Morning buzz: Indigo Airlines introduces fuel surcharge, Bajaj Finance plans Rs 10,000 crore fund raise, and more
Here are the top business headlines this morning, to get your day started
Indigo Airlines, the country’s largest airline has introduced a fuel surcharge of between Rs 300-1,000 based on the distance flown.
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Indigo Airlines introduces fuel surcharge
Indigo Airlines, the country’s largest airline has introduced a fuel surcharge of between Rs 300-1,000 based on the distance flown. The company said the surcharge would be applicable immediately and was necessitated by the rising prices of aviation turbine fuel. It is unclear whether other airlines will follow suit. This move comes just before the onset of the festive season, which sees strong demand for travel.(Economic Times, Business Standard, Mint, Financial Express)
Bajaj Finance plans Rs 10,000 crore fund raise
Bajaj Finance plans to shore up its capital position and raise Rs 10,000 crore through institutional placements and a preferential allotment to parent Bajaj Finserv. The move comes even as the company has a comfortable capital adequacy ratio of 23 percent. The last fund raise by the company was in November 2019.(Economic Times, Business Standard, Times of India)
Services PMI hits a 13-year high at 61
India’s services Purchasing Managers Index rose to a 13-year high of 61. A reading over 50 suggests an expansion. Services adds 54 percent to GDP. Even though the index was at a high, job creation was moderate. The index is compiled from a survey of 400 managers across consumer, transport, information technology and real estate sectors.(Business Line)
Bond index inclusion to bring in $23 billion of inflows: Sitharaman
The inclusion of India’s sovereign bonds in the JP Morgan market index could lead to an inflow of $23 billion. This would help augment foreign exchange reserves, help in financing the current account deficit and lead to an appreciation of the rupee against the US dollar. The inclusion will start from June 2024 and extend over 10 months with 1 percent increases in index weighting every month.(Financial Express)
