OPINION, P6 ECONOMY, P2 EDITORIAL Protest the excesses of Republic TV etc, as also attack on media COMPANIES, P4 UDAY KUMAR VERMA Q1 BLOW RIDING BACK To fix TV news regulation, broadcasters, Trai and I&B ministry must get their act together GDP growth to be negative or near zero this fiscal: FM Hero MotoCorp to develop, sell Harleys in India NEW DELHI, WEDNESDAY, OCTOBER 28, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 206, 18 PAGES, `6.00 (PATNA `6.00, RAIPUR `7.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 40,522.10 ▲ 376.60 NIFTY: 11,889.40 ▲ 121.65 NIKKEI 225: 23,485.80 ▼ 8.54 HANG SENG: 24,787.19 ▼ 131.59 `/$: 73.72 ▲ 0.13 `/€: 87.01 ▲ 0.27 BRENT: $40.72 ▲ $0.26 GOLD: `50,847 ▼ `201 Close Nifty50 ABHISHEK VISHNOI October 27 Intra-day, Oct 27 11,889.40 11,925 THE STOCK MARKETwillseea net inflow of about $2.5 billion fromthenextroundofchanges to MSCI’s indexes,according to MorganStanley.ExistingmembersoftheMSCIIndiaIndexwill gain$1.93billioninnewpassive fundsaftertheimplementation ofnewforeignownershiplimits, while potential additions to the gauge — namely Kotak Mahindra Bank, agrochemical maker PI Industries and drugmaker IPCALabs— will get a total allocationofabout$0.6billion,analystswrote in a note. India’s weight in the MSCI EmergingMarketsIndexwillrise to8.8%fromthecurrentlevelof 8.1%,analysts Sheela Rathi and Ridham Desai said.The inflows arelikelytoburnishIndia’sposition as the only stock market in emerging Asia excluding China 11,870 11,807.10 11,815 11,760 Previous close: 11,767.75 11,705 11,650 Prime Minister Narendra Modi, defence minister Rajnath Singh with US secretary of state Mike Pompeo and other officials, in New Delhi on Tuesday Open Close Bank Nifty Intra-day, Oct 27 24,900 24,769.50 24,620 24,288.05 24,340 24,060 Previous close: 24,075.45 23,780 23,500 Open Close thathasseenanetforeigninflow thisyear.Overseasinvestorshave pumped $6.35 billion into Indian stocks year-to-date even as it grapples with the secondlargest Covid caseload and a historiceconomiccontraction. Major deﬁcit indicators 4 3 Contribution of UDAY FRBM threshold % of GDP India said onTuesday. The salvaging of the states’ fiscal position was from a serious,trend-reversingslippageof 80 basis points to 3.2% of GDP on year, as reflected in the revisedestimatesintheBudgets presented in February-March. However, RBI noted the states’ budgeted GFD-GDP ratio of 2.8% for the current fiscal had come under threat even before the pandemic struck. Detailed report on Page 2 Contribution of UDAY 2.4 2.4 2.6 2.8 2 1 0 -1 FY13 FY14 FY15 Gross fiscal deficit FY16 FY17 FY18 Revenue deficit Source: Budget documents of state governments Secretary of state Pompeo calls out China, says it’s‘no friend of democracy’ Continued on Page 2 SHUBHAJIT ROY New Delhi, October 27 AS INDIA AND the US announcedonTuesdaysigning of the crucial military pact, Basic Exchange and Cooperation Agreement (BECA), visiting US secretary of state MichaelRPompeorecalledthe Galwan valley incident in June FY20 expenses slashed India policy head Ankhi to keep deficit at 2.6% Das quits EVEN THOUGH THEIR combined revenue receipts turned outtobeasteep12%lowerthan estimated (BE) for 2019-20, state governments exercised sudden,drasticcontrolsonboth revenue and capital expenditures in the final months of 2019-20,to keep their consolidatedgrossfiscaldeficit(GFD)to GDP ratio at 2.6%, exactly as budgeted, the Reserve Bank of US signs key defence agreement with India ● BACKLASH STATES’ DEFICIT FE BUREAU New Delhi, October 27 BOLSTERING TIES FY19 FY20 Primary deficit FY21 (BE) Facebook PRESS TRUST OF INDIA New Delhi, October 27 ANKHI DAS,THE controversial India policy head of Facebook who allegedly opposed blocking ofright-wing hate content, has quit the company. “Ankhi has decided to step down from her role in Facebook to pursue her interest in public service. Ankhi was one of our earliest