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XIX 10, 32 PAGES, `12.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 76,456.59 ▼ 33.49 NIFTY: 23,264.85 ▲ 5.65 NIKKEI 225: 39,134.79 ▲ 96.63 HANG SENG: 18,176.34 ▼ 190.61 `/$: 83.57 ▼ 0.06 `/€: 89.85 ▼ 0.14 BRENT: $81.41 ▼ $0.22 GOLD: `71,164 ▲ `309 SURYA SARATHI RAY New Delhi, June 11 TO INCREASE COAL availability to the non-regulated sectors (NRS) like cement, steel, sponge iron and captive power units, the Union coal ministry is planning to provide them with long-term linkages, without end-use restrictions. Theplanistomodifythepolicyguidelines for NRS coal linkages issued in 2016, which made it mandatory for these industries to avail coal from state-run coal companies through theauctionroute,andwith specified end uses. Stakeholders’consultations in this regard are scheduled to be held by the coal secretary on June 13,according to sources. Supplies by Coal India to the (regulated) thermal power sector is five times the despatches to the NRS units, but in recent quarters, the NRS consumption of the fuel has been rising at a much faster rate. “Looking at the current and future market dynamics, increased availability of coal and with an objective of reducing coal imports, there may be a need to have a fresh look at the current arrangements of coal supplies to the non-regulatedsectorwithaviewtomoveahead fromaregimeofauctionofcoallinkagesfornot only specified end uses but also to a regime of coal linkages for coal consumers without any specified end use,” the ministry wrote,outlining the agendaforthe meeting. Powerutilities are the largest coal users in the country, consuming nearly 810 million tonnes of the 1-billion tonne fuel produced domesticallyin FY24.However,coal demand by NRS users is also seen to be rising significantly with higher output of critical raw SEBI FINES EX-CNBC AWAAZ ANCHOR, ANALYST `1 CR EACH SEBI ON TUESDAY fined Pradeep Pandya, former CNBC Awaaz markets editor, and Alpesh Vasanji Furiya, a technical analyst, `1 crore each for engaging in fraudulent trading practices. The duo, along with six other entities, have been barred from the securities market for five years. ■ PAGE 18 FE S P E C I A L S ‘The traditional agency model is still critical’ CEO, South Asia, Wavemaker, on the future of the traditional media agency business ■ BRANDWAGON, P9 THE RUPEE FELL 6 paise against the dollar to close at a record low of 83.57 on Tuesday, weighed down by a strong dollar. The weakness in the local currency was in sync with that of other Asian currencies and comes ahead of the US Federal Reserve’s rate decision this week. The local currency plunged to as low as 83.5725, near to its previous record lowof 83.5750 touched inApril,but likely intervention from the Reserve Bank of India (RBI) prevented any further fall in the rupee. “Stronger than expected US data and political uncertainty after the French president called for snap elections M SRIRAM Mumbai, June 11 ■ Stakeholders' consultations scheduled to be held by coal secretary tomorrow ■ Consumption of the fuel in these industries rising at a fast pace materials for infrastructure development and the construction segment. The government expects the thermal coal requirement of the NRS users to be 380.56 MT in FY30, around 100 MT more than current levels. According to government data,as much as 60.91 MT of coal was supplied to the various captivepowerplantsinthecountryinfinancial year 2023-24, up 38.1% year-on-year,while supplies to the steel sector increased 15.3% annually to 9.69 MT.The sponge iron sector received 9.91 MT coal in FY24 (up 28.7%), whilethesuppliestothecementsectorslipped 0.98% onyearto 8.86MT. Continued on Page 17 E-SCOOTER MAKER OLA Electric has received regulatory approval to go ahead with its `5,500-crore initial public offering (IPO), said two sources with direct knowledge, paving the way for the country’s first ever EV stock listing. SoftBank andTemasek-backed Ola had filed its papers with the Securities and Exchange Board of India (Sebi) last December for approval,in a deal meant to help it expand operations. Ola now plans to list its shares by midJuly, and in coming days,will reach out to investors to assess demand for its issue, both sources said. Ola and Sebi did not reply to requests for comment. The electric scooter maker already met global investors in roadshows earlier this year, but will “re-discuss terms and explain the business”, the second source said. The company was last valued at $5.4 billion in September 2023. —REUTERS SHOOTING UP WHEN THE MARKET turned topsy-turvy in May due to the Lok Sabha elections, many retail investors stopped their systematic