Companies & Sectors
Reliance Jio tests nothing but commercial operations: COAI
Existing operators shot off another letter to the government on Monday and said 2.5 million users for Reliance Jio constituted a commercial launch, seeking to counter the company's claim that it is testing its network now to offer superior quality services later.
 
Under the umbrella of Cellular Operators' Association of India (COAI), the letter addressed to Nripendra Misra, Principal Secretary to the Prime Minister, alleged the government, in the process, was also losing revenue.
 
It said the data generated by Jio is rivalling the combined traffic of the rest of the operators who have been in operation for 15-20 years. Under the name of LYF (Jio brand for handsets), the company is using spectrum allocated for commercial use yet not yielding any revenue and consequently no share to the government.
 
Talking about the bundle offerings by Jio, COAI said: "Such bundled sale and purchase have not been to a few hundred, but to millions of customers, across thousands of cities, fetching hundreds of crores of rupees, making them large scale nationwide commercial operations going on for months."
 
Reliance Jio on Aug 18 has strongly refuted the claims of the COAI that its members are providing sufficient inter-connection points for its 4G services, saying the reality was that such access was grossly inadequate.
 
The reaction follows a statement by the industry body a day before on behalf of its members, rejecting the request from Reliance Jio for additional points of inter-connect from its member companies on the ground that optimal links have already been provided.
 
Prior to this, in a letter to the watchdog, Reliance Jio had requested for directives to the existing service providers to immediately provide interconnection to its Jio 4G network with their own, in the spirit of the licensing agreements.
 
But the members of COAI, through letters to the government and the watchdog, had alleged that Reliance Jio had already launched a full commercial service in the garb of test runs. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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Nifty, Sensex look weak – Monday closing report
We had mentioned in Friday’s closing report that Nifty, Sensex were stalling on lower volumes. The major indices of the Indian stock markets suffered a minor correction on Monday and closed around 0.40% lower than Friday’s close. Investors were cautious and the lower NSE volumes were a clear indicator of uncertainty. The trends of the major indices in the course of Monday’s trading are given in the table below:
 
 
Key equity indices traded in the red, as selling pressure was witnessed in automobile, information technology (IT) and healthcare stocks. The BSE market breadth was slightly tilted in favour of the bears -- with 1,463 declines and 1,254 advances and 202 unchanged. On the NSE, on Monday, there were 702 advances, 889 declines and 264 unchanged.
 
The indices opened on a flat note with a slightly negative bias following cues from negative Asian markets. The markets also traded with apprehension as caution prevailed ahead of a speech by Federal Reserve Chair Janet Yellen later in the week. Further, investors were seen cautious after government's decision on Saturday to appoint economist and banker Urjit R Patel as the next Governor of the Reserve Bank of India (RBI). Moreover, a weak rupee and lower crude oil prices also dented investors' sentiments.
 
The appointment of Urjit Patel, as Governor of the Reserve Bank of India (RBI), effective from September 4, has naturally raised expectation among those who were critical of outgoing Governor Raghuram Rajan for not easing enough the monetary policy by cutting rates. Since January 2015, Rajan has cut lending rates by 150 basis points (bps) but banks have only cut their interest rates by about half of that. To nudge banks to transfer the benefit of rate cuts, Rajan even announced a shift to the marginal cost of lending (MCLR) regime. Under the MCLR, banks need to consider their marginal cost of funds, or the cost incurred on incremental deposits across different maturities, to decide on interest rates. However, three months after the MCLR was launched on April 1 this year, banks have hardly cut their lending rates. A lower interest rate regime is likely to push the bulls in the stock market forwards.
 
Coal India on Saturday said its workers will go on a nationwide strike on September 2 to protest against divestment and strategic sale in the nationalised coal sector and to demand higher social security measures and recruitment drives. "We have received a communication of strike notice... for general strike on September 2. Efforts are being made for conciliation process," the coal behemoth said in a regulatory filing to the Bombay Stock Exchange. "In case they resort to strike, it will affect product and dispatch of coal," the filing said.  Almost five lakh bank union staff and officers are likely to join the strike on September 2 to protest against the "anti-people policies of the Modi government and labour reforms". Last year, coal production took a substantial hit due to a strike called by trade unions. Major trade unions like INTUC, AITUC and CITU called for the one-day strike. The unions demanded a stop to the disinvestment of Coal India, end to allocations of coal blocks to private companies, settlement of wage revision of contact workers as well as outsourcing workers working in the coal industry. Coal India shares closed at Rs335.40, up 0.36% on the BSE on Monday.
 
