BACK PAGE, P14 ECONOMY, P3 INTERNATIONAL, P10 Peace Nobel for Japan’s atom bomb group Goyal: EU FTA should be outcome-oriented Tariffs, tax cuts core to Trump's vote pitch MUMBAI, SATURDAY, OCTOBER 12, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXIV NO. 243, 14 PAGES, `12.00 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: 81,381.38 ▲ 230.03 NIFTY: 24,964.25 ▼ 34.20 NIKKEI 225: 39,605.80 ▲ 224.91 HANG SENG: 21,251.98 ▲ 614.74 `/$: 84.07 ▼ 0.09 `/€: 91.98 ▼ 0.16 BRENT: $78.71 ▼ $0.69 GOLD: `75,319 ▲ `785 IN THE NEWS FY25 DIRECTTAX COLLECTIONS AT 51% OF TARGET THE CENTRE’S DIRECT tax collections, after refunds, stood at `11.26 lakh crore in April 1-October 10, accounting for 51% of the full year’s target, official data released on Friday showed. Refunds during April 1October 10 stood at `2.31 lakh crore, which were up 46% on year. ■ PAGE 3 NITITOAPPOINT CONSULTANTFOR RURALJOBS SCHEME AMID REPORTS OF leakages in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), NITI Aayog will appoint a consultant to evaluate the performance of the demanddriven scheme, including adequacy and timeliness of funds, transparency and accountability, reports Prasanta Sahu. ■ PAGE 2 ANALYSTS SEE TCS GAINING WITH DEMAND RECOVERY WHILE NOT RULING out concerns relating to demand and growth outlook, brokerages are broadly optimistic that IT major Tata Consultancy Services (TCS) is well positioned for recovery in the coming quarters driven by AI/GenAI projects and recent deal ramp-ups, reports Padmini Dhruvaraj. ■ PAGE 6 HURRICANE MILTON: FLORIDA STILL WITHOUT POWER MILLIONS OF FLORIDIANS were still without electrical power on Friday, more than a day after Hurricane Milton roared across the midsection of the state, touching off tornadoes and leaving at least 16 people dead, reports Reuters. BLACKROCK'S AUM AT RECORD $11.5 TRILLION UNANIMOUS DECISION ON NEW HEAD SEES GENERATIONAL CHANGE Noel to steer Tata Trusts VIVEAT SUSAN PINTO Mumbai, October 11 IN TRUSTED HANDS ■ Noel is the son TATA TRUSTS, INDIA'S oldest philanthropic institution,sawa generational change on Friday, with NoelTata,67,taking over as chairman,succeeding Ratan Tata, 86, his half-brother, who passed away on Wednesday in Mumbai. The decision,Tata Trusts said in a statement, was taken ‘unanimously’ in separate meetings held on Friday. Noel was already a key trustee of the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. "I am deeply honoured and humbled by the responsibilitythat has been cast on me bymyfellow Trustees. I look forward to carrying on the legacy of Ratan N Tata and the founders of the Tata Group,"Noel said. RatanTata had not named a successorforthe leadership ofTataTrusts before his death,sparking speculation about the future governance of the trusts.That has been laid to rest promptly by the trustees who met on Friday. Consisting of a number of entities, Tata Trusts,which togethercontrol 66% ofTata Sons, the holding company of the $165-billion Tata group,undertakes a number of social initiatives across sectors from water to sanitation, education to environment. The true sway of a Tata Trusts chair became apparent for the first time in 2016 when Ratan Tata led the shock ouster of Cyrus Mistry as Tata Sons chairman.Tata Trusts as the largest shareholder of Tata Sons, oversees the running of the salt-to-software conglomerate, providing it strategic direction. ApartfromTataTrusts,ShapoorjiPallonjigroup owns 18.4%,Tata group companies own 12.8% and theTata familyowns 2.8%ofTata Sons. of Naval H Tata & Simone Tata, and is married to Aloo Mistry, linking him to the Mistry family ■ He is best- THE NEWLY-APPOINTED chairman of Tata Trusts,67-year-old Noel Naval Tata,finds himself in a unique position, reports Raghavendra Kamath. Besides the Tata surname, he is also the son-in-law of the Mistry family—thus, a part of both the familieswho own 100% ofTata Sons.No wonder, when the Tata Group was scouting for Ratan Tata’s replacement in 2012,he was consideredastrongcontender.However,whenRatanTata gave an interview to foreign media saying that Noel lacked experience, it was perceived as a hint to the selection committee. Twelve years later, Ratan Tata’s half-brother finds himself in the hot seat as chairman ofTataTrusts. ■ Page 4 INSIDE NOEL-TATALED COMPANIES' STOCKS GAIN ‘RATAN TATA MADE PEOPLE SEE THE BIG PICTURE’ ■ PAGE 4 ■ PAGE 4 IIPfall fuels slowdown worry INDIA’S FACTORY OUTPUT growth,asmeasuredbythe Indexof IndustrialProduction(IIP),fellmarginally by 0.1% inAugust.This was the index's first contraction in 22 months. Production shrank on year, mainly due to the statistical effect of a high base and subdued mining & electricity output. The IIP had grown 4.7% in July this year and 10.3% in the year ago period. On a sequential basis too,the IIP declined 2.5% in August. Typically MARGINAL DIP 8 (% chg, y-o-y) 6 4 2 IIP 5.5 6.3 4.2 0 -2 -0.1 Jan ‘24 Mar May Aug ‘24 IIP contracts in August from July, but this year the month-on-month contraction of 2.5% was higher than the previous 12-year average of 0.2%. So far this fiscal, IIP has contracted sequentially in four of the first five months,a pattern thatwas last seen in 2016.