Business News Highlight: Gas Prices Push US Consumer Price Index To 3.7% In August
Business News Highlight: Please follow this space for all the breaking news and latest updates from the Stock Market, economy and corporate world.
The US Labor Department on Wednesday said the consumer price index (CPI) rose 3.7 per cent in August from a year ago, up from 3.2 per cent in July. On a monthly basis, prices increased 0.6 per cent. Gas prices spiked nearly 11 per cent in August.
Excluding the fluctuating food and energy sectors, core prices, often referred to as "core inflation," increased by 4.3 per cent. This represents a decrease from the 4.7 per cent recorded in July and marks the smallest rise in nearly two years, according to a CNBC TV18 report. It's important to note that this figure remains significantly above the Federal Reserve's target of 2 per cent inflation.
Rating agency Icra has raised its growth projection for the Indian steel industry in the current fiscal year to 9-10 per cent, citing strong government capital expenditure. Initially, the agency had anticipated the steel sector to expand within the range of 7-8 per cent for the 2023-24 fiscal year, as per their statement.
"Icra has revised the FY2024 domestic steel demand growth forecast upwards to 9-10 per cent now, from 7-8 per cent made at the start of the current fiscal, on the back of strong government capital expenditure," the statement said, as per PTI.
On the first day of Initial Public Offer (IPO), R R Kabel Limited, a manufacturer of wires and cables, garnered a subscription of 25 per cent, reported PTI. The IPO saw a total of 32,78,072 shares bid for, out of the 1,33,17,737 shares available for subscription, the report said citing NSE data. Within the investor categories, Retail Individual Investors (RIIs) subscription rate stood at 36 per cent, while non-institutional investors subscribed at 29 percent.
R R Kabel Limited's IPO comprises a fresh issue of up to Rs 180 crore along with an offer for sale (OFS) of up to 1,72,36,808 equity shares. The price range for the offering is set between Rs 983 to Rs 1,035 per share, potentially yielding up to Rs 1,964 crore at the upper end of the price band. Notably, the company has said that it already secured Rs 585.62 crore from anchor investors on Tuesday.
Japanese real estate firm Sumitomo Realty & Development Company is set to acquire a substantial 22-acre land parcel in central Mumbai from Bombay Dyeing for a sum of Rs 5,200 crore, reported PTI. This deal taking place in Worli, is set to be one of the largest land sale deals ever in Mumbai's financial history, the report said.
The acquisition by Sumitomo's subsidiary, Goisu, will take place in two phases. Initially, a payment of Rs 4,675 crore will be made, with the remaining Rs 525 crore to be settled upon the fulfillment of specific conditions, as outlined in Bombay Dyeing's exchange filing.
The Bombay Dyeing board convened on Wednesday to give their nod of approval to the sale. However, the final green light must come from the company's shareholders, the official statement said.
Bank of India on Wednesday said it has raised Rs 2,000 crore through tier II bonds at a coupon rate of 7.88 per cent. In an exchange filing the PSB said that the amount was mopped up on the electronic bidding platform of the NSE. It received 83 bids worth Rs 3,770 crore against the Rs 2,000 crore offer.
The money will be used to augment the overall capital of the lender and enhance the long-term resources in accordance with the Reserve Bank of India guidelines. The amount will not be used to finance any particular project, the Bank added.
GMR Smart Electricity Distribution Private Ltd (GSEDPL), a subsidiary of the GMR Group, has secured a significant contract worth Rs 2,469.71 crore for the installation of smart meters in Uttar Pradesh. The Letter of Award (LOA) was granted by Dakshinanchal Vidyut Vitran Nigam Limited (DVVNL) for the Agra and Aligarh zones, said GMR Power and Urban Infra Ltd (GPUIL) in a regulatory filing.
Under this contract, GSEDPL will be responsible for the installation, integration, and maintenance of 25.52 lakh smart meters in the specified areas. The entire project is anticipated to be completed within a timeframe of 27 months.
The Power Finance Corporation (PFC), a government-owned firm, has obtained the shareholders' approval to issue bonus shares by capitalising an amount of up to Rs 660.02 crore from its securities premium account. The PFC's proposal involves the issuance of bonus shares in a manner where each shareholder will receive a new equity share with a nominal value of Rs 10 for every four existing equity shares, each also having a nominal value of Rs 10.
"All business items proposed for the 37th AGM of the company have been approved with requisite majority," a BSE filing said.
The proposal was listed for the annual general meeting (AGM) held on September 12. The PFC's board, at its meeting on August 11, recommended issuing bonus shares to shareholders in the proportion of 1:4 by capitalising Rs 6,60,02,03,520 in the securities premium account.
A Paper mill industry body has said that over 100 paper mills are projected to join the energy efficiency initiative known as Perform Achieve and Trade (PAT) by the upcoming year, reported PTI. This trend is driven by companies embracing technology to diminish their energy usage.
