BACK PAGE, P18 COMPANIES, P4 INTERNATIONAL, P3 BETWEEN NOW AND 2030 IT’S FUTURE INVESTMENT, SAYS FIRM TO BLOCK LOW-COST COMPETITION India needs to create 60-148 mn more jobs: IMF’s Gita Gopinath Losses mounting at TVS Motor-owned Norton Motorcycles China-made EVs lose steam in EU as new tariffs take effect CHENNAI, SATURDAY, AUGUST 17, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLV 88, 18 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: 80,436.84 ▲ 1,330.96 NIFTY: 24,541.15 ▲ 397.40 NIKKEI 225: 38,062.67 ▲ 1,336.03 HANG SENG: 17,430.16 ▲ 321.02 `/$: 83.95 < > 0.00 `/€: 92.27 ▲ 0.31 BRENT: $80 ▼ $1.04 GOLD: `70,265 ▼ `183 — IN THE NEWS US RECESSION FEARS EASE, FED RATE CUT HOPES RISE Markets jump nearly 2% RULES TIGHTENED FOR PEER-TO-PEER Log biggest single-day LENDING PLATFORMS gain of the month THE RBI ON Friday tightened the rules for peer-to-peer (P2P) lending platforms, prohibiting them from taking any credit risk, offering credit enhancement or providing guarantees, reports Sachin Kumar. A P2P platform should not promote peer-to-peer lending as an investment product, said the RBI. ■ PAGE 6 FOOD INFLATION SEEN PEAKED, MAY REMAIN AT 5.5-6% FOOD INFLATION, WHICH stayed above 6% for a year till June, may have seen the peak, economists said, report Priyansh Verma and Sandip Das. It rose 9.36% in June, fell to 5.42% in July. However, price pressures are moderating, and in the remaining months of FY25, it may average between 5.5-6%. ■ PAGE 2 HINDUSTAN ZINC OFS SUBSCRIBED 1.23 TIMES ON DAY 1 THE OFFER FOR sale of Vedanta group firm Hindustan Zinc received a strong response on Day 1, with nonretail investors placing bids for 6.3 crore shares, according to a regulatory filing, reports PTI. URBAN JOBLESS RATE EASES IN Q1, RISES AMONG FEMALES THE UNEMPLOYMENT RATE in urban areas eased a tad to 6.6% in April-June from 6.7% in the previous quarter, reports Priyansh Verma. The unemployment rate of males fell to 5.8% in Q1FY25 from 6.1% in Q4FY24, while that of females rose to 9% from 8.5%. ■ PAGE 2 WARBUG PINCUS TO BUY 75-80% IN EBCO IN `3,500-CR DEAL WARBURG PINCUS HAS acquired around 75-80% stake in Ebco at a valuation of `3,500 crore, reports Viveat Susan Pinto. Ebco’s promoter family, led by Geoffrey Nagpal, would retain a minority stake. ■ PAGE 4 FE S P E C I A L S Citroën Basalt: The French have finally found their rock After four models that did not work, Citroën has finally made a car that can rock. ■ MOTOBAHN, P9 Bundled health and life cover plans can be cost-effective These also offer critical illness cover & waiver of premium benefit ■ PERSONAL FINANCE, P9 FRIDAY FIREWORKS SENSEX VIVEK KUMAR M Mumbai, August 16 1,330.96 BENCHMARK INDICES REGISTERED their biggest single-day gain of the month on Friday, as hopes of the US Federal Reserve beginning its rate cut cycle in September picked up pace.This optimism comes in the backdrop of US data showing that annual retail inflation in the world’s largest economy eased below 3% in July for the first time since 2021. The Sensex surged 1,330.96 points or 1.7% to close at 80,436.84 and the broader Nifty also jumped 397.40 points or 1.7% to 24,541.15. While this was the biggest single-day gain for the Sensex since June 7, for INSIDE Nifty, it was the best day since July 26. Foreigners The markets snapped a turn short two-week losing streak with on India broad-based gains with all sectoral indices closing in shares the green, while the fear ■ PAGE 6 gauge — India VIX — eased nearly 7%.The biggest gainers were information technology, real estate, automobile and financial services firms. While domestic institutional investors (DIIs) bought shares worth `2,606.18 crore, foreign portfolio investors (FPIs) purchased shares to the tune of `766.52 crore,according to a provisional data. This was only the third session where FPIs have been buyers in India so far in August. HDFC Bank and ICICI Bank contributed 25% to the Sensex’s gains, while IT sector majors Infosys and Tata Consultancy Services made up 17% of the gains. Continued on Page 7 Close: Aug 16 ADAYAFTER PrimeMinisterNarendra Modi pledged in his Independence Day address to press ahead with major reforms in the economic and governance arenas, key economic ministries saw a major bureaucraticreshuffleonFridaychanges Manoj Govil, corporate affairs secretary, has been shifted to the expenditure department, handled by finance secretary TV Somanathan,whohasbeenelevated to the post of Cabinet secretary. Deepti Gaur Mukerjee will be the new corporate affairs secretary and Nagaraju Maddirala the newdepartment of financial services (DFS) secretary.Amardeep Singh Bhatia has