I-T returns filing up 76%; over 52 mn file returns 5 hrs before deadline

Filing of income tax returns surged 75.98 per cent in the current assessment year, with as many as 52.97 million people filing returns till about five hours before the deadline. The previous year, 30.1 million had filed returns.
The high number, which might still go up, may help the government defend its decision to demonetise Rs 500 and Rs 1,000 in November 8, 2016.
The government had extended the deadline to file return till August 31. For Kerala, affected by floods, it has been extended by another fortnight.
ALSO READ: I-T department extends deadline for filing returns in Kerala due to floods
Unlike previous years, those filing after this deadline would be fined. In March 2014, the number of I-T returns filed was 38 million.

ALSO READ: Beware of I-T refund messages, cyber criminals may trick you with fraud
The surge may be an indication of rise in tax receipts, but that may not be commensurate with returns. This is so because 10 million assessees pay no tax.
The government has been defending demonetisation on the basis of tax numbers, including collection and returns filed, even as critics say it was a failure after a Reserve Bank of India report said that almost all the demonetised money came back to banks.

RBI skips meet on stressed power assets; SBI, PNB seek time for resolution

The first meeting of the high-powered committee (HPC) for resolving stress in the power sector did not see any attendance from the Reserve Bank of India (RBI) on Friday. Key lenders like State Bank of India (SBI) and Punjab National Bank (PNB), however, sought more time for resolution of 9,500 MW power assets that could see about 40-50 per cent haircuts on the outstanding amount.
The absence of an RBI representative in the crucial meeting has sent a strong signal that the central bank is in no mood to relax its deadline, set via a February 12 notification, on taking the defaulting companies to the insolvency court. “The RBI representative should have been present in the meeting if we have given them a place in the high-powered committee,” an official said.

The HPC is headed by Cabinet Secretary PK Sinha and has representations from the ministries of power, coal, railways and finance, and key public sector lenders. Though the committee was set up on July 29, the RBI was invited to be part of it after the Allahabad High Court’s order on Monday.
Officials said SBI would urge other lenders to approve its resolution plan for close to seven assets, including those of GMR, Jaiprakash Associates, DB Power, and Coastal Energen. Lenders also told the committee that they were willing to take a haircut of 40-50 per cent on these stressed assets.
Officials said SBI would seek more time from the RBI for finalising the debt resolution plan and getting approval from all other lenders.
ALSO READ: Govt hopes RBI will tread middle path on stressed power assets issue
“Both PNB and SBI representatives apprised the committee that the debt resolution plan of these stressed assets has almost been finalised, and at least a month will be required for the transaction to take place,” a source said.
PNB Executive Director LV Prabhakhar and SBI Chairman Rajnish Kumar were present in the meeting, besides secretaries of various government departments.
SBI’s resolution plan is called Samadhan and it aims at taking over sustainable debt and thereafter selling the asset to some asset restructuring company. The bank has identified nine assets for the same.
The lenders also said the assets that have completion status below 50-60 per cent would be referred to the bankruptcy court directly. “It would be difficult to find resolution for these assets in such a tight deadline. Hence, they will land directly in the National Company Law Tribunal (NCLT),” said another official. There are more than 24 stressed power projects that are incomplete and will face insolvency proceedings. These projects might find it hard to get buyers.
An official said there was no discussion on utilising a legal provision that allowed the government to issue directions to the RBI since no central bank representative was present in the meeting. According to the Section 7 of the RBI Act, the central government may issue directions to the RBI as it may “consider necessary in public interest” after consultation with the RBI governor. The court had asked the Centre to take a decision on whether it wants to utilise this provision to give relief to the stressed power assets within 15 days.
Sources said the RBI’s presence was necessary given the resolution scheme of Rural Electrification Corporation (REC), Pariwartan, which aims at setting up an Asset Restructuring and Management Company (AR&MC), would need approvals and time relaxation from the RBI.
“Pariwartan is a framework and would be put to use even when a project lands in the bankruptcy court. The NCLT allows any framework to be used for resolution. We would look forward to use the model of Pariwartan for several assets, as and when required or asked for,” said a senior official of REC.

Downward march: Rupee breaches 71-mark against dollar for first time

The Indian rupee closed at 71 a dollar level on Friday, amid nervousness that it could fall further. The rupee has fallen more than 10 per cent year to date, making it the worst-performing currency in Asia and one of the worst-performing among emerging markets.
Although there is no panic in the market, as hedging discipline has improved vastly from earlier, importers have started buying options. According to currency dealers, there is no mad scramble to buy protection against rupee volatility.
“Hedging activities are going on as normal. I don’t see too much of any one-sided position, or overly unhedged position, with anybody,” said Ashish Parthasarthy, treasurer, HDFC Bank.
The movement has been sharp for the rupee this week, but it gave enough indications that the exchange rate would worsen, giving ample time for hedging.
“Importers were under a false sense of security that the regulator would manage volatility, but the RBI never promised any stability. Exporters hedged, importers didn’t. But the markets also give enough time. The rupee was trading at 68.50-69.90 a dollar levels for quite some time, giving ample time to importers to cover their exposures, which they did,” said Ashish Vaidya, head of markets for DBS Bank.
ALSO READ: Rupee falls 26 paise to hit record low; breaches 71-mark for first time
Vaidya expects the rupee to maintain 70 levels in the coming days too, unless there are strong global reasons for investors to be bullish on emerging markets.
According to Samir Lodha, managing director of IFA Global, till 70 a dollar level, importers had not panicked. However, “some amount of panic is getting visible now”, added Lodha.
The rupee has come under pressure due to a multitude of factors. The current account deficit is expected to touch 2.5 per cent of the gross domestic product (GDP), up from 1.9 per cent now.
The trade deficit has also widened to $18 billion, from its normal $11-13 billion, thanks to rising oil prices. Brent crude crossed $77 a barrel, threatening a wide fiscal deficit for the financial year.

ALSO READ: Falling rupee not alarming, India in period of stability: Finance Ministry
“The first leg of correction, up to 69-70 level, was warranted as markets were punishing countries running twin deficits. But the markets always tend to overshoot, particularly when the move is part of a global sentiment,” Vaidya said.
graph
The rupee’s movement is exacerbated by other emerging market currencies. The Argentinian peso and the Turkish lira have come under pressure recently, and that is impacting other currencies as well.
“In terms of macroeconomic fundamentals, we are in a much better position that we were in 2013. Of course, rupee movement will impact various economic agents differently, but we will have to wait and watch how further the exchange rate can move. There is no need to panic,” Parthasarthy said.
Currency dealers say the RBI is intervening in the market regularly, but the intervention is not heavy enough to strengthen the rupee back and help the exchange rate sustain at those levels.
“The rupee is now getting clubbed with the lira, rand, peso … which is sad,” said Lodha.

Elephant starts running: Q1 GDP growth soars to 9-quarter high of 8.2%

Spurred by manufacturing, India’s economic growth rose to a nine-quarter high of 8.2 per cent in the first quarter of 2018-19, surpassing analysts’ expectations.
Gross domestic product (GDP) had earlier grown by 7.7 per cent in Q4FY18.
With China's growth coming down to 6.7 per cent in April-June 2018 from 6.8 per cent in January-March of the year, India remained the fastest-growing large economy in the world.
Manufacturing grew at a nine-quarter high of 13.5 per cent largely owing to a low base effect, while the services sector expanded at a slower pace.
However, economists remained sceptical of sustaining the growth momentum in the coming quarters. But, not the government, which now expected that even its projections of up to 7.5 per cent growth in FY19 may be crossed.
ALSO READ: Manufacturing, agriculture propel GDP growth; expect moderation going ahead
Finance Minister Arun Jaitley tweeted, “More India’s GDP for the first quarter this year growing at 8.2 per cent in otherwise an environment of global turmoil represents the potential of New India.”
On the expenditure side, the economy was driven by domestic demand. Jaitley said: “Reforms and fiscal prudence are serving us well. India is witnessing an expansion of the neo middle class.”
Economic Affairs Secretary Subhash Chandra Garg said the robust performance this quarter gave hope that growth could exceed even estimates of 7.5 per cent this fiscal year.
He said the V-shaped recovery of growth in the Indian economy was complete now. "We should grow at a robust and steady state in 2018-19, remaining the fastest-growing economy in the world,” he said.
Part of the spurt in growth can be traced to a low base effect as the economy was held back by the twin shocks of the GST and demonetisation in the previous year.
Manufacturing had contracted by 1.8 per cent in Q1FY18 as companies resorted to de-stocking ahead of the shift to the GST.
ALSO READ: As growth for Q1 races past estimates, experts question if it will sustain
Similarly, construction, whose growth had plummeted to 1.8 per cent in Q1FY18, rose to a healthy 8.7 per cent in Q1FY19.
Agriculture and allied activities also registered an impressive 5.3 per cent growth rate in Q1FY19, up from 4.5 per cent in Q4FY18, on the back of a surge in production.
The fourth advance estimates of production of major crops showed that production rose to staggering 284.83 million tonnes for agricultural year 2017-18 (July to June), up from 279.51 million tonnes as indicated by the third advance estimates.
The services sector grew at a slightly slower pace of 7.3 per cent in Q1FY19, down from 7.7 per cent in Q4FY18.
Part of this slowdown can be traced to slower growth in public administration, defence and other services, which largely connote government spending. The segment grew by 9.9 per cent in Q1FY19, down from 13.3 per cent in Q4FY18.
“The services segments — trade, transport, finance, real estate, etc. — have registered lower growth rates compared to last year, where the base effect has worked in the reverse direction,” said Madan Sabnavis, chief economist, CARE.
ALSO READ: GDP growth touches 8.2% in Q1FY19; July core sector growth at 6.6%
Graph
On the expenditure side, household demand as measured by private consumption expenditure grew at a healthy 8.6 per cent in Q1FY19, up from 6.7 per cent in Q4FY18.
“Pay Commission/HRA revisions at the state level, where government employee strength is higher than at the Centre, will also provide a transitory boost to consumption demand,” said DK Joshi, chief economist, CRISIL.
Gross fixed capital formation (GFCF), which connotes investment activity in the economy, grew at 10 per cent in Q1FY19, lower than the 14.4 per cent in Q4FY18, benefitting from a 27.4 per cent rise in the central government’s capital expenditure in the first quarter and a 9.5 per cent rise in the capital goods segment in the index of industrial production (IIP). But it rose as a share of GDP.
“An encouraging sign is the marginal uptick in the GFCF rate (at current prices) picking up from 28.7 per cent to 28.8 per cent. We may have to wait to see if this can be sustained as often there are slippages subsequently,” noted Sabnavis.
“Investments will continue to look up (driven by government-led efforts to get roads and houses built), but a broad-based investment recovery led by the private sector is hampered by capacity overhang, high leverage, and political uncertainty,” said Joshi.
ALSO READ: RBI deputy governor B P Kanungo slams states for fiscal indiscipline
While the growth numbers for the first quarter are encouraging, analysts remain sceptical about the economy maintaining this growth trajectory in the coming quarters.
“We expect growth to be 7.5 per cent for the full year. Given the challenges of higher interest rates, a weak rupee, oil price concerns, etc, we may expect some moderation in growth in the next few quarters,” Sabnavis said.
Other economists concurred, though not the government.
Union Finance Secretary Hasmukh Adhia said: “The GDP growth rate of 8.2 per cent for the first quarter of 2018-19 indicates several structural reforms such as the GST have started giving rich dividends. Growth in manufacturing (13.5 per cent) also indicates broad-based recovery of demand.”
These estimates represent a significant jump from last year’s Q1 growth rate estimates of 5.6 per cent, indicating superior acceleration in India’s growth trajectory, noted the Economic Advisory Council to the Prime Minister.
“Some concerns linger on the sustainability of growth of around 8 per cent in the remaining quarters of FY2019, given the base effect, risks posed by higher crude oil prices, interest costs and a weakening rupee, as well as fiscal constraints,” said Aditi Nayar, principal economist at ICRA.
“Growth will be stronger in the first half compared to the second as the favourable base effect will begin to wear off after the second quarter,” noted Joshi.

