victorybull

Author: victorybull

  • Power consumption grows 2.6% in January

    India’s power consumption grew marginally at 2.6 per cent year-on-year in January to 112.67 billion units (BU), showing the impact of local restrictions imposed by states amid the third wave of COVID-19.

    Power consumption in the entire January last year was 109.76 BU, which was 4.4 per cent higher than 105.15 BU in January 2020, as per the power ministry data.According to the data, peak power demand met or highest supply in a day rose to 192.07GW in the month under review compared to 189.39 GW in January 2021, and 170.97 GW in January 2020.

    Experts are of the view that the slowdown in power consumption growth in the fortnight of January has shown the impact of local restrictions imposed by states amid the third wave of COVID-19.

    They opined that the local restriction had affected industrial and commercial demand. The third wave of the pandemic hit the country in January 2022, which has forced many states to impose local restrictions like night and weekend curfews.

    They have also taken measures like banning dining in bars and restaurants. The experts opined that the power demand and consumption would improve in the coming months as many states are now lifting local restrictions after a decline in the number of positive cases.

    Power consumption had grown by 3.3 per cent in December 2021 to 109.17 BU from 105.62 BU in the year-ago period. In November 2021, power consumption grew by 2.5 per cent to 99.32 BU from 96.88 BU a year ago.

    In November 2021, power consumption grew by 2.5 per cent to 99.32 BU from 96.88 BU a year ago. Many states had imposed lockdown restrictions after the second wave of the pandemic in April 2021, which affected the recovery in commercial and industrial power demand.

    Curbs were gradually lifted as the number of COVID cases fell. Curbs were gradually lifted as the number of COVID cases fell. Power consumption witnessed a 6.6 per cent year-on-year growth in May 2021 at 108.80 BU, from 102.08 BU in the same month of 2020.

    In June 2021, it grew nearly 9 per cent to 114.48 BU, compared to 105.08 BU in the same month in 2020. In June 2021, it grew nearly 9 per cent to 114.48 BU, compared to 105.08 BU in the same month in 2020.

    In July 2021, it rose to 123.72 BU from 112.14 BU year-on-year, while in August, power consumption surged by over 17 per cent to 127.88 BU compared to 109.21 BU in the same month a year back.Power consumption in September 2021 witnessed flat growth at 112.43 BU, mainly due to the delayed monsoon. In October 2021, power consumption grew at 3.3 per cent to 112.79 BU from 109.17 BU in the same month in 2020.

  • BlackBerry to Sell Patents Related to Mobile Devices, Messaging for $600 Million

    BlackBerry Ltd said on Monday it will sell its legacy patents primarily related to mobile devices, messaging and wireless networking for $600 million to a special purpose vehicle formed to acquire the company’s patent assets.

    BlackBerry said the transaction with the vehicle, Catapult IP Innovations Inc, will not impact customers’ use of its products or services.

    The move comes weeks after BlackBerry pulled the plug on service for its once ubiquitous business smartphones, which were toted by executives, politicians and legions of fans in the early 2000s.

    U.S-listed shares of BlackBerry were down 3.6% in premarket trading. One of the so-called “meme stocks”, such as GameStop and AMC Entertainment, that witnessed a surge in early 2021, BlackBerry rose 41% last year.

    At the closing of the deal, the company will receive $450 million in cash and a promissory note for $150 million.

    Once known for its phones with a tiny QWERTY physical keyboard and the BBM instant messaging service, BlackBerry’s core businesses today are cybersecurity and software used by automakers.

  • Sebi advises MFs to stop investing in int’l stocks

    The Securities and Exchange Board of India (Sebi) has advised mutual funds investing in overseas securities to stop further investments in foreign stocks to avoid breach of industry-wide overseas limits, two industry executives independently confirmed to Mint on the condition of anonymity.

    Mutual funds can make overseas investments up to $1 billion per mutual fund, with the overall industry limit of $7 billion, according to a Sebi circular of 3 June 2021. The suspension is likely to be temporary and could be revoked once the limits are enhanced by the regulator.

    Following the Sebi directive, the Association of Mutual Funds in India (Amfi) has asked fund houses to stop accepting flows in schemes investing overseas from 2 February. However, existing SIPs and STPs have been allowed to continue.

    Franklin Templeton Mutual Fund released a notice on Saturday announcing suspension of lump-sum subscription, switch-ins, and fresh registration of SIP/STP for its three overseas funds, Franklin India Asian Equity Fund, Franklin India Feeder-Franklin US Opportunities Fund and Franklin India Feeder -Templeton European Opportunities Fund, after 28 January 2021. The fund house temporarily withdrew the notice, but may be forced to reinstate it after the Amfi guidance.

    Sebi advises MFs

  • World food prices ease in Dec, but hit 10-year peak in 2021: FAO

    World food prices eased in December after four consecutive monthly gains but jumped 28% over 2021 for the highest average level since 2011, the U.N. food agency said on Thursday.

