Business News Highlights: Market Ends 2-Day Losing Streak, Sensex Jumps 405 Points, Nifty Climbs At 19,546
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Karnataka Minister for Large and Medium Industries and Infrastructure Development, M B Patil held a discussion with the US-based semiconductor equipment manufacturer, Applied Materials, regarding the establishment of a Center of Excellence for Innovation and a research and development (R&D) laboratory in Whitefield, reported PTI.
Officials from Applied Materials expressed their desire for support from the Karnataka government and urged the acceleration of pre-construction approvals for their proposed lab, the report said. During the meeting, the team also highlighted the significance of chemicals and gases essential for the semiconductor ecosystem and emphasised the importance of improving the ease of doing business.
Furthermore, senior representatives from Applied Materials India held talks about the establishment of an innovation-focused Center of Excellence in collaboration with the government. They reiterated their commitment to enhancing Karnataka's ecosystem through skill development. Applied Materials recently announced an investment plan of $400 million, which will be distributed over the next four years, for the establishment of an engineering center in Bengaluru.
InterGlobe Hotels is gearing up to Rs 550 crore investment for the establishment of two fresh properties in Mumbai and Bengaluru by 2025, announced the firm President and CEO, JB Singh, on Thursday, reported PTI.
This enterprise, a joint venture with a 60:40 partnership between InterGlobe Enterprises Pvt Ltd and Accor Asia Pacific, has already inaugurated a new 'ibis Styles' hotel in the region. Their future plans include the unveiling of a new 'ibis' branded property in Mumbai by the close of the next year, followed by the introduction of a Novotel-branded hotel in Bengaluru in early 2025.
"This (ibis Styles Vagator) becomes the 23rd ibis (property in India), but as a portfolio, we are at 28 hotels, with this and two to open (which are) under active development. The ibis in Mumbai will open sometime late next year and the Novotel in Bangalore within 2-4 months of that or early 2025," Singh told PTI.
Gold price declined Rs 150 to Rs 57,350 per 10 grams in New De on Thursday amid a fall in gold prices globally, according to HDFC Securities, reported PTI. In the previous trade, the precious metal had closed at Rs 57,500 per 10 grams. On the other hand, silver climbed Rs 300 to Rs 71,300 per kg, the report said.
Gold traded negative on Thursday, with spot gold prices (24 carats) in the Delhi markets trading at Rs 57,350/10 grams, down by Rs 150 against its previous close, Saumil Gandhi, senior analyst of commodities at HDFC Securities, told the news agency.
In the international markets, gold was down at $1,820 per ounce, while silver was trading higher at $21.15 per ounce. Comex gold prices consolidated their lowest level since March amid mixed cues, Gandhi said.
Centre has extended the tenure of the State Bank of India (SBI) Chairman Dinesh Khara until August next year, according to a Reuters report citing two government sources. Khara was appointed as SBI's chairman in 2020 for three years. As per norms, the SBI chairman can hold the position till the age of 63.
The rupee closed on Thursday session at a flat note at 83.25 per dollar compared to Wednesday's closing of 83.23.
The stock market closed with gains on Wednesday ending two day losing streak. The BSE Sensex jumped 405.53 points to settle at 65,631.57, and the Nifty climbed 109.65 points to 19,545.75.
Food Corporation of India (FCI) sold 1.89 lakh tonne of wheat and 5,000 tonnes of rice to bulk consumers like flour millers in the 15th weekly e-auction held on Wednesday, according to the food ministry. The Food grains are being sold under the Open Market Sale Scheme (OMSS) to bulk users to improve domestic availability and cool down retail prices.
According to the food ministry data, about 1.89 lakh tonne of wheat was sold in the weekly e-auction held on October 4 against 2.01 lakh tonne offered. However, FCI continued to get the lukewarm responses for weekly e-auction of rice under OMSS with traders purchasing just 5,000 tonnes of grains against the 4.87 lakh tonnes offered. Wheat and rice were sold to 2,255 bidders during the e-auction.
The weighted average selling price was Rs 2,185.05 per quintal for fair and average quality (FAQ) wheat against the reserve price of Rs 2,150 per quintal, while the weighted average selling price of under relaxed specifications (URS) wheat was Rs 2,193.12 per quintal against the reserve price of Rs 2,125 per quintal, it said. The weighted average selling price was Rs 2,932.91 per quintal for rice against the reserve price of Rs 2,932.83 per quintal across India.
BHEL on Thursday said it has paid Rs 88 crore as a final dividend to the Government of India for the fiscal year 2022-23 (FY23).
A cheque towards the final dividend on the equity (63.17 per cent) held by Government of India was presented to Union Minister of Heavy Industries Mahendra Nath Pandey by BHEL Chairman and Managing Director Nalin Shinghal, it said in a BSE filing.
The total dividend paid to the company's shareholders for FY 2022-23 amounts to over Rs 139 crore.
Market At 14.00 AM, the BSE Sensex was up 454.23 points or 0.70 per cent at 65,680.27, and the Nifty was up 118.50 points or 0.61 per cent at 19,554.60.