Forex reserves jump to $401.293 bn on the back of rise in currency assets

The country's foreign exchange reserves rose by $ 445.4 million to $ 401.293 billion in the week to August 24 on the back of increase in currency assets, RBI said on Friday.
In the previous week, the overall reserves had witnessed a drop of $ 33.2 million to $ 400.84 billion.

The reserves had been declining in the past few weeks as the Reserve Bank of India (RBI) is selling the US dollar to contain depreciation in the rupee, which breached the 71 mark against the greenback today, its lowest ever.
In the week to August 24, foreign currency assets, a major component of the overall reserves, swelled by $ 386.6 million to $ 376.591 billion, as per the RBI data released on Friday.
ALSO READ: Forex reserves drop to $400.84 bn due to fall in foreign currency assets
Expressed in the US dollar terms, foreign currency assets include the effect of appreciation/depreciation of the non-US currencies such as the euro, pound and the yen held in the reserves.
Gold reserves rose by $ 35.7 million to $ 20.763 billion for the reporting week, the apex bank said.
The special drawing rights with International Monetary Fund (IMF) increased by $ 8.6 million to $ 1.471 billion, while the country's reserve position with the IMF was also up by $ 14.5 million to $ 2.467 billion, the central bank said.
(Only the headline and 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.)

Crude oil prices may rise further in 2018, remain above $75 a barrel: IEA

In what could be the bad news for consuming countries like India, the International Energy Agency (IEA) has said crude oil prices are likely to rise further in 2018 and may remain above $75 a barrel for some time, owing to the geo-political situations across the world — including Iran sanctions and drop in Venezuela production.
Fatih Birol, the Executive Director of the International Energy Agency (IEA), said the world may “unfortunately see a further tightening of markets” towards the end of this year, which will in turn put upward pressure on prices unless the Organization of the Petroleum Exporting Countries (OPEC) go for a significant increase in production. He indicated it is likely to remain over “$75 a barrel” for some time.
This comes at a time when international benchmark Brent crude price was seen at $77.38 a barrel on Thursday inching closer towards $80-mark on signs that Iran sanctions may limit global supply, while the US West Texas Intermediate (WTI) crude was seen at $ 69.84 a barrel at one point.
“I wish I could tell you that we expect a downward trend in the crude oil prices, given the reliance of India and other countries on imports. But the picture we see in fact the opposite. One reason for this is that the oil demand growth this year and next year seems very strong, which is around 1.5 million barrels per day significantly higher than historical averages,” Birol told Business Standard on the sidelines of an energy meet organized by The Energy and Resources Institute (TERI) in New Delhi.
The Indian crude oil basket was seen at $74.75 a barrel on August 30, which is almost 8 per cent higher than the monthly average of $69.22 a barrel in the month of April. Rising prices are a cause of concern for India as the country had budgeted an average crude oil price of $65 a barrel for the current financial year, based on which the import bill was supposed to be around $109 billion, compared to $88 billion in 2017-18.
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According to Birol, the drop in production from Venezuela is another important reason for this declining trend in the last two years. “Unfortunately, we expect further decline in Venezuelian oil. In addition to this, several Middle East countries are going through difficult times because of geo-political situations. This is ranging from Iraq, Iran, Libya and also Nigeria,” he said, adding that unless production is increased by OPEC, the world may see further tightening of markets towards the end of this year.
After exports from Iran nose dived to an average of 1.68 million barrels per day (bpd) from August 1-16, compared to 2.32 million barrels a day for July, there were speculations that Iran oil consumers may wind down purchases further. Meanwhile, another report states that during the period under review, demand from India has also declined to 203,938 bpd, compared to 706,452 bpd in July.
ALSO READ: FPIs pump in Rs 75 bn in Aug so far as crude oil prices show improvement

According to a report by India Ratings and Research, crude oil prices may increase but remain between $65-70 a barrel for the remainder of 2018-19. “Crude oil supplies from the OPEC have declined due to rising geo-political tensions. Sanctions on Iran, unplanned shutdowns in Libya, along with debt crisis in Venezuela have led to supply constraints. Also, US crude oil production growth has stabilised, there have been draw downs in crude oil inventory stocks and the total exploration capex in the US has slowed down, supporting the upward trend in crude price,” the report said.
On Thursday, diesel prices hit a record high in Delhi at Rs. 69.93 a litre, while that of petrol was seen at Rs 78.30 a litre. Petrol had touched an all-time high of Rs 78.43 in Delhi on May 29 this year.

Why big players piling into Indian retail may be in for a rude surprise

Apparently, there’s a pot of gold in Indian retail, and big players from around the world want to dip in. Many of them are likely to come up empty-handed.
The volume of high-profile announcements in the sector recently has been remarkable. Walmart Inc. led with a $16 billion deal to buy Flipkart Online Services Pvt. Ltd., India’s largest e-commerce retailer; China’s Tencent Holdings Ltd. will retain its holdings in Flipkart as well. After pouring billions into India to compete with Flipkart, Amazon now says it hopes to pick up a substantial stake in Future Group, which runs over 1,000 brick-and-mortar stores across the country. Google is interested in Future Group too, as is the shopping arm of Indian payments company Paytm, which is funded by Softbank Group Corp. and Alibaba Group Holding Ltd. Meanwhile, Berkshire Hathaway Inc. is also betting on Paytm, whose fortunes will depend greatly on whether e-commerce takes off in India, paying over $300 million for 3 to 4 per cent of the company.

Sure, there are a lot of Indians and they’re getting richer; Indian retail is a growing industry. But the current wave of enthusiasm looks excessive. Consider the excitement surrounding Paytm. The company is only in retail as an afterthought. It’s really a digital payments company that depends on a “wallet,” which you fill up from your bank account or your credit card. After spending hard on promotions and incentives, the company accounts for 22 percent of the volume of banking transactions in India — but still only 0.25 per cent of the value.
The company — which opposition parties in India accuse of cozy ties with the current government — has expanded on the back of favourable regulatory and policy decisions. The initial boost came from a 2014 central bank decision to kill “one-click” credit card transactions, which forced apps like Uber to switch to using wallets. Then it benefited hugely from the government’s decision to invalidate high-denomination notes, which made Indians worry about using cash. Now it hopes to profit from the government’s attempt to force consumers and companies to store data locally, by setting up cloud infrastructure locally.
Where online shopping fits into this is unclear, unless the company is looking to diversify, worried that its products won’t be able to compete over the long run against the kind of cutting-edge mobile payment systems pioneered by China’s Tencent. It’s rare to meet anyone who’s actually bought anything on Paytm Mall: Flipkart and Amazon still have 80 per cent of the market, and Paytm Mall’s Chinese-style direct linking of customers to offline retailers has caused consistent quality issues that force it to regularly delist sellers. It’s interesting that Berkshire Hathaway was quick to insist that Buffett himself had nothing to do with its investment.
Amazon’s interest in Future Group makes a little more sense. The U.S. behemoth has been expanding into offline retail elsewhere and, in India, groceries already form a significant part of its sales; the company expects groceries and consumables to make up more than half of its business in five years.
Still, the thinking here seems a bit schizophrenic. On the one hand, Amazon is tying up with the small mom-and-pop shops that continue to dominate the Indian market, through Amazon Now. On the other hand, it seems to think that Future Group’s bigger stores are a good investment. The company’s first instinct was probably correct. If organized grocery delivery in India is going to take off, it will be thanks to someone who uses the extensive networks already put in place by local vendors.
Finally, investors worried about Walmart’s purchase of Flipkart because the price seemed too high for the education in e-commerce that Bentonville thought it was buying. Companies can’t simply pick up what they learn in India and apply it everywhere else. Indian consumers have special needs — they’re untrusting, for one, and price-sensitive, for another. They’re unlikely to build up big data trails on any one e-commerce site: Indians shop around constantly for the best deal.
However attractive on the surface, India’s retail market isn’t like those elsewhere; it demands new models. Flipkart revolutionized e-commerce in India thanks to its cash-on-delivery option, since customers here prefer to hold an item in their hand before they pay for it. But it’s important to distinguish between genuine innovation and workarounds meant to avoid regulatory hassles, such as India’s ban on e-commerce companies holding their own inventory. Before reaching for their wallets, international players need to figure out if a model is genuinely adapted to Indian shoppers’ needs and, ideally, should wait for payments, tax and inventory regulations to settle down before spending billions on scaling up.
Foreign companies and investors had better also keep in mind that the giant Indian conglomerate Reliance Industries Ltd. is preparing its own push into shopping. Fresh after using the steady profits of its oil business to upend Indian telecommunications — forcing a series of mergers and exits — Reliance now wants to expand its Jio telecom brand into shopping, among other sectors. Anyone betting on dominating retail in India will have to beat Reliance at home. They could be in for an expensive lesson.

