Business News Highlights: BSE-listed Firms MCap All Time High, Investors Earn Over Rs 9.50 Lakh Crore In 5 Days
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Apple is set to wipe of $100 billion from its market value as its stocks fell nearly 4 per cent on Thursday, according to a Reuters report. This decline comes after reports said that Chinese government has asked employees at some government agencies in recent weeks to stop using their Apple mobiles at work.
The company suffered its worst one-day drop in over a month on Wednesday. According to a Bloomberg report collectively, two days decline will erode $212 billion of market value of the iPhone maker.
The Reuters report also noted that on Thursday, Broadcom, Qualcomm and Texas Instruments fell between 1.2 per cent and 2.8 per cent.
Mining giant Vedanta Resources Ltd. is planning to meet its bondholders in Singapore and Hong Kong ahead of the due date of $2 billion of notes next year, reported Bloomberg citing people familiar with the matter.
The report said that the global rise in borrowing costs has raised the stakes for billionaire Anil Agarwal’s firm. Several of the group’s bonds are trading below 75 cents on the dollar. The report also noted that at this level bonds are considered indicative of distress.
The market capitalisation of companies listed on the BSE surged to a fresh all-time high of Rs 319.10 lakh crore on Thursday, driven by a positive trend in the stock market, reported PTI.
The S&P BSE Sensex extended its rally for the fifth consecutive day, recovering from early losses to close with a gain of 385.04 points or 0.58 per cent at 66,265.56.
As per the report, over the past five sessions, the benchmark index has risen by 1,434.15 points or 2.21 per cent. This upward momentum in the market resulted in a new record high for the market capitalisation of BSE-listed companies at Rs 3,19,10,019.04 crore, the report said. Adding that Investors' wealth also increased by Rs 9.50 lakh crore over the course of these five days.
Prime Minister Narendra Modi is scheduled to lay the foundation stone for the expansion of BPCL's Bina Refinery in Madhya Pradesh's Sagar district on September 14, a senior official on Thursday said, as per PTI. The expansion of BPCL's Bina Refinery is being built at an estimated cost of Rs 50,000 crore. The current capacity of the refinery's crude distillation/vacuum distillation unit is 7.7 million metric tonnes per annum, and the expansion aims to increase it to 11 MMTPA, according to Sagar Collector Deepak Arya, the report said.
In addition to this project, the Prime Minister will also inaugurate new units in Hadkal village, located approximately 70 kilometers from the district headquarters. The Bina Refinery, owned by Bharat Petroleum Corporation Limited, was originally inaugurated by former Prime Minister Manmohan Singh in May 2011. This marks PM Modi's second visit to Sagar district in the Bundelkhand region within the past month, the report noted.
The initial public offering (IPO) of Jupiter Life Line Hospitals Ltd was subscribed 3.30 times on day two of bidding on Thursday, reported PTI. The report citing NSE data said that the IPO received bids for 2,80,31,300 shares against 84,97,169 shares on offer.
The non-institutional investor segment received 6.63 times oversubscription, while the Retail Individual Investors (RIIs) category had 3.08 times oversubscription, and the Qualified Institutional Buyers (QIBs) category received 1.12 times oversubscription, the report said. The IPO consists of a fresh issue of equity shares valued at Rs 542 crore and an offer for sale (OFS) of up to 44.50 lakh equity shares.
The price range for the offering is set at Rs 695-735 per share. On Tuesday, Jupiter Life Line Hospitals announced that it raised Rs 261 crore from anchor investors. The funds raised from the fresh issue will be used to pay debt and for general corporate purposes.
Air India has entered into an interline partnership with Bangkok Airways to connect 10 Southeast Asian destinations beyond the Thailand capital, the company said on Thursday. The two carriers have entered a Special Prorate Agreement that allows them to file 'through fares' on routes covering each other's networks. This arrangement means that a passenger can have a single fare for a single ticket covering all destinations in an itinerary, the company said.
This partnership allows Air India passengers to easily connect via the airline's Bangkok, Hong Kong, and Singapore hubs to reach ten destinations across Thailand, Laos, and Cambodia using Bangkok Airways' route network, the press release noted. An interline arrangement involves an agreement to issue and accept tickets for flights operated by the partner airline, using the operating airline's flight numbers. The collaboration with Bangkok Airways also encompasses the implementation of Inter Airline Through Check-In (IATCI).
