1) A surge in company registrations was observed in India, with more than 1.85 lakh companies registered in the last fiscal year.
In the fiscal year 2023-24 (FY24), India witnessed the registration of 1.85 lakh new companies, as per the data shared by the Union corporate affairs ministry. In the month of March alone, 16,600 companies were set up, the official data released on May 6 showed. The number of new companies incorporated during FY24 is 15% higher as compared to 1.59 lakh companies registered in FY23.
Another key metric shared by the ministry showed that the companies in FY24 were set up with a cumulative paid up capital of ?30,927.4 crore, as against ?18,132.16 crore in FY23. At the end of March 2024, the country had a total number of 26.63 lakh companies and out of them, 16.91 lakh companies or 64% were active. As many as 9.31 lakh registered companies were closed, 2,470 were dormant entities and 10,385 companies were under liquidation.
A total of 27,022 companies were under the process of being struck off from official records. Out of the new companies set up in FY24, 71% were in the services sector, followed by 23% in the industrial segment and 6% in agriculture. "Broader economic activity-wise classification reveals that community, personal and social services observed the highest rise of 11% in the service sector as compared with FY 2022-23," it said.
2) Outstanding amount of home loans increased from ?17.27 lakh cr in March 2022 to ?27.23 lakh crore in March 2024.
Credit outstanding to the housing sector rose by nearly Rs 10 lakh crore in the last two fiscals to reach a record Rs 27.23 lakh crore in March this year, according to RBI's data on 'Sectoral Deployment of Bank Credit'.
Experts from banking and real estate sectors attributed this growth in housing credit outstanding to a strong revival in the residential property market post-COVID pandemic on pent-up demand.
According to the data of the Reserve Bank of India (RBI) on sectoral deployment of bank credit for March 2024, the credit outstanding to the housing (including priority sector housing') stood at Rs 27,22,720 crore in March 2024, up from Rs 19,88,532 crore in March 2023, and Rs 17,26,697 crore in March 2022. The data also showed that the credit outstanding towards commercial real estate stood at Rs 4,48,145 crore in March 2024. It was at Rs 2,97,231 crore in March 2022.
3) Zoho stays a private company or wont be able to work from village: CEO Sridhar Vembu
The billionaire CEO of Indian software MNC Zoho Corporation, Sridhar Vembu, shared with his followers on X that he wants to continue running Zoho as a private company. He said running a public company is tougher than a private one.
"It is like being on the treadmill all the time," he wrote in a post on X. At first, his reasons are personal more than collective. However, he clarifies how private status benefits everyone associated with the organisation.
"Personally, as a public company CEO, I won't be able to live in a remote village and work on my own deep tech projects along with the school, the farm and rural works - the pressure to manage the stock price would be brutal, and then I would have to transmit that pressure to everyone else in the company…That relentless pressure leads to employee burnout and attrition", Vembu added.
4) Billionaire Rishad Kaikhushru Naoroj, a low-profile member of Godrej Group, will gift most of his company shares to nephews and nieces.
The Godrej group is one of the oldest family businesses in the country. The family recently announced the plan to strategically split their company, setting up two separate entities named Godrej Enterprises and Godrej Industries. The present market value of the Godrej Group has been estimated to be around $16.7 billion (approximately Rs 1.3 lakh crore). Amid the reconstruction of the company, Rishad Kaikhushru Naoroji has reportedly decided to give away his shares of the company to his family members. According to a LiveMint report, Rishad is a member of the governing council and serves as a director for Godrej Investments Private Limited and Godrej Holdings Private Limited. He is set to gift most of his shares to his nephews and nieces. He holds shares in entities like Godrej Consumer, Godrej Properties, and Godrej Industries with a valuation of around Rs 7000 crore.
As per the data from Forbes, Rishad Naoroji’s net worth is estimated to be around $3.8 billion (approximately Rs 31,000 crore). Adding to it, he also holds shares of undisclosed amounts in other companies of the 127-year-old business. The other shareholders of the companies include Adi Godrej, Nadir Godrej, Jamshyd Godrej and Smita Crishna-Godrej.