    The Food and Agriculture Organization’s (FAO) food price index, which tracks international prices of the most globally traded food commodities, averaged 133.7 points last month compared with a revised 134.9 for November.

    The November figure was previously given as 134.4.

    For 2021 as a whole, the benchmark index averaged 125.7 points, up 28.1% from 2020 and the highest since 131.9 in 2011.

    The monthly index has been running at 10-year highs, reflecting harvest setbacks and strong demand over the past year. 

    With the exception of dairy products, prices for all categories in the food price index eased in December, with vegetable oils and sugar falling significantly, the agency said.

    Higher food prices have also contributed to a broader surge in inflation as economic activity recovers from the coronavirus crisis.

    The FAO has warned that higher food costs in import-reliant countries are putting poorer populations at risk.

  • IPO-bound Delhivery announces investment in Falcon Autotech

    IPO-bound logistics service Delhivery has announced its investment in Falcon Autotech, a logistics automation solutions provider. This is in line with Delhivery’s stated objective of sustained investments in future-ready hardware solutions in its operations.

    The amount invested is undisclosed by both the firms.

    With this partnership, Delhivery expects to work closely with Falcon Autotech to design and implement new automation solutions for transportation and warehousing operations.

    The partnership will also enable the bundling of the hardware automated solutions along with Delhivery’s SaaS platform, one of the proposed growth verticals for Delhivery in the national and international market.

    Delhivery (including Spoton) already operates 20 automated sortation centres, 124 gateways, and 83 fulfillment centres across India as of June 30, 2021.

    Commenting on the investment, Ajith Pai, Chief Operating Officer, Delhivery, said, “The collaboration with Falcon Autotech strengthens our ability to drive greater speed, precision, and efficiency across our business lines.”

    Naman Jain, Chief Executive Officer, Falcon Autotech, added, “We are delighted to welcome Delhivery as a partner to Falcon. This investment is a testimony to Falcon’s commitment to our customers, our design, technology, and delivery capabilities, and the product roadmap ahead.”

    A month ago in December, Delhivery had acquired Transition Robotics Inc, a California-based company focused on developing unmanned aerial system platforms.  The deal would help strengthen its capabilities in a wide range of applications, including aerial photography, remote sensing, inspection and surveys.

    Delhivery on November 2 filed its documents with the market regulator, seeking to raise a billion dollars in an initial public offering.Delhivery IPO will consist of primary issuance of Rs 5,000 crores which the end-to-end supply chain unicorn will raise via public issue. The offer for sale by the existing investors will be to the tune of Rs 2,460 crores. It will mark a lucrative exit for many of its investors.

  • Stick to your investment plan even if market is volatile, says Ajay Tyagi of UTI AMC

    Ajay Tyagi, Head of Equity at UTI AMC has advised that new age investors have to avoid timing the market, have an asset allocation plan, follow this plan systematically and stick with it even when things look volatile in the short run.

    Investors trying to change their investment strategy every now and then to make quick money or chase momentum will never be able to create sustainable wealth, says Tyagi who has more than two decades of experience. He manages UTI’s flagship equity scheme in India and is also the Investment Advisor to UTI International’s range of India dedicated offshore funds.

    He expects India to continue trading at a premium to other emerging markets. “The reason for this is India’s long term structural growth, strong demographics, thriving democracy and a very vibrant stock market.”

  • India’s 2022 steel consumption seen strong amid muted prices, infra push

    The government’s thrust on infrastructure, coupled with an increase in demand from the construction, engineering, and other sectors, is expected to push up domestic steel consumption in 2022, according to brokerages and rating agencies.

    The country’s consumption is expected to jump to 111 million tonnes (mt) in calendar year 2022 (CY22) after a severely impacted CY20, which saw steel consumption falling to 89.3 mt, CARE Ratings said in a recent report.

    India’s steel consumption numbers for CY21 could be around 104 mt, which would mean a 17 per cent increase from last year. Between April-November 2021, the consumption was 66 mt, up from 55 mt in the corresponding period of 2020.

    The US recently announced a $1-trillion infrastructure spending, which could substantially boost the country’s steel consumption, thereby keeping steel prices firm in the US market, brokerages said.

    On the other hand, China, the world’s largest consumer and producer of steel, due to continued production curbs to curtail carbon emissions, has tapered exports, in turn keeping world export prices at elevated levels, they said.

    Apart from the production and consumption equation of steel, supply chain performance and logistical arrangements are expected to play a crucial role in 2022 amid the ongoing pandemic, industry officials pointed out.

    “Companies and countries across the globe have taken measures to strengthen their logistics but no one knows whether what has been done is enough. That would only be clear as we walk through 2022,” said a senior official with a primary steel producer on the condition of anonymity.

    Between financial years (FY) 22-25, a total crude steel capacity of about 25 mt is likely to be added to the domestic market. Of it, 7-8 mt would come in during FY22, while the remaining would take another 2-3 years to get commissioned. Due to this, though domestic consumption is likely to be stronger for 2022, compared to previous years, prices may remain slightly muted, brokerages said.

