Active Stocks
Mon Mar 18 2024 15:55:53
  1. Tata Steel share price
  2. 149.60 5.69%
  1. Tata Motors share price
  2. 972.20 2.75%
  1. ITC share price
  2. 417.40 -0.51%
  1. State Bank Of India share price
  2. 730.70 -0.18%
  1. ICICI Bank share price
  2. 1,082.00 0.32%
Business News/ Mint-lounge / Mint-on-sunday/  Rafale deal, kharif output and brand rankings
BackBack

Rafale deal, kharif output and brand rankings

India inks deal to buy 36 Rafale jets from France; estimates show kharif foodgrain production at record; HDFC Bank still India's most valuable brand

Photo: ReutersPremium
Photo: Reuters

1. US Federal Reserve holds rates

A divided US Fed agreed to hold rates, signalling the possibility of a hike later in the year if the improvement in jobs data is sustained. Speaking after the monetary policy committee meeting, Fed chair Janet Yellen made the case for a rate hike in order to keep the economy from overheating and fuelling inflation. Global markets reacted positively to the news, with the Nasdaq touching a record intra-day high on Thursday. The Fed also pointed to the likelihood of a less aggressive rise in rates in 2017 and ’18.

2. HDFC Bank is India’s most valuable brand

HDFC Bank, India’s largest private sector bank, emerged as the country’s most valuable brand in the BrandZ Top 50 ranking released by WPP Group and Kantar Millward Brown. The total brand value of the top 50 brands in India declined by 2%, but the total value of India’s most valuable brands increased 30% over the past three years. The slight dip for that of the top 50 brands in India was due to the decline in the brand value of state-owned banks.

3. Sports sponsorship grew 12% in 2015

In 2015, the sports sponsorship market grew approximately 12% from a year ago to reach Rs5,190 crore, according to the Business of Sports report from consulting firm KPMG and the Confederation of Indian Industry. On-air sponsorships accounted for 52% of all sports sponsorships, led by new formats such as the Pro Kabaddi League and the Indian Super League. Viewership of televised sports grew 30% between 2014 and 2015 on the back of strong interest from female and rural audiences.

4. India’s current account deficit narrows

India’s current account deficit for the April-June quarter came in at $277 million, or 0.1% of gross domestic product, according to data released by the Reserve Bank of India. This was unchanged from the previous quarter, despite wide expectations of a surplus. The low deficit was largely due to the reduction in merchandise imports by 11.5%, while exports fell by 2.1%. As Indian companies have been unable to increase revenue in foreign markets, they have been unwilling to import raw material.

5. Kharif output likely to hit record high

The first advance estimates of crop production released by the agriculture ministry on Thursday point towards a historic kharif harvest: the highest ever in India’s history. The ministry estimated kharif food production at 135 million tonnes in 2016-17, 9% higher than last year. The record harvest will likely lower retail inflation, and in turn help the Reserve Bank of India to lower interest rates. The only kharif crop that is projected to see a drop in output is sugarcane.

6. India and France finalize Rafale deal

After years of negotiations, India finally signed an agreement with France for the purchase of 36 Rafale fighter jets from Dassault Aviation. The jets come equipped with missiles like Meteor and Scalp. Meteor missiles can hit targets as far as 150km away, while Scalp is a cruise missile with a range in excess of 300km. The deal will also boost the Make in India efforts as an offset clause in the deal requires France to invest 30% of the amount paid in India’s aeronautics-related military research programme and 20% in the local production of Rafale components. Media reports suggest that the deal has come at much better terms than what was on offer initially. However, the Indian Air Force would only be getting 36 aircrafts against the original number of 126.

7. Good response for ICICI Pru Life IPO

ICICI Prudential Life Insurance Co. Ltd’s initial public offering (IPO), the first from an Indian insurance company, closed on Wednesday. Excluding the anchor book, the issue drew bids 10.44 times the number of shares on offer. Retail investors, whose investments cannot exceed Rs2 lakh per individual, subscribed to 1.32 times the 57.12 million shares reserved for them. The portion reserved for shareholders was subscribed 12.2 times. Analysts expect more insurance companies to line up IPOs as the private insurance sector moves towards consolidation.

8. Adani unveils mega solar power plant

Adani Green Energy (Tamil Nadu) Ltd on Wednesday opened the world’s largest single-location solar power plant. The plant is expected to produce 648MW of power. The plant at Kamuthi in Ramanathapuram district has been built at a cost of around Rs4,550 crore. The plant has been connected to a substation of Tamil Nadu Transmission Corp. The development is in line with the centre’s efforts to boost solar power generation. Earlier this year, the government revised the target of achieving 100GW solar power by 2022, proposing instead to achieve that goal by next year.

9. Vodafone gets ready for battle with Jio

Vodafone India Ltd has received an equity infusion of Rs47,700 crore from its parent Vodafone Group Plc. The company stated that the money would be utilized to buy more spectrum, expand infrastructure, reduce debt, capitalize a proposed payments bank and improve service quality. The move comes ahead of India’s largest auction of telecom spectrum, slated for 1 October, as well as the aggressive launch of Reliance Jio. Vodafone will use part of the money to retire the company’s debt, which stands at around Rs34,300 crore.

10. Rail budget to be part of Union budget

The government last week decided to merge the rail budget with the Union budget. The move is likely to help the railways get funds from the centre for new projects, instead of being constrained by its own revenues. The centre also agreed to advance the presentation of the Union budget, though it declined to announce a specific date. The decision to merge the two budgets was one of the recommendations of the committee headed by NITI Aayog member Bibek Debroy to rejuvenate the railways.

Graphics by Prajakta Patil/Mint.

Comments are welcome at feedback@livemint.com

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 24 Sep 2016, 11:21 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App