Stock Market Today: Top 10 things to know before the market opens today - Moneycontrol

Stock market news, Share Market

The market is expected to open in the red as trends in SGX Nifty indicate a negative opening for the broader index in India with a loss of 24 points.

The BSE Sensex fell more than 350 points to 55,566 after rising more than 2,100 points in previous three straight sessions, while the Nifty50 declined 77 points to 16,584.5 and formed Inside Bar or Doji kind of pattern on the daily charts.

As per the pivot charts, the key support level for the Nifty is placed at 16,507, followed by 16,430. If the index moves up, the key resistance levels to watch out for are 16,676 and 16,768.

Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:

US Markets

Wall Street's three major indexes closed lower on Tuesday, following a rally last week, as volatile oil markets kept soaring inflation in focus and investors reacted to hawkish comments from a Federal Reserve official.

The Dow Jones Industrial Average fell 222.84 points, or 0.67 percent, to 32,990.12, the S&P 500 lost 26.09 points, or 0.63 percent, to 4,132.15 and the Nasdaq Composite dropped 49.74 points, or 0.41 percent, to 12,081.39.

Asian Markets

Shares in Asia-Pacific largely rose in Wednesday morning trade, with investors watching for market reaction to the release of a private survey on Chinese factory activity for May. Mainland Chinese stocks edged higher, with the Shanghai Composite rising 0.1 percent, while the Shenzhen Component was up fractionally. Hong Kong’s Hang Seng index slipped 0.12 percent.

The Nikkei 225 in Japan gained 0.62 percent, while the Topix index advanced 1.16 percent. In Australia, the S&P/ASX 200 climbed 0.23 percent.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the broader index in India with a loss of 24 points. The Nifty futures were trading around 16,535 levels on the Singaporean exchange.

Oil prices open higher on EU Russian oil ban, end of Shanghai lockdown

Oil prices rose in early Asian trade on Wednesday after European Union leaders agreed to a partial and phased ban on Russian oil and China ended its Covid-19 lockdown in Shanghai.

Brent crude for August delivery was up 78 cents, or 0.7 percent, at $116.38 a barrel at 0037 GMT. The front-month contract for July delivery expired on Tuesday at $122.84 a barrel, up 1 percent. US West Texas Intermediate (WTI) crude rose 63 cents, or 0.6 percent, to $115.30 a barrel. Both benchmarks ended the month of May higher, marking the sixth straight month of rising prices.

Government lowers FY22 GDP growth estimate to 8.7% as growth slides to 4.1% in Q4

India's GDP is estimated to have grown by 8.7 percent in FY22 after growth slid to 4.1 percent in January-March quarter (Q4FY22), data released on May 31 by the Ministry of Statistics and Programme Implementation showed.

Growth likely slowed down in the first quarter of the calendar year 2022 because of the hit to activity from the Omicron variant-led third COVID-19 wave and the Russia-Ukraine war. If the GDP for FY22 is compared to that of FY20 - before the pandemic hit the economy - the growth rate is a mere 1.5 percent.

Centre’s FY22 fiscal deficit at 6.7%, undershoots revised target by 20 bps

Indian central government’s fiscal deficit for FY22 has come in at 6.7 percent of Gross Domestic Product (GDP), undershooting the revised target of 6.9 percent, data released on May 31 by the Controller General of Accounts showed.

The fiscal deficit for FY22 was Rs 15.87 lakh crore - Rs 4,552 crore lower than the revised target of Rs 15.91 lakh crore.

While the FY22 fiscal deficit has come in lower than expected, the Centre's finances for FY23 have already taken a turn for the worse following the cut in excise duty on fuel products and other measures announced earlier this month by the finance ministry to contain elevated inflation.

India core sector growth quickens to 8.4% in April

India's eight core sectors grew 8.4 percent in April, quickening from a revised 4.9 percent in March, the commerce ministry said on May 31. Output in six of the eight core sectors grew in April. These sectors were coal, electricity, refinery products, fertilizers, cement, and natural gas.

The growth rate of the eight sectors during April-March 2021-2022 was 10.4 percent as compared to the corresponding period of the last financial year.

Eurozone inflation hits record 8.1% amid rising energy costs

Inflation in the 19 countries that use the euro currency hit a record 8.1 percent in May amid surging energy costs prompted in part by Russia’s war in Ukraine, authorities said Tuesday. Annual inflation in the eurozone soared past the previous record of 7.4 percent reached in March and April, according to the latest data from European Union statistics agency Eurostat.

FII and DII data

Foreign institutional investors (FIIs) have net sold Rs 1,003.56 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 1,845.15 crore worth of shares on May 31, as per provisional data available on the NSE.

Gold hits near 2-week low as US bond yields, dollar firm

Gold prices hit a near two-week low on Wednesday, as rising Treasury yields and a strengthening US dollar continued to sap demand for greenback-priced bullion.

Spot gold was down 0.2 percent at $1,834.09 per ounce, as of 0044 GMT, its lowest since May 20. US gold futures fell 0.6 percent to $1,838.20.

With inputs from Reuters and other agencies

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Stock Market Today: Top 10 things to know before the market opens today - Moneycontrol
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Asia-Pacific stocks mixed as private survey shows China's factory activity contracted - CNBC

SINGAPORE — Shares in Asia-Pacific were mixed in Wednesday trade, with investors watching for market reaction to the release of a private survey on Chinese factory activity for May.

Mainland Chinese stocks were mixed, with the Shanghai Composite sitting below the flatline while the Shenzhen Component was up 0.419%. Hong Kong's Hang Seng index slipped 0.74%.

China’s Caixin/Markit manufacturing Purchasing Managers' Index for May came in at 48.1 on Wednesday, an improvement over April's reading of 46 but still remaining below the 50-level mark that separates expansion from contraction.

We're in a relatively calm period, there has been a risk-on environment that's been triggered by some degree of opening up in China.

Manishi Raychaudhuri

head of Asia-Pacific equity research, BNP Paribas

China's official manufacturing PMI for May, released Tuesday, came in at 49.6 — an improvement over April's reading of 47.4. The May reading was above the 48.6 level expected from a Reuters poll.

PMI readings are sequential and represent month-on-month expansion or contraction.

The Nikkei 225 in Japan gained 0.61% while the Topix index advanced 1.19%.

In Australia, the S&P/ASX 200 climbed 0.11%. Australia's gross domestic product grew 0.8% quarter-on-quarterly in seasonally adjusted chain volume terms during the first quarter, data from the country's Bureau of Statistics showed Wednesday. That was above expectations in a Reuters poll for a 0.5% gain.

