Business News Highlights: Sensex, Nifty Register Recoveries. Rupee Falls To All-Time Low Of 83.14 Against US Dollar
Business News Highlights: Please follow this space for all the breaking news and latest updates from the Stock Market, economy and corporate world.
Sensex and Nifty, on Wednesday, extended their winning run into the fourth straight session because of late buying in index heavyweights, HDFC Bank, Bharti Airtel, and ITC. The S&P BSE Sensex, which had slipped to a low of 65,488, rebounded sharply in the last 35 minutes of trades. The BSE Sensex finally closed with a gain of 100 points at 65,880. On the other hand, the NSE Nifty50, which swung in a range of 142 points settled at 19,611, up 36 points.
The NSE benchmark closed above the 19,600-level after nearly a month and has gained 357 points in the last four trading sessions. On the 30-share Sensex platform, Airtel, HDFC Bank, Titan, UltraCemco, and ITC were among the lead gainers. On the downside, Tata Steel, Axis Bank, NTPC, ICICI Bank, IndusInd Bank, and Maruti emerged as losers.
The rupee declined 10 paise to close at 83.14 (provisional) against the US dollar on Wednesday. This marks an all-time low for the domestic currency. The fall was attributed to an increase in crude oil prices and a strong dollar. Forex traders noted that that the Indian rupee fell while the US dollar gained to reach the highest levels in six months, reported PTI.
The consumer unit of the Tata Group is looking to acquire at least 51 per cent of snack food maker Haldiram’s, anonymous sources revealed to Reuters. While the former is interested in acquiring a majority stake in the sweets, snacks, and restaurant company Haldiram’s, the company is not comfortable with the $10 million valuation Haldiram’s is looking for.
However, if both parties reach an agreement, this deal will make the Tata Group a direct competitor for Pepsi and Mukesh Ambani’s Reliance Retail. Haldiram’s, at the same time, is also in discussions with private equity firms such as Bain Capital regarding the sale of a 10 per cent stake, the sources said.
Dairy Development Board (NDDB), and Gujarat’s Banas Dairy to establish four biogas plants in Gujarat, including an investment of about Rs 230 crore. The agreement between the three parties was finalised in Tokyo. The four plants will be operational from 2025 in the Banaskantha district in Gujarat, the company said in it’s statement. Additionally, a biogas filling station will also be set up alongside each plant to provide fuel for CNG vehicles, reported PTI.
The government approved Rs 3,760 crore viability gap funding for creating battery energy storage system, the Union Minister Anurag Thakur informed on Wednesday in cabinet briefing. The minister said this move is being taken to help boost the energy storage capacity and increase the non-fossil fuel energy capacity and take this capacity to 50 per cent by 2030.
ITC Foods Ltd. has been directed to pay Rs 1 lakh as compensation by the district consumer forum in Tamil Nadu on account of alleged unfair trade practices. The forum announced this fine after a consumer registered a complaint after he found one less biscuit than advertised on the biscuit packet in the products of the company’s biscuit brand Sunfeast Marie Light.
Further, the District Consumer Disputes Redressal Forum, told the company to discontinue the selling of the said biscuits ‘Sunfeast Marie Light’ in Batch No.0502C36 with the particular advertisement, reported PTI.
Tea exports dipped by 0.81 per cent during the January to June period, to 96.49 million kg, down from 97.28 million kg reported for the same period a year earlier, the data from Tea Board revealed. North India, primarily Assam, and North Bengal, reported a nominal increase in exports to 59.16 million kg against 59.09 million kg, on a year-on-year (YoY) basis, while South India witnessed a fall in shipments to 37.33 million kg in the January to June period, against 38.19 million kg in the same period a year ago. This fall was on account of the weakening demand in the export market and a reduction in shipments to Iran as a result of payment issues with the country, reported PTI. Notably, Iran has been a significant contributor for India’s tea exports.
IndiGo on Wednesday notified it’s passengers about flight cancellations at the Delhi airport around the G20 Summit. The airline informed it’s passengers that it is providing a one-time waiver for those travelling to and from Delhi between September 8 to 11, 2023. However, the airline didn’t provide any details about the number of flights likely to be affected in it’s statement.
As part of the waiver, the customers are being provided with the option to either reschedule or cancel their flights with refunds, and the company has informed them well in advance about flight cancellations and schedule changes, the airline added.
The Central Bureau of Investigation has registered a case against B N Ramesh, Joint Director General of Foreign Trade at Regional Authority, Director General of Foreign Trade (DGFT) in Visakhapatnam, and two others for allegedly demanding and collecting huge amounts of bribes from DGFT consultants for issuing new import export certificates along with renewables, tweeted ANI.
Prime Minister Narendra Modi called inflation a global issue that requires close cooperation from all corners, during an exclusive interview to Moneycontrol. The PM noted that the issue of inflation is a major problem for the world currently.
Elaborating on India’s stance on inflation, the PM added that the government has deployed various measures to keep inflation in check. He said, “Even in the face of adversities and global dynamics, India’s inflation was two percentage points lower than the global average inflation rate in 2022. Yet, we are not resting at that and are continuing to make pro-people decisions to boost ease of living. For example, recently on Raksha Bandhan, you saw how we reduced the prices of LPG for all consumers.”
