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- PM greets teaching community on Teachersâ Day; pays tributes to Former President Dr. Sarvepalli Radhakrishnan on his Jayanti
- Reliance Infrastructure update on withdrawal of adverse credit rating
- Telangana cabinet likely to recommend assembly dissolution on Thursday
- President, PM pay tribute to Radhakrishnan on Teachers' Day
- India's Russia missile purchase, Iran won't be focus of 2+2 meet: Pompeo
- Adil Hussain's 'What Will People Say' enters Oscar 2019 fray
- Google turns 20, to keep building products for everyone
- Twitter India head Taranjeet Singh quits, Balaji Krish to be interim chief
- Hardcore Hizbul activist arrested
- A top over-ground worker of Hizbul Mujahideen, who was involved in encouraging youth to join the terror group and revive militancy in Kishtwar district of Jammu and Kashmir, has been arrested, the police said Wednesday.
- Facebook, Twitter defend efforts to stop election meddling
- Facebook and Twitter executives plan to defend their companies in two congressional hearings, arguing they are aggressively trying to root out foreign actors who want to do the United States harm just weeks before the midterm elections.
- Gordon makes landfall near Alabama-Mississippi border
- Thousands of people were without power as Tropical Storm Gordon made landfall late Tuesday just west of the Alabama-Mississippi border.
- US Open contenders feeling the heat
- Weather was a hot topic at the US Open again as players again battled high heat and humidity as well as each other in a bid for semi-final berths.
- World Cup finalists Croatia face Portugal but look to the future
- Still riding the wave of their historic World Cup run, Croatia are heading for a potential reality check as their new season starts with a friendly against Portugal in Faro on Thursday.
- Del Potro beats Isner, ends American hopes to reach third US Open semi-final
- Juan Martin del Potro reached the US Open semi-finals for the third time, defeating John Isner 6-7 (5/7), 6-3, 7-6 (7/4), 6-2 and ending American hopes of a first men's champion at the event since 2003.
- Six-time champion Serena into US Open semi-finals as champion Stephens exits
- Six-time champion Serena Williams shook off a sluggish start to power past eighth-seeded Karolina Pliskova 6-4, 6-3 and into the US Open semi-finals.
- Australian cricket draws up cultural charter to avoid scandals
- Australian cricket is drawing up a cultural blueprint in which players will pledge to uphold certain standards in a move away from their win-at-all-costs mentality, according to skipper Tim Paine.
- Greener growth could add $26 trillion to world economy by 2030 - study
- Gold nudges up as dollar eases; Sino-U.S. trade tensions in focus
- Gold drops as trade, emerging market worries lift dollar
- Mcnally Bharat Engineering gains after winning order
- Xiaomi to launch Redmi 6, Redmi 6A, Redmi 6 Pro today: Know specs, features
- Rupee rebounds from life-time low of 71.58, up 20 paise against US dollar
- MARKETS LIVE: Nifty holds 11,500; pharma stocks gain, Rupee hits 71.58/$
- Meet The 38 Year-Old Entrepreneur Who Built A $1 Billion Oil Company In Ghana
- Channel - Block D - Billionaires - blog - Position 4 - Meet The 38 Year-Old Entrepreneur Who Built A $1 Billion Oil Company In Ghana
- Channel - Block D - Billionaires - blog - Position 5 - Nigerian Oil Tycoon Tonye Cole Joins Politics
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- The Minister of State for Youth Affairs & Sports and Information & Broadcasting (I/C), Col. Rajyavardhan Singh Rathore with the Medal Winners of the Asian Games-2018, at a function, in New Delhi on September 04, 2018.
- Google that came into existence 20 years back with its first product Search engine from a garage today has seven products that are used by more than a billion people every month.
- New Facebook project MPK 21 ready to promote team work
- Facebook has completed a new sustainable building project called MPK 21 that has a 3.6-acre rooftop garden featuring over 200 trees and a half-mile meandering pathway.