MSCI's broadest index of Asia-Pacific shares outside Japan traded 0.41% lower.

"We're in a relatively calm period, there has been a risk-on environment that's been triggered by some degree of opening up in China," Manishi Raychaudhuri, head of Asia-Pacific equity research at BNP Paribas, told CNBC's "Street Signs Asia" on Wednesday. "There has also been commentary, a narrative that the risk perception is way too high among institutional investors."

"That said, we must also keep in mind that we're now about to enter a period of quite severe monetary policy tightening," he added. "We have to brace for the impact at least, you know, in the next one quarter or so."

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Markets in South Korea are closed on Wednesday for a holiday.

Overnight on Wall Street, the S&P 500 shed 0.63% to 4,132.15. The Dow Jones Industrial Average dropped 222.84 points, or 0.67%, to 32,990.12. The tech-heavy Nasdaq Composite dipped 0.41% to 12,081.39.

Currencies and oil

Oil prices were higher in the afternoon of Asia trading hours, with international benchmark Brent crude futures up 0.38% to $116.04 per barrel. U.S. crude futures gained 0.4% to $115.13 per barrel.

Those gains came on the back of a Monday agreement by the European Union for a ban on most Russian oil imports by the end of the year, along with investor optimism over a reopening in the major Chinese city of Shanghai following weeks of Covid-related lockdowns.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 101.922 after a recent decline from above 102.

The Japanese yen traded at 129.21 per dollar, weaker than levels below 127.8 seen against the greenback earlier in the week. The Australian dollar was at $0.7177, still stronger than levels below $0.708 seen last week.

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Asia-Pacific stocks mixed as private survey shows China's factory activity contracted - CNBC
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India Q4 GDP LIVE | Don't see prospect of recession, sequential growth low due to Omicron wave, says CEA - Moneycontrol

May 31, 2022 / 06:48 PM IST

India GDP Growth LIVE | According to the chief economic adviser, a robust response the is expected from private sector in second half when global risks dissipate. Currently, global monetary tightening and risk of commodity prices going up pose challenges to economy, he added.

Managing the troika of growth, inflation, fiscal balance is a challenge for all economies, Nageswaran noted.

May 31, 2022 / 06:46 PM IST

India Q4 GDP LIVE | Interest rates becoming normal need not be anti-growth move, the CEA said, adding that the central bank’s confidence to raise rates signal that "recovery is taking root". 

The financial sector in far better health than before, and external sector has also improved, he further noted.

May 31, 2022 / 06:44 PM IST

India Q4 GDP LIVE | Despite the sequential decline in Q4 growth, Chief Economic Adviser V Anantha Nageswaran said he "does not see a prospect of recession in India" in FY23. There is considerable momentum in economic activity as witnessed by GST numbers in April, the CEA added.

May 31, 2022 / 06:39 PM IST

India Q4 GDP LIVE | Sequential growth was low due to Omicron wave in January, Chief Economic Adviser V Anantha Nageswaran said. The economy had grown by 5.4 percent in Q3 FY22, as compared to 4.1 percent in Q4.

May 31, 2022 / 06:35 PM IST

India Q4 GDP LIVE | Stagflationary risks for India quite low compared to the rest of the world, said Chief Economic Advisor V Anantha Nageswaran. There is considerable momentum in economic activity as witnessed by GST numbers in April, he added.

May 31, 2022 / 06:28 PM IST

India Q4 GDP LIVE | The gross fixed cap formation growth for FY22 came in at 15.8 percent, as against a contraction of 10.4 percent in FY21.

May 31, 2022 / 06:12 PM IST

India Q4 GDP LIVE | Services sector grew at 8.4 percent in the March 2022 quarter, as compared to a contraction of 7.8 percent in the year-ago period. Industries grew at 10.3 percent during the quarter, as against a contraction of 3.3 percent in the corresponding period last year.

May 31, 2022 / 06:08 PM IST

India Q4 GDP LIVE | "GDP at Constant (2011-12) Prices in Q4 2021-22 is estimated at ₹ 40.78 lakh crore, as against ₹ 39.18 lakh crore in Q4 2020-21, showing a growth of 4.1 percent," the Ministry of Statistics & Programme Implementation said.

May 31, 2022 / 06:05 PM IST

India Q4 GDP LIVE | Nominal GDP or GDP at Current Prices in the year 2021-22 is estimated to attain a level of Rs 236.65 lakh crore, as against Rs 198.01 lakh crore in 2020-21, showing a growth rate of 19.5 percent.

May 31, 2022 / 06:03 PM IST

 India Q4 GDP LIVE | Real GDP at constant (2011-12) prices in the year 2021-22 is estimated to attain a level of Rs 147.36 lakh crore, as against the first revised estimate of Rs 135.58 lakh crore for the year 2020-21, released on January 31, 2022, the Ministry of Statistics & Programme Implementation said.

May 31, 2022 / 05:55 PM IST

India Q4 GDP LIVE | The GDP growth rate estimate for FY22, at 8.7%, will mark India's highest real growth in at least 17 years for which comparable data is available. The country witnessed a negative growth of 6.6% in FY21 due to the onset of COVID-19 pandemic, which had derailed most sectors of the economy.

May 31, 2022 / 05:49 PM IST

India Q4 GDP LIVE | Q4FY22 Growth In A Snapshot 

FY22 GDP                             8.7%     

Agriculture                             3%

Mining                                   11.5%

Manufacturing                       9.9%

Electricity, Gas                      7.5%

Construction                         11.5%

Trade & Hotels                      11.1%

Finance, Realty                     4.2%

Public Admin                         12.6%

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India Q4 GDP LIVE | Don't see prospect of recession, sequential growth low due to Omicron wave, says CEA - Moneycontrol
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Bitcoin, Cardano on the Rise: Check Out Today's Profitable Cryptocurrency Prices - Analytics Insight

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1. Bitcoin, Cardano on the Rise: Check Out Today's Profitable Cryptocurrency Prices  Analytics Insight
2. Cryptocurrency Prices Today May 31: Bitcoin, Ether rise; Cardano biggest gainer  Moneycontrol
3. Bitcoin price rises over $30,000 after record loss | Latest cryptocurrency price  India Today
4. Bitcoin bull run expected as stock markets rally? Here’s what experts say  The Financial Express
5. Top cryptocurrency news on May 30: The biggest moves in crypto prices, policies and more  Moneycontrol
6. View Full coverage on Google News

Bitcoin, Cardano on the Rise: Check Out Today's Profitable Cryptocurrency Prices - Analytics Insight
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Property Prices In India Expected To See Biggest Rise In Five Years, Rents Likely To Go Up Too | Mint - Mint

Property prices in India are expected to increase 7.5% on a pan-India basis this year, the fastest growth in five years, according to a Reuters poll of property analysts. Average house prices were forecast to rise 6% next year and in 2024. The poll of 13 property analysts were held during May11-27. In a March poll, the analysts had expected, an increase of 5.0% for this year.

