Business in brief: Adani's foray will make India net exporter of aluminium

On Wednesday (August 17), the BSE Sensex rose 379 points in morning trade to 59,842 while the Nifty50 climbed 127 points to 17,825 points. As per ICICI Direct, the rupee is expected to depreciate today (August 17) amid weak inflation data in India.

The annual inflation rate hit a five-month low of 6.71 per cent in July of 2022 from 7.01 per cent in June, compared to market forecasts of 6.78 per cent. USD/INR (August) is likely to trade in a range of 79.80-80.10.

Adani Group

The multi-billion conglomerate is expected to foray into aluminium production.

Impact: India is a net importer of aluminium; if this project gets approval, the country may become a net exporter of alumina. Alumina is an intermediate product in the aluminium production process.

Also read: Odisha clears Adani alumina project, 9 others worth ₹74,000 cr

Earlier, Adani had raised a loan of ₹6,071 crore to fund a subsidiary which is into copper production. The new funding will help it set up a 1 million tonne per annum copper refinery in Mundra, Gujarat. To put the new plan in perspective, an electric vehicle needs about 100 kg of copper.

Salary hikes

India Inc is set to offer more significant salary increases next year, according to WTW, a global advisory firm.

Impact: The demand for talent is so high in the country that an average hike of around 2-3 per cent is seen as a negative. The corporates are now willing to offer between 9-11 per cent hikes.

Bank deposits

Several banks in the country are now offering higher interest rates for depositors to fuel the demand for loans ahead of the festival season.

Impact: The RBI had earlier said that banks should not rely on it to fund them. Instead, they should look for ways to generate their own funds. Hence, the rush to offer higher rates to depositors.