Business News Highlights: SEBI Planning To Roll Out One-Hour Trade Settlements Soon, Says Chairperson Madhabi Puri Buch
Business News Highlights: Please follow this space for all the breaking news and latest updates from the Stock Market, economy and corporate world.
Oil prices surged by approximately 2 per cent on Tuesday following the announcement of a fresh extension to voluntary supply cuts by Saudi Arabia and Russia, reported Reuters. These cuts, amounting to a combined reduction of 1.3 million barrels per day (bpd), will now continue for an additional three months, extending through December, the news agency said.
In response, Brent crude futures for November (LCOc1) saw an jump of $1.44, equivalent to around 1.6 per cent, reaching $90.44 per barrel by 1334 GMT. This marks the first time Brent crude has surpassed the $90 threshold since last November. At the same time, US West Texas Intermediate crude (WTI) October futures (CLc1) experienced a rise of $1.85, approximately 2 per cent, bringing the price to $87.4 per barrel.
SEBI Chairperson Madhabi Puri Buch on Tuesday said that the market regulatory is planning to roll out one-hour trade settlements soon.
"My belief, cemented by my observation over last few years, is that incumbents are now morphing into fintechs. For instance, stock exchange is now a Fintech. From T+2 settlement, we have moved to T+1. We are now talking about moving from T+1 to instantaneous settlement," Buch said speaking during Global Fintech Fest 2023, reported Moneycontrol.
"When incumbents, who have the cashflow and the manpower, put their mind to it and apply modern technology, they become new rocketships," she added.
IDBI Bank has challenged the National Company Law Tribunal (NCLT) decision to grant approval for the merger involving Zee Entertainment Enterprises Ltd and Culver Max Entertainment, previously known as Sony Pictures Network India. Zee informed regarding the development in a regulatory filing on September 5.
"This is to intimate you that the Company has been served with an appeal on behalf of IDBI Bank Limited against the Company before the NCLAT, Delhi," it stated.
In the order issued on August 10, the Mumbai-bench of NCLT had approved Zee's $10 billion merger with Culver Max, dismissing all objections.
Reliance's demerged financial arm Jio Financial Services (JFS) will be removed from the NSE Indices from September 7, the National Stock Exchange said in a press release on Tuesday. The stock exchange also said that if JioFin shares hit the price band on September 6, the exclusion shall not be deferred further.
"In accordance with the index methodology, as JIOFIN has not hit price band on two consecutive trading days on September 4, 2023 and September 5, 2023 at NSE, the Index Maintenance Sub-Committee (Equity) has decided to exclude JIOFIN from various indices effective from September 7, 2023 (close of September 6, 2023)," the press release stated on September 5.
Inflation in India is estimated to stay towards the higher end in the next few months, S&P Global Ratings Economist (Asia Pacific) Vishrut Rana said on Tuesday. However, Rana added, government measures and policies will help prevent inflation from increasing any further.
Talking about the below average rainfall received in the monsoon so far, Rana pointed out that this will leave an impact on grain prices even as the government imposes curbs and bans on exports of food items to control domestic supply and prices, reported PTI. Further, the economist noted that the inflation will depend more on energy prices as the government is keeping a tab on food prices.
Sensex and Nifty, on Tuesday logged their third-straight gains as pharma, FMCG, and select IT stocks settled higher. The S&P BSE Sensex, which slipped over 200 points to touch a low of 65,601, rebounded and hit a high of 65,832, and eventually closed 152 points up at 65,780. On the other hand, the NSE Nifty touched a high of 19,587, and settled with a gain of 46 points at 19,575. On the 30-share Sensex platform, Sun Pharma gained 2 per cent, followed by Titan, ITC, Bajaj Finance, Nestle, Infosys. On the downside, UltraTech Cement, Maruti, HDFC Bank, NTPC, Wipro, SBI were among the main losers.
Daimler India Commercial Vehicles (DICV) announced on Tuesday that it has appointed Sreeram Venkateswaran as the president and chief business officer for domestic sales and customer service. The company in it’s statement added that Venkateswaran will oversee the growth of domestic business, enhancing sales of BharatBenz, and service network among others. Venkateswaran worked as the CEO at MLL Express Services before joining DICV in the new capacity, reported PTI.
