1. More Cheer for Economy After Crude Respite
Retail inflation moderated to a 13-month low in October while industrial growth held steady in September, the government said, bringing more festive cheer to the economy following a decline in crude prices.
Retail inflation as measured by the consumer price index (CPI) eased to 3.31 percent in October from 3.7 percent in September (revised from the earlier estimate of 3.77 percent), reducing chances of the Reserve Bank raising interest rates at the next monetary policy review, scheduled for December.
Industrial production grew 4.5 percent in September compared with the upward revised 4.7 percent in August, data released by the statistics office showed. August growth had initially been estimated at 4.3 percent. For the first six months of the year, factory output as measured by the index of industrial production (IIP) grew 5.1 percent compared with 2.6 percent in the year-earlier period.
(Source: The Economic Times)
2. Digital Ad Rates Shoot up as Indians Get Hooked on Web
Starting January 2019, YouTube, the video-sharing platform owned by Alphabet (earlier Google), is once again doubling the rate of its high-impact fixed homepage advertisement — from ₹70 lakh a day at present to ₹1.4 crore, according to a letter YouTube sent to various media agencies.
Even as media experts debate on the return on investment (ROI) on digital spends, several media agencies The Economic Times spoke to said that the trend of digital platforms like Facebook, Twitter, and Instagram, raising rates between 20-30% annually will continue in 2019, too, as time spent by users and engagement levels increase.
The media agencies have been projecting a higher – over 30% — growth rate for digital media for the last three years.
(Source: The Economic Times)
3. Retail Inflation Eases to 3.31% in Leeway to RBI to Hold Rates
The Reserve Bank of India (RBI) is likely to keep interest rates unchanged in its bimonthly monetary policy review on 5 December, with retail inflation unexpectedly easing to a 13-month low in October, driven by lower food prices.
Data released by the statistics department showed that the consumer price index (CPI)-based inflation rate slowed to 3.31 percent in October from 3.7 percent a month ago, on the back of lower prices of pulses, vegetables and sugar, while factory output—measured by the index of industrial production (IIP)—decelerated to 4.5 percent in September from a revised 4.7 percent in the previous month as manufacturing growth eased.
(Source: LiveMint)
4. Handset Prices May Go Up on Weak Rupee
Consumers should be prepared to spend more on buying new smartphones with more brands expected to follow Chinese handset makers Xiaomi and Realme’s lead in raising prices of some of their devices to offset the impact of a falling rupee against the dollar which has pushed up production costs.
Analysts said that other players including Samsung, Oppo and Vivo are likely to follow suit and increase prices of existing models. Industry experts said the 15 percent rupee depreciation against the dollar since the beginning of the year warrants a 5-8 percent increase on new models.
(Source: The Economic Times)
5. India's sugar exports hit by falling prices; govt offers transport subsidy
India's sugar exports have come to a standstill after a sharp fall in prices in the last two weeks.
Raw sugar prices in the benchmark Chicago Mercantile Exchange (CME) for near-month delivery declined by 4 percent on Monday, trading at cents 12.80 /lb. The decline translates into Rs 1,000 a tonne of fall in Indian denominations which makes a big difference in exporters’ realisation. Following reports of exports becoming unviable, refined sugar (M30) has declined by 2.5 per cent to trade on Monday at Rs 33,100 a tonne in Vashi wholesale market in Maharashtra.
The government is offering a transport subsidy of Rs 1,000 per tonne to mills located within 100 km from ports, Rs 2,500 per tonne for mills located beyond 100 km from the port in coastal states, and Rs 3,000 tonnes per tonne for those located in non-coastal states.
(Source: Business Standard)
6. Q2 Results: Jet Remains off Course, Posts Third Straight Quarterly Loss
Jet Airways (India) Ltd posted a worse-than-expected loss for the third straight quarter on higher fuel costs and foreign currency losses. The airline, controlled by Naresh Goyal, however, said it was on course to save more than ₹2,000 crore in costs over the next two years as part of its strategy to achieve a financial turnaround. Mumbai-based Jet Airways plunged to a net loss of ₹1,297.46 crore in the three months ended 30 September, excluding its units. It had a net profit of ₹49.63 crore in the same period a year earlier.
Jet Airways had announced a plan to turn around its financial fortunes after posting a loss of ₹1,323 crore in the June quarter.
The airline had already saved more than ₹500 crore during March-August 2018, the airline said in a press release on Monday.
(Source: LiveMint)
7. Reliance Plans ₹3,000 Crore Fresh Investment in Odisha
Reliance Industries Ltd will make a fresh investment of ₹3,000 crore in Odisha, its chairman Mukhesh Ambani said in Bhubaneswar on Monday. RIL has emerged as one of the largest investors in the state having already invested ₹6,000 crore there, he said. “We are committing to invest an additional ₹3,000 crore in Odisha. Our investment philosophy has a clear goal, to empower everyone in the march of development,” Ambani said at the Make in Odisha-Conclave 2018.
“Most of our investments are in creating digital infrastructure,” he added.
Ambani said that Reliance Jio is not just another business, it is a mission to transform India, to transform Odisha. “We have created and sustained new employment opportunities of over 30,000 people in the last two years in the state,” the RIL chairman said.
(Source: LiveMint)
8. India’s Industrial Output Rose 4.5% In September
India’s factory output rose more than expected in September despite a depreciating rupee and higher fuel prices increasing costs.
The Index of Industrial Production rose 4.5 percent year-on-year in September, compared with a 4.1 percent growth in the same month last year, data released by the Ministry of Statistics and Programme Implementation showed. A Bloomberg poll of economists had projected a 4.3 percent growth. The reading for August was revised to 4.67 percent from 4.3 percent earlier.
(Source: BloombergQuint)
9. India Emerges a Major Seed Hub in Asia as Firms Invest in a Big Way: Study
India has emerged as a major seed hub in Asia as 18 companies out of 24 leading firms evaluated, have invested in breeding and production activities in the country, according to a latest study.
Both global and regional seed industry players have invested in a big way to boost crop yields of smallholder farmers in India, it said.
There are about 100 million smallholder farmers in the country. They provide up to 80 per cent of the food supply and helping them to grow more and more food is key to achieving food and nutrition security, it added.
(Source: Business Standard)
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