- Twitter CEO to defend company before Congress
- 6 killed in Tehran crane crash
- Trump praises Macri's handling of Argentine economic crisis
- 17 dead as trains collide in Angola
- US Secretary of State Mike Pompeo has said that India's planned purchase of a Russian missile system or its relations with Iran will not be "the primary focus" of the "incredibly important" 2+2 Strategic Dialogue meeting he and Defence Secretary Jim Mattis will be having with External Affairs Minister Sushma Swaraj and Defence Minister Nirmala Seetharaman this week.
- A crucial meeting of the Telangana cabinet is likely to be held on Thursday to recommend dissolution of the state assembly to pave way for early polls.
- President Ram Nath Kovind and Prime Minister Narendra Modi on Wednesday paid homage to the country's second President Dr Sarvepalli Radhakrishnan on his birth anniversary, which is celebrated as Teachers' Day across the country.
- 190 countries aim to broker pact on climate rules
- Negotiators from nearly 190 countries, including India, gathered here on Tuesday for the six-day resumed sessions of the UNFCCC's subsidiary bodies and the Ad Hoc Working Group on the 2015 Paris Climate Change Agreement amid strong calls for progress.
- Over 50% Indian retail cos to operate on AI by 2020: Survey
- Dassault Systemes helps Ashok Leyland unify virtual, physical testing (Lead)
- India one of the fastest growing regions for AR technology: Facebook
- Honor 7S budget smartphone now in India
- More than 50 per cent of Indian retail companies will be operating on Artificial Intelligence (AI) by 2020, revealed a survey by PeopleStrong, a Software-as-a-Service (SaaS) HR technology and solutions company.
- Learn management from Lord Hanuman
- View: India shoots wrong general in its lost war on cash
- Pakistan new President Arif Alvi is son of Nehru's dentist
- Lenders sitting in the LAP of disaster?
- Razorpay steps into enterprise lending to offer full stack
- How golf taught Tirun Travel Marketing COO important business lessons
- Is your child a fussy eater? Here's how to arrange food depending on age, gender
- Smarter than you think: Turns out, children can differentiate between leaders and bullies
- LG Q Stylus+ with intelligent palm rejection feature unveiled at Rs 21,990
- Heritage experts reach out to school children, add Bengaluru's history to academics
- India asks US to not forget 'strategic relations' amid sanction threat
- This start-up founder took leadership lessons fr...
- Neerja Birla has 1 rule in her house: No smartph...
- Tomorrow in Delhi, Trump will face his first real test on Iran
- Rs 7,000 cr is India's first bullet train bill
- How Jet plans to save itself from crashing
- New motor cover: Long-term OD policy or annual?
- India asks US to not forget 'strategic relations
- à¤à¥à¤¨ तिमाहॠमà¥à¤ à¤à¤¨ à¤à¤à¤ªà¤¨à¤¿à¤¯à¥à¤ à¤à¥ बिà¤à¥à¤°à¥ à¤"र मà¥à¤¨à¤¾à¤«à¤¾ हà¥à¤ दà¥à¤à¥à¤¨à¤¾
- Logistics, not dollar, influencing oil price: David Lennox
- Texmo Pipes soars 14% on L&T order
- Modi government faces heat over fuel fury
- Kerala rains hurt rubber production
- McNally Bharat jumps 5% on Rs 108 cr order win
- Vijay Kedia
- Stock market is a place to make easiest money in the hardest way
- Trump won't like what India plans to tell him
- Jeff Bezos rockets to richest person on the planet
- Not a good omen for Congress: SDPI appeal, seats grow in Karnataka local body polls
- There’s a plug-free way to fill the world with electric vehicles
- Logistics chain, not dollar index, influencing oil price: David Lennox, Fat Prophets
- Why customer engagement is the growth hack for small businesses
- China's Tencent wants to taste a plateful of Swiggy
- Paytm Money set for its public entry today
- 3rd party motor cover: Who pays more & NCB reworked
- This start-up founder took leadership lessons from Shiv Khera's 'You Can Win
- 10:34 AM | 05 Sep
- India will likely tell the US that it won’t be able to cut oil imports from Iran after sanctions.