As India is set to host the G20 Summit over the coming weekend, Prime Minister Narendra Modi hailed the country’s technological prowess, explaining how “India’s tech revolution has not only had an economic impact but also a deep social impact.” PM Modi highlighted the effects of several tech projects and schemes, including Open Network for Digital Commerce (ONDC) and Jan Dhan - Aadhaar - Mobile (JAM).
“For a long time, India was globally known for its tech talent. Today, it is known for both its tech talent and tech prowess, especially in digital public infrastructure,” the prime minister said in an interview with Moneycontrol. “A number of initiatives and platforms that took off over the last 9 years are having a multiplier effect on the economy. However, India’s tech revolution has not only had an economic impact but also a deep social impact.”
India can enhance it’s exports and manufacturing going forward by negotiating trade agreements with certain G20 member countries, said CII’s EXIM panel Chairman, Sanjay Budhia, on Wednesday. The panel head further added that India should also try to diversify it’s exports to countries like Brazil, South Africa, Indonesia, and Mexico, which can provide new destinations for Indian exports, in addition to traditional partners like the US and the EU, reported PTI.
Budhia noted that a reduction in trade barriers, tariffs, and regulatory restrictions, can add to the ease of business for Indian domestic players, and a focus on partnerships in digital technology can help boost exports and foreign investment.
The rupee fell 5 paise to 83.09 against the US dollar in Wednesday’s early trade on account of high crude oil prices. The strength of the dollar also impacted investor sentiments. The forex traders noted that the rupee has been trading on the lower end against the dollar for some days now.
At the interbank foreign exchange, the rupee opened at 83.08, and then stood at 83.09, reporting a decline of 5 paise over the last close, reported PTI. In the meantime, the dollar index, which determines the greenback’s strength against six currencies, declined marginally by 0.09 per cent to 104.71. Notably, Brent crude futures edged up 0.07 per cent to $90.10 per barrel, leaving a strong impact on the global markets.
The two key equity benchmarks, Sensex and Nifty, on Wednesday were trading flat amid weak global trends. At 9.40 am, the BSE Sensex was marginally up 67 points to 65,847. On the other hand, the NSE Nifty50 was trading at 19,600, up 25 points.
On the 30-share Sensex platform, Airtel, HDFC Bank, ITC, Wipro, UltraCemco, Reliance were trading in the green. On the downside, IndusInd Bank, NTPC, Tata Steel, Asian Paints, JSW Steel, Maruti were among the early losers.
SpiceJet said that the airline has received an extended timeline of three months from the Registrar of Companies to conduct it’s annual general meeting for the fiscal year ended March 2023. The airline revealed via an exchange filing on Tuesday, that it has managed to get an extension under Section 96 of the Companies Act, 2013. Further, the crisis-hit airline stated that it will hold the meeting on or before December 31, 2023, reported PTI.
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.
On September 5, the two key equity benchmarks, Sensex and Nifty, logged their third-straight gains led by pharma, FMCG, and select IT stocks. The S&P BSE Sensex closed 152 points up at 65,780. On the other hand, the NSE Nifty settled with a gain of 46 points at 19,575.
Further, data released by S&P Global on Tuesday showed that India’s services sector’s purchasing managers’ index (PMI) fell to 60.1 in August, down from 62.3 in July. However, the seasonally adjusted services PMI index displayed a record-strong increase in output, not seen for more than a decade.
Here are some important factors that can impact the market on September 6.
Looking ahead, several key macroeconomic indicators will be closely monitored by investors, including forex reserves data, Eurozone S&P global composite PMI, UK Services PMI, Euro Zone Q2 GDP, US factory orders, S&P global US services PMI, crude oil prices, and the activities of foreign and domestic investors. As per analysts, these factors are expected to have a significant impact on the market.
Notably, India's GDP recorded a growth of 7.8 per cent during the first quarter of fiscal 2023-24, compared to the 6.1 per cent growth in the preceding January-March quarter of fiscal 2022-23. India's robust economic performance stands out as China's post-pandemic recovery has slowed down, making India as one of the fastest-growing major economies.
In addition, the S&P Global India manufacturing PMI continued to expand in August, reaching a three-month high of 58.6, up from 57.7 in July. However, India's fiscal deficit for April-July widened to Rs 6.06 lakh crore, marking a 33.9 per cent increase compared to the previous year. The growth rate of the eight core sectors in July was 8 percent, slightly lower than the 8.2 percent posted in June.
In other news, the National Stock Exchange (NSE) has imposed trading restrictions on a total of 6 stocks within the futures and options (F&O) segment for the September 6 trade, reported Mint. This action was taken because these securities have surpassed 95 per cent of the market-wide position limit (MWPL). It's important to note that these stocks will remain available for trading in the cash market.
The six stocks that have been included in the F&O ban list by the stock exchange for Wednesday are BHEL, India Cements, Delta Corp, Hindustan Copper, Balrampur Chini Mills Limited, and Indiabulls Housing Finance. The NSE regularly updates the list of securities under the F&O ban for daily trading.
IPOs and Debuts
Ratnaveer Precision Engineering IPO, a mainboard offering, will run from Monday, September 4, to Wednesday, September 6. Jupiter Life Line Hospitals IPO, also a mainboard IPO, is scheduled for subscription from Wednesday, September 6, until Friday, September 8.
Additionally, the SME IPO for Kahan Packaging will open on Wednesday, September 6, and conclude on Friday, September 8. Sahaj Fashions shares are set to be listed on the NSE SME platform on Wednesday, September 6.
- - - - - - - - - Advertisement - - - - - - - - -