OPINION, P6 ECONOMY, P2 LUIGI ZINGALES Bifurcate social media instead of breaking it up INTERNATIONAL, P8 EDITORIAL IBBI CHIEF-SPEAK OFFERING MORE CONTROL Govt must weigh PLI benefits against outlays, roll out high-tech manufacturing strategy ‘Market participants need to effectively play their roles under IBC’ Twitter planning new privacy tools to get more people to tweet NEW DELHI, FRIDAY, SEPTEMBER 3, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 159, 26 PAGES, `8.00 (PATNA `8.00, RAIPUR `8.00) 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: 57,852.54 ▲ 514.33 NIFTY: 17,234.15 ▲ 157.90 NIKKEI 225: 28,543.51 ▲ 92.49 HANG SENG: 26,090.43 ▲ 62.14 `/$: 73.07 ▲ 0.02 `/€: 86.61 ▼ 0.23 BRENT: $72.42 ▲ $0.83 GOLD: `47,098 ▲ `4 IN THE NEWS India Inc’s foreign borrowing jumps 60% in July INDIAN COMPANIES raised over $3.43 billion from foreign markets through external commercial borrowings (ECBs) in July this year, up by nearly 60% from a year ago, RBI data showed on Thursday, reports PTI. Indian companies had borrowed $2.15 billion from overseas markets in July 2020. Oil PSUs asked to set up 12 ethanol manufacturing units STATE-RUN OMCs Indian Oil, Bharat Petroleum and Hindustan Petroleum have been given the mandate to set up around 12 ethanol manufacturing plants as part of a road map to meet the 20% ethanol blending target by 2025, Tarun Kapoor, secretary in the petroleum ministry told Vikas Srivastava in Mumbai. IndusInd Bank default case: CEO, CFO of Karvy held THE HYDERABAD police on Thursday arrested CEO Rajiv Ranjan Singh and CFO G Krishna Hari of the scam-hit Karvy Stock Broking for allegedly involving in diverting funds raised from banks. The action came on a plea filed by IndusInda Bank, reports PTI. ONGOING DIALOGUE Centre wants Voda Idea’s promoters to put in more capital KIRAN RATHEE New Delhi, September 2 ■ KM Birla met ■ Vodafone India MD & CEO RavinderTakkar, SBI chief Dinesh Khara met telecom secretary Anshu Prakash on same day ■ Govt trying to understand if promoters' stand ofnot putting in capital intoVIL will change after a revival package ■ Govt feels if the promoters don't put in equity,VIL's long-term healthwon't improve DoTmay come outwith a blueprint ofsector’s revival package by nextweek statement by the promoters that they will not put any more equityinto thecompany. Continued on Page 16 Exports jump 45% in Aug, imports up 51% MERCHANDISE EXPORTS surged45%inAugustfroma year before and over 27% from thepre-pandemic level, buoyedbyaneconomicresurgence in advanced markets andelevatedglobalcommod- Markets climb back to record highs IT, FMCG and bank stocks boost benchmarks communications minister Ashwini Vaishnaw on Wednesday OFFICIALS OF THE Department of Telecommunications (DoT) are understood to have held regular meetings with senior executives of Vodafone Idea(VIL)overthepastfewdays, as the Centre tries towork out a revival package for the financiallydistressed telecom sector, the immediate beneficiary of whichwould be the ailing telco. AdityaBirlaGroupchairman Kumar Mangalam Birla, who resigned as VIL chairman last month, met communications minister Ashwini Vaishnaw on Wednesday, sources said. VIL MD and CEO Ravinder Takkar andSBIchairmanDineshKhara met telecom secretary Anshu Prakash on the same day. Sources told FE that one issue which is a matter of concern for the government is the BULLS RETURN ity prices, reports fe Bureau in New Delhi. Imports, too, jumpedover51%fromayear earlier and 18% from the pre-Covid level, signalling a broadertrade recovery. ■ Report on Page 2 58,000 57,850 Close Sensex 57,852.54 Intra-day, Sept 2 57,700 SPENDING PUSH Finmin asks depts to step up capex Budget capex rose just 15% in April-July on a low base against annual target of 30% Open PRESS TRUST OF INDIA Mumbai, September 2 57,400 57,250 57,100 BANIKINKAR PATTANAYAK New Delhi, September 2 Previous close : 57,338.21 Nifty50 Intra-day, Sept 2 17,250 `/$ 17,234.15 Intra-day, Sept 2 Inverted scale 72.90 17,200 72.95 17,150 73.00 17,100 17,050 17,000 73.07 73.05 17,095.40 73.10 Previous close : 17,076.25 Open 73.06 Close Bajaj Finance,Asian Paints and L&Twere among the other laggards,dropping up to 0.79%. Themarketbreadthwaspositive, with 22 Sensex componentsendinginthegreen,while the remaining eight nursed losses. Vinod Nair, head of 73.15 Previous close: 73.09 Open Close research at Geojit Financial Services,said domestic indices climbed