Issue: 1243
· ED arrests two former
Reliance Anil Ambani Group executives in money laundering case.
· To mark the occasion of
upcoming International Yoga Day, 'Khadi
India' launches the 'Swadha' wellness wear collection.
· SBI plans a major HR overhaul
to address employee burnout.
· India's forex reserves
decline by $711 million in week ended June 5.
· Rupee appreciates beyond 95
briefly as dollar positions unwind on oil slide.
· Global urea prices jump 141%,
raising India's fertiliser subsidy burden.
India retail inflation hits
16-month high of 3.93% in May amid food, energy price rise: India’s retail inflation rose
to a 16-month high of 3.93 per cent in May, compared to 3.48 per cent in April,
fuelled by rising food, energy, and precious metal costs. Government data
released on Friday revealed a steep 43 per cent increase in the headline rate
over the last five months. Though still marginally below the central bank’s 4
per cent medium-term target, analysts anticipate upward pressure ahead due to
below-normal monsoon projections and geopolitical frictions in West Asia.
(Business Line)
Markets clock biggest
two-month gain on US-Iran truce hopes: Hopes of a US-Iran truce and
expectations of a broader peace deal, combined with softer crude prices,
fuelled the rally in the Indian equity market, marking the highest single-day
gain in the past two months. A significant driver of the rally was aggressive
short covering, as traders rushed to unwind bearish bets in the face of rising
prices. The BSE Sensex jumped 1,695.40 points, or 2.30 per cent, to close at
75,527.95, while the Nifty rose 461.30 points, or 1.99 per cent, settling
comfortably above the 23,600 mark at 23,622.90. Today’s rise led to a surge in
investors’ wealth, with the overall market capitalisation (m-cap) of BSE-listed
companies increasing by Rs.9.7 lakh crore in a single session, taking the total
to Rs.461.5 lakh crore.
(Business Line)
Govt bars bulk fuel
purchases at retail outlets, caps diesel sales: The Centre has prohibited
industrial and commercial consumers from purchasing petrol and diesel from
retail outlets, directing them to source fuel from designated consumer pumps. The
move comes as bulk buyers shift to retail outlets due to a price difference of Rs.40
per litre between retail and bulk diesel. “The measures are aimed at large or
bulk consumers who should not be procuring diesel from retail outlets to take
undue advantage of the price arbitrage. Blatant instances of procurement of
large quantities of diesel in jerry cans, and its resale have come to the
notice of the government. This order will enable strict action against such
buyers/operators, dealers and officers who are involved in this black marketing
and hoarding of diesel,” the government said.
(Business Standard)
Dhan launches US stocks,
ETFs investing via GIFT City route: Trading and investing platform
Dhan on Friday launched investment access to US-listed stocks and
exchange-traded funds (ETFs) for Indian investors through the GIFT City
framework. The offering is being provided through Raise IFSC Private Limited,
Dhan's wholly-owned subsidiary and a member of India INX operating under the
regulatory framework of the International Financial Services Centres Authority
(IFSCA). In a statement, the company
said Indian investors can now invest in stocks listed on the Nasdaq and NYSE
through the Dhan app under a structure aligned with RBI and FEMA requirements. The
platform will not charge account maintenance or custody fees, while brokerage
has been fixed at 0.25 per cent of the transaction value.
(Business Line)
HDFC Bank may propose
ex-regulator as next chairman: The board of HDFC Bank is
understood to have zeroed in on a retired regulator as the bank’s next non-executive
chairman and is expected to shortly seek the Reserve Bank of India’s (RBI)
approval for its preferred candidate. According to sources, the board favours
appointing a former RBI deputy governor, reflecting a view that the bank would
benefit from a chairman with deep familiarity with banking regulation and
supervisory practices. The move also comes as the bank seeks continuity in
leadership. The board has reportedly requested the RBI to extend the tenure of
interim chairman Keki Mistry by three months beyond June 18, when his current
term ends.
(Financial Express)
RBI reviews FCNR(B) swap
scheme, rupee internationalisation with bank MDs: The Reserve Bank of India
(RBI) on Friday reviewed the implementation of its recent foreign exchange and
financial sector initiatives, including the concessional FCNR(B) swap facility
announced last week, at a meeting with managing directors and CEOs of all major
banks. The central bank on June 5 had
allowed banks can swap fresh FCNR(B) dollar deposits with the RBI to encourage
foreign currency inflows. It has also exempted incremental FCNR(B) deposits
from cash reserve ratio (CRR) and statutory liquidity ratio (SLR) requirements.
(Financial Express)
Banks seek RBI nod on
Guarantee Rule to boost NRI deposit inflows: As they prep up to attract
dollars from the diaspora, banks have urged the Reserve Bank of India (RBI) to
iron out a kink in the regulation. According to them, tweaking
the language of the rule is necessary for non-resident Indians (NRIs) to
leverage multiple times for investing in the new high-return foreign currency
non-resident (FCNR) deposit scheme which was floated last week to arrest the
rupee's slide.
(Economic Times)
RBI imposes restrictions on
Mogaveera Co-operative Bank for 6 months: RBI has imposed several restrictions
on Mogaveera Co-operative Bank, Mumbai, including capping withdrawals at Rs 1
lakh, amid its deteriorating financial position. The restrictions are effective
from the closure of business hours on Friday for a period of six months and are
subject to review, the Reserve Bank of India (RBI) said in a statement. The
cooperative bank cannot grant or renew any loans and advances, make any
investment, incur any liability, including borrowing of funds and acceptance of
fresh deposits, the statement added.
