ECONOMY, P2 FM-SPEAK MARKETS, P6 Indian economy on sustained path of revival: Sitharaman INTERNATIONAL, P8 EDITORIAL AMPLE LIQUIDITY CRACKDOWN Net direct tax mop-up grows 74% at `5.70 lakh cr so far this finacial year Mispricing of risks by banks a cause of concern: SBI chairman China declares all cryptocurrency transactions illegal CHENNAI/KOCHI, SATURDAY, SEPTEMBER 25, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLIII NO. 120, 12 PAGES, `10.00 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: 60,048.47 ▲ 163.11 NIFTY: 17,853.20 ▲ 30.25 NIKKEI 225: 30,248.81 ▲ 609.41 HANG SENG: 24,192.16 ▼ 318.82 `/$: 73.69 ▼ 0.05 `/€: 86.48 ▼ 0.16 BRENT: $77.16 ▼ $0.09 GOLD: `46,058 ▼ `415 IN THE NEWS CCI slaps over `873-cr fine on UBL, Carlsberg THE CCI ON Friday imposed penalties totalling over `873 crore on United Breweries, Carlsberg India, All India Brewers’ Association and 11 individuals for cartelisation in the sale and supply of beer, reports PTI. The order also names AB InBev but no fine has been imposed on it, while lesser penalties have been slapped on others. ONGC puts 2nd well in KG block on production ONGC HAS PUT a second well in its promising KG basin block into production, its chairman Subhash Kumar said on Friday, reports PTI. ONGC had achieved first gas from the $5 billion KGDWN-98/2 or KG-D5 project in the Krishna Godavari basin in the Bay of Bengal in June last year. RINL sale: 5 firms in transaction advisor race AS MANY AS five firms, including Ernst & Young and SBI Capital Markets, are in the race to act as a transaction advisor for the government's 100% stake sale in RINL, reports PTI. BULL RUN Sensex soars past 60k; India still the flavour of the season Investors continue to bet on revival in Indian economy Sensex Nifty50 Sept 24, 2021 60,048.47 57,000 17,853.20 17,900 Sept 24, 2021 Continued on Page 2 Continued on Page 2 17,500 THE SENSEX ON Friday soared past the 60,000 mark as investorsshruggedasideconcernsof central bankers withdrawing from their accommodative stance and continued to bet on the revival in the Indian economy. Both benchmark indices closed the session at record highs undeterred by the possibility of a sharp slowdown in China or of smaller bond purchases by central banks, rising interest rates in some EMs. Investors appear to be willing to take on risk even though India is now a very expensive market.The Nifty50 currently trades at a price-earnings (PE) multiple of 22.6 times its estimated one-year forward earnings, according to Bloomberg. That’sa24%premiumoverthe five-yearaverageandcompares with 13.9 times for Taiwan’s Taiexand11.1timesforKorea’s Kospi. The Jakarta Composite trades at 15.40 times, the Bovespa trades at a multiple of 8.2 times,Bloomberg data shows. 51,000 17,100 16,700 Feb 3, 2021 50,255.75 16,300 BSE Realty Index Intra-day, Sept 24 4,100 4,050 Nifty IT Index 4,002.46 Intra-day, Sept 24 6.195 37,800 6.185 3,950 37,103.25 37,550 37,300 3,900 3,850 3,956.54 37,050 Previous close : 3,936.11 Open Close Strategists do not see any major change in the short and medium-term drivers of the market. “We expect a strong economic and earnings revival andastableCovid-19situation to provide short-term support tothemarket.Wedonotseeany changetoIndia’smedium-term 16,624.60 Aug 24, 2021 10-year bond yield (%) Intra-day, Sept 24 38,050 4,000 36,800 6.181 6.175 6.165 37,128.75 6.155 Previous close : 36,816.90 Open Close narratives including favorable demographicsandlikelymultiyear investment cycle led by corporate and household capitalexpenditure,”SanjeevPrasad at Kotak Institutional Equities hadwritten earlierthisweek. While domestic Institutional investors (DIIs) have FE BUREAU New Delhi, September 24 bought shares worth $1 billion worth in the last four sessions, foreignportfolioinvestors(FPIs) have invested nearly $9 billion inIndianequitiessofarthisyear on the back of a chunky $23.4 billion in 2020. 54,000 45,000 Probe to go on, HC raps Google for writing to CCI chief THE DELHI HIGH Court on Fridayrefused to staythe ongoing probebytheCompetitionCommission of India into Google’s Android smartphone agreements. It also disapproved the move by the company's senior executive based in California, writing to the CCI chairman warningoflegalactionoverthe allegedleakleakofconfidential information related to the ongoing probe. “Your client had no business writing to the adjudicating authority. If your client wantedtoinform,itcouldhave written to the Registrar... Adviseyourclient.Justbecause he is there (in California)… he should know that if you want to function in a country,he has to knowthe law,”Justice Rekha Palli told senior counsel AM Singhvi,appearing for Google, during the hearing. However, Google maintained that it hadn't committedanylegalviolation andonly wanted to prevent any further unlawful disclosures of confidential findings. YOOSEF KP Mumbai, September 24 48,000 ● REPORT LEAK 6.145 6.156 Previous close : 6.140 Open Close DEFENCE PUSH Tata-Airbus seal `20,000-cr deal for 56 military aircraft PRESS TRUST OF INDIA New Delhi, September 24 INDIA ON FRIDAY inked a nearly`20,000-crore contract withAirbus Defence and Space to procure 56 C-295 transport aircraft to replace the Avro748 planes of the IAF under a project that entails manufacturing of military aircraft in thecountryforthefirsttimeby a private company. Undertheagreement,Airbus willdeliverthefirst16aircraftin “fly-away” condition from its final assembly line in Seville, Spain.The subsequent 40 aircraft will be manufactured and assembled by Tata Advanced Systems (TASL) in India as part of an industrial partnership between the two companies. Tata Trusts chairman Ratan Tata congratulated Airbus Defence, Tata Advanced Systems and the defence ministry on the inking of the con- ■ Airbus to deliver first 16 C-295 transport aircraft from its final assembly line in Spain ■ Subsequent 40 aircraft to be manufactured and assembled byTata Advanced Systems in India ■ First 16 aircraft to be delivered over 4 years, fitted with indigenous Electronic Warfare Suite Contract to bring 15,000 skilled direct jobs, 10,000 indirect positions over 10 years tract, saying it is a“great step” forward in the opening up of the aviation and avionics projects in India. Continued on Page 2 India head resigns days after Ford’s exit FORD MOTOR’S INDIA head AnuragMehrotrahasquitthe company to pursue other career opportunities, days aftertheUSautomakersaidit wouldstopmakingcarsinthe Asian nation, taking a hit of $2 billion, reports Reuters. Mehrotra, according to his LinkedIn profile, has spent over a decade with Ford in India across multiple roles, including most recently as president and MD. ■ Page 4 Special Feature It’s practical, but not yet aspirational The Optima HX is fun to ride around home; it has two-battery option so you don’t have to visit a charging station. ■ Motobahn, P7 MODI MEETS BIDEN Prime Minister Narendra Modi (left) with US President Joe Biden in the Oval Office of the White House in Washington on Friday QuickPicks Auto sector PLI scheme out of bounds for start-ups START-UPS AND most of the non-automotive companies may have to give the `25,938-crore PLI scheme for the auto sector a miss due to the high thresholds of revenue and investment, reports fe Bureau in New Delhi. Incumbent auto majors like Maruti Suzuki will have to set up new facilities for advanced technological products to be able to reap benefits. The scheme, notified by the department of heavy industries, has capped incentives per auto group at an elevated level of `6,485 crore, or 25% of the total outlay. PAGE 2 DoT amends norms: Active infra sharing among telcos allowed TELECOM OPERATORS will now be able to share active infrastructure, including core networks following an amendment made by the department of telecommunications (DoT) in the licence norms, reports PTI. The move is expected to reduce capital and operational expenditure of telecom operators like Reliance Jio, Bharti Airtel and Vodafone Idea. DoT has also changed the commercial VSAT licence rules to enable use of satellite connectivity to provide backend connectivity for mobile networks. PAGE 4 SCBs account for over 93% of premium payments to DICGC SCHEDULED COMMERCIAL banks account for over 93% of premium payments to the Deposit Insurance and Credit Guarantee Corporation (DICGC) in FY21, showed the corporation’s annual report for the year, reports fe Bureau in Mumbai. This is even as a majority of bailouts by the DICGC were for co-operative banks. Commercial banks, including local area banks and regional rural banks, paid a total premium of `16,341 crore, while co-operative banks paid `1,176 crore. PAGE 6 MASTER DIRECTION Banks can now sell fraud loans to ARCs FE BUREAU Mumbai, September 24 THE RESERVE BANK of India (RBI) on Friday allowed banks to sell fraud loan exposures to asset reconstruction companies (ARCs). Banks will now be able to transfer to ARCs loan exposuresclassifiedasfraudas on the date of transfer, provided that the responsibilities of the bank with respect to continuous reporting, monitoring, filing of complaints with law enforcement agencies and proceedings related to such complaints shall also be transferred to the ARC. “The transfer of such loan exposures to anARC,however, does not absolve the transferor from fixing the staff accountability as required Banks can transfer to ARCs fraud loans, along with responsibilities with respect to reporting and monitoring Banks will remain responsible for fixing staff accountability, as required under extant instructions on frauds Board-approved policies for sale of stressed loans to cover norms for transfer,valuation methodology and risk premium under the extant instructions on frauds,” the RBI said in its masterdirection on transferof loan exposures. Continued on Page 2 Labour codes: 15 states release draft rules AS MANY AS 15 states have prepared draft rules under the four labour codes passed by Parliament between between 2019 and 2020, but it is still uncertain if the long-awaited labour market reformswillbecomeareality in the current fiscal year, reports fe Bureau in New Delhi. Rules under these codes must be notified by central as well as state governments for enforcing those in respective jurisdictions. ■ Page 2 CHENNAI/KOCHI
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