Business News Live: GMR says spending ₹20k crore on airports’ expansion, developing new ones


Asian shares extended their losses on Friday and Indian equity indices opened lower with all sectors in red. Lockdown induced in low vaccinated countries due to rising cases of Delta variant dimmed the fuel demand outlook, setting oil for about a 6% weekly decline.

12:20 P.M.

GMR says spending ₹20k crore on airports’ expansion, developing new ones

GM Rao, Chairman of the GMR Group said they are currently investing ₹20,000 crore to expand the existing airports and developing new aerodromes, PTI reported.

“Airport Development and Construction: GMR Group has set benchmarks for development of world class Airport infrastructure… Your company is currently investing approximately ₹20,000 crore to expand the existing Airports and develop new Airports,” Rao said in the group’s latest annual report.

GMR’s airport business comprises of four operating airports- Indira Gandhi International Airport, Delhi, Rajiv Gandhi International Airport, Hyderabad, Bidar Airport at Karnataka and Mactan Cebu International Airport in the Philippines.

12:05 P.M.

Apple delays office return to at least January as COVID cases rise

Apple has delayed its return to corporate offices to January after a surge in COVID-19 cases and new variants, Bloomberg reported citing a memo the iPhone maker sent to its employees on Thursday.

The company noted that it would confirm the re-opening a month before they are required to return to the office. Apple previously wanted its staff to return to offices by early September but then delayed it until October.

Once back, employees will be expected to work for at least three days a week in office. In the memo to staff, Apple strongly encouraged staff to get vaccinated.

11:45 A.M.

Karvy chairman C Parthasarathy held for bank loan default case

Karvy Stock Broking Limited Chairman C Parthasarathy was arrested on Thursday on charges of defaulting a loan taken from the IndusInd bank and diverting the fund to other bank accounts, PTI reported.

The banks in their complaint alleged that Karvy group unlawfully pledged the shares of its clients and availed loans. In a complaint, IndusInd said that Karvy availed credit facilities of ₹137 crore from the bank by pledging securities/shares and personal guarantee of Parthasarathy without the clients’ consent and by misusing power of attorney.

“The accused company became defaulter by diverting the funds into own and connected businesses entities and on November 22, 2019 the SEBI revoked the pledge of securities with Banks/NBFCs and returned the securities/accounts. The complaint banks were left with no collateral and thereby KSBL defaulted in repayments of about Rs 137 Crores as on March 31, 2021,” a press release from the police said.

11:15 A.M.

CarTrade makes weak debut on D-Street, lists below issue price

Shares of CarTrade Tech made a weak market debut on Friday, listing at ₹1,600, a discount of over 1% against its issue price of ₹1,618, PTI reported.

As trade progressed, the shares tumbled 8.77% to ₹1,476. The company’s market valuation was at ₹7,079.53 crore on BSE.

On NSE, it debuted at ₹1,599.80, lower by 1.12%. CarTrade IPO was subscribed 20.29 times earlier this month. The ₹2,998.51-crore IPO was in a price range of ₹1,585-1,618 per share.

10:45 A.M.

Indian govt IT spend growth to slow down to 8.6% in 2022, Gartner says

The growth in information technology spending by the government is estimated to fall 8.6% to $8.3 billion in 2022, against the 13.2% rise expected in the ongoing 2021, PTI reported citing a global consultancy.

“Digitalisation initiatives of Indian government organisations took a giant leap in 2020 because of the global pandemic. The pandemic forced the government to shift priorities as supply chains and revenue streams dwindled,” Apeksha Kaushik, senior principal research analyst at Gartner, said.

Governments will focus on citizen experience and digital inclusion as the vaccination rates and public health improves in the country, she added.

10:15 A.M.

Jet Airways staff moves NCLAT against resolution plan, flags salaries concern

Jet Airways’ cabin crew and ground staff have filed a petition before the National Company Law Appellate Tribunal (NCLAT) challenging the Jalan Kalrock consortium’s resolution plan which was approved by the National Company Law Tribunal (NCLT) in June.

Jet Airways Cabin Crew Association and Bhartiya Kamgar Sena noted that pending salaries and retirement benefits of all workmen of the airline were not included as part of the Corporate Insolvency Resolution Process (CIRP) cost.

Jet Airways has been grounded for more than two years now. They stopped operations in April 2019 due to financial woes and the insolvency resolution process commenced in June the same year.

9:50 A.M.

Union Commerce Minister Piyush Goyal says Indian exports at nearly $15 bn till mid-August

Union Commerce Minister Piyush Goyal on Thursday said our exports have reached nearly $15 billion in the first half of August, PTI reported. India had posted its highest-ever monthly performance in July at $35 billion.

As major economies opened after COVID-19 lockdowns, Indian exports rose by nearly 50%, touching a lifetime high of $35.43 billion in July Exports in the first 15 days of August have touched nearly $15 billion. During April to August 2021, exports are 23% higher as compared with the pre-pandemic FY20.

9:20 A.M.

Sensex tanks 470 points, Nifty below 16,400

The Indian benchmark equity indices opened lower on Friday. Sensex opened 0.85% or 470.36 points lower at 55,159.13 while Nifty opened at 16,382.50, down 1.12% or 186.35 points.

The market was dragged lower by across the board selling. All the sectors were in red at market open with metals, banks, auto and pharma falling the most.

9:15 A.M.

Oil rises but set to decline for the week on Delta anxiety

Oil prices rose on Friday after falling to a three-month low but were set for a weekly plunge of about 6% as lockdowns in low vaccinated countries due to rising cases of Delta variant dimmed the outlook for fuel demand, Reuters reported.

Brent crude futures rose 0.4% to $66.72 a barrel after falling 2.6% on Thursday, its lowest close since May. U.S. West Texas Intermediate (WTI) crude for futures surged 0.5% to $64.04 a barrel declining 2.7% on Thursday.

Asian shares extend losses, dollar holds onto gains

Asian shares fell further on Friday after touching a low of 2021 the previous day while dollar stayed strong, sitting at a nine-month high, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.75% and Chinese blue chips plunged 1.22%. Hong Kong fell 0.53%, with Japan’s Nikkei down 0.53% and U.S. stock futures, the S&P 500 e-minis down 0.26%.

The dollar index which calculates the currency against six peers changed marginally from the previous day at 93.517 on Friday.

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