Top headlines: MSCI index to get big boost; Pepsi thrives as Coke struggles

From MSCI EM index set for major boost to e-commerce firms selling goods worth $4.1 bn in first week of festive sale, here top headlines this morning

India's weighting in widely-tracked MSCI EM index set for major boost

India’s weighting in global indices such as the MSCI Emerging Markets (EM) index — estimated to be tracked by funds with assets under management of $1.8 trillion — is set for a boost. MSCI has said it will increase the so-called foreign inclusion factor (FIF) for several Indian stocks with effect from December 1, and the finer details will be decided next month at its semi-annual review. Read More

Flipkart will invest more in offline firms, says CEO Kalyan Krishnamurthy

Within days of announcing investments in Aditya Birla Fashion and Retail Ltd (ABFRL), e-commerce major Flipkart has said it’s exploring strategic funding in multiple offline retailers and technology companies. The Walmart-owned firm is looking at an online-offline business combination, quite like rivals Amazon and Reliance JioMart. Flipkart Group Chief Executive Officer (CEO) Kalyan Krishnamurthy told Business Standard that the firm would consider making additional investments in entities which are built on strong ethics, values, culture and have complementary capability. Read More

States will need years to recover from 'scissor effect' of Covid: RBI

States are witnessing “unprecedented pressures” on their fiscal positions after the Covid-19 pandemic and the next few years are going to be challenging for most of them, according to a report on state finances by the Reserve Bank of India (RBI). A possible ‘scissor effect’ - loss of revenues due to demand slowdown, coupled with higher expenditure associated with the pandemic, may push the states to great strife, the report warned. Read More

Near zero GDP today, among fastest growing next year: FM on Indian economy

Union Finance Minister Nirmala Sitharaman on Tuesday said the growth rate of the country’s gross domestic product (GDP) might be “near zero” this fiscal year. However, with signs of economic revival, India might well be one of the fastest-growing large economies in the next fiscal year, she said, while addressing the CERAWeek India Energy Forum. Read More

Food focus keeps PepsiCo going, but Coke struggles amid Covid-19 pandemic

One of the things Covid-19 has brought into stark relief is the contrasting strategies of PepsiCo and Coke in India and how the differences have had a bearing on their performance during the pandemic. One big change is that PepsiCo is now less of a cola or a beverage company and more of a foods major. Declaring the financial results a few weeks ago for Q3 of 2020, PepsiCo CEO Ramon Laguarta announced that despite a slow revenue growth of 2 per cent in emerging and developing markets, India bucked the trend, showing a high single digit growth. Read More

Lee's death raises questions over Samsung's future in electronics industry

The death of Lee Kun-hee last week, after a prolonged illness, sparked turmoil in the $375 billion Samsung Group. The 78-year-old Lee had taken over the giant chaebol (conglomerate in Korean) in 1987, after the death of his father, Lee Byung-chull, who founded Samsung in 1938. In the 1980s, Samsung was primarily a noodle-trading and trucking business. Read More

IGL to foray into battery swapping in tie-up with Mahindra Powerol

Indraprastha Gas Ltd (IGL), the country’s leading city gas distributor, is tying up with Mahindra Powerol to offer electric vehicle (EV) battery swapping facility at its retail outlets in the National Capital Region (NCR). Though the companies are still in discussions, with this foray, IGL would be branching out to the EV infrastructure business apart from its core business of retailing natural gas. Read More

We believe e-commerce can touch $100 bn: Flipkart CEO Kalyan Krishnamurthy

Walmart-owned e-commerce giant Flipkart has witnessed blockbuster festive season sales, though the firm was initially concerned about pulling off the event remotely because of the pandemic. In an interview with Peerzada Abrar, its Chief Executive Officer Kalyan Krishnamurthy says the company has introduced many features, including launching in more languages, to drive sales across the country. Read More

E-commerce firms sell goods worth $4.1 bn in first week of festive sale

E-commerce firms reported a 55 per cent jump in sale goods to $4.1 billion (~29,000 crore) across platforms during the first week (October 15-21) of festive sales, research firm RedSeer said on Tuesday. RedSeer, in its report, said the comparative number stood at $2.7 billion last year. RedSeer in its pre-festive sale had forecasted that platforms will clock $4 billion worth of sales. Read More