Rishad Naoroji is the son of Kaikhushru Naoroji and Dosa Godrej. His father Kaikhushru Naoroji joined the family business after retiring from Imperial Chemical Industries, England. Despite belonging to such a business family, he never had an interest in the business. With a passion for Wildlife conservation, he founded Raptor Research and Conservation Foundation in 2011. The organisation aims to conserve raptors and work for their betterment. He is also a member of Bombay Natural History Society.
5) India to export 14,000 MT non-basmati white rice to Mauritius.
Though exports of non-basmati white rice have been banned since July 20, 2023 to boost domestic supply, exports are allowed on the basis of permission granted by the government to certain countries to meet their food security needs on request.
"Export of 14,000 MT of non-basmati white rice to Mauritius has been permitted through NCEL," it said.
Earlier, India has allowed exports of the commodity to African nations including Tanzania, Djibouti and Guinea-Bissau. Besides, export of non-basmati white rice was permitted to countries like Nepal, Cameroon, Cote D' Ivore, Guinea, Malaysia, Philippines, and Seychelles.
NCEL is a multi-state cooperative society. It is jointly promoted by some of the leading cooperative societies in the country, namely, Gujarat Cooperative Milk Marketing Federation (GCMMF) popularly known as AMUL, Indian Farmers Fertilizer Cooperative Ltd (IFFCO), Krishak Bharati Cooperative Ltd (KRIBHCO) and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).
6) ICICI bank introduces UPI for NRIs using international mobile numbers.
ICICI Bank has unveiled a groundbreaking feature allowing non-resident Indian (NRI) customers to utilize Unified Payments Interface (UPI) transactions in India through their international mobile numbers. This innovation aims to simplify daily payments for NRIs by eliminating the need to register an Indian mobile number with their NRE/NRO accounts, thereby enhancing convenience.
Previously, NRIs had to link an Indian mobile number to their NRE/NRO accounts to use UPI, restricting their payment capabilities. With ICICI Bank’s new offering, NRIs can now leverage their international mobile numbers registered with their accounts for seamless UPI transactions, transforming their payment experience.
To activate UPI on their international mobile numbers, customers can follow a straightforward process through the iMobile Pay app. By verifying their mobile number, creating a UPI ID, and selecting their account number, NRIs can easily initiate UPI transactions without switching to an Indian mobile number.
7) South Korea finds 9 banks illegally shorted ?1,300 crore worth of stocks.
South Korea's market watchdog said on Monday it had found breaches of short-selling rules by seven more banks in the domestic stock market as part of a full-scale investigation into trading practices at foreign investment banks. Last November, South Korea introduced a ban on short selling of stocks in the domestic market, after it found illegal trading by two foreign firms in October, and launched a special investigation to look into trading practices at other banks.
In its interim investigation results released on Monday, the Financial Supervisory Service (FSS) said it had so far found illegal trading by nine banks, including two that have already been fined, out of 14 foreign investment banks, with trading violations totalling 211.2 billion won ($154.76 million).
The other five were still being investigated, the FSS said, without naming any of them.
South Korea's Chosun Ilbo daily reported on Thursday that financial authorities had notified Credit Suisse AG that it could face 50 billion won in fines over allegations it breached short-selling rules.
8) Godrej reported a surprise net loss of Rs 1,893 cr in Q4 as compared with a net profit of Rs 452 cr a year ago.
Godrej Consumer Products (GCPL) reported consolidated net loss of Rs 1,893.21 crore in Q4 FY24 as compared with net profit to Rs 452.14 crore in Q4 FY23. Revenue from operations increased 5.8% YoY to Rs 3,385.61 crore in Q4 FY24.
The FMCG company reported pre-tax loss of Rs 1684.47 crore in Q4 FY24 as against pre tax profit of Rs 555.51 crore posted in corresponding quarter last year.