    In December, domestic hot-rolled-coil price in traders’ market slipped further (1 per cent week-on-week) to Rs 65,590 per tonne, mainly due to subdued domestic demand, particularly for flat products, an Edelweiss report said.

    “In Q3FY22, we have also seen increased pressure on domestic prices as export realisation is again at a discount and demand in the Southeast Asia region has remained lacklustre due to re-emergence of Covid cases. Alongside, the recent uptick in Chinese domestic prices raises hopes of a positive rub-off on the domestic market,” the report added.

  • State Bank of India invests $20 million in Pine Labs

    Bengaluru: India’s largest lender, the State Bank of India NSE 0.90 %, has invested $20 million in Pine Labs, the fintech startup said Tuesday without sharing any further details of the deal.

    The IPO-bound online payments and merchant solutions platform raised around $700 million in multiple tranches last year and was last valued at $3.5 billion. ET reported in December that it was in advanced stages of talks to raise at least $100 million from Falcon Edge and that the total funding round could increase to $200 million.

    Pine Labs, best known for its offline merchant payments tool, is also looking to list in the United States in the first half of 2022, ET reported last month.

    “In the past year, several marquee investors have placed their trust in our business model and growth momentum, and that is a gratifying feeling,” Pine Labs CEO Amrish Rau said Tuesday. “This association with SBI is a personally satisfying experience as I had started my career selling financial services technology to SBI.” In a statement, Pine Labs said it would invest in scaling its new product Plural, a payments gateway.

  • Alka Mittal becomes first woman to head ONGC as CMD

    Alka Mittal, director of human resources at energy major Oil and Natural Gas Company (ONGC), has been given the additional charge of chairman and managing director, the company announced on January 3.

    With this appointment, Mittal has become the first woman ever to head ONGC as its CMD. She will hold the post for six months or until a regular appointment for the position is announced, whichever is earlier.

    ONGC has not had a full-time chairman and managing director since former chief Shashi Shanker retired on March 31, 2021. Typically, the government select a future CMD at least a few months before the retirement of the incumbent but instead, after Shanker’s retirement, the then senior-most director was given the additional charge. Subhash Kumar, former director (finance) was given the additional charge of the post from April 1, 2021. Kumar too retired end-December, leaving the top position vacant for a couple of days.

    Given that Mittal is currently the senior most on the board of directors, it was speculated that she would be given the CMD’s position but the formal orders came late on January 3.

  • West Bengal announces fresh curbs, restricts flights from Mumbai, Delhi

    The West Bengal government on Sunday said flights from Mumbai and Delhi were being restricted to twice a week from January 5 as new Covid cases in the state mounted to 6,153 from 1,089 on December 29.

    In a letter to the civil aviation ministry, the state government said that in view of the rising Covid cases it had decided that with effect from January 5, all incoming domestic flights from Mumbai and Delhi to West Bengal will be temporarily allowed only twice a week on Monday and Friday till further orders.

    This is among a set of fresh curbs announced by Chief Secretary H K Dwivedi after a panel of the state disaster management authority recommended review of the current restrictions and relaxations amid concerns of “high rate of infectivity” and multiple cases of the Omicron variant.

    The restrictions are effective Monday and will be in force till January 15.

    Dwivedi said direct flights from the UK were being temporarily suspended from tomorrow. The Civil Aviation Ministry had already been informed, the chief secretary said.

    Till January 1, 19 had tested positive for Omicron, and 15 were active. Dwivedi, however, reassured on hospital bed availability and said the total bed occupancy was around 1.5 per cent. Those who are asymptomatic or have mild symptoms can isolate at home, he said.

    The order includes an advisory to the management of industries, factories, mills, tea gardens, and other establishments to ensure strict compliance of Covid-appropriate norms and “only double vaccinated workers” to be allowed to enter the work sites.

    All academic activities in schools, colleges, and universities are to remain closed and only administrative activities will be permitted with 50 per cent employees at a time.

    Government offices, including public undertakings, will function with 50 per cent of employees at a time, and work from home is encouraged. The same holds for private offices and establishments.

    Swimming pools, spas, gyms, beauty parlors, saloons, wellness centres, entertainment parks, zoos, and tourist places will be closed.

    Shopping malls and market complexes will, however, function with capacity not exceeding 50 per cent and till 10 pm. Similarly, restaurants and bars have been allowed to operate with 50 per cent capacity and till 10 pm.

    Cinema halls and theatre halls, too, will operate with 50 per cent seating capacity and up to 10 pm.

    The maximum number of people at meetings and conferences has been limited to 200 people at a time or 50 per cent seating capacity of the hall. The number of people at social, religious and cultural gatherings has been capped at 50.

    As far as public transport is concerned, local trains will operate with 50 per cent seating capacity and up to 7 pm; metro services will operate with 50 per cent seating capacity and as per usual operational time.

    Further, the movement of people and vehicles and public gatherings is prohibited between 10 pm to 5 am and only essential and emergency services are permitted.