been appointed as secretary,department for promotion of industry and internal trade (DPIIT),with incumbent Rajesh Kumar Singh set to join the defence ministry as officer on special duty, before he takes over as defencesecretary. Mukerjee,1993 batch lAS officer of Madhya Pradesh cadre, has been the chief executive officer of the National Health Authority, while Maddirala of the same batch from TECK Services Auto Close: Aug 16 1.68% Top Sensex gainers (%) NIFTY Tata Motors M&M points 1.65% 79,105.88 41,000 HCL Tech Intra-day 2.89% 40,500 24 24,143.75 TCS NSE IT 40,750 Clo Close: Aug 14 4.0 3.5 3.5 2.9 2.7 Tech Mahindra 397.40 Close: Aug 14 2.7 2.5 2.2 1.9 1.9 IT Realty 24,541.15 points 40,250 40,878.25 Previous close: 39,731.25 40,287.30 40,000 Open Close Ola Electric shares surge 20% AKSHATA GORDE Mumbai, August 16 SHARESOFOLAElectricMobilityjumpedanother 20%onFridayafteritannounceditsforay into the electric motorcycle segment and brokeragefirmHSBCinitiatedcoverage on the stock with a “buy” rating at a price target of `140.As a result, the marketcapitalisationoftheSoftbankbackedfirmsurgedto`58,558crore. With its ‘Roadster’ e-bike series, Ola Electric Mobilityis set to intensify competition in the world’s second-largest two-wheeler market,where it willhavetotacklebiggerrivalslikeBajajAuto,TVS Motor and Hero MotoCorp. Ola’splantobuildan“all-important”batteryand its efforts to make most of its EVparts in the country,HSBC said,should attract investors lookingtoplaytheelectrificationthemeinIndia. WhileHSBCremainsconservativeonthe EV penetration in India along with other uncertainties, the brokerage firm believes that Ola Electric is“worth investing in”considering the sustained regulatory support, itsabilitytoreducecostsandapositiveriskreward in its batteryventure. Continued on Page 7 Key economic ministries undergo major reshuffle FE BUREAU New Delhi, August 16 Top sectoral gainers (%) 80,436.84 TOP-LEVEL BUREAUCRATIC REJIG Manoj Govil Nagaraju Maddirala Vivek Joshi Deepti Gaur Mukerjee new expenditure secy new financial services secy new DoPT secy ■ Amardeep Singh Bhatia has been appointed new DPIITsecy Tripura cadre is currently additional secretaryin the ministryof coal. Vivek Joshi, currently DFS secretary,will nowbe secretary,personnel and training in the ministry of personnel, public grievances and pensions.Amardeep Singh Bhatia (lAS, NL:93) is currently additional secre- HARIKISHAN SHARMA New Delhi, August 16 THE ONLY POWER plant in India contractedtoexportitsentireoutput toBangladesh,butnowallowedtosell inIndia,accountsforabulkof$1billionofelectricityexportsin2023-24. With electricity exports surging, poweraccountedfor9.3%orover$1 billion of India’s total exports ($11 billion)toBangladeshin2023-24,up from a little over 3% two years ago ($498 million). Following uncertainty in Bangladesh after Prime Minister Sheikh Hasina fled Dhaka to India,a new interim government is in place. But New Delhi recently amended its powerexport rules to derisk the only plant,belonging to theAdani Group, in India that is currently contracted to export its entire output from its 1,600 MW (mega watt) plant in Jharkhand to Bangladesh. As per records available with the Kolkata-based Eastern Regional Power Committee (ERPC),the APJL’s Godda plant exported at least 7,508 million units (MU) of power — or 63% of the total exports 11,933.83 million units — to Bangladesh in April-March of 2023-24. Themovetoamenda2018ministry of power regulation for CURRENT AFFAIRS ■ Power accounted for 9.3% or over $1 billion of India’s total exports to Bangladesh in 2023-24 ■ Following uncertainty in Bangladesh, New Delhi recently amended its power export rules ■ Tweak is essentially aimed at derisking plants such as Adani’s unit in Jharkhand’s Godda district ■ The 1,600-MW plant in Jharkhand sells entire output to Bangladesh ‘import/export (cross border) of electricity’, made through an office memorandum dated August 12, came less than a week after Hasina flewto NewDelhi in thewakeof spiralling protests. Continued on Page 7 ● THIRD SSLV FLIGHT LIFTS OFF QUICK PICKS J&K headed for polls after ten years TEN YEARS SINCE the last Assembly elections and the first for the UT that was created in 2019, Jammu and Kashmir is headed for a three-phased election in September and October, reports Damini Nath. Polling will be held in J&K on September 18, September 25 and October 1, and votes will be counted on October 4. The EC also announced the schedule for Haryana — polling on October 1 and counting on October 4. ■ PAGE 7 JSW Cement files `4k-cr IPO papers new MCA secy ■ Rajesh Kumar Singh to join defence ministry as