GDP growth touches 8.2% in Q1FY19; July core sector growth at 6.6%

The Indian economy grew at 15-quarter high of 8.2 per cent in the April-June quarter of current fiscal on a good show by manufacturing and farm sectors, according to the government data released on Friday.
The growth cemented India's position as the fastest growing major economy, clocking higher expansion rate than China's 6.7 in the same quarter.

The gross domestic product (GDP) at constant (2011-12) prices in the first quarter of 2018-19 is estimated at Rs 33.74 trillion, as against Rs 31.18 trillion in Q1 of 2017-18, showing a growth rate of 8.2 per cent, a Central Statistics Office statement said.
According to the statement, the quarterly GVA (Gross Value Added) at the basic price at constant (2011-2012) prices for Q1 of 2018-19 is estimated at Rs 31.63 trillion, as against Rs 29.29 trillion in Q1 of 2017-18, showing a growth rate of 8 per cent over the year-ago period.
The previous high quarterly GDP growth was recorded in July-September period in 2014-15 at 8.4 per cent.
As per the data, the quarterly GVA at basic prices for Q1 2018-19 from manufacturing' sector grew by 13.5 per cent as compared to a contraction of 1.8 per cent in Q1 2017-18.
The Quarterly GVA at basic prices for Q1 2018-19 from agriculture, forestry and fishing' sector grew by 5.3 per cent as compared to growth of 3 per cent in Q1 2017-18.
Key Highlights
1. The growth in GDP is the highest growth in two years; strongest since Q1FY16.
2. The economic activities which registered growth of over 7 per cent in Q1 of 2018-19 over Q1 of 2017-18 are ‘manufacturing, ‘electricity, gas, water supply & other utility services’ ‘construction’ and ‘public administration, defence and other services’.
3. The growth in the ‘agriculture, forestry and fishing’, ‘mining and quarrying’, ‘Trade, hotels, transport, communication and services related to broadcasting’ and financial, real estate and professional services is estimated to be 5.3 per cent, 0.1 per cent, 6.7 per cent, and 6.5 per cent respectively during this period.
4.
Quarterly GVA at basic prices for Q1 2018-19 from ‘agriculture, forestry and fishing’ sector grew by 5.3 per cent as compared to growth of 3.0 per cent in Q1 2017-18.
5. Quarterly GVA at basic prices for Q1 2018-19 from ‘manufacturing’ sector grew by 13.5 per cent as compared to growth of (-) 1.8 per cent in Q1 2017-18.
6. Quarterly GVA at basic prices for Q1 2018-19 from ‘Electricity, Gas, water supply and other utility services’ sector grew by 7.3 per cent as compared to growth of 7.1 per cent in Q1 2017-18.
7. Quarterly GVA at basic prices for Q1 2018-19 from ‘Construction’ sector grew by 8.7 per cent as compared to growth of 1.8 per cent in Q1 2017-18.
Core sector data
Eight core sectors grew by 6.6 per cent in July pushed by healthy output in coal, refinery products, cement and fertiliser.
The eight core sector - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- had registered a growth of 2.9 per cent in July last year.
The output of coal, refinery products, fertiliser and cement grew by 9.7 per cent, 12.3 per cent, 1.3 per cent and 10.8 per cent respectively in July 2018.
However, growth rate in production of crude oil and natural gas recorded negative growth in the month of July.
On the other hand, steel sector expansion came down to 6 per cent, as against 9.4 per cent in July 2017.
During the April-July period of the current fiscal, these 8 sectors grew by 5.8 per cent as against 2.6 per cent in the year-ago period. In June, they grew by 7.6 per cent.

Why Indian internet market trumps China's for Jeff Bezos, Warren Buffett

India's long-neglected retail market is turning into one of the world's hottest thanks to Warren Buffett, Jeff Bezos and a frenzy of billion-dollar dealmaking.
Walmart Inc just wrapped up a $16 billion agreement for control of the country's leading e-commerce player, Flipkart Online Services Pvt, while Bezos' Amazon.com Inc negotiates deals with a large supermarket chain and an investment in a prominent retail conglomerate, according to local media. This week, Buffett's Berkshire Hathaway Inc agreed to acquire a stake in the company behind digital payments leader Paytm.
ALSO READ: Warren Buffet's Berkshire Hathaway takes Rs 25-billion stake in Paytm
Why the sudden interest in India? The new optimism is fueled by rising standards of living, increases in smartphone usage and cheap data plans that are boosting internet penetration across the nation. Perhaps most important, India is the last big retail market still up for grabs, with an internet economy projected to double to $250 billion by 2020.
"It's a race for leadership," said Anil Kumar, the Bengaluru-based chief executive officer at researcher RedSeer Consulting. "There's far more action in India compared with stable markets like China and the US."
Online sales grew 23 per cent last year and are up 40 per cent so far in 2018, according to RedSeer. The organised retail market is under-penetrated, leading to tie-ups between online and offline players, and driving unprecedented levels of investments, Kumar said.
India's vast retail industry has no parallel other than, perhaps, China. But unlike the Chinese market, dominated by Alibaba Group Holding Ltd, India is relatively open and largely unconquered, offering global players vast opportunity to grow.

ALSO READ: Walmart completes acquisition of majority stake in Flipkart for $16 bn
India is now the world's fastest-growing major economy, and per capita incomes have been climbing steadily. According to a Forrester Research Inc report earlier this month, the South Asian country is the world's fastest growing e-commerce market.
Amazon and Flipkart have cornered about three-quarters of the online Indian retail market, but other big players are getting aggressive. That's meant heavily discounted offerings for consumers, although the substantial investments have crimped profitability.
When Walmart announced the Flipkart deal earlier this year, S&P Global Ratings changed its outlook on the US retailer to negative, saying that Flipkart was poised to generate losses in the next few years.
"The appeal of retail lies in the population of India, the aspirations of India, the consumption power of India," said Kishore Biyani, the billionaire chief executive of Mumbai-based retail conglomerate Future Group, which runs the 2,000-plus store Future Retail Ltd, including the country's largest departmental chain.
Biyani said his group's online revenues are nearing $150 million. He and others predict that India's retail industry will have a unique combination of online and offline tie-ups.
ALSO READ: Amazon plans to invest $700 million in Kishore Biyani's Future Group
Future Group is reported to have had negotiations about a stake sale with Amazon as well as Alibaba executives. Biyani refused to directly comment, simply saying he too is looking to "crack a deal like everybody else". Amazon declined to comment and Alibaba didn't respond to a request for comment.
India's Reliance Industries Ltd is also fine-tuning its own e-commerce thrust by creating a hybrid online-offline retail platform.
ALSO READ: Why Mukesh Ambani's Reliance, not Walmart, is Amazon's real rival in India
So far, retailers have only scratched the surface by roping in high-income customers in India's large metropolitan cities. Rural areas and small cities offer fresh opportunity. The retail battle for Indian consumers will be on display again in early November during the festival of Diwali, India's version of Christmas and Thanksgiving combined.
Vijay Shekhar Sharma, founder and chief executive officer of the Alibaba-backed e-commerce company Paytm Mall, says he ultimately sees wide-ranging impact from the billions pouring into the industry. He predicts that small mom-and-pop shops will soon be armed with retail technology as well as cloud and payments products.
Sharma is also the founder of One97 which runs the Paytm digital payments app. Berkshire Hathaway this week invested in One97, becoming the latest global player to bet that digital payments will surge as India's increasingly affluent consumers shop online.
"Indian retail will get digitised at an unprecedented scale," Sharma said. "Its every nook and cranny will get altered."

NCLT approves Idea-Vodafone unit merger; deal gets all regulatory approvals

Idea Cellular and Vodafone have cleared the last regulatory hurdle to merge their operations in India, a source told Reuters, opening the way for the creation of a new market leader in the fiercely competitive country.
Vodafone, the world's second-biggest mobile operator, entered India in 2007 amid much fanfare but has struggled almost since its arrival due to the extremely low pricing and a long-running tax battle.
The two groups announced the deal in March last year to create a player with a combined base of around 400 million customers, overtaking Bharti Airtel and accounting for about 40 per cent of revenue in the market.
The deal showed how India's mobile industry - the world's second-biggest market by users after China - has been transformed by the launch of Reliance Jio Infocomm's 4G mobile broadband network.
Built at a cost of more than $20 billion by India's richest man, Mukesh Ambani, Jio has forced India's three biggest operators - Bharti, Vodafone and Idea - to slash prices and accept lower profits, and sparked a wave of consolidation.
According to the source who asked not to be named because the approval is not public, India's National Company Law Tribunal (NCLT) has now approved the merger. Vodafone had set the end of August - or Friday - as its target to close the deal.
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ICICI Bank backs Chanda Kochhar's appointment on board of ICICI Securities

ICICI Bank on Thursday voted in favour of appointing Chanda Kochhar to the board of ICICI Securities, according to reports.
Kochhar, the CEO and MD of ICICI Bank, had been sent on leave after the bank appointed former Supreme Court judge B N Srikrishna to probe allegations of conflict of interest against her.