employees in India and played an instrumental role in the growth of the company and its services over the last 9 years,” Facebook's managing director India Ajit Mohan said in an emailed statement. Das faced allegations of opposing enforcement of hate-speech rules against BJP and other right-wing leaders. Continued on Page 2 and said the US would “stand withthepeopleofIndiatoconfront threats to their sovereignty and to their liberty". From the Hyderabad House lawns and with defence minister Rajnath Singh and external affairs minister S Jaishankar by theirside,thevisitingUSministers,Pompei and defence secretary Mark T Esper, launched a sharplywordedattackonChina. The four of them were addressing the media after meeting Prime Minister Narendra Modi. While Pompeo said that Indian and US leaders and citizens see with “increasing clar- ity” that the Communist Party of China (CCP) is “no friend to democracy and rule of law”, Esperset his sights at Beijing as he flagged the “increasing aggression and destabilising activities byChina”. IndianandChinesesoldiers are locked in a border standoff for more than five months and as the harsh winter begins, BECA will help New Delhi get real-time access to US geospatial intelligence that will enhance accuracy of automated systems and weapons likemissilesandarmeddrones. Continued on Page 2 Future Retail sees liquidation if deal with Reliance falls through FUTURE RETAIL (FRL) will go into liquidation if its deal to sell assets to Reliance Industries (RIL) fails, the group told a Singapore arbitrator while arguing against Amazon's bid to scupper the deal, a legal order seen by Reuters showed. Amazon on Sundaywon an injunction from a Singapore arbitrator to halt FRL’s deal to sell assets to Reliance.Amazon alleged FRL had breached certain contract provisions it entered into lastyearin a separate deal with the US firm. The dispute centres around Future’s decision to sell retail, wholesale, logistics, other biz to Reliance for $3.38 billion Amazon has won an injunction from a Singapore arbitrator to halt the FRL-RILdeal FRLhas said itwould take appropriate steps to ensure its deal proceeds unhindered ■ Reliance has also said it will complete the transaction The dispute centres around FRL’s decision inAugust to sell its retail, wholesale, logistics and some other businesses to Reliance for $3.38 billion, including debt. Amazon argues that a 2019 deal it had with a Future unit had clauses saying the group couldn’t sell its retail assets to anyoneona“restrictedpersons” list, including any firms from Reliance chief Mukesh Ambani’sgroup.ThedealspecifiedanydisputeswouldbearbitratedunderSingaporeInternationalArbitration Centre rules. Continued on Page 2 DELHI RECORDED 4,853 fresh Covid-19 cases on Tuesday, the highest single-day spike here till date, as the infection tally in the city mounted to over 3.64 lakh, authorities said. The previous highest single-day spike of 4,473 caseswas recordedon September 16. Forty-four new fatalities pushed the death toll in the ILLUSTRATION: ROHNIT PHORE more strongly about milk products on worries that their imports could destroy the livelihood of millions of farmers as most of whom are small Avg. data consumption per user per month (MB) Total wireless data traffic (m MBs) Avg. voice consumption per user per month (min) 898 965 994 1,005 Total voice traffic (m min) Continued on Page 2 national capital to 6,356, according to the latest bulletin issued by the Delhi health department. The 4,853 fresh cases came out of the 57,210 tests conducted the previous day. The active cases tally on Tuesday rose to 27,873 from 25,786the previous day,as per the bulletin. The bulletin said the total numberofcaseshasclimbedto 3,64,341. Continued on Page 2 Vaccine: Cadila to raise capacity by 70% CADILA HEALTHCARE, one of the two drugmakers racing to develop an indigenous Covid-19 vaccine, is