“This clearly supports our view that the economy is slowing down, which is visible in other high frequency data as well,” said Upasna Bhardwaj,chief economist,Kotak Mahindra Bank. “One key reason for this phenomenon could be the election cycle, which has impacted capital spending,”saidAbhishekUpadhyay, senior economist, ICICI Securities Primary Dealership. Continued on Page 6 ● NAVI MUMBAI AIRPORT SET FOR 2025 OPENING BLACKROCK'S AUM HIT a record high for the third straight quarter as a US stock market rally boosted inflows, while the world's largest asset manager continued a push to expand its footprint in private markets. Assets managed by BlackRock shot to $11.48 trillion during the period. ■ PAGE 10 FE S P E C I A L S An IAF C-295 aircraft gets a water cannon salute after successfully completing a trial landing at the Navi Mumbai Airport in Mumbai on Friday. The airport, being developed by the Adani Group, is expected to start commercial operations early next year PTI Nexon iCNG driven: Tata’s people’s cars have advanced a lot If the Nano in 2008 was built to a price, the all-new Nexon iCNG is aspirational. ■ MOTOBAHN, P7 Look for dips to pick up gold ETFs Any more Fed rate cuts this year will lead to a further hike in prices ■ PERSONAL FINANCE, P7 decade-old association with the group is expected to hold him in good stead NoelTata combines speedwith caution Continued on Page 9 PRIYANSH VERMA New Delhi, October 11 ■ His over four- known for transforming Trent into one of the country's best-performing listed retailers Cloud on SME Trafiksol; IPO listing put on hold VIVEK KUMAR M Mumbai, October 11 THE SECURITIES AND Exchange Board of India (Sebi) has directed BSE to not proceed with the listing of Trafiksol ITS Technologies until it completes investigation into the disclosuresmadebythecompanyin its draft red herring prospectus (DRHP). The markets regulatorissued an ex-parte interim order saying ‘the attempt to award the software contract to a vendor, who prima facie appears to be a shell entity without anypriorexperienceindevelopinga softwareplatformof thenaturedisclosed by the company in its DRHP, was an attempt to deliberatelymislead investors and divert the IPO proceeds.’ "Therefore, in order to safeguard investor interest,I am of the considered view that issues raised in this order require a detailed investigation," Sebi's whole-time directorAshwani Bhatia said in the order. The regulator will complete the investigationwithin 30 days.In the meantime, it has directed BSE to place the IPO proceeds in an interest-bearingescrowaccount,andnot grant the access of these funds to Trafiksol or its affiliates. The small and medium enterprisecompany’s`44.87croreinitial public offering (IPO) was deferred byBSE on September17 due to certain undisclosed queries. Continued on Page 9 Minimum 15% corporate tax rule likely in I-TAct rejig ‘Enabling provision’ for OECD Pillar-2 to be included in law SIMPLIFYING EXERCISE PRIYANSH VERMA New Delhi, October 11 INDIA MAY END its ambivalence on theminimum15%corporatetaxrule for multinational corporations,and includeanenablingprovisiontocomply with the relevant multilateral mechanism in the Income Tax Act, accordingtoanofficialsource. The provisions of the I-T Act, 1961 are currentlyundera comprehensive review,with a view to make it simplerand more lucid,byremoving redundant sections. The proposed Pillar-2 underthe OECD/G20 Inclusive Framework,which aims to stymie profit shifting among tax jurisdictions by MNCs to minimise their tax outgo,would be ushered in byIndiaaspartofthereview,whichis underway,the source added. “After the enabling provision (for Pillar 2 adoption) is added in the I-T Act,theCBDT(CentralBoardofDirect Taxes)willnotifytherulesafterproper stakeholder consultation,” an official told FE.The government is likely to completetheI-TActreviewbytheend ofJanuaryandintroducethechanges in the Budget for FY26, the person added,requestinganonymity. The Pillar 2-GloBE Rules – which providesforaglobalminimumtaxfor multinational enterprises (MNEs), aimstodeterprofitshiftingbyensuringthatthesefirmsmaintainamini- ■ The provisions of the I-TAct, 1961 are currently under a comprehensive review, with a view to make it simpler and more lucid ■ The Pillar-2 frame-work aims to stymie profit shifting among tax jurisdictions by MNCs to minimise tax outgo ■ The govt is likely to complete the I-TAct review by Jan end & introduce the changes in FY26 Budget ■ Currently, as many as 30 countries have embraced