ICICI Bank holds a majority 80 per cent stake in ICICI Securities. According to Economic Times, today's vote almost seals Kochhar's position as director at the firm.

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ALSO READ: ICICI Bank tells Sebi it was unaware of conflict of interest

Amid green shoots, economy to grow 7.6% in Q1 on low-base effect: Report

The economic growth is expected to rise to 7.6 per cent in the April-June quarter of 2018-19 from a sub-six per cent figure in the year-ago period mainly due to a low-base effect, says a report by HDFC Bank.
According to a HDFC Bank research report, growth numbers across sectors in the first quarter are likely to get a boost from a favourable base effect even as there are some genuine signs of revival in the economy.

The major push to growth is likely to come from the manufacturing and the services sector while agricultural growth is also likely to be supportive, the report added.
"We expect GDP growth to rise to 7.6 per cent in the first quarter of 2018-19 from 5.6 per cent in the same time last year. Lead indicators show strength in the manufacturing and the services sector," Abheek Barua, Chief Economist, HDFC Bank said in the note.
ALSO READ: GDP may accelerate to 7.4% this year as industries, monsoon pick up: RBI
Barua further noted that with the rise in the rabi output, agriculture growth is likely to grow by 4 per cent.
For the year, as a whole, HDFC Bank expects growth to rise to 7.3 per cent from 6.7 per cent in 2017-18.
Major risks to growth include rising oil prices and the impact of an uneven monsoon on agricultural production.
ALSO READ: Look beyond GDP numbers: The broader India story does not shine as much
Going ahead, the report noted that a sustainable recovery in private consumption and investment is needed for a growth revival.
"On the demand side, private consumption could gain some traction especially on the back of stronger demand as shown by lead indicators like domestic passenger traffic, retail credit and consumer durables," the report said adding "we expect government expenditure to continue playing an important role in supporting growth".

Rupee touches fresh low of 70.74 to a dollar despite RBI intervention

The rupee slid further by 15 paise to close at a fresh lifetime low of 70.74 to the dollar due to strong demand for the greenback from oil importers and surging crude oil prices stoking inflation fears.
The local unit dwindled down to hit a historic intra-day low of 70.90 in early trading - a level that was unthinkable only a few weeks ago.

However, sporadic intervention by the RBI at various levels limited further losses and triggered some recovery towards the close.
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At the same time, the bond yield curve also rose dramatically to 7.93 per cent.
Strong month-end demand for the US currency mainly from oil importers along with currency futures expiry related purchases predominantly weighed heavily on the forex market and haunted investor sentiment.
Growing fears about rising inflation in the midst of high global crude oil prices and consistent outflow of foreign funds from the domestic equity market also weighed down on the domestic currency.
Crude prices firmed up further on growing evidence of disruptions to supply from Iran and Venezuela and after a fall in US crude inventories.
ALSO READ: Rupee pares early losses, down 10 paise at 70.69 against US dollar
Benchmark Brent crude oil was at $77.65 a barrel in early Asian trade.
Foreign portfolio investors (FPIs) sold shares worth Rs 14.1587 billion on net basis yesterday, according to exchanges data.
The forex market was nervous after reports highlighted risks of India breaching the 3.3 per cent fiscal deficit target for 2018/19. The rupee has fallen over 10 per cent so far this year against the US dollar, a dealer commented.
High Indian bond yields due to worsening inflation outlook also added some amount of pressure.
Maintaining its bearish stance, the domestic currency opened weak at 70.64 against Wednesday's close of 70.59 at the inter-bank foreign exchange (forex) market.
ALSO READ: Rupee sinks to all-time low of 70.82 against dollar, plunges 23 paise
Reeling under heavy dollar pressure, it extended the drop to a fresh record low of 70.90 in mid-morning deals before recouping some losses to end at 70.74, showing a fall of 15 paise, or 0.21 per cent.
The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 70.7329 and for the euro at 82.7184.
Meanwhile, BSE Sensex slipped 33 points, or 0.08 per cent, to close at 38,690. The NSE Nifty declined 15 points, or 0.13 per cent, to 11,677 at close.
Globally, the US dollar traded higher against its key rivals after data showed higher-than-expected US economic growth in April-June cemented expectations for a rate hike next month.
Against a basket of other currencies, the dollar index is up at 94.56.
In the cross-currency trade, the rupee also took a severe knock against the British pound to finish at 92.07 per pound from 90.98 and also dropped against the euro to settle at 82.69 as compared to 82.34 on Wednesday.
ALSO READ: August F&O expiry: Sensex slips 33 pts; ADAG stocks rally, Rupee at 70.82/$
The local unit, however, closed unchanged against the Japanese yen at 63.46 per 100 yens.
In the forward market on Thursday, the premium for dollar fell sharply due to heavy receiving from exporters.
The benchmark six-month forward premium payable in December declined to 98-100 paise from 102-104 paise and the far-forward June 2019 contract slumped to 246-248 paise from 252-254 paise earlier.

Current account deficit is likely to touch 2.8% of GDP in FY19: SBI report

The country's current account deficit (CAD) is likely to touch 2.8 per cent of GDP in the current financial year on surge in crude oil prices and moderate growth in exports, a report said.
The merchandise trade imbalance is also expected to rise to USD 188 billion in FY19, compared with USD 160 billion in FY18, according to Ecowrap, an SBI research report.

"Against the backdrop of rising oil price and lukewarm export growth, current account deficit is expected to reach 2.8 per cent of GDP (USD 75 billion) in FY19,"the report said.
The trade deficit jumped to USD 18 billion in July 2018 on account of lukewarm export performance amidst higher import bill, it added.
Oil imports registered an annual growth of 57.4 per cent to USD 12.4 billion, from USD 7.8 billion in July 2017, and the report attributed the rise in the import bill to increase in oil price and rise in quantity of oil imported.
Had the oil price remained the same as in 2017, crude oil import bill would have been 31.7 per cent lower in the first quarter of FY19, it estimated.
"Whereas if the volume of crude oil import had remained the same as in previous year, our crude import bill would have been 5.5 per cent lower, thereby showing that price effect reigns supreme," the report said.
Amidst the recent devaluation of the Chinese Yuan, the country's imports from China increased in May and June this year, after witnessing a decline in April.
The trend of the manufacturing goods imports remains the same and within manufacturing, imports of electronic goods have declined on annual basis so far this fiscal year, according to the report.
"Thus, the argument that depreciation of the Chinese currency is responsible for increased imports from the country does not seem appropriate," it said.
The huge increase in trade deficit is more linked to the average export performance so far in FY19, it said.
The CAD is still expected to be majorly financed by non-debt creating (FDI and FPI) capital inflows, according to the report, which constitute around 44 per cent of the total capital flows.
The debt creating inflows which increased in the last fiscal year are expected to remain on the higher side this year as well, which will imply pressures on rupee in case there is a sudden reversal of capital flows, it said.
The financial account surplus is expected to come around USD 59 billion, lower than the previous fiscal (USD 91.4 billion) due to foreign portfolio outflows which have already amounted to USD 9.3 billion till June 2018, it added.
Portfolio outflows have happened this year since the US economy and dollar started strengthening.
"This is expected to turn the country's overall balance of payment into deficit mode after six years, thereby implying forex reserves depletion of USD 16 billion (0.6 per cent of GDP) in FY19," the report said.

Rupee retreats to hit a record closing low of 70.16 against US dollar

The Indian rupee today retreated sharply to hit a record closing low of 70.16 against the US dollar, plunging by 25 paise despite a huge rally in equities amid easing worries over near-term monetary policy tightening by the US Fed.
Indian equity benchmarks Sensex and Nifty today scaled new peaks and logged their best single-day gains in nearly five months, tracking positive global cues as investors took heart from the US Federal Reserve's "gradual approach" to raising interest rates.

On August 16, the domestic currency had tumbled to a historic intra-day low of 70.40 before closing at a life-time low of 70.15 per dollar.
The rupee has been hit by a range of factors including swelling current account deficit, surging global crude prices and lukewarm export growth. Besides, US trade protectionism has also contributed to excess volatility in the forex market.
The benchmark Brent crude surpassed the significant USD 75-mark a barrel once again on re-emergence of a supply shock.
Domestic forex market fluctuated wildly during the trade with the rupee climbing to a fresh one-week high of 69.65 in early trade before surrendering the gains.
The rupee has been depreciating steadily during the past few months largely reflecting investors' concerns about India's widening trade and current account deficits.
Country's current account deficit has been swollen to hit a 62-month high of USD 18 billion in July.
The rupee is down over 9 per cent so far this year, making it the worst-performing currency in Asia.
Extending its recovery momentum, the rupee today opened higher at 69.75 from weekend close of 69.91 at the inter-bank foreign exchange (forex) market.
It gained further ground to hit a session high of 69.65 in early trade due to sustained dollar unwinding and tracking a rally in most Asian peers.
However, the rally did not last, with the rupee succumbing to heavy dollar pressure, taking a sharp reversal in afternoon deals to hit a low of 70.20 before ending at a new closing low of 70.16, showing a loss of 25 paise, or 0.36 per cent.
The rupee had posted broad gains in weekend trade to close below 70-mark.
The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 70.0366 and for the euro at 81.3032.
Meanwhile, India's foreign exchange reserves fell by USD 33.2 million to USD 400.847 billion in the week to August 17 mainly due to fall in foreign currency assets, according to RBI data.
Indian equities, however, closed at record highs taking comfort from a powerful global stocks rally and also supported by blockbuster corporate earnings.
The BSE Sensex today shot up over 442 points to close at 38,694.11 and the broader NSE Nifty finished at 11,691.95, surging 134 points.
World stock markets also rose to their highest level in more than two weeks following reassuring comments from the US Federal Reserve chief that the US central bank was sticking with its strategy of gradual rate hikes to protect economic growth.
In the meantime, foreign investors and funds pumped in a little over Rs 6,700 crore into the capital markets so far this month.
On the energy front, crude prices pulled back modestly on growing concerns the US-China trade dispute will erode global economic growth, although fresh American sanctions against Iran's oil export limited the fall.
International Brent crude oil futures were at USD 75.49 per barrel in early Asian trade.
The 10-year benchmark bond yield also gained 2 bps to settle at 7.89 per cent.
Globally, the US dollar is trading lower against its major trading rivals as a much-anticipated speech from Fed Chair Jerome Powell at the Jackson Hole symposium stuck to familiar themes, leaving the status quo rate hike outlook intact.
Against a basket of other currencies, the dollar index is down at 94.94.
In the cross currency trade, the rupee also fell back against the British pound to end at 90.19 per pound from 89.86 and drifted against the euro to finish at 81.53 as compared to 80.98 earlier.
It too dropped against the Japanese yen to end at 63.16 per 100 yens from 62.78.
Elsewhere, mild dollar's weakness largely helped the British pound and the euro to bounce off from an early slide trade higher against the US dollar.
In forward market today, premium for dollar declined owing to mild receiving from exporters.
The benchmark six-month forward premium payable in December moved down to 102.50-104.50 paise from 104-106 paise and the far-forward June 2019 contract eased to 252-254 paise from 253-255 paise last Friday.

