US-based consulting firm Mercer on Monday announced the appointment of Siddhartha Gupta as its India President. 

Gupta brings a wealth of experience and expertise to this role, having most recently served as Mercer Mettl’s Chief Executive Officer.

“I am excited to take on this role and lead efforts to further strengthen Mercer’s position as a trusted partner for organisations seeking to unlock their workforces’ full potential. Together with the talented teams at Mercer, I look forward to continuing to deliver exceptional value to our clients,” Gupta said in a statement.

Gupta will be reporting to Sanjay Kedia, Marsh McLennan’s India Chief Executive Officer, and will join the leadership teams for Marsh McLennan in India and Mercer in the India, Middle East and Africa Region, the company said.

“Under Siddhartha’s leadership, Mercer Mettl, our international talent assessment arm, has achieved remarkable growth, becoming the largest online assessment entity in India and one of the world’s fastest-growing HR and Ed-tech startups,” Kedia said.

“With his proven track record of success and deep understanding of the talent landscape, he is poised to drive innovation and propel Mercer’s success in India,” he added. AGENCIES

 The ascension of the Labour government has injected rare impetus into Britain’s capital market.

On Friday, the first day of the newly-elected Labour government, the domestically-focused FTSE 250 index rose by 0.86 per cent and the country’s 10-year bond yield dipped by 0.8 percentage points, reports Xinhua news agency.

The GDP for the first quarter this year increased by 0.6 per cent, and the annual Consumer Prices Index rose by 2 per cent in May, aligning with the anticipated interest rate cut by Bank of England.

The Labour government inherited a comparatively strong economy. However, it also faced an economy with significant inertia. There remains a large gap between the current productivity rate and pre-pandemic levels, and investment rates are low compared to other developed countries. The Labour government faces substantial challenges in revitalising the economy.

Low Investment

Data from the Economics Observatory showed that the overall investment rate in Britain fell from a high of around 23 per cent of the GDP in the late 1980s, to around 17 per cent from 2000 onwards. In contrast, investment rates among its peers in G7 countries remained largely between 20 and 25 per cent.

The primary focus for the new Labour government should be on investment, Tim Besley, Professor of Economics and Political Science at London School of Economics and Political Science (LSE), told Xinhua.

“When you talk with economic heavyweights or entrepreneurs, they will tell you that it’s very hard to see the strategic direction of the UK economy and the institutional framework that will deliver economic targets,” said Besley.

However, it may take time for Labour to form a coherent industrial strategy and plan.

Steve Nolan, senior lecturer in economics at Liverpool John Moores University, said that the Labour Party fought a cautious campaign and their future economic plans are fairly slim.

Infrastructure could be a key area for attracting investments. The Labour government is set to establish a National Infrastructure and Service Transformation Authority, which will focus on infrastructure delivery and play a critical role in setting the path for development.

“If it’s structured right, there is potential for the UK to address the low level of investment,” said Besley.

Tax Rate

Tax policy has been a contentious issue during Britain’s general election campaign, with former Prime Minister Rishi Sunak repeatedly pressing then-Labour leader Keir Starmer to clarify his stance.

In response, the Labour Party pledged not to increase income tax, national insurance, and value-added taxes.

Iain Begg, a professorial research fellow at LSE, told Xinhua that Labour has “tied their own hands by restraining from raising taxes.”

“If you don’t raise taxes, then the debt level will become a constraint,” said Begg.

Begg noted that the public debt level in Britain is nearly 100 per cent of the GDP, in addition to a significant fiscal deficit. The Labour government should be very careful with public finances to avoid the pitfalls of former Prime Minister Liz Truss, whose policies, including substantial borrowing while maintaining low tax rates, rattled the financial markets.

“The Labour solution is to try to raise growth. Higher growth means the same level of debt comes out as a lower ratio of debt to GDP, and the Labour is hoping that they can achieve this through regulatory interventions rather than public spending,” said Begg.

International Trade

The Financial Times reported last year that the Department for Business and Trade revealed a 27 per cent decrease in foreign direct investment projects in Britain for the year ending in March 2023, compared to the period from 2016 to 2017.

Besley believes it is important to provide a framework and conditions that carefully choreograph plans and strategic government support for investors.

