Morning Buzz: Income tax turns lens on Google, Amazon and Apple, Goldman Sachs upgrades Indian equities and more

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Income Tax turns lens on Google, Amazon and Apple for likely Rs 5,000 crore demand

The Income tax department is questioning the Indian units of Google, Amazon and Apple for possible tax liabilities. The authorities are seeking more information on their transfer pricing practices, specifically towards advertising, marketing and promotion expenses. The total amount could total to Rs 5,000 crore, reports say.
(Economic Times)

Govt considering offloading up to 10 percent in some state-owned banks

The government is planning to divest between 5 to 10 percent of their stakes in public sector banks, where they have a majority shareholding. These could include Bank of India, Indian Overseas Bank, Punjab & Sind Bank, Bank of Maharashtra, Central Bank of India and UCO Bank. The stake sale could be conducted through the offer-for-sale route. The timing appears opportune, as most public sector bank stocks have shown sharp gains in the past 12-18 months.
(Economic Times)

Govt seeks to alter norms for stricter EV components use

The government is considering implementing stricter norms to enforce the use of local components to bolster domestic manufacturing of electric vehicles (EVs). This could mean introducing a 50 percent domestic value addition and scrapping the phased manufacturing programme for quicker adoption of hybrid vehicles in India.
(Mint)

Goldman Sachs upgrades Indian equities

Goldman Sachs has upgraded Indian equities to an overweight stance, in line with several other investment banks. Higher earnings growth in the next fiscal is seen as the driving force for this decision. There has been a rise in corporate profits in the last two quarters but this is yet to get reflected in the earnings of Sensex companies. Sustained economic growth is one of the compelling forces for these upgrades in the emerging markets basket of countries.
(Moneycontrol)