Business News Highlights: Stock Market, MCX Closed For Trading Today On Account Of Good Friday
Business News Highlights: Please follow this space for all the breaking news and latest updates from the stock market, economy, and corporate world
India's foreign exchange reserves surged for the fifth consecutive week, reaching a new record high of $642.631 billion in the week ending March 22, as per the most recent data from the Reserve Bank of India (RBI). This marks an increase of $139 million during the reporting week. Gold reserves also saw an uptick from $347 million to $51.487 billion. According to the central bank's weekly statistical data, India's foreign currency assets (FCA), which constitute the largest portion of the forex reserves, experienced a slight decline of $123 million, reaching $568.264 billion.
Force Motors Ltd announced on Friday its intention to discontinue its involvement in the tractor and connected activity sector by the end of the current fiscal year. In a regulatory filing, the company revealed that its board of directors, during a meeting held on Friday, has opted to terminate the business line encompassing the production and distribution of agricultural tractors and related operations, effective after the fiscal year 2023-2024.
The decision forms part of the company's strategic initiative to streamline its product portfolio. Force Motors articulated its commitment to prioritize its core segments, including shared mobility transportation, last-mile mobility solutions, goods transportation, as well as the manufacturing of advanced technology critical components for premium luxury original equipment manufacturers (OEMs). Additionally, the company will focus on the development of specialized vehicles for both civil and defense applications.
The gross non-performing assets (GNPA) of the Indian banking system are projected to see further improvement, potentially reaching up to 2.1 per cent by the end of the fiscal year 2025, as per a released report on Friday. According to the report by the domestic rating agency Care Ratings, GNPAs are expected to range between 2.5 per cent and 2.7 per cent in FY24 and are anticipated to decrease further to 2.1-2.4 per cent by the conclusion of FY25. The Reserve Bank of India (RBI) started a comprehensive exercise in the mid-2010s, directing banks to classify certain stressed assets as NPAs to ensure accurate representation on balance sheets.
Foreign investors made a strong return by injecting more than Rs 2 lakh crore into Indian equities in 2023-24, driven by optimism surrounding the country's robust economic fundamentals amidst a challenging global environment. In the current fiscal 2023-24, Foreign Portfolio Investors (FPIs) have made a net investment of around Rs 2.08 lakh crore in the Indian equity markets and Rs 1.2 lakh crore in the debt market. Collectively, they pumped Rs 3.4 lakh crore into the capital market, as per data available with the depositories.
Pakistan's Finance Minister Muhammad Aurangzeb announced on Friday that the government is scheduled to convene a meeting with the IMF on April 14 and 15 in Washington. The purpose of this meeting is to deliberate on the specifics of a new bailout program that the financially strained country is pursuing.
During his visit to the Pakistan Stock Exchange, the minister, who serves under the Shehbaz Sharif government as the minister for finance and revenue, reiterated the government's intention to engage in a significant program with the International Monetary Fund. This programme aims to ensure macroeconomic stability, as reported by Geo News.
Aurangzeb said that the forthcoming meeting will focus on discussing the features of the new program. Additionally, he mentioned that comprehensive discussions regarding the program will take place in Pakistan, as outlined in the report.
Shareholders of the prominent educational technology firm, Think and Learn, which owns Byju's brand, did not oppose the proposal to increase the company's authorised share capital during the recent extraordinary general meeting held on Friday. None of the dissatisfied investors who proposed removing Byju's founder and family from the management team attended the meeting, company sources disclosed. "Meeting started at 10 am with approximately 20 investors representatives in attendance along with Think & Learn management. The requisite quorum required for EGM was there. A few questions regarding the postal ballot were asked and answered by the chairman and CS. Resolutions were called out. No objections raised," sources said.
Despite the high demand, the new supply of residential properties fell 15% from January to March across eight major cities, totaling 69,143 units, according to Cushman & Wakefield. New supply has shot up in Bengaluru and Mumbai while declining in Delhi-NCR, Chennai, Hyderabad, Pune, Kolkata, and Ahmedabad. Shalin Raina, Managing Director, Residential Services, Cushman & Wakefield said, "Over the past year, a significant rise in demand for high-end and luxury properties has emerged. This shift reflects a change in homebuyers' growing desire to invest in a place not only to live but as a high-quality asset that reflects their lifestyle aspirations."
