Top business stories in a capsule
Sensex ends 107 pts higher, Nifty at 9952
Buying activity picked up momentum in the Indian markets on Tuesday as the Sensex and Nifty rebounded from Monday’s losses following tensions surrounding North Korea. The BSE Sensex closed 107 points higher at 31,809 while the Nifty rose 40 points to close above the 9,900 level. Reliance industries and Coal India were amongst the top gainers of the day. Nearly 70 stocks hit a fresh 52 week high on the NSE in the day’s trade. Infosys, SUN TV and Yes Bank were trading as the most active stocks in terms of value.
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HDFC- too big to fail according to RBI
The Reserve Bank of India on Tuesday included financial major HDFC in the ‘too big to fail list’ along with SBI and ICICI bank. When a financial institution like a bank becomes so important that their failure would put the nation’s economy at risk, then that institution is termed as ‘too big to fail’. It states that if the bank fails then the government steps in to save it. Apart from getting security from the RBI, these banks will be subject to higher levels of supervision and have to maintain a core capital requirement. The SBI and ICICI were included in this list in 2015._______________________
Service sector continues to contract in 2nd month post GST
The Service sector Purchasing Manager’s Index (PMI) continued to slow down for the second month post the GST rollout. The index stood at 47.5 in August, merely improving from the all-time low of 45.9 in July. Any number below the range of 50 is denoted as a contraction in this Index. But, on the positive side, the manufacturing sector has rose to 51.2 in August from a 101-month low of 47.9 in July. New orders and growing outputs have helped the manufacturing sector grow in the month of August. The survey added that although manufacturing production rebounded from July’s downturn, growth was insufficient to offset the contraction in services activity._____________________
Minimum wages hiked to 21,000: Report
After approving the 7th pay commission, the Narendra Modi government is likely to increase the minimum wages of central government employees from 18,000 to 21,000. However, the demand was to hike the amount to 25,000, OneIndia reports. The central government has already approved the 7th pay commission with 34 modifications, which will benefit around 48 lakh employees and 52 lakh pensioners. Once the government approves this hike, it would be implemented from January 1st._____________________
Why are automakers offering huge discounts this season?
Indian automakers are more than happy to give huge discounts this festive season to Indian car-buyers. Hyundai, Maruti, Mahindra among others are offering huge incentives post the GST rollout in order to boost sales. According to the dealers in three metro cities, the discounts across models have increased by 5-10% compared to the festival period last year. Maruti is offering a discount up to 35,000, Hyundai 60,000 and Mahindra up to 65,000. This year, the festive season is extremely crucial since retail sales for most of the car makers fell after July._______________________
