Business News Highlights: Stock Market Closes In Red, Sensex Slips 111 Points, Nifty Below 22,500
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Ashok Leyland has witnessed a 7 per cent decrease in its vehicle sales for March, with 21,317 units sold. This figure represents a decline from the 22,885 units sold during the same month last year. In March 2024, the company sold 14,517 units of medium and heavy commercial vehicles, along with 6,800 units of light commercial vehicles, totalling 21,317 units.
ICICI Securities announced on Tuesday the receipt of a tax demand totalling approximately Rs 66.70 lakh from the Gujarat State Goods and Services Tax (GST) department. This demand comprises a GST demand of Rs 31.78 lakh, interest amounting to Rs 31.72 lakh, and a penalty of Rs 3.20 lakh, the firm said in a regulatory Filing. Allegedly, the Gujarat GST authority has asserted this demand, including interest and penalty, citing an excess claim of GST credit. ICICI Securities intends to contest the matter before appellate authorities and plans to appeal against the order with the Commissioner (Appeals).
The closing price of ICICI Securities shares stood at Rs 719.85 each, marking a decrease of 0.54 per cent compared to the previous closing price on the Bombay Stock Exchange (BSE).
United Spirits Ltd announced in a regulatory filing on Tuesday that it has been issued a tax demand amounting to Rs 5.51 crore, including interest. The demand pertains to the non-submission of specific statutory declaration forms and delivery proofs. The Deputy Commissioner of State Tax in Nanded has imposed this demand in relation to Pioneer Distilleries Ltd, which was amalgamated with United Spirits Ltd effective from December 30, 2023.
Vedanta Ltd, a prominent player in the mining sector, has been served with GST demand notices amounting to Rs 1.86 crore for using input tax credit deemed ineligible by the tax authority. In response, the company has announced its intention to contest these orders through an appeal process.
According to a regulatory filing made on Tuesday, Vedanta revealed that the GST demand notices were issued by the Office of the Assistant Commissioner in Tirunelveli, Tamil Nadu. The orders pertain to the period from FY 2017-18 to FY 2021-22 and confirm the demand of GST linked to the Input Tax Credit availed by the company, which the tax authority has deemed ineligible.
The state-owned Hindustan Copper Ltd announced that its metal concentrate production surged by 11 per cent year-on-year to reach 27,404 tonnes during the fiscal year 2023-24 in an exchange filing on Tuesday. The company also disclosed that its ore production for FY24 stood at 3.78 million tonnes, marking a significant 13% increase compared to the previous year.
According to the company, the metal in concentrate (MIC) production of 27,404 tonnes achieved during FY24 represents the highest output recorded in the last five years. Additionally, the ore production of 3.78 million tonnes in FY24 marks the highest level achieved in the past four years.
A total of 76 companies successfully raised nearly Rs 62,000 crore through mainboard IPOs during the fiscal year 2023-24, reflecting a remarkable 19 per cent increase compared to the previous fiscal year, supported by buoyant secondary markets, enthusiastic participation from retail investors, and strong inflows from institutional investors. As FY2025 approaches, expectations are high for another outstanding year in terms of IPOs (Initial Public Offerings).
This optimistic outlook is driven by a combination of factors, including the surge in domestic capital, improved governance practices, the dynamic entrepreneurial landscape of India, and favourable government policies backed by Foreign Direct Investment (FDI) support, as highlighted in a report by Pantomath Financial Services Group.
Shree Cement Ltd announced the inauguration of its new integrated plant in Dachepalli village, Guntur, Andhra Pradesh, at a cost of Rs 2,500 crore, six months ahead of the planned schedule. According to a press release issued by the company on Tuesday, the newly established plant, with a production capacity of three million tons per annum, will enhance Shree Cement's manufacturing capacity to 56.4 MTPA.
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) may consider reducing the repo rate only in the third quarter of FY25, as indicated in a recent research report by Soumya Kanti Ghosh, the Group Chief Economic Advisor at the State Bank of India (SBI). The report also suggests that the RBI will maintain its current stance and continue with the withdrawal of accommodation.
