QBiz: Retail Inflation At 2.19%; FASTag Sales Treble in One Year

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(File Photo: Reuters)

1. Stage Set for RBI Rate Cut as Retail Inflation Falls to 2.19%

India’s retail inflation and wholesale inflation fell to multi-month lows in December amid signs of weakening economic recovery, creating wiggle room for the Reserve Bank of India’s (RBI) monetary policy committee to cut interest rates at its meeting on 7 February.

Data released by the Central Statistics Office (CSO) showed consumer price index (CPI) based inflation at an 18-month low of 2.19 percent in December against 2.33 percent a month ago, as food prices continued to slide.

(Source: Livemint)

2. Hotstar Adds to Streaming Drama with Originals

Star India’s video streaming service is counting on original programming to boost viewership. Hotstar has tied up with 15 filmmakers, including Salman Khan and Shekhar Kapur, to offer exclusive content in addition to the serials, movies and sports programmes licensed from its parent.

Titled Hotstar Specials, the exclusive shows will start streaming by the end of March.

Hotstar’s foray into original programming comes at a time when rivals are focusing aggressively on this space.

(Source: Livemint)

3. Jet May Strike ‘Rescue’ Pact with Etihad

Etihad Airways may increase its stake in Jet Airways under a scheme wherein it will hold 49 percent directly and bring in a ‘sleeping partner’ to obtain larger control of the debt-ridden airline.

Existing FDI rules bar foreign airlines from owning more than a 49 percent stake. Etihad currently owns 24 percent of Jet Airways and has the leeway to increase its stake up to 49 percent.

However, according to banking sources, the Abu Dhabi-based airline is keen on greater control if it is to infuse more funds in Jet.

(Source: The Hindu Business Line)

5. With Central Push, FASTag Sales Treble in One Year

Sales of FASTag — the RFID chip stickers that allow vehicles to zoom through toll booths on national highways — have more than trebled in 2018, with 37.37 lakh tags sold by December. However, they still account for just a fourth of the tolls collected.

The Centre capped the price of the tags at Rs 100 inclusive of GST, tied up with state governments to ensure the tags are valid at State toll plazas, and made arrangements to sell the tags at petrol pumps, which in turn led to higher sales.

(Source: The Hindu Business Line)

6. Fund Managers Build Positions in Robust NBFCs to Cash in on IL&FS Overhang

The share prices of non-banking financial companies (NBFCs) have been one of the major casualties of the crisis caused by the Infrastructure Leasing & Financial Services (IL&FS) default in September last year.

However, fund managers are using this correction to build positions in NBFCs they feel are better-placed to deal with liquidity challenges.

Anand Shah, head (investments) and deputy chief executive officer of BNP Paribas Mutual Fund (MF), said, “We have increased our exposure to NBFCs in September and October, especially in the business-to-consumer NBFCs.

(Source: Business Standard)

7. NSE to List Well-Governed Firms in New Category to Help New Investors

Investors will soon be able to track all companies with high standards of corporate governance in a special category on the National Stock Exchange of India, said its Managing Director (MD) and Chief Executive Officer (CEO) Vikram Limaye.

“As a frontline regulator, the NSE has always emphasised high standards of corporate governance. This initiative of ours constitutes a paradigm shift from a mandate-driven system to an incentive-driven system,” said Limaye.

(Source: Business Standard)

8. Oyo Aims at 1 Million Rooms to Become World's 'Largest' Hotel Chain

Hospitality firm OYO Hotels and Rooms on Monday, 14 January, said it is working on a roadmap for 1-million room inventory from the existing count of 4.6 lakh.

"We will have one million rooms inventory into our fold in the near distant future. I think, it should happen in a year and a half," OYO CEO, India and South Asia, Aditya Ghosh said.

This will help OYO to become the "world's top player from number three now", he claimed.

At present, OYO has over 13,000 franchised and leased hotels, and over 450,000 rooms, adding over 64,000 rooms every month, globally.

(Source: PTI)

9. Govt May Fall Short of Rs 2.45-Trillion Non-Tax Revenue Target Despite RBI Funds

The Reserve Bank of India (RBI) could pay between Rs 20,000 crore and Rs 25,000 crore to the government, but even that would not be enough for it to meet its non-tax revenue target of Rs 2.45 trillion.

There are already concerns over GST collections and the government overshooting expenditure in this fiscal year. Missing the non-tax revenue target could put more pressure on the fiscal deficit target of 3.3 percent of gross domestic product (GDP).

(Source: Business Standard)