Allahabad HC refuses interim relief to power firms from RBI directions

The Allahabad High Court (HC) on Monday refused to provide relief to privately-owned stressed power projects from the Reserve Bank of India’s (RBI’s) February 12 circular.
The circular had directed lenders to undertake insolvency resolution of defaulting companies within a strict timeline. The central bank had also put in the condition of one-day default, asking banks to identify stress even when repayments were overdue by a day. Resolution proceedings would have to be completed in 180 days. The deadline ended on Monday.
The court has, however, allowed companies to seek the legal route with their individual grievances. Monday’s order sets the clock ticking on 34 stressed assets that have a cumulative debt of Rs 1.74 trillion. A dozen of these are expected to face insolvency proceedings now.
The Independent Power Producers Association of India (IPPAI) had filed a petition in the Allahabad HC seeking exemption from the RBI notification. The court then directed the Ministry of Finance to hold a meeting with all stakeholders, including the Ministry of Power, the RBI, and private power companies, and to prepare a report. The report was the Centre’s submission in the HC.
The Centre said it would seek regulatory relief for a dozen power projects with an overall debt exposure of around Rs 1 trillion. It also constituted a high-powered committee (HPC) under Cabinet Secretary P K Sinha. Representatives from the ministries of railways, finance, power, coal, and key sector lenders are part of the committee.
The court has directed this committee should come out with a resolution plan in two months from its constitution (on July 29). It has asked the Centre to start consultations with the RBI under Section 7 of the RBI Act and conclude it in 15 days.
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According to Section 7, the central government may issue directions to the RBI as it may “consider necessary in public interest” after consultation with the RBI Governor. However, a senior government official said that Section 7 of the RBI Act only relates to the management of the central bank and not policy issues. The government has so far never invoked Section 7 to issue directions to the RBI.
The court asked the bankers to move the RBI under the Section 7 of the Insolvency Bankruptcy Code for getting their resolution plan approved or the deadline for it extended from the central bank. It has also asked all the lenders and the government to identify and resolve the stressed assets under Sections 35AA and 35AB of the Banking Regulations Act.

Section 35A of the Banking Regulation Act, 1949, enables the Union government to authorise the RBI to direct banking companies to resolve specific stressed assets by initiating insolvency resolution process.
Around 11 projects of State Bank of India (SBI) and three of the Power Finance Corporation (PFC) have been identified for a resolution plan. These would have to start the resolution process soon.
Punjab National Bank (PNB) is working with SBI on a resolution plan for some of these stressed power assets, industry sources said. The PFC has the highest exposure of Rs 300 billion, followed by PNB (Rs 279billion) and SBI (Rs 240billion).
SBI has looked at 13-14 accounts that would entail changes in management, investment, etc. Of these, seven to eight accounts are close to getting consensus among the banks, SBI Managing Director Arijit Basu had said last week.
Banks will have the additional burden of provision, depending on the haircut they have to take for each of the case, public sector bank executives pointed out.
ALSO READ: $52 billion of India loans under scrutiny on RBI's bankruptcy deadline
Lenders have decided to take four cases to the bankruptcy court. There is also room for banks to withdraw case referred to the National Company Law Tribunal, with the consent of 90 per cent of lenders, another SBI executive said.
The power ministry has suggested two schemes for resolution of stress in the sector — Samadhaan, by SBI and PFC, and Pariwartan from the Rural Electrification Corporation (REC) which has suggested setting up an asset restructuring company (ARC). Samadhaan is about identifying 10 assets and taking over “sustainable debt” and then selling the asset to some ARC.
“Eighteen stressed power assets are in the NCLT, eight have been resolved, and 11 were identified for Samadhaan. Four of these have not found to be viable and will be referred to the NCLT,” Rajnish Kumar, chairman, SBI, said earlier in the day. The Supreme Court tomorrow will hear a transfer petition filed by the RBI to get all the cases filed against its February 12 circular by all affected sectors to a single bench in Delhi.

Jet Airways posts Q1 loss of Rs 13.23 bn due to higher fuel expenses

Jet Airways Ltd, India's second-largest airline by market share, posted a first-quarter loss, hurt by higher fuel expenses.
The airlines posted a loss of Rs 13.23 billion ($188.76 million)in the three months ended June 30, compared with a profit of Rs 535 million a year earlier.

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Aircraft fuel expenses for the quarter surged 53 per cent to Rs 23.32 billion.

BJP govt changed Rafale deal to favour industrialist: Rahul Gandhi in UK

Congress president Rahul Gandhi on Friday raked up the multi-billion Rafale deal in the UK, accusing the BJP government of changing the contract to benefit an industrialist who was in debt.
In an interaction with the National Indian Students and Alumni Union (UK) at the London School of Economics, Gandhi spoke of alleged corruption in the Rafale deal, accusing Prime Minister Narendra Modi of favouring a businessman who had no experience in manufacturing aircraft.

Gandhi has been attacking the BJP government for allegedly inking the deal at a much higher price than the one the previous UPA regime had negotiated to benefit "one businessman".
Facing allegations of getting undue benefits from the multi-billion dollar Rafale deal, Anil Ambani-led Reliance Group has sent legal notices to several Congress leaders asking them to "cease and desist" from levelling such charges.
Gandhi, in response to a question on tackling corruption, said: "Hindustan Aeronautics Limited (HAL) has been building aircraft for 70 years... HAL has no debt. HAL has by far the best experience in building aircraft in 70 years".
"Our government signed a contract with Dassault, and gave the contract to HAL. The price we were paying was approximately 5.2 billion (Rs 520 crore).
"Then something happened, Prime Minister Modi went to France, changed the contract from 126 planes to 36 planes, changed the pricing structure from 5.2 billion to 16 billion and magically, Mr Anil Ambani was given the contract," Gandhi said.
The Congress president alleged that "Mr Anil Ambani is Rs 450 billion in debt".
"Mr Anil Ambani has never made a plane in his life, and the company that got the contract, one of the biggest defence contracts in the world, was formed one week before, luckily this is absolutely amazing. So that's the interesting question about corruption," Gandhi said.
Reliance Group has denied the allegations relating to the deal under which France's Dassault is supplying the fighter jets and has entered into a joint venture with an Anil Ambani-led group firm to meet its offset requirement of the contract.
Ambani recently wrote to Gandhi on the deal saying his party has been "misinformed, misdirected and misled" by "malicious vested interests and corporate rivals" on the issue.

Encourage Bhutan to deploy more soldiers in Doklam: Parl panel to govt

A parliamentary panel adopted a report on the Doklam issue on Saturday recommending that India should encourage Bhutan to deploy more soldiers on the northern parts of the sensitive region.
Troops of India and China were locked in a 73-day stand-off in Doklam in the Sikkim sector from June 16 last year, after the Indian side stopped construction of a road in the disputed tri-junction by the Chinese Army. Bhutan and China have a dispute over Doklam.

Congress president Rahul Gandhi is a member of the Parliamentary Standing Committee on External Affairs, headed by party MP Shashi Tharoor. Gandhi was not present in the meeting today.
Earlier this month, the panel could not adopt the draft report as most of the BJP members skipped the meeting and the quorum could not be reached, according to sources.
ALSO READ: Rahul slams govt on Doklam, says Swaraj 'buckled in front of Chinese power'
Some members of the panel who were present in today's meeting said the report was adopted with minor modifications.
The draft report, circulated among the panel's members on August 6, did not clarify whether the committee was favouring increasing the deployment of Indian troops in the region.
ALSO READ: India could've stopped Doklam stand-off if Modi was careful: Rahul Gandhi
BJP members of the panel had demanded that statements recorded before the committee by the defence secretary and the incumbent and former external affairs secretaries not be made public.
A member of the committee said today that "nothing sensitive and crucial information" shared with the panel by officials has been made public.
The committee members had travelled to Sikkim and Arunachal Pradesh to take stock of ground situations and meet senior officials there.
It has been briefed several times on the issue by the former and current foreign secretaries and other officials.
ALSO READ: First after Doklam, Chinese soldiers in India to boost military ties
The foreign ministry officials had informed the panel that Bhutan was firmly with India on the issue.
During earlier discussions, Rahul Gandhi had questioned External Affairs Ministry officials on China's objective and why Beijing chose Doklam to create a confrontation, the sources earlier said.

