The benchmark stock indices have opened the day with modest gains after the losses suffered yesterday.
The Centre's agricultural reform bills, which were passed yesterday in Parliament, are attracting strong response.
Join us as we follow the top business news through the day.
Oil rises as Goldman predicts deficit, new storm builds in Gulf
Possible tightness in supply is helping oil prices.
Reuters reports: "Oil prices rose for a fourth straight day on Friday as Goldman Sachs estimated the market is in deficit and a new storm started building in the Gulf of Mexico, putting crude on track for a weekly gain of about 10%.
Brent crude was up 27 cents, or 0.6%, at $43.57 a barrel by 0510 GMT, while U.S. oil futures gained 23 cents, or 0.6%, to $41.20 a barrel.
Both contracts dipped at the start of the day but have risen sharply this week after Hurricane Sally cut U.S. production and OPEC and its allies laid out steps to address market weakness.
Goldman Sachs said in a new report that recent storage on oil tankers of crude for future delivery was “driven by transient inventory allocation dynamics” rather than a rise in global stocks that would suggest the market is oversupplied.
“We estimate that the oil market remains in deficit with speculative positioning now at too low levels,” Goldman Sachs analysts said.
The investment bank predicted the market would be in a deficit of 3 million barrels per day (bpd) by the fourth quarter and reiterated its target for Brent to reach $49 by the end of the year and $65 by the third quarter of next year.
Meanwhile, a tropical depression formed in the western part of the Gulf of Mexico and could become a hurricane in the next few days, potentially threatening more U.S. oil facilities.
The Saudi Arabian energy minister also fired a shot at traders warning them not to bet against the oil market and pledging those who gamble on oil prices would be hurt “like hell.”
Prince Abdulaziz bin Salman, OPEC's most influential minister, made the comments after a virtual meeting of a key panel of OPEC and allies, led by Russia.
The Organization of the Petroleum Exporting Countries (OPEC) and other producers, making up the so-called OPEC+ group, are cutting 7.7 million bpd of output to support prices.
OPEC+ said on Thursday the group will take action on members that are not complying with deep output cuts to support the market following a coronavirus-led slump in fuel demand.
In the Gulf of Mexico, U.S. offshore drillers and exporters began a clearup on Thursday after Hurricane Sally weakened to a depression and started rebooting idle rigs following their closure for five days."
US law firm files class action suit against HDFC Bank for misleading claims
A law firm in the US has filed a class action suit against HDFC Bank, claiming damages for the losses incurred by investors because of “materially false and misleading” representations made by India’s largest private sector lender.
The suit by Rosen Legal specifically names the bank’s managing director and chief executive Aditya Puri, his chosen successor Sashidhar Jagdishan and company secretary Santosh Haldnakar, who are the defendants in the suit, as per a copy of the complaint uploaded on the website.
The complaint did not mention the exact quantum of the damages sought, though it maintained that may be thousands of investors would have suffered. HDFC Bank could not be immediately reached for comment.
As per the suit, bank officials “engaged in a plan, scheme, conspiracy and course of conduct, pursuant to which they knowingly or recklessly engaged in acts, transactions, practices and courses of business which operated as a fraud and deceit”, resulting in the losses to investors.
Bank of England mulls negative interest rates
Petrol demand returns to pre-COVID-19 levels, diesel demand still down
India’s petrol sales rose for the first time in the first half of September since the country’s lockdown in late March, signalling demand may have returned to pre-COVID-19 levels.
Petrol sales between September 1 and 15 rose 2.% year-on-year and were up 7% over the previous month, according to preliminary industry data.
Diesel sales continue to be in negative territory, with demand falling 6% year-on-year. But the demand was 19.3% higher over August 2020.
This is the first time that petrol sales in the world’s third-largest oil importer have risen since the March 25 nationwide lockdown crippled economic activity and sent demand plummeting.
Passage of agri bills to empower farmers: Niti VC
Voices in support of the Centre's farm reform bills.
PTI reports: "Welcoming the passage of two bills related to the farm sector in the Lok Sabha on Thursday, Niti Aayog Vice Chairman Rajiv Kumar said the legislation will empower farmers and have a “colossal impact” on the future of agriculture in the country.
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill and the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill were passed by voice vote, even as the Congress, DMK and Revolutionary Socialist Party members staged a walkout.
“The Lok Sabha passes Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 & The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020 - historic day!,” Kumar said in a series of tweets.
He further said the legislation will not only empower but also create a fair and free ecosystem for farmers and traders alike, thereby fostering a spirit of friendly competition and improving trader transparency.
For the first time, he said, farmers can proudly sell directly from their farms, igniting in them a sense of entrepreneurial freedom without the risk of trader exploitation.
“The Bills passed today will have colossal impact on future of agriculture in our country,” Kumar noted.
Niti Aayog member Ramesh Chand said the legislations will transform the destiny of farmers.
“A historical day for Indian agriculture as Lok Sabha passed 2 farming bills. This will lay foundation for changing destiny of farmers towards prosperity and take India on path to become global power in agriculture,” Chand tweeted.
Another bill related to the farm sector, the Essential Commodities (Amendment) Bill, was passed on Tuesday.
These three bills will replace ordinances promulgated by the government earlier."
‘MSMEs used tech to survive lockdown’
Information Technology (IT) infrastructure helped businesses tide over the challenges arising from the lockdown, Tally Solutions said in a report.
According to a study it conducted, about 94% of MSMEs in India had adopted technology to stay afloat in the last few months.
About 67% of respondents in western India adopted full-fledged IT infrastructure in their businesses post-lockdown, compared with just 29% during the lockdown. Similarly, 60% respondents from the south had adopted complete IT infrastructure, the study found.
Sensex rises nearly 200 points in early trade; Nifty tops 11,550
A good start to the morning for stocks after yesterday's losses.
PTI reports: "Domestic equity benchmark Sensex jumped nearly 200 points in early trade on Friday tracking gains in index majors TCS, Reliance Industries and Sun Pharma amid positive cues from Asian peers.
The 30-share BSE index was trading 186.37 points or 0.48 per cent higher at 39,166.22; while the NSE Nifty rose 62.70 points or 0.54 per cent to 11,578.80.
Sun Pharma was the top gainer in the Sensex pack, rising around 3 per cent, followed by Tech Mahindra, Tata Steel, TCS, Titan, PowerGrid, NTPC, Reliance Industries and Asian Paints.
On the other hand, HUL, Bajaj Auto, Maruti and Nestle India were among the laggards.
In the previous session, Sensex ended 323 points or 0.82 per cent lower at 38,979.85, while Nifty fell 88.45 points or 0.76 per cent to 11,516.10.
Meanwhile, exchange data showed that foreign institutional investors sold equities worth Rs 249.82 crore on a net basis on Thursday.
According to traders, positive start in Asian equities nudged domestic stocks higher.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with gains in mid-day deals.
However, stock exchanges on Wall Street ended on a negative note in overnight trade.
Meanwhile, global oil benchmark Brent crude was trading 0.46 per cent higher at USD 43.50 per barrel."
Vistara offers Wi-Fi on-board
Vistara has become the first Indian airline to introduce Wi-Fi connectivity on its flights to London.
To begin with, the service will be available only on-board the two Boeing 787-9 aircraft in a fleet of 43 planes. Vistara uses the aircraft to provide connections to London.
Vistara said it would soon introduce the service on the aircraft it uses to connect domestic and short-haul international routes — the Airbus A321neo.
The move follows the decision taken by the Department of Telecommunications in 2018 to allow Wi-Fi in the Indian airspace.