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Latest business, finance and stock market news today at 10am on June 3, 2024
Transcript of today’s latest business news at 10am on June 3, 2024
Let’s get started: The government has firmed up plans to unveil a national policy to encourage deep tech start-ups with various tax concessions and other incentives, official sources told FE, adding that the full budget is likely to be presented by mid-July. , could announce a disbursement for a related scheme, in addition to a financing mechanism for such units. The idea is to give them a hand, to improve their viability until they reach the commercial area. In addition to financing options, the National Deep Technology Start-up Policy (NDTSP) would include different treatment of these units from other start-ups, and measures to reduce their costs through exemptions from customs duties or reduced customs duties on equipment imported goods, machinery and raw materials, the sources said.
Turning to banking sector news, lenders plan to approach the Reserve Bank of India proposing lower provisioning for infrastructure loans as the probability of default or PD has been falling consistently to 2% or even less in the sector over of the last five years. “We are in touch with the RBI about this number as it has dropped significantly in recent years. If they accept this number, then our problem will be solved,” said a banker. PD, a key component in assessing credit risk and used in calculating expected credit losses, is a measure of the probability that a borrower will be unable to meet its debt obligations during a specified period. The banker explained that in 10 years the PD reaches 5%.
As far as infrastructure news is concerned, driven by a rising economy and demand that is aided by various government initiatives, infrastructure and allied companies are increasing their capital expenditure for financial year 2025 .The current fiscal year is expected to be an investment-intensive year as companies embark on capacity building and expansion through organic and inorganic routes. For example, JSW Steel has earmarked an investment of Rs 20,000 crore for the financial year 2025 as it expects the fiscal year to be good, with economic dynamics and demand for steel remaining strong. The company had an investment of Rs 17,000 crore last year. Tata Steel’s investment guidance for FY25 is Rs 17,000 crore. UltraTech Cement has set aside Rs 9,500 crore as capex for FY25, including for capacity expansion plans.
When it comes to technology news, 5G has been hailed as a disruptive technology, comparable to artificial intelligence (AI), machine learning and the Internet of Things in terms of the types of changes it will bring about. How much of this is true and how much is just exaggeration? Interest in 5G networks and the devices and applications that run on them is high among both consumers and business leaders, says Nitin Bansal, MD, India and head of Networks, Southeast Asia, Oceania and India at Ericsson. In this interview with Sudhir Chowdhary, he discusses the proliferation of 5G in India since its launch in October 2022 and its transformative potential across sectors. Predictions suggest that 5G subscriptions will dominate the mobile landscape in India.
Upcoming Industry News Hindustan Unilever is digitizing its manufacturing ecosystem to be future-ready, CEO and MD Rohit Jawa said in the country’s largest consumer goods company’s latest annual report for FY24. Jawa, who replaced Sanjiv Mehta in June last year, said two factories at Dapada in Dadra and Nagar Haveli and Sonepat in Haryana have implemented fourth industrial revolution solutions on the factory floor. This earned them the title of end-to-end lighthouse factory at the World Economic Forum, making them a member of the global lighthouse network. This network recognizes factories that incorporate artificial intelligence and big data analytics to maximize efficiency and drive sustainable growth, while improving their workforce and protecting the environment, Jawa said.
Latest from the Economy section, Prime Minister Narendra Modi on Sunday chaired a meeting of top bureaucrats to review the 100-day agenda plan of the new government to be sworn in after the announcement of Lok Sabha results on June 4, they said official sources. The meeting was one among many others, which included reviewing the post-Cyclone Remal situation in the northeast, inspecting the heatwave situation in the country and preparing to celebrate World Environment Day on a grand scale, which the Prime Minister presided over on Sunday, as per official sources. The meetings were held after major exit polls on Saturday predicted a landslide victory for the BJP-led NDA in the Lok Sabha elections, which concluded on June 1.
Finally, we also know about the stock in focus today. These are Hindustan Unilever, NHAI, Coal India, Wipro, Bharti Hexacom, Vedanta. GIFT Nifty has indicated that Indian stock indices BSE Sensex and NSE Nifty 50 could see a gap opening. Hindustan Unilever is digitizing its manufacturing ecosystem to be future-ready, CEO and MD Rohit Jawa. On the other hand, the Adani Group recorded its highest-ever EBITDA of Rs 82,917 crore in FY24, an increase of 45% over the same period last year.