In Q4 FY24, consolidated volume grew by 12%, sales grew by 6% in Rs terms impacted by devaluation, constant currency growth of 30% YoY. India business volume registered the growth of 15%, sales grew by 12% year on year to Rs 2,007 crore. Indonesia volume increased by 12%, sales grew by 15% in INR terms and 17% in constant currency terms, year on year. EBITDA jumped 12% YoY to Rs 535 crore.
9) India has 64 Ghost malls. A mall with a vacancy rate of more than 40% is a ghost mall.
Many small shopping centres in India are transforming into desolate complexes as consumers switch to online purchases and bigger shopping centres for a better shopping experience, according to a report by Knight Frank India. One of the key parameters to determine a shopping centre's health is its vacancy rate. Malls with a vacancy rate exceeding 40 per cent are defined as ‘ghost malls’. The report shows that the count of ghost malls increased to 64 in 2023 from 57 in 2022 despite having a 238 per cent year-on-year surge in the gross leasable area (GLA) of all shopping centres in top Indian markets.
The top eight cities in India, including Delhi, Mumbai, and Bengaluru, saw a downward growth in the overall count of shopping centres to 263 in 2023. During the year, eight new retail centres were inaugurated while 16 were shut down.
As per the report, this trend shows a low consumer demand ringing alarms for the health of shopping complexes. The trend also prompts potential job cuts and economic disruption for small-scale retailers and service providers.
10) Celebs, influencers must take responsibility for products they endorse: SC
The Supreme Court warned that celebrities, social media influencers, and advertisers will share equal responsibility and liability if they endorse and disseminate deceptive and misleading advertisements or services concerning food and health products, as reported by The Economic Times. The apex court said, "It is the shared responsibility of advertisers and endorsers, including celebrities and influencers, to ensure the accuracy of advertisements."
"Endorsements by public figures, influencers, celebrities, etc., go a long way in promoting a product, and it is imperative for them to act with responsibility when endorsing any product in the course of advertisements," remarked a bench consisting of Justices Hima Kohli and Ahsanuddin Amanullah.
It mandated advertisers to submit self-declaration forms affirming their adherence to cable TV rules and advertising codes before broadcasting ads. Additionally, television broadcasters must upload these declarations onto the Broadcast Seva Portal before airing the ads, as per the directive. The relevant ministry has been instructed to establish a portal for advertisers to submit self-declarations for print media ads within four weeks.
11) Covishield maker AstraZeneca withdraws its COVID-19 vaccine globally.
The pharmaceutical giant AstraZeneca has reportedly withdrawn its COVID-19 vaccine Vaxzevria, also known as Covishield, worldwide, citing commercial reasons for the decision. “As multiple, variant COVID-19 vaccines have since been developed, there is a surplus of available updated vaccines. This has led to a decline in demand for Vaxzevria, which is no longer being manufactured or supplied,” various media outlets quoted the company was quoted as saying.
A document hosted by the EU’s European Medicines Agency website confirmed that Vaxzevria was no longer authorized in the region. In an email to DW, virologist Wolfgang Preiser said “the demand for SARS-CoV-2 vaccines is very low and unlikely to pick up significantly in the foreseeable future, so I understand the reasoning”.
AstraZeneca, who developed the vaccine with Oxford University, said it was “incredibly proud of the role Vaxzevria played in ending the global pandemic”. More than three billion doses were supplied globally. Independent studies estimate that more than 6.5 million lives were saved in the first year that it was used. The Oxford-AstraZeneca vaccine was developed within the first months of the pandemic in 2020. It was first approved in the UK on December 30, 2020, with other countries granting the vaccine conditional marketing authorization later in 2020 due to the urgency of the pandemic.
12) Pakistan Govt asks telecoms to block sim cards of 5 lakh tax defaulters. Telecoms refuse to comply.
The Pakistan Telecommunications Authority (PTA) has refused the Federal Bureau of Revenue’s (FBR) demand to block the mobile phone SIMs of over half a million individuals who did not file tax returns in 2023, it emerged on Saturday.
Earlier this week, the FBR released a comprehensive list of 506,671 non-filers, adding that their mobile phone SIMs would be promptly blocked. The PTA and other telecom providers were ordered to comply with the decision.