investmentplans(SIPs),datafromtheAssociationofMutualFundsinIndia(Amfi)showed. As a result,the SIP stoppage ratio shot up to a record highof 88.4% in May. Interestingly,thisisdespitethenumberof overallSIPaccountshittingnewhighsandSIP inflows into the market continuing to climb newpeaks month aftermonth. Asperthedata,4.97millionnewSIPswere registeredinMay,while4.39millionSIPswere discontinued or their tenure got completed. ThismeanstheSIPstoppageratio,whichisthe ratioofSIPsdiscontinuedtothenewSIPsregistered,was 88.4% in May.This was significantlyhighercomparedwiththeSIPstoppage Dec ‘23 Jan ‘24 Source: AMFI Feb Mar Apr ratio of 52% seen inApril and 54% in March. “Ifyoulookatthelasttwoyears,themoney has flown into smallcaps where many investorswould'veputinmoneyoutofthefear of missing out on the market rally.Now,if we areseeinghighstoppages,it'sjustshowingthe riskprofile,”saidSwarupAnandMohanty,vicechairman & CEO of Mirae Asset Investment Managers India. Equities saw heightened volatility in May as the voting for the Lok Sabha polls that was 4.97 4.39 4.03 VIVEK KUMAR M Mumbai, June 11 6.37 Number of SIPs (in million) New registered Discontinued/ tenure completed pushed euro-US dollar pair lower and the dollar index higher. Oil demand and rising crude oil prices are further adding to rupee weakness,” Kunal Sodhani, vicepresident - treasury, Shinhan Bank, told FE. “RBI stepped in to cap the slide in rupee and was seen selling dollar around 83.54 level,” he added. Sodhani said Indian bonds will be included in JP Morgan Bond Index from this month which will start attracting debt inflows,adding that 83.30 now acts as a support while 83.80 acts as a resistance for rupee. Analysts saythe rupeewill continue to remain under pressure and may fall to around 85 before recovering to 83 in the next 2-3 quarters. underway raised some uncertainty over the results. This could have propelled some investorstogoforredemption,marketparticipantssaid. Benchmark Sensex gyrated 4,143.67 points or 5.8% in May as it hit a lifetime high of76,009.68pointsandalsofellto71,866.01 points.The broader market indices saw even sharperswings. (Intra-day, June 11) Inverted scale 83.52 0.07% 83.55 Previous 83.58 close 83.51 83.57 Open Major Asian currencies % change Close 0 Japanese yen -0.02 -0.07 -0.09 -0.16 Singapore dollar Indian rupee Chinese renminbi S Korean won Source: Bloomberg Continued on Page 17 ● WITH PORTFOLIOS FINALISED,MODI 3.0’s MINISTERS STARTASSUMING OFFICE Ministers get going OMCs may look at fuel price cut: Oil minister Puri ARUNIMA BHARADWAJ New Delhi, June 11 GREATERTHRUSTTOdomesticproduction of crude oil, boosting the refining capacityand raising the consumption of naturalgaswouldbethetopobjectivesof the new National Democratic Alliance (NDA) government in the hydrocarbon sector, Hardeep Singh Puri said on Tuesday after assuming charge as the Unionministerofpetroleumandnatural gas forthe secondstraight term. The minister also hinted that if the Indian basket of crude is sustained at around $70-80/barrel,the state-run oil marketing companies (OMCs) may considercutting retail prices of auto fuels. Thegovernmentwould befirmonits target of 20% ethanol blending with gasoline andwork to bring gas underthe goods and services tax (GST),he added. Talking about upcoming projects in therefiningsector,theministersaidBPCL is in advanced stage to set up greenfield refineries,while GAILis also planning an ethane cracker unit for petrochemicals. He,however,didnotdivulgethesiteofthe new unit or the capacity being planned. “BPCL’s Bina refinery is coming up and SHIVRAJ SINGH CHOUHAN, AGRICULTURE MINISTER May ‘24 AGAINST A STRONG DOLLAR Rupee vs dollar 83.49 83.49 « SACHIN KUMAR Mumbai, June 11 SIP stoppages hit fresh high in May ZOMATO INJECTS `300 CR IN Q-COMM Around 4.4 million ARM BLINKIT FOODTECH UNICORN terminated amid ZOMATO will invest market volatility `300 crore into its quick commerce business Blinkit, according to the company’s RoC filings sourced via Tofler, at a time when competition among the quick commerce players has intensified, threatening Blinkit’s market lead.Zomato has so far invested `2,300 crore into Blinkit, after acquiring it for `4,447 crore in 2022. ■ PAGE 4 Rupee closes at record low Ola Electric gets Sebi nod for `5,500-cr IPO Plan is to modify these guidelines for non-regulated sector coal linkages issued in 2016 3.33 INTERGLOBE AVIATION'S PROMOTER entity InterGlobe Enterprises on Tuesday pared a 2% stake in the airline for `3,367 crore through an open market transaction. InterGlobe Aviation is the parent of no-frills carrier IndiGo, while InterGlobe Enterprises is the holding company of Rahul Bhatia's family. ■ PAGE 6 for these