Here are the top personal finance news of the day:
Retail inflation rose to a three-month high of 4.81 per cent in June, mainly on account of hardening prices of food. Inflation based on the Consumer Price Index stood at 4.31 per per in May and 7 per cent in June 2022. The inflation, however, remains within the RBI’s comfort level of below 6 per cent.
On the other hand, industrial production rose to 5.2 per cent in May from 4.5 per cent in April, mainly due to good performance by the manufacturing and mining sectors. The factory output growth measured in terms of the Index of Industrial Production (IIP) stood at 19.7 per cent in May 2022, mainly due to a lower base effect.
SUVs, MUVs to get costlier
The GST council has raised the cess on utility vehicles which may lead to a 2% hike in prices of SUVs and MUVs. The council also raised rates on online gaming to 28%. The tax would be applicable on the total bet. This move is facing severe criticism from the industry which says this move may lead to job losses and boost illegal betting sites.
Gaming industry stunned
People from country’s gaming industry are crying foul as GST Council has proposed 28% GST on online gaming. The Council has also proposed 28% GST on casinos and horse racing. Gaming industry has accused that the Council has levelled online games of skill with horse racing and casinos. All India Gaming Federation has even termed Council ‘s decision unconstitutional. The federation said this would leave gaming industry in such a situation that it would be paying more tax than what they would be earning. This will erode lot of jobs from online gaming sector.
Food in theatres @5% GST
On the other hand, multiplex operators welcomed the GST Council’s decision to lower tax rates on food and beverages sold in cinema halls. The GST Council reinstated 5% GST will be levied on food and beverages sale. Already, PVR was levying 5% GST in multiplexes pan India, so food and beverages will not get cheaper in PVR. Some other cinema theatre chains and those operating at local levels were levying 18% GST, food items will become cheaper there only. Do you know, multiplexes earn up to 35 per cent of their revenues from food & beverages sale. PVR INOX, CFO, Nitin Sood said, GST Council’s latest diktat will help in revival of the theatre business post-pandemic.
Delta, Nazara drop
Delta Corp shares closed 23% lower on bourses after the GST Council levied 28% GST. The scrip hit back to back lower circuit and closed at 189 rupees apiece. Nazara Technology on the other hand closed more than 2% lower at 688 rupees. Nazara Tech filed a corporate exchange. It stated that online gaming constituted only 5% of overall revenues. Hence, GST Council’s decision to levy 28% GST will not impact much. Industry experts said that the GST Council’s latest diktat has caused lot of damages to investors of online gaming companies.
TCS QoQ profit falls
TCS reported 2.7% QoQ fall in consolidated net profit to less than 11,100 crore rupees in first quarter of current financial year. However, on annual basis, it beat analyst estimates to report 17% junp in PAT in the same quarter. Its board declared 9 rupees interim dividend for shareholders.
HDFC ends innings on bourses
HDFC will get delisted from the market tomorrow. The home financier juggernaut ceased to exit as separate entity as it is being merged with the HDFC Bank. HDFC shares will be converted to shares of the latter. HDFC Bank shareholders will get 42 new equity shares for every 25 shares of HDFC held on record date of July 13. After the conversion, HDFC Bank will become most heavyweight stock in Nifty 50. HDFC Bank will alone constitute 15% weightage of the 50 constituent index. The scrip has given 20% return in last one year.
PV sales up 2%
Passenger vehicle wholesales in the domestic market witnessed a 2 per cent year-on-year rise to 3,27,487 units in June, as demand remained strong especially for the multi-utility vehicles. Passenger vehicle dispatches to dealers in June 2022 stood at 3,20,985 units, industry body SIAM said. Total two-wheeler sales rose by 2 per cent to 13,30,826 units last month, as against 13,08,764 units in the year-ago period. The first quarter of FY24, passenger vehicle sales rose to 9,95,974 units, up 9 per cent, as against 9,10,495 units in the same period of the last fiscal.
Tomatoes from govt outlets
From July 14, 2023, citizens can buy tomatoes at cheaper prices from retail outlets of NAFED and NCCF. The government has directed the federations to sell tomatoes at cheaper prices to citizens. The federations will procure tomatoes from states with abundant supply and sell at retail outlets. Tomato prices reached Rs 260 per kg in some parts of the country. Government has given assurance to citizens that they will very soon get relief from high vegetable prices.