amid positive economic data, FII buying and mixed global markets ahead of the release of US job data. Continued on Page 14 WITH CAPITAL EXPENDITURE having dropped in three of the five months through July from a year before, the Centre is set to augment the pace of productive spending, a key growth enabler, across important departments. The finance ministry has already asked various infrastructure ministries and departments to step up capex and create durable assets. “In some meetings, senior finance ministryofficials have even offered to help other departments resolve any critical issue that can potentially obstruct key projects,”a senior official told FE. “There were some challenges due to the second Covid wave but there will be substantial improvement (in capex) in the coming months. The minister is keeping a close watch,”he added. Sincethepresentationofthe FY22 Budget — in which the UNDER REVIEW Special Feature ‘Customers now prefer trusted jewellery brands’ CK Venkataraman, MD, Titan Company, on how the jewellery industry benefitted from the pandemic, and why the company is betting big on premium watches ■ BrandWagon, P7 QuickPicks PhonePe: Small towns adopting digital payments faster than Metros SMALLTOWN India is adopting digital payments way faster than metros and tier I cities, said PhonePe that records nearly 80% of its total transactions (including financial services) from tier II, III and IV cities and beyond, reports fe Bureau in New Delhi. The firm claims to have seen digital transactions from over 19,098 PIN codes, covering more than 99% of the country. “We are excited about the prospects in multiple verticals,” founder & CEO Sameer Nigam said on Thursday. PAGE 9 PNB plea: NCLAT issues notice to Jet Airways administrator, lenders APPLE IS FACING an antitrust challenge in India forallegedly abusing its dominant position in the apps market by forcing developers to use its proprietary in-app purchase system, according to a source and documents seen by Reuters. The allegations are similar to a case Apple faces in the European Union,where regulators last year started an investigation into Apple’s imposition of an in-app fee of 30% for distribution of paid digital content and other restrictions. The casewas filed bya nonprofit group which argues Apple’s fee of up to 30% hurts competition by raising costs for app developers and customers, while also acting as a THE NATIONAL Company Law Appellate Tribunal (NCLAT) on Thursday issued a notice to the administrator and lenders of defunct Jet Airways in a petition filed by Punjab National Bank (PNB), reports fe Bureau in Mumbai. In its plea, the country’s secondlargest lender had alleged “gross irregularities” on part of the resolution professional (RP) and urged the appellate tribunal to quash the rescue plan for the debt-laden carrier. The move further delays the airline’s revival plans. The appellate tribunal has posted the case now for September 21. PAGE 4 ■ The allegations are similar to a case Apple faces in the EU 30% US ANTITRUST OFFICIALS are preparing a second monopoly lawsuit against Alphabet Inc’s Google over the company’s digital advertising business, according to a person familiarwith the matter,stepping up thegovernment’s claims thatGoogle is abusing its dominance. The Justice Department has accelerated its investigation of Google’s digitaladvertisingpractices and may file a lawsuit as soon as the end of the year, said the person,who declined to be named because the investigation is ongoing. No final decisions have been The US justice department has accelerated its probe into Google’s digital advertising practices It may file a lawsuit against Google by the end of the year made and the timing could be pushed back. Google touched a lowin extended trading on the news, falling 0.6% to $2,888 during the day’s trade, in NewYork. June ‘20 116.2 75 0 -75 -7.5 April 2020 -28.2 July 2021 Key infra depts (Capex until July, as % of FY22 outlay) Power 2 Telecom 2 Housing & urban affairs 25 Railways 26 Road transport 45 Union government pushed for public capex to reverse a Covidinduced growth slump — such expenditureviabudgetdropped in March, May and July from a year earlier. While the budget capex still rose 15% in the first four months of this fiscal, supported by a conducive base and decent spending in April and June,the growth is onlyhalf the annual target of 30%. Continued on Page 14 ■ CCI is likely