Business

New Delhi, Jan 28 (IANS) Morgan Stanley on Tuesday said that it expects the Reserve Bank of India (RBI) to commence the rate easing cycle with a 25-bps rate cut, reflecting the current domestic growth-inflation dynamics.

In addition, “we expect the Central bank to add durable liquidity and keep a close watch on currency to limit excessive volatility,” said the global financial services leader in a note.

The RBI’s Monetary Policy Meeting (MPC) is scheduled to take place on February 7 and global brokerage expects the MPC to retain its neutral stance, adding that the consensus is also penciling in a rate cut from February.

Headline Consumer Price Index (CPI) softened to 5.2 per cent Year on Year (YoY) in December 2024, led by slowing food prices and core CPI inching down.

“We expect disinflation in food prices to gather further pace and thereby support the disinflationary momentum in headline CPI as it averages 4.5 per cent YoY in QE March 2025 (in line with the RBI's estimates of 4.5 per cent),” said Morgan Stanley.

In order to ensure orderly liquidity management, the RBI has taken measures such as Voluntary Retention Routes (VRRs) of higher quantum, daily VRR since January 16, buyback of government securities (Rs 750 billion in January) and purchase of government securities in the secondary market (Rs 102 billion in January).

Furthermore, the RBI has also announced additional measures such as Open Market Operation (OMO) purchases worth Rs 600 billion, 56-day VRR of Rs 500 billion, and buy/sell swaps of Rs 5 billion.

The global investment bank said in its note that it expects the RBI to embark on a shallow rate easing cycle.

“The confluence of domestic growth-inflation dynamics – weaker-than-anticipated growth and a moderating inflation trajectory – warrant rate easing to support growth, in our view,” said the note.

However, this is juxtaposed against an adverse external environment, as demonstrated by dollar strength, higher for longer stance of the Fed, and volatility in global capital flows leading to weakness in the currency.

“Therefore, in our base case, we continue to expect a shallow rate easing cycle of a cumulative 50 bps, starting from February. In addition, we expect the RBI to continue to undertake liquidity management, in an attempt to mitigate outflows resulting from FX intervention and ensure that domestic financial conditions do not tighten significantly,” the brokerage noted.

--IANS

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New Delhi, Jan 27 (IANS) Amid the rising cases of Guillain Barre Syndrome (GBS) in Maharashtra's Pune, the Union Ministry of Health and Family Welfare on Monday deputed a seven-member team to support public health interventions and management in the state.

Pune has so far reported 111 cases of GBS -- a potentially paralysing nerve disorder.

Maharashtra Health Minister Prakash Abitkar said on Monday that 17 patients diagnosed with GBS have been put on ventilators.

The Centre's high-level team consists of multi-disciplinary experts who aim to support the state health authorities in instituting public health interventions and management given the spurt in suspected and confirmed cases of GBS.

"The Central team to Maharashtra comprises of seven experts drawn from National Centre for Disease Control (NCDC) Delhi, NIMHANS Bengaluru, Regional Office of Health and Family Welfare, and National Institute for Virology (NIV), Pune," the Health Ministry said.

This is in addition to three experts from NIV, Pune, who were already supporting the local authorities.

The team will work closely with the State Health Departments to take stock of on-ground situation and recommend necessary public health interventions.

The Union Health Ministry informed of taking proactive steps by monitoring the situation and coordinating with the state.

Meanwhile, the State Health Department in an advisory shared that one can prevent GBS up to a certain extent by taking general precautions such as drinking boiled water/bottled water, washing fruits, and vegetables thoroughly before eating, properly cooking poultry and meat; avoiding raw or undercooked food, especially salads, eggs, kebabs or seafood.

It also suggested keeping raw and cooked foods separate, disinfecting kitchen surfaces and utensils after handling raw meat, as well as adopting general hygiene measures like frequent handwashing with soap, especially before eating and after using the toilet.

--IANS

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New Delhi, Jan 27 (IANS) In a bid to simplify the certification process for exporters and enhance trade efficiency, the government on Monday launched an upgraded Certificate of Origin (eCoO) 2.0 system.

The Directorate General of Foreign Trade (DGFT) unveiled the upgraded system to simplify the certification process for exporters with several user-friendly features, such as multi-user access, which enables exporters to authorise multiple users under a single Importer Exporter Code (IEC).

Additionally, the system now supports Aadhaar-based e-signing alongside digital signature tokens, providing greater flexibility.

An integrated dashboard offers exporters seamless access to eCoO services, Free Trade Agreement (FTA) information, trade events, and other resources.

The platform also introduces an in-lieu Certificate of Origin feature, allowing exporters to request corrections to previously issued certificates through an easy online application process, according to the Ministry of Commerce and Industry.

