Business News Highlights: Retail Inflation For Industrial Workers Declines To 6.91% In August
Business News Highlights: Please follow this space for all the breaking news and latest updates from the Stock Market, economy and corporate world.
Pharmaceutical ingredient manufacturing firm Valiant Laboratories' Initial Public Offering (IPO) was subscribed 2.17 times on the third day of bidding, reported PTI. The IPO received bids for 1,65,77,925 shares against the 76,23,030 shares on offer. Retail Individual Investors (RIIs) subscribed 3.11 times their allocated portion, while non-institutional investors subscribed 1.51 times.
The Qualified Institutional Buyers (QIBs) portion saw a subscription rate of 1.04 times. The price range for the IPO is Rs 133-140 per share, and it consists of an entirely fresh issuance of up to 1.08 crore equity shares.
Valiant Laboratories primarily focuses on manufacturing paracetamol, a common pain reliever. The IPO is managed by Unistone Capital, and the equity shares are set to be listed on the BSE and NSE.
Plaza Wires IPO was 4.68 times subscribed on the first day of bidding. The IPO received bids for 4,44,05,316 shares against the 94,96,114 shares on offer, reported PTI. Retail individual investors (RIIs) subscribed 26.49 times their allocated portion, while non-institutional investors subscribed 4.76 times.
Plaza Wires is engaged in the manufacturing and sale of wires, aluminium cables, electric fans, water heaters, and other electrical goods. The IPO, consisting of a fresh issue of up to 1,32,00,158 equity shares, is priced in the range of Rs 51-54 per share. The company raised Rs 20 crore from anchor investors, and the equity shares are set to be listed on the BSE and NSE.
Pantomath Capital Advisors is the manager of the offer.
Retail inflation for industrial workers in India eased to 6.91 per cent in August, down from 7.54 per cent in July, primarily due to lower prices of certain food items, according to the Labor Bureau. Year-on-year inflation for the month stood at 6.91 per cent, compared to 7.54 per cent the previous month and 5.85 per cent during the same month last year.
Food inflation for industrial workers for August month was at 10.06 per cent, down from 11.87 per cent in July 2023 and 6.46 per cent in August 2022, the data showed.
The government has increased the interest rate on 5-year recurring deposits to 6.7% for the December quarter while keeping the rates unchanged for other small savings schemes, reported PTI.
Anil Agarwal-led Vedanta Ltd has unveiled its strategy to spin off and publicly list six of its businesses, aiming to secure substantial investments to drive the expansion and development of each entity. The move is intended to enhance the valuation of these units.
In pursuit of this goal, the Vedanta Limited Board approved a pure-play, asset-owner business model that will ultimately result in six separate listed companies, namely:
• Vedanta Aluminium
• Vedanta Oil & Gas
• Vedanta Power
• Vedanta Steel and Ferrous Materials
• Vedanta Base Metals
• Vedanta Limited
Waters Corporation, a US-based analytical laboratory instrument and software company, is earmarking an investment of $16 million to establish its global capability center (GCC) in Bengaluru. The announcement was made during a meeting between the company's President and CEO, Udit Batra, and a business delegation led by Karnataka's Large and Medium Industries & Infrastructure Minister, M B Patil, in Boston.
The company is seeking support for forging partnerships with local pharmaceutical giants specialising in biosimilar manufacturing, with the aim of exporting medications to international markets. Additionally, the delegation, headed by Minister Patil, engaged with senior executives from Teradyne, a prominent provider of automation equipment for the electronics and semiconductor industries, and also toured the company's testing facilities.
The rupee closed at 83.04 per dollar, marking a 14-paise gain from the previous close of 83.18.
The stock market ended with smart gains on Friday helped by easing domestic bond yields and a global decline in oil prices. The benchmark S&P BSE Sensex saw a surge of 320 points or 0.49 per cent, closing at 65,828. The Nifty50 followed suit, with a gain of 115 points, concluding at 19,638. However, closed indices closed notably lower than their intraday highs of 66,152 and 19,726, respectively.
Indian equity markets experienced a notable rebound on September 29 after days of selling, bringing relief to investors. At 1:30 PM, the Sensex was up 487 points at 65,995.86, and the Nifty was up 162 points at 19,685.50.
Key players like Reliance Industries, HDFC Bank, and ICICI Bank played a pivotal role in driving the gains. The Nifty Pharma and Nifty Metal sectors took the lead in the rally, posting gains of 2.7 per cent and 1.5 per cent, respectively.
