Passenger vehicle sales saw a drop in September. Govt forms committee for biggest GST review yet. Bandhan Bank share price jumps over 20% after reports of inclusion in MSCI Index. Indiabulls stock falls after RBI rejects merger deal. TCS misses Q2 results. Infosys reports 6% rise in sequential net profit. Walmart might separate Flipkart and PhonePe. Modi and Xi to meet for border security talks during the two day informal summit.
Table of Contents
Slowdown for So Long: Data from SIAM showed that passenger vehicle sales fell 23.69% last month, prolonging the slowdown plaguing the automobile industry, now in its longest streak ever. 2,23,317 passenger vehicles were sold in September, the eleventh consecutive month of decline. Demand continues to be weak and job cuts continue to affect the sector. NDTV Profit
Review & Revamp: The government has formed a 12-member committee to conduct the biggest review of GST since its launch to suggest “systemic changes” to prevent misuse, boost overall compliance and augment GST collection and administration. The committee will be comprised of state and central government officials and the review panel may even suggest that rates be reviewed. ToI
Racing Up: Shares of Kolkata-based Bandhan Bank Ltd on Friday surged 20% on the back of reports that the lender will be added in the MSCI Index with effect from 16 October following its acquisition of Gruh Finance. IIFL
Plunging Down: Indiabulls share price fell over 26% in 2 days after RBI rejects merger with Lakshmi Vilas Bank following heightened worries about the housing finance company’s fund-raising capabilities in the backdrop of low liquidity. CNBC TV18
Some Misses: Tata Consultancy Services (TCS) share price fell c. 4% today before closing at INR1,989.00(-0.77%) as the IT firm missed profit and revenue growth estimates in Q2 results.
Q2 revenue climbed 5.8% Y-o-Y to INR38,997cr vs INR36,854cr last year.
This is the second successive quarter TCS has missed estimates in terms of both revenue and margin. Financial Express
Some Hits: Infosys today reported its Q2 earnings. The IT company reported a 6% sequential rise in net profit to INR4,019cr. Revenues increased 3.8% on a sequential basis to INR22,629cr
The company however, reported a 2.21% Y-o-Y fall in consolidated net profit at INR4,019cr in Q2. ET Markets
Two is Better Than One: Walmart is reportedly looking to demerge PhonePe from Flipkart as the US-based retailer looks to expand beyond e-commerce and tap onto India’s booming e-payments market. Flipkart, which Walmart had acquired in 2015, had passed a resolution in March for PhonePe to evolve as an independent entity. The payments app could be valued as much as $20bn according to Morgan Stanley and as Walmart seeks to directly own PhonePe, the digital payments space in India is all set to become larger and more competitive. Inc42
Business As Usual: Even as WeWork struggles to get back on its feet after its IPO valuation fiasco and the removal of its co-founder and CEO Adam Neumann, its India franchise is looking to raise $200mn of fresh funds to fund its growth in the country. Previously, talks to raise $100mn from a private investor didn’t go through. But Jitu Virwani, the venture’s chief shareholder, said his Embassy Group would pump in some capital if fundraising faltered. WeWork India itself plans to double its capacity by the end of next year, when it also hopes to turn profitable. Reuters
Chennai Express: As Prime Minister Narendra Modi and President Xi Jinping convene in Mamallapuram, Tamil Nadu for a two-day “informal summit” – the second of its kind after Wuhan – besides discussions on strategic issues, economic issues are also at the top of the agenda. Among these the most urgent topic could be India’s sky-high trade deficit with China, especially in the goods trade, and ways to increase investments so as to strengthen economic ties between two of Asia’s largest economies. Hindu BusinessLine
Betting for Bonhomie: The focus, however, will be on placating political tensions between the two countries, the relations between whom have soured greatly this year due to developments in Jammu and Kashmir and China’s close ties to Pakistan. To this end, the two leaders are expected to agree to new security measures along the 3,500-km border, disputes surrounding which remain unresolved despite over 20 rounds of talks. Reuters
(Don't want to miss out on these End Of Day Wrap Ups? Subscribe Now to our WhatsApp Feed and get the day's Top Business stories straight on your favourite messaging app.)