QBiz: Shanghai’s 7 Percent Crash, FIR Against Snapdeal and More

QBiz: Read the top business stories of the day. 

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A man walks past a panel displaying the benchmark Hang Seng index during afternoon trading in Hong Kong on January 4, 2016. (Photo: Reuters) 

1. China Selloff Sparks Gloomy 2016 Start For Stocks: ET

Global equity markets fell sharply on Monday, while gold and bonds rose, after a 7 percent slide in Chinese shares sparked by weak economic data rekindled worries over global growth on the first day of trading in 2016.

Rising tensions in West Asia also increased demand for safe-haven assets. Crude prices rose above $38 a barrel at one point as some speculated that a breakdown in diplomatic ties between Saudi Arabia and Iran could result in reduced oil supplies.

Read more here.

2. BSE-Listed Firms’ Market Capital Slips Below Rs 100-Trillion Mark: FE

Amid heavy selling in stock markets, the total investor wealth crashed below the Rs 100 lakh crore level on Monday, wiping out nearly Rs 1.54 lakh crore from BSE-listed companies’ market capitalisation.

The total investor wealth, measured in terms of collective value of all listed stocks, fell to Rs 99,39,378 lakh crore, down from Rs 100.93 lakh crore at the end of last trading session on Friday.

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3. Wipro Shuns Radical Rejig, Pins Hope on Abidali Neemuchwala for Revival

In a widely expected move, Wipro’s billionaire chairman Azim Premji has put his faith in former TCS executive and current Wipro COO Abidali Neemuchwala, choosing to play it safe with an outsourcing industry veteran rather than adopt radical change at a time when the company faces challenges both within and without.

With Neemuchwala’s elevation to the top job, Wipro in a way has opted not to go for a radically different change in its top echelons — unlike crosstown rival Infosys, which picked Vishal Sikka as its first non-founder CEO in 2014 — and chosen someone who over the years has cut his teeth in the heart of the traditional back-office outsourcing industry, experts tracking India’s $146-billion IT industry said.

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4. RBI to Auction New 10-Year Benchmark Bond on Friday: BS

The Reserve Bank of India (RBI) said on Monday that it would raise Rs 8,000 crore through a new benchmark 10-year bond on Friday.

This is part of the Rs 14,000-crore bond auction the central bank would be undertaking on Friday, including Rs 2,000 crore through a 40-year bond. The 40-year bond, the longest duration bond, was issued in October last year and only Rs 5,000 crore has been raised so far. The other bonds against which Rs 2,000 crore each will be raised will mature in seven years and eight years, respectively.

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5. Manufacturing PMI Slips to 28-Month Low in December: BS

India’s manufacturing activity shrank for the first time in two years in December as business conditions deteriorated on account of Chennai floods besides the persistently muted domestic demand, a private survey showed on Monday. The sustained weakness in economic growth combined with controlled inflation could prompt the Reserve Bank of India (RBI) to cut policy rates further.

Snapping the 25-month growth sequence, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI), compiled by Markit, fell to a 28-month low in December to 49.1 points from 50.3 in the previous month. The rate of contraction was the sharpest in seven years.

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6. L&T Infotech Gets SEBI Clearance For Rs 2,000-Cr IPO: BS

L&T Infotech, a subsidiary of engineering giant Larsen & Toubro, has received market regulator Securities and Exchange Board of India’s (SEBI’s) approval to float an initial public offer of equity worth Rs 2,000 crore.

The issue comprises an offer for sale of up to 1,75,00,000 equity shares of face value of Rs 1 each by Larsen & Toubro.

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7. FIR Against Snapdeal For Flouting Maggi Noodles Ban: FE

An FIR has been registered against the CEO and founder of e-commerce major Snapdeal for allegedly selling popular Maggi noodles online during the ban period, in five Indian states.

A case was registered on Sunday against CEO of Snapdeal Kunal Bahl and its founder Rohit Bansal for online sale of Nestle’s instant noodles in five states including Rajasthan during the period of ban between 7 June 7 and 30 October last year, police said.

Read more here.

8. UBS Says Brent Oil May Touch $30, Commodities May Fall 10 Percent: ET

Brent oil may decline to near $30 abarrel before a reduction in US output helps rebalance global markets in the second half of the year, says UBS Group.

Commodity prices may drop another 10 percent because of oversupplied markets, said Dominic Schnider, head of commodities and Asia-Pacific foreign exchange at UBS’s wealth-management unit in Hong Kong.

Read more here.

9. Trade Unions Seek Doubling of I-T Exemption Limit to Rs 5 Lakh: FE

In their pre-Budget memorandum, trade unions on Monday asked the government to double the minimum income tax exemption limit to Rs 5 lakh, fix minimum monthly wage at Rs 18,000 and raise the basic monthly pension to Rs 3,000 for all workers.

“The income tax exemption limit has to be raised to at least Rs 5 lakh as recommended by Yashwant Sinha Committee as food inflation is sky high,” Bharatiya Mazdoor Sangh (BMS) zonal organisation secretary Pawan Kumar said after meeting finance minister Arun Jaitley and other officials.

Read more here.

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