Maruti Suzuki pays out 5% of its revenue as royalty to its Japanese parent. Toyota’s India arm pays 3.4 per cent. Others, too, do so in similar or bigger measure. And now when a series of headwinds, including the Covid-19 crisis, have reduced their sales by more than a half, these carmakers have been shouting from the rooftop about high taxes on cars in India, which comes to around 28 per cent or so. When auto firms on Thursday made a representation to the commerce ministry, seeking tax relief, the minister turned the table and told them to find ways to cut royalty payments to make their ends meet. Desperate times call for desperate measures, and that applies both ways.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 3 points lower at 7 am (IST) this morning, signalling a flat start ahead for Dalal Street. |
| On Thursday, Nifty50 saw selling pressure and ended up forming a small bearish candle on the daily chart with a long upper wick. Analysts said it needs to protect its 20-day exponential moving average to avoid any big selloff |
| Stocks in Asia were mixed on Friday though remained on course to climb for the first week in September. Shares in South Korea and Australia retreated, while Japan was flat. Declines at Tencent Holdings weighed on Hong Kong's stock market. Shanghai Composite was little changed. |
| US stocks fell on Thursday as technology-related shares slid for a second day and data suggested the labor market had shifted into low gear amid fading fiscal stimulus. The S&P 500 ended down 0.84%, and the Nasdaq Composite dropped 1.27%. Nasdaq's losses put the index down 10% from its closing record, confirming a correction began on Sept. 2. |
| Oil prices drifted lower on Friday, pausing after three days of gains, as producers prepared to resume operations in the Gulf of Mexico. Brent crude was down 6 cents at $43.24 a barrel, while WTI futures fell 6 cents to $40.91 |
| The rupee depreciated by 14 paise to end at 73.66 against the US dollar on Thursday tracking muted domestic equities and stronger greenback in the global markets. |
| The dollar index fell 0.35%, while the euro rose 0.05% to $1.1853. The Japanese yen strengthened 0.01% versus the greenback at 104.72 per dollar, while Sterling was last trading at $1.2977, up 0.04% on the day. |
| Gold and silver prices in India fell sharply on Thursday amid a decline in global rates. On MCX, gold futures declined 0.85% to Rs 51,391 per 10 gm while silver futures plunged 1.4% to Rs 67,798 a kg. In global markets, gold prices eased to $1,950 an ounce amid a stronger US dollar. |
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FTSE rejig can pump $800m into D-Street… Foreign funds could pump in about $800 million into Indian stocks with global index services provider FTSE adding more stocks or increasing weightages of existing ones as part of the rebalancing of its Global Equity Index Asia Pacific ex-Japan and China. India’s second-largest private sector lender ICICI Bank is likely to be the biggest beneficiary of the rebalancing with an inflow of Rs 1,000 crore. Tata Consumer, Adani Green, Indraprastha Gas and PI Industries are the other stocks that could benefit from the FTSE revamp.
Read More Three IPOs coming next week… The IPO market is buzzing once again with three initial public offers â€" CAMS, Chemcon Specialty Chemicals and Angel Broking â€" opening for subscription next week. This comes after the huge success of the last three â€" Rossari Biotech, Happiest Minds Technologies and Route Mobile. Happiest Minds made a stellar debut on Thursday, listing at Rs 351 on BSE, a 111% premium over its issue price.
Read More Govt panel may suggest compound interest relief… The committee headed by former comptroller and auditor general (CAG) Rajiv Mehrishi may suggest some relief on compound interest payments during the six-month loan moratorium that ended August 31, ET reported quoting sources. It’s also likely to point out that the burden of any relief cannot be put on bank balance sheets or depositors, as they are also victims of the pandemic, the report said.
Read More DRL on a high on Covid drug trial… Drug major Dr Reddy’s Labs is one Indian pharma company that has made all the right moves amid the pandemic with the latest being the tie-up with Russian Direct Investment Fund, a sovereign fund from Russia, for conducting clinical trials and distribution of the Sputnik V Covid vaccine in India. The Street cheered the company’s move, with the stock hitting a record high and closing with gains of over 4% on Thursday. The stock has risen 80% in the past six months.
Read More India laps up record US treasuries… India’s holding of US treasuries surged by a record $25.3 billion in just two months as the central bank sought safe-haven assets amid a surge in forex reserves, preventing the rupee from climbing to uncompetitive levels. While the holdings may be safe, the low returns from those investments could crop the RBI’s earnings, potentially reducing its payout to the government amid record low interest rates.
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Lead indicators give mixed signals on economy… Ratings agency ICRA said high frequency lead indicators for August suggest a fragmented recovery of the Indian economy is under way. The output of Coal India, motorcycles and rail freight traffic posted a turnaround to show expansion in August after contracting in the previous month, while the pace of contraction in the production of scooters and passenger vehicles, domestic airlines’ passenger traffic, port cargo traffic, GST collections, e-way bills issuances and the consumption of ATF and petrol narrowed at a varying rate in August.
Read More 6 million white-collar jobs loss in Aug… Nearly six million white-collar professionals such as engineers, physicians and teachers lost their jobs in the four months to August as the Covid-19 pandemic took hold, wiping out gains in such employment since 2016, according to CMIE. Over the May-August period, five million industrial workers also found themselves out of work, it said.
Read More Govt stake sale credit negative for PSBs… The proposed divestment of majority government stake in six state-owned banks -- IOB, UCO Bank, BoM, PSB, BoI and Central Bank of India --- that were left out of the merger scheme will be credit negative for them, according to ICRA. The absence of majority sovereign ownership could leave their standalone credit profiles low within the investment grade, ICRA said.
Read More Meanwhile... Sebi orders uniform NAV rule… Sebi has asked mutual funds to uniformly apply NAV across schemes upon realisation of funds. The markets regulator also tightened rules on the processes that fund managers follow to buy shares. The new rules will become effective from January 1. Currently, mutual fund investors with cheque values of less than Rs 2 lakh per application get the NAV of the product on the same day of deposit, but those who invest more than Rs 2 lakh get the NAV of the day the fund house realised the cheque.
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