IT snag trips NSE

155 minutes

What is it? The duration for which trading at India’s largest stock exchange, National Stock Exchange (NSE), was halted on Monday.

Why is it important? This is the longest ever halt in trading at NSE, which has dominant market share in equity derivative market in India. This comes ahead of NSE’s plans to list, which has already been delayed by an investigation due to its December disclosure that some of its traders may have been given unfair access to its servers.

Tell me more: Both NSE Nifty and BSE Sensex rose to record highs of 9,771.05 and 31,715.64, respectively on Monday.

 

Rs 4.59 lakh crore

What is it? The total central government expenditure between April-May this year, 54% higher compared to corresponding numbers last year.

Why is it important? Advancing of budget by a month this year has helped government departments to spread out expenditure. Likely to aid economic growth as private investment, the main driver of GDP growth, has remained anemic so far in 2017. Government spending accounts for 10% of India’s GDP.

Tell me more: The capital expenditure in the April-May period was Rs 52,536 crore, up 58.1% from the corresponding period in the previous fiscal.

 

300,000

What is it? The number of people affected by cholera in Yemen in the last 10 weeks, according to the International Committee of the Red Cross (ICRC).

Why is it important? This is the worst cholera outbreak in the world, with 7,000 new cases and 1,700 deaths so far. The outbreak is due to the civil war between the pro-government forces and the rebel Houthi movement. With no electricity, a broken water system and only 45% of the hospitals operational, the situation isn’t likely to improve anytime soon.

Tell me more: There are between 21,000 and 143,000 cholera deaths out of 1.3 million to 4 million cases each year. Cholera can be successfully treated with oral re-hydration solution.

 

7

What is it? The number of pilgrims on this year’s Amarnath Yatra killed on a bus in a terror attack on Monday night, in Kashmir’s Anantnag.

Why is it important? This is the second deadliest terror attack on the pilgrims, after the massacre in 2000. The pilgrims were caught in a crossfire and were travelling past the stipulated pilgrimage travel deadline of 7 pm, after which security cover is withdrawn daily.

Tell me more: The terrorists had started firing blind after facing retaliatory fire from a police check post and security personnel’s vehicle nearby. The bus carrying the pilgrims was not part of the official Amarnath tour and was not under the beefed up security protection arranged this year.

 

>Rs 2,000 crore

What is it? The claim for compensation filed by SpiceJet’s erstwhile promoter, Kalanithi Maran, chairman and managing director of Sun Group, from the low-cost airline.

Why is it important? This was filed before the Delhi High Court tribunal which is deliberating on a share transfer dispute between Maran and the airline’s current owner, Ajay Singh. The claim stems from SpiceJet’s inability to issue convertible warrants and preference shares to Maran and his firm, KAL Airways.

Tell me more: The tribunal, last week, directed SpiceJet to pay Rs 250 crore in cash deposit and Rs 229 crore in bank guarantee to Maran for the same. As part of the tribunal hearings, it was also divulged that Singh bought 58.46% stake in the airline for a sum of Rs 2.

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The on-time numbers that IndiGo is contesting

This piece originally appeared on Livemint.com

 

In the last five years, IndiGo’s share in domestic flights to and from Mumbai has increased from 21.5% to 30%. During this period, the market leader’s ‘on-time performance’—defined as taking off or landing within 15 minutes of the scheduled time—has taken a beating: down from 72% to 56%. Its fall is most pronounced in the past year (chart 1), and it trailed SpiceJet and Jet Airways in December 2016. Even other airlines have seen drops in Mumbai, but none as much as IndiGo.

In late December, IndiGo wrote to the aviation regulator, citing issues with data-collection methods followed by the GVK Group-run Mumbai airport to compute on-time performance. These methods, it alleged, were inaccurate and favoured rival airlines. The regulator has since set up a panel to examine the issue, opening another front of friction between airlines. On-time performance data put out by the Mumbai airport shows that IndiGo is losing out in the busy part of the day (chart 2), though it was the best in controlling what’s in its hands (chart 3).

 

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Why Indian airlines favour international flights over domestic ones

This piece originally appeared on Livemint.com

 

India this month relaxed rules for new airlines wishing to fly overseas. The consistent demand from these airlines for easier rules has been due to a single reason: the favourable economics of international flights over domestic ones.

Higher growth and margins

Jet Airways leads all airlines in international air passenger traffic in and out of India. International operations accounted for 56% of Jet’s revenues in 2015-16, but it started flying abroad in 2004.

Today, a more illustrative representation of the potential of the international segment for a new airline is IndiGo, which started foreign flights in 2011. At Rs1,470 crore, international flights accounted for 9.1% of IndiGo’s total revenues in 2015-16. But on every headline growth and profitability metric, IndiGo’s international piece is outperforming its domestic piece (launched in 2006). That’s partly because of the longer distances flown, even for IndiGo, which does short-haul international flights only, unlike Air India and Jet, which do both short-haul and long-haul flights.

 

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Greater share of India’s international air traffic

The share of Indian airlines in India’s international air passenger traffic has increased in the last decade. In 2014-15, 15 airlines accounted for 75% of this traffic. In this bucket are all the five Indian airlines allowed to fly abroad, with a cumulative share of about 37%. IndiGo and SpiceJet, which started international flights only in 2011 and 2010, respectively, and oriented their international operations around shorter routes, are already ranked nine and 10, respectively.

 

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Volumes in the shorter routes

For an Indian airline looking to fly international, volumes are in the shorter routes to the Middle East and Asia-Pacific. The likes of IndiGo and SpiceJet have capitalized on this, in the process mostly preserving their low-cost character and fleet portfolio. Among the top 15 countries, which account for 88% of India’s international traffic, 12 are short-haul routes with India. Likewise, of the top 15 city routes, which account for 30% of India’s international traffic, 13 are short-haul.

 

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Source: Directorate General of Civil Aviation (DGCA), financial results of InterGlobe Aviation Ltd (which operates IndiGo) and Jet Airways (India) Ltd.

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News in Numbers, June 14, 2016: Microsoft acquires LinkedIn, air ambulances in India…

$26.2 billion

What is it? The size of Microsoft – LinkedIn deal.

Why is it important? This is Microsoft’s biggest acquisition ever. It’s expected to help Microsoft in its path to become a business services company, and strengthen its suite of products – with Linkedin’s networking platform complementing Microsoft’s work tools including Office (which has 1.2 billion users).

Tell me more: Microsoft is buying Linkedin at $196 per share, a 50% premium to the closing price on Friday. “Essentially, we’re both trying to do the same thing but coming at it from two different places: For LinkedIn, it’s the professional network, and for Microsoft, the professional cloud,” according to Jeff Weiner, chief executive officer of LinkedIn.

 

210-220 million

What is it? Overall estimated iPhone shipments in 2016, 8.6% lower than those in 2015.

Why is it important? This would the first fall in Apple’s flagship smartphone since its launch in 2007. Apple still relies on iPhones for two-thirds of its total sales and reported its first quarterly revenue decline since 2003 in the January-March 2016 period.

Tell me more: In a May report, Yuanta Investment Consulting had estimated that iPhone shipments would see a year-on-year decline of 12% to 207 million units this year. Apple is expected to launch its new model (iPhone 7) in September and new versions tend to boost sales, if they are significantly better than the previous ones.

 

Rs 2,250

What is it? The amount passengers of Spicejet, Indigo and GoAir need to pay (in addition to fare difference) for changing the name on tickets now. In 2010, this was Rs 1,500 plus fare difference, according to a study.

Why is it important? An example of how Indian airlines have increased the prices for almost all the different services including seat cancellation and infants or minors travelling unaccompanied, except for the tickets. While this may be viewed as an additional burden on unsuspecting passengers, experts say such a move would encourage first-time customers and expand the market.

Tell me more: Last weekend, the Civil Aviation Ministry proposed some new norms for services/charges including excess baggage, denied boarding and cancellation, and has given two weeks to its stakeholders to submit their suggestions and comments on the same.

 

21

What is it? The number of MLAs whose fate hangs in the balance after the President rejected a Bill of the Delhi government that seeks to amend the law on ‘Office of Profit’.

Why is it important? The Delhi government passed a bill that seeks to retrospectively exempt these MLAs, appointed as Parliamentary Secretaries last March, from the list of ‘Office of Profit’ and validate their posts. An elected member cannot hold an office of profit or hold positions that give them more financial and executive powers. There is a possibility that the 21 seats may now face by-elections.

Tell me more: The President has referred the issue to the Election Commission, which has sought the replies of the legislators and will fix a date for hearing to decide the fate of the legislators.

 

Rs 17,999

What is it? The annual subscription for a family for helicopter ambulance services to be launched by Bengaluru-based Aviators Air Rescue in the five southern states – Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Telangana – in three months.

Why is it important? The company would be the first one in India to offer services under the recently notified Helicopter Emergency Medical Services guidelines. Besides being airlifted to a healthcare facility in case of an emergency, the subscription would also cover last-mile ambulance charges of Rs 15,000 and preliminary hospital charges of Rs 85,000.

Tell me more: The air ambulances would land on pre-approved helipads and has partnered with 2,000 hospitals and ambulance services for the last-mile connectivity. The company, which will launch its services with three helicopters, plans to add seven more to its fleet to extend its coverage to the entire country by April 2017. For an individual, the annual subscription is Rs 8,999.

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