Rupee leaps from life-time low to snap weeks of decline despite headwinds

The rupee staged a spirited recovery from its life-time low to end higher by a whopping 24 paise at 69.91 against the US currency in a highly volatile week on bouts of dollar selling by exporters and corporates.
After a seemingly endless stream of gloomy news and falling values, sentiment has finally started to show signs of improvement globally against the backdrop of the upcoming visit of Chinese delegates to the US in order to re-ignite trade talks.
Easing contagion risk on emerging-market currencies after last week's carnage also added a positive vibe on the trading front.
The domestic currency larely withstood the headwinds of surging crude prices and trade deficit worries.
The benchmark Brent crude surpassed the significant $75-mark a barrel once again on re-emergence of a supply shock.
Excess volatility and movements in the US dollar had a major impact on the domestic unit initially.
The rupee got hammered to hit a low of 70.24 before rebounding from a fag-end wallop, snapping a two-week losing streak.
The Indian currency had its most turbulent week in more than two years witnessing record lows after doing little to quell investors' fears of a prolonged downturn ahead - a shock resembling 2013 currency crisis.
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It crashed to a historic low of 70.40 against the dollar last week in the wake of Turkey's currency crisis.
The rupee had depreciated by a staggering 2.26 per cent, or 155 paise.
The US dollar shed windfall gains scored on the back of haven demand amid turmoil in emerging market assets.
India's foreign exchange reserves fell by $33.2 million to $400.847 billion in the week to August 17 mainly due to fall in foreign currency assets, according to RBI data.
Meanwhile, foreign investors and funds pumped in over Rs 75 billion into the Indian capital markets so far this month on better corporate earnings coupled with improvement in crude oil prices.
ALSO READ: Rupee has not depreciated to a worrying level, govt should watch CAD: Rajan
On the energy front, crude prices snapped their seven seven straight weeks of decline - the longest losing streak in three years as supply risk jumped back into the limelight on growing concern over Iranian sanctions cutting off a major supply source.
The benchmark Brent crude surged over $1.02, or 1.4 per cent to end at $75.75 a barrel.
Earlier this week, staging a smart recovery, the rupee sharply higher at 69.83 from last Thursday's closing value of 70.15 at the inter-bank foreign exchange (forex) market.
The fresh breakout pushed the local unit to hit a high of 69.53 on fresh dollar selling also supported by a strong rally in local equities.
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However, succumbing to a mid-week sell-off spooked by global trade war jitters, the rupee retrated sharply to breach the 70-mark once again to touch a low of 70.24 briefly before recuperating all losses to end at 69.91, revealing a sharp gain of 24 paise, or 0.34 per cent.
The RBI, meanwhile, fixed the reference rate for the dollar at 70.1377 and for the euro at 81.1699. The 10-year benchmark yield ended modestly higher at 7.87 per cent. Globally, the US dollar shed windfall gains scored on the back of haven demand amid turmoil in emerging market assets.
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The Federal Reserve Chair Jerome Powell comments at the Jackson Hole sent the US dollar lower against all of the major currencies on Friday after he confirmed that steady rate hikes are the best way to protect the US economic recovery, though investors were not impressed.
The euro climbed to its strongest level in three weeks despite persistent rise in Italian yields.
The British pound also extended its recovery but the lackluster rally signals that investors are still worried about Brexit.
The dollar index, which measures the greenback's value against a basket of six major currencies dropped to 95.08 from 96 earlier.

MoD clears Rs 460-bn purchase of missiles, guns and naval helicopters

The defence ministry’s apex procurement body, the Defence Acquisition Council (DAC), accorded approval on Saturday for acquisitions worth about Rs 460 billion. This includes missiles and two types of helicopters for the Navy, and artillery guns for the Army.
The biggest procurement green-lighted today is the Rs 217.38 billion purchase of 111 naval utility helicopters (NUH), which will be built by a competitively chosen Indian private sector company.
"This is the first project under the MoD's prestigious Strategic Partnership (SP) Model that aims at providing significant fillip to the government's 'Make in India' programme. SP Model envisages indigenous manufacturing of major defence platforms by an Indian SP, who will collaborate with foreign OEM (original equipment manufacturer), acquire niche technologies and set up production facilities in the country," stated the defence ministry on Saturday.

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The search for a suitable foreign OEM began more than a year ago. On December 1, the Navy chief, Admiral Sunil Lanba, said: "We have floated an RFI (request for information) and we have gotten responses from five OEMs. They are being examined."
On July 30, the defence ministry had promulgated the "implementation guidelines" for choosing an SP in the helicopter category, clearing the way for this procurement.
The basic SP policy framework is a part of the Defence Procurement Procedure of 2016 (DPP-2016). However, equipment-specific selection criteria need to be separately drawn up for each of the four weapons categories the SP policy covers -- fighter aircraft, helicopters, submarines and armoured vehicles. The guidelines for fighters, submarines and armoured vehicle categories are still awaited.
Multi-role helicopters
In another procurement that the Navy chief had identified as "the most important helicopter for us", the DAC cleared the purchase of 24 naval multi-role helicopters (NMRH) that operate from the decks of capital warships, providing early warning and locating and destroying enemy submarines.
The Navy's NMRH fleet currently consists of less than a dozen vintage Seaking helicopters that are increasingly difficult to maintain. While the acquisition of replacement NMRH has dragged on for over a decade, the helicopter hangars of the Navy's frontline warships have remained effectively empty.
"To enhance the capability of Navy at sea, approval has also been granted for procurement of anti-submarine capable, 24 in number multi role helicopters, which are an integral part of the frontline warships like the aircraft carriers, destroyers, frigates and corvettes. Availability of MRH with the Navy would plug the existing capability gap," said the defence ministry.

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Intriguingly, the ministry has not announced which procurement category these helicopters are being bought under. There are reports that the contract is being awarded on a single-vendor basis to US aerospace giant, Lockheed Martin. This comes just days ahead of the 2 + 2 US-India meeting in Delhi on September 6.
The usually credible defence blog, Livefist, writes: "The Indian MoD today cleared decks for the navy to contract for 24 Lockheed Martin-Sikorsky MH-60 Romeo maritime helicopters in a government-to-government deal with the Pentagon. The deal is expected to be worth $1.8 billion (Rs 12,500 crore)."
The MH-60 Romeo is built by Sikorsky, which Lockheed Martin -- already the world's biggest arms company -- acquired in November 2015.
The defence ministry is also silent on whether the 24 NMRH will be bought in flyaway condition, like the 36 Rafale fighters contracted in 2016, or whether there is a Make in India component to the deal.
With the Navy's requirement for NMRH pegged at 123 helicopters for the entire fleet, it is feasible to buy the initial 24 in flyaway condition, with the remaining 99 helicopters built in India. Contacted for a clarification, the defence ministry did not respond.
Artillery guns
In a badly-needed fillip to Army firepower, the DAC approved the manufacture of 150 indigenously designed and developed Advanced Towed Artillery Gun Systems (ATAGS) at an approximate cost of Rs 33.65 billion.
These guns, which the ministry terms "the mainstay of artillery in the near future" are being procured under the "Make – Indigenously Designed, Developed and Manufactured (IDDM)" category. The Defence Research and Development Organization (DRDO) has overseen their development and two private firms will build the guns in parallel -- the Kalyani Group and Tata Power (Strategic Engineering Division).
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The plan is to eventually induct about 1,500 ATAGS. The current order is a preliminary batch that will be used to continue gun development.
Finally, the DAC cleared the procurement of 14 Vertically Launched Short Range Missile Systems that will boost the capability of warships to shoot down and destroy incoming anti-ship missiles.

Nearing resolution of Rs 170-bn NPAs in power sector: SBI MD Arijit Basu

The country’s largest lender, State Bank of India (SBI), on Friday said about 7-8 power sector projects worth Rs 170 billion are likely to be resolved soon, as lenders are nearing a consensus on these.
There are about 34 stressed power projects and the combined value of their outstanding loans is about Rs 1.74 trillion.

“We have looked at 13-14 accounts that would entail changes in management, investment, etc. Of these, we are looking at 7-8 accounts very closely to get some consensus among the banks,” SBI MD Arijit Basu said on the sidelines of a banking event, organised by the Centre for Economic Policy Research (CEPR) and NITI Aayog.
When asked how many cases are being referred to the NCLT by the end of the August 27 deadline, he said: “We don’t see major spurt in accounts being referred to National Company Law Tribunal (NCLT). We have been bringing out the stress in the system... we have worked at resolution. We have not waited for the deadline.”
Banks have already referred many cases to NCLT, he said. The Reserve Bank of India (RBI), in a circular in February, had mandated banks to identify power projects with even a day’s default as ‘stressed assets’, and conclude the resolution proceedings in 180 days else refer them to NCLT. The circular came into effect on March 1, and the 180-day deadline concludes on August 27.
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On provisions against non-performing assets (NPAs) or bad loans, Basu said that some guidance has been given and the bank has already provided for them significantly in the first quarter.
“As far as recoveries are concerned, the current financial year has been significantly better; almost 80-90 per cent more than what we were doing in 2017-18,” he said.
When asked about public sector banks requiring more autonomy, Basu said SBI is a well governed bank with a very strong board.
“The board has not only strong internal directors but strong external directors. So, all decisions are board-driven. Corporate governance in SBI is strong and the regulator is also very clear on how a bank should be regulated,” he said.
On Thursday, former RBI governor Y V Reddy had called for putting an end to the problem of “dual control” of public sector banks.

Clock is ticking for Rs 3.8 trn stressed assets; 70 firms may land in NCLT

The fate of about 70 big-ticket stressed accounts with loans of over Rs 3.8 trillion is uncertain as the deadline of August 27 for firming up resolution plans for them approaches. Failing to stitch a plan might leave lenders with no choice but to take these companies to the bankruptcy court.
The Reserve Bank of India’s (RBI's) new rules for resolving stressed assets (issued on February 12) require banks to finalise a plan within 180 days of default. For large defaulting accounts (Rs 20 billion and above), the rules came into effect from March 1. If lenders are unable to ...