Global index provider FTSE Russell has announced its decision to postpone the inclusion of India in a government bond index. This comes just a week after JPMorgan disclosed its plans to incorporate India into its influential GBI-EM index suite, starting next year.
India's largest commodity derivative exchange, MCX, has postponed its transition to a new Commodity Derivatives Platform (CDP) following a directive from the market regulator, SEBI. The decision comes in response to a letter from Chennai Financial Markets and Accountability (CFMA), which has filed petitions related to CDP before the Madras High Court. MCX had initially scheduled the transition for October 3.
“The regulator has informed that since the matter involves technical issues, the same would be discussed in the SEBI Technical Advisory Committee meeting, which would be held shortly,” said MCX in an exchange filing.
The bourse added that it was ready and keen to go live following the permissions and that it will continue to conduct CDP mock tests pending further directions from SEBI.
Godrej Properties Ltd has acquired approximately 109 acres of land in Nagpur for residential plots. According to the company's exchange filing, the development will primarily consist of residential units and offer a saleable area of around 2.2 million square feet. The deal value and seller's name have not been disclosed. This acquisition strengthens Godrej Properties' presence in Nagpur as it capitalises on the renewed demand for housing, including plots, following the Covid-19 pandemic.
Air India has acquired its first Airbus A350-900 aircraft through a finance lease transaction with HSBC in GIFT City, India's International Financial Services Centre (IFSC), reported PTI. This marks the first wide-body aircraft leased through GIFT City and the first financing transaction from the airline's recent order of 470 aircraft. Air India, under the Tata Group, expects the A350-900 to arrive in India by the end of the year.
"This landmark transaction marks the beginning of our aircraft leasing business from GIFT IFSC, as AIFS will be the primary Air India Group entity for wide body aircraft financing, playing a pivotal role in the future aircraft financing strategy for us and our subsidiaries," Air India's Chief Commercial & Transformation Officer Nipun Aggarwal said, in a statement adding "The steps taken by Air India by establishing a finance company for the purpose of aircraft leasing and financing at IFSC will go a long way in developing IFSC as a preferred destination for aircraft leasing and financing in India as well as globally."
The transaction was facilitated by Air India's subsidiary AI Fleet Services Ltd (AIFS), which will play a key role in the airline's future aircraft financing. The airline has orders for six A350-900s.
Sensex and Nifty, the two key domestic benchmarks were trading higher on Friday. The BSE Sensex was up 113 points to 65,621, while the NSE Nifty50 was trading at 19,556, up 41 points. On the 30-share Sensex platform, NTPC, Tata Motors, L&T, JSW Steel, SBI, Tata Steel, Reliance were trading in the green. On the flip side, Infosys, Wipro, Asian Paints, HCL, TCS, TechM emerged early losers. Sectorwise, metal indices also advanced 1 per cent.
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.
The two key equity benchmarks closed into losses on Thursday amid monthly derivatives (F&O) expiry, rising crude oil price, and weakness in IT stocks. The S&P BSE Sensex plunged 610 points to 65,508. On the other hand, the NSE Nifty50 ended at 19,524, down 193 points.
Meanwhile, data shared by the National Stock Exchange (NSE) showed that the total number of unique investors directly investing in the stock market has surged to 80 million for the first time, with the latest 10 million additions taking place in just eight months.
In another news, RBI said that the government securities market, foreign exchange market, money market, and rupee interest rate derivatives market will be operational on September 29, in addition to being operational on September 28. This after the Government of Maharashtra declared September 29, 2023, 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.
"Settlement of the auction of Government of India treasury bills conducted on September 27, 2023 will take place on September 29, 2023. The auction of Government of India Dated Securities scheduled on September 29, 2023 will now be conducted on September 28, 2023, with settlement on September 29, 2023. The underwriting auction for sale of Government Securities will also be conducted on September 28, 2023," the RBI said.
Market Ahead
According to a Moneycontrol report, analysts predict that the Nifty 50 may fall further due to global turmoil, with some expecting the index to test the 19,400 level. Nifty experienced a significant correction on Thursday and was unable to hold above 19,750. Analysts say that the weakness in the market is likely to extend till the worries over the elevated oil prices and higher interest rates remain.
Further, concerns over China's beleaguered property market also dented investors’ sentiment.
IPO Update
Vishnusurya Projects and Infra and Plaza Wires will also launch their maiden public issues on September 29. Master Components will make its debut on the NSE Emerge on September 29, while the listing of Techknowgreen Solutions will take place on the BSE SME on September 29.
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