Business News Highlight: Market, G-Secs, Forex To Remain Operational On Friday, Says RBI
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The two key equity benchmarks, Sensex and Nifty, on Wednesday recouped losses and rebounded sharply in the second half of the session. The BSE Sensex closed 173 points higher at 66,119. On the other hand, the Nifty50 reclaimed 19,700-mark to shut shop at 19,716, up 52 points. Both indices hit intraday lows of 65,550 and 19,554, respectively. On the 30-share Sensex platform, L&T, ITC, Sun Pharma, Maruti Suzuki, Reliance Industries, Axis Bank lifted the benchmarks, rising up to 1.7 per cent. On the downside, Titan, SBI, HDFC Bank, ICICI Bank, Tata Steel, Nestle were among the losers.
Wall Street's main indexes dropped on Tuesday as investors continued to grapple with the prospects of a prolonged restrictive monetary policy by the Federal Reserve and its subsequent impact on the economy.
Asian markets including Seoul, Tokyo, Shanghai, and Hong Kong ended trading in green. European markets closed in red on concerns over interest rate decisions from central banks in the UK and Switzerland among others. Global oil benchmark Brent crude climbed 0.98 per cent to $94.88 per barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 693.47 crore on Tuesday, according to exchange data.
The rupee made a recovery on Wednesday and closed 6 paise higher at 83.22 against the US dollar over it’s previous close, amid positive signals from the domestic equity markets. The domestic unit opened trading at 83.23 and traded in a range of 83.18 to 83.24 to settle at 83.22 (provisional) against the greenback. It closed at 83.28 against the American dollar on Tuesday. Forex traders noted that selling pressure from foreign equity investors and increased crude prices coupled with the strength of the American currency impacted the domestic unit.
Here are some important factors that can impact the market on September 28.
Globally, markets will keenly observe the final economic growth data from the US for the second quarter of the calendar year set to be released on September 28, followed by a speech from Fed Chair Jerome Powell on September 29. The US is scheduled to reveal real consumer spending and PCE prices for the second quarter of the calendar year 2023 on September 28. Further, initial jobless claims for the week ended September 23 and pending home sales for August will be announced by the US on Thursday. The European Central Bank will hold it’s general council meeting on September 28. The EU will announce it’s consumer confidence final and economic, industrial, and services sentiment for September on September 28. China will be releasing it’s current account numbers for the second quarter of the calendar year 2023 on Thursday. Japan is expected to come out with it’s retail sales, housing starts, and construction orders for August on September 29. The UK will release it’s GDP numbers for the June quarter of 2023 and it’s current account data on September 29. Domestically, India is set to announce it’s current account and external debt numbers for the second quarter towards the end of the week. Additionally, infrastructure output data for August is scheduled to be announced on September 29.
Market, G-Secs, Forex To Remain Operational On Friday, Says RBI
Government securities, foreign exchange, money and rupee interest rate derivatives markets will remain open on Thursday and Friday, the Reserve Bank of India said in a statement on Wednesday. The Maharashtra government has declared September 29 as a public holiday under Section 25 of the Negotiable Instruments Act, 1881. The public holiday on September 28, 2023 declared earlier has been cancelled.
RBI said, "To ensure smooth functioning of the financial markets and non-disruptive settlement of transactions especially in view of the quarter/ half year end, it has been decided, in public interest, to keep the government securities market, foreign exchange market, money market and rupee interest rate derivatives market operational on September 29, 2023 in addition to being operational on September 28, 2023."
It further said settlement of the auction of Government of India treasury bills conducted on Wednesday (September 27) will take place on September 29. The auction of Government of India Dated Securities scheduled on September 29 will now be conducted on September 28, with settlement on September 29.
The underwriting auction for sale of government securities will also be conducted on September 28, RBI added.
Exicom Tele-Systems Files Draft Papers With SEBI To Raise Fund Through IPO
Power management solutions provider Exicom Tele-Systems Ltd has filed draft papers with SEBI to raise funds through an Initial Public Offering (IPO), PTI reported on Thursday. The maiden public issue comprises a fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale (OFS) component of up to 74 lakh equity shares by promoter NextWave Communications, the report said citing the draft red herring prospectus (DRHP), which was filed on Wednesday. At present, NextWave Communications owns a 71.45 per cent stake in the company.
As per the draft paper, the company plans to raise Rs 80 crore through a pre-IPO placement round.
Proceeds of the fresh issue will be used towards setting up production lines at the manufacturing facility in Telangana, investment in research & development as well as product development, and payment of debt, to support working capital requirements and general corporate purposes.
Exicom Tele-Systems develops industry-leading EV charging solutions for homes, workplaces, and public spaces.
Valiant Lab IPO Subscribed 71% On Second Day Of Subscription
The IPO of Valiant Laboratories, the pharmaceutical ingredient manufacturing firm, was subscribed 71 per cent on day two of the subscription. According to a PTI report, the retail individual investor category was subscribed 1.27 times, the non-institutional investor category was subscribed 29 per cent, and the qualified institutional buyer category was subscribed 5 per cent.
The IPO is a fresh issuance of up to 1.08 crore equity shares, with no offer-for-sale component. The price range for the offer is Rs 133-140 a share.
Proceeds of the issue will be used to set up a manufacturing facility for specialty chemicals in Gujarat through its subsidiary -- Valiant Advanced Sciences Private Ltd. -- and to meet the working capital requirements of the subsidiary company, the report said.
Malabar Gold And Diamonds To Invest Up To Rs 4,000 Crore For Expansion In Next Fiscal: Group Chairman
Jewellery retailer Malabar Gold and Diamonds is planning to invest up to Rs 4,000 crore in the next fiscal on capacity expansion and opening of 95 stores in the country and overseas, Malabar Group Chairman M P Ahammed said on Thursday, reported PTI.
"Today we have 330 stores in India and 11 other countries. We are planning to add 63 stores across the country and 32 overseas, including in Australia, Bangladesh, Canada, the US, Europe, Egypt, in FY25," Malabar Group Chairman M P Ahammed told reporters.
"For this, we will ramp up our capacity in our manufacturing units. We are looking at an overall investment of up to Rs 4,000 crore in FY25 -- Rs 2,646 crore for India and Rs 1,300 crore for overseas," Ahammed said at the launch of Malabar National Hub in Mumbai.
Ahammed also said, "We are not in any need for capital right now. We are consolidating our business and becoming IPO-ready. We don't have any plans for an IPO till at least 2024-25."
Credit Growth In Agriculture, Allied Activities Improves In August: RBI Data
Credit growth in agriculture and allied activities improved to 16.6 per cent annually in August 2023, with the loan outstanding nearing Rs 18 lakh crore, the RBI data showed on Thursday. This is up from 13.4 per cent credit growth in August 2022.
Credit to industry registered a growth of 6.1 per cent (year-on-year) in August 2023 compared to 11.4 per cent a year ago. Among major industries, credit growth accelerated in basic metal and metal products and textiles, but decelerated in chemicals and chemical products, food processing, and infrastructure, the data showed.
The expansion in credit to services sector accelerated to 20.7 per cent (year-on-year) in August 2023 from 17.4 per cent a year ago, primarily due to non-banking financial companies (NBFCs) and commercial real estate. Personal loan growth decelerated to 18.3 per cent on an annual basis in August 2023 against 19.4 per cent a year ago due to moderation in credit to housing.
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