Friday, oil prices posted their biggest one-day drop since April 2020 as the new variant spooked investors across financial markets.

futures climbed $3.17, or 4.4%, to $75.89 a barrel by 0748 GMT, after falling $9.50 on Friday.

U.S. West Texas Intermediate (WTI) crude was up $3.35, or 4.9%, at $71.50 a barrel, having tumbled $10.24 in the previous session.

There are worries the new variant could derail the global economic recovery, potentially hurting oil demand, while it has also added to concerns that a supply surplus could swell in the first quarter.

"We saw some correction as the Friday's plunge in oil prices has been overdone," said Tatsufumi Okoshi, senior economist at Nomura Securities.

"If the market falls further, OPEC+ may pause the planned increase of crude production to support prices," he said.

The Omicron variant spread around the world on Sunday, with new cases found in the Netherlands, Denmark and Australia even as more countries imposed travel restrictions.

Japan said on Monday it would close its borders to foreigners, as the world's third-largest economy joined Israel in taking the toughest measures against the Omicron, which also cast a cloud over Australia's re-opening plans.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have postponed technical meetings to later this week, giving themselves more time to assess the impact of the Omicron on oil demand and prices, according to OPEC+ sources and documents.

OPEC's joint ministerial monitoring committee was delayed from Tuesday to Thursday. OPEC+ will also meet on Thursday, when a policy decision will likely be announced on whether to adjust its plan to increase output by 400,000 barrels per day in January and beyond.

Some analysts have suggested the group could pause the increases after the release of stocks by oil consuming countries and possible repercussions for demand from new lockdowns to contain the new variant.

"All eyes will be on how the Omicron will affect global economy and fuel demand, OPEC+ action and Iran nuclear talks this week," said Hiroyuki Kikukawa, general manager of research at Nissan (OTC:) Securities.

Talks on reviving the 2015 Iran nuclear deal are to resume in Vienna on Monday, with Iran's atomic advances raising doubt as to whether a breakthrough can be made to bring Tehran and the United States back into full compliance with the accord.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Oil rebounds on speculation OPEC+ may pause output increase By Reuters - Investing.com
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M-cap of nine of top-10 most valued firms erode by over Rs 2.62 lakh cr - Economic Times

New Delhi: The market valuation of nine of the top-10 most valued companies eroded by Rs 2,62,146.32 crore last week in tandem with an overall weak broader market, where Bajaj Finance and Reliance Industries took the biggest hit.

During the last week, the BSE benchmark Sensex plunged by 2,528.86 points or 4.24 per cent.

Bharti Airtel was the only gainer from the top-10 companies' list.

The valuation of Bajaj Finance tumbled by Rs 41,518.24 crore to Rs 4,10,670.50 crore.

Reliance Industries (

) saw its market worth tank by Rs 38,440.66 crore to Rs 15,30,109.51 crore.

The valuation of Infosys took a hit of Rs 37,950.03 crore to reach Rs 7,10,925.34 crore and that of HDFC plummeted by Rs 33,067.68 crore to Rs 4,96,168.98 crore.

State Bank of India's market capital dropped by Rs 29,852.83 crore to Rs 4,19,902.97 crore and ICICI Bank lost Rs 28,567.03 crore to Rs 5,01,039.91 crore.

The market capitalisation (m-cap) of HDFC Bank dipped by Rs 26,873.77 crore to Rs 8,25,658.59 crore and that of Hindustan Unilever Ltd (HUL) fell by Rs 14,778.93 crore to Rs 5,48,570.82 crore.

The valuation of Tata Consultancy Services d(TCS) dipped by Rs 11,097.15 crore to Rs 12,74,563.64 crore.

In contrast, Bharti Airtel's valuation jumped Rs 12,769.55 crore to Rs 4,05,009.55 crore.

In the ranking of top-10 firms, RIL remained the most valued firm, followed by TCS, HDFC Bank, Infosys, HUL, ICICI Bank, HDFC, State Bank of India, Bajaj Finance and Bharti Airtel.

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M-cap of nine of top-10 most valued firms erode by over Rs 2.62 lakh cr - Economic Times
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Amazon asks India antitrust body to revoke Reliance-Future deal approval - reuters.com

NEW DELHI, Nov 28 (Reuters) - Amazon has asked India's antitrust regulator to revoke its approval for Future Retail's $3.4 billion sale of retail assets to Reliance, saying it was "illegally obtained", violating an order suspending the deal, a letter seen by Reuters shows.

The approval for the deal was a "nullity in the eyes of law" as an arbitrator's order was still in force, according to the letter sent by Amazon.com Inc (AMZN.O) to the Competition Commission of India (CCI) last week.

The battle between two of the world's richest men, Amazon founder Jeff Bezos and Reliance Industries Ltd (RELI.NS) boss Mukesh Ambani, marks a contest for preeminence in India’s booming, nearly trillion-dollar retail market.

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The winner in the fight for Future Retail Ltd (FRTL.NS), India’s second-largest retailer and Amazon’s estranged local partner, will get pole position in the race to meet the daily needs of more than a billion people.