John Bryson, chair in Enterprise and Economic Geography at the University of Birmingham, told Xinhua: “What the Labour government needs to do over the next five years is to ensure that relations with China, the US, and the EU are appropriate, positive, and constructive.”

“These relationships must be constructive if the UK economy is to grow,” Bryson said. AGENCIES

 The Ministry of Commerce and Industry announced on Monday that the application window for the production-linked incentive (PLI) scheme for white goods (ACs and LED Lights) is being reopened “based on the appetite of the industry to invest more under the scheme.”

The ministry said this was an outcome of the growing market and confidence generated due to the manufacturing of key components of ACs and LED Lights in India under the PLI scheme for white goods.

The application window is being opened on the same terms & conditions stipulated in the PLI white goods scheme notified on April 16, 2021, and the guidelines issued on June 4, 2021, as amended from time to time, the ministry said in a statement.

The application window for the scheme will remain open for the period from July 15, 2024, to October 12, 2024 (inclusive) on the same online portal having the URL as https://pliwhitegoods.ifciltd.com/. No application will be accepted after the closure of the window, the statement added.

In order to avoid any discrimination, both new applicants as well as existing beneficiaries of the PLI white goods scheme who propose to invest more by way of switching over to a higher target segment or their group companies applying under different target segments would be eligible to apply subject to fulfilling the eligibility conditions and adhering to the investment schedule as mentioned in the guidelines of the scheme.

The applicant approved in the proposed third round would be eligible for PLI for a maximum period of three years only in the case of new applicants and existing beneficiaries opting for an investment period up to March 2023 seeking to move to a higher investment category. Existing beneficiaries opting for an investment period up to March 2022 seeking to move to a higher investment category in the proposed third round would be eligible for PLI for a maximum of two years only.

Existing beneficiaries opting for the above, in case they are not able to achieve the threshold investment or sales in a given year, will be eligible to submit the claims as per their original investment plan. However, this flexibility will be provided only once during the scheme period.

Further, to maintain liquidity in the business, better working capital management, and enhance the operational efficiency of beneficiaries, it has been decided to introduce the system of quarterly claims processing of PLI in place of processing of claims on an annual basis. Necessary amendments are incorporated in the Scheme Guidelines to clarify the above.

So far, 66 applicants with committed investments of Rs 6,962 crore have been selected as beneficiaries under the PLI scheme. Daikin, Voltas, Hindalco, Amber, PG Technoplast, Epack, Mettube, LG, Blue Star, Johnson Hitachi, Panasonic, Haier, Midea, Havells and Lucas, are among the companies manufacturing components of Air conditioners (ACs).

Similarly, in manufacturing components of LED lights, companies like Dixon, RK Lighting, Crompton Greaves, Stove Kraft, Chenfeng, Luker and Fulham etc, have invested. These investments will lead to the manufacturing of components of Air Conditioners and LED Lights across the complete value chain including components which are not manufactured in India presently with sufficient quantity.

The Union Cabinet had given approval for the PLI Scheme for White Goods for the manufacture of components and sub-assemblies of Air Conditioners (ACs) and LED Lights on April 7, 2021, as part of Prime Minister Narendra Modi’s ‘Atmanirbhar Bharat’ drive to bring manufacturing at the centre stage and emphasise its significance in driving India’s growth and creating jobs. The Scheme is to be implemented over a seven-year period, from FY 2021-22 to FY 2028-29 and has an outlay of Rs 6,238 crore. AGENCIES

Signalling a normal monsoon ahead, The cumulative rainfall reached 1 per cent above the long-term average (as on July 6) while weekly rainfall (as on July 3) was 32 per cent above the long-term average in the country, a report showed on Monday.

Spatial divergence has reduced with most of the country receiving healthy rains during the last week.

North and West India (3 per cent), Central India (-6 per cent), East and North East India (0 per cent ), and the southern peninsula (13 per cent) have now all had normal rains so far, according to the report by Emkay Global Financial Services.

“With June having ended in deficit, it is imperative that July sees healthy rainfall and the month has begun on a promising note,” said Madhavi Arora, Lead Economist, Emkay Global Financial Services.

While sowing was delayed, it has now picked up and is better than last year.

“Total area under sowing (24.1 million hectare), as on June 28, is sharply higher (33 per cent YoY) than last year. This is mainly due to accelerated sowing of pulses and oilseeds,” the report noted.