Reflecting the improved sentiment, the BSE index of real estate companies are up 21% in past one year, outperforming 15% rise in broader Sensex.

According to the Reuters poll, prices in Mumbai and Delhi, including its surrounding National Capital Region, is expected to rise between 4% and 5% this year and next. Prices in Bengaluru and Chennai, are forecast to rise 5.5%-6.5% over the course of the next two years.

Improving housing demand and increase in building material cost are some of the key factors for housing price rise, according to analysts. Analysts however warned that higher interest rates could weigh on affordability, especially for first-time buyers.

Earlier, this month, Reserve Bank of India increased the benchmark repo rate - the rate at which it lends to banks - by 40 basis points to 4.40% in its first rate hike in nearly four years. And economists expect the central bank to frontload more aggressive interest rate hikes in its effort to tame high inflation.

“Indian housing sector has vastly benefited by the low interest rates in the last two years. This policy rate hike will translate into higher EMIs for home loans. However, we believe that improved homebuyer attitude, preference for owning a house and strong wage growth will continue to support the housing market. The monetary policy stance is still accommodative and with the receding pandemic and economic growth, we expect that consumer demand will remain buoyant in the near term," said Gulam Zia, (Senior Executive Director- Knight Frank India).

If interest rates go up rather sharply, analysts warn that many would-be first-time homeowners would prefer to rent instead. However, rents too are expected to become more expensive, according to a majority of respondents in the Reuters poll.

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Property Prices In India Expected To See Biggest Rise In Five Years, Rents Likely To Go Up Too | Mint - Mint
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Indian govt official reveals a crypto consultation paper is 'ready' - Finbold - Finance in Bold

During the course of the last year, the process of regulating the use of cryptocurrencies in India has been a continuous affair; nevertheless, recent news emanating from an official source has suggested that some clear movement has been made.

Ajay Seth, India’s economic affairs secretary, told reporters on Monday, May 30 that inflation in the country should begin to drop in the next months and that the government is ready with its consultation paper on cryptocurrencies, according to a report by Reuters.

Seth stated that a worldwide agreement on cryptocurrencies was necessary and that India would examine the legislation of other nations before choosing how it would regulate. 

Although the government promised in this year’s annual budget that it would impose a tax rate of 30% on profits produced via investments in cryptocurrencies, the nation has not yet given the measure the stature of a legally binding law.

Indian central bank warns about investing in crypto

Notably, just last week after the collapse of Terra (LUNA) and the stablecoin TerraUSD (UST), India’s central bank, the Reserve Bank of India (RBI), has issued a warning to its citizens against investing in the crypto market.

The Governor of the RBI, Shaktikanta Das, highlighted the recent decline in the value of the cryptocurrency market as well as the need for a regulatory framework around digital assets.

In the past, officials from the Ministry of Finance have been talking with the International Monetary Fund (IMF) and the World Bank on the issue of cryptocurrency law. 

Nirmala Sitharaman, India’s Minister of Finance, said in April that the decision about whether or not to regulate cryptocurrencies would not be rushed. She emphasized that the government would take its time making the decision.

Finally, for the time being, there is now a 30%  tax rate on cryptocurrency earnings in India, and a tax deduction at source (TDS) of 1% will begin to be applied in July.

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Indian govt official reveals a crypto consultation paper is 'ready' - Finbold - Finance in Bold
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Sensex Soars 1,100 pts, Nifty Above 16,600: Bulls Roar on D-Street; Why Market is Rising - News18

Key benchmark indices zoomed nearly 2 per cent in morning deals on Monday, riding on a firm global momentum. The benchmark S&P BSE Sensex rallied over 950 points to quote at 55,863, while the Nifty50 advanced 284 points to 16,636. Indian stocks saw their market value rising Rs 4.4 lakh crore as investors on the Dalal Street tracked Friday’s surge in US stocks amid hopes of inflation peaking soon.

According to analysts, domestic investors took inspiration from China easing Covid curbs and the US Fed’s minutes from the early May meeting released on Wednesday which drove speculation over a potential pause in interest rate hikes later this year after further monetary action in June and July. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “The market is set for a near-term rally. The sharp upswing in Nasdaq & S&P 500 late last week indicates near-term trend reversal.”

Here are factors fueling the stock market rally today- 

Deepak Jasani, head of retail research, HDFC Securities, “Indian markets rose for the third consecutive session on May 30 following positive global cues due to China easing Covid curbs and sharp Friday gains on the wall street. Some local factors helping the mood include the early arrival of monsoon in Kerala raising hopes of a favourable impact on Agri crops. Stocks were anyway due for a bounce after continuously underperforming since early April 2022. 16800-16850 level on the Nifty could be tough to breach in the near term.”

1) US Markets Rally

US stocks enjoyed a broad-based rally on Friday, while the yield on benchmark US Treasuries fell after data showed that U.S. consumer spending rose in April and the uptick in inflation slowed, two signs the world’s largest economy could be on track to grow this quarter. The Dow Jones Industrial Average rose 575.77 points, or 1.76 per cent, to 33,212.96, the S&P 500 gained 100.4 points, or 2.47 per cent, to 4,158.24 and the Nasdaq Composite added 390.48 points, or 3.33 per cent, to 12,131.13.

2) Asian Equities Remain Higher

Asian equities traded higher after China eased Covid restrictions in Shanghai and Bejing and offered a slew of economic support measures. Shanghai will loosen Covid test requirements for people who enter public places and Beijing will loosen mobility curbs in several districts from Sunday after authorities said its outbreak is under control. Nikkei rose two percent, Hang Seng gained 1.9 per cent, CSI 300 0.5 per cent, Taiwan and Kospi were up 1.7 and 1.4 per cent respectively.

3) China Relaxes Covid Curbs

Asian equities traded higher after China eased Covid restrictions in Shanghai and Bejing and offered a slew of economic support measures. Shanghai will loosen Covid test requirements for people who enter public places and Beijing will loosen mobility curbs in several districts from Sunday after authorities said its outbreak is under control. Nikkei rose two percent, Hang Seng gained 1.9 per cent, CSI 300 0.5 per cent, Taiwan and Kospi were up 1.7 and 1.4 per cent respectively.