Sushma jobless, RSS like Muslim Brotherhood: Rahul's UK speech highlights

Rahul Gandhi on Friday launched a scathing attack against the BJP government on a host of issues ranging from jobs, Women's Reservation Bill and foreign policy. Gandhi made these comments in London while addressing two different meetings at the International Institute of Strategic Studies (IISS) and London School of Economics.
Gandhi also said that the General Election in 2019 is going to be fought between the BJP and the Opposition alliance as for the first time there has been a "systematic attack" on Indian institutions.
Rahul also said that the Congress was not involved in the anti-Sikh riots of 1984 in which nearly 3,000 Sikhs were killed.
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Here's what Gandhi said in London:
1. Doklam standoff was an event for Modi: Rahul Gandhi slammed Prime Minister Narendra Modi, saying he views the Doklam issue as an event and added that Chinese presence is still there. "I don't have the details of Doklam, so I can't answer how I would've handled it differently. What I can tell you is that Doklam is not an unrelated episode, it's not a one-off, it is not a border issue, it is a strategic issue."
"It is a part of a sequence of events and Doklam was a crisis that happened because the government is episodic," he added.
2. India facing job crisis: Gandhi on Friday said that India was facing a "full-blown crisis" of unemployment and the Government was refusing to admit it. "The jobs crisis can be addressed, but India has to first accept that there is a problem," said Gandhi.
Comparing China with India, he said: Where China creates 50,000 jobs a day, only 450 jobs are created in a day in India. This is a catastrophe. Gandhi said that India has a bigger role to play for the world as the nation is more refined now.
3. 2019 election to be fought between BJP and Opposition alliance: In an interaction with the National Indian Students and Alumni Union (UK) at the London School of Economics, Gandhi said that the first priority of the Congress is to defeat the Bharatiya Janata Party (BJP) and stop the institutions in India from being encroached upon.
"Next election is pretty straightforward. On one side there is BJP and on the other side, there is every opposition party. The reason is, for the first time, Indian institutions are under attack," he said.
ALSO READ: BJP govt changed Rafale deal to favour industrialist: Rahul Gandhi in UK
"What we're defending is the onslaught on the Indian Constitution. I and the entire opposition have agreed, that our first priority is to stop the poison being spread," Gandhi said.
4. Congress not involved in 1984 anti-Sikh riots: To a question being asked by the CNN-News18 at an event in the UK Parliament about the 1984 riots, Gandhi said: "I have no confusion in my mind about that. It was a tragedy, it was a painful experience. You say that the Congress party was involved in that, I don't agree with that. Certainly there was violence, certainly, there was tragedy."
"So, I am against any sort of violence against anybody on this planet. I get disturbed when I see anybody being hurt. So, I condemn that 100 per cent and I am 100 per cent for punishment for those involved in any violence against anybody. That's crystal clear," said Gandhi.
5. Will co-operate with BJP if they pass Women's Reservation Bill: Rahul Gandhi said that his party would happily co-operate with the BJP if they wish to pass the Women's Reservation Bill in Parliament.
The Women's Reservation Bill was passed by the Indian Parliament's upper house Rajya Sabha on March 9, 2010, but has been stalled in the Lok Sabha.
"I have sent a message to the Prime Minister, the day he wishes to pass the Women's Reservation Bill, entire Congress party is happy to co-operate with BJP," Gandhi said.
6. Sushma has no job, spends time on people's visas: Rahul Gandhi while speaking at the International Institute of Strategic Studies (IISS) said that the there is a monopoly of PMO on the External Affairs Ministry and that External Affairs Minister Sushma Swaraj has no job except spending a lot of time working on people's visas.
Sushma Swaraj really has nothing to do, though she is quite a capable lady, the Congress leader said. "If you actually give her the power to do something, she could probably break that monopoly (in the ministry)."
7. Govt lacks coherent strategy for Pakistan: Gandhi on Friday said that the Narendra Modi government lacks a "coherent strategy" towards Pakistan and attacked Modi for his foreign policy based on "hugs".
Taking a dig at the Prime Minister, Gandhi said: "I've also been trapped in the hug politics but I don't think you can run foreign policy based on hugs. It doesn't work. We have tremendous structures in our country, institutional structures that understand these things, one has to use those structures to develop strategy."

ALSO READ: Eyeing 2019 election, Rahul Gandhi sets focus on small businesses
The Congress leader said some of the institutions in Pakistan are hostile towards India and some are attacking India. "So we don't want to talk to them."
8. RSS similar to Muslim brotherhood: Rahul Gandhi compared the Rashtriya Swayamsevak Sangh (RSS) with the Muslim Brotherhood, a Sunni Islamist organization, and said the RSS wanted to "capture" every institution of the country. The RSS was trying to change the very nature of India, he alleged.
"What we are dealing with is a completely new idea. It is similar to the idea that exists in the Arab world in the form of Muslim Brotherhood. And the idea is that an ideology should run through every institution, one idea should crush all other ideas."
9. BJP govt changed Rafale deal to favour industrialist: Rahul Gandhi alleged that the BJP government changed the multi-billion dollar Rafale contract to benefit an industrialist who was in debt. Gandhi has been attacking the BJP government BJP government for allegedly inking the deal at a much higher price than the one the previous UPA regime had negotiated to benefit "one businessman".
"Our government signed a contract with Dassault and gave the contract to HAL. The price we were paying was approximately 5.2 billion (Rs 520 crore).
"Then something happened, Prime Minister Modi went to France, changed the contract from 126 planes to 36 planes, changed the pricing structure from 5.2 billion to 16 billion and magically, Mr Anil Ambani was given the contract," Gandhi said.

Patanjali moves NCLT against Ruchi Soya lenders approving Adani Wilmar bid

Ramdev-led Patanjali Ayurved has approached the NCLT challenging the decision by Ruchi Soya's lenders to approve Adani Wilmar's Rs 60 billion (Rs 6,000 crore) takeover bid.
The matter is expected to come up for hearing on Monday (August 27) before the Mumbai bench of the National Company Law Tribunal (NCLT), sources said.

When contacted, Patanjali Spokesperson S K Tijarawala declined to comment, saying that matter is sub-judice.
A spokesperson of Adani Group also declined to comment.
On Thursday, Adani Wilmar's bid was approved by the committee of creditors (CoC) of the bankruptcy-bound Ruchi Soya with about 96 per cent votes in favour.
The resolution professional has to seek NCLT approval after the lenders choose a bid.
ALSO READ: Ruchi Soya lenders approve Adani Wilmar's Rs 60-billion resolution plan
Adani Wilmar and Patanjali group have been engaged in a long-drawn battle to take over Ruchi Soya.
While Adani Wilmar emerged as the highest bidder with a Rs 60 billion (Rs 6,000 crore) offer, Patanjali group came second with a Rs 57 billion (Rs 5,700 crore) bid.
Patanjali Ayurved had earlier sought clarification from the RP (resolution professional) of Ruchi Soya related to eligibility of Adani Group to participate in the bidding process.
ALSO READ: Adani Wilmar's Rs 60-billion bid for Ruchi Soya gets approval of CCI
It also sought to know the parameters adopted by the RP to declare Adani Wilmar as the highest bidder.
The Haridwar-based firm had also questioned the appointment of Cyril Amarchand Mangaldas as the RP's legal advisor as the said law firm was already advising Adani Group.
Patanjali was asked to submit a revised bid by June 16 to match or better the highest offer of Rs 60 billion (Rs 6,000 crore) by Adani Wilmar under the Swiss Challenge system adopted by the RP and the committee of creditors.
However, Patanjali wrote to the RP seeking clarifications instead of submitting a fresh bid.
Adani Wilmar has been selected by the CoC after two-rounds of bidding.
Ruchi Soya, which is facing the insolvency proceedings, has a total debt of about Rs 120 billion (Rs 12,000 crore). The company has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.
ALSO READ: Why is everyone keen on buying debt-ridden Ruchi Soya? All you need to know
In December 2017, Ruchi Soya Industries entered into the Corporate Insolvency Resolution Process (CIRP) and Shailendra Ajmera was appointed as the RP.
The appointment was made by the NCLT on the application of the creditors Standard Chartered Bank and DBS Bank, under the Insolvency and Bankruptcy Code.

Tim Cook to Indra Nooyi, US CEOs wary of Donald Trump's immigration policy

Dozens of top US business leaders including Apple’s Tim Cook, JPMorgan Chase & Co.’s Jamie Dimon and Pepsico’s Indra Nooyi signed a letter expressing “serious concerns” about the Trump administration’s immigration policy changes and their potential to undermine economic growth.
The letter focussed on recent changes in the area of high-skilled immigration. The executives decried moves that were said to include “inconsistent immigration decisions” and the likely curtailing of work permits for spouses of some high-skilled immigrants.

Those shifts were “unfair” and created a risk of “unnecessary costs and complications,” the CEOs said in a letter to Homeland Security Secretary
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Kirstjen Nielsen.
“As the federal government undertakes its legitimate review of immigration rules, it must avoid making changes that disrupt the lives of thousands of law-abiding and skilled employees, and that inflict substantial harm on U.S. competitiveness,” the executives said.
H1B visas
The letter, dated Wednesday, was coordinated by the Business Roundtable, a Washington-based policy and lobbying group consisting of top US chief executives. It was first reported by Fortune. It highlighted the current treatment of applications for H1B visas for skilled foreign workers, a category often seen as synonymous with the technology industry but that also includes architects, economists, physicians and teachers, among other professions. A policy brief released in July by the National Foundation for American Policy showed denials of such visas are on the rise.
Tim Cook to Indra Nooyi, US CEOs wary of Donald Trump's immigration policy
“The Trump administration is limiting the admission of high-skilled foreign nationals, even though economists believe America greatly benefits from the entry of foreign-born scientists and engineers,” the Arlington, Virginia, group said in its brief.
In their letter, the CEOs said that the Department of Homeland Security was allowing inconsistent applications of policy in case reviews and was was failing to tell workers what information they need to submit, creating uncertainty for workers. The executives also complained the department has in some cases started deportation proceedings after denials even among current workers who “have complied with immigration laws and intend to promptly depart the country.”
The roundtable, which Dimon chairs, released the letter “on behalf of the CEO members” on Thursday.
Others executives who signed included Doug Parker of American Airlines Group, Laurence Fink of BlackRock, Marc Benioff of Salesforce.com and Omar Ishrak of Medtronic Plc.