- Regrow
- Alvi, a close ally of Prime Minister Imran Khan and one of the founding members of the Pakistan Tehreek-e-Insaf (PTI) party, was elected as the new President of Pakistan Tuesday.
- Loans to MSMEs, usually given to small entrepreneurs, have risen in the last four years as both banks and NBFCs have rushed to fund this sector
- The decision to get into the lending business will see the company enter an increasingly crowded space that has seen a number of venture capital-backed startups such as IndiaLends and Indifi establish their footprints.
- How to check PNR status using a payment app
- McNally Bharat jumps 5% on Rs 108 crore order win
- Buy Coal India, target Rs 325: Edelweiss Financial Services
- US throttles Iranian oil flows to buyers who vowed resistance
- Rafale ricochet? Adani canât be part of AK rifle project
- Soon, waste plastic may power your car!
- India is getting 18 bullet trains from Japan for Rs 7,000 cr
- Accessing your PNR status via the IRCTC site can sometimes be testing.
- âWith Iran sanctions, 2 million barrels of oil will go out of the supply chain.â
- So far none of Fidelityâs rivals have chosen to match its zero fee offer.
- The order relates to construction of 544 colony houses and a community hall, including internal electrification at Khinda in Odisha.
- Buy Coal India Ltd. at a price target of Rs 325.
- Falling interest rates and the success of government and RBI efforts to wean savers away from the instrument to remove the distortion to monetary transmission has seen the rate of growth of small savings flatten to zero in 2017-18.
- Finance and capital markets offer the âno brainerâ use cases for applying blockchain technology.
- The government is wary about any blowback in the proposed rifle production project in the backdrop of Congress levelling charges of âcrony capitalismâ in the way Reliance Defence was chosen as the main offsets partner of Dassault Aviation in the Rs 59,000 crore contract for 36 French Rafale jets.
- Clearly, things have not gone as per the plan for ITC, and as a result, the companyâs shareholders have not been rewarded as well as those of other FMCG companies. ITC is the cheapest FMCG stock at 34 times its trailing earnings as compared to the industry average of 64. The street has perhaps not given the company premium multiples primarily because the profit generated from the most profitable business does not entirely come to the shareholders, or remains on the companyâs balance sheet; it continues to get invested in businesses that either do not generate meaningful profits or have limited scalability.For instance, Rs 12,000-crore investments, together in the FMCG and hotels businesses, earned less than Rs 200 crore. FMCG did an EBIT of Rs 170 crore on the sales of Rs 11,400 crore (less than 1.5 per cent margin). Hotels did Rs 145 crore EBIT on the revenues of Rs 1,470 crore. Similarly, earnings from paper and agri businesses have grown in low single digits for the last five years.Had ITC continued to be only in the cigarette business, the company could have been the most valuable Indian company. Here is why: the profit from its cigarette business is twice HULâs total business, but their market caps are the same â" near Rs 4 lakh crore. Further, ITCâs cigarette business has the highest margins in the FMCG industry. The profit margins (EBIT or earnings before interest and tax margins) is 58 per cent. Compare this with HULâs 19 per cent. At a similar earnings multiple of HUL â" 70 times â" ITC cigarette business could have been valued at over Rs 8 lakh crore, ahead of RIL and TCS.
- How floods broke the backbone of plywood factories, rice mills in Kerala
- An Express story writes another: Missing kid back home
- Live updates
- M K Alagiri rally: Son holds silent rally in homage to late Karunanidhi
- Kisan-Mazdoor Sangharsh rally: Thousands begin march from Ramlila Maidan
- China hardsells big ticket but low on trust, Indiaâs soft power push in Myanmar education and health
- Tejashwi Yadav: 2019 poll to be Mandal, Ambedkar, Gandhi vs Godse, Golwalkar
- Aam Aadmi Party dissolves its overseas outfits with immediate effect
- Apple iPad Pro 12.9 (2018) images, video leaked before September 12 launch
- Pune: PMC chief asks civic department heads to submit monthly âresult documentâ
- M K Alagiri rally in Chennai: Son holds silent rally in homage to late Karunanidhi
- Priyanka Chopra and Nick Jonas watch Serena Williams reach semifinals of US Open
- Ball-tampering aftermath: Cricket Australia draws cultural charts to avoid scandals
- How floods broke the backbone of plywood factories, rice mills in Kerala
- Facebook and Twitter’s message for US lawmakers: We are trying
- Ludhiana MC House meeting: Bye-laws for registration fee on pets fails to get nod
- 34 per cent of Indians are insufficiently active, finds Lancet study
- Kerala battled the worst floods in a 100 years. Here is a look at some of the devastating visuals from the state.
