Morning Buzz: IndiGo plans to ground 35 aircraft; FMCG sales rise, and more

(File) Indigo aeroplane's tail seen at the airport in Mumbai. Image: Ashish Vaishnav/SOPA Images/LightRocket via Getty Images

IndiGo to ground 35 aircraft due to engine issues

IndiGo plans to ground 35 aircraft in the January to March 2024 quarter due to an engine powder metal issue. The company made this statement after receiving a preliminary assessment from Pratt & Whitney. These are in addition to the planes that are already grounded. The airline operates 333 aircraft.
(Economic Times, Business Standard, Financial Express)

Reliance Industries to raise Rs20,000 crore via rupee denominated bonds

Reliance Industries plans to raise Rs20,000 crore in the largest domestic bond sale in India via an Indian corporate. The sale will take place through the electronic book mechanism through the BSE bond platform. The interest rate is expected to be 7.75 to 7.8 percent. The bonds would have a 10-year maturity and are rated AAA by CRISIL.
(Economic Times)

FMCG sales rise as rural demand shows signs of reviving

India’s packaged good consumption grew 8.6 percent by volume in the September quarter aided by a recovery in demand from rural India. Growth came on account of lower inflation, a decline in unemployment and the LPG subsidy that gave people more money to spend. It remains to be seen if the trend lasts beyond the festive season—and this depends on the kharif output. Growth in modern trade channels stood at 19.5 percent.
(Economic Times, Business Standard)

Capex growth may slow as government looks to trim deficit

The government has started discussions to reduce the pace of increase in capital spending as it looks to trim the budget deficit in FY25. The FY26 deficit target is 4.5 percent of GDP. The cuts would come in the interim budget to be presented in February. A final decision for the full Budget to be presented after the new government takes over has not been taken.
(Economic Times)