RCom gets relief from overseas bondholders; plan cleared for a 42% haircut

In a development that takes it closer to averting bankruptcy proceedings, Reliance Communications (RCom) has secured approval of its overseas bondholders for the revised terms. The Anil Ambani-owned company had defaulted on a $300-million bond last year.
In a meeting held in London on Friday, over 83 per cent of those holding the bonds, now due in 2020, cleared the plan. According to the revised proposal, RCom will offer cash up to $118 million and $55 million bonds, to be issued by Global Cloud Xchange, the holding company of GCX, an overseas subsidiary of RCom.
Following the agreement, the bondholders will receive the new bonds of Global Cloud Xchange, which will be unlisted, unsecured and earn a half-yearly coupon of 0.1 per cent, with a maturity of four years. The new offer indicates a haircut of over 42 per cent of the face value.
It was crucial for RCom to win the approval of its bondholders, because according to the inter-creditor agreement (ICA) signed by the Indian banks, the local lenders can agree to a debt restructuring only if the dollar bonds are also restructured. The August 27 deadline, set by the RBI to settle debt, expedited the settlement with the bondholders. In its earlier offer to the bondholders, RCom had asked them to either tender their existing notes at a steep discount or exchange them for $45 million new zero-coupon notes due in 2023, to be issued by Global Cloud Xchange. RCom was earlier offering to pay 3.5 per cent of the principal for the notes. But the bondholders wanted more incentives, as they were sitting on losses. As on Friday, the bonds were trading at 38.9 cents to a dollar, which meant a 62 per cent hit taken by them. On Friday, the bonds finally closed at 38.94 to a dollar.
ALSO READ: RCom completes sale of some assets to Reliance Jio for Rs 20 billion
RCom defaulted on the bonds last year after it failed to repay its debt worth Rs 447 billion to Indian banks. In June last year, the Indian banks signed a standstill agreement with RCom. According to the agreement, RCom received a moratorium on payment of interest and principal dues to banks till December 2018. This was after RCom promised to sell its telecom infrastructure to elder brother Mukesh Ambani owned Reliance Jio for Rs 181 billion. The proceeds of the sale is to be used to repay bank debt. RCom Chairman Anil Ambani also promised to raise an additional Rs 100 billion by selling real estate to repay bank debt.

RCom gets relief from overseas bondholders; plan cleared for a 42% haircut
RCom, like many other smaller telecom players like Tata Teleservices and Uninor, failed to face the intense competition unleashed by Reliance Jio on the incumbents.
While the margins of big three players — Bharti Airtel, Vodafone and Idea Cellular — fell drastically, the other smaller players simply exited the sector.
ALSO READ: RCom reinstates Rs 7.74-bn bank guarantees with DoT; asset sale on track
The Indian lenders were also keen that RCom settles with its bondholders as the banks are sitting on a mountain of bad debts worth almost $210 billion, which has led to massive write-offs and fund infusion from the Indian government.
The RCom debt would have increased their NPA burden. Recently, Life Insurance Corporation had to invest Rs 94 billion in IDBI Bank so that the latter can meet its financial requirements. While RCom is one of the few firms which is selling assets to repay its debt, many other Indian companies have been sent to the National Company Law Tribunal for debt resolution by banks under the Insolvency and Corporate Code, 2016.
Seeks shareholders’ nod to enhance borrowing limits
Debt-laden Reliance Communications has sought shareholders’ approval to enhance the company’s borrowing limits to up to Rs 500 billion to meet its capital requirements.
The company said its annual general meeting is scheduled to be held on September 18, 2018, to consider various proposals, including revising borrowing limits, alterations to the Articles of Association of the company, and private placement of non-convertible debentures or other debt securities.
In 2014, a special resolution had been passed authorising the board to borrow up to four times the aggregate of the then paid-up capital and its free reserves, RCom said in a regulatory filing on Friday. The resolution enables the company’s board to borrow funds “which may at any time not exceed Rs 500 billion”.

NCLAT declines stay on Tata Sons' conversion to pvt co; relief for Mistry

While declining to pass any order on the conversion of Tata Sons into a private company from a public limited firm, NCLAT today asked Tata Sons not to force Cyrus Mistry to sell his shares in the company till his appeal is pending.
The National Company Law Appellate Tribunal (NCLAT) said that pending the litigation here, the Cyrus Mistry camp which was seeking a status quo over it cannot be "forced to sell shares".

The bench said it would decide over the issue of conversion of Tata Sons to a private company at later stage during the pendency of appeal.
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A two-member bench headed by its Chairperson Justice S J Mukhopadhaya admitted Mistry's appeal and directed Tata Sons and other respondents to file their reply within 10 days.
NCLAT has listed the matter on September 24 for next hearing.
On August 14, NCLAT had reserved order over the interim relief sought by Cyrus Mistry camp.
Mistry had challenged the orders of National Company Law Tribunal (NCLT) which had dismissed his plea challenging his removal as chairman of the company.
In September last year, Tata Sons had received shareholders' nod to convert itself into a private limited company from being a public limited company, limiting in effect Cyrus Mistry family's ability to sell their stake to outsiders.
A public limited company allows shareholders to legally sell their stake to anyone, but a shareholder of a private limited firm cannot sell the shares to external investors.
ALSO READ: Tata Sons cannot force Cyrus Mistry to sell shares for now, says NCLAT
The Mistry camp had challenged the July 9 order of the Mumbai bench of the NCLT which dismissed their pleas against his removal as Tata Sons chairman, as also the allegations of rampant misconduct on part of Ratan Tata and the company's Board.
A special bench of the tribunal had held that the board of directors at Tata Sons was "competent" to remove the executive chairperson of the company.
NCLT bench members B S V Prakash Kumar and V Nallasenapathy had also said that Mistry was ousted as chairman because the Tata Sons' Board and its majority shareholders had "lost confidence in him".
Under the Companies Act 2013, an order of NCLT can be challenged before the National Company Law Appellate Tribunal (NCLAT). Mistry, who was the sixth chairman of Tata Sons, was ousted from the position in October 2016.
He had taken over as the chairman in 2012 after Ratan Tata announced his retirement.
Two months after his removal, Mistry's family-run firms Cyrus Investments Pvt Ltd and Sterling Investments Corp approached the NCLT as minority shareholders, against Tata Sons, Ratan Tata, and some other board members.
Mistry in his pleas primarily argued that his removal was not in accordance with the Companies Act and that there was rampant mismanagement of affairs across Tata Sons.
He also alleged that Tata Trust chairperson Ratan Tata and trustee N Soonawala interfered with the day-to-day operations of the group companies, they acted as shadow directors, and all of the above caused massive revenue loss for the group.

Rupee makes strong comeback, rises 20 paise to 69.91 versus dollar

The rupee on Friday staged a good recovery to end higher by 20 paise at 69.91 against the US currency on bouts of dollar selling by exporters and corporates.
The domestic currency recouped early losses and withstood the headwinds of surging crude prices and trade deficit worries.

Excess volatility and movements in the US dollar had a major impact on the domestic currency.
The domestic unit hit a low of 70.24 before rebounding in late afternoon deals.
India's trade deficit soared to a near five-year high of $18 billion, raising concerns on the current account front.
Also, global crude prices surged after a brief consolidation largely supported by signs that US sanctions on Iran, the third-biggest producer in the OPEC, are already reducing global crude supply.
The benchmark brent was up 60 cents a barrel at $75.33 in early Asian trade.
ALSO READ: Sudden depreciation of rupee not good as it adds volatility in market: SBI
The market participants are now focusing on the upcoming Jackson Hole Central Banking Symposium and also closely watching developments of the US-China trade war and its implications on global growth and influences on Fed monetary policy, a forex dealer commented.
The sharp fall in the rupee on Thursday was clearly unexpected, he added.
Meanwhile, the US dollar continued to enjoy the Fed's optimism from the FOMC meeting minutes expectation of monetary tightening even investors awaited further moves in global trade disputes despite growing US political uncertainty.
The Indian economy is expected to grow by around 7.5 per cent in 2018 and 2019 as it is largely resilient to external pressures like those from higher oil prices, Moody's Investors Service said.
ALSO READ: Rupee@70: RBI may have shifted rupee intervention limit, say analysts
In its Global Macro Outlook for 2018-19, Moody's said the run-up in energy prices over the last few months will raise headline inflation temporarily but the growth story remains intact as it is supported by strong urban and rural demand and improved industrial activity.
In the meantime, Indian shares edged down, taking a pause after hitting record highs.
Extending its overnight bearish trend, the rupee opened lower at 70.20 at the inter-bank foreign exchange (forex) market on sustained demand for the American currency from importers and banks.
It drifted to a low of 70.24 and staggered without direction in line with most Asian peers.
But the downside pressure shifted quickly to the upside in mid-afternoon trade and moved into a bullish phase.
After scaling a session high of 69.89 towards the fag-end trade, it finally settled at 69.91, revealing a smart gain of 20 paise, or 0.29 per cent.
The local unit had lost 30 paise against the dollar.
For the week, the rupee recuperated by a whopping 24 paise after a two straight weeks of fall.
The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 70.1377 and for the euro at 81.1699.
ALSO READ: Rupee's weakness worrying you? Beat depreciation with international funds
The 10-year benchmark bond yield also softened to 7.87 per cent.
Against a basket of other currencies, the dollar index is down at 95.26.
In the cross currency trade, the rupee bounced back against the British pound to end at 89.86 per pound from 90.41 and also recovered against the euro to close at 80.98 compared to 81.21 on Thursday. It strengthened against the Japanese yen to finish at 62.78 per 100 yens from 63.29 earlier.
Elsewhere, the euro and pound sterling traded modestly higher against the US dollar ahead of US data releases and the speech by Chief J Powell at the Jackson Hole Symposium.
In forward market on Friday, premium for dollar showed a mixed trend owing to lack of market moving factors.
The benchmark six-month forward premium payable in December moved down to 104-106 paise from 105-107 paise, while the far-forward June 2019 contract was quoted unchanged at 253-255 paise.