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SpiceJet’s troubles are not going to end soon. In an unprecedented move, India’s aviation regulator SpiceJet has issued a warning notice to the observer agency after reviewing recent incidents showing “poor internal security oversight and inadequate maintenance measures”. The Directorate General of Civil Aviation said a review of several incidents involving SpiceJet aircraft since April 1 found that “the aircraft either returned to its original station or continued landing at the destination with a reduced safety margin”. “The review demonstrates that poor internal security oversight and inadequate maintenance activities (since most of the incidents are related to component failures or system-related failures) have led to deterioration of security margins,” the DGCA said in its letter. The airline has been given three weeks to respond to the regulator’s warning before taking any action. The July 5 letter was released on Twitter by the Indian Ministry of Civil Aviation on Wednesday.
Moving on to the latest news from the stock market. Analysts at Kotak Mahindra Bank’s stock Goldman Sachs have previously upgraded from a ‘neutral’ tag to a ‘buy’ rating. In a report, Goldman Sachs said Kotak Mahindra Bank is ready for the next transition period as the brokerage firm has increased targets pinned on the stock. “We believe Kotak Mahindra Bank is in a good position to capitalize on this cycle and successfully implement its retail assets strategy to raise MCap to $ 100 billion in FY27E,” analysts said. Kotak Mahindra Bank’s stock has traded at Rs 1,711 per share, down 6% so far this year.
Meanwhile, in today’s trade, the benchmark stock index Sensex and Nifty jumped above 1 percent on Wednesday amid a long gap in the European stock market and a positive opening after foreign funds turned into domestic buyers of domestic equities. The 30-share BSE benchmark index rose 616.62 points, or 1.16 percent, to 53,750.97. During the day, it rose 684.96 points, or 1.28 percent, to 53,819.31. The NSE Nifty rose 178.95 points, or 1.13 percent, to 15,989.80. Among the Sensex scrips, Bajaj Finserv, Bajaj Finance, Hindustan Unilever, Asian Paints, Titan, Maruti Suzuki India, Kotak Mahindra Bank and Nestle were the major gainers. Power Grid, NTPC, Reliance Industries, Larsen & Toubro and Tata Steel were behind.
Now some foreign news. Britain’s antitrust watchdog Amazon.com Inc. is investigating concerns that it is hitting the market by giving its own vendors unfair advantage over third parties. The move adds to the global regulatory scrutiny of the U.S. technology giant. The UK’s Competition and Markets Authority said on Tuesday it had launched an investigation into whether Amazon’s internal market was affecting sellers could be anti-competitive and could lead to worse deals for customers. “It’s just that we’re carefully investigating whether Amazon is using third-party data to make an unfair increase in its own retail business and whether it supports vendors who use its logistics and delivery services – both of which could weaken competition,” said Sarah Cardell. General CMA prosecutor, said in a statement.
In other news, the rupee closed 3 paise higher at its all-time low of 79.30 (temporary) against the US dollar on Wednesday after a sharp fall in crude oil and foreign funds flows. In the interbank forex market, the local unit opened at 79.29 against the greenback and witnessed intra-day high 79.24 and low 79.37. It finally settled at 79.30, up 3 paise from its previous close. In the previous session, the rupee closed at an all-time low of 79.33 against the US dollar.
Here is a critical update of MSP. Ramesh Chand, a member of the government think-tank policy commission, said on Wednesday that the minimum support price of agricultural crops should be maintained until the market becomes competitive and efficient, but it should be given in a way other than purchase. Speaking at a conference on ‘Agricultural Marketing Properly’ jointly organized by the National Stock Exchange and ICRIER, Chand said: Once implemented, it cannot be stopped. Under DPP, the difference between open market price and MSP is given to farmers, he said, adding that it has been implemented in some states like Madhya Pradesh.
Moving forward in the news of the economy. The Commerce Ministry has recommended imposition of anti-dumping duty on high quality glass used in construction, refrigeration, solar energy and other industries to protect domestic players from cheap imports from Bangladesh and Thailand. The Directorate General of Trade Remedies has recommended tariffs on the import of ‘clear float glass’ from these two countries which concluded in its investigation that the product was exported at a dump price.
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