As of January 1, the electronic filing of Non-Preferential Certificates of Origin has become mandatory via the eCoO 2.0 platform.

This trade facilitation initiative has been streamlining the certification process, and improving turnaround times for exporters, marking a significant advancement in enhancing the ease of doing business.

“The platform processes over 7,000 eCoOs daily, including both preferential and non-preferential certificates, connecting 125 issuing agencies which includes 110 national and regional chambers of commerce and industry, over 650 issuing officers and all Indian exporters under one unified system,” informed the ministry.

DGFT has introduced the procedure for availing online Back-to-Back Certificates of Origin (Non-Preferential).

These certificates cater to goods not of Indian origin, intended for re-export, trans-shipment, or merchanting trade.

Issued based on documentary evidence from the foreign country of origin, the Back-to-Back CoO ensures transparency and accuracy by explicitly mentioning details of the origin and supporting documents, said the ministry.

—IANS

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New Delhi, Jan 26 (IANS) The total investment announcements stood at Rs 32.01 lakh crore in the nine months this fiscal (FY25), marking a 39 per cent increase from Rs 23 lakh crore in the same period last fiscal, reflecting a positive investment outlook, the government said on Sunday, citing a recent report by the State Bank of India (SBI).

The private sector accounted for nearly 56 per cent (FY24) and nearly 70 per cent (nine month in FY25) of these announcements in the April-December 2024 period, signalling strong corporate confidence.

As of March 2024, the gross block of Indian corporates reached Rs 106.50 lakh crore, compared to Rs 73.94 lakh crore in March 2020.

Over the last five years, an average of more than Rs 8 lakh crore has been added annually to the corporate gross block.

Additionally, capital work in progress stood at Rs 13.63 lakh crore in March 2024, indicating strong ongoing project development, said the SBI report.

India’s investment ecosystem and external commercial borrowings (ECBs) have witnessed significant developments over the past few years, according to the Ministry of Finance.

The recent report by the State Bank of India (SBI) has highlighted trends in investment announcements, private sector’s contribution, and role of ECBs in corporate financing.

Investment activity in India continues to grow at a rapid pace, with significant contributions from the private sector.

Household Net Financial Savings (HNFS) in India improved to 5.3 per cent of GDP in FY24 from 5 per cent in FY23.

Additionally, savings in physical assets increased from 12.9 per cent of GDP in FY23 to 13.5 per cent in FY24.

Investment as a share of GDP has improved in recent years, led by both government and private sector contributions.

In FY23, government investment reached 4.1 per cent of GDP, the highest since FY12. Private corporate investment rose to 11.9 per cent of GDP in FY23, its highest level since FY16.

The share of private investment is projected to further increase to around 12.5 per cent in FY24, reflecting improved business sentiment. The total outstanding ECBs stood at $190.4 billion as of September 2024, according to the report.

By November 2024, total ECB registrations stood at $33.8 billion. Nearly half of the registration, in FY24, are for the import of capital goods, modernisation, local capital expenditure, and new projects.

—IANS

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New Delhi, Jan 26 (IANS) At least 30 startups raised $248.87 million in funding last week as the Indian startup ecosystem continues to shine due to strong fundamentals of the economy.

Out of these, five were growth-stage deals, while 24 were early-stage deals. While one startup has not given information about its funding.

According to Entrackr's report, in a growth-stage deal, building material platform Infra.Market has raised $125 million in a Series F round. Agritech startup Arya.ag has raised $30 million in debt funding from HSBC.

At the same time, industrial robotics company Ati Motors raised $20 million in a Series B round led by Walden Catalyst Ventures and NGP Capital. Apart from this, B2B e-commerce platform Aris Infra Solutions and SaaS company VuNet Systems also raised funding.

Apart from this, 24 early-stage deals have taken place in the week ending January 25. In this, companies raised funds worth $57.66 million. D2C skincare brand Deconstruct was at the forefront of early-stage funding, followed by beer brand Medusa, home service marketplace Snabbit, real estate document search platform Landeed, agritech startup KisanKonnect, deeptech CapGrid.

Meanwhile, fintech startup Spare8 has also raised funding, however, the amount was not disclosed.

Analysis of city-wise funding data shows that between January 20 and 25, Bengaluru-based startup eight startups raised funds. After this, seven from Delhi-NCR, five from Mumbai, and two each from Ahmedabad and Bhubaneswar have been successful in raising funding.

