Business News Highlights: Stock Market Closes In Red, Nifty Down Below 19,750 Level
Business News Highlights: Please follow this space for all the breaking news and latest updates from the Stock Market, economy and corporate world.
The government has made it mandatory to disclose weekly sugar stocks by Traders/Wholesalers, Retailers, Big Chain Retailers, Processors.
"This mandatory weekly stock disclosure for these entities is another proactive step in Government of India's efforts to maintain a balanced and fair sugar market. By preventing hoarding and speculation, GoI is aiming to ensure that sugar remains affordable for all consumers. This proactive measure empowers regulatory authorities to closely monitor stock levels and take prompt action against any potential market manipulation," said the Ministry of Consumer Affairs, Food & Public Distribution.
The Bank of England on Thursday decided to keep its main interest rate unchanged after almost two years of consecutive rate hikes, responding to an unexpected drop in inflation, reported Associated Press
"At its meeting ending on September 20 2023, the MPC voted by a majority of 5–4 to maintain Bank Rate at 5.25 per cent. Four members preferred to increase Bank Rate by 0.25 percentage points, to 5.5 per cent. The Committee also voted unanimously to reduce the stock of UK government bond purchases held for monetary policy purposes, and financed by the issuance of central bank reserves, by £100 billion over the next twelve months, to a total of £658 billion," the Bnak said in its statement
Sweden's central bank on Thursday raised its key interest rate by a quarter point to 4 per cent, citing persistent inflationary pressures, despite a recent decrease in inflation, reported PTI. Inflation is slowing, especially in energy and food prices, but service costs are still climbing rapidly. The Swedish krona is weak, reaching historic lows against the euro and the US dollar. In August, inflation was 7.5 per cent, a drop from July's 9.3 per cent, but well above the central bank's 2 per cent target. Further rate increases are anticipated, according to the bank's forecast.
The government has extended the mandatory fitness testing for transport vehicles through a registered Automated Testing Station (ATS) to October 1, 2024, as per a Ministry of Road Transport and Highways (MoRTH) notification.
The ATS system is now the sole method for conducting vehicle fitness testing, and it is required to be operational within the jurisdiction of the registering authority. Initially, the Ministry had announced the mandatory ATS-based fitness testing for heavy goods and passenger vehicles starting April 1, 2023.
The rupee on Thursday closed at 83.09 against the US dollar versus Wednesday’s closing of 83.07.
The stock market closes in Red for the third session in a row on Thursday. The S&P BSE Sensex declined 570.60 points or 0.85 per cent to settle at 66,230.24, while the Nifty50 dipped 159.10 points or 0.80 per cent at 19,742.30.
Signature Global's public issue has been fully subscribed on the second day of bidding, with bids coming for 1.12 crore equity shares against the offer size of 1.12 crore shares. The real estate developer aims to raise a total of Rs 603 crore via fresh issue and Rs 127 crore through offer-for-sale.
At 2 AM, the Sensex dropped 584.86 points or 0.88 per cent to 66,215.98, while the Nifty was down 160.40 points or 0.81 per cent at 19,741.00.
Integrated facilities management firm Updater Services has set a price range of Rs 280-300 per share, for its upcoming IPO totaling Rs 640 crore offer. The IPO includes a fresh issue of Rs 400 crore in shares and an offer-for-sale (OFS) of 80 lakh shares, with Tangi Facility Solutions and India Business Excellence Funds II & IIA as the main sellers. The shares will be listed on the BSE and the NSE on October 9.
The crude oil prices, benchmark Brent Crude, dropped to $92 per barrel level on September 21 following the US Federal Reserve's decision to keep its benchmark interest rate unchanged. The Brent Crude index had claimed over $94 in the past few weeks due to production cuts and supply-demand rise.
Interest rate hikes typically have a bearish effect on crude oil prices, as higher rates can reduce consumer demand. The direction of crude oil prices is heavily influenced by the global economy, particularly that of the United States. Although the US central bank didn't raise the interest rate it indicated a future rate hike this year.
At oilprice.com, Brent Crude was trading at $92.52 per barrel, declining 1.08 per cent, while West Taxes Intermediate was at $88.66 per barrel.
The Reserve Bank of India (RBI) has granted permission to HDFC Asset Management Company (AMC) to acquire up to a 9.5 per cent stake in both DCB Bank and Karur Vysya Bank. The RBI's approval is valid for one year from the date of approval, as per the regulatory filings of both banks. The central bank has also stipulated that HDFC AMC should not hold more than a 9.5 per cent share in either of the private banks.
Notably, in June, RBI had previously allowed Tata AMC to purchase a 7.5 per cent stake in DCB Bank.
At 12 AM, the Sensex slipped by 629 points to reach 66,171.51, while the Nifty declined by 174 points to 19,727.40.
Shares of EMS Ltd made a strong debut on Thursday with a premium of nearly 34 percent over the issue price of Rs 211. The stock opened at Rs 281.55, marking a 33.43 per cent increase on the BSE, reported PTI. Shares surged by 36.82 per cent to reach Rs 288.70 in later trade.