industries to avail coal from state-run firms via auction route and with specified end uses 4.29 INDIGO PROMOTER SELLS 2% STAKE FOR `3,367 CRORE ■ Norms make it mandatory 2.33 THE FINANCE INDUSTRY Development Council, the representative body for non-bank lenders has asked the Reserve Bank of India (RBI) for a review of the proposal to increase the provisions that lenders have to set aside against infrastructure project loans. ■ PAGE 6 IN THE OFFING 4.98 NBFCs URGE RBI TO REVIEW PROPOSED INFRA PROJECT RULES Move amid surging demand from sectors like cement & steel 2.13 INDIAWILL REMAIN the fastest-growing of the world’s largest economies, although its pace of expansion is expected to moderate with a steady average annual growth of 6.7% between FY25 and FY27, the World Bank said in its June Global Economic Prospects report. It raised India’s growth projection by 0.2 percentage points each to 6.6% for FY25 and 6.7% in FY26 compared with its projection in January this year. This is, however, way below the 7.2% projected by the Reserve Bank of India last week. ■ PAGE 3 5.18 WORLD BANK RAISES INDIA’S FY25 GROWTH FORECAST Coal supplies to non-power units may be eased 2.38 NEWS END-USE CURBS SET TO BE LIFTED 2.08 IN THE WELFARE OF THE FARMERS REMAINS A KEY PRIORITY AND GROWTH IN AGRICULTURE WILL STRENGTHEN THE INDIAN ECONOMY Hardeep Singh Puri assumes charge as the petroleum and natural gas minister, in New Delhi on Tuesday Cauverybasin refineryis also coming up byIndianOil at Chennai,” he said. Whileretailpricesofdieselandpetrol are deregulated,the state-run OMCs are perceived to pay heed to the inflation dynamics and other political-economy factors,while taking their pricing decisions. Puri’s comments on the OMCs’ next move assumes significance in this context. Deflation in ‘fuel and light’ is likelyto deepen in May,to -5.2% against -4.2%inApril,andthesegmentisseento staydeflationaryinthenear-termowing tohighbaseeffects,andlowenergyprices. Continued on Page 17 JYOTIRADITYA SCINDIA, COMMUNICATIONS MINISTER IT IS A LITTLE BIT LIKE COMING FULL CIRCLE FOR ME...BOTH TELECOM DIVISION AS WELLAS THE INDIA POST DIVISION HAVE ATREMENDOUS ROLE TO PLAY ATTHE GLOBAL STAGE... ASHWINI VAISHNAW, ELECTRONICS & IT MINISTER WE HAVE TO KEEP BUILDING SO THAT INDIA CAN STAND EQUAL WITH OTHER COUNTRIES WHEN IT COMES TO TECHNOLOGY Continued on Page 5 SHOWCASES REVAMPED SIRI, OPENAI PARTNERSHIP Apple looks to sell more iPhones as it unveils its own AI JEFFREY DASTIN & ADITYA SONI San Francisco, June 11 APPLE'S DEVELOPER CONFERENCE on Monday was about more than infusing its software with the latestartificialintelligence(AI) technology, includINSIDE ing from ChatThe new AI GPT. It was also about selling kingmaker more iPhones. ■ PAGE 8 Facing choppy conDeep dive sumerspending into Apple and resurgent Intelligence techrivals,Apple ■ PAGE 9 has looked to AI asawaytoinvigorateitsloyalfanbaseofmorethan1 billion customers and to reverse a sales decline for its biggest-selling TECH-ING IT FORWARD ■ Apple revealed what it called Apple Intelligence, its take on generative AI ■ Demonstrated how it could generate custom emojis, a cartoon to text friends or edits making an email sound more professional ■ Its digital aide Siri could prompt users if they wanted ChatGPT's help too product.Thesoftware,whichrequires at least an iPhone 15 Pro or Pro Max to operate,may encourage a cascade of new purchases, several analysts said. Some predicted the biggest upgrade cycle come autumn since Apple’s release of the iPhone 12 in 2020,whichdrewconsumersinpart through 5G connectivity. “What we saw today was more ■ Customers have to upgrade to iPhone 15 Pro or Pro Max to be able to use the features ■ The AI, built so it can process data privately on a user's device, depends on chips in Apple’s newer smartphones compelling than anything we’ve seen since,” analyst Gil Luria of DA Davidson said. Continued on Page 17 Musk threatens to ban Apple devices over OpenAI ties BILLIONAIRE ELON MUSK said he would ban Apple devices from his companies if OpenAI’s artificial intelligence software is integrated at the operating system level, calling the tie-up a security risk. The remarks followed a presentation on Monday byApple,when the iPhone maker said that customers would have access to OpenAI’s ChatGPT chatbot through the Siri digital assistant.Apple plans to roll out the capabilities as part of a suite of new AI features later this year. Musk co-founded OpenAI but hadafalling-outwiththeSan Francisco-basedstartup.He has voiced concerns about the safety implications of speedy development of generative AI technology, but he’s also working on his own competitor to ChatGPT. —BLOOMBERG Ahmedabad