4) Buying in Heavyweights

Five stocks namely the HDFC duo, IT majors Infosys and TCS and Reliance Industries alone contributed over 550 points positively to Sensex rise. Bargain hunting and a recent fall in rupee is boosting IT shares that generate a major chunk of their revenues from exports.

Investors also await GDP data for the March quarter which is due for release on May 31. Analysts have a wide range of growth forecasts from 2.7 to 4.5 per cent for the quarter. State Bank of India expects growth at 2.7 per cent for the quarter

6) Monsoons Arrive Early

Southwest monsoon has set in over Kerala on Sunday, three days ahead of its normal onset date of June 1, the India Meteorological Department (IMD) said. This, analysts believe, is a good news for the India that is battling soaring inflation. Timely and normal rains can boost production for monsoon-sown crops such as rice, soya beans and pulses etc.

7) Nifty Technical Outlook

Anand James of Geojit Financial Sevices said: “The 16400 wall that had turned down at least three bold upside attempts in the last 30 days, still stands firm, but will be facing one of the strongest challenges shortly, as the event risks in the coming fortnight hold an element of positive surprise as well. The argument that Nifty’s bounce is off just the 23 per cent fibo of the 2020 rally, loses its voice when compared with S&P500’s turn higher from the 62 per cent fibo, bouncing over 7 per cent, and with more room for upside before mean reversion challenges surface. This encourages us to stick with a 16,750 move initiated last week, even though the default approach would be to expect rejection trades at 16,415. The downside risk level identified as 16,084 last Friday will be moved higher to 16186/51region. In fact, there is no doubt that Nifty is poised for a gigantic move shortly. Being at the upper extremity of a month-old parallel consolidation range, downsides have a 1,400 point potential, as opposed to 700 point potential for upsides, as a measure of the range and the side that Nifty would be coming out of. That said, the fortnight ahead will be one for the risk takers.”

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Sensex Soars 1,100 pts, Nifty Above 16,600: Bulls Roar on D-Street; Why Market is Rising - News18
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Bank FD: PNB vs ICICI Bank vs HDFC Bank; Check Detailed Comparison of Latest Interest Rates - News18

As the Reserve Bank of India (RBI) is entering a tight monetary policy regime to control high inflation and raising its key policy rates, banks are also following the suit. Several lenders, including HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Punjab National Bank, have recently increased their interest rates for both deposits as well as loans. Here’s the comparison of the current fixed deposit (FD) interest rates offered by three large banks HDFC Bank, ICICI Bank and Punjab National Bank (PNB) on deposits below Rs 2 crore:
Punjab National Bank’s FD Interest Rate (On Deposits Below Rs 2 Crore):

7 days to 14 days: For General Public – 3.00 per cent; For Senior Citizens – 3.50 per cent

15 days to 29 days: For General Public – 3.00 per cent; For Senior Citizens – 3.50 per cent

30 days to 45 days: For General Public – 3.00 per cent; For Senior Citizens – 3.50 per cent

46 days to 90 days: For General Public – 3.25 per cent; For Senior Citizens – 3.75 per cent

91 days to 179 days: For General Public – 4.00 per cent; For Senior Citizens – 4.50 per cent

180 days to 270 days: For General Public – 4.50 per cent; For Senior Citizens – 5.00 per cent

271 days to less than 1 year: For General Public – 4.50 per cent; For Senior Citizens – 5.00 per cent

1 year: For General Public – 5.10 per cent; For Senior Citizens – 5.60 per cent

Above 1 year to 2 years: For General Public – 5.10 per cent; For Senior Citizens – 5.60 per cent

Above 2 Years to 3 Years: For General Public – 5.10 per cent; For Senior Citizens – 5.60 per cent

Above 3 years to 5 years: For General Public – 5.25 per cent; For Senior Citizens – 5.75 per cent

Above 5 years to 10 years: For General Public – 5.25 per cent; For Senior Citizens – 5.75 per cent.
ICICI Bank’s FD Interest Rate (On Deposits Below Rs 2 Crore):

7 days to 14 days: For General Public – 2.50 per cent; For Senior Citizens – 3.00 per cent

15 days to 29 days: For General Public – 2.50 per cent; For Senior Citizens – 3.00 per cent

30 days to 45 days: For General Public – 3.00 per cent; For Senior Citizens – 3.50 per cent

46 days to 60 days: For General Public – 3.00 per cent; For Senior Citizens – 3.50 per cent

61 days to 90 days: For General Public – 3.00 per cent; For Senior Citizens – 3.50 per cent

91 days to 184 days: For General Public – 3.50 per cent; For Senior Citizens – 4.00 per cent

185 days to 289 days: For General Public – 4.40 per cent; For Senior Citizens – 4.90 per cent

290 days to less than a year: For General Public – 4.50 per cent; For Senior Citizens – 5.00 per cent

1 year to 2 years: For General Public – 5.10 per cent; For Senior Citizens – 5.60 per cent

2 Years 1 Day to 3 Years: For General Public – 5.40 per cent; For Senior Citizens – 5.90 per cent

3 years 1 day to 5 years: For General Public – 5.60 per cent; For Senior Citizens – 6.10 per cent

5 years 1 day to 10 years: For General Public – 5.75 per cent; For Senior Citizens – 6.50 per cent.
HDFC Bank’s FD Interest Rate (On Deposits Below Rs 2 Crore):

7 days to 14 days: For General Public – 2.50 per cent; For Senior Citizens – 3.00 per cent

15 days to 29 days: For General Public – 2.50 per cent; For Senior Citizens – 3.00 per cent

30 days to 45 days: For General Public – 3.00 per cent; For Senior Citizens – 3.50 per cent

46 days to 60 days: For General Public – 3.00 per cent; For Senior Citizens – 3.50 per cent

61 days to 90 days: For General Public – 3.00 per cent; For Senior Citizens – 3.50 per cent

91 days to 120 days: For General Public – 3.50 per cent; For Senior Citizens – 4.00 per cent

6 months 1 days to 9 months: For General Public – 4.40 per cent; For Senior Citizens – 4.90 per cent

9 months 1 day to less than a year: For General Public – 4.45 per cent; For Senior Citizens – 5.00 per cent

1 year: For General Public – 5.10 per cent; For Senior Citizens – 5.60 per cent

1 year 1 day to 2 years: For General Public – 5.10 per cent; For Senior Citizens – 5.60 per cent

2 years 1 day to 3 years: For General Public – 5.40 per cent; For Senior Citizens – 5.90 per cent

3 years 1 day to 5 years: For General Public – 5.60 per cent; For Senior Citizens – 6.10 per cent

5 years 1 day to 10 years: For General Public – 5.75 per cent; For Senior Citizens – 6.50 per cent.