On the NSE, it began trading at Rs 282.05, up 33.67 per cent compared to the listing price. In early trading, the company had a market valuation of Rs 1,522.10 crore.
EMS Ltd's Initial Public Offering (IPO) witnessed strong demand, with a subscription of 75.28 times on the final day of subscription on September 12, largely driven by institutional investors. The IPO had a price range of Rs 200-211 per share and consisted of a fresh issue of up to Rs 146.24 crore and an offer-for-sale (OFS) of up to 82,94,118 equity shares.
The company specialises in water and sewerage infrastructure solutions, including sewerage network construction and treatment plant development in states like Uttar Pradesh, Bihar, Uttarakhand, and Rajasthan.
At 10 am, the Sensex slipped by 443.07 points or 0.66 per cent to reach 66,357.77, while the Nifty declined by 116.90 points or 0.59 per cent to 19,784.50
Benchmark indices started Thursday's session in negative territory, with the Nifty trading below 19,850.
The Sensex dipped 307.35 points or 0.46 per cent at 66,493.49, in early trade while the Nifty saw a drop of 77.50 points or 0.39 per cent at 19,823.90.
The government plans to divest a 4.92 per cent stake in SJVN through a two-day offer for sale (OFS) at a floor price of Rs 69 per share, starting on Thursday.
"Offer for sale in SJVN opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 4.92 percentequity including a Green Shoe option of 2.46 percent," DIPAM Secretary Tuhin Kanta Pandey said on X.
The rupee on Thursday opened at 83.09 against the dollar, compared to the previous day's closing rate of 83.07 per dollar.
The Sensex declined 24.32 points or 0.04 per cent at 66,776.52 during the pre-opening session, while the Nifty saw a minor dip of 16.00 points or 0.08 per cent at 19,885.40.
In the Asian market, major indices declined around in early trade, Japan's Nikkei, and Hong Kong's Hang Seng slid 1 per cent.
Barring Russall 2000, most European indices gained marginally. FTSE climbed nearly 1 per cent.
U.S. stocks declined on Wednesday following the Federal Reserve's announcement that it might not reduce interest rates as much next year as initially anticipated, regardless of Wall Street's desires. The S&P 500 fell by 0.9 per cent to 4,402.20, the Dow Jones Industrial Average dropped 0.2 per cent to 34,440.88, and the Nasdaq composite saw a 1.5 per cent decrease to 13,469.13.
The US Federal Reserve kept interest rates unchanged but adopted a more hawkish stance, hinting at another rate hike by year-end and maintaining a tighter monetary policy through 2024. They expect the benchmark interest rate to peak around 5.50 per cent-5.75 per cent this year, slightly above the current range, similar to their June projection.
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 Wednesday, the key equity benchmarks, Sensex and Nifty, saw the second consecutive day of losses, primarily due to the selling of heavyweight stocks like Reliance and HDFC Bank. Analysts have attributed this downturn to a broad sell-off in global markets, which exerted downward pressure on domestic markets.
Furthermore, there was a sense of caution among investors ahead of the forthcoming announcement from the US Federal Reserve, which contributed to the overall negative sentiment. At the closing bell, the S&P BSE Sensex had dropped by 796 points, equivalent to 1.18 per cent, settling at 66,800.84. Similarly, the Nifty saw a decline of 231.90 points, or 1.15 per cent, closing at 19,901.40.
September 21 trading session will mark the weekly options expiry for Nifty50 contracts.
The US Federal Reserve after a two-day Federal Open Market Committee (FOMC) meeting left the benchmark interest rates unchanged at 5.25 per cent - 5.50 per cent, a 22-year high.
Jefferies' Mahesh Nandurkar, as per a CNBC TV18 report, said that while political continuity is expected in 2024, rising oil prices are creating fiscal pressures. This may lead to a reallocation towards social spending, potentially increasing pressure on public sector disinvestment. Jefferies has adjusted its investment strategy accordingly.
In terms of technical analysis, experts noted that the Nifty 50 faced resistance at 19,900 and exhibited signs of temporary oversold conditions, possibly leading to rangebound trading in the near future.
IPO Updates
EMS Limited, an infrastructure company specializing in sewerage solutions, will be listing on September 21. The company's initial public offering (IPO) received substantial investor interest, with a subscription rate of 75.28 times. Qualified institutional buyers subscribed 153.02 times their allotted quota, while high net-worth individuals subscribed 82.32 times, and retail investors subscribed 29.79 times their allocated quota.
Hi-Green Carbon Ltd., the flagship company of Radhe Group of Energy with a price band of Rs 71-75 per share will be open for public subscription from September 21 to September 25. At the upper end of the price band, the IPO is expected to raise up to Rs 52.80 crore. The company's shares will be listed on NSE Emerge.
Mangalam Alloys Limited, a stainless steel and special alloy producer, is set to go public on September 21. The company aims to raise Rs 54.91 crore, and its shares will be listed on the NSE EMERGE platform.
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