The rupee fell 9 paise to register a lifetime low of 83.22 (provisional) against the US dollar on Thursday. This marks the fourth consecutive day of the downward trend of the rupee. The fall was credited to the firm American dollar and increased crude oil prices. Forex traders, however, said that the upward movement in the domestic equity markets helped soften the blow for the rupee.
United Breweries Ltd. (UBL) on Thursday, announced Vivek Gupta as the new managing director and CEO of the company. The company, in it’s exchange filing, informed that the UBL board has approved the appointment of Gupta in the new role and he will oversee the company as the CEO for a period of five years, effective from September 25, 2023. Prior to accepting this responsibility, Gupta was working at online platform Udaan and earlier at P&G as the managing director of Australia and New Zealand. UBL is part of the Dutch brewing company Heineken.
The two benchmark indices, Sensex and Nifty, ended higher. At close, the Sensex was up 385.04 points or 0.58 per cent at 66,265.56, while the Nifty was up 116.00 points or 0.59 per cent at 19,727.
On Nifty, top gainers include Coal India, L&T, IndusInd Bank, SBI Life Insurance, and Tech Mahindra. Losers included Tata Consumer Products, M&M, Britannia Industries, Sun Pharma and Infosys.
Groww, the online stock broking firm, has received approval from the Securities and Exchange Board of India (SEBI) to launch its inaugural index fund, the Groww Nifty Total Markets Index Fund, as part of a new fund offering (NFO). This announcement follows after Zerodha, another online stock broking firm, introduced two new schemes, the Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and the Zerodha Nifty Large Midcap 250 Index Fund (ZN250), as part of its mutual fund business.
Groww obtained approval from the Competition Commission of India (CCI) in September 2021 for its acquisition of Indiabulls Asset Management Company (AMC) and Indiabulls Trustee Company.
SBI Mutual Fund will invest Rs 410 crore in Nazara Technologies, the latter said on Thursday. The investment will be made by subscribing to Nazara Tech’s preferential allotment of equity by way of private placement, the company stated. The shares will consist of a face value of Rs 4 and the gaming and sports media company will issue 57,42,296 shares at the price of Rs 714 per share, worth a total Rs 409.99 crore. The company further informed the investment will be done via three schemes, namely SBI Mutlicap Fund, SBI Magnum Global Fund, and SBI Technology Opportunities Fund.
India has done away with additional duties on almost half a dozen US products, including apples, lentils, and chickpeas, the finance ministry informed via a notification on Tuesday. These duties were imposed in 2019 as a reaction to the US decision to raise tariffs on some steel and aluminium products.
Jupiter Life Line Hospitals IPO has been subscribed 1.79 times on the second day of bidding backed by high-net individuals and retail investors, reported Moneycontrol. As per the report, Investors have bought 1.51 crore equity shares against the offer size of 84.97 lakh shares. On Wednesday, the IPO of multi-specialty hospital chain was subscribed 87 per cent on the first day of bidding.
The portion reserved for high net worth individuals, 15 per cent of the total issue size, has been booked 3.37 times, and that of retail investors, 35 per cent in the offer, 2.09 times. Qualified institutional investors bought 1 per cent shares of their part, the report said.
Jupiter Life Line Hospitals IPO has a fresh issue of equity shares worth Rs 542 crore and an offer for sale (OFS) of up to 44.50 lakh equity shares. The price range for the offer is Rs 695-735 per share. On Tuesday, the company said it has raised Rs 261 crore from anchor investors.
The Reserve Bank of India (RBI) resisted a raid orchestrated by some in the government in 2018 to extract money from the bank to meet the requirements of the upcoming general elections, former deputy governor at RBI, Viral Acharya has written in his book. Acharya claimed the plan was to get about Rs 2-3 lakh crore from the RBI balance sheet in 2018 to cater to the spending in the run-up to the upcoming general elections. Acharya, who was with the bank in his designation as deputy governor at the time, said that this action caused differences between the banking regulator and the government.
The BSE Sensex registered a sharp recovery on Thursday afternoon after trading in red in the morning. The index was trading at a gain over 100 points at 65,985.85 as of 1:53 PM, while Nifty continued it's upward streak, and reached near the 19,650 mark and was trading at 19,644.
