1. TCS Results Suggest IT Industry’s Struggles Have Worsened
Indian IT companies have struggled for growth for quite some time now. Growth of top-tier IT companies fell to around 9% in the June quarter, compared to a near-term peak of 14%, according to analysts at Nomura Research.
But things are looking worse. Tata Consultancy Services Ltd (TCS) reported a mere 1% sequential growth in constant currency terms for the September quarter, far lower than the 2.5% growth the Street had estimated. On a year-on-year basis, growth stood at 7% in constant currency.
TCS said revenue from the retail vertical declined, besides which postponement of work in its India business led to sluggishness in overall revenue.
(Source: Livemint)
2. Russia, India to Ink Deal On S-400 Air Defence Missile Systems
Russia and India will sign a multi-billion dollar deal for S-400 ‘Triumf’ long-range air defence missile systems on Saturday following talks between Russian President Vladmir Putin and Prime Minister Narendra Modi in Goa, state media in Moscow reported on Thursday.
India is interested in getting five systems of the most modern air defence system, capable of firing three types of missiles, creating a layered defence, and simultaneously engaging 36 targets. It has the capability to destroy incoming hostile aircraft, missiles and even drones at ranges of up to 400 km.
If India signs the deal, it would be the second customer of the prized missile system after China which had struck a $3 billion contract last year.
(Source: BloombergQuint)
3. Govt Paving Road for Rs 60,000-crore Push to Infra Sector
An influential section of the government is pushing for an additional Rs 50,000-60,000 crore burst of spending to give infrastructure a big mid-year push through the second supplementary demand for grants. Roads, railways and rural electrification will be among the main beneficiaries.
This is being discussed at the top levels of the government, a senior official told ET. The money will be needed as a number of departments will be close to exhausting their funds and require more money to meet targets. A final call on the amount will be taken in line with additional resources that the government is able to garner. Genuine requirements based on the utilisation record of ministries will also be taken into account.
(Source: The Economic Times)
4. September Retail Inflation Cools to 13-Month Low
Consumer Price Index (CPI)-based inflation for the month of September fell to 4.31 per cent, the lowest in 13 months, on the back of a fall in food inflation, especially of pulses and vegetables.
CPI inflation for August was 5.05%; for September last year, 4.41%. The previous lowest retail inflation rate was the month before that, in August 2015, at 3.41%.
Consumer Food Price Inflation for September was 3.88%, down from 5.91% in August. For September last year, it was 3.88% as well, showed data issued by the Central Statistics Office on Thursday.
(Source: Business Standard)
5. TRAI May Revise Pricing After Bidders Ignored 700 MHz Spectrum in Latest Auction
Hinting that the telecom regulator may be open to revising the price of spectrum in the 700 megahertz (MHz) band, chairman of the Telecom Regulatory Authority of India RS Sharma said on Thursday that TRAI will conduct a fresh round of consultation with all concerned parties if needed, before the spectrum comes up for re-auction.
The debt-ridden telecom sector had ignored premium airwaves in the high-cost 700 MHz band. It was put for sale for the first time in the latest round of auction at a reserve or base price of Rs 11,485 crore per Mhz, according to data released by the Department of Telecom at the end of the process.
(Source: BloombergQuint)
6. Tech Cos May be Asked to Store User Information
The government is moving to formulate rules that will require technology ‘intermediaries’ – including email services like Gmail, chat apps such as WhatsApp and Snapchat or even ecommerce firms like Amazon – to retain user information, a development that is expected to be met with determined opposition.
What the government is looking to do now is draft rules for Section 67C of the Information Technology Act, and this will be done by a committee that has been set up for the purpose. The rules – whose drafting has been waiting since 2008 – will spell out what type of data has to be stored, in which format, and for how long, according to three members of the newly-formed committee.
(Source: The Economic Times)
7. India’s Domestic Aviation Market Growth in Top Gear
Globally, the domestic segment accounts for 36.4% of the total aviation market in terms of revenue passenger kilometres (RPKs), or the cumulative distance flown by all passengers in a given period.
Although the Indian domestic market has only 1.2% share of the total aviation market, it’s a growth leader among seven major markets that account for 82% of global domestic RPKs. In the last three years, India has leapfrogged Australia and Japan, and is now steadily bridging the gap with Russia and Brazil.
The quality of this growth also stands out. Leading industry trade association IATA, in its July report, refers to domestic aviation as a “three-speed market”: India and China in “top gear”, mature markets “fumbling for neutral”, and Brazil and Russia “stuck in reverse”.
(Source: Livemint)
8. Amazon's New Music-Streaming Service to Rival Spotify, Apple
Amazon.com Inc plunged into the crowded field of music-streaming with its own service that significantly boosts the catalog of songs available through its popular Echo speakers, and offers a pricing option for Prime members that undercuts industry leaders Spotify Ltd and Apple Inc.
The Music Unlimited subscription from Amazon will be available for $9.99 a month, in line with offers from Spotify and Apple Music, but Prime customers would pay $7.99, or $79 a year, Amazon said in a statement Wednesday. The Seattle-based e-commerce giant plans to offer a family-subscription plan later this year.
The new offer will give Prime members access to a catalog of tens of millions of songs, Amazon said, and thousands of hand-curated playlists and personalized stations.
(Source: BloombergQuint)
9. PACL Assets Inadequate for Refunds, Finds Probe
A multi-agency probe into PACL Ltd, which owes at least Rs 50,000 crore to the public, has revealed that the group barely has assets worth about Rs 10,000 crore, said three people with direct knowledge of the matter.
They did not want to named as the matter is sub-judice and the investigation findings are yet to be presented before the Supreme Court. The Securities and Exchange Board of India (SEBI), the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) are examining the case.
(Source: Livemint)
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