Inflation angst spreads to India bonds as Reserve Bank downplays risk




India’s sovereign bond market is pricing in growing inflation risks, even as the central bank sees the price pressures as transient.


The yield on India’s benchmark 10-year bond jumped 16 basis points in July, the most among similar-tenor notes from other Asian sovereigns, as retail inflation remained persistently above the Reserve Bank of India’s 2%-6% target range.


Still, the RBI is widely expected to leave its key rates unchanged on Friday continue with its easy monetary stance, as it prioritizes growth after the economy was ravaged by the deadly wave of Covid-19 infections. Governor Shaktikanta Das has insisted that recent inflation readings are only “a transitory hump.” Although, bond investors are skeptical.


The spike in inflation may not be transient while some lower readings are in the offing, it will pick up from December, according to Marzban Irani, chief investment officer for debt at LIC Mutual Fund Asset Management Ltd. “Yields are already at ultra low levels need to correct. I see the 10-year going to 6.5% then even to 7% in a year’s time,” he said.


The RBI, unlike central banks in New ZealSouth Korea, is constrained from taking a hawkish stance as India’s economic recovery is still nascent. Growth showed signs of cooling in June as the slow easing of lockdowns hurt activity. Economists still see consumer inflation picking up pace to 5.7% 5.2%, respectively, for the final two quarters of 2021, according to a Bloomberg survey.


India’s central bank has so far managed to keep yields low by conducting bond purchases, softening the blow from the near-record amount of sovereign debt sales this fiscal year, but there are signs that traders’ patience is wearing thin. The benchmark 10-year bond yield surged to 6.23% last month, the highest since March, as investors pushed for higher yields at an auction, prompting the RBI to seek help from underwriters to rescue the sale.


Even though steady rates are a given at this week’s rate review, any talk of policy normalization could further pressure bond yields higher. However, traders aren’t ruling out unconventional moves that the RBI is known to do as it navigates the growth versus inflation dilemma.


“The Governor has been clear that the policy focus remains on revival of growth,” said Suyash Choudhary, head of fixed income at IDFC Asset Management Ltd. “Inflation will likely continue to be viewed as transitory focus will remain on orderly evolution of the yield curve.”

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Tokyo Olympics 2021 LIVE, women’s hockey QF: GER 0 | 2 ARG at half time


Indian women’s hockey team

On Day 10 of Tokyo Olympics 2021, all eyes would be on India women’s hockey team who will play their first quarterfinal in Olympics history against the strong Australian side today. The India vs Australia hockey match will begin at 8:30 am IST. India would be hoping a good performance from sprinter Dutee Chdiscus-thrower Kamalpreet Kaur, who was one of the two athletes to meet the automatic qualification mark [64.00m] moved into the final ranked second in qualification.

Tokyo 2020 Medal Tally

ALSO READ: Tokyo Olympics 2021 India contingent: List of Indian athletes, officials

 

India’s last hope in shooting

 

Former Navy man Sanjeev Rajput, now into his third Olympics, young Aishwary Pratap Singh Tomar, who is on his Olympic debut, will look to bring cheers to the Indian shooting contingent in Tokyo, when they compete in the men’s 50m Rifle 3 positions qualification round, at the Asaka Shooting range on Monday, the 10th concluding day of the shooting competitions.

 

Rajput Tomar are ranked sixth second in the world in this most gruelling shooting event on schedule.


Both Indians will have to fight hard for a top-eight spot, given the presence of the likes of defending Olympic champion Sergey Kamenskiy of Russian Olympic Committee (ROC) world No. 1 Istvan Peni of Hungary in the 48-strong field, among other heavyweight 3P exponents.


The Indian shooters have had a dismal outing in Tokyo, with only Saurabh Chaudhary making it to the finals of the 10m air pistol event but finishing seventh. All the other shooters in pistol, rifle shotgun shooting have dished out sub-par performances.

 ALSO READ: Olympics 2021: India men’s women’s Hockey full schedule, squad, timings


India today’s schedule

Athletics: 


  • Dutee Chin Women’s 200m Heat 4: 7:25am IST.

  • Kamalpreet Kaur in Women’s Discus Throw Final: 4:30pm IST.

 
Equestrian: 


  • Eventing Second Hose Inspection: 6am IST.

  • Fouaad Mirza in Eventing Jumping Individual Qualifier: 1:30pm IST

  • Eventing Individual Jumping Final: 5:15pm IST.

 Hockey:
 
India vs Australia in Women’s Semifinal: 8:30am IST.
 