During this period, the market has seen some big acquisitions. Hatsun Agro acquired dairy startup Milk Mantra. While, Hindustan Unilever Limited (HUL) purchased a 90.5 per cent stake in D2C skincare brand Minimalist for about $350 million (Rs 2,955 crore), Singapore-based PE (Private Equity) firm Everstone buying a majority stake in SaaS company Wingify for $200 million.

--IANS

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Mumbai, Jan 26 (IANS) Central Depository Services (India) Limited (CDSL), the country’s largest depository has reported a 21.5 per cent surge in year-on-year net profit to Rs 130 crore in the October-December quarter of the current financial year (2024-25), compared to Rs 107 crore in the same quarter of 2023-24.

The total revenue of the country’s largest depository service company for the third quarter went up to Rs 298 crore, from Rs 236 crore in Q3FY24. The company had raked in a revenue of Rs 359 crore in Q2FY25.

CDSL announced that it has become the first depository to register over 14.65 crore demat accounts as of December 31, 2024. During the October-December quarter of the current financial year around 92 lakh new demat accounts were opened.

CDSL is India's leading depository for holding and transacting securities electronically. It also facilitates the settlement of trades on stock exchanges.

In the March-ended quarter of FY24, CDSL registered a record 1.09 crore Demat accounts taking the total number of these accounts past the 11.56 crore mark at the time. The number of Demat accounts in India has been growing steadily, even during periods of market uncertainty. During the fiscal year 2023-24, over 3.26 crore new Demat accounts were opened with the highest quarterly registration.

The growth in Demat accounts is a sign of continued interest from retail investors in the stock market.

A Demat account is a digital account that holds securities like stocks, bonds, mutual funds, and ETFs. It's similar to a bank account, but instead of money, it stores financial securities.

The advantage of a Demat account is that it is secure and reduces the risk of theft or forgery. It is also convenient as one can open a Demat account online and access it through a mobile app or NetBanking.

Besides, Demat accounts enable the electronic transfer of shares, which makes trades faster. They also confer the advantage of consolidating all investments in one place which makes it easier to monitor them.

CDSL was set up in 1999 and plays a crucial role as the Indian Market Infrastructure Institution (MII), facilitating electronic holding and transaction of securities and facilitating settlement of trades. It provides services to a broad spectrum of capital market entities, including depository participants, issuers, investors, RTAs, clearing corporations, and exchanges.

--IANS

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Mumbai, Jan 26 (IANS) The Indian stock market outlook for the next week will be guided by the Union Budget, q3 results and global economic cues such as crude oil price, dollar index and US GDP growth rate data.

The Union Budget 2025 will be presented in Parliament on February 1 by Finance Minister Nirmala Sitharaman.

Companies like ACC, Adani Total Gas, Coal India, Piramal Enterprises, Tata Steel, Hyundai Motor India, JSW Energy, Bajaj Finance and Bajaj Auto will present their third-quarter results of FY25 in the next week.

Last week, the Indian equity market continued its downward trajectory, grappling with persistent technical and fundamental headwinds. Both Nifty and Sensex closed with a decline of 0.5 per cent respectively. This was the third consecutive week when the stock market witnessed a sell-off. The Nifty Realty index fell the most by 9 per cent. However, the Nifty IT index saw a rise of about 3.5 per cent.

Foreign institutional investors (FIIs) sold shares worth Rs 22,504 crore in the cash segment. The FIIs outflows exceeded Rs 69,000 crore so far this month.

Meanwhile, Domestic Institutional Investors (DIIs) stepped in with strong net inflows of Rs 17,577 crore during this period.

Puneet Singhania, director at Master Trust Group said, "Nifty trades below critical support levels, including the horizontal zone and ascending trendline, as well as the 21 EMA (exponential moving average), 55-week EMA, and the 200-day EMA, confirming a downtrend. The resistance zone at 23,350-23,450 continues to cap any upward momentum, signalling strong selling pressure."

Santosh Meena, head of research at Swastika Investmart, said, "Bank Nifty remains a weak segment, trading in a narrow range of 47,800-49,800. A breakout above the psychological level of 50,000 is needed for a significant recovery, with 50,800 and 51,500 as subsequent targets. On the downside, if it slips below 47,800, the next support levels are at 47,000 and 46,500."

--IANS

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New Delhi, Jan 26 (IANS) The Union Finance Ministry has notified the operationalisation of the Unified Pension Scheme (UPS) as an option under the National Pension System (NPS) for Central government employees with effect from April 1, which will ensure them guaranteed retirement benefits.

“The Unified Pension Scheme shall be applicable to such Central Government employees who are covered under National Pension System and who choose this option under National Pension System,” the Finance Ministry’s notification states.

“Pension Fund Regulatory and Development Authority (PFRDA) may issue regulations for operationalising UPS. The effective date for operationalisation of the Unified Pension Scheme shall be 1st April 2025,” it added.