Rice sowing area is the same as last year thus far whereas sugarcane is better. Among non-food crops, cotton sowing is much higher.

Overall area under sowing is at 22 per cent of normal area sown, compared with 18.6 per cent at the same point in 2023.

“July is extremely important in this regard with nearly 80 per cent of sowing activity completed by the end of the month,” said Arora. AGENCIES

LG Energy Solution Ltd (LGES), South Korea’s leading battery maker, said on Monday its second-quarter operating profit plunged 58 per cent from a year earlier due to slowing sales of electric vehicles.

Operating profit for the three months ended in June is estimated to have plummeted to 195.3 billion won ($142 million) from 460.6 billion won in the same period of last year, LGES said in a statement.

“Decreased lithium and other metal prices weighed on EV battery prices, and lower demand from automakers resulted in the decline in profit,” the statement said, reports Yonhap news agency.

Sales are projected to fall 30 percent to 6.16 trillion won from 8.77 trillion won during the cited period.

The final earnings figures will be released July 25, the company said.

LEGS sees the global EV markets in a stagnation phase, known as the “chasm,” which occurs before the widespread adoption of EVs.

The company said it will focus on strengthening its competitiveness as a car battery supplier despite the temporary slowdown in EV demand.

Early this month, LGES signed a deal with Renault S.A. to supply lithium iron phosphate (LFP) pouch-type batteries for the French carmaker’s EV models for five years through 2030. AGENCIES

In a bid to help the government towards its net zero emissions target by 2070, Maruti Suzuki India on Monday said it surpassed 2 million cumulative vehicle dispatches using Railways as part of its ‘green logistics’ goals.

The company has rapidly scaled up its vehicle dispatches through Railways from 65,700 units in FY 2014-15 to 447,750 units in FY 2023-24.

The feat makes Maruti Suzuki India’s first automobile company to attain this eco-milestone.

Today, the company dispatches vehicles to 20 destinations, serving over 450 cities using Indian Railways.

“Through our sustained efforts in green logistics, we have achieved outstanding results including cumulative reduction of 10,000 metric tonnes of CO2 emissions and 270 million litres of cumulative fuel savings,” said Hisashi Takeuchi, Managing Director and CEO, Maruti Suzuki India Limited.

With the automaker’s production capacity nearly doubling from about 2 million units to 4 million units by FY2030-31, “we plan to augment the use of Railways in vehicle dispatches, close to 35 per cent over the next 7-8 years,” Takeuchi added.

Earlier this year, under the ‘PM Gati Shakti’ programme, Prime Minister Narendra Modi inaugurated India’s first automobile in-plant railway siding at Maruti Suzuki’s Gujarat facility.

This facility has a capacity to dispatch 300,000 vehicles per annum.

The next in-plant railway siding is in progress at the Manesar facility and will be operational soon, according to the company.

“We stand committed to the government of India’s net zero emissions target by 2070,” Takeuchi added. AGENCIES

 London-based consumer tech brand Nothing on Monday launched a new smartphone under its sub-brand CMF with a 50MP camera in India.

Launched in two variants (6GB+128GB and 8GB+128GB), the new smartphone CMF Phone 1 comes available at a starting price of Rs 15,999.

Along with the smartphone, the company also launched CMF Watch Pro 2 and CMF Buds Pro 2.

“CMF Phone 1, CMF Watch Pro 2, and CMF Buds Pro 2 showcase Nothing’s unique approach to integrating creativity, practicality, and personalisation through design,” said Carl Pei, CEO of Nothing.

“These products further mark our commitment to injecting fun into a boring industry, and I’m very excited to see the market feedback,” he added.

Other than a 50MP rear camera, the smartphone comes with a MediaTek Dimensity 7300 5G processor, a 6.67-inch Super AMOLED display, a 5000 mAh battery, and a 16 MP selfie camera.

It also features a 120 Hz adaptive refresh rate for seamless interactions.

The smartwatch features a 1.32-inch AMOLED always-on display offering high resolution and over 100 watch faces with customisable options.

It supports more than 120 sports modes and automatic recognition of 5 sports. It also provides round-the-clock monitoring of heart rate, blood oxygen saturation (SpO2), and stress levels, according to the company.