Pillar2, among 130 that signed the relevant multilateral convention mum effective tax rate (ETR) of 15% across all jurisdictions in which they operate. MNEs, as per the rules, are definedasthoseentitieswithaglobal turnoverexceeding€750million. Currently,asmanyas30countries have embraced Pillar-2,among 130 that signed the relevant multilateral convention.The US is yet to implementtheregime,butsomeEuropean Unioncountriesarealreadyonboard. Continued on Page 6 Rupee at all-time low; breaches 84 SACHIN KUMAR Mumbai, October 11 THE RUPEE ON Friday plunged 9 paise, breaching the 84 mark against the dollar,to close at an alltime lowof 84.071 as foreign portfolio investors sold equities and oil prices rose due to continued tension in the West Asia. Overseas investors have turned heavy sellers of equities over the last nine sessions, while Brent crude oil futures have jumped 10% so far in October. Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth `4,163 crore, according to exchange data. FIIs sold shares worth `62,874 crore ($7.5 billion) in the past nine days. “Recent Chinese economic policies have been instrumental in shifting flows towards China from other economies, including India. In October itself, India has witnessed outflows of over `54,000 crore from equities,” Kunal Sodhani, vice president – treasury, Shinhan Bank,told FE.The Reserve Bank of India was seen selling dollars at 83.98-83.99 levels,he said. The central bank intervenes in the forex market to reduce the any sharp volatility in the rupee. Instead of targeting any specific RUPEE VS DOLLAR 83.21 (Inverted scale) Oct 3, 2023 84.07 Oct 11, 2024 Source: Bloomberg level for the currency, the RBI focuses on lowering sharp fluctuations. At the interbank foreign exchange, the rupee opened at 83.97,1 paisa higher than the previous close. It traded between the high of 83.96 and the low of 84.0975.It finallyclosed at 84.071, compared to the previous close of 83.9775 on Thursday. Experts say high forex reserves provide an assurance to the market that the rupee is unlikelyto experience any significant fluctuation in near future. Continued on Page 9 INVESTORS AND ANALYSTS FLAG CHALLENGES WITH THE TECHNOLOGY Tesla opens doors to robotaxi amid fanfare & skepticism CHRIS KIRKHAM Los Angeles, October 11 BIG BET ■ Tesla is aiming to leapfrog incumbent FOR A BUSINESSMAN who perpetually struggles with broken promises,Elon Musk gave himself quite a to-do list Thursday night at Tesla's long-awaited Hollywood unveiling of its driverless robotaxis. After traversing the fake streets of the Warner Bros movie studio set in a sleek, silver two-door "Cybercab" prototype, Musk promised that the company's popular Model 3 and Model Y vehicles would be able to operate without driver supervision in California and Texas by next year. would start building the fully autonomous Cybercab by 2026 at a price of less than $30,000 ELON MUSK, CEO, TESLA ■ Musk said the company ■ He promised that the company's popular Model 3 and Model Yvehicles would be able to operate without driver supervision Musk said the company would startbuildingthefullyautonomous Cybercab by 2026 at a price of less than $30,000, and showed off a robovancapableoftransporting20 peoplearoundtown-whichhesaid self-driving players, including Alphabet'sWaymo, by pursuing a lower-cost technological path I THINK THIS WILL BE THE BIGGEST PRODUCT EVER ■ Tesla shares fell nearly 10% in early trading on Friday would reshape cities by "turning parking lots into parks." Later came the dancing humanoid robots that also mixed drinks at the bar, which Musk said Tesla will also eventually sell for $20,000 to $30,000 a piece. "I think this will be the biggest product ever,of any kind,"he declared. Thursday night's electronic dance music-infused event had the signaturetrappingsofMusk'ssalesmanship, but some Tesla investors and experts said they were hoping for more concrete details on how the company plans to transform from an automaker into an autonomous driving and artificial intelligence titan with a solid business plan. Tesla shares fell nearly 10% in early trading on Friday. The stock, which has been pummelled in recent years by fears of cheaper EV rivals eating into Tesla's market share, is up nearly 50% since April when Musk announced the shift to robotaxis.Still,shares are down 8% over the last year, compared with a 33% increase in the broad-market S&P 500 index. "Hisvisionislovely,butsomebody hastoactualiseit,"saidRossGerber,a TeslashareholderandCEOofGerber Kawasaki Wealth and Investment Management."For now,for the next 24 months,Tesla has to sell EVs.Why aren'twe focusedon that?" Gerber said he was happy to see products like the Cybercab and the robovan, but hoped to also see a more traditional, lower-priced mass-market vehicle that the company could sell in the near future.