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Flipkart CEO Quits, Retail Inflation at an All-year Low et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Nov 13, 2018 1:35 PM 3 min read
Editorial

Good evening reader,

 

We've earlier discussed how the absence of a sound policy is a key barrier to creating a healthy Electric Vehicle (EV) industry in India.

 

For instance, current regulations for electricity sale does not permit private players to set up charging stations. That however may soon(?) change.

 

A new EV infrastructure policy permitting setup of charging stations without the need of a license appears to be in the pipeline - if recent comments of the concerned Minister are granted any credence.

 

The Government's approach towards EV to-date has been more noise than substance. Ambitious targets and glitzy events aside, EVs, like any nascent industry needs business model viability and policy support. Only 25,000 units were sold in 2015-16. A mere 350 charging stations are reportedly operational, vs. over 200,000 in China.

 

Multiple steps across verticals, ranging from stabilizing emission and manufacturing standards, to ensuring a robust back-end including charging infra and battery production, is much wanting.

 

The above would be the long awaited first small step.

 

Moving on to Today’s Top 6 Business Stories through our End Of Day Wrap Up:

 

 

INDIA

 

Tata Group eyes Jet Airways for probable acquisition.

Tata Group has allegedly kicked off due diligence of Jet Airways to accelerate the probable acquisition of a controlling stake in the debt-laden airline, according to a report by Livemint.

 

This deal, if successful, would be Tata’s third foray into the aviation sector after AirAsia and Singapore Airlines. The stake sale would also ease Jet’s ongoing cash crunch that has caused delays in payments and salaries.

 

Flipkart Group CEO Binny Bansal resigns after investigation into alleged "serious personal misconduct."

Binny Bansal, CEO of Flipkart Group quit post an investigation into 'serious personal misconduct' even as he denied the allegations, according to a press release.

 

Kalyan Krishnamurthy will continue as CEO of Flipkart, which will now include Jabong and Myntra.

 

IL&FS Board invites bids as IndusInd Bank terminates deal.

Govt-appointed Board of IL&FS has begun a public bidding process to identify takers for IL&FS Securities Services Ltd (ISSL) and ISSL Settlement & Transaction Services Ltd.

 

IndusInd Bank called off an agreement to buy out ISSL as the group did not fulfill conditions within the stipulated time period.

 

Retail Inflation reaches all-year low at 3.31% in October; Industrial Output at 4.5%.

Consumer Price Index (CPI) Inflation dropped to 3.31% in October on back of lower food prices, as per data released by Ministry of Statistics and Program Implementation. Vegetable prices fell by 8.06% in October vs. 4.15% decrease in September.

 

US/INTERNATIONAL

 

New York City and Northern Virginia chosen for Amazon’s HQ2.

According to an article in The Wall Street Journal, New York’s Long Island City and Arlington County’s Crystal City have been selected as Amazon’s HQ2 sites. The development projects to be announced promise a spike in employment and tax revenue.

 

US Futures, European stocks regain after Monday’s fall.

US stock market regains losses after its fall on Monday. S&P 500 and Dow Jones Industrial Average gain 0.5% and 0.3% respectively. Euro stocks also trade 0.5% higher.

 

Global stocks had tumbled on Monday due to heavy selling in Asia on back of declining tech stocks and sliding oil prices.

 

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