Weekly roundup (Sep 9-13): News you cannot miss
Until a week ago, the rupee had lost about 20 per cent against the dollar this year, but this week the currency stole the show for all the good reasons. The market seems to be banking on Raghuram Rajan, the 23rd governor of Reserve Bank of India. The worst-performing Asian currency became the best performer in just a week, appreciating 5.55 per cent since last Wednesday. A few reports indicated that licensing costs raised by a fallen rupee has started prompting Indian cos to opt for open-source softwares to cut costs. On the other hand, the rise of rupee is likely to put pressure on the stocks of software services exporters considering their valuations have topped multi-year highs. After the recent rally in its stock price, Tata Consultancy Services (TCS) became the world’s second-most-valuable IT services company — ahead of Accenture and Hewlett-Packard but behind IBM. The Indian firm is currently valued at around $60 billion, compared with Accenture’s $50.5 billion and HP’s $43 billion.
The week brought some good news for Indian jobseekers. An employment survey released by Manpower Group indicated that Indian employers are the most optimistic on hiring in the fourth quarter. Also, early placement trends from top colleges in Tamil Nadu indicate that recruiters are still showing the appetite to recruit large numbers. Companies like Infosys, Wipro, Cognizant, Accenture etc have recruited a large number of candidates from big campuses in the state. As the campus placements are still on, the numbers are expected to increase.
In its biggest acquisition in two years, Aditya Birla Group has acquired Jaypee Group's cement unit in Gujarat, including debt, for Rs 3,800 crore.
Twitter took a much anticipated move when it announced on Thursday that it has submitted papers for the most hotly anticipated stock offering in the tech sector.
Much anticipated entry of AirAsia in India might get a little delayed due to air operator certification manual, issued last month by DGCA. According to this an application for permit must be filed at least 90 days before the date of intended launch of operations. On the other hand, Jet Airways got a major boost to expand its global footprints when the aviation ministry allowed it to go for code-sharing. Code-sharing allows airlines to let their passengers buy ticket from one airline and take a flight operated by another airline.
The ministry of corporate affairs (MCA) has proposed to mandate companies to spend two per cent of their average net profit for the past three years on fulfilling their corporate social responsibilities (CSR) even if their group makes consolidated net loss. The new rules also say that activities benefiting a company's own employees and families will not qualify as CSR spending.