Market At 13.00 AM, the Sensex rose 424.36 points or 0.65 per cent to 65,650.40, while the Nifty was up 108.90 points or 0.56 per cent at 19,545.
Realty firm Macrotech Developers on Thursday reported a 12 per cent year-on-year jump in its quarterly sales. The company reported Rs 3,530 crore in sales bookings during the July-September quarter of this financial year on strong housing demand. The company had clocked sales bookings of Rs 3,150 crore in the corresponding period of the last financial year.
In a regulatory filing, Macrotech Developers informed that the company achieved its best-ever quarterly pre-sales performance of Rs 3,530 crore in Q2 of FY24. It has achieved 48 per cent of its FY24 pre-sales guidance fixed at Rs 14,500 crore. In the entire 2022-23 financial year, Macrotech Developers had clocked sales bookings of Rs 12,060 crore. Fund collections from customers stood at Rs 2,752 crore, up 16 per cent year-on-year (YoY).
Construction major L&T on Thursday announced bagging several 'large' projects under its various business units under the Buildings & Factories business.
L&T in a BSE filing said, one of the projects is for constructing a residential township in Bengaluru. The business has also bagged orders from a renowned developer for constructing commercial towers in Hyderabad. Besides, it has got a contract from the Indian Institute of Technology, Kanpur to construct a super specialty hospital and an academic block.
The company classifies contracts worth Rs 2,500-5,000 crore as large orders, as per PTI.
India's Services Purchasing Managers' Index (PMI) rose to a 13-year high in September as a "positive demand environment boosted intakes of new business and output volumes," said a monthly survey by S&P Global Market Intelligence. The global rating agency said that with workloads rising and capacities experiencing mild pressure, job numbers continued to increase at a historically high rate.
The seasonally adjusted S&P Global India Services PMI Business Activity Index rose from 60.1 in August to 61.0 in September, signalling a sharp upturn in output that was one of the strongest in over 13 years, said S&P Global report.
The uptick meant that the index averaged 61.1 over the second fiscal quarter, above that seen in the prior three-month period (60.6).
September's expansion in output was commonly associated with effective marketing, favourable demand conditions and strong influxes of new business.
"The latest data showed a substantial increase in new business placed with Indian service providers, one that was the second-fastest since June 2010. Anecdotal evidence indicated that market dynamics remained favourable, supporting demand. Advertising was also cited as a key factor boosting sales. Besides the rise in total sales, firms noted an upturn in demand from abroad, particularly from clients based in Asia, Europe and North America. The overall rate of growth was marked and one of the quickest seen in the series history (since September 2014), despite slowing to a three-month low," the rating agency said.
Sensex and Nifty, on Thursday pared their loses and opened in the green, tracking recovery in global markets after crude oil prices cooled off to $86 per barrel. The BSE Sensex rose 355 points to 65,581, while the NSE Nifty50 was trading at 19,532, up 96 points. On the 30-share Sensex platform, TCS, Titan, TechM, ICICI Bank, Infosys, Tata Motors, ITC were among the lead gainers. On the downside, PowerGrid, Nestle, NTPC, Tata Steel, HUL, Sun Pharma emerged losers.
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, Sensex and Nifty, on Wednesday, extended their losing streak as indices crumbled under heavy selling pressure. The S&P BSE Sensex closed at 65,226, down 286 points. On the other hand, the NSE Nifty50 shut shop at 19,436, falling 93 points. The two indices hit intraday lows of 64,879 and 19,334, respectively. Notably, the indices recouped some of the losses during the latter part of the day. The market capitalisation of all listed firms on the BSE decreased by Rs 2.49 lakh crore to Rs 316.72 lakh crore.
According to experts, Weak global cues with continued FII selling, a stronger dollar, and rising US treasury yields contributed to bearish sentiment in the Indian stock market. Additionally, Global equities are concerned about prolonged higher interest rates.
Breaking the 19,500 mark, analysts predict a bearish trend, with potential support at 19,330 and the possibility of slipping to 19,200, as per a Moneycontrol report. As per experts, the short-term trend of the Nifty remains negative. On the weekly options front, hurdles are expected at 19,500-19,700, with support at 19,400-19,200. Bank Nifty also saw a decline, falling below 44,000, with potential support at 43,800–43,600 and resistance at 44,400–44,500.
The slump in US Treasuries has caused a sell-off in emerging market debt, leading to a one-year high yield of 8.93 per cent on bonds in the Bloomberg EM Aggregate Sovereign Index, Bloomberg reported. This yield surpassed the earnings yield of 8.63 per cent on stocks in the MSCI Emerging Markets Index, marking an unusual reversal of the typical relationship between bond and stock yields.
Historically, equities offered a higher rate to compensate for their additional risk, but this anomaly has occurred only during times of extreme stress, such as the global financial crisis in 2008 and the Covid-driven rout of 2020. The risk to US equities, low-rated emerging-market credits, and global equities stems from the ongoing selloff in US bonds. While the anomaly typically lasts only a few days, its recurrence raises concerns for investors in developing-market sovereign debt.
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