Category: Business & Economy

On Monday, a group in charge of deciding taxes in India agreed to raise the tax on fizzy drinks to 35% from 28%. This change is aimed at making unhealthy items that are often linked to health problems, like cigarettes and tobacco, more expensive. The final choice about these new taxes will be made by a meeting of top government officials on December 21.

Right now, India has four tax levels: 5%, 12%, 18%, and 28%. The new 35% rate will be added for these unhealthy items. Currently, items that are considered necessary, like food, either have no tax or a very low tax, while luxury items, like cars and washing machines, have higher taxes. The proposal would also mean a special rate of 35% on tobacco products and fizzy drinks.

The news about higher taxes caused the shares of Varun Beverages, a major partner with PepsiCo in India, to fall by over 5%. Most of their money comes from selling fizzy drinks, which have been struggling because of the high taxes. Despite this, their shares have shown some growth over the last month and six months.

A report showed that the high taxes in India make it hard for carbonated drinks to grow and reach their full business potential. Comparisons by the World Bank reveal that India has one of the highest total tax rates on sugary drinks, standing at 40% in 2023

Indian Oil Corporation Limited (IOC) has recently shown a slight increase in its stock price, rising by 1.01%. This change happened while the Sensex, which is a big stock market index in India, experienced ups and downs. The Sensex is important because it reflects how well the stock market is doing overall. Investors keep a close eye on IOC because it plays a crucial role in the energy sector, helping to supply fuel to millions. If you are interested in investing or just want to keep track of market trends, watching IOC could be a good idea

Tata Power’s shares went up by 2.64%, closing at ₹289.50. This rise happened as many investors were looking for good stocks to buy when the market opened. The share price showed a positive trend throughout the day.

Tata Power is a well-known company that focuses on energy and renewable sources. Experts believe more people might want to invest in Tata Power because they are planning exciting new projects. Their aim is to produce cleaner energy and become a leader in the energy market.

The company’s performance is also influenced by overall market trends and government policies supporting renewable energy. Investors are keeping a close eye on Tata Power to see how it performs in the future and whether it can continue to grow.

Today, the Nifty Bank Index, which shows how the banking stocks are performing, went up by 1.0%. This is great news in a happy and upbeat market where many stocks are gaining value. Investors are feeling hopeful, and this has led to more buying and greater confidence in the market.

As more people buy stocks, the market keeps rising, and this is good for everyone involved. The Nifty Bank Index has been a key player in this positive movement, showing that banks are doing well right now.

If you’re looking to keep track of how the market is changing, it’s important to pay attention to the Nifty Bank Index and the overall market trends.

NEW DELHI: On Tuesday morning around 10:14 AM (IST), the Nifty Realty index was doing well in the market. Some companies saw their stock prices go up, like Mahindra Lifespace Developers (up 1.78%), Brigade Enterprises (up 1.7%), Macrotech Developers (up 1.37%), Sobha (up 1.35%), and Raymond (up 0.84%).

However, a few companies didn’t do as great. Oberoi Realty fell by 0.61%, DLF dropped 0.31%, and Phoenix Mills was down by 0.22%. The Nifty Realty index was up 0.29% at 1054.30 at the time of this report.

The overall Nifty50 index rose by 66.91 points, reaching 24342.95, while the BSE Sensex increased by 233.6 points to hit 80481.68. Out of the 50 stocks listed in the Nifty index, 33 were gaining, while 17 were losing.

Some of the most traded stocks included Vodafone Idea, YES Bank, NTPC Green Energy, Ola Electric Mobility, and Suzlon Energy. Notably, shares of Banaras Beads, Niva Bupa Health Insurance, NTPC Green Energy, Enviro Infra Engineering, and Mask Investments reached their highest price in 52 weeks during today’s trade. On the other hand, Aki India, Shree Ram Proteins, Excel Realty N Infra, Antarctica Ltd, and Ind-Swift Labs hit their lowest price in 52 weeks.

Tata Power’s stocks are set to gain attention following the Delhi High Court’s request for answers from the Central government and other parties. This is about a case where Tata Power is disputing the coal ministry’s decision to cut its compensation for losing the Mandakini Coal Block in Odisha.

The High Court has ordered that no changes be made to the compensation ruling until December 4, when they will have another hearing. The authority in charge had lowered the compensation for Tata Power and others regarding the Mandakini Coal Block after a company called Karnataka Power Corporation (KPCL) received the coal block. Tata Power is claiming that this new decision is unfair and was made without proper consideration.

Tata Power argued that the authority, which is allowed to make these decisions under the Coal Mines (Special Provisions) Act, 2015, slashed the compensation from Rs 182.52 crore to Rs 114.91 crore, saying there was confusion over who the prior buyers were. Tata Power, along with two other companies, was listed as previous claimants for the coal block.

