Markets mostly closed in red on Tuesday along with Wall Street where stocks fell in a volatile session. The market selloff comes amidst US-China tension and investors trying to assess the outlook for the global economy. Investors monitored US House Speaker Nancy Pelosi’s movements as she landed uneventfully in Taiwan in the widely-anticipated stop on the trip that has angered China.
China Imposes Economic Curbs on Taiwan With Sand, Fruit Bans
China halted some trade with Taiwan in retaliation to the high-profile visit of US House Speaker Nancy Pelosi to the island.
China’s General Administration of Customs said in a statement Wednesday that some fish and fruit imports were suspended due to excessive pesticide residue detected “multiple times” on products since last year, as well as some frozen fish packages that tested positive for coronavirus in June. The Ministry of Commerce said in a separate statement it banned natural sand exports based on provisions of related law, but gave no further details.
Beijing has often targeted Taiwan’s agricultural industry for punishment over political issues. Many of southern Taiwan’s fruit-producing regions are typically bastions of political support for President Tsai Ing-wen’s Democratic Progressive Party, which advocates for Taiwan’s formal independence.
Govt adopting targeted approach to tame inflation, says FM Sitharaman
Finance Minister Nirmala Sitharaman on Tuesday said the government has adopted a targeted approach, based on ground-level inputs, to tackle retail inflation which is ruling at around 7 per cent.
The minister was replying to a short-duration debate on price rise in the Rajya Sabha.
Sitharaman stressed that the fundamentals of the Indian economy are strong.
Indian economy compared to the situation prevailing in peer-group nations and even developed countries is definitely “much better”, she said.
However, the minister also acknowledged that global factors are impacting the economy, and said “these are realities”.
Adani says 5G foray is first step toward integrated digital infra
Adani Data Networks, the digital connectivity solutions arm of the Adani Group, has acquired the right to use 400MHz of spectrum in the 26GHz band to enter the industrial 5G space.
The group said the 5G spectrum is expected to help create a unified digital platform that will accelerate the pace and scale of digitization of the group’s core infrastructure, primarily its industry and B2C business portfolio.
Akasa Air is set to start flights on the Chennai-Mumbai route from 15 September
The new carrier is scheduled to launch commercial flight operations on 7 August by running its first service on the Mumbai-Ahmedabad route. Further, the airline will start services on the Bengaluru-Kochi route and Bengaluru-Mumbai route from August 13 and August 19, respectively.
Govt eases imported coal blending norms for power producers
The government has relaxed norms for blending of imported coal by power generation companies and allowed states and independent power producers to import the fuel as per requirements.
The government has left on states and Independent Power Producers (IPPs) as well as the coal ministry to decide the percentage of imported coal for blending purpose.
The move came after power ministry reviewed the coal stock in the country.
SpiceJet: DGCA receives de-registration request for Boeing 737-800 aircraft
SpiceJet’s lessor, Alterna Aircraft Ltd, located in Ireland, has urged the Directorate General of Civil Aviation (DGCA) to de-register its aircraft. In its Monday appeal to India’s aviation regulator, Alterna did not state why one of its Boeing 737-800 planes should be deregistered.
Recently, SpiceJet has been in the news due to a number of events involving technical difficulties on its flights. Additionally, the Indian aviation authority was asked to deregister three of SpiceJet’s aircraft by one of its lessors with a base in Dubai.
Rupee jumps 53 paise to breach 78 level, closes at 1-month high on FII inflows
The rupee rallied 53 paise — its best single-day gain in over 11 months — to close at an over one-month high of 78.53 against the US dollar on Tuesday.
Persistent foreign fund inflows into capital markets, softening crude oil prices and a weak US dollar in the global markets boosted the local currency.
The rupee, which plummeted to a lifetime low of 80.06 last month, made a spirited recovery in the past four sessions as FIIs returned to capital markets and crude oil prices fell below USD 100 per barrel mark.
India’s exports fall marginally to $35.24 billion in July
India’s merchandise exports declined marginally to $35.24 billion in July 2022 as compared to USD 35.51 billion recorded in the same month last year, as per the government data released on Tuesday.
This has been achieved despite measures to control inflation (iron ore and pellets, iron and steel, petroleum products, etc.) and the continued disruptions of supply chains due to COVID and the Russia-Ukraine conflict, the Ministry of Commerce and Industry said in a statement.
India’s merchandise export in April-July 2022-23 was USD 156.41 billion with an increase of 19.35 per cent over USD 131.06 billion in April-July 2021-22.
India doing ‘much better’ than its peers: Nirmala Sitharaman
Finance minister Nirmala Sitharaman on Tuesday said that the Indian economy is in a much better condition to compared to other economies in its peer group and many developed countries.
In her reply during a discussion on price rise in the Rajya Sabha, Sitharaman said that the macro economic fundamentals of the country are strong. She also cited the loans sought by Bangladesh, Sri Lanka, Pakistan from International Monetary Fund (IMF) to highlight the better economic condition of India. (Full Report)
Centre raises windfall tax on domestic crude, cuts duty on diesel exports
The union government has raised the windfall tax on sale of locally produced crude oil to ₹17,750 per tonne. For the past two weeks, the sale of crude oil produced in India attracted an additional duty of ₹17,000 per tonne.
Centre has also revised the cess on export of diesel downwards to ₹5 per litre from ₹11 per litre, while the cess on export of aviation turbine fuel (ATF) has been scrapped. For the past two weeks since the last revision, ATF exports attracted an additional duty of ₹4 per litre.
Tokyo shares open higher with eyes on US-China tension
Tokyo stocks opened higher Wednesday, as investors snapped up shares with strong corporate earnings while monitoring the impact of US House Speaker Nancy Pelosi’s visit to Taiwan.
The benchmark Nikkei 225 index added 0.34 percent, or 94.72 points, to 27,689.45 in early trade, while the broader Topix index rose 0.17 percent, or 3.26 points, to 1,928.75.
The dollar stood at 133.46 yen, compared with 133.10 yen on Tuesday in New York.
Wall Street dips, dollar gains on economic, geopolitical concerns
U.S. stocks ended a choppy session lower on Tuesday, while the dollar rallied as risk appetite was dampened by economic uncertainties and escalating U.S.-China tensions.
All three major U.S. stock indexes closed red, with the blue-chip Dow faring worst. Economically sensitive transports underperformed the broader market.
Meanwhile, the safe-haven greenback had a better day than most asset classes, jumping 0.8% against a basket of world currencies.
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