Moreover, CMF Buds Pro 2 comes powered by dual drivers, which combine an 11 mm bass driver and a 6 mm tweeter. It offers advanced Hybrid Active Noise Cancellation of up to 50 dB and an expansive frequency range of up to 5000 Hz.

As per the company, the earbuds offer 43 hours of total battery life and a quick 10-minute charge for 7 hours of playback.

The CMF Watch Pro 2 comes at Rs 4,999 in Dark Gray and Ash Gray and at Rs 5,499 in Blue and Orange in — Vegan Leather. CMF Buds Pro 2 are priced at Rs 4,299. AGENCIES

 The Indian benchmark indices ended flat on Monday as the stock markets turned to a consolidation phase due to the absence of major triggers to support the current premium valuation in the near term, prompting investors to book some profits. 

The Sensex closed at 79,960.38 points, or 36.2 points down while the Nifty closed at 24,320, just 3.3 points down.

Top Nifty gainers were ONGC, ITC, HDFC Life, HUL and Tata Consumer Products, while losers were Divis Labs, Titan Company, BPCL, and Shriram Finance.

The BSE midcap and smallcap indices ended marginally lower.

According to market watchers, the earnings season is around the corner, and the initial expectation is subdued. With stable input prices and ongoing price cuts, the period of margin expansion appears to be concluding, which is likely to affect earnings and valuations.

The rupee ended flat at 83.50 per dollar on Monday compared to Friday’s close of 83.49.

According to Aditya Gaggar, Director of Progressive Shares, among the sectors, FMCG and energy were the top performers while PSU banks and metal were the major laggards.

“The Railway segment was the star performer of the day as almost all the counters surged over 5-6 per cent,” he said.

According to analysts, as the market trades near all-time high levels, investors and traders can consider maintaining their positions with appropriate stop-loss orders.

“The Nifty remained range-bound during the day, as market participants appeared to be in no hurry to decide the market’s direction. Support remains at 24,240, and a fall below this level might weaken the strength of the bulls,” said Rupak De from LKP Securities. AGENCIES

 Benchmark equity indices on Monday snapped their three-day winning streak and traded flat in the morning hours.

At pre-open, Nifty was flat at 24329.45 and the Sensex was lower by 0.1 per cent at 79915.00.

Shares of Titan Co fell nearly 4 per cent after it reported subdued growth in the sales of its jewellery segment.

Except capital goods, FMCG and all other sectoral indices traded in the red.

Shares of ICICI Bank, HDFC Bank, Infosys and State Bank of India dragged the Nifty.

Tata Motors, Hindustan Unilever, ITC, Bharti Airtel and Oil & Natural Gas Corp cushioned the fall.

According to market watchers, as the market trades near all-time high levels, investors and traders can consider maintaining their positions with appropriate stop-loss orders.

Positive news flows can impart resilience to the market in the near term, according to them.

“The market will respond to the Q1 results which will start flowing from this week onwards. Financials have the potential to move up further in response to the expected good results,” analysts added.

BSE Midcap and Smallcap indices were marginally higher in the opening trade. AGENCIES

 The global wholesales of Tata Motors Group, including Jaguar Land Rover, reached 3,29,847 vehicles in the April-June quarter of the current fiscal (FY25), up 2 per cent compared to Q1 FY24, the company said on Monday.

Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in Q1 FY25 were at 93,410, higher by 6 per cent over Q1 FY24.

The company recorded global wholesales of passenger vehicles (including electric vehicles) at 138,682, lower by 1 per cent.

Jaguar Land Rover saw 97,755 vehicles being sold, higher by 5 per cent.

“Jaguar wholesales for the quarter were 8,227 vehicles, while Land Rover wholesales for the quarter were 89,528 vehicles,” according to the company.

Meanwhile, Tata Motors’ sales in the domestic and international market for the first quarter of the current fiscal stood at 229,891 vehicles, compared to 226,245 units during Q1 FY24.

“Tata Motors commercial vehicles domestic sales at 87,615 units in Q1 FY25 were 7 per cent higher than Q1 FY24 sales. Additionally, sales in June were 3 per cent higher compared to May 2024,” said Girish Wagh, Executive Director, Tata Motors Ltd. AGENCIES