- 5 Reasons To Watch The Nun
- Priyanka Chopra and Nick Jonas watch Serena Williams reach semifinals of US Open
- Shefali Shah: Bollywood doesnât know what to do with a woman who has crossed 40
- Apple iPad Pro 12.9 (2018) images, video leaked before September 12 launch
- Alagiri rally: In a signal to Dravida Munnetra Kazhagam (DMK), weeks after its chief M Karunanidhi passed away, M K Alagiri is holding a rally…
- Kisan-Mazdoor Sangharsh rally LIVE Updates: Thousands begin march from Ramlila Maidan
- Pune: Traffic woes continue as private vehicles take over BRTS lane
- Even traffic wardens, some of whom held a rope across the lane to prevent private vehicles from entering the lane, were unable to stop the zooming lot.
- The Punjabi NRIs, who have been long-time AAP supporters, have received the news with dismay saying the party has been reduced to the stature of the traditional political parties and that dissent was being muzzled.
- Wives of jailed Myanmar reporters shocked by verdicts
- Wa Lone and Kyaw Soe Oo had reported about the army's brutal counterinsurgency campaign that drove 700,000 members of the Muslim Rohingya minority to flee…
- Teachers' Day 2018: Google celebrates with an animated doodle
- Teachers' Day 2018: The larger significance of the day is the birth anniversary of Dr Radhakrishnan, one of the most learned scholars of all times, specifically in the fields of comparative religion and philosophy.
- Teachers' Day: 5 dream punishments we wish to get from teachers
- Reminiscences of our school days still make us wonder how cool it would have been if we got punished the way we want.Â
- Teacher's Day 2018: CBSE lauds teachers, says 'you are changing the world'
- A Letter To Myself On My First Day Of Teaching
- Kolkata Majherhat Bridge Collapse Live Updates: Mamata Banerjee to visit spot around 2 pm
- 7th Pay Commission: à¤à¤¨ माà¤à¤à¥à¤ à¤à¥ वà¤à¤¹ सॠTeachers day à¤à¥ à¤à¤¾à¤²à¤¾ दिवस à¤à¥ तà¥à¤° पर मनाà¤à¤à¤à¥ यॠà¤à¥à¤à¤°
- Apple Watch shipments top 4.7 million in Q2, 2018, Xiaomi number two in list: IDC
- Wa Lone and Kyaw Soe Oo had reported about the army's brutal counterinsurgency campaign that drove 700,000 members of the Muslim Rohingya minority to flee to Bangladesh.
- New Yorker drops Steve Bannon from festival guest list after backlash
- Donald Trump criticizes Nike for âterrible messageâ in Kaepernick Ad
- White House terms Bob Woodward’s book as ‘fabricated stories’
- Los Angeles will not prosecute Kevin Spacey on 1992 assault claim
- Live updates
- September 5, 2018 10:33:58 am
- September 5, 2018 10:26:50 am
- Mervyn King
- Business Live: Wednesday 5 September
- Jebi was the worst storm to hit Japan in 25 years, killing at least 10 people and stranding thousands.
- Former Bank of England governor Mervyn King, now Lord King, blasts Brexit preparations as...
- Williams fights back to reach last four
- Brexit approach incompetent - Lord King
- Islamabad, Sep 5
- All eyes are set on first ever meet of new regime in Pakistan, headed by Prime Minister Imran Khan, with United States as US Secretary of State Mike Pompeo will visit Islamabad on Wednesday to hold crucial talks.
