Business Bulletin Weekly 05 June 2023
Welcome to the Business Bulletin! Let's dive into the latest news.
TCS Issues Ultimatum:
Employees Must Come to Office or Face Strict Action! Tata Consultancy Services (TCS) has issued a warning to its employees who fail to meet assigned deadlines. The memo states that employees must be present in the office for at least 12 days every month, and strict action will be taken against those who do not comply. Previously, the company had instructed employees to be present for a minimum of three days. TCS aims to create an energetic atmosphere on its campuses.
The decline in Unemployment:
Significant Drop in Joblessness in Indian Cities Data reveals a reduction in unemployment among individuals aged 15 and above in Indian cities. In January-March 2023, the unemployment rate dropped to 6.8%, compared to 8.2% in the previous year. Both male and female unemployment rates have shown improvement, with a decrease in the number of jobless individuals.
Go First Takes Bold Step:
Salary Hike for Captains and First Officers Go First, an insolvent budget carrier, has announced salary hikes for its captains and first officers. The airline is conducting walk-in interviews for pilots from Air India, aiming to retain its existing pilots. Starting from June 1, captains will receive an additional retention allowance of INR 1 lakh per month, while first officers will receive an extra INR 50,000. This offer is also applicable to pilots who have resigned but wish to rejoin. Go First is considering providing a longevity bonus to employees who remain with the company for an extended period.
India's GDP Grows by 7.2% in FY2023
India's GDP Grows by 7.2% in FY2023 Becoming the Fastest Growing Economy India's GDP grew by 7.2% in the financial year 2023, making it one of the fastest-growing economies. The real GDP reached INR 160.06 lakh crore at constant prices, compared to INR 149.26 lakh crore in the previous year. Despite challenges such as inflation and geopolitical tensions, India has maintained its growth rate, while countries like China only achieved 3% growth in 2022. However, the growth rate of 7.2% for this year is lower than the previous year's 9.1%. It is estimated that GDP may decrease to 6% or 5.5% in the upcoming financial year, FY2024.
Indian IT Companies Brace for Revenue Slowdown
Job Market Takes a Hit According to domestic rating agency ICRA, Indian IT companies are expected to experience a slowdown in revenue growth. This slowdown is likely to impact employment opportunities, with companies keeping their workforce at lower levels. As per a report by NASSCOM, the sector's growth has declined by 8.4% compared to the previous fiscal year. ICRA predicts that Indian IT companies' revenue growth will remain in the mid-single digits in USD terms for FY2024. The banking, financial services, and insurance sectors have also witnessed reduced growth. ICRA states that the macroeconomic challenges have led to a slowdown in growth momentum in the US and Europe. Although operating profit margins are expected to remain stable, revenue growth is likely to slow down.
Sensex and Nifty Slide Despite Global Mixed Trend
Indian GDP Beats Expectations Sensex and Nifty witnessed fluctuations but ultimately closed higher. The buying interest was observed in metal, telecom, and auto stocks. Automakers reported strong buying in passenger vehicles, and increased GST collections in May further fueled optimism. Tata Steel saw the highest gains of around 2%. However, stocks of Infosys, Wipro, HCL Technologies, TCS, IndusInd Bank, Tech Mahindra, Reliance, and Bajaj Finance remained weak. Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, closed in the red, while European and US markets remained positive. GST collections in May increased by 12% to INR 1.57 lakh crore. Brent crude reached $75.57 per barrel. Foreign institutional investors sold shares worth INR 71.07 crore. The rupee appreciated against the dollar, while Sensex and Nifty ended lower the following day.
Indian Automobile Companies Witness Steady Growth in Passenger Vehicle Sales In May
Indian automobile companies experienced significant growth in the wholesale of passenger vehicles. Maruti Suzuki witnessed a 15% increase in sales, Hyundai saw a 14.91% growth, and Tata Motors reported a 6% increase. Mahindra & Mahindra also showed a growth of 23%, while Toyota sold the highest number of units at 20,410. MG Motor India recorded a growth of 25%. These numbers indicate a continued rise in the demand for SUVs, suggesting a positive trend for the automobile industry.