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Latest business, finance and stock market news today at 10am on May 24, 2024
Transcript of today’s latest business news at 10am on May 24, 2024
Let’s start. Infosys has not considered any form of job cuts such as downsizing or downsizing as a result of adopting generative AI, CEO Salil Parekh told CNBC-TV18. Quote Infosys is not thinking about downsizing, downsizing or any kind of job cuts as has happened to others in the industry due to quote-unquote GenAI. Several global technology companies, including Twitter and Meta, have recently announced layoffs attributed to the integration of AI or GenAI, citing AI efficiencies as a reason to reduce their workforces. Amazon and Google have also made significant cuts, partially attributing them to the adoption of new technologies like AI. Parekh further explained how Infosys is using GenAI to increase operational efficiency and reduce costs without compromising headcount.
For Industry. Malls in India are rebooting the shopping experience to attract the modern customer by deploying the latest technologies. The bottom line is clear: malls and stores need to meet customers where they are, rather than endlessly waiting for them to come to them. In a bid to stay relevant, shopping centers leverage every click, every gesture and every purchase that leaves behind a digital footprint – a treasure trove of data waiting to unlock the secrets of consumer behavior. The country’s largest developer, DLF, for example, is revamping its loyalty app, where shopping center shoppers receive vouchers for purchases they make. As part of the redesign, it is also working to guide shoppers to the next store.
Latest update on the Digital Bill. Trade body US-India Strategic Partnership Forum has sought finance minister Nirmala Sitharaman’s intervention on the digital competition bill. In a letter dated May 15, the last date to submit a response to the bill, the trade body’s president and CEO, Mukesh Aghi, requested a longer consultation period after the elections. Quote This longer period will allow the industry to submit its in-depth comments. We request the corporate affairs ministry to re-evaluate the scope and validity of the Digital Competition Law Committee report and the quote-unquote bill, he said. In its current form, the bill impacts companies that operate in highly competitive sectors and that do not have great control, he said.
To the market. The government is unlikely to cancel central government bond auctions scheduled for the first half of the current fiscal year despite receiving a record dividend from the Reserve Bank of India. Finance Ministry officials told bond market participants that they do not intend to change their financing plan for the first six months. Following the RBI’s announcement on Wednesday of a higher-than-expected dividend of Rs 2.11 trillion for the government, a clarification has emerged. The huge dividend sparked speculation among bond traders that an excessive cash infusion could lead the government to cancel bond auctions. Quote Ministry officials made it clear that the government will borrow everything that is foreseen in the calendar, in quotes.
Here is a big update on Paytm layoffs. Paytm parent One97 Communications, which is looking to reduce employee costs, may have to cut around 15-20% of its workforce this fiscal. In fiscal 2023, the company had an average of 32,798 permanent employees. Of these, 29,503 were active. Its average cost per employee was Rs 7.87 lakh. In FY24, the total cost increased by 34% year-on-year to Rs 3,124 crore, and the average employee cost is estimated to have increased to Rs 10.6 lakh. With the company embarking on an employee cost reduction plan of Rs 400-500 million due to mounting losses, the number of employees that could be reduced is likely to be 5,000-6,300. The process of reducing the number of employees is already underway.
Moving on to telecommunications industry news. The telecommunications department has asked telecom operators to recheck nearly 680,000 mobile connections suspected of having been obtained using invalid, non-existent, fake or forged proofs of identity and proofs of address. The telecommunications department has given 60 days to telecom operators to re-verify suspicious mobile numbers. The DoT’s action assumes importance amid the threat of increasing telephone financial frauds. The department has been using AI-based analytics to identify these suspicious numbers. Collaboration between various sectors and the use of AI technology has been instrumental in identifying these fraudulent calls, demonstrating the effectiveness of integrated digital platforms in combating identity fraud, the DoT said. Disconnected more than 17 million fraudulent mobile connections.
Lastly, let’s look at the stocks in focus today. These include LTTS, Infosys, HCLTech, Paytm, Jio Financial Service. L&T Technology Services announced the opening of its simulation center of excellence for Airbus in Bengaluru. On the other hand, Infosys has not considered any form of job cuts such as downsizing or downsizing as a result of adopting generative AI, said CEO Salil Parekh.