In the Goods and Services Tax (GST) regime, exporters will need to adapt as exemptions and incentives given to promote exports will go away, a senior official said on Saturday. "Once the GST is implemented, exemptions and incentives will have to go away," Union Commerce Secretary Rita Teaotia said. "Philosophically, we are moving in the direction of creating a conducive policy and economic environment for everybody across the country and that is the intention of the GST law," she added. "In a fragmented system, there could be cascading effect of taxes and local duties, but to offer a level-playing field "the requirement of incentives and subsidies would certainly need to be moderated and modified". But that would be taken up subsequently," she said at a session organised by the Engineering Export Promotion Council, Federation of Indian Export Organisations, Assocham, Bengal Chamber of Commerce and Industry and Gem Jewellery Export Promotion Council. She said the GST law would be framed by the Revenue Department, not by the Commerce Department. With the rupee stabilising against the dollar, there would be no need to promote exports or have excess protectionism on the part of the government in its policies and the stock market would also not give higher weightage to exports over domestic sales in the case of listed companies.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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Welspun India stock crashes as Target ends agreement for bad conduct
Minneapolis-based Target Corp, which serves guests at 1,797 stores and at Target.com, said it has decided to terminate it vendor agreement with Welspun Global Brands Ltd (Welspun Global), for supplying a substitute product. 
 
In a release, Target said, "Welspun Global, was one of the producers of Egyptian Cotton 500-thread count sheets under the Fieldcrest label for Target. After an extensive investigation, we recently confirmed that Welspun substituted another type of non-Egyptian cotton when producing these sheets between August 2014 and July 2016. We have informed Welspun that, due to this conduct, we are in the process of terminating our relationship with them."
 
Welspun Global Brands is a unit of Welspun India Ltd. In a regulatory filing, Welspun India said, "We have initiated immediate actions to investigate the root cause. We are appointing an external auditor (one of the Big Four) to audit our supply systems and processes. This is an issue of highest priority for us and we will take all necessary steps to address it."
 
However, the markets did not take Target’s words kindly. On Monday, Welspun India hit its lower circuit to Rs82.30 on the BSE, while the 30-share benchmark Sensex was ended the day marginally down at 27,985.
 
Target says as soon as its investigation confirmed the substitution, it pulled all remaining products from Target stores and Target.com. "On 19 August 2016, we began reaching out to all REDcard and Target.com guests who purchased the sheets between August 2014 and July 2016 and offered them a full refund. We are reassuring our guests that this is not an issue of safety and there is no risk in continuing to use this product. Any guests who purchased the products from Target during that timeframe may submit this web form to request a refund in the form of a gift card," it added.
 

 

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COMMENTS

P L Despande pawar

9 months ago

Highly damaging to country's image. Welspun's explanation appears to suggest that they didn't know sbout it. Difficult to digest.

REPLY

shadi katyal

In Reply to P L Despande pawar 9 months ago

How can a company clain that they were not aware of the substitution.It may shock someof you but we lost our reputation long time ago when PSU like STC were exporters etc.
WE try to make maximum profit. I bought some undershirts of 105cm but id dsif on the shirts 103-105 cm and bet those are not even 104 but less. We have lost ethics in name of greed and thus intergity.
EDvedn Bangladesh whcih was a basket case is making more money in textile than we cvan dream off

Brian Fernandes

9 months ago

Honest people...something very difficult to find. Sad!

Virendra Sharma

9 months ago

What does it mean?Welspun has substituted with another Egyptian cotton then why Target is doing so?

REPLY

shadi katyal

In Reply to Virendra Sharma 9 months ago

Well spen substiututed with NON Egyptian cotton and thus misled the buyer TARGET who sold it as an Egyptian cotton.
In USA such cheating is not allowed and thus TARGET hs asked its customers to return and get paid. These are the ethics of US Business inorder to stay in business for generations and nnot for a quick profit ,

Kumar Swamy

In Reply to shadi katyal 9 months ago

Yes, these kind of companies get away with all kinds of non-sense in India but NOT in USA. Enforcement of regulations and customer protection is something we can and should learn from them.

shadi katyal

In Reply to Kumar Swamy 9 months ago

West is ruled by Law and Order and that is what British gave us first but could not change our culture of SUB CHALTA HAI BHAI.
We did have some ethics for first few years but now greed has taken over. We are beither patriots nor honest businessmen.
Look how we tried to even destroy Maggies by unproved charges. We still have to see any true and real report of socalled excessive lead and since all ingrediants wer Indegineous so where did the lead come from.
The damage done to the nation by such industrialist lasts for decades.
Nation is too busy ion religious issues but not in development

shadi katyal

9 months ago

Can anyone tell us that why we Indian manufccturers have to learn any ethics and greed plays a part. One wonder the lioabilities of foreign buyers and their commitments to the customers of the quality of a product but in India it seems the famours attitude SUB CHALTA HAI.
Can the Welspun give the reason of such a switch of cotton and not informing the client. Now Target will take back all that sold goods back and suffer a very big loss but WHEN AND IF OUR EPXORTERS WILL EVER LEARN???

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