Top Stories | Meet UK's new PM, Bajaj Auto's CNG bike, Make In India milestone, PM Modi's Russia visit, and more
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There’s no dearth of headlines this Friday as we head into the weekend. The big global development is: Keir Starmer enters into the 10 Downing Street after Labour's big win in the UK. He's talking about a 'bigger reset' and reducing all the noise. Here in New Delhi, everyone's talking about the bilateral Free Trade Agreement (FTA) again.
Closer at home, Bajaj Auto has rolled out a new CNG-powered bike priced under Rs 1 lakh and is gearing up for a showdown with market leader Hero Moto. And that's not all in the auto world. Mahindra and Volkswagen are thinking about teaming up to make electric vehicles. The 'Make-in-India' received a huge boost with India's defence sector hitting a record high of Rs 1.27 lakh crore in FY24 with both Prime Minister Modi and Defence Minister Rajnath Singh lauding the milestone. And speaking of PM Modi, he's heading to Russia next week for the first time since invasion of Ukraine.
1. Labour Party's Keir Starmer is the new UK Prime Minister; vows 'change' in first speech
Keir Starmer officially became the new Prime Minister of the United Kingdom following a decisive victory for the Labour Party in the general elections. As Labour crossed the halfway mark of 650 constituencies to clinch the minimum 326 required for a majority in Parliament, Starmer stepped up to make his victory speech in London just hours away from formally becoming the new Prime Minister of the United Kingdom.The 61-year-old leader, accompanied by his wife Victoria Starmer, arrived at Buckingham Palace, for an audience with King Charles III, marking the formal beginning of his tenure.
Speaking outside 10 Downing Street, Starmer pledged to lead a "government of service" on a mission of national renewal and promised, "Brick by brick we will rebuild the infrastructure of opportunity.
Earlier in the day, Rishi Sunak, 44, resigned from his position as Prime Minister after conceding defeat with the Conservative Party suffering its worst electoral setback in history. "I am sorry" said outgoing PM Sunak and congratulated Labour Party head Keir Starmer on the victory.
Starmer's Labour Party secured a resounding victory, gaining over 200 seats in Parliament.
Catch CNBC-TV18’s LIVE Coverage of it.
So, what's next for new British PM Keir Starmer? Read here
2. 'Tiger Zinda Hai' | Bajaj Auto aims 70% market share with new CNG bike, has this message for Hero
On Friday, Bajaj Auto launched the world's first CNG motorcycle, 'Freedom 125', marking a significant milestone for the company. Rajiv Bajaj, Managing Director of Bajaj Auto, emphasised the bike's reliability and sent a bold "Tiger Zinda Hai" message to its rival Hero MotoCorp.
Bajaj described the launch as a "game-changing day," expressing a desire to surpass Hero Honda, reminiscing about a past rivalry. He said, "We want to return the favour to Hero Honda from 1997. That was the year when Hero Honda had overtaken Bajaj Auto. Today, the message with the Freedom bike is "Tiger Zinda Hai."
3. Relief for industry as govt cracks down on GST demand notices
In a major relief for the industry and GST taxpayers in the country, the government has decided to send any GST demand notices to the taxpayers, only once there is approval from the North Block. According to official sources, "The Directorate General of GST Intelligence (DGGI) can not send any tax demand notices where it is an interpretation or a classification matter, without the approval of the policy wing under the Central Board of Indirect Taxes and Customs (CBIC)."
DGGI is the central intelligence agency of CBIC, which keeps a close vigil on tax dues, tax unpaid, tax evasion and misreporting of taxes, under the GST regime.
GST relief for foreign shipping companies, airlines, and MNCs | Exclusive
Sources have revealed to CNBC-TV18 that foreign shipping companies, airlines, and multinational corporations (MNCs) are set to receive significant relief following a recent GST notification.
This development will render the Directorate General of GST Intelligence (DGGI) notices to these sectors null and void.
4. India's annual defence production hits record of about ₹1.27 lakh crore in 2023-24
Highlighting its commitment to achieving 'Aatmanirbharta,' the Ministry of Defence announced a record for defence production in the fiscal year 2023-24. As per data from all Defence Public Sector undertakings (DPSUs), other PSUs manufacturing defence items and private companies, the country's annual defence production value rose to ₹1,26,887 crore. This translated to a growth of 16.7% over the defence production of the previous financial year and an increase of 60% since 2019-20.
5. Nifty below 24,300, Sensex falls 220 points; HDFC Bank, Titan, M&M top losers
The broader NSE benchmark Nifty advanced further to settle at an all-time high for the third straight session on Friday (July 5), while the BSE gauge Sensex retreated from the record to slip below the 80k level. The broader NSE Nifty rose 21.70 points or 0.09% to close at its lifetime high of 24,323.85. The 30-share BSE Sensex dropped 53.07 points or 0.07% to settle at 79,996.60.
Among the 30-share Sensex pack, State Bank of India, Reliance Industries, Hindustan Unilever, NTPC, Larsen & Toubro, Nestle India, Power Grid, ITC, JSW Steel and Sun Pharmaceuticals were the major gainers. On the other hand, HDFC Bank, Titan, Mahindra & Mahindra, IndusInd Bank, UltraTech Cement, Tata Motors, HCL Technologies and Asian Paints were among the laggards.
6. US fiscal situation manageable, interest rates may remain higher for longer: IMF chief economist
The US may experience slower disinflation compared to last year, potentially leading to a delayed easing cycle. As a result, US interest rates could remain elevated for a longer period, exerting pressure on other currencies, said International Monetary Fund's (IMF's) Chief Economist Pierre-Olivier Gourinchas in an exclusive interaction with CNBC-TV18.
This scenario is likely to cause capital flows out of various countries into the US, impacting the global economy. "The US is not in any situation where its fiscal situation cannot be handled, it has a lot of room for adjusting, but some of the adjustment would be welcome at this point," he said.
7. PM Modi to meet President Putin for the first time since Russia invaded Ukraine
The Kremlin announced on Thursday, July 4, that the Indian Prime Minister Narendra Modi will embark on a two-day visit to Russia, starting Monday, July 8. During his visit, Modi will hold talks with Russian President Vladimir Putin, marking a significant diplomatic engagement between the two nations.
This upcoming visit to Russia will be Modi's first since 2019, when he attended an economic forum in Vladivostok. His last visit to Moscow was in 2015. President Putin and Modi last met in September 2022 at the SCO summit in Uzbekistan. Notably, Putin visited New Delhi in 2021 for direct talks with Modi.
8. NEET PG 2024: Revised exam date announced for August 11
The National Board of Examinations in Medical Sciences (NBEMS) on Friday, July 5 announced the revised schedule for the NEET-PG 2024 examination. The exam will be conducted on August 11 in two shifts. Earlier it was set to take place on June 23.
The Ministry of Health and Family Welfare postponed the NEET PG 2024 examination as a precautionary measure while considering the "recent incidents of allegations regarding the integrity of certain competitive examinations".
9. Union Budget 2024: Why a country needs a Budget, and what to expect on the income tax front?
With July already here, all eyes are on Budget 2024 for potential tax reforms aimed at boosting the economy and easing the tax burden on individuals. Although the exact date remains uncertain, expectations are high for significant changes in how taxes are structured.
Accounting company EY (Ernst & Young) anticipates significant reforms under the personal tax regime.
Notaly, a well-planned Budget is one of the most important jobs of any government to achieve economic stability and growth. In India, too, this exercise holds major significance as the Ministry of Finance spends months preparing the Union Budget to allocate resources wisely.
During the making of the Budget, the government looks forward to several aspects like ensuring financial inclusion, strengthening the defence sector, and reducing regional disparities.This year, Union Finance Minister Nirmala Sitharaman is expected to table the Budget 2024-25 in Parliament in the latter half of July. Earlier this year, an Interim Budget was presented on February 1, ahead of the 2024 Lok Sabha elections.
So, why is it important for any government -- central or state -- to have a Budget?
10. Q1 Business Updates
Titan's Q1 Business Update: High gold prices suppress demand
Titan Company Ltd. reported that the 20% year-on-year increase in gold prices has significantly dampened consumer demand for jewellery, maintaining a muted market sentiment. Titan was downgraded by Kotak Institutional Equities on Friday, citing an unfavourable risk-reward, despite the stock having declined 11% so far in 2024.
Dabur India projects mid to high single-digit Q1 revenue growth
Dabur India anticipates mid to high single-digit growth in its consolidated revenue for the first quarter, driven by a recovery in rural demand and positive macroeconomic indicators. The company noted that the onset of a normal monsoon season is expected to further support this growth in the coming months.
Marico's Q1 Business Update: 'Modest' volume growth and expanding gross margins
Marico Ltd. forecasts modest volume growth in its domestic market for Q1FY25, with sequential improvements from the previous quarter. The company also expects consolidated revenue growth to increase, supported by higher domestic volumes and favorable pricing in key segments, which are likely to enhance gross margins.
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