- Rape accused escapes from police custody in Doda
- Jammu, Sep 5
- An accused arrested in alleged rape case, managed to a give slip to police from court premises in Doda district of Jammu and Kashmir, police said on Wednesday.
- India-US '2 Plus 2' Dialogue likely to produce 'concrete outcome
- Ehsan Mani elected new chairman of Pakistan Cricket Board
- Islamabad, Sep 4 (UNI) Ehsan Mani has been elected the chairman of the Pakistan Cricket Board (PCB) for a period of three years, it was confirmed on Tuesday.
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- Minister Taro Kono: It is an honor for me to contribute to further development of Azerbaijan-Japan relations
- On the eve of his official visit to Azerbaijan, Japan`s Minister of Foreign Affairs Taro Kono commented on the current state and prospects of relations between the two countries. AZERTAC presents the minister`s comments ...
- Azerbaijan`s Defense Ministry: Armenian armed units violated ceasefire 113 times
- Sensex, Nifty turn choppy on weak global cues
- The 30-share Sensex recovered by 76.85 points, or 0.20%, to 38,234.77 in opening trade.
- Rupee recovers from lifetime low, up 20 paise against U.S. dollar
- Stranded people leave flooded airport after typhoon in Japan
- Jebi, reportedly the strongest typhoon to make landfall in Japan since 1993, has been downgraded to a tropical storm and is heading north of Japan.
- India buying Russian missile system not primary focus of 2+2 talks: Pompeo
- âThey are [missile system purchase from Russia and oil from Iran] part of the conversation. They are part of the relationship,â says Mr. Pompeo
- Russia warns Google against election âmeddlingâ
- Kremlin writes to Larry Page regarding opposition leader Alexei Navalnyâs videosâs use of YouTube
- Rescue team stumbles uponyellow-collared wolf snake
- Reported for the first time in Srisailam-Sagar tiger reserve
- Stage set for Telangana Assembly dissolution
- Cabinet likely to pass resolution tomorrow
- Investigations have pointed to an unnamed gang, some of whose members have in the past been associated with the right-wing Hindu organisation Sanatan
- Shivinder Vs Malvinder - An Ugly Fraternal Fight As Shivinder Drags Malvinder To NCLT
- Polls Say Moo: Madhya Pradesh Congress Chief Kamal Nath Turns Cow Saviour, Promises Gaushalas In Every Panchayat
- Kobe pile-up
- Fortis: Shivinder takes brother Malvinder to court
- 10 killed, 300 injured as typhoon Jebi hits western Japan
- No changes April 10 Sebi circular NRIs allowed to invest up to 5 in any security Govt
- No changes April 10 Sebi circular NRIs allowed to invest up to 5 in any security Govt
- Shivinder has alleged 'oppression and mismanagement' against his elder brother
- Agencies
- PTI | Washington
- Tata to build Lockheed Martin's F-16 fighter jet wings in India
- Jebi is considered as the most powerful storm to hit Japan in 25 years
- Rupee hits fresh record low. These factors are adding to the weakness as it inches towards 72/$
- Typhoon kills at least nine in Japan, boats move tourists from flooded airport
- India buying Russian missile system not primary focus of 2+2 talks: Mike Pompeo
- Delhi Metro second-most unaffordable worldwide in terms of income spent for using it: CSE
- Citigroup CFO Gerspach to retire, be replaced by Mason: memo
- Alagiri prepares for 'milestone' rally, claims 1 lakh supporters will attend
- D-Street Buzz: Nifty pharma outperforms with Sun Pharma up 2%; RIL advances, Advanced Enzyme jumps 9%
- Texmo Pipes surges 14% on order win from L&T worth Rs 81.30 crore
- MK Alagiri rally LIVE updates: As ex-DMK leader presses on for position in party, Stalin camp shows door to his supporter
- Hrithik Roshan Unveils 'Super 30' Posters on Teacherâs Day
- Americans are Burning All Things Nike to Protest New Ad, But Guess Whoâs Having the Last laugh
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- Will September belong to bears? Sensex gave negative returns during the month in 5 of last 10 years
- 6 ways your regular investments can ensure financial success
- Sunil Hitech to go into bankruptcy motion - for excess use of Amex credit cards
- Twitter CEO to defend company before Congress against bias claims
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- How The Economy And Banking Sector Have Fared Under Urjit Patel
- HDFC Bank: Rupee Could Touch 72/$ In September
- Shivinder Singh Sues Brother Malvinder, Breaks Business Partnership
- Nearly 400 NBFCs Shut Shop As RBI Clean-Up Continues Â
- Adani To List Gas Division Seperately
- SEBI Panel May Suggest Easing Ownership Rules For Foreign Funds
- Kotakâs Iyer Goes Bollywood To Persuade RBI As Yields Surge
