The benchmark stock indices opened the day on a positive note but soon pare gains despite the gains in the US indices overnight.
The forex and money markets are closed today on the occasion of Id-E-Milad.
Join us as we follow the top business news through the day.
Online education startup Udemy in talks to raise $100 million in funding: sources
Online learning platform Udemy is in advanced talks to raise around $100 million in a new private funding round that will value the online learning platform at over $3 billion, according to people familiar with the matter.
San Francisco-based Udemy has seen a boost in subscriptions this year as more people have stayed at home and opted for online learning due to the COVID-19 pandemic.
The fresh capital would follow the $50 million Udemy raised in a Series E round from Japanese publisher Benesse Holdings at a valuation of $2 billion in February.
Edtech companies have seen faster and wider adoptions as more people switch to remote learning due to restrictions during the pandemic. Private funding in the sector has surpassed 2019 levels, with over $4.8 billion raised by August 2020, according to CB Insights.
Vodafone Idea shares jump over 7% after Q2 earnings
Signs of recovery at the troubled telecom firm has enthused investors.
PTI reports: "Shares of Vodafone Idea on Friday gained over 7 per cent after the company reported significant narrowing of losses to about Rs 7,218 crore for the September quarter, and said signs of recovery were visible with gradual improvement in economic activities.
The stock rose by 6.44 per cent to Rs 8.92 on the BSE.
On the NSE, it jumped 7.18 per cent to Rs 8.95.
The company’s losses in Q2 FY20 had been at a staggering Rs 50,921.9 crore after it provisioned for Supreme Court mandated statutory dues.
The gross revenue for the quarter ended September 30, 2020, came in at about Rs 10,791 crore, marginally lower than the same period of the previous year.
The revenue was, however, 1.2 per cent higher when compared sequentially, and the company noted that the impact of the nationwide COVID-19 lockdown has gradually started to ease.
Realisation measured in average revenue per user (ARPU) -- a key metric for telecom firms -- improved to Rs 119 in Q2 FY21 from Rs 114 in the June quarter.
Its Q2 loss at Rs 7,218.2 crore was lower even on a quarter-on-quarter basis.
The results came after market hours on Thursday."
Interest-on-interest waiver: Crop, tractor loans not part of ex-gratia relief scheme
An important clarification coming from the Finance Ministry.
PTI reports: "Agriculture and allied activity loans are not eligible for the interest on interest waiver announced by the government last week, the finance ministry has clarified.
Issuing additional frequently asked questions (FAQs) on the ‘scheme for grant of ex-gratia payment of difference between compound interest and simple interest’, it said credit card dues outstanding as on February 29 would be considered for giving relief to the borrowers.
The benchmark rate applicable for such relief would be the contract rate, which is used by the credit card issuers for the purpose of EMI loans, it added.
Crop and tractor loans come under agriculture and allied activities loans and are not part of the eight segments or classes eligible under the scheme, it added.
The relief shall cover the following segments -- MSME loans, education loans, housing loans, consumer durable loans, credit card dues, automobile loans, personal loans to professionals and consumption loans, according to the FAQs released by the ministry earlier on Wednesday.
The Reserve Bank had on Tuesday asked all lending institutions, including non-banking financial companies, to ensure that the scheme of waiver of interest on interest for loans up to Rs 2 crore for the six-month moratorium period is implemented by November 5, as decided by the government.
Last Friday, the government had announced the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts.
Loan accounts with sanctioned limits and outstanding not exceeding Rs 2 crore (aggregate of all facilities with all the lending institutions) will be eligible and such accounts should be standard in the books of the lending institutions as on cut off date of February 29, 2020.
The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said.
The ex-gratia relief will be credited to the account of all eligible borrowers without any requirement to apply, it said.
As per the scheme, the lending institutions shall credit the difference between compound interest and simple interest with regard to the eligible borrowers in respective accounts for the said period irrespective of whether the borrower fully or partially availed the moratorium on repayment of loan announced by the RBI on March 27, 2020.
The scheme is also applicable on those who have not availed the moratorium scheme and continued with the repayment of loans.
The scheme, which was announced as per the direction of the Supreme Court, is likely to cost the exchequer Rs 6,500 crore."