The new system, the Unified Pension Scheme or UPS, will offer 50 per cent of the average basic pay drawn by a Central government employee over the 12 months before retirement provided he or she completes 25 years of service.

Employees who have put in less than 25 years of service but more than 10 years, will get pension on a proportionate basis.

The contours of the scheme were drawn up following discussions held under the joint consultative machinery, a platform that provides a mechanism to Central government staff to resolve differences with the government.

The Union cabinet led by Prime Minister Narendra Modi on August 24, 2024, approved the new pension policy for nearly 2.3 million Central government employees, unveiling a framework that assured 50 per cent of basic pay as monthly payout, on the request of Central government staff unions who had sought guaranteed retirement benefits.

The government had set up a high-level committee headed by cabinet secretary-designate T.V. Somanathan, the then-finance secretary, in April 2023 to rework the current pension system, known as the new pension scheme or NPS. The move followed widespread grievances that had snowballed into a political hot potato, with some states, in which opposition parties were in power, switching to the previous old pension scheme (OPS) which had proved to be a strain on the financial resources of the government.

However, since it was a populist step aimed at catching votes the political parties had made it a poll issue in states such as Himachal Pradesh.

--IANS

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New Delhi, Jan 25 (IANS) The PM Surya Ghar-Muft Bijli Yojana aims to empower people by making citizens energy-producers as well as enabling them to earn extra income by selling electricity to discoms, Union Minister of New and Renewable Energy, Pralhad Joshi, said on Saturday.

The minister was addressing 750 special guests of Ministry of New and Renewable Energy, invited for witnessing the Republic Day Parade in New Delhi.

“Under the leadership of Prime Minister Narendra Modi, the common people are now at the heart of India's renewable energy revolution. Their work, dedication, and success are proof of what we can accomplish as a nation,” said Joshi.

“The beneficiaries of PM Surya Ghar and PM Kusum are the real Ambassadors of India’s renewable energy movement,” said the minister, appreciating them for leading the charge in India’s renewable energy journey.

Beneficiaries of PM Surya Ghar and PM Kusum from different parts of the country spoke on the occasion and appreciated the timely subsidies being received by them, the ease with which they could register on the PM Surya Ghar portal without human Interventions and the huge savings and zero bills from electricity because of the installation.

“In Dharwad, Karnataka, a beneficiary of PM Surya Ghar achieved zero electricity bills by adopting solar power. With a Rs 78,000 subsidy from the central government, this success story highlights PM Modi’s vision of fostering sustainable and energy-efficient solutions across the nation,” the minister informed.

A PM Kusum beneficiary, Rakesh Rohi from Bulandshahr, Uttar Pradesh told the minister that he installed solar pumps in his farm after being benefited by PM KUSUM Scheme which has vastly improved his yield.

The special guests of MNRE also visited PM Sangrahalaya earlier. Nidhi Khare, Secretary, MNRE, said that the ministry is always ready to learn and listen from the beneficiaries for improving the implementation of the schemes.

—IANS

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Bengaluru, Jan 16 (IANS) A snippet of chess prodigy Gukesh Dommaraju sporting an edgy, on-trend look has taken the internet by storm.

The leaked images show Gukesh donning oversized jackets, trendy accessories, and a statement pair of glasses.

Fans are loving this refreshing take on his persona, with one netizen saying, "Bhai apna celebrity se kam nahi!"

The buzz around this snippet has only added to Gukesh’s growing appeal, blending his sharp intellect with a flair for contemporary style. Whether it’s a nod to GenZ culture or simply a playful experiment, his look has struck a chord with fans and fashion enthusiasts alike.

For now, it’s safe to say Gukesh has made a winning move, both in chess and in style. The anticipation is real - what made this star go for this makeover?

Indian Grandmaster Gukesh, who scripted history by becoming the youngest-ever World Champion, beat Ding Liren of China in the 14-game match in Singapore. The 18-year-old from Chennai capitalised on a blunder by Ding in the winner-takes-all 14th game to dethrone the reigning champion, winning the match 7.5 to 6.5 and become the second Indian after Viswanathan Anand to become the World Champion in classical chess.

Gukesh broke the four-decade-old record of chess legend Garry Kasparov, who won the title in 1985 at the age of 22 years, 6 months, and 27 days. He is the second Indian to win the World Chess Championship title, claiming the title in just over a decade after five-time winner Anand had lost the title to Magnus Carlsen of Norway in Chennai in 2013. Carlsen abdicated the crown in 2023, paving the way for Ding to beat Ian Nepomniachtchi.

--IANS

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