Maruti Suzuki sales drop to a two-year low. Domestic sales plummeted by 34% while sales of mini-cars like Alto and Wagon R fell by 70%. Amazon is in talks to acquire stake in Reliance Retail. ED raids premises linked to erstwhile Ranbaxy promoters Malvinder Mohan Singh and Shivinder Mohan Singh. Didi Chuxing joins hands with BP to build electric vehicle charging infrastructure in China. US Federal Reserve cuts interest rate by 25bp. Sensex and Nifty fall after Fed eases policy.
Moving on to the top Business news of the day.
Maruti Suzuki sales drop to a two-year low. Domestic sales plummeted by 34% while sales of mini-cars like Alto and Wagon R fell by 70%.
Maruti Malarkey: The company sold 1.09L units in July, the lowest in two years and reflecting a drop of 33.5% when compared to the same time last year.
Total exports also declined 9.4% YoY. Mini-cars like Alto and Wagon R are in particularly bad shape, registering a YoY fall of almost 70%
A Tiny Ray of Light: The only segment to register growth (by half a percent) was the light commercial vehicle, under which it sells Super Carry.
But Why?: The carmaker blamed “unenthusiastic market sentiments” for the substantial decline in sales.
Amazon is in talks to acquire stake in Reliance Retail.
The What: As per reports, ecommerce giant Amazon is in preliminary talks to acquire up to 26% in Reliance Retail.
The news comes shortly after Reliance's negotiations with China's Alibaba Group to sell a stake in the retail entity fell through due to differences over valuation.
Tread Cautiously: With discussions ongoing Amazon will have to tread carefully, ensuring that any deal between the two giants complies with the revised FDI norms for ecommerce that came into effect in February.
What’s the Plan?: The move is in line with Amazon’s attempts to gather stakes in existing retailers instead of investing in its own stores as it seeks to fortify its offline presence. It is also reportedly in talks with Kishore Biyani’s Future Group.
ED raids premises linked to erstwhile Ranbaxy promoters Malvinder Mohan Singh and Shivinder Mohan Singh.
The Ascent of Ranbaxy: The Enforcement Directorate (ED) on Thursday raided the premises linked to erstwhile Ranbaxy promoters Malvinder Mohan Singh and Shivinder Mohan Singh following charges of alleged financial irregularities against the two brothers and the subsequent downfall of their businesses.
#TransfinPicks: Read the story of how India’s largest generic drug maker dealt with the discovery of deep gaps in its drug trial data here.
Didi Chuxing joins hands with BP to build electric vehicle charging infrastructure in China.
BP Meets Didi: Chinese ride-sharing and transportation platform Didi Chuxing has formed a joint venture with British gas, oil and energy supermajor BP to build EV charging infrastructure in China.
Snack On This: As per this article, in the race to make more batteries Europe is beating the US - with a little help from China.
US RATE CUT
US Federal Reserve cuts interest rate by 25bp. Sensex and Nifty fall after Fed eases policy.
It’s A Cut: As expected by a majority of economists, the Federal Reserve moved to cut interest rates on Wednesday by 25bp.
The interest rate is now 2.25% and Chairman Jerome Powell suggested that the Central Bank was not committed to continue lowering rates. This means this was merely an insurance cut made to offset possible economic doldrums.
Washington Sneezed And Delhi Caught a Cold: You’d expect America’s first rate cut in over a decade to be welcomed by markets with open arms and teary eyes. Instead, the Dow Jones Industrial Average and S&P 500 both lost over 1% after Powell’s press conference. Halfway across the world, Sensex ended the day 463 points down while Nifty was below 11,000.
This was most likely because Powell termed the cut a “mid-cycle adjustment to policy”, killing hopes that the Fed would begin a rate-cutting cycle from this month.