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Markets will remain closed on May 13, 2021 on account of Id-Ul-Fitr (Ramzan Id).

Is India FDI friendly?
Fri, 11 Feb Pre-Open

Foreign Direct Investments (FDI) is precious for any country. This is the foreign exchange that would be staying within the country's borders for a long time as compared to its volatile partner FII (Foreign Institutional Investments). Hence, it is not surprising that most countries try to make FDI friendly policies and rules.India is no exception to this. But the competition for this FDI is huge. China being one of India's biggest competitors. But is India's really FDI friendly? The recent signs don't seem to indicate this.

The Cairn Energy -Vedanta deal is just a point of reference in this regards. Cairn had discovered oil deposits in Rajasthan, almost 15 years ago. At that time, this discovery was a huge relief for the country, which depends on fuel imports to meet its energy needs. Fast forward to recent times. Cairn plans to sell its stake in the Indian arm to UK based Vedanta. This would not affect the Indian operations in any way. And now, ONGC has put a clause stating that the deal cannot go through unless Cairn India makes a change in its pre-1999 deal and starts sharing royalties on the crude production from India with ONGC. This would cost Cairn India US$ 3 bn in terms of royalty payments. We know that it sounds funny that an Indian company should suddenly come up with an objection to a stake sale contract between two foreign companies. Even funnier is that the Indian government has decided that ONGC's stake is legitimate and has put an objection on the Cairn-Vedanta deal. Till such time as this is cleared, the deal cannot go through.

Another example is of the Vodafone tax issue. Vodafone bought Hutch's Indian telecom operations. Hutch is a Hong Kong based company and Vodafone is a UK based company. Obviously Hutch made a profit by selling its stake in the Indian arm. But the Indian authorities have concluded that Vodafone needs to pay taxes to the Indian government for this transaction.

There are numerous other examples of deals getting stuck with the environment ministry. The POSCO deal being one of them. It took the environment ministry almost one year to clear this deal. The issue of FDI in retail has been doing the rounds forever. The Indian government wants FDI to grow. But it is rigid when it comes to helping these investors out. Then why would the investors continue to flock to India? So is India really FDI friendly? Doesn't look like it.

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Stock Market Updates

Sensex Trades Over 300 Points Lower, Dow Futures Down by 128 Points (Today's Market)

May 12, 2021 12:30 pm

BSE Sensex is trading down by 328 points, while the NSE Nifty is trading down by 89 points.

GODREJ AGROVET Share Price Up by 9%; BSE FMCG Index Down 0.1% (Today's Market)

May 12, 2021 12:14 PM

GODREJ AGROVET share price is trading up by 9% and its current market price is Rs 577. The BSE FMCG is down by 0.1%. The top gainers in the BSE FMCG Index are GODREJ AGROVET (up 8.5%) and GSK CONSUMER (up 5.1%). The top losers are GILLETTE INDIA (down 0.2%) and ITC (down 0.2%).

Sensex Dips 300 Points, Nifty Falls Below 14,800; Godrej Consumer Zooms 10% (Today's Market)

May 12, 2021 09:30 am

Indian share markets open lower. The BSE Sensex opened down by 325 points, while the Nifty is trading lower by 84 points.

SIEMENS at All Time High; BSE CAPITAL GOODS Index Up 0.7% (Today's Market)

May 12, 2021 09:36 AM

SIEMENS share price has hit an all time high at Rs 2,096 (up 7.5%). The BSE CAPITAL GOODS Index is up by 0.7%. Among the top gainers in the BSE CAPITAL GOODS Index today are SIEMENS (up 7.5%) and HONEYWELL AUTOMATION (up 0.1%). The top losers include CARBORUNDUM UNIVERSAL (down 0.1%) and SCHAEFFLER INDIA (down 0.4%).

CADILA HEALTHCARE at All Time High; BSE HEALTHCARE Index Down 0.1% (Today's Market)

May 12, 2021 09:36 AM

CADILA HEALTHCARE share price has hit an all time high at Rs 640 (up 1.1%). The BSE HEALTHCARE Index is down by 0.1%. Among the top gainers in the BSE HEALTHCARE Index today are CADILA HEALTHCARE (up 1.1%) and ABBOTT INDIA . The top losers include TORRENT PHARMA (down 0.1%) and SANOFI INDIA (down 0.1%).

BLISS GVS PHARMA Share Price Down by 6%; BSE HEALTHCARE Index Down 0.1% (Today's Market)

May 12, 2021 09:34 AM

BLISS GVS PHARMA share price is trading down by 6% and its current market price is Rs 124. The BSE HEALTHCARE is down by 0.1%. The top gainers in the BSE HEALTHCARE Index are SUN PHARMA ADV. RES. (up 2.0%) and AJANTA PHARMA (up 1.9%). The top losers are BLISS GVS PHARMA (down 5.6%) and DISHMAN CARBOGEN AMCIS (down 7.8%).

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