The CCI, Amazon, Future Group and Reliance did not respond to requests for comment.

Future has said the arbitrator's suspension order was invalid but Indian courts have declined to overturn it.

If the regulator agrees with the previously unreported letter, it would be a major setback for oil-to-telecom conglomerate Reliance.

Amazon won an injunction against the deal from a Singapore arbitrator last year, alleging Future had violated contracts that prevented it from selling the assets to entities including Reliance.

But the CCI later cleared the deal.

Future misled the CCI and continued to seek approval for the deal, Amazon said in the letter dated Wednesday, calling the injunction a "brazen attempt to subvert the rule of law".

Amazon asked for a personal hearing from the CCI to make its case.

The letter comes as Amazon is also battling allegations that it misrepresented facts and concealed information while seeking antitrust clearance for a 2019 deal with Future Group.

Amazon has so far successfully used this deal's contracts to block Future's deal with Reliance.

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Reporting by Aditya Kalra and Abhirup Roy in New Delhi; Additional reporting by Zeba Siddiqui; Editing by William Mallard

Our Standards: The Thomson Reuters Trust Principles.

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Paytm says large merchants of competitors now switching to its platform - Moneycontrol.com

Representative image

Digital payments and financial services firm Paytm has claimed that large merchants of its competitors are now switching to its platform and it is seeing a big opportunity in capturing mid-level market and start-up community with its payment products, a top official said during earnings call of the company.

Paytm Chairman and Managing Director Vijay Shekhar Sharma said the company is one of the largest "acquiring side partners" for all payment networks be it Visa, Master and PCI, Amex, UPI etc and that is the reason large corporates including Flipkart and others are using Paytm payments solution.

ALSO READ: Paytm IPO: One 97 Communications Q2 revenue rise 64%

"Some of the recent trends that we are seeing that there are even the large merchants who are starting with Paytm… These are partners who were exclusive with a competitor for many, many years. They are just sort of switching lock, stock and barrel to Paytm and I think the next big opportunity for us here is to continue our penetration in the mid market and the startup community," Paytm Group CFO and President Madhur Deora said during the call on Saturday evening.

One 97 Communications, which operates under Paytm brand name, on Saturday reported widening of consolidated loss to about Rs 473 crore in the second quarter ended September 30, 2021 mainly on account of increase in payment processing charges.

The company had posted a loss of Rs 436.7 crore in the same quarter a year ago, according to an exchange filing. The consolidated total income of Paytm increased around 64 per cent to Rs 1,086.4 crore during the reported quarter from Rs 663.9 crore in the corresponding quarter of 2020-21.

"There is a growth in payments revenue and profitability. This is due to growth of payment volumes from non-UPI instruments. We are seeing recovery of high-margin commerce business, and growth of cloud business. We are seeing increase of financial services revenue driven by the huge ramp up in lending, "Deora said. He said that Paytm has large commerce business around ticketing, and that was heavily impacted due to Covid-19.

"That is starting to recover, and that's why we are seeing strong year-on-year growth as well as Q-o-Q growth. Our device merchant base has expended by 10 lakh in the last 12 months. We started this business a couple of years ago," Deora said. He said growth in Paytm payments device is strategically important because device merchants continue to show higher retention and higher average spends.

"Four per cent of our device merchants have already taken a loan through our platform, where this is a merchant loan programme… This business is accelerating," Deora said.

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Paytm says large merchants of competitors now switching to its platform - Moneycontrol.com
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FPIs net buyers in November; invest Rs 5,319 crore - Moneycontrol.com

As per depositories data, overseas investors put in a net Rs 1,400 crore into equities and Rs 3,919 crore into the debt segment between November 1-26. This translated into total net investment of Rs 5,319 crore.

PTI

November 28, 2021 / 01:22 PM IST

Representative image

Foreign portfolio investors (FPI) have pumped in a net sum of Rs 5,319 crore in Indian capital markets despite a massive correction seen in equities over the last fortnight. In October, they were net sellers to the tune of Rs 12,437 crore.

As per depositories data, overseas investors put in a net Rs 1,400 crore into equities and Rs 3,919 crore into the debt segment between November 1-26. This translated into total net investment of Rs 5,319 crore.

"Since FPIs have been holding large quantity of banking stocks, they have been major sellers in this segment. Sustained selling has made banking stocks attractive from the valuation perspective," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

He further noted that sharp correction in the market on 26th November has been mainly triggered by concerns arising out of the new strain of the virus spotted in South Africa, Botswana and Hong Kong.

"Despite recent correction, the markets continue to be at elevated levels and hence FPIs would have booked profits," said Himanshu Srivastava, Associate Director – Manager Research, Morningstar India.

Trend reversal on a weekly basis has become a norm with respect to FPI flows in the Indian debt markets, he added.

FPIs would be closely watching the spread of the new coronavirus variant and its possible impact on the growth globally.