- Silver Is Being Hit On All Sides
- Asian Stocks Drop Amid EM Turmoil; Dollar Steady: Markets Wrap
- Stocks To Watch: Jet Airways, Hathway, Hudco, Muthoot Finance, Varroc Engineering
- Wednesday, September, 05, 2018 10:37:49 AM
- Gauri murder: From no major leads to 14 arrests
- Kolkata bridge collapse: Search operations continue for survivors
- The rescuers tried drilling the concrete slabs, used cameras and sniffer dogs to ensure anybody trapped under the rubble could be rescued.
- First look poster of Hrithik Roshan starrer 'Super 30' unveiled
- The film revolves around mathematician Anand Kumar and his famous Super 30 program.
- Richard Madden aka Robb Stark was paid 'f*** all' for 'Game of Thrones' role
- Cuban official denies U.S. allegations of "sonic attacks
- MPK 21
- the primary focus
- To assert his power in DMK, M K Alagiri marches to Karunanidhi SamadhiÂ
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- PHOTO: Northwestern University graduate student Shane Colombo, 25, seen in this undated photo, was shot and killed, Sept. 2, 2018, in Chicago, after he arrived to start school.
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- Raksha Mantri Smt Nirmala Sitharaman and the Defence Minister of Uzbekistan Major General Abdusalom Azizov exchanging memento at South Block, New Delhi on Tuesday, September 04, 2018.
- Raksha Mantri Smt Nirmala Sitharaman receiving the Defence Minister of Uzbekistan Major General Abdusalom Azizov at South Block, New Delhi on Tuesday, September 04, 2018.
- Raksha Mantri Smt Nirmala Sitharaman and the Defence Minister of Uzbekistan Major General Abdusalom Azizov holding delegation level talks at South Block, New Delhi on Tuesday, September 04, 2018.
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- Jammu and Kashmir: Five held for gangrape, murder of 9-year-old
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- Devon Cajuste had two catches against the Lions, but was cut a day later by the Browns.
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- United States District Court Dismisses Derivative Lawsuit Filed Against Aflac
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- B Srinivas Appointed Intelligence Chief Of Jammu And Kashmir Police
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- In a bid to revamp intelligence network in the terrorism-hit state, the Jammu and Kashmir Police Tuesday appointed B
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- Is there a risk building up in lending to micro, small and medium enterprises (MSMEs)? Yes, if you ask Uday Kotak. Asiaâs richest banker surprised analysts in a conference call after Kotak Mahindra Bankâs first quarter results by raising concerns over lending to MSMEs because of faulty valuations of collaterals for these loans. âIf you and I spoke in 2011-12 about project finance and large corporate loans, I was the one who raised concern about fundamental credit worthiness of some of these large project finance loans. I am today raising similar concerns over fundamental role of collateral valuers and the real truth of those valuations⦠I believe there is a reasonable reason to believe that there is significant overvaluation of collaterals across the banking and finance industry,â Kotak said.Loans to MSMEs, usually given to small entrepreneurs, have risen in the last four years as both banks and non-banking finance companies (NBFCs) have rushed to fund this sector through their socalled loan against property (LAP) product. It took land and property as the mortgaged assets for loans. It is the valuation of these assets that is being questioned by the billionaire banker.Latest data from credit information bureau Cibil-Transunion show that loans to MSMEs by banks and NBFCs increased to Rs 12.60 lakh crore in March 2018, from Rs 7.06 lakh crore in March 2014. It now constitutes 23 per cent of corporate loans, up from 21 per cent four years ago.However, even as exposure to the sector has risen, so have the nonperforming assets (NPAs). Micro enterprises that Cibil defines with loan exposure of less than Rs 1 crore have seen a jump in NPAs to 8.8 per cent in March 2018 from 7.7 per cent in March 2014. For SMEs, the jump in NPAs is sharper to 11.2 per cent of loans in March 2018 from 7.9 per cent in March 2014.Analysts say the risks in MSME lending highlighted by Kotak are not new as the sector by its very entrepreneurial nature is prone to volatility linked to the economy, changing business dynamics and risks in promoter-linked businesses.âWe have been highlighting over the last two years the risks building up in the loan against property segment,â said Udit Kariwala, analyst at India Ratings.