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US surpasses China as India's biggest trading partner in FY22 at $119.42 bn - Times of India

NEW DELHI: The US surpassed China to become India's top trading partner in 2021-22, reflecting strengthening economic ties between the two countries.
According to the data of the commerce ministry, in 2021-22, the bilateral trade between the US and India stood at $119.42 billion as against $80.51 billion in 2020-21.
Exports to the US increased to $76.11 billion in 2021-22 from $51.62 billion in previous fiscal year, while imports rose to $43.31 billion as compared to about $29 billion in 2020-21.
During 2021-22, India's two-way commerce with China aggregated at $115.42 billion as compared to $86.4 billion in 2020-21, the data showed.
Exports to China marginally increased to $21.25 billion last fiscal year from $21.18 billion in 2020-21, while imports jumped to $94.16 billion from about $65.21 billion in 2020-21. Trade gap rose to $72.91 billion in 2021-22 from $44 billion in previous fiscal year.
Trade experts believe that the trend of increasing bilateral trade with the US will continue in the coming years also as New Delhi and Washington are engaged in further strengthening the economic ties.
Federation of Indian Export Organisations Vice President Khalid Khan said India is emerging as a trusted trading partner and global firms are reducing their dependence only on China for their supplies and are diversifying business into other countries like India.
"In the coming years, the bilateral trade between India and the US will continue to grow. India has joined a US-led initiative to set up an Indo-Pacific Economic Framework (IPEF) and this move would help boost economic ties further," Khan said.
Rakesh Mohan Joshi, Director of the Indian Institute of Plantation Management (IIPM), Bangalore, too said that India is home to 1.39 billion people with the world's third largest consumer market and the fastest growing market economy with unparalleled demographic dividend provides enormous opportunities for the US and Indian firms for technology transfer, manufacturing, trade and investment.
"Major export items from India to the US include petroleum polished diamonds, pharmaceutical products, jewellery, light oils and petroleum, frozen shrimp, made ups etc. whereas major imports from the US include petroleum, rough diamonds, liquified natural gas, gold, coal, waste and scrap, almonds etc," Joshi said.
America is one of the few countries with which India has a trade surplus.
In 2021-22, India had a trade surplus of $32.8 billion with the US.
The data showed that China was India's top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner.
In 2021-22, the UAE with $72.9 billion, was the third largest trading partner of India. It was followed by Saudi Arabia ($42,85 billion), Iraq ($34.33 billion) and Singapore ($30 billion).

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US surpasses China as India's biggest trading partner in FY22 at $119.42 bn - Times of India
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Coal India To Import Fuel For First Time In Years Amid Concerns Of Power Cuts: Report - ABP Live

New Delhi: The government-owned Coal India will import coal for use by utilities amid looming power outages because of shortages, as per the news agency Reuters report. A letter by the Power Ministry dated May 28 accessed by the news agency shows that the world's largest coal miner for the first time since 2015 would import the fuel in an attempt to stock up and avoid a repeat of April.

The move highlights the efforts by state and central officials to avoid a situation in April when the country faced its worst power cuts in more than six years.

"Coal India would import coal for blending on government-to-government (G2G) basis and supply ... to thermal power plants of state generators and independent power producers (IPPs)," said the Power Ministry.

ALSO READ: Good News For UP Tipplers! Govt Slashes Rates Of Select Liquor Brands At Par With Delhi

The letter has been sent across to all utilities, and top central and state energy officials including the coal secretary and the Chairman of Coal India.

India battling coal shortage

India may face a wider coal shortage during the third quarter of 2022 as a result of higher electricity demand raising concerns of widespread power outages.

The decision was taken after nearly all states suggested that multiple coal import tenders by states would lead to confusion and sought centralised procurement through Coal India, according to the Power Ministry letter.

Recently, India intensified measures to ensure that utilities increase imports to blend with local coal and warned of cuts to the supply of domestically mined coal if power plants did not build up coal inventories through imports.

However, the Power Ministry on Saturday asked states to suspend tenders that are "under process".

"The tenders under process by state generators and IPPs for importing coal for blending may be kept in abeyance to await the price discovery by Coal India through G2G route, so as to procure coal at least possible rates," the ministry said.

Coal inventories at power plants have declined by about 13 per cent since April to the lowest pre-summer levels in years.

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7 airports with it, Adanis look to buy stake in key aircraft back-end company - The Indian Express

The Adani Group, which manages seven airports in the country, is looking to invest in India’s largest independent aircraft maintenance, repair and overhaul (MRO) organisation in a bid to strengthen its civil aviation portfolio.

The group is exploring an agreement with shareholders of Mumbai-based Air Works Group to acquire a stake in the 71-year-old aviation firm, sources told The Sunday Express.

Air Works services IndiGo, GoAir and Vistara, in addition to over a dozen foreign airlines including Lufthansa, Turkish Airlines, FlyDubai, Etihad, and Virgin Atlantic. It also counts the Indian Navy among its customers and, earlier this month, partnered with Boeing for heavy maintenance checks on three Indian Navy P-8I long-range maritime patrol aircraft.

“The Adani Group has started its due diligence into Air Works Group,” a source said adding that talks were at an early stage.

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Air Works Group, with a pan-India presence across 27 cities, competes with 50 standalone Indian MRO players including Government-run AI Engineering Services Ltd and GMR Aero Technic.

Billionaire Gautam Adani-run Adani Group operates the country’s second largest airport in Mumbai, in addition to airports in Ahmedabad, Lucknow, Thiruvananthapuram, Jaipur, Guwahati and Mangaluru. The company also offers MRO services at its airports in partnership with Mumbai-based Indamer Aviation Pvt Ltd.

“The proposed deal with Air Works is in line with the Adani Group’s plan to leverage opportunities arising from the growing Indian civil aviation market and the increasing need for MRO services,” another source, aware of the discussions, told The Indian Express.

Queries sent to the Adani Group and Air Works Group did not elicit a response.

“Adanis have been keen on supplementing their airports portfolio with MRO for some time now. They have an arrangement with Indamer Aviation but that hasn’t really taken off. They have even made some appointments last year to decide on the company’s broader MRO strategy,” said a top executive at an airport development company.

Explained

Riding the aviation boom

Almost 90% of India’s MRO (aircraft maintenance, repair and overhaul) requirements are currently met through imports. In a report last year, Deloitte estimated that riding the aviation boom, Indian MRO industry’s size is expected to increase from $1.7 billion in 2021 to $4 billion by 2031, at a compound annual growth rate (CAGR) of 8.9% against the expected global CAGR of 5.6%.