(Business Standard)
Elon Musk becomes world’s
first trillionaire after SpaceX IPO: In a post on the social media platform he owns,
Elon Musk recently lamented, “Whoever said ‘money can’t buy happiness’ really
knew what they were talking about.” Now the world’s richest person can put that maxim
to an even bigger test as he adds a new title: world’s first trillionaire. SpaceX
shares opened at $150 each, 11% above their offering price after they began
trading in New York on Friday, valuing the rocket and AI-company Musk founded
at roughly $2 trillion. His fortune now stands at the once-unimaginable figure
of almost $1.05 trillion, according to the Bloomberg Billionaires Index. That’s
more than three times that of the world’s second-richest person, Google
co-founder Larry Page.
(Moneycontrol)
SpaceX soars 19.2% in
blockbuster debut, lifting US markets higher: U.S. stocks ended higher ?on Friday as
investors held out hope for a peace deal between Iran and the United States
?and as SpaceX shares surged in their debut, making it Wall Street's biggest
public listing ?in history. The United
States and Iran signalled that an agreement to end their war was close, with a
senior U.S. administration official saying a draft proposal was in place that
was liked by both sides. U.S. President Donald Trump has said several times ?since
mid-March that a deal with Iran to end the war was close. Market participants
were glued to shares of Elon Musk's SpaceX , which began trading on the Nasdaq
on Friday. Its shares ?closed up 19.2% at $160.95, well above the IPO price of
$135 apiece. Its market capitalization was last ?at $2.1 trillion.
(Business Line)
NBFC balance
sheets may reach Rs.93 trillion by FY28, says Brickwork Ratings: The balance sheet size of non-banking
financial companies (NBFCs) is expected to reach Rs.92.9 trillion by the end of
2027-28 (FY28), reflecting growth of 16 per cent between FY26 and FY28,
according to a report by Brickwork Ratings. However, the sector could face
rising stress in unsecured and rural credit segments going forward. Total
assets in the sector stood at Rs.61.1 trillion in FY25, implying annual growth
of nearly 15 per cent in NBFC balance sheets through FY28. “The growth so far
has been supported by robust loan demand across retail, micro, small and medium
enterprises (MSMEs), and services segments,” the ratings agency said.
(Business Standard)
FSSAI issues notices to
food firms over hygiene issues: The Food Safety &
Standards Authority of India (FSSAI) on Friday issued notices to popular food
brands over allegations ranging from hygiene issues to contamination concerns.
FSSAI said it had taken cognisance of complaints circulating on social media
and issued notices to Nestle India for Maggi, KFC, Flipkart and food brand Open
Secret. The regulator added that the notices are part of its fact-finding
mission. The notice to Nestlé India concerns allegations that insects or larvae
were found inside a packet of Maggi noodles. FSSAI has sought a detailed Action
Taken Report (ATR), including vendor details, internal quality-check logs for
the batch in question, corrective measures taken to remove affected products
from the supply chain, and steps being implemented to prevent a recurrence,
sources at the food safety regulator said.
(Financial Express)
Odisha to offer free
education from KG to PG, a first in India: CM Majhi: Odisha will provide free
education from kindergarten (KG) to postgraduate (PG) level in government
schools and colleges across major streams, Chief Minister Mohan Charan Majhi
announced on Friday. Addressing a press conference marking the second
anniversary of his government, Majhi said Odisha would perhaps be the first
state in the country to offer such an extensive educational support system,
strengthening access, equity, and inclusiveness in the education sector.While
Telangana has made education free from KG to PG only for weaker sections of
society, Kerala has implemented free education from KG to graduation level for
Arts and Science students.
(Business Standard)
NEOLIBERALISM
·
Neoliberalism
refers to a policy model that emphasizes private enterprise and shifts economic
control from government to the private sector.
·
It
advocates for lesser government intervention, focusing on free-market
capitalism and fiscal austerity.
·
While
neoliberalism aims for economic efficiency and growth, opponents highlight
potential risks like financial instability and the growth of corporate
monopolies.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 95.3825
INR
/ 1 GBP : 127.8367
INR
/ 1 EUR : 110.3607
INR
/100 JPY: 59.5000
EQUITY INDEX
Sensex:
75527.95 (+1695.40)
NIFTY:
23622.90 (+461.30)
Bnk NIFTY: 56814.80 (+1638.05)
International
Albinism Awareness Day: The 13th of June
is celebrated by the UN as International Albinism Awareness Day. The United Nations General Assembly officially
proclaimed this day in December 2014. It was established to highlight the human
rights of people with albinism, dispel century-old myths and superstitions, and
mobilize global support to prevent discrimination and violence against victims.
Historical
events: June 13 is a
significant date in history, marked by the execution of Indian revolutionary
Udham Singh in 1940 for the Jallianwala Bagh massacre, and the 1997 Uphaar
Cinema fire tragedy in Delhi. Globally, it witnessed the 1971 publication of
the Pentagon Papers in the New York Times, the 1966 Miranda v. Arizona Supreme
Court ruling, and an historic 2000 summit between the leaders of North and
South Korea.
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