- ET Intelligence Group: When ITC opened its first hotel in Chennai â" the ITC Welcomgroup Hotel Chola â" in 1975, it was the companyâs first step towards reducing its dependence on the tobacco business. Since then, the company has forayed into several unrelated businesses such as NBFC, FMCG, IT, paper, agri and retail as part of its diversification plan. The irony is that the investments that were made to reduce reliance on the core business are now dependent on its profit to sustain and grow.Itâs been almost five decades since ITC took its first step towards diversification, yet 85 per cent of the companyâs profit still comes from the cigarette business, and a chunk of that goes into funding other businesses. For instance, the capital employed at the end of FY18 in the cigarette business was Rs 3,750 crore, while Rs 21,300 crore was pumped into other businesses. The company has said it will continue to invest in these businesses. In fact, recently it also announced its plan to enter the healthcare space.
- If the US dollar climbs, base and precious metals prices may fall but crude prices likely remain immune, David Lennox, Resource Analyst, Fat Prophets, tells ET Now.Edited excerpts:What explains this rebound coming in crude prices? Brent is already at $79 plus levels and who knows we will be back to $80 soon?Certainly. If we look at Brent, we are now drawing close to the point in time when we will see Iran go under sanctions and when that happens. the markets will see something like 2 million barrels of oil coming out of the supply chain. If that is the case, like over the last few trading periods, we can expect oil price to rise. However, on the demand side, we are seeing some weakness in the US with gasoline demand dropping below 2017 demand at somewhere around 10.2 million barrels compared to 10.6 million barrels last year. That is certainly keeping pressure on the rallies from being sustainable though overall, one would have to suggest that the markets are watching very closely for any supply disruptions. When we see those disruptions or forecasts of disruptions, Brent prices rally accordingly.There is a trade war in the world and demand could get impacted and economies could remain under stress. That explains why commodity prices have come down of late but crude is singing a different tune. For crude, people are not focussing on demand, everybody is focussing on supply. If the world slows down, will that have an impact on demand also?Certainly yes. In 2017, China imported about 8.4 million barrels of oil per day and the US imported 7.9 million per day. In case of a trade war, we would see impact on growth towards the end of 2019. However, in the nearer term, we are expecting demand to remain relatively stable for both those countries. Then there is India which at the moment imports about 4.4 million barrels. We are expecting demand to surge as the country continues to enjoy a considerable growth spurt.Historically, we have seen how crude oil prices have gone up but dollar value or dollar index has not shown much of strength. This time, it seems to be slightly different. How are you reading the strength both in commodities as well as crude oil price and the dollar index? What would be the implications on the global economy at large?The dollar index has been rising generally throughout the course of 2018 and it has had very little impact on the oil price. The oil price fluctuation has a fair bit to do with the logistics chain of oil. It goes from ground to consumer in a very quick time and that does not allow the currency impacts to have any major effect. Overall, if the US dollar climbs, we would expect to see commodity prices in terms of base and precious metals falling, but we do expect to see the crude prices remain immune from that impact.
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