to launch a probe, say sources, as EU is also probing a similar case ■ Apple's smartphone base in the country has more than doubled in the last five years, according to Counterpoint Research barrier to market entry. Continued on Page 14 The concession was part of a settlement with Japan’s antitrustregulator,whichsaid the change was enough for it to close a 5-year probe into Apple that focused on video and music apps but didn’t considergames. ■ Page 8 IN A SHAMBLES face a supplyshortage of semiconductors, which further accentuated due to Covid-19 lockdowns in some parts of the world. “Consequently, the companywill be observing‘No Production Days’of around 7 days in its automotive division plants in the month of September 2021,” it added. THE GOODS AND Service Tax (GST) Councilwill meet in Lucknow on September 17 to sort out the vexatious issue of whether and how to compensate states for any ‘revenue shortfall’ beyond June 2022, when the current such mechanism is designed to end. Accordingtosources,theallpowerful Centre-state council will also deliberate on the ways to boost revenues,amid a realisationthattheaverageGSTrate beingmuchlowerthantherate of assorted taxes that were replaced bythe comprehensive indirect tax, is one reason why GST hasn’t yielded the projected revenue growth. TheLucknowsession,which will be the first physical meeting of the Council aftera gap of nearly one-and-a-half years, will also take a call on whether GST concessions for various Covid medicines and related medical equipment,which are to be valid till September 30, should be extended. Continued on Page 14 Continued on Page 16 People try to collect belongings from their damaged property in the aftermath of Hurricane Ida in Louisiana, US. At least nine deaths were reported in New York City and New Jersey ● SPEED BREAKER M&M to cut production by 25% on semiconductor shortage PRESS TRUST OF INDIA New Delhi, September 2 MAHINDRA & MAHINDRA on Thursdaysaid the output at its automotive divisionwill becut by up to 25% owing to no production days of around seven days across its plants due to semiconductor shortage. In a regulatory filing, the company said its automotive division continues to SHORT SUPPLY ■ M&M’s auto- motive division has manufac■ Therewill be turing units in no production Chakan, Nashik, on around Kandivali, seven days Zaheerabad across and Haridwar M&M plants ■ Tractor operations, exports, trucks and buses business and three-wheeler production are "unaffected", M&M said US readies new lawsuit against Google FRESH PROBE 225 PRASANTA SAHU New Delhi, September 2 hurts competition by raising costs for app developers and customers AD REVENUES BLOOMBERG September 2 335.1 300 Council to decide on GST aid for states beyond June 2022 ■ The plea arguesApple's fee ofup to Apple eases payment rules for Netflix, others APPLE WILL let some apps like Netflix provide links to their websites for user payments,asmallconcessionthat wouldallowappdevelopersto bypassthecontroversial30% App Store fee the iPhone maker charges,reports Reuters. Jan ‘21 ● SEPT 17 MEETING Apple faces antitrust case over in-app fees ADITYA KALRA New Delhi, September 2 (% change, y-o-y) 375 150 57,550 57,423.65 MARKETS RESUMED THEIR upward march on Thursday after a day’s pause as hectic buying in IT, FMCG and bank stocks propelled benchmarks to new closing highs. Sensex rallied514.33pointsor0.90% to finish at its fresh all-time high of 57,852.54. Similarly, Nifty surged 157.90 points or 0.92% to record 17,234.15. Themarketcapitalisationof BSE-listed companies also jumped to an all-time high of `252.68lakhcroreonThursday. TCStoppedtheSensexgainers chartwith a jump of 3.34%, followed by HUL, UltraTech Cement, Dr Reddy’s, Nestle India,KotakBankandTitanTCS, Reliance Industries, HUL and HDFCaccountedforaroundhalf of the benchmark’s gains. In contrast, M&M was the toploser,tumbling2.29%after the automaker said it will slash output by up to 25% owing to theglobalsemiconductorshortage. Bajaj Auto, Bajaj Finserv, Centre's budgetary capital spending ■ Google disputes it dominates the ad tech market, says it is crowded with Amazon, Comcast and Facebook ■ It also denies the states’ claim that it’s manipulating auctions to benefit Facebook The department’s scrutiny of Google’s control of the ad tech market goes back to the Trump administration. Continued on Page 14 New Delhi
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