Food delivery company Swiggy has joined hands with SUN Mobility to power it’s e-bikes delivery fleet over the next 12 months, the company said on Tuesday. Swiggy will use this partnership to power it’s 15,000 e-bikes and reduce it’s carbon dioxide emissions by 20,000 tonnes annually, the company stated. Further, the online food delivery company plans to encourage it’s existing delivery executives to shift to electric vehicles, as part of it’s commitment to cover 8 lakh kilometres on a daily basis through EVs by 2025, reported PTI.
The government plans to launch a second round of production linked incentive (PLI) scheme for millet-based foods processing in the country, Anita Praveen, secretary in the Ministry of Food Processing Industries, said on Tuesday. The secretary informed that the scheme is currently in the approval stage and consists an amount of Rs 1,000 crore, reported PTI.
The Central Bureau of Investigation has arrested an executive director of GAIL in the Rs 50 lakh bribery case, officials said on Tuesday. In the alleged bribery case, some contractors were favoured in the gas pipeline projects and bribes were used for the same. In addition to Executive Director K B Singh, four others have been placed under arrest by the CBI, reported PTI.
Union Finance Minister Nirmala Sitharaman at the Global Fintech Fest (GFF) in Mumbai on Tuesday asked banks and financial institutions to ensure that their customers nominate heirs, which can help reduce the quantum of unclaimed money. The finance minister also said that it is essential to build a responsible financial ecosystem, and added that one laggard can cause a disruption. She also said that tax havens and round tripping of money are a threat to responsible financial ecosystem. She asked fintech companies to invest in cybersecurity and said that trust is very important.
Removing the non-tariff barriers across G20 nations will facilitate in increasing India’s exports of alcoholic beverages, the Confederation of Indian Alcoholic Beverage Companies (CIABC) said on Tuesday. The association noted that removing barriers like minimum maturation condition for whisky will help India in enhancing it’s alcoholic beverage exports.
The CIABC Director-General Vinod Giri noted that the G20 nations collectively account for 80 per cent of the world’s alcoholic beverages imports, however, India has a share of a mere 0.1 per cent of the imports. Additionally, the G20 members allow higher product prices and better operating margins, reported PTI.
The Securities and Exchange Board of India (SEBI) has given it’s approval to Samhi Hotels and Motisons Jewellers to raise funds through an initial public offering (IPO), the regulator updated on Tuesday.
Branded hotel ownership and asset management company Samhi Hotels has floated an IPO consisting of equity shares worth Rs 1,000 crore and an offer for sale (OFS) for 90 lakh shares by existing shareholders, reported PTI. Jaipur-based retail jewellery company Motisons Jewellers has proposed an IPO comprising a fresh issue of 3.34 crore equity shares, without any OFS component.
Tata Steel announced that it will do a total payout worth Rs 314.70 crore as an annual bonus to it’s employees for the year 2022-23 after signing the Memorandum of Settlement with the Tata Workers’ Union in Jamshedpur, the company said in a statement on Monday.
Under the bonus, the minimum and maximum annual premium payable for the year will be Rs 42,561 and Rs 4,61,019 respectively, reported PTI. The company noted that most of its employees draw salaries higher than the limit mentioned in the Payment of Bonus (Amendment) Act, 2015, and thus, are not eligible for the bonus. However, the company has decided to give out bonus to all it’s employees in the unionized category, it stated.
India’s services sector’s purchasing managers’ index (PMI) fell to 60.1 in August, down from 62.3 in July, according to the data released by S&P Global on Tuesday. However, the seasonally adjusted services PMI index displayed a record-strong increase in output, not seen for more than a decade. The S&P index noted that the latest growth is a result of positive consumer sentiment, ‘favourable market conditions, and successful events’. The services PMI further revealed that total new business was on the upward trend for the twenty-fifth consecutive month during August. Further, manufacturers overtook the services sector and emerged as the best performers. As such, the S&P Global India Composite PMI Output Index fell from 61.9 in July to 60.9 in August.