The first MPC meeting for the fiscal year is scheduled for this week. The repo rate, currently standing at 6.5 per cent, represents the rate at which the RBI lends to commercial banks.
The Indian equity market concluded the day with a slight dip amid volatility. By the end of the trading session on Tuesday, the Sensex declined by 110.64 points or 0.15 per cent, settling at 73,903.91, while the Nifty slipped by 8.70 points or 0.04 per cent to reach 22,453.30. Among the traded stocks, 2,686 witnessed gains, 1,015 experienced declines, and 111 remained unchanged.
The Ministry of Road Transport and Highways (MoRTH) has exceeded expectations by raising Rs 40,314 crore through diverse asset monetisation methods during the fiscal year 2023-24, according to a senior government official. This surpasses the initial target of Rs 28,968 crore. The official informed PTI on Tuesday that this total includes Rs 15,968 crore from monetising four toll-operate-transfer (TOT) bundles, Rs 15,700 crore from Infrastructure Investment Trust (InvIT), and Rs 8,646 crore from securitisation.
In the previous fiscal year, 2022-23, the ministry had successfully raised Rs 32,855 crore through various asset monetisation channels.
Honda Motorcycle and Scooter India said on Tuesday that it clocked an increase of 81 per cent in domestic wholesales at 3,58,151 units in March, from 1,97,542 units dispatched in March 2023. The exports of the firm soared 95 per cent to 28,304 units in the month under review, from 14,460 units reported in the same month a year earlier. The overall sales of the firm also climbed to 3,86,455 units in March 2024, from 2,12,002 units in March 2023.
PepsiCo India announced on Tuesday its plan to invest Rs 1,266 crore in establishing a flavour manufacturing facility in Ujjain, Madhya Pradesh, as a strategic move to expand its operations in the country. Spanning 22 acres, the plant is projected to substantially enhance PepsiCo's beverage manufacturing capacity in India while also contributing to job creation and fostering a positive impact on the local economy, according to a statement released by the company. Construction of the upcoming facility is scheduled to commence in 2024, with anticipated operations set to begin in the first quarter of 2026.
BMW Group and Tata Technologies announced on Tuesday that the firms will form a joint venture (JV) to establish an automotive software and IT development hub in India. The companies will establish the main development and operations activities in Bengaluru and Pune, while the Chennai hub will focus on business IT solutions. The JV remains subject to regulatory approval, they added in the joint statement.
Bajaj Auto Ltd said on Tuesday that it clocked a 25 per cent growth in overall vehicle wholesales at 3,65,904 units in March, against 2,91,567 units sold in the same month a year earlier. The sales also included exports of the firm. The overall domestic sales of the auto firm jumped 18 per cent to 2,20,393 units in the month under review, against 1,86,522 units sold in the corresponding period last year.
Sobha Ltd informed on Monday that it received tax demand notices worth Rs 46 crore from the Income Tax department. The realty firm in a regulatory filing informed that it received the notices under section 156 of the I-T Act, 1961 and were related to the Assessment Years (AY) 2016-17 and 2022-23. The firm informed that it will file an appeal before the Commissioner of Income Tax (Appeals) against the orders.
The Indian Renewable Energy Development Agency (IREDA) said on Tuesday that it clocked its record high annual loan sanctions and disbursements in the 2023-24 fiscal year. The state-owned firm said that it sanctioned loans worth Rs 37,354 crore and distributed loans worth Rs 25,089 crore in FY24, leading to a growth of 26.71 per cent in the loan book. The loan book of the firm stood at Rs 56,650 crore, against Rs 47,076 crore a year earlier.
India's manufacturing sector demonstrated vigorous activity in March, as indicated by the latest data from the HSBC Purchasing Managers' Index (PMI) released on Tuesday. With a PMI of 59.1, it achieved its highest level in 16 years. The report highlights that the surge to this 16-year peak was fueled by substantial growth in both output and new orders since October 2020.
Read Here: India Clocks Manufacturing PMI At 16-Year High Of 59.1 On Rise In Output, New Orders
The stