OPEC cuts its 2022 global oil demand forecast again following the war in Ukraine
Focus on India – Rupee Hits Record High as Stocks Fall; Air India gets a new chef; Ford abandons plans to export electric vehicles
MUMBAI: Indian stocks fell more than 2% on Thursday and the rupee hit an all-time low as investors shun riskier assets ahead of inflation data, which could bolster fears of further rises in rate.
The NSE Nifty 50 index fell 2.22% to close at 15,808 and the S&P BSE Sensex fell 2.14% to 52,930.31. Both indexes recorded their fifth straight session of losses and hit a two-month low.
The Indian rupee plunged to a record low for the second time this week, hitting 77.63 against the dollar. It settled at 77.5025.
New chef for Air India
Air India’s new owner, Tata Sons, announced on Thursday that it will appoint Campbell Wilson, the head of Singapore Airlines’ low-cost carrier Scoot, as chief executive, subject to regulatory approvals.
Wilson, 50, born in New Zealand, will step down from his current role on June 15, Singapore Airlines has announced.
Tata Sons completed the purchase of India’s former national carrier in January and is looking for an executive to lead a major turnaround plan.
Wilson’s appointment comes after Turkey’s Ilker Ayci decided not to take on the role of chief executive of Air India after news of his appointment sparked opposition in India over his previous political ties.
Air India Chairman N. Chandrasekaran said he was delighted to welcome Wilson, describing him as an industry veteran who has worked in key global markets in many capacities.
“Air India is on the cusp of an exciting journey to become one of the best airlines in the world, offering world-class products and services with a distinct customer experience that reflects Indian warmth and hospitality,” said Wilson said in a statement.
“I am delighted to join colleagues at Air India and Tata in the mission to realize this ambition.”
Ford turns around and abandons plans to export electric vehicles from India
Ford Motor Co. said on Thursday it had abandoned plans to manufacture electric vehicles in India for export, as it explored options for its two plants in the country that halted production last year.
The U.S. automaker announced in February that it would manufacture electric vehicles in India and also won approval for the Indian government’s $3.5 billion production-linked incentive program for manufacturing fuel-powered vehicles. own.
“After careful consideration, we have decided to no longer pursue the manufacture of electric vehicles for exports from one of the Indian factories,” a Ford India spokesperson said in an email.
The company did not provide details on its U-turn, but added that its previously announced corporate restructuring is proceeding as planned, including exploring alternatives for its manufacturing facilities in India.
“We continue to work closely with unions and other stakeholders to come up with a fair and balanced plan to mitigate the impacts of restructuring,” the spokesperson added.
India’s economic growth set to slow
India’s economic growth rate is expected to slow if the central bank raises interest rates, Finance Secretary TV Somanathan told CNBC TV18 on Thursday.
India’s central bank is expected to raise its inflation forecast for the current fiscal year at its June monetary policy meeting and will consider further interest rate hikes, a source said on Wednesday.
The central bank raised its repo rate by 40 basis points to 4.40% following an emergency meeting earlier this month.
(Contributed by Reuters)