According to the Indian Paper Manufacturers Association (IPMA), the paper sector has successfully reduced its specific energy consumption by 20 per cent over the past five years. Furthermore, integrated paper mills in India are now generating more than 40 per cnet of their power needs by utilising biomass derived from the pulping process.
"More than 100 paper mills are expected to come under the ambit of the PAT scheme in the next one year,” IPMA Vice President Vadiraj Kulkarni said on Wednesday, as per the report.
Signature Global (India) Ltd is set to make its market debut on September 20 through an Initial Public Offering (IPO) aimed at raising Rs 730 crore, reported PTI. Last year in July, the Delhi-based firm submitted its Draft Red Herring Prospectus (DRHP) to the capital markets regulator, SEBI.
As outlined in the Red Herring Prospectus (RHP) filed on Tuesday, the IPO's total size is set at a maximum of Rs 730 crore. This includes a fresh issue of shares worth up to Rs 603 crore and an offer for sale (OFS) of up to Rs 127 crore. The company has laid out its intentions to allocate Rs 264 crore for the repayment or prepayment of specific borrowings, either in full or in part. Additionally, it plans to inject Rs 168 crore into its subsidiaries to facilitate the repayment or prepayment of certain borrowings they have undertaken.
The remaining funds will be earmarked for pursuing inorganic growth strategies through land acquisitions and for general corporate purposes.
Signature Global started operations in 2014 through its subsidiary Signature Builders Pvt Ltd with the launch of the 'Solera' project on 6.13 acres of land in Gurugram, Haryana, noted the report.
The government has granted a capital gains tax exemption to units of investment trusts and ETFs issued by entities located in GIFT City or traded on its exchanges, reported PTI. The Central Board of Direct Taxes (CBDT) has officially notified that units of investment trusts, units of schemes, and units of Exchange Traded Funds (ETFs) established under the International Financial Services Centres Authority (Fund Management) Regulations, 2022, are now exempt from capital gains tax.
Gujarat International Finance Tec-City (GIFT)-IFSC is being actively promoted as a tax-neutral zone for the financial sector.
The Cabinet on Wednesday approved the FDI proposal for foreign investment of up to Rs 9,589 crore in Suven Pharmaceuticals Ltd by Cyprus-based firm Berhyanda Limited.
"The approval is for acquisition of up to 76.1 per cent equity shares of Suven Pharmaceuticals Limited...by Berhyanda Limited, Cyprus, by way of transfer of shares from existing promoter shareholders and public shareholders through mandatory open offer," a release said.
Logistics company Blue Dart announced on Wednesday that it has rebranded it’s premium service in India, from Dart Plus to Bharat Dart. The company shared the announcement via an exchange release. “This strategic transformation marks a milestone in Blue Dart's ongoing journey, underscoring its unwavering commitment to serving the diverse needs of Bharat,” the release said.
Notably, during the G20 Summit opening in New Delhi last week, Prime Minister Narendra Modi’s placard referred to India as ‘Bharat’. Further, President Droupadi Murmu in her dinner initiation for a reception of G20 leaders referred to herself as the ‘President of Bharat’. These developments have sparked controversy and media reports are floating around speculating that the government is considering officially adopting ‘Bharat’ as the name of the country.
The two key equity benchmarks, Sensex and Nifty, on Wednesday closed in the green amid mixed global trends. The indices got a boost from the investors following a better-than-expected retail inflation data for August. The S&P BSE Sensex jumped 246 points to close at 67,467. On the other hand, the Nifty50 settled at 20,070, up 77 points.
On the 30-share Sensex platform, Airtel, Titan, IndusInd Bank, Axis Bank, SBI, NTPC emerged gainers. On the downside, M&M, L&T, Nestle, JSW Steel, TCS, TechM were among the losers.
The central government approved a foreign direct investment (FDI) worth Rs 9,589 crore in Suven Pharmaceuticals by Berhyanda Ltd. on Wednesday, an official release after the meeting of the Cabinet Committee on Economic Affairs said. Cyprus-based Berhyanda is looking to acquire up to 76.1 per cent stake in Suven Pharmaceuticals through the investment by way of transfer of shares from existing promoter and public shareholders via a mandatory open offer. The release further stated that the aggregate foreign investment in Suven might increase up to 90.1 per cent.
Union Minister Nitin Gadkari said on Wednesday that the government has no plans to mandate the six airbags rule for cars. The Minister of Road Transport & Highways revealed the information while speaking at the annual Automotive Component Manufacturers Association (ACMA) meeting in New Delhi. In October last year, the government announced that it plans to make six airbags mandatory in all eight-seater vehicles for enhanced safety.
The government on Wednesday authorised the release of Rs 1,650 crore to oil marketing companies for providing 75 lakh LPG connections under the Pradhan Mantri Ujjwala Yojana, Union Minister Anurag Thakur informed the press. With the additional 75 lakh connections, the total beneficiaries under the PMUY scheme will increase to 10.35 crore.