RBI Deputy Governor Michael Debabrata Patra expressed optimism about India's economic prospects during his keynote address titled "The Indian Economy: Opportunities and Challenges" at Nomura’s 40th Central Bankers Seminar in Kyoto, Japan on March 25. He highlighted that India has the potential to achieve a growth rate of 10 per cent in the coming decade, positioning itself as the second-largest economy by 2032 and eventually becoming the largest economy by 2050.
Patra said that India's trajectory of growth is fueled by a combination of factors, including its resilience, transformative initiatives, and determination to overcome challenges. He noted that despite the setbacks caused by the pandemic, India has already demonstrated its capability to sustain growth rates exceeding 7 per cent, reminiscent of the pre-pandemic era. Patra's remarks underscored the significant momentum and potential for India's economic advancement in the foreseeable future.
Akasa Air has embarked on its international journey with the commencement of its first overseas flight from Mumbai to Doha, Qatar. The airline revealed that it has secured traffic rights for three additional international destinations: Kuwait, Jeddah, and Riyadh. According to the statement released on Thursday, Akasa Air intends to swiftly expand its presence across the globe in the forthcoming months.
Moreover, the airline emphasized that its strategically planned flight schedule will offer travelers from various domestic cities such as Ahmedabad, Goa, Varanasi, Lucknow, Bengaluru, Kochi, and Delhi a plethora of connecting options for seamless travel to and from Doha via Mumbai.
Within the country, Akasa Air operates from a multitude of cities including Mumbai, Ahmedabad, Bengaluru, Chennai, Kochi, and others, solidifying its position as a key player in the domestic aviation sector.
In observance of Good Friday, banks in several states will remain closed on March 29, 2024. Throughout March 2024, banks nationwide will be shut for a total of 14 days, as outlined in the Reserve Bank of India's holiday schedule. These closures encompass all Sundays, the second and fourth Saturdays, public holidays, and various regional holidays. The RBI has classified these holidays under the Negotiable Instruments Act, Real-Time Gross Settlement Holidays, and Banks' Closing of Accounts. Notably, banks will remain operational today in Tripura, Assam, Rajasthan, Himachal Pradesh, Jammu, and Srinagar.
Background
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The BSE and NSE remained closed for trading on Good Friday. Along with, trading in derivatives, equities, SLBs, and currency derivatives, as well as the interest rate derivatives segment and the Multi-Commodity Exchange of India (MCX), the nation's largest commodity market, will also remain shut on Friday. This marks the end of a holiday-shortened week, with only three days of trading due to the closure of equity markets on Monday (March 25) for Holi festivities.
In the previous trading session on Thursday, the stock market concluded the final day of trading for the 2023-24 fiscal year on a positive note. Favorable global cues led to significant buying activity in power, auto, and banking stocks, propelling domestic indices upward. The S&P BSE Sensex surged to a peak of 74,190 points, eventually closing at 73,651, marking a gain of 655 points. Similarly, the NSE Nifty50 reached a high of 22,516 points before settling at 22,327, reflecting an increase of 203 points.
On the other hand, Union Finance Minister Nirmala Sitharaman said the nation's strong economic performance, pointing out three consecutive quarters with growth rates surpassing 8 per cent. She particularly highlighted the remarkable growth rate of 8.3 per cent in the third quarter. "Three continuous quarters, we have had more than 8 per cent growth. 8.3 was quarter three," said Nirmala Sitharaman.
The growth of eight crucial infrastructure sectors saw a slump, reaching 6.7 per cent in February, as reported by official data released on Thursday. This deceleration was primarily attributed to the underperformance of sectors such as fertiliser. In January, the growth rate of these eight core sectors stood at 4.1 per cent, contrasting with a robust 7.4 per cent recorded in February 2023.
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