January 9, 2024 | Posted in News
Let’s begin…Telecom has been the most litigious sector, but going forward around 80% of disputes would get settled at the department level and 99% at the telecom tribunal level, communications and IT minister Ashwini Vaishnaw told FE. The minister said that the newly-enacted telecom law has put in place an online dispute resolution mechanism between users, service platforms, and the government. The Act stipulates appointment of an adjudicating officer as well as a separate designated appeals committee (DAC) before a case goes to the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) level for resolution. The communications and IT minister said that he was sure that going forward this template will be adopted by other sectors of the economy as well.
Next up….IT firms are now reworking the contracts with their senior executives by putting in a clause which restrains them from soliciting, hiring or poaching employees after joining rival companies. The clause is being reinforced after the recent legal spat between Wipro and its former CFO Jatin Dalal, who joined rival firm Cognizant soon after leaving the company. The matter was referred for arbitration last week by a Bengaluru district court. Even Infosys sent a missive to Cognizant warning against unethical poaching. Since taking charge in January last year, Cognizant CEO Ravi Kumar, a former Infosys veteran, has hired over twenty executive vice presidents and four senior vice presidents, many of whom are from Wipro and Infosys.
Additionally…Hindustan Unilever (HUL), the country’s largest consumer goods company, is pushing large or family packs into select general trade outlets in top 100 towns, as it seeks to shore up volume growth, at least three distributors from Maharashtra, Gujarat and Madhya Pradesh have told FE. The move is also aimed at bringing large general trade stores, those measuring 1,000-1,200 sq ft and above in terms of size, up to speed with modern trade by providing them large packs commonly found in modern trade outlets. The initiative has been rolled out across soaps and detergents, foods, beverages and personal care in what HUL calls ‘Bharat ke Shehar’, distributors said. The initiative also allows HUL, say distributors, to offer steep price-offs and discounts.
In some exciting news, Airfares to Ayodhya have soared and tickets to the temple town now cost more than international fares as tourists flock to the city for the opening of the Ram temple on January 22. A one-way flight direct flight on IndiGo from Mumbai, to the newly opened Maharishi Valmiki International Airport, Ayodhyadham, on January 19, will set back the passenger by Rupees 20,700. In contrast, a direct Air India Mumbai-Singapore flight for the same day is priced at Rupees 10,987; a direct flight to Bangkok from Mumbai costs Rupees 13,800. Moreover, as Ayodhya has less than 1,500 operational hotel rooms, room rates have jumped by 4-5 times.
In other news…Tamil Nadu on Sunday witnessed investments to the tune of rupees 58,000 crore on the first day of its flagship Global Investors meet with big ticket fund inflows from JSW group, Tata Electronics, Hyundai and Pegatron, among others, across various sectors in the state. Major memorandum of understanding (MoUs) for investments include Vietnam-based VinFast’sRupees 16,000 crore, JSW’sRupees 12,000 crore, over Rupees 12,082 crore by Tata Electronics, Rupees 7,360 crore by Hyundai, and Rupees 6,180 crore by TVS Group. iPhone-maker Pegatron will invest Rupees 1,000 crore while First Solar committed Rupees 2,500 crore, Godrej Consumer Rupees 515 crore, Mitsubishi Electric Rupees 200 crore and Qualcomm Rupees 177 crore. Ola Electric and AP Moller-Maersk expressed their intent for additional investment in the state.
Moreover…India Inc’s earnings for the December 2023 quarter are expected to show strong growth on the back of good numbers from auto manufacturers, banks, capital goods makers, cement producers and residential real estate developers. In aggregate, companies are likely to report a high single-digit increase in profits when seen year-on-year, though the rise may be somewhat modest sequentially. Good results from oil marketing companies (OMCs) will boost aggregate profits thanks to the helpful base in Q3FY23 when these firms reported losses. However, IT services players are expected to turn in an ordinary performance. With the rural economy yet to recover, makers of consumer staples are tipped to report a very subdued low-to-mid single-digit volume increases.
Lastly…Here are stocks to watch for today – Reliance Industries, TVS Motors, Titan, Marico, Adani Wilmar, Bajaj Auto, Reliance Power, Jupiter Wagons. GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Monday. Here’s a look at the key stocks to watch in trade. GIFT Nifty traded down by just 2 points or 0.01% at 21,766 indicating lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 gained 52.20 points or 0.24% to settle at 21,710.80, while the BSE Sensex ended higher by 178.58 points or 0.25% to 72,026.15.