1. Petrol, Diesel Set To Get Cheaper As Centre Cuts Excise Duty
The government reduced the basic excise duty on petrol and diesel by Rs 2 per litre as it looks to cushion the impact of rising crude prices.
The reduction, applicable on both branded and unbranded fuel, will come into effect from 4 October, the Central Board of Excise and Customs said in a media statement. “This has been done to cushion the impact of rising international prices of crude petroleum oil,” the CBEC said.
The duty cut will cause a revenue loss of about Rs 26,000 crore for the full year, and Rs 13,000 crore in the remaining part of the ongoing financial year, the statement said.
(Source: BloombergQuint)
2. Monetary Policy Review: Why RBI Might Not Cut Rates Today
The six-member Monetary Policy Committee (MPC), headed by Reserve Bank of India Governor Urjit Patel, will announce its interest rate decision today.
Analysts largely expect the central bank to maintain the status quo, but add there could be a rate cut later in the financial year. There are also some who see the rate-cut cycle, which started on 15 January 2015, by bringing down the repo rate to 7.75 percent from 8 percent, to have reached its end.
Currently, the repo rate stands at 6 percent. The following charts illustrate why the RBI won’t be in a hurry to cut rates, even as growth is slowing. Inflation, which the central bank targets to keep under check, surprised analysts with its sharp rise in the past two readings.
(Source: Business Standard)
3. Economy on the Rebound, to Pick Pace in Q2: Government
The government sees the decline in growth as a hiccup and expects the economy to pick up pace in the fiscal second quarter as teething troubles with GST get resolved and the effect of demonetisation wanes. The latest high-frequency indicators such as commercial vehicles sales, core sector growth and manufacturing PMI bolster this contention.
"The economy is going through a phase of readjustment to a system of formalisation that entails greater tax compliance and transparency in financial transactions," finance secretary Ashok Lavasa said. "Things are beginning to settle down and we are on the recovery path." To be sure, some experts regard the decline as being more structural in nature, having begun a year ago, predating demonetisation.
(Source: Economic Times)
4. Mallya Arrested Briefly For Money Laundering Charge Related To F1 Team
Vijay Mallya was briefly arrested for the second time in five months and let off on bail in London on Tuesday as India brought a new money laundering charge against him for allegedly diverting bank loans to his Formula One team Force India.
The new charge has been added to the original fraud case filed by the Enforcement Directorate in the Rs 900-crore IDBI Bank-Kingfisher Airlines loan case. It is “essentially showing where the money went to, for example, it is alleged that some of the funds ended up with the Force India racing team” the UK Crown Prosecution Service told BloombergQuint in an emailed statement.
(Source: BloombergQuint)
5. Sensex, Nifty Close Higher Ahead of RBI Rate Review
Stocks hit all the right notes after a long weekend and remained well above the baseline throughout the day as the Sensex on Tuesday jumped 214 points ahead of the outcome of the Reserve Bank of India (RBI) monetary policy meet. The Nifty also settled above the crucial 9,800-mark.
Interest rate sensitive auto stocks in particular turned favourites on robust sales data for September amid expectations of favourable policy action from the central bank, analysts said. The decision of the six-member monetary policy committee (MPC) is due on Wednesday.
(Source: PTI)
6. September Factory Activity Expands for Second Straight Month
Indian manufacturing activity expanded for a second consecutive month in September although firms struggled to sustain demand, with the price of goods barely increasing, a business survey showed on Tuesday.
The Nikkei/Markit manufacturing purchasing managers’ index (PMI) for September held steady at August’s 51.2, its second month above the 50 mark that separates growth from contraction. Analysts polled by Reuters had forecast the index at 51.9.
(Source: Livemint)
7. RCom Stock Tanks 11% on Aircel Deal Collapse
The Reliance Communications (RCom) stock on Tuesday declined nearly 11 percent, after the merger of its mobile business with Aircel was called off on Sunday, citing legal and regulatory hurdles. Markets were closed on Monday on account of Gandhi Jayanti.
On the BSE, the stock hit a record low of Rs 16.75 during the day before closing at Rs 17.10, its lowest closing since the stock listed in July 2006, following the split of businesses between Mukesh Ambani and Anil Ambani. At Rs 17.10, the stock is down 98 percent from its all-time high of over Rs 800 in January 2008, prior to the global financial crisis.
(Source: Business Standard)
8. Tesla Falters With Model 3 as Output Trails Forecast
Tesla Inc struggled to produce its cheapest model shortly after the car debuted, setting back Chief Executive Officer Elon Musk’s mission to reach mainstream consumers. The automaker built only 260 Model 3s during the quarter ended in September, less than a fifth of its 1,500 -unit forecast.
Output of the sedan that starts at $35,000 — roughly half the cost of the least expensive Model S — was lower than expected because of unspecified "bottlenecks," according to the company.
(Source: Economic Times)
9. Maruti Plans Electric Car, in Talks With Partner Toyota
Maruti Suzuki, the country’s largest carmaker, is finally trying to catch up with its peers by entering the coveted electric vehicle (EV) space, according to people close to the development.
The development is part of Suzuki’s partnership with Toyota, which was signed in February and involves cooperation in technology development and mutual supply of products and components.
“The partnership will essentially look at setting up an electric vehicle platform. Work has already begun but the final details are still being discussed. The first product could be a few years away,” the source said.
(Source: The Hindu Business Line)
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