The company insisted that the authority incorrectly included IFCI Ltd as a secured creditor and awarded them Rs 102.47 crore without recognizing that IFCI hadn’t challenged the original compensation ruling, which had already been finalized.

Back in 2008, Tata Power and the other companies created Mandakini Coal Company Ltd (MCCL) to manage the coal block. They each owned an equal part of the company. The coal block was not mined, but MCCL borrowed Rs 140 crore from IFCI in 2014, which the companies guaranteed together.

After the Supreme Court cancelled the coal block allocations in 2014, IFCI demanded repayment of the loan by May 2015. IFCI later filed a claim of Rs 142.92 crore to receive compensation. They wanted the money because they were considered a secured creditor of MCCL.

While Tata Power and another company cleared their debts, IFCI reduced its claim to Rs 54.36 crore, related to the remaining company that went bankrupt. However, Tata Power’s compensation continues to be unpaid by the authority.

Meanwhile, MCCL has an appeal pending for more compensation, but neither KPCL nor IFCI has disputed the original compensation order.

Adani Power is in the news because Bangladesh owes the company $844 million (about ₹7,000 crore) for power supply. Bangladesh has now asked Adani to cut back on electricity because fewer people are using power during the winter season. A representative from Adani Power explained that they can still provide electricity as needed according to their agreement with the Bangladesh Power Development Board (BPDB).

Adani Power signed a 25-year deal with BPDB back in 2015, supplying about 1,600 MW of electricity. This makes up about 10% of Bangladesh’s electricity needs. Although BPDB paid $91 million in October and $103 million in November, the total amount owed still stands at $844 million. The November bill has not been sent out yet.

Bangladesh is struggling to make enough money in dollars to pay for the electricity and fuel it imports. On November 7, BPDB issued a new letter of credit worth $173 million to ensure Adani can keep supplying electricity. This came after Adani Power had to cut supplies by half due to unpaid bills. They also asked for an extra $15-20 million to resume full supplies.

Adani Power’s spokesperson assured that they are following BPDB’s instructions and currently supplying from only one power unit. The spokesperson also mentioned that there haven’t been any talks about changing the power purchase agreement with Bangladesh. In September, Gautam Adani, the chairman of Adani Group, reached out to a top advisor in Bangladesh to push for quicker payment of the unpaid amount. Adani Power had invested $2 billion to set up the plant and related infrastructure, completing it in just 3.5 years, despite challenges during the COVID-19 pandemic.

(Disclaimer: The views and opinions expressed are solely those of the experts and do not reflect the views of NiftyStat.)

Mumbai: In the past year, wealthy investors have parked ₹89,400 crore in arbitrage funds, which now have a total of ₹2.35 lakh crore. This shows that these funds are becoming very popular, making up 53% of new money coming into hybrid funds. Arbitrage funds are attracting investors because they usually give better returns than regular debt funds, and they are taxed more favorably.

Data shows that arbitrage funds made an average return of 7.25% over the last year. In comparison, liquid funds returned 7.13%, and overnight funds earned only 6.63%. Fund managers say that returns from arbitrage funds have decreased slightly lately due to high inflows and declining short-term rates. The market has been pulling back since the election results in June, prompting many investors to play it safe.

For short-term gains, arbitrage funds are taxed at 20%, while long-term gains are taxed at 12.5%. In comparison, debt funds can be taxed at higher rates based on income slabs. Experts believe arbitrage funds will keep doing well because 45 new stocks have been added to the futures and options market, and no rate cuts are expected soon.

Arbitrage funds work by buying and selling stocks to take advantage of price differences. They are less risky because they hedge their bets and don’t carry credit risk. Plus, since they invest mostly in stocks (at least 65%), they are taxed as equity funds. This tax advantage is leading many rich investors to choose arbitrage funds over other options like liquid funds.

On Tuesday, Ambuja Cements, part of the Adani Group, grabbed attention for teaming up with a company from Finland named Coolbrook. This partnership is super important because it aims to use a special new technology that helps reduce carbon emissions in making cement. Ajay Kapur, who runs the cement business for Adani Group, said this partnership shows their strong wish to reach Net Zero, which means producing no more carbon emissions. He believes they are leading the way in being environmentally friendly and continuously looking for new ideas that help them use less energy and produce less carbon in their cement production.

Ambuja Cements will use Coolbrook’s amazing RotoDynamic Heater (RDH) technology. This new technology can make really high temperatures using clean energy instead of relying on fossil fuels. This is a big deal because it helps them cut back on harmful emissions while making cement, which is so important for construction and many other things.

Joonas Rauramo, the CEO of Coolbrook, expressed that this partnership is a big step for them to change heavy industries with their clever technology. He believes that Ambuja Cements’ strong commitment to being sustainable makes them the perfect partner.

Ambuja Cements is focused on being innovative and is determined to find smarter ways to run its operations while taking care of the planet.