Byju's on Wednesday refuted accusations that its US subsidiary, Alpha Inc concealed $533 million within an obscure hedge fund. The company clarified that this transaction was completely in compliance with its credit agreement with lenders. The company said the agreement allows for the movement and investment of funds disbursed under its terms, without any restrictions or limitations.
In the latest development in the ongoing dispute between Byju's and its lenders, a Bloomberg report on Wednesday revealed allegations that the edtech firm concealed $533 million within a relatively unknown hedge fund, one that had previously claimed to operate out of an IHOP pancake restaurant in Miami.
Coffee Day Global Ltd (CDGL) reached a settlement with it’s financial creditor IndusInd Bank, the counsel representing both parties informed the National Company Law Appellate Tribunal (NCLAT)’s Chennai bench on Wednesday. As such, the NCLAT decided to set aside the insolvency order against the company. Earlier in July, the Bengaluru bench of NCLAT passed an order over IndusInd Bank’s plea seeking dues of Rs 94 crore from the company.
The Reserve Bank of India on Wednesday issued new directions for regulated entities (REs) to promote responsible lending conduct and help borrowers. The banking authority stated in it’s release that with regards to the Fair Practices Code issued in 2003, REs are required to release all movable/immovable property documents after receiving full repayment and closure of the loan account. However, the regulator found the entities in violation of these guidelines.
Under the new guidelines, the RBI mandated that REs release all original property charges and remove charges registered with any registry within a 30-day period, post settlement of the loan account. It also said that if the delay in returning the documents is attributable to the entities, they should compensate the borrower at the rate of Rs 5000 for every day of the delay.
The rupee gained 3 paise and stood at 82.92 against the US dollar in early trade on Wednesday. The domestic unit on Tuesday closed at 82.95 against the US currency on account of fresh foreign fund inflows and expectations of better macroeconomic data.
Sensex and Nifty on Wednesday erased early morning losses and were trading flat. The two indices tracked weakness among global markets following an ease in India's headline CPI inflation for August. The BSE Sensex was trading marginally higher by 9 points to 67,230. On the other hand, the NSE Nifty was trading at 20,007, up 14 points.
The Civil Aviation Ministry said on Tuesday that it disposed of 6,577 public grievances and generated revenue of more than Rs 2.21 crore through scrap disposal as part of a special campaign from December 2022 to August this year. The ministry said the campaign was an initiative to promote cleanliness, ‘Swachhata’. Additionally, the ministry managed to free up 1,09,189 square feet of space and weeded out 11,283 files, it said.
Background
Business News Highlight: 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.
On Tuesday, the equity market ended the trading session flat amid high volatility ahead of the consumer price index (CPI)-based inflation data. The S&P BSE Sensex ended at 67,221, up 94 points. On the other hand, the NSE Nifty50 closed at 19,993, down 3 points.
Data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday showed that India's retail inflation in August eases to 6.83 per cent as vegetable prices cooled compared to the previous month. Retail inflation in July jumped to 7.44 per cent from 4.87 per cent in June, mainly due to higher food prices.
Food inflation declined to 9.94 per cent in August against 11.51 per cent in July. Rural inflation was on the higher side at 7.02 per cent, compared to urban inflation at 6.59 per cent in August. Notably, this is the second month in a row that inflation has stayed above the upper bound of the Reserve Bank of India's (RBI) tolerance level of 2-6 per cent.
Meanwhile, in the index of industrial production (IIP) growth for July came at 5.7 per cent against 4.8 per cent in June.
Apple officially unveiled the much-awaited iPhone 15 with a 48MP main camera, with a 26mm focal length, 2-micron quad pixel sensor and 100 per cent Focus pixels in "Wonderlust" event on Tuesday. The iPhone 15 comes with a new camera system, Apple said.
Here are some important factors that can impact the market on September 13
According to analysts, investors will closely monitor various factors in the stock market, including foreign fund inflows, domestic and US inflation data, crude oil prices, and global cues, among others.
One key event to watch is the US CPI inflation data scheduled for September 13. In July, the consumer price index showed a modest increase, marking the first rise in over a year, with a year-on-year increase of 3.2 per cent. Analysts are anticipating a further uptick in August, with expectations of the inflation rate reaching 3.6 per cent, reported Mint.
IPO Updates
RR Kabel's IPO is set to begin on September 13. The IPO is priced in the range of Rs 983 to Rs 1,035 per share. The company aims to raise Rs 1,964.01 crore through this offering, which includes Rs 180 crore from fresh issuances and Rs 1,784.01 crore offer-for-sale (OFS) of 1.72 crore equity shares.
Among other news, Mumbai's Jupiter Life Line Hospitals will finalise IPO share allotments by September 13, according to the report by Moneycontrol. Saroja Pharma Industries India and Pramara Promotions, both are making their debuts on NSE Emerge on September 13.
- - - - - - - - - Advertisement - - - - - - - - -