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Business News Highlights: Sensex Falls 286 Points, Nifty Below 19,450 As Market Closes
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The Reserve Bank of India (RBI) on Wednesday will kick off its bi-monthly policy review. In its three-day meeting from October 4-6, the Reserve Bank of India (RBI)-led Monetary Policy Committee (MPC) is likely to opt for another rate pause, experts have suggested. This would be the fourth consecutive policy where the RBI maintains the status quo in key interest rates.
RBI Governor Shaktikanta Das will announce the MPC's decision on October 6.
“The RBI will have little reason to change the current policy settings, and we expect the MPC to keep the repo rate unchanged at 6.5 per cent, flagging waning core inflation, steady economic activity, and some risks of more supply-related price shocks, providing a little cue for a change in policy thinking,” Rahul Bajoria, MD and Head of EM Asia (ex-China) Economics, Barclays told Moneycontrol.
However, there is reported speculation in the market about a potential 25 basis points rate hike, which could take the key policy rate to 6.75 per cent, due to rising global crude oil prices.
In the previous policy review, RBI raised its FY24 inflation projections to 5.4 per cent from 5.1 per cent due to surging vegetable prices, which pushed headline inflation beyond RBI's upper tolerance band of 6 per cent in June. Even though retail inflation eased to 6.83 per cent in August, RBI remains cautious due to the increase in global crude oil prices, exceeding RBI's estimated average price of $85 per barrel for FY24.
While vegetable prices have moderated, concerns about uneven monsoons impacting crop yields and food prices persist. The CPI inflation is expected to ease to 5.6 per cent in Q3 FY2024 and further to 5.1 per cent in Q4 FY2024, but uncertainties regarding food prices remain.
The MPC is also concerned about the incomplete transmission of previous rate hikes totaling 250 basis points and the need to persist with current monetary policy settings. Additionally, recurring food price shocks pose a risk to anchoring inflation expectations, as highlighted by RBI Governor Shaktikanta Das.
The two key equity benchmarks, Sensex and Nifty, on Tuesday, closed in the negative zone amid a gloomy global sentiment. The S&P BSE Sensex fell 316 points to settle at 65,512. On the other hand, the NSE Nifty50 closed at 19,529, down 110 points. The domestic indices were off their respective intraday lows of 65,345 and 19,480.
IPO Updates
Plaza Wires IPO, with a price range of Rs 51 to Rs 54 per share, is closing on October 4. The IPO was subscribed over 27 times, with the retail portion oversubscribed 118.96 times. Viva Tradecom IPO is closing on October 4, and the subscription window opened on September 27. Akanksha Power & Infrastructure SME IPO also closes on October 4, beginning its subscription on September 29. Digikore Studios' SME IPO is set to be listed on NSE SME on October 4. Electronics Mart India Ltd. IPO, with a price range of Rs56-59 per share, opens for public subscription on October 4 and ends on October 7.
Rajnath Singh Launches SBI NAVeCash Card For Cashless Transactions At Sea
Defence Minister Rajnath Singh today launched the SBI NAVeCash Card – a one-of-its-kind dual-chip debit card developed by the State Bank of India (SBI) and the Indian Navy. The card can be used in online mode (as a regular debit card) as well as in offline mode while at sea with no direct connectivity with the bank. The card has been developed and tested onboard various Indian Naval ships and is now ready for launch pan-Navy.
#WATCH | Defence Minister Rajnath Singh today launched SBI NAV-e Cash Card – a one-of-its-kind dual-chip debit card developed by the State Bank of India (SBI) and the Indian Navy. The card can be used in online mode (as a regular debit card) as well as in offline mode while at… pic.twitter.com/A8jwH6qxr3
— ANI (@ANI) October 4, 2023
Updater Services Shares Dip Nearly 6% In Debut Session
Updater Services Ltd made its market debut with a subdued performance, ending the day at a nearly 6 per cent discount compared to the issue price of Rs 300. The stock began trading at Rs 299.90, briefly dipping to Rs 282 during the day, and closing at Rs 283.85, marking a 5.38 per cent decrease on BSE. On the NSE, the stock listed at Rs 285, dropped 5 per cent, and concluded at Rs 283. The company's market valuation stood at Rs 1,893.36 crore.
The IPO, which raised Rs 640 crore, was subscribed 2.90 times on its final subscription day. It comprised a fresh issue of equity shares worth up to Rs 400 crore and an offer-for-sale of up to 80 lakh equity shares by promoters and existing shareholders. The IPO price range was set at Rs 280-300 per share.
Plaza Wires IPO Oversubscribed 62.55 Times On Third Day Of Subscription
On the third day of its subscription, the Initial Public Offering (IPO) of Plaza Wires was oversubscribed 62.55 times. According to data available from the NSE, the IPO garnered bids for a staggering 59,39,88,274 shares, surpassing the available 94,96,114 shares, reported PTI. The Retail Individual Investors (RIIs) category led the subscription bidding for 223.82 times, while non-institutional investors followed closely with a subscription rate of 132.67 times. Qualified Institutional Buyers (QIBs) also showed substantial interest, with a subscription rate of 5.79 times.
Plaza Wires' IPO consists of a fresh issue of up to 1,32,00,158 equity shares, and the price range for the IPO is set at Rs 51-54 per share.
RBI Appoints Muneesh Kapur As New Executive Director
The Reserve Bank of India (RBI) on Thursday announced the appointment of Muneesh Kapur as its Executive Director, effective from October 3, 2023. Kapur, previously served as Adviser-in-Charge of the Monetary Policy Department and Secretary to the Monetary Policy Committee. Muneesh Kapur holds a Master's degree in Economics and is a Certified Associate of the Indian Institute of Bankers (CAIIB).
"Over a span of nearly three decades in the Reserve Bank, Kapur has worked in the areas of macroeconomic policy and research and monetary policy in Department of Economic Policy and Research and Monetary Policy Department in RBI. He also served as Adviser to Executive Director, International Monetary Fund during 2012-15," the RBI said.
In his new capacity as Executive Director, Kapur will oversee the Department of Economic and Policy Research.
Indian Navy To Unveil Dual-Mode E-Cash Card With State Bank of India
The Indian Navy, in collaboration with the State Bank of India (SBI), is set to introduce a unique e-cash card capable of working in both online and offline modes. According to an ANI report, Indian Navy officials said that this card is slated for launch during the upcoming Swavlamban seminar and has undergone testing on multiple Indian Navy warships, including the flagship aircraft carrier INS Vikramaditya.
Indian Navy and the State Bank of India are going to bring out a unique e-cash card which can work in both online and offline mode. The card is expected to be launched at the Swavlamban seminar and has been tested at various warships of the Indian Navy including the aircraft… pic.twitter.com/IB0K0AbBCe
— ANI (@ANI) October 4, 2023
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