Volatility of volatility spikes
Apple’s late iPhone launch temporarily wiped $100 billion off its stock value
The late launch of new 5G phones caused Apple Inc's customers to put off buying new devices, leading the company on Thursday to report the steepest quarterly drop in iPhone sales in two years.
Apple fell over 5% at one point in after-hours trade, wiping $100 billion from its stock market value.
Since 2013, Apple has delivered new iPhones each September like clockwork. But pandemic-induced delays pushed the announcement back a month, with some devices still yet to ship.
Even as booming sales of Macs and AirPods boosted overall revenue and profit above what analysts had expected, iPhone sales dropped 20.7% to $26.4 billion.
Vodafone Idea Q2 loss narrows to ₹7,218 crore
Debt-ridden telecom firm Vodafone Idea on October 30 reported the narrowing of its consolidated loss to ₹7,218.2 crore for the quarter that ended September 2020.
Total income declined by about 3% to ₹10,830.5 crore during the reported quarter, from ₹11,146.4 crore in the corresponding period of 2019-20.
Vodafone Idea MD and CEO Ravinder Takkar said while challenges related to COVID-19 continue, the second quarter has shown signs of recovery with a gradual improvement in economic activities.
“We are executing on our strategy and our cost optimisation exercise has already started to yield incremental savings. We have also initiated a fund raising exercise to support our strategic intent. Further, we continue to interact with the government seeking long term solutions to the critical challenges, which the industry faces,” Mr. Takkar said.
Shares rise as IOC, Reliance gain ahead of earnings
Shares opened the day with gains this morning after yesterday's losses.
Reuters reports: "Indian shares rose on Friday as heavyweight stocks Indian Oil Corp and Reliance Industries gained on expectations of strong earnings, with the real estate sector also supporting the market.
The NSE Nifty 50 index advanced 0.52% to 11,732.25 by 0500 GMT, while the S&P BSE Sensex was up 0.43% at 39,919.34.
The indexes were on track for their best monthly performance since July, but were set to finish the week lower on worries over the pace of global economic recovery as major European nations impose fresh lockdowns to combat surging coronavirus cases.
Refiner Indian Oil Corp advanced nearly 4% on Friday and oil-to-telecoms conglomerate Reliance Industries rose 1.14% ahead of quarterly results due later in the day, with smaller rival Bharat Petroleum Corp's (BPCL) strong earnings on Thursday lifting sentiment.
“The expectation is that the oil companies will maintain their overall refining margins, because the demand was sound during the quarter,” said Ajit Mishra, vice president of research at Religare Broking Ltd in Mumbai.
“Oil marketing companies were also under pressure for a while and there is a rebound being seen in those stocks.”
BPCL shares firmed 3% after it reported a higher quarterly profit and the company's executives said it would exceed their capital expenditure target for the full year.
Real estate developer Godrej Properties gained as much as 4.9%, helping the Nifty realty index rise 2.5%.
Brokerage Jefferies said in a note on Thursday property registrations in the country's financial hub Mumbai and the capital New Delhi were at 12- and 22-month highs, respectively, and maintained its optimistic outlook for the sector.
The Nifty metals index and the Nifty IT index advanced 1.8% and 1.3%, respectively.
India's top carmaker, Maruti Suzuki, fell 1.6% after its quarterly profit missed estimates on Thursday."
Centre relaxes Air India sale terms yet again
The Centre on Thursday revised bidding parameters for 100% stake sale in Air India, allowing private players to quote an enterprise value (EV) for the airline.
Before taking the decision, the government also contemplated on shutting down the airline due to failure in attracting buyers for the disinvestment process, which was first undertaken in 2018.
This is the government’s third effort to woo buyers. After tasting defeat in 2018, in January this year, the government floated a second proposal to sell the airline, offering to exit the airline completely and waive nearly half the debt — ₹29,000 crore of the total ₹60,000 crore debt. It had offered its entire stake in Air India, its low-cost international arm Air India Express, and ground handling arm AISATS.
“There has been a total change in the aviation environment and a large number of airlines are struggling,” Secretary of Ministry of Civil Aviation P.S. Kharola said at a press conference.