India In-Focus — Shares reverse early gains; Country has no immediate plans to lift wheat export ban; Vedanta to finalize $20bn chip unit site soon
Updated 14 sec ago
MUMBAI: Indian shares gave up early gains to trade lower on Thursday, as losses in metal and energy stocks outweighed gains in financial counters, while persistent concerns over global inflation also weighed on investor sentiment.
The NSE Nifty 50 index was down 0.36 percent at 15,967.80, as of 0502 GMT, while the S&P BSE Sensex fell 0.18 percent to 53,652.27.
India has no immediate plan to lift wheat export ban
India has no immediate plans to lift a ban on wheat exports, but will continue with deals that are done directly with other governments, Commerce Minister Piyush Goyal told Reuters.
The world’s second-biggest producer of wheat banned private overseas sales of the grain on May 14 after a scorching heatwave curtailed output and domestic prices hit a record high. Global wheat prices surged after the decision.
“Currently there’s instability in the world, if we were to do that (lift the ban), it would only help black marketeers, hoarders and speculators. Neither will it help the really vulnerable and needy countries,” Goyal said when asked if New Delhi had any plans to allow private exports to resume.
“The smarter way to do it is through the government to government route, by which we can give affordable wheat grain to the most vulnerable poor,” he said in an interview on Wednesday at the World Economic Forum in Davos.
Vedanta to finalize $20 billion Indian chip, display unit site by mid-June
Vedanta will finalize a location for its $20 billion semiconductor and display plants in India by mid-June and will have the first chip product ready in two years, its Chairman Anil Agarwal said on Wednesday.
Oil-to-metals conglomerate Vedanta said in February it will diversify into chip manufacturing and announced plans to form a joint venture with Taiwan’s Foxconn to support Prime Minister Narendra Modi’s drive to make India a semiconductor manufacturing hub.
Vedanta has a total planned investment outlay of $20 billion for two separate units for chip and display manufacturing.
“Foxconn is our technical partner. We may not take equity partner for the fab,” Agarwal told Reuters in an interview in Davos, adding that the Apple contract manufacturer will have technical responsibility for the operation, from providing the tech to making semiconductors.
Vedanta is seeking incentives from the government and is also in talks with several Indian states on the unit’s location.
HSBC weighs IPO of Indonesia business: Bloomberg News
The IPO news comes a month after HSBC’s largest shareholder, Chinese insurance giant Ping An, called for a spin off of the bank’s Asian operations in a move to boost returns
Updated 11 min 13 sec ago
HSBC Holdings PLC is considering an initial public offering of its Indonesian business, as the bank aims to target the growing investment demand in the country, Bloomberg news reported on Thursday, citing people familiar with the matter.
The London-based bank is yet to file a formal IPO application in Jakarta but the talks for a share sale are at an advanced stage, according to the report.
Indonesia’s Financial Services Authority declined to comment on the report, while HSBC did not immediately respond to Reuters’ request for a comment.
The IPO news comes a month after HSBC’s largest shareholder, Chinese insurance giant Ping An, called for a spin off of the bank’s Asian operations in a move to boost returns.
Commodities Update — Gold dips; Wheat, corn fall; Copper extends losses on global recession worries
Updated 26 May 2022
RIYADH: Gold prices edged lower on Thursday as Treasury yields gained after the appeal of bullion was somewhat restored by minutes of a US Federal Reserve policy meeting that showed the central bank was unlikely to get more aggressive on interest rate hikes.
Spot gold dipped 0.2 percent to $1,849.75 per ounce, as of 0220 GMT.
US gold futures gained 0.1 percent to $1,848.20.
Spot silver dipped 0.5 percent to $21.86 per ounce, while platinum eased 0.1 percent to $943.15.
Palladium was little changed at $2,006.61.
US corn and wheat futures fell on Thursday on hopes that stuck grain supplies from the Black Sea region could start moving, while soybean eased on concerns over demand from top consumer China.
The most-active corn contract on the Chicago Board of Trade fell 1.39 percent to $7.61-half a bushel as of 0445 GMT, after falling to the lowest level in seven weeks on Wednesday.
Wheat was down 2.07 percent at $11.24- half a bushel and soybeans edged 0.28 percent lower to $16.76- quarter a bushel.
Copper extended losses to a third session on Thursday as concerns grew that the global economy might plunge into a recession and dampen demand for industrial metals.
Three-month copper on the London Metal Exchange was down 0.5 percent at $9,328.50 a ton, as of 0536 GMT. The most-traded July contract on the Shanghai Futures Exchange fell 0.2 percent to $10,581.78 a ton.