in talkswith potential partners to ramp up production capacity if its candidate passes human clinical trials, reports Bloomberg. The Dairy farmers stymie US/EU trade deal INDIA’S EFFORT TO wrap up bilateral trade deals with major economies after pulling out of a China-backed regional pact has hit a major stumbling block — its dairy industry. Prime Minister Narendra Modi’s administration is hesitant to allow free access of dairy products from several countries, including the US, the EU and the UK, due to strong opposition from politically-influential dairy farmers, according to people familiarwith the situation. There are disagreements over a range of goods, but India feels 162 With 4,853 cases, Delhi sees highest daily spike CURDLING TRADE SHRUTI SRIVASTAVA October 27 157 COVID-19 PRESS TRUST OF INDIA New Delhi, October 27 FIGHT WITH AMAZON ADITYA KALRA New Delhi, October 27 A TARIFF HIKE in December 2019, a strong 14 million addition of 4G subscribers, and data usage remaining in the high zone of 16 GB a month saw Bharti Airtel’s average revenue per user (Arpu) rising to a three-year high at `162 during the July-September quarter. Having made full provisioning for the adjusted gross revenue (AGR) dues in the preceding quarter, the companywas able to considerably narrow its consolidated net loss at `763 crore compared with `15,933 crore in the preceding quarter. Still, it missed Bloomberg consensus estimate of a slender profit of `121.55 crore. Thiswas the sixth consecutive quarter during which it posted losses. However,thecompanybeat estimates on the revenue and operating profit fronts. 154 16,409 Open Q2 7,639,997 39,800 FE BUREAU New Delhi, October 27 FY21 ARPU (`) 135 Previous close: 40,145.50 39,975 Q1 860,854 40,150 Q4 16,655 40,199.08 FY20 7,239,836 40,325 40,522.10 Q3 14,972 40,675 40,500 At `763 crore, telco trims loss in Sept qtr Intra-day, Oct 27 6,452,825 Sensex 13,928 ‘India’s weight in MSCI Emerging Markets Index to rise to 8.8% from the current 8.1%’ More 4G users take Arpu to high of `162 820,246 FRESHTOHOME ON Tuesday raised $121 million in Series C funding led by Investment Corporation of Dubai (ICD), Ascent Capital, The United States International Development Finance Corporation (DFC) and the Allana Group, reports fe Bureaus in Kochi and New Delhi. Existing investor Iron Pillar also participated in the round. The financial round marks the largest series C investment in the Indian consumer tech space. Stocks seen reaping $2.5-billion inflow 821,900 FreshToHome raises $121 m in Series C funding BHARTI AIRTEL 5,547,223 TATA MOTORS reported a net loss of `307.26 crore for the July-September period compared with the `187.70-crore net loss reported by the company in the September quarter last year, as demand continued to be weak across key markets, reports fe Bureau in Mumbai. However, the loss was well below the Street's estimated `1,970 crore, as the company took stringent cost-saving measures. MSCI CHANGES 758,897 IN THE NEWS Tata Motors loss at `307 cr below Street estimates and lack the economy of scale, said the people,who asked not to be identified as the matter isn’t public. Trade negotiations are also being explored with Australia, while New Zealand has expressed its interest in a bilateral agreement, they said. The dairy industry is a major component of the proposed India-European FreeTradeAssociation,which includes Iceland,Liechtenstein, Norway and Switzerland, they added. An email sent to the trade ministryspokesman during the business hours for a comment on the issue remained unanswered. Continued on Page 2 New Delhi Ahmedabad-based firm is looking to hire contract manufacturers for an additional 50-70 million doses of its plasmid DNA vaccine, on top of the 100 million that will come from its own capacity, according to MD Sharvil Patel. ■ Page 5
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