Automobile retail sales in India increased by 9 per cent in August on account of growth in sales in all segments, including passenger vehicles and two-wheelers, the Federation of Automobile Dealers Association (FADA) stated on Tuesday. Total retail sales grew to 18,18,647 units last month, up from 16,74,162 units sold in the same period a year earlier. Further, the industry’s outlook for September remains positive on account of the festive season, improvement in liquidity and supply chains across categories, reported PTI.
Fintech company Paytm reported sustained growth in it’s payments and loan distribution business in August. The company, via an exchange release on Tuesday, stated that it provided 87 lakh devices to subscribers and distributed loans worth Rs 5,517 crore through the Paytm platform in August 2023. The company’s gross merchandise value for the quarter to date (for July and August), was worth Rs 3 lakh crore, gaining 43 per cent on a YoY basis. Paytm reported a massive jump in it’s loan distribution business, with total loans disbursed through the Paytm platform for quarter to date (for July and August) increasing by 137 per cent on a YoY basis to Rs 10,710 crore.
Sensex and Nifty, on Tuesday that opened flat with a positive bias, were trading in the green despite tracking weak Asian cues. At 9.50 am, the S&P BSE Sensex went up by 145 points to 65,773. On the other hand, the NSE Nifty was trading at 19,575, up 46 points. On the 30-share Sensex platform, Sun Pharma, Titan, ITC, L&T, Nestle, HUL were among the early gainers. On the downside, JSW Steel, Tata Steel, Airtel, UltraCemco, HDFC Bank, Wipro emerged losers.
The industry might get about six months to align with the Digital Personal Data Protection Act, the Minister of State for Electronics and IT, Rajeev Chandrasekhar said on Monday. However, the minister added, that the real transition time will be decided after discussing with all the stakeholders.
The minister assured that the transition to the new regime will not cause disruption to any business, reported PTI.
The Securities and Exchange Board of India (SEBI) issued a circular stating that remittances to the SEBI Investor Protection Education Fund (IPEF) can only be made through the market regulator’s website. This move has been adopted by the regulator to streamline the payment process and increase accessibility for all the contributors to the fund.
Further, the regulator has created a new bank account to help participants to make payment to the fund. For the same, a link has been given on the SEBI website homepage, under the head ‘Click here to make payment to SEBI IPEF’, the regulator informed in it’s circular, reported PTI.
Background
Business News Highlights: Hello and welcome to ABP Live's Business LIVE blog. Please follow this space for all the breaking news and latest updates from the Stock Market, economy, and the corporate world. Here are some important events will be keeping an eye on September 5.
The two benchmark indices, Sensex and Nifty, ended Monday on a high note, with the S&P BSE Sensex up by more than 200 points and the Nifty50 up beyond the 19,500 mark. The stock market on Tuesday will be looking forward to domestic economic data, as per market analysts.
Market Moves
India’s services PMI, in addition to the composite purchasing managers’ index (PMI) data for August are both expected to be released on Tuesday. This is expected to leave it’s mark on the markets. Globally, China will release it’s services, composite PMI data along with forex data in the week.
Further, market saw foreign institutional investors (FIIs) sell stocks worth Rs 3,367.7 crore on Monday, while domestic institutional investors (DIIs) bought equities worth Rs 2,563.5 crore, as per the data from the NSE.
Crude expectations are projected to tend toward the higher end on possibilities of continued supply cuts from the OPEC+ group. Brent crude was trading around $89 a barrel on Monday.
IPOs and Debuts
Vishnu Prakash R Punglia will make it’s debut on the stock markets on Tuesday. The company received 87.82 times bids on the last day of it’s IPO. Jupiter Life Line Hospitals is expected to open it’s issue for public from September 6-8. The company's fresh issue will comprise 73.74 lakh equity shares coming up to about Ts 542 crore, and an offer-for-sale (OFS) worth Rs 327.1 crore. The price band is fixed in the range of Rs 695–735 per share. Additionally, Basilic Fly Studio Limited, Pramara Promotions Limited, and Saroja Pharma Industries India Limited will close bidding for their IPOs each on Tuesday.
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