OPINION, P6 ECONOMY, P2 EDITORIAL India differs with other Quad members on data localisation PM-SPEAK FUTURE COURSE Recovery taking off, but high farm costs, steep crude prices, rising Covid cases are all headwinds SAMEER PATIL COMPANIES, P4 ‘Govt to provide all support for industry to grow in space sector’ Tata Sons board meet today, Air India plans on agenda KOLKATA, TUESDAY, OCTOBER 12, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. 30 NO. 293, 14 PAGES, `8.00 (NORTH EAST STATES & ANDAMAN `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: 60,135.78 ▲ 76.72 NIFTY: 17,945.95 ▲ 50.75 NIKKEI 225: 28,498.20 ▲ 449.26 HANG SENG: 25,325.09 ▲ 487.24 `/$: 75.36 ▼ 0.37 `/€: 87.08 ▼ 0.33 BRENT: $83.86 ▲ $1.47 GOLD: `46,897 ▲ `91 ■ Quantum of borrowing byAIAHL to be decided in 2 months ■ Strategic sale of Air India Air Transport Services to start soon Ofthedisinvestmenttarget of `1.75 lakh crore for FY22, the Centre has budgeted `75,000 crore from the privatisation of some CPSEs such as BPCL and minority stake sales in CPSEs and another `1 lakh crore from disinvestment of government stake in“public sector financial institutions” (read LIC) and banks. Continued on Page 10 Good show Nifty50 Intra-day, Oct 11 18,050 Prev close: 17,895.2 17,867.55 17,945.95 18,000 Rupee Prev close: 74.993 Intra-day, Oct 11 75.00 (Inverted scale) 75.14 75.10 75.36 17,950 75.20 17,900 75.30 17,850 17,800 Close 75.50 Open 10-yr bond yield 6.350 Close Brent 85 Intra-day, %, Oct 11 6.332 Prev close: 6.318 Intra-day, $/bbl, Oct 11 Prev close: 82.39 6.345 82.65 6.340 84.07 84 6.330 83 6.320 Open Close modative stance unchanged on Friday,it signalled the start of policy normalization, calling off the G-SAP. Critically, the cut-off rate of 3.99% for 82 Economics Nobel honours ‘natural experiments’ US-based economists David Card, Joshua Angrist and Guido Imbens bag prize SIMON JOHNSON & NIKLAS POLLARD Stockholm, October 11 75.40 Open TALENTED TRIO 3.30am 18.10pm the Variable Reverse Repo Rate (VRRR) auction on Friday was higher than expected. Continued on Page 10 ECONOMISTS DAVID CARD, Joshua Angrist and Guido Imbens won the 2021 Nobel economics prize on Monday for pioneering“natural experiments” to show real-world economic impacts in areas from minimum wage increases in the US fast-food sector to migration from Castro-era Cuba. Unlike in medicine orother sciences, economists cannot conductrigidlycontrolledclinical trials. Instead, natural experiments use real-life situations to study impacts on the world, an approach that has spread to othersocial sciences. “Their research has substantiallyimproved ourability toanswerkeycausalquestions, whichhasbeenofgreatbenefit to society,”says Peter Fredriksson,chairof the Economic Sciences Prize Committee. David Card, University of California, Berkeley Joshua Angrist, Massachusetts Institute of Technology Continued on Page 10 Business activity picks up amid power shortage risks The Nomura India Business Resumption Index rose to 105.1 for the week ended October 10 from 103.4 the prior week. The brokerage, however, warned if power outages become more widespread, industrial output could suffer in the near term, while higher energy costs may squeeze firms’ margins and add to consumer price inflation. 110 Nomura India Business Resumption Index (NIBRI) 100 94.2 105.1 81 90 69.8 80 63.1 70 60 Oct 10 Sep 12 Jul 18 Aug 15 Jun 20 Apr 25 May 23 Mar 28 Feb 28 Jan 3 Jan 31 Dec 6 44.9 50 40 103.4 101.3 95.1 Source: Nomura Global Economics INVESCO LETTER Special Feature When should you invest in floating rate funds? Floating rate funds are best suited for investors in a rising interest rate scenario because the interest rate on underlying bonds would tend to be reset to higher levels ■ Personal Finance, P7 QuickPicks Indian economy on path to swift recovery: Finmin report STRATEGIC REFORMS and the rapid vaccination drive has placed the country on the path to swift recovery by enabling the economy to "navigate the ravaging waves" of the Covid-19 pandemic, according to the finance ministry's Monthly Economic Review, reports PTI. Sustained and robust growth in agriculture, sharp rebound in manufacturing and industry, resumption of services activity and buoyant revenues suggest that the economy is progressing well, the September review said. "India is well-placed on the path to swift recovery with growth impulses visibly transmitted to all sectors of the economy...” it said. PAGE 2 On-tap SLTRO scheme for SFBs: RBI issues revised norms THE RESERVE Bank of India (RBI) on Monday issued revised operational guidelines on the special long-term repo operations (SLTRO) scheme for small finance banks (SFBs), reports PTI. In the monetary policy announced last week, RBI had extended the on-tap SLTRO for SFBs till December 31, 2021. This facility was earlier made available till October 31, 2021. RBI, in a statement on Monday, said all SFBs eligible under the liquidity adjustment facility (LAF) can participate in the scheme. PAGE 9 ‘Sony deal unfairly favours Zee founders’ FE BUREAU Mumbai, October 11 INVESCO DEVELOPING MARKETS Fund, the largest shareholder in Zee Entertainment (ZEEL),on Mondaywrote an open letter to the shareholders explaining why it is seeking a change in the management,board,viaanextraordinarygeneralmeeting(EGM). Reiteratingitsdemandofan EGM to remove Punit Goenka asMDandCEOandappointsix additional independent