Higher valuation is also a concern which may continue to trigger profit booking at regular intervals, he said.

"Future of FPI flows is expected to remain volatile given key events such as upcoming state elections, expectation of rise in interest rates and concerns a new Covid variant will prompt fresh mobility restrictions, hindering economic recovery," said Shrikant Chouhan, Head – Equity Research (Retail), Kotak Securities.

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Fuel likely to get cheaper in India as global oil prices dip - Hindustan Times

International oil prices are expected to fall further because of demand concerns due to Omicron, which has been named a “variant of concern” by the World Health Organisation and the European Centre for Disease Prevention and Control, the people said, requesting anonymity.

In April 2020, when international oil prices plunged below $20 a barrel following global lockdowns due to the Covid-19 pandemic, the producers’ cartel decided to control output. (REUTERS)

Updated on Nov 28, 2021 04:17 AM IST

ByRajeev Jayaswal

State-run oil marketers are under pressure to reduce pump prices of petrol and diesel as international oil prices plunged by over $10 a barrel on Friday, the biggest decline since April 2020, mainly on fears of new coronavirus variant Omicron, three people said.

Expect petrol and diesel price cuts soon, may be in one or two days, as international fuel rates have fallen sharply,” said one of them, who is a government official. Benchmark Brent crude on Friday plummeted 11.55% to $72.72 a barrel, while US crude West Texas Intermediate closed 13.1% lower at $68.15 per barrel on the last trading day of the week.

International oil prices are expected to fall further because of demand concerns due to Omicron, which has been named a “variant of concern” by the World Health Organisation and the European Centre for Disease Prevention and Control, the people said, requesting anonymity.

Besides Omnicron, a coordinated release of additional oil from strategic reserves of major consumers such as the US, China, India, Japan and South Korea have also affected the fuel market sentiment, the first person said. “OMCs (oil marketing companies) are watching the situation, and they may pass on the benefit to the consumer if prices are sustained at this level,” he said.

The companies are cautious as the Friday fall was “like a knee-jerk reaction from fears that the new Covid-19 variant” might “dampen economic growth and trigger another demand slump,” said a second person, who is an executive at a state-run fuel retailer.

He, however, downplayed the impact of nations raising supply by releasing oil from strategic reserves. “These announcements could not impact international prices much. However, renewed Covid-19 concerns have now brought about the desired objective,” he said.

Major oil consumers – the US, China, India, Japan and South Korea – for the first time reacted to the supply squeeze by producers’ cartel by announcing a coordinated release of additional oil from their respective reserves to cool down raging oil prices. India on November 23 joined the consumers’ group against artificial control of output by the cartel, the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+.

Indian fuel retailers are wary that the cartel, which is meeting on December 2, may cut supplies to check the price fall. “Thus, international crude oil prices may recover again if OPEC+ announces slower than expected production rollout coming up,” the second person said.

In April 2020, when international oil prices plunged below $20 a barrel following global lockdowns due to the Covid-19 pandemic, the producers’ cartel decided to control output. On April 12, OPEC-plus announced an unprecedented 9.7 million barrel a day output cut to check falling crude oil rates.

Despite a rise in demand, the grouping did not restore supplies, which led to a spike in international oil prices. In early November this year, crude prices touched $85 a barrel, forcing the central government to slash excise duty on petrol by ₹5 a litre and diesel by ₹10 a litre to provide some relief to consumers.

Although oil marketers vouch for changing fuel rates daily to reflect the international market dynamics, there has not been any rate change by them in the past 24 days. In Delhi, petrol has been stable at ₹103.97 per litre, and diesel at ₹86.67 since November 4, which central excise duty was slashed.

The three state-run marketers enjoy a virtual monopoly in retail fuel trade in India, with over 90% market share. The petroleum ministry and the three state-run oil firms – Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd – did not respond to emailed queries on the matter.

“Price reduction may not be as sharp as the decline in rates of Brent and WTI because only about 30% of crude OMCs purchase from the spot market, balance 70% is based on long-term contracts,” the first person said.

Fluctuations in international benchmarks such as Brent also impact long-term crude oil contracts as such term-contracts are also linked to benchmark rates, a third person said.

India is the third-largest consumer of imported oil as it imports about 85% crude it processes. The country imported 227 million tonnes of crude oil worth $101.4 billion in 2019-20, which was a Covid-free year.

“Although there were some gains last Friday (November 19) also, when average price of Indian basket fell below ₹6,000 per barrel, but OMCs wanted to wait as international oil market was volatile and a minor rate cut followed by immediate price hike was not desirable,” said the person mentioned in the third instance. The Indian basket represents average import rate in rupee terms, a factor of international crude price and exchange rate.

As international crude oil prices are likely to fall further in the future, India’s oil marketing companies are also required to pass on the benefit of reduced oil prices “on a day-to-day basis” to give relief to consumers and to facilitate high economic growth, said SC Sharma, a former officer on special duty at the erstwhile Planning Commission.

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Fuel likely to get cheaper in India as global oil prices dip - Hindustan Times
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