officer on special duty, before he takes over as defence secy Adani’s Bangla plant to now sell power to India ■ Katikithala Srinivas is new housing & urban affairs secy taryinthedepartmentofcommerce. Among other appointments, minority affairs secretary Katikithala Srinivas (lAS,GJ:89) has been named as housing and urban affairs secretary. Continued on Page 7 JSW CEMENT, PART of the JSW Group, on Friday filed draft papers with the Sebi for its IPO. The company is planning to raise up to `4,000 crore through the issue, reports Urvi Malvania. The company is seeking to mop up `2,000 crore by selling new shares and `2,000 crore through the offer-for-sale route. The OFS will be by two private equity investors —Apollo Global Management and Synergy Metals Investments Holding — and State Bank of India. ■ PAGE 6 Isro’s Small Satellite Launch Vehicle-03 carrying Earth Observation Satellite lifted off from Sriharikota on Friday. With this, the vehicle will be inducted into the space agency’s fleet of operational launch vehicles. The technology of the vehicle, however, will be transferred to the private industry for commercial flights in bigger numbers PTI ■ FIRST GAGANYAAN MISSION LIKELY BY DEC, PAGE 18 BOTH COMPANIES ARE STRUGGLING TO MAKE PLANES FAST ENOUGH Boeing faces a steep climb in catching up to Airbus NIRAJ CHOKSHI August 16 FOUR YEARS AGO,Airbus scored a major victory: For the first time in its history, more of its passenger planeswereflyingaroundtheworld than those made byits rival,Boeing. Airbushasonlytighteneditsgripon the market since. Shifting the balance of power back in Boeing’s favour will be one of the most difficult challenges facing its new chief executive, Kelly Ortberg, who started last week. Pullingthatoffwillrequire navigating the industrywide challenges hampering both companies while also landing a string of successes — startingwith getting plane production back on track. “Boeing is in a situation that is waymoredifficultthanAirbus,”said PLANE AND SIMPLE ■ Shifting the balance of 2,100 Over 3,800 jets delivered by Boeing since 2019 beginning power back in its favour to be most challenging for new Boeing CEO Kelly Ortberg working closely with regulators on improving safety and quality ■ It recently started FAA test flights of the 777-9, a wide-body plane designed to fly very long distances planes delivered by Airbus to customers since the start of 2019 Saïma Hussain, an analyst at AlphaValue,anequityresearchfirm. “Airbus is gaining market share while Boeing needs to recover.” Thetwocompaniesformaduopoly in the global passenger plane market, but Airbus has far outpro- ■ Boeing is ■ Boeing's fate rests largely on the new plane, which may not arrive for another decade duced and outsold Boeing in recent years. Airbus has delivered over 3,800 planes to customers since the start of 2019, while Boeing has handed about 2,100, according to Cirium,an aviation data provider. Of late, however, both compa- nies are struggling to make planes fast enough for their customers, who are desperate for aircraft to serve rising global demand for travel.“Is it frustrating? Of course. Would we love to get more aircraft more quickly? Of course,”Campbell Wilson,CEO,AirIndia,a Boeing and Airbus customer, said last month during a panel discussion at the Farnborough Air Show near London. But there is a silver lining, he added: “We’re all on the same boat. We’re all suffering.” Unlike Airbus, however, Boeing has faced twin crises: A pair of fatal crashes in 2018 and 2019 that led to a nearlytwo-yearglobal ban of its popular737 Max plane,and a flight in January during which a panel blew off a Max jet at an altitude of about 16,000 feet. Those events prompted intense scrutinyfrom regulators and forced Boeing to rethink its culture and practices. And while the January incident resulted in no major injuries, it led to a management shake-up that produced a newchief executive,Ortberg,the formerhead ofRockwellCollins,amajorsupplier to Boeing and Airbus. Even with his background in the industry, Ortberg has his work cut out for him. Most immediately, he will have to oversee negotiations withtheunionrepresentingproduction workers,with the aim of avoidingastrikewhenitscontractexpires in mid-September.Hewill also oversee efforts to stabilise production and address qualityconcerns. When asked to comment, a Boeing spokeswoman referred to a messageOrtbergsenttoemployeesonhis firstdayaschiefexecutive.“Whilewe clearly have a lot of work to do in restoring trust, I’m confident that working together,we will return the companytobetheindustryleaderwe all expect,” he said then. Continued on Page 7 CHENNAI