The decision was issued in Income Tax General Order (ITGO) no 01 of 2024, which said that the mobile SIMs for these individuals would stay blocked until restored by the FBR or the Commissioner Inland Revenue. In a declaration issued on Friday regarding enforcement of the ITGO, the PTA said its execution did not fall within its jurisdiction and thus the order would have “no legal binding effect” since it was inconsistent with the applicable legal framework.
13) Tata Punch, available in ICE and EV has emerged as the best-selling car in India for two consecutive months, which is unprecedented, in a market dominated by Maruti.
The April 2024 sales figures for cars are out, and the Tata Punch remained the best-seller. However, Maruti still dominated the sales chart, with 8 of the top 15 models. Here’s how each model in the top 15 list performed in April 2024.
For the second consecutive month, the Tata Punch was the best-selling car in the country. More than 19,000 units of the Punch were dispatched in April 2024, and its year-on-year sales also saw a significant increase of 75 percent. Note that these figures include the sales of both Tata Punch ICE (internal combustion engine) and Tata Punch EV. With over 17,800 units dispatched, the Maruti Wagon R overtook the Hyundai Creta to become the second best-selling car in April 2024. Though the Wagon R’s April sales were almost 1,500 units more than the previous month, it still faced a loss of 15 percent in yearly sales.
The Maruti Brezza climbed to the third position from ninth in the monthly sales table, with its tally crossing over 17,000 units in April 2024. It has registered a positive growth of 17 percent and 45 percent, in both month-on-month (MoM) and YoY sales, respectively.
14) Rental prices in 13 major Indian cities have surged by 16% yoy in Q4. Highest 3 being Noida at 32%, Gurugram 24.5% and Bengaluru 23,.7%.
Magicbricks has released its rental update for January-March 2024, indicating a surge in rents across 13 major Indian cities. The report highlights a 16 per cent year-on-year increase in rents, with Greater Noida, Gurugram, and Bengaluru leading the way with Y-o-Y growth rates of 32.1 per cent, 24.5 per cent, and 23.7 per cent, respectively.
The quarterly report also notes a 2.8 per cent Quarter-on-Quarter (Q-o-Q) increase in rents, following a 1.6 per cent increase in the previous quarter between October and December 2023. According to Magicbricks, rental demand has seen a substantial 16 per cent Q-o-Q increase during the period under review. Chennai, Navi Mumbai, and Noida saw the highest demand growth rates of 24.9 per cent, 20.1 per cent, and 19.2 per cent Q-o-Q, respectively.
The report further indicates that the demand for rental accommodation within the budget of ?10,000 to ?30,000 per month dominates the market, accounting for 42 per cent of the total demand share.
15) Cashew prices likely to fall due to low quality imports from Africa.
Cashew prices in the Konkan region of India are likely to fall due to low-quality imports from Tanzania, Mozambique, and Ghana. Although cashew production has decreased, prices have remained the same due to these imports. Traders may also prefer to buy cashews at a low price and sell them at a higher price.
Konkan, which is considered the finest producer of mangoes, is also known for its cashew orchards. But low-quality imports of cashews from Tanzania, Mozambique and Ghana have led to a fall in the prices of cashews in the region. Cashew growers who spoke to NDTV Marathi said they expected good prices for the dryfruit as its production saw a dip. But the prices of cashews remained the same due to imports from Africa. Traders also prefer to purchase cashew at a low price and sell it at a higher price, one producer said. "This has led us to a dilemma with African cashews on one side and local traders on the other."
India imports about half of its raw cashew nut requirements from African countries, as it only produces 7 lakh tonnes of raw nuts compared to a need of 14-16 lakh tonnes. Africa lacks the infrastructure and technology to process raw cashews into finished products, such as cashew butter, cashew oil, and roasted cashew nuts. This limits Africa's ability to capture the full value of its cashew harvest. The value-adding process of shelling cashews requires technology, training, and labor that smallholder farmers in Africa lack. As a result, the small percentage of shelled nuts exported from Africa sell for a lower price than the global average.