directorsontheboardofZee,theUSbasedfundalsoraisedconcerns on the media firm’s proposed merger with Sony Picture Networks India as it “unfairly” favours the founding family. In the open letter, Invesco has said that since the eve of Invesco’s EGM requisition on September 11, Indian indices had more than doubled in the preceding five years.However, during this period ZEEL’s stock had more than halved,but rose Invesco reaffirms resolve to call for EGM to hold board accountable Says board's lack of governance oversight resulted in Zee's entanglementwith financial distress offounders Cites Zee's prolonged underperform ance, governance failures Says ZeeSony deal ‘casually’ mentions promoter family to have right to raise stake Calls deal a camouflage to divert and distract from the primary issues by40% afterthe EGM requisition. This indicates years of frustration among shareholders and an appetite forchange, the letter alleged. Continued on Page 10 Non-food credit growth at 18-month high WITH THE onset of the festive season, non-food credit grew6.75%y-o-yduringthe fortnight ended September 24, the fastest in nearly 18 months,reportsfeBureauin Mumbai.Creditoutstanding alsorecordedpositivegrowth Guido Imbens, Stanford University Past Nobel Economics prizeshavebeendominatedby US institutions andthiswas no exception. Canada-born Card currently works at the University of California, Berkeley; Angrist, a dual US and Israeli citizen,atMassachusettsInstitute of Technology; and Dutch-born Imbens at Stanford University. FE BUREAU Nov 8 CIL ON Monday said it has scaled up the supply of coal to power utilities across the country to 1.51 million tonne (MT) per day during the past four days of the current month, reports PTI. and books of accounts of LIC till September being readied Oct 11 CIL scales up supply to power plants to 1.51 MT per day WITH CRUDE OIL prices inching closer to the $85 mark and the greenback strengthening, the rupee on Monday depreciated sharply against the dollar, losing 37 paise to close at a 15-month low of 75.36. This is the first time the Indian currency has closed below the 75 level this year. Bonds sold off for the second straight session on Monday, driving up the yield on the benchmark to 6.345%, up 3 bps over Friday’s close and to the highest levels since April 17 2020. Currency experts observed that apprehensions rising crude oil prices could push up the import bill, and narrow the current account surplus, are leading to the rupee’s weakness. Last Friday, the rupee had fallen by20 paise to end at 74.99. Moreover, uncertainty surrounding the impact of the taper by the US Fed on capital flows,is adding to the nervousness.The Fed is expected to start normalising policy, by stopping purchases ofbonds, in November. Back home, although Reserve Bank of India (RBI) left key rates and its accom- issue bonds to clear current Air India liabilities and servicing of debt ■ Valuation Sep 13 INDIA HAS received the third set of Swiss bank account details from Switzerland as part of an annual exercise under which the European nation shared particulars of nearly 33 lakh financial a/cs with 96 nations, reports PTI. Jul 19 India gets third set of Swiss bank accounts details Aug 16 BHARTI-BACKED OneWeb has partnered with NewSpace India, the commercial arm of Isro, to use Indian-built PSLV and the heavier GSLVMkIII as potential platforms to launch OneWeb’s satellites in India from 2022, reports fe Bureau in New Delhi. FE BUREAU Mumbai, October 11 ■ AIAHL to HAVINGCOMPLETEDTHEprivatisation process of Air India, thegovernmentisnowfocussed on completing the sale process of BPCL. It also plans to move fast on the listing of Life Insurance Corporation (LIC). In an interview with FE, department of investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey said he’s hopeful of these two bigticket transactions materialising byMarch 31,2022. He said plans are afoot to invitefinancialbidsforBPCLby Decemberandfilingofthedraft red herring prospectus (DRHP) for LIC with the Securities and Exchange Board of India (Sebi) within December-January period.“Wewillsoonreviewhow far the due diligence for BPCL has progressed…We are trying forthetransactioninthisfinancialyear,” Pandeysaid. Jun 21 OneWeb partners Isro arm to launch satellites in India Rupee falls,yields rise; stocks at new highs WORK IN PROGRESS PRASANTA SAHU New Delhi, October 11 Apr 26 LED BY a sharp 249 percentage points rise in rural joblessness rate, India’s unemployment rate shot up to 8.86% for the week ended October 10 compared with 7.56% a week earlier, data complied by Centre for Monitoring Indian Economy (CMIE) showed, reports fe Bureau in New Delhi. BPCL financial bids to be invited by December, LIC IPO DRHP by January, says DIPAM secy May 24 Unemployment rate shoots up to 8.86%: CMIE data MIXED TRENDS Hope to close BPCL stake sale, LIC IPO by March: Pandey Mar 1 DIESEL PRICE on Monday breached the `100-a-litre mark in Kerala and Karnataka as fuel prices were hiked yet again to align domestic rates with firming international oil prices, reports PTI. TIME TABLE Mar 29 IN THE NEWS Diesel price soars to `100 a litre in Kerala, Karnataka of 0.5% between April 9 and September24againsta0.8% drop during the comparable period last year.Loans worth `108.94lakhcrorewereoutstanding at the end of the fortnightunderreview—the highest ever. ■ Page 9 Kolkata
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.