Shooting: 


  • Sanjeev Rajput Aishwary Pratap Singh Tomar in Men’s 50m Rifle 3 Positions Qualification: 8:00am IST.

  • Men’s 50m Rifle 3 Positions Final: 1:20pm IST.

 
Important international events today 


  • 6.50 AM — ATHLETICS: Men’s Long Jump final (look out for Cuba’s Juan Miguel Echevarria Jamaica’s Tajay Gayle)

  • 8.40 AM — ATHLETICS: Women’s 100m Hurdles final

  • 1.30 PM 4.30 PM – FOOTBALL: women’s semis – USA vs. Canada Australia vs. Sweden

  • 6.10 PM – ATHLETICS: Women’s 5000m final (watch for Netherland’s Sifan Hassan, Kenyans Helen Obiri Agnes Tirop, Ethiopians Gudaf Tsegay, Senbere Teferi Ejgayehu Taye)

 

Tokyo Olympics 2020 live telecast India streaming details
 
The live broadcast of India’s Olympics matches will take place on Sony Sports Network. Sony TEN 1 HD/SD, Sony TEN 2 HD/SD Sony SIX HD/SD with English commentary. Sony TEN 3 HD/SD to live telecast Tokyo Olympics 2021 with Hindi Commentary. DD Sports will live broadcast India matches on its Direct-to-home DTH service.
 
The live streaming of Olympics 2021 will be available on Sony LIV App website.
 
Stay tuned for Olympics 2021 live updates….
 



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Hindalco Industries plans to invest Rs 8,000-10,000 crore in three plants




Aditya Birla group firm Hindalco Industries is planning to invest around Rs 8,000-10,000 crore in Hirakud, Silvassa Mundra plants.


The investment will be for expanding flat rolling capacity at Hirakud, Odisha, new extrusion plant at Silvassa in Dadra Nagar Haveli, in a greenfield site at Mundra in Gujarat with a recycling facility, Hindalco said in its Annual Report 2020-21.





Stating that the company is planning to expits aluminium downstream business with a focus on value-added products (VAP) over the next three-seven years, Hindalco said its products would cater to customised requirement for varied complex applications of aluminium.


The Hirakud plant capacity for flat rolled products is estimated to be 3,40,000 tonne per annum. The planned capacity of the extrusion plant at Silvassa is 34,000 tonne per annum, which would have three extrusion presses to service premium customers in building construction, automobile transport, electrical, consumer industrial good sectors.


In addition, the new extrusion recycling unit at Mundra is awaiting lacquisition process would have a capacity of 93,000 tonne per annum.


In India, the focus continues to be on downstream that constitutes value-added offerings, primarily in the Flat Rolled Products (FRP) extrusions segments.



“With the market segment presenting sizeable untapped opportunities, we are committed to deploying resources to transform this vertical into a future EBITDA growth driver,” the company said.


The Indian demfor aluminium lags behind global demby a significant margin. This, along with the lower per capita consumption of aluminium, bodes well for robust demgrowth in the medium to long term, it added.


The packaging, construction transportation sectors also remain underpenetrated in India compared to global standards, thereby presenting substantial growth avenues that “we are well-placed to explore capitalise on.”

“In terms of our Indian operations, expansion of the Utkal Alumina refinery will increase operational efficiencies even as we continue our investments to modernise the existing alumina capacities, leading to improvement in the quality of output on-site cost efficiencies,” it said.


Investments in revamping older alumina refineries, such as the Renukoot refinery, are expected to reduce operating costs of these refineries in the future.

(Only the headline picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information commentary on developments that are of interest to you have wider political economic implications for the country the world. Your encouragement constant feedback on how to improve our offering have only made our resolve commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed updated with credible news, authoritative views incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better more relevant content. We believe in free, fair credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

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Macrotech Developers to meet Rs 9,000-cr property sales target in FY22




Realty firm Macrotech Developers expects to achieve its target of 50 per cent growth in sales bookings this fiscal to Rs 9,000 crore despite sluggish housing demin April-May in view of second wave of the Covid-19 pandemic, a top company official said.


Mumbai-based Macrotech Developers, which markets its properties under ‘Lodha’ brand, got listed on the stock exchanges in April this year after raising Rs 2500 crore through its initial public offering (IPO). It is one of the leading real estate firm in the country.


In an interview with PTI, Macrotech Developers MD CEO Abhishek Lodha sounded confident of meeting the sales bookings guidance of Rs 9,000 crore for the current 2021-22 financial year as housing demrecovered strongly after almost a washout in April-May.


The company’s sales bookings stood at Rs 5,970 crore last fiscal year.


“Our housing sales were badly impacted during April-May because of the second wave. But, in June, we achieved sales bookings of around Rs 650 crore demin July is also good,” he told PTI.


Asked whether the company would revise downward its sales bookings guidance, Lodha replied in negative.


ALSO READ: Lodha sells 22-acre lparcel in Palava industrial park to Japanese firm



“Sales bookings in April-May were very low but we have already factored that in our sales guidance. We are on track to achieve Rs 9,000 crore figure, provided there is no further disruption,” he said.


In the April-June quarter, Macrotech Developers clocked a total sales booking of Rs 957 crore, of which Rs 654 crore came in June.


Bullish on the outlook for housing demand, Lodha said: “Importance of owning a house has increased significantly since the outbreak of Covid-19 pandemic. People are using their savings to buy homes. Interest rates on home loans are at historical low.”


To encash pent up as well as fresh demand, he said the company would launch 5 million square feet of projects in this fiscal, of which 0.9 million sq ft were already launched in the first quarter. The company has inventories in the ongoing housing projects as well.


“Housing demis gradually consolidating towards trusted developers. New supply is more disciplined,” he observed.








ALSO READ: Lodha Developers makes weak stock market debut as shares fall 5.8%



Lodha said the company would continue to focus on the Mumbai Metropolitan Region (MMR) Pune markets for development of housing as well as industrial logistics parks. The company does not have any plan to enter new geographies but will expaggressively in various micro-markets of the MMR Pune, where it has no or limited presence, through partnerships with landowners.


In the warehousing development business, Macrotech recently sold 22.3 acres lparcel in its Pallava Industrial Logistics Park to a Japanese firm for an estimated deal value of around Rs 80 crore. On debt, Lodha said the company’s net debt has reduced by 23 per cent during the first quarter of this fiscal year to Rs 12,435 crore.


“We will reduce our debt further in the coming quarters. We are on track to meet the guidance of bringing net debt below Rs 10,000 crore level at the end of this fiscal year,” he added.


The company’s average cost of debt came down by 70 bps (basis points) from 12.3 per cent in March’ 21) to 11.6 per cent in June’21).


On Friday, Macrotech Developers reported a consolidated net profit of Rs 160.91 crore for the quarter ended June. It had posted a net loss of Rs 134.44 crore in the year-ago period. Total income grew to Rs 1,712.36 crore in the first quarter of this fiscal year from Rs 572.53 crore in the corresponding period of the previous year.

(This story has not been edited by Business Standard staff is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information commentary on developments that are of interest to you have wider political economic implications for the country the world. Your encouragement constant feedback on how to improve our offering have only made our resolve commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed updated with credible news, authoritative views incisive commentary on topical issues of relevance.

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Fauci warns latest COVID-19 wave is ‘going to get worse’


Dr. Anthony Fauci on Sunday warned that the country’s latest COVID-19 surge is “going to get worse” — but insisted he doesn’t expect the climbing case numbers to trigger any new lockdown orders.

The White House chief medical adviser acknowledged that the US has yet to turn the corner in the recent outbreak driven by the spread of the highly contagious delta variant.

NYT WRITER HITS FAUCI IN SCATHING OP-ED

“Things are going to get worse,” Fauci told ABC co-anchor Jonathan Karl on “This Week.”

But Fauci said he still doesn’t expect the nation to shut down again.

“I don’t think we’re gonna see lockdowns. I think we have enough of the percentage of people in the country — not enough to crush the outbreak — but I believe enough to not allow us to get into the situation we were in last winter,” Fauci said — referring to when municipalities across the country instituted strict rules involving mask-wearing business school shutdowns.

CORONAVIRUS: WHAT YOU NEED TO KNOW

The average number of daily new coronavirus cases in the U.S. has nearly doubled in the past 10 days, according to a Reuters analysis.

Fauci said unvaccinated Americans are largely behind the latest outbreak of infections — blamed them for preventing the country from returning to “normal.

“You know what we really need to do. … We say it over over again, it’s the truth: We have 100 million people in this country who are eligible to be vaccinated who are not getting vaccinated. We are seeing an outbreak of the unvaccinated,” Fauci said.

CLICK HERE FOR FULL CORONAVIRUS COVERAGE

“From the standpoint of illness, hospitalization, suffering death, the unvaccinated are much more vulnerable because the vaccinated are protected from severe illness, for the most part,” he said. “And getting us back to normal, the unvaccinated, by not being vaccinated, are allowing the propagation the spread of the outbreak which ultimately impacts everybody.”

To read more from the New York Post, click here.



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