In its annual report for 2020-21, Adani Enterprises noted that the outlook for the company is “underpinned by the fact that India is expected to emerge as the third largest aviation market catalysed by the government’s decision to popularise the public-private partnership model, graduate India into an MRO hub, flexible use of air space and matured regulatory framework with assured returns”.

Experts have pointed out that almost 90% of MRO requirements in India are currently being met through imports so the indigenous MRO sector carries a significant growth potential.

In a report last November, Deloitte noted that the Indian MRO industry’s size is expected to increase from $1.7 billion in 2021 to $4 billion by 2031, at a compound annual growth rate (CAGR) of 8.9% against the expected global CAGR of 5.6%.

“With more than 1,000 aircraft currently on order, the country is likely to become the third largest buyer of commercial passenger planes in the world, only after the US and China. This translates into demand for 200–300 major maintenance checks annually. Replacing aging aircraft in the fleets of several airlines also creates scope for MRO to meet redelivery contracts. India is also poised to become a large defence aircraft market, propelling demand for military MRO capabilities as well,” it added.

In March 2020, the GST rate on domestic MRO services was brought down from 18% to 5% with full input-tax credit — a move that, the MRO industry said, was a huge relief. Because of the cost disadvantage in India due to higher taxes, domestic airlines used to send their aircraft to countries such as Sri Lanka, China, Singapore and the UAE to have them serviced.

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Air Works reported a net loss of Rs 22.64 crore in the year ending March 2021 on a topline of Rs 253.57 crore. In the year ending March 2020, the company had a total income of Rs 340.13 crore, and a net profit of Rs 31.88 crore.

According to filings with the Ministry of Corporate Affairs, the largest shareholder in Air Works Group as of March 31, 2021 was GTI Capital Group, an India-focused investment fund, with 25.75% share. This was followed by a 23.24% stake held by Punj Lloyd Aviation, a subsidiary of the now bankrupt Punj Lloyd Ltd. Around 15% of the company is currently held by the Menon family, which founded Air Works in 1951. Mails sent to GTI Capital Group and Punj Lloyd went unanswered.

In November 2021, Air Works amended its memorandum of association to increase its authorised share capital and create a new class of Series B equity shares — in what is a tell-tale sign of the company being in the market to raise fresh funds.

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ONGC Q4 Results | Net profit jumps 31% on high oil, gas prices - Moneycontrol

For the full fiscal (April 2021 to March 2022), ONGC posted a record net profit of Rs 40,305.74 crore, up from Rs 11,246.44 crore in the previous financial year.

PTI

May 28, 2022 / 10:42 PM IST

For the full fiscal (April 2021 to March 2022), ONGC posted a record net profit of Rs 40,305.74 crore, up from Rs 11,246.44 crore in the previous financial year. (Representative Image)

State-owned Oil and Natural Gas Corporation (ONGC) on Saturday reported a 31.5 percent jump in its March quarter net profit as it got the best ever price for crude oil it produces and sells.

Standalone net profit of Rs 8,859.54 crore, or Rs 7.04 per share, in January-March compared with Rs 6,733.97 crore, or Rs 5.35 a share, in the same period a year back, according to the company's regulatory filing.

Revenue from operations rose to Rs 34,497.24 crore in the fourth quarter of 2021-22 fiscal from Rs 21,188.91 crore in January-March 2021. For the full fiscal (April 2021 to March 2022), ONGC posted a record net profit of Rs 40,305.74 crore, up from Rs 11,246.44 crore in the previous financial year.

 

#Energy#Maharatna#ONGC Posts #highest ever net #profit of
₹40,306 crore, up 258%, Q4 net profit 8,860 crore, highest ever total #dividend 210%
Total #dividend ₹10.50 per share for FY’22. #YouAreEnergy@PetroleumMin@HardeepSPuri@Rameswar_Telipic.twitter.com/DVbL8Da136

— Oil and Natural Gas Corporation Limited (ONGC) (@ONGC_) May 28, 2022

This after international energy prices surged from late 2021 and spiked after Russia invaded Ukraine in February. ONGC gets international prices for crude oil it produces and so it benefited from the surge in energy prices. ONGC gets international rates as the downstream fuel retailers too price petrol, diesel and other petroleum products at global rates.

Consolidated net profit, after including those earned by its subsidiaries like HPCL and ONGC Videsh Ltd, soared to Rs 12,061.44 crore in March quarter and Rs 49,294.06 crore in the full fiscal 2021-22. This compared to Rs 10,963.04 crore in January-March 2021 and Rs 21,360.25 crore in 2020-21.

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ONGC Q4 Results | Net profit jumps 31% on high oil, gas prices - Moneycontrol
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United Spirits to sell 32 popular brands to Inbrew for Rs 820 crore - Moneycontrol

Diageo-controlled liquor maker United Spirits Ltd (USL) has approved the sale and franchising of selected brands to Singapore headquartered Inbrew Beverages for a total cash consideration of Rs 820 crore.

"USL and Inbrew have executed definitive agreements for the sale of the entire business undertaking associated with 32 brands, including iconic brands Haywards, Old Tavern, White-Mischief, Honey Bee, Green Label and Romanov, for a total cash consideration of approximately INR 8,200 million, subject to customary adjustments. The sale portfolio covers the entire business undertaking associated with the 32 brands set out below, including the related contracts, permits, intellectual property rights, associated employees, and a manufacturing facility," USL said in a regulatory filing on May 27.

In addition to the above, USL and Inbrew have entered into a 5-year franchise arrangement for 11 other brands, including Bagpiper.

Moneycontrol first reported on this development on April 12. (Read here)

"USL has also granted Inbrew a right, subject to certain conditions, to convert the fixed term franchise arrangement into one with perpetual rights to use and/or a call option to acquire the brands at a pre-agreed consideration. Certain ancillary agreements, including transitional services arrangements, in relation to the sale of the business undertaking and the franchise and option agreements have been approved to be executed between USL and Inbrew." the filing said.

The company expects to complete the transaction by the end of the quarter ending 30 September 2022.

Hina Nagarajan, Managing Director & CEO of USL, commented: "The transaction reflects the continued evolution of the management of the Popular portfolio since 2016, when the company moved to a franchise model in many states, to enable a sharpened focus on ‘Prestige & Above’. This is a significant move to reshape our portfolio in service of our publicly stated mission to deliver sustained double digit profitable top-line growth."

