Morning Buzz: Two-wheeler exports at highest level in 2023, wholesale inflation at an eight-year low, and more

Here are the top business headlines this morning, to get your day started

Published: Jun 15, 2023 09:46:59 AM IST

Updated: Jun 21, 2023 06:27:14 PM IST

WPI inflation in India eased further to -3.48 percent for the month of May, the lowest since November 2015 Image: Narinder Nanu / AFP

Wholesale inflation hits eight-year low, raises hope for sooner-than-expected rate cuts

WPI inflation in India eased further to -3.48 percent for the month of May, the lowest since November 2015, which has once again raised hopes that the Reserve Bank of India will start to cut rates sooner than what economists forecast for early 2024. Prices of mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum & natural gas fell. Much will hinge on the progress of the monsoon, and its impact on crop output and prices.

(Economic Times, Business Standard, Mint)

Two-wheeler exports hit highest 2023 level

In an early sign of a pick-up in demand for exports in some parts of the world, two-wheeler exports from India have hit a five-month high in May with 2.59 lakh vehicle units, according to industry data. This is attributed to a moderation in oil prices and stability in the overall environment. Columbia, Nigeria, Philippines, Mexico and Sri Lanka are places where demand for two-wheelers from India is the highest and there would have been an uptick in some of these markets. Bajaj Auto and Honda Motorcycle have boosted manufacturing this year, from a year earlier.

(Hindu Businessline)

M&M, Hinduja join race to buy MG Motor India stake

Automobile major Mahindra & Mahindra (M&M) and the Hinduja group, promoter of Ashok Leyland, are learnt to be interested in acquiring a significant stake in MG Motor India, the wholly owned arm of Shanghai-headquartered SAIC Motor. The Sajjan Jindal-led JSW group has this week already evinced interest to take up to 48 percent stake in MG Motor India, which commenced operations here in 2017. Though MG Motor India holds a small market share in the passenger vehicles market, it is seen as a legacy brand, with a valuation of Rs8,000 crore.

(Business Standard, Moneycontrol, Business Today)

PNB, LIC, SBI and others seeking formal bids to sell UTI AMC stake

Four state-owned financial institutions—Punjab National Bank, LIC, SBI and Bank of Baroda—which hold over 45 percent in UTI AMC are likely to be working on inviting formal bids to sell their stake in the asset management company. Talks of a stake sale to the Tata group, which was keen to pick up a majority stake, were on in mid-2022, but fell through, and now the Tata group is likely to make a fresh bid. UTI AMC had total assets under management of Rs2.23 lakh crore as of FY23.

(Economic Times)

SIP assets under management hit new high in May

Assets under management through the systematic investment plan (SIP) route continued to be strong in 2023, hitting a record Rs7.5 lakh crore in May, industry data shows, with the stock markets at near-record highs. The US Fed pausing on interest rate hikes this week is a positive sentiment booster. The SIP AUMs are up by 33 percent from a year earlier and their share in the total AUM is at over 17 percent.

(ET Prime)

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