The government is asking for public comments on draft guidelines made to prevent and regulate dark patterns on online platforms. The guidelines, issued by the Consumer Affairs Ministry, is looking for public suggestions within a timeline of 30 days till October 5, the ministry noted in a statement.
The guidelines define dark patterns as ‘any practices or deceptive design patterns using UI/UX (user interface/user experience) interactions on any platform’ adopted to fool the users or manipulate them in their choices. The government intends to keep a tab on such practices that are harmful or contradictory to consumer interests and has framed these guidelines after discussions with all stakeholders, including law firms, e-commerce firms, and others, reported PTI.
Coal India is trading with maximum gains, among the Nifty 50 companies, registering an increase over 6 per cent. The stock is trading at Rs 271.9 as of 12:39 PM on Thursday afternoon.
The rupee depreciated 2 paise to reach a new low of 83.15 against the US dollar in early trade on Thursday due to a robust American currency and increased crude oil prices. Forex traders stated that the selling of equities by foreign investors in huge quantities over the last few sessions and subdued market sentiment added to the pressure on the domestic currency. Further, crude oil extended beyond the $90 per barrel limit as oil producing countries decided to take ahead the supply cut till December this year. The US dollar gained strength on safe-haven demand. At the interbank foreign exchange, the domestic unit opened at 83.15 against the dollar, 2 paise lower from its previous close. The unit traded in a narrow range of 83.14 to 83.16 against the greenback.
The two key equity benchmarks, Sensex and Nifty, on Thursday were trading in red as market opened for the day. At 9.56 am, the BSE Sensex was down almost 60 points to 65,821.06. On the other hand, the NSE Nifty50 was slipped below the 19,600 mark and was trading at 19,592.10. On the 30-share Sensex platform, State Bank of India, Maruti, Larsen & Toubro Ltd., and Axis Bank were among those trading in the green. Tata Consumer Products registered the largest drop in the Nifty 50 index, with the stock losing more than 2 per cent.
Tata Consumer Products and Haldiram’s stated on Wednesday that that no negotiations surrounding the acquisition of 51 per cent stake in the latter were going on. Tata clarified in a regulatory filing that the company was not in any negotiations to acquire Haldiram’s, as suggested by the reports. This clarification was issued as a response to the NSE and the BSE regarding the claims that Tata is looking to buy 51 per cent share in Haldiram’s.
Haldiram’s also issued a clarification stating, “We categorically deny recent reports of a 51 per cent stake sale and wish to clarify that we are not engaged in any discussions with Tata Consumer Products,” 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.
Sensex and Nifty, on Wednesday, continued 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 declined to a low of 65,488, made a sharp recovery 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. Whether the indices can continue their winning streak for the week remains to be seen.
Global oil benchmark Brent crude declined 0.70 per cent to $89.41 a barrel. Meanwhile, the rupee depreciated by 10 paise and closed for the day at an all-time low of 83.14 (provisional) against the US dollar on Wednesday, weighed down by a surge in crude oil prices and strong American currency. Forex traders said the Indian rupee depreciated on Wednesday as the US dollar rose to the highest levels in six months. Moreover, elevated crude oil prices also weighed on rupee.
Here are some important factors that can impact the market on September 7.
Market Movements
The US markets saw a decline in indices on Wednesday related to concerns about inflation, while investors keenly waited for the Fed’s report on the US economy to understand the path ahead regarding interest rates. Apple saw a major decline across indexes, dipping 2.6 per cent after news came through of China banning central government agencies’ officials from using iPhones and other foreign-branded devices.
Looking ahead, several key macroeconomic indicators will be closely monitored by investors, including Eurozone Q2 GDP growth and the region’s employment data are expected to be released on Thursday. Additionally, China is expected to come out with it’s balance of trade data for August on Thursday. As per analysts, these factors are expected to have a significant impact on the market.
S&P Global released data over the week stating that India’s services sector’s purchasing managers’ index (PMI) fell to 60.1 in August, down from 62.3 in July, while 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.
IPOs and Debuts
Jupiter Life Line Hospitals IPO, a mainboard IPO, is scheduled for subscription from Wednesday, September 6, until Friday, September 8. The SME IPO for Kahan Packaging also will receive biddings on it’s second day on September 7. Further, EMS Limited will open it’s public issue for subscription on Friday.
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