Issue: 1360
· Jio IPO got fully subscribed
within 100 minutes of opening, making it the fastest fully subscribed public
issue in Indian history.
· Noel Tata to step down from 6
Tata company boards on November 12, retain Tata Sons seat.
· Union Cabinet approves Rs.7,396
crore until FY31 for PM Viksit Gram Swaraj Yojana.
· Cabinet clears Rs.10,000
crore outlay to boost container manufacturing.
· Bandhan Bank Q2 net jumps
over 5-fold at Rs.6,21.75 crore, NII grows 14.38%.
· India and Mexico launch
Negotiations for Preferential Trade Agreement, Sign Terms of Reference.
· Centre cuts MRPs for
trade-margin-capped cancer meds by up to 93%.
US Fed holds interest rates
at 3.75%-4% in 10-2 vote: The US Federal Reserve kept interest rates
unchanged on Wednesday, October 28, following September's
quarter-percentage-point increase, as policymakers weighed persistent inflation
against signs of strength in the American economy. Two officials dissented,
favouring another rate hike. The Federal Open Market Committee (FOMC) maintained
its benchmark federal funds rate in the 3.75-4 percent range, in line with
market expectations. The decision was approved by a 10-2 vote, with Fed
Governor Lisa Cook and Cleveland Fed President Beth Hammack favouring a
25-basis-point increase. The decision comes as the central bank assesses
whether further monetary tightening is necessary to contain inflationary
pressures arising from elevated energy costs, tariffs, resilient consumer
spending and an artificial intelligence-driven investment boom.
(Moneycontrol)
Piyush Goyal asks exporters
to leverage FTAs to boost shipments, expand market reach: Union Commerce and Industry
Minister Piyush Goyal on Wednesday called on Indian exporters to make greater
use of the country's expanding network of free trade agreements (FTAs) to boost
shipments, deepen market penetration and strengthen India's presence in global
markets. At a meeting with Export
Promotion Councils (EPCs) in New Delhi, Goyal stressed that preferential market
access secured through trade agreements must translate into tangible export
gains and wider participation of Indian businesses in international trade. He
asked EPCs to undertake sector-specific assessments of export opportunities in
FTA partner countries and improve awareness among exporters about preferential
tariffs, product standards and market requirements.
(Moneycontrol)
India's industrial growth
slows to 6.7% in September from 8% in August; manufacturing rises 7.6%: India's industrial production
grew 6.7% year-on-year in September 2026, slowing from the initially estimated
8% expansion in August, according to the Ministry of Statistics and Programme
Implementation (MoSPI). Manufacturing and electricity output grew strongly,
while mining activity contracted, government data showed on Wednesday. Manufacturing
output rose 7.6% in September, while electricity and gas supply grew 11.2%.
Mining and quarrying contracted 6.2%, while water supply, sewerage and waste
management increased 5.8%.The Index of Industrial Production (IIP) stood at
124.3 in September, compared with 116.5 in the corresponding month last year,
based on the revised base year of 2022-23.
(Business Today)
RBI Governor urges States
to onboard onto ULI, utilise Programmable CBDC for Direct Benefit Transfers: Reserve Bank of India Governor
Sanjay Malhotra on Tuesday urged the States to onboard onto the Unified Lending
Interface (ULI) and utilise Programmable Central Bank Digital Currency (P-CBDC)
for Direct Benefit Transfers (DBT). It may be pertinent to mention here that
Deputy Governor Rohit Jain, in the August 5, 2026, post-monetary policy press
conference, noted that a lot of interest is being shown by different State
Governments to use the CBDC and the ULI for different schemes and that the
central bank is in constant dialogue with them to increase their usage. ULI
enables lending institutions to offer frictionless, end-to-end digital credit
by leveraging consent based data and related services. The programmability
feature of CBDC serves as a key enabler for financial inclusion by ensuring
delivery of funds to the targeted user.
(Business Line)
IFSCA sets “financial
soundness” norms for payment system operators in GIFT City: The International Financial
Services Centres Authority (IFSCA) has prescribed “financial soundness”
criteria for payment system operators in GIFT IFSC, giving existing operators
six months to comply and requiring new applicants to meet the norms while
applying for authorisation. Under the circular issued on October 27, Trade
Receivables Discounting System (TReDS) operators must maintain a minimum net
worth of $1 million (about Rs.9.5 crore), while issuers of Legal Entity
Identifiers (LEIs) must maintain a minimum net worth of $200,000 (about Rs.1.9
crore). Trade Repositories must maintain net worth equivalent to at least one
year’s operating costs, calculated on a half-yearly basis. Large-value payment
systems and card payment networks must maintain a sound financial status,
although the circular does not specify a fixed minimum net-worth requirement
for these categories.
(Business Line)
India's banking sector
poised for double-digit credit growth despite macroeconomic challenges: India's banking sector
exhibits confidence in achieving sustained double-digit credit growth across
various segments. Demand for retail and SME lending is primarily driving this
credit growth, according to the FICCI-IBA Bankers' Survey. Respondents show
optimism about the emerging revival in private-sector capital expenditure and
improved asset quality. A significant majority anticipates that both retail
loans and SME credit will continue to grow robustly.
(Economic Times)
Bandhan Bank to face a Rs 200 crore hit from insurance norm
change: Facing
an anticipated Rs 200 crore dip in income from proposed cuts to insurance
commissions, Bandhan Bank's managing director, Partha Pratim Sengupta, warns of
potential ripple effects across the banking industry. To counter these
challenges, the bank is set to reshape its business model and focus on
enhancing mutual fund distribution. Moreover, its limited exposure to
drought-impacted regions in Karnataka and Maharashtra helps mitigate overall
financial risks.
(Economic Times)
Banks worry more about
geopolitics than borrowing costs, survey shows: Geopolitical risks and
supply-chain disruptions are major barriers to private sector capital
expenditure growth. A survey indicates that banks anticipate over 9% growth in
industrial credit in the coming months. Public sector banks exhibit greater
concern over these risks compared to private and foreign banks. Key sectors
expected to experience credit demand include infrastructure and auto
components.
(Economic Times)
Jio IPO helps Reliance
overtake Tata Group as India's most valuable conglomerate: Jio Platforms' strong market debut on Wednesday
helped the Reliance Group overtake the Tata Group to become India's most
valuable conglomerate by market capitalisation. Jio Platforms shares extended their gains on debut
day, rising nearly 27 percent over the issue price and taking the company's
market capitalisation past Rs 13 lakh crore. The combined market value of the
Reliance Group crossed Rs 30 lakh crore, surpassing the Tata Group's Rs 25 lakh
crore, according to data compiled by Bloomberg News. The strong listing also helped Jio Platforms
overtake Bharti Airtel to become India's most valuable telecom company by
market capitalisation. It secured the second position among India's listed
companies by market value, behind its parent Reliance Industries.
(Moneycontrol)
Jio Platforms becomes
world's sixth most valuable telecom company, second in Asia after China Mobile: Jio Platforms has become the world's
sixth-most valuable listed telecom company by market capitalisation and Asia's
second-most valuable after China Mobile, following its blockbuster stock market
debut on October 28 that valued the company at approximately $131 billion, or
Rs 12.5 lakh crore. China Mobile leads the global ranking with a market
capitalisation of approximately $221 billion, followed by Verizon at $182
billion, T-Mobile US at $157 billion, AT&T at $141 billion and Germany's
Deutsche Telekom at $135 billion. Jio Platforms, valued at around $131 billion,
has entered the global top six, edging ahead of Bharti Airtel, which has a market
capitalisation of approximately $130 billion. The valuations are approximate
and based on the market-cap figures in the October 28 ranking.
(Moneycontrol)
Cabinet approves Container
Manufacturing Promotion Scheme: The Union Cabinet, chaired by
the Prime Minister Shri Narendra Modi, has approved the Container Manufacturing
Promotion Scheme (CMPS) with budgetary outlay of Rs.10,000 crore upto FY
2039-40 envisages to establish a globally competitive container manufacturing
ecosystem in India, reduce import dependence and strengthen supply-chain
resilience. The scheme is intended to support new manufacturing facilities as
well as expansion of existing container manufacturing units. The scheme will
provide Interest Subvention Assistance (ISA) with a financial outlay of Rs.859
crore to provide Interest subvention of 3% per annum on eligible term loans
(capital loans) availed by container manufacturers.
(PiB)
SEBI to make Direct Plans
default on AMC digital platforms from November 1: Market regulator Securities and Exchange Board
of India (SEBI) Chairman Tuhin Kanta Pandey on Wednesday said Direct Plans will
become the default option on the digital platforms of asset management
companies (AMCs) from November 1, with investors opting for Regular Plans to be
informed about their higher expense ratios. The move aims to improve transparency in mutual
fund investments and help investors understand the cost implications of their
choices. Direct Plans generally have lower expense ratios because they do not
involve distributor commissions, while Regular Plans are sold through
distributors and carry higher costs. Pandey said SEBI was reviewing listing and
disclosure obligations and would revisit the regulatory framework governing
mainboard initial public offerings (IPOs) and follow-on public offers (FPOs).
The regulator is also examining the SME IPO framework and the Innovators Growth
Platform to improve access to public capital for growing businesses.
(Moneycontrol)
Cabinet approves 3% DA hike
for central government employees, pensioners: The Union Cabinet on Wednesday approved a 3%
increase in Dearness Allowance (DA) for Central government employees and
Dearness Relief (DR) for pensioners, taking the rate from 60% to 63% of basic
pay and pension. The revision, with an estimated financial implication of Rs.10,016
crore, will be effective retrospectively from July 1, 2026, providing relief to
employees and pensioners ahead of Diwali. The increase follows the accepted formula based on
the recommendations of the 7th Central Pay Commission (CPC). Around 48 lakh
Central government employees and 68 lakh pensioners are expected to benefit
from the revision. For employees and pensioners under the 6th CPC pay scales,
DA and DR have been increased by 7 percentage points, from 262% to 269% of
basic pay and pension, respectively, effective July 1, 2026.
(Business Today)
Cabinet approves Pradhan
Mantri Viksit Gram Swaraj Yojana as a Centrally Sponsored Scheme for 2026-27 to
2030-31:
The Union
Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved a
Centrally Sponsored Scheme (CSS), namely, the Pradhan Mantri Viksit Gram Swaraj
Yojana (PM VGSY), a next-generation governance transformation initiative
aligned with the national vision of Viksit Bharat. The scheme is approved for
implementation from 2026-27 to 2030-31 (co-terminus with the Sixteenth Finance
Commission period). The scheme outlay is Rs.7,395.55 crore, comprising
a Central Share of Rs.4,869.48 crore and a State Share of Rs.2,526.07 crore. Around 32 lakh elected
representatives, along with Panchayat functionaries and other stakeholders,
across over 2.55 lakh Panchayats and Traditional Local Bodies will be direct
beneficiaries of the scheme. Each awareness-generation episode will reach at
least 1 crore citizens.
(PiB)
LAFFER CURVE
·
The
Laffer Curve showcases the intricate relationship between tax rates and
government revenue, a concept popularized by economist Arthur Laffer in 1974.
This theory posits that both excessively high and low tax rates result in
reduced tax revenues, suggesting that tax cuts can potentially enhance revenue
collection.
·
The
economic effect is longer-term and has a multiplier effect. As a tax cut
increases income for taxpayers, they will spend it. The increase in demand
creates more business activity, spurring an increase in production and
employment.
RBI KEY RATES
Repo
Rate: 5.50%
SDF:
5.25%
MSF
/Bank Rate: 5.75%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 95.2278
INR
/ 1 GBP : 126.4657
INR
/ 1 EUR : 105.8641
INR
/100 JPY: 60.3100
EQUITY INDEX
Sensex:
73246.03 (-352.64)
NIFTY:
22698.85 (-50.90)
Bnk NIFTY: 54267.40 (+292.50)
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