Today’s Latest Business News, Finance and Share Market News at 9:30 am on 11th October 2022

IT giant TCS beats the expectations with stellar Q2 numbers. The largest IT services exporter on Monday reported an 8.4 per cent growth in its September quarter net profit at Rs 10,431 crore, crimped by a dent on margins. The Tata group company, however, said the operating environment is “challenging” and warrants “vigilance”, even though the headwinds posed by factors like recession in its biggest market US, rising inflation around the world and currency volatilities are yet to materialise into its order pipeline. Its Chief Executive Officer and Managing Director Rajesh Gopinathan said it is difficult to say if the company will be completely insulated from the events as they unfold, and made it clear that it will try to minimise the risks as much as possible. The reporting quarter saw an 18 per cent jump in revenues to Rs 55,309 crore as against Rs 46,867 crore in the year-ago period, but it was a 1.60 percentage points narrowing in the operating margin to 24 per cent which crimped the profit growth.

From world of corporate, here’s latest on the economic front. The government is planning to launch 7-8 production-linked incentive schemes in the next round soon in a bid to further expand the coverage across critical manufacturing sectors, stimulate economic growth and spur job creation, official sources said. The new PLI schemes will cover segments, including textiles, electronic components, furniture, toys and leather, said the sources. Tens of thousands of crores would be extended as incentives. The government intends to make fresh budgetary allocation for the schemes, apart from using savings from the earlier PLI schemes. The move follows ‘good response’ to the 14 such schemes, which have been announced since 2020 and are estimated to lead to an incremental manufacturing of more than $500 billion over five years.

Now some banking news. To make the strategic disinvestment of IDBI Bank hassle-free, the government may give an assurance to the potential buyer in the share purchase agreement, that the latter will have a free hand in running the bank. On October 7, the Centre invited expressions of interest for IDBI Bank and offered to sell a total of 60.72% stake in the bank, including 30.48% held by the government and 30.24% by LIC, along with the transfer of management control. Post the transaction, the government and LIC together will have a 34% residual stake in the lender. According to the Banking Regulation Act, 1949, the voting right of a shareholder or shareholders acting in concert in a bank can’t exceed 26%, even if they own more than 26%. In effect, the acquirer of IDBI Bank with 60.72% stake will have a voting right of 26% only, the same as the government and LIC.

Moving on. Elon Musk’s SpaceX-owned satellite internet service provider Starlink has started talks with the department of telecommunications to apply for a licence to offer satellite-based communication services in the country. To provide satellite-based communication services, companies need to get Global Mobile Personal Communication by Satellite licence from the government. Sources said that Starlink is likely to apply for the same within a month. While the licence can be granted to the company by the DoT, the allocation of spectrum is likely to be done only once the Telecom Regulatory Authority of India and the government decide whether the airwaves need to be auctioned or allocated administratively. Starlink had started taking bookings for its satellite-based services from Indian customers a year ago but was directed by the government to call off such bookings.

In other news, Union Finance Minister Nirmala Sitharaman will reach Washington today to attend an important meeting of the International Monetary Fund and the World Bank. The finance minister during her visit will also hold a bilateral meeting with US Treasury Secretary Janet Yellen. Sitharaman upon her arrival will participate in a fireside chat on “India’s Economic Prospects and Role in the World Economy” at the prestigious Brookings Institute think-tank and soon after hold a bilateral meeting with Yellen at the Department of Treasury.

And finally, here’s look at today’s stock market buzz. Frontline indices BSE Sensex and NSE Nifty 50 are likely to witness a muted start, hinted SGX Nifty. Nifty futures were trading 11.5 pts higher at 17,239.5 on the Singapore Exchange ahead of today’s session, signalling that Dalal Street was headed for a flat start. Shares in Asia were mixed on Tuesday, while US stocks ended in red overnight. Japan’s Nikkei 225 dropped around 2%, and South Korea’s Kospi fell 2.26%. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.36%. On Wall Street, the Nasdaq Composite closed at its lowest since July 2020, down 1.04%, dragged lower by a slump in semiconductor stocks. The S&P 500 also slipped 0.75%.

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