"The acquisition of these iconic brands provides Inbrew with a unique platform to extend its ambition of becoming India’s trusted household beverage company. These brands have delighted consumers over generations, and we are excited at the prospect of strengthening this legacy. Inbrew will revitalise these brands through expanded distribution, innovation and investments. After the acquisition of Molson Coors’ beer business last year, we will now participate in the mainstream spirits category, making Inbrew India’s diverse AlcoBev player," said Ravi Deol, Chairman of Inbrew.

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India seen facing wider coal shortages, worsening power outage risks - Deccan Herald

India is expected to face a wider coal shortage during the quarter ending September over expectations of higher power demand, an internal power ministry presentation seen by Reuters showed, worsening risks of widespread power outages.

The energy-hungry nation expects local coal supply to fall 42.5 million tonnes short of demand in the September quarter, 15% higher than previously projected, due to higher growth in power demand and lower output from some mines.

The grim forecast shows the extent of the fuel shortage in India, at a time when annual power demand is seen growing at the fastest rate in at least 38 years and global coal prices are trading at near-record levels due to a supply crunch resulting from the Russia-Ukraine crisis.

Read | Why is India facing its worst power crisis in over six years?

India has stepped up pressure on utilities to increase imports in recent days, warning of cuts to supply of domestically mined coal if power plants do not build up coal inventories through imports.

However, one of the slides in the presentation showed that most states had yet to award contracts to import coal and that Indian utilities would run out of coal by July if no coal was imported.

Only one state had awarded a contract to import coal as of end-April, a power ministry import status report reviewed by Reuters showed.

India expects domestic coal supply of 154.7 million tonnes, 42.5 million tonnes short of the projected requirement of 197.3 million tonnes in the September quarter, the presentation showed. It previously expected a shortage of 37 million tonnes.

The presentation was made on Friday in a virtual meeting in which the central coal and power ministers were present, with top energy officials from the federal government and the states in attendance, according to two government officials familiar with the matter.

Also Read: Anatomy of a power crisis

The Centre did not immediately respond to a request seeking comment. Details on the presentation have not been previously reported.

Coal inventories at power plants have declined by about 13% since April, which translates to eight days of coal requirement, the lowest level at this time of the year in at least nine years. The higher coal demand could also stifle efforts to build power plant inventories.

India now expects the demand for coal from utilities to be 784.6 million tonnes for the year ending March 2023, the presentation showed, 3.3% higher than projected earlier.

The projected annual coal shortage is now 49.3 million tonnes, nearly three times the 17.7 million tonnes projected earlier, the presentation showed.

India reconciled its coal demand projections after higher-than-expected power demand growth in April, when electricity use hit a record high due to soaring temperatures.

Many states on Friday called for the government-run Coal India to import coal in bulk and distribute it among the states, the officials said.

States cited high global prices and supply challenges to seek aggregated imports, the officials said, adding that the coal minister had told states the demand would be considered.

Higher imports could put further pressure on state-government-owned power distribution companies, which are already saddled with debt and owe billions of dollars to generators as they have historically absorbed higher input costs to keep tariffs steady.

Coal India did not immediately respond to a request seeking comment. The world's largest miner has not imported coal in the recent years.

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Ey Considering Spinoff Of Audit Operations In Big Shake-up: Report | Mint - Mint

Ernst & Young (EY) is considering a split of its its audit and advisory operations worldwide, Financial Times reported, citing people with familiar of the knowledge of the plans of the Big Four accounting firm. A spinoff, if it happens, will create an audit-focused firm separate from the rest of the business, but the exact structure of the shake-up remains under discussion, the report said.

In an internal memo seen by Reuters, Chief Executive Carmine Di Sibio said EY is evaluating options to improve their audit quality,  An EY spokesperson told Reuters the firm routinely evaluates strategic options, but the process is in its early stages.

"No such decisions have been made," Sibio said in the memo, while referring to the media coverage on plans to spinoff. 

CEO Sibio said in the memo to the firm's partners that "with the changing competitive, regulatory and market landscape, work is ongoing to evaluate strategic alternatives".

The EY spokesperson said any significant changes would only happen in consultation with regulators and after votes by EY partners. EY employs more than 3 lakh people worldwide.

London-based EY is one of the Big Four accounting firms along with Deloitte LLP, PricewaterhouseCoopers and KPMG that audits companies, which also pay fees for consulting and advisory work.

The companies have previously drawn criticism from regulators over their conflicts of interest that undermines the ability to conduct independent reviews.

In the United States, the country's securities regulator is probing conflicts of interest at the nation's largest accounting firms, the Wall Street Journal had reported in March. 

Citing sources, the Wall Street Journal report said that US regulators are carrying out a sweeping investigation of conflicts of interest at the largest accounting firms, asking whether consulting and other nonaudit services they sell undermine their ability to conduct independent reviews of public companies’ financials.

(With Agency Inputs)

 

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Elon Musk revises Twitter financing plan; shares jump - Economic Times

SAN FRANCISCO - Tesla CEO Elon Musk on Wednesday revised the financing plan for his proposed $44 billion purchase of Twitter, raising investor hopes that the unpredictable billionaire still intends to pull off a deal roiled by market turbulence and Musk's not-entirely-explicable concerns about the number of fake accounts on Twitter.

The news overshadowed Twitter's regularly scheduled annual shareholder meeting earlier Wednesday. Shareholders didn't address the Musk deal directly - that vote will be scheduled for an as-yet undetermined future date, should the deal proceed. Twitter shares jumped 5.5% to $39.22 in after-market trading, building on a 3.9% rise during regular trading.

The financing changes outlined in a regulatory filing would shave $6.25 billion from the lending package Musk had previously lined up for the Twitter buyout. That means Musk will need to raise that sum in stock commitments instead of debt. That would bring the equity - that is, stock-based - portion of the deal to $33.5 billion, up from the $27.25 billion Musk disclosed three weeks ago.

The filing with the Securities and Exchange Commission didn't go into much detail on where Musk will get the additional equity, but emphasized he is still trying to persuade his friend and former Twitter CEO Jack Dorsey - a supporter of the buyout - to throw his stock into the financing package.

Dorsey, also a Twitter cofounder, owns a 2.4% stake currently worth about $700 million, based on the company's closing stock price Wednesday, according to FactSet Research. Musk owns a nearly 9.6% stake worth $2.7 billion.

Wednesday was also Dorsey's last day as a member of Twitter's board, a date established when he resigned as CEO last November.

The nuts and bolts of the financing package weren't as significant to investors as the news that Musk apparently still plans to complete his Twitter buyout. Serious doubts about Musk's resolve have hung over the deal since he announced he was putting it "on hold"- something experts say he can't really do unilaterally - until Twitter provide public proof to support its claims that fewer than 5% of its accounts are fakes powered by spam bots.

Even assuming the share price rise continues into regular trading Thursday, Twitter is still changing hands well below the $54.20 per share that Musk agreed to pay just a month ago.

Wedbush Securities analyst Dan Ives said the

gap between Musk's offer price and Twitter's stock price indicates that most investors still believe the billionaire will walk away from the deal unless the company agrees to a lower price. Twitter's board has so far insisted it won't do that.

Earlier this week, Ives estimated that there was a 60% chance that Musk would call off the Twitter deal and pay a $1 billion breakup fee, risking a potential lawsuit by the company. With Musk now trying to secure a new financing package, Ives believes there is a 50-50 chance of the deal happening, but only if Twitter's board is willing to sell for significantly less than the agreed-upon price. "Musk is hedging his bets here, but the big elephant in the room remains," Ives said.

Twitter dealt with another potential headache Wednesday by agreeing to a $150 million penalty to settle allegations that it violated its users' privacy to help sell advertising from 2013 to 2019 in a case brought by the U.S. Department of Justice and Federal Trade Commission.

Earlier at the shareholder meeting, CEO Parag Agrawal stated up front that that executives wouldn't be answering any questions surrounding the Musk bid. Even a question from a stockholder asking what will happen to his shares if someone buys Twitter and takes it private was shot down. (If this happens, the stockholder would be paid the agreed-upon purchase price for each share and the stock would be delisted).

Musk did not join the meeting, although he could have, being one of Twitter's largest shareholders.

But the drama surrounding his offer - almost all of it created by Musk himself - threatened to spill over into Wednesday's proceedings. Shareholders raising proposals for a vote frequently invoked his name. One proposal, by the New York State Common Retirement Fund, called for a report on Twitter's policies and procedures around political contributions using corporate funds. It passed in a preliminary vote.

Two proposals brought by conservative-leaning groups failed to garner enough votes to pass. One called for an audit on the company's "impacts on civil rights and non-discrimination" and referred to "'anti-racism' programs that seek to establish 'racial/social equity'" as "themselves deeply racist." The other sought more disclosure on the company's lobbying activities.

Several proposals spoke to the deep existential conflict that's been playing out among Twitter's users, employees, shareholders and employees. While shareholders on one side lambasted the company for what they see as too-liberal politics and a bias against conservatives (for which there is no reliable evidence), others said the company is failing to protect users from harassment, abuse and misinformation.

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Singtel set to dial Sunil Mittal to sell part stake in Bharti Airtel - Economic Times

Singapore Telecommunications Limited, commonly known as Singtel, has initiated talks with Bharti Airtel chairman Sunil Mittal to sell a small part of its holding in the Indian telco to the Mittal family, said people familiar with the matter.

Singtel and the Mittal family are shareholders in Bharti Telecom, a promoter company of Bharti Airtel. In addition, both own shares directly in Bharti Airtel. While the exact quantum and details of the transaction have not yet been worked out, people in the know said the Singapore company could sell stake worth $1-2 billion to the Indian promoter through a mix of Bharti Telecom and

share sales.

As on Wednesday, the market capitalisation of Bharti

is Rs 3.78 lakh crore. Selling Bharti Airtel shares worth $1 billion would reduce Singtel's holding by close to 2% to less than 30% while divesting shares worth $2 billion would reduce Singtel’s holding by 4%.
These people said Singtel as part of its portfolio management strategy was keen to book some profit by selling Bharti shares and redeploy some of the capital in new investment opportunities. The Airtel stock has appreciated 33% in the last one year although it is down from its high of Rs 781.80 last November 24. Bharti Airtel’s stock ended Wednesday at Rs 688.35, up 1.41% from the previous day’s closing.

Emailed queries sent to Bharti Airtel, Singtel, and Mittal on Wednesday remained unanswered till press time. Singtel, in response to a separate query on whether it was looking to sell a part of its holding in the Indian telco through a block deal had earlier this week said Bharti Airtel remained a core investment in its international portfolio.

"We've been strategic investors in Airtel for decades and it remains a core investment in our international portfolio. We have not hired a bank to explore such a sale and we will not comment on any market speculation. We abide by market disclosure rules to report all material transactions," said a Singtel spokesperson on Monday.

At an investor call last week, Bharti Airtel CEO Gopal Vittal had declined to comment on a question from an analyst on "fresh market rumours" around an Airtel promoter entity mulling a stake sale. "This was a shareholder matter that is best directed to them," he said.

Singtel will announce its quarterly results on Friday.

A LONG PARTNERSHIP
Singtel has been a shareholder in Bharti Airtel since 2000. The Mittal family and Singtel own 50.56% and 49.44%, respectively, in Bharti Telecom, which in turn holds a 35.85% stake in Bharti Airtel. In addition, Singtel and the Mittal family through investment companies directly hold 14% and 6.04% in the telco. The effective shareholding of the Mittal family in Bharti Airtel is 24.13% while that of Singtel is 31.72%.

JEWEL IN THE CROWN
In February this year, Singtel Group chief executive Kuan Moon Yuen described the Indian telco as a bright spot in his company’s business.

However, as part of a ‘strategic reset’, people aware of the situation said Singtel is stepping up its investment plans in digital service companies — financial services, streaming and gaming — across Southeast Asia, as it attempts to seize opportunities in the region after the Covid-19 pandemic weighed on its traditional mobile carrier business.

It has already begun investing in new-age companies, cherry-picking a 40% stake in a digital banking joint venture with Singapore’s Grab, which has received a licence to operate in Singapore. Other focus areas announced by the company include 5G telecommunications and business-to-business services for governments and enterprises.

Last October, Airtel had raised around Rs 5,247 crore as the first tranche of its Rs 21,000 crore rights issue. The balance Rs 15,753 crore will be garnered once the telco decides to make the two additional calls. Analysts estimate that Airtel’s rights issue requires its promoters, Singtel and Bharti Enterprises of the Mittal family, to contribute around Rs 6,661 crore and Rs 5,067 crore, respectively.

In 2019, Singtel bought $525 million worth of shares in Airtel, which was in the midst of a fund-raising spree to boost its balance sheet amidst the need to make statutory payments and invest in its network to better take on moneyed rival Reliance Jio.

Airtel has taken strides to improve its balance sheet by raising capital and monetizing assets. It has reduced its net debt to EBITDA ratio from a peak of 4.5x in F19 to 3.0x in F22,” said Morgan Stanley analyst Gaurav Rateria. “Unlike in the previous cycle, when competition and a new capex cycle coincided, this time Airtel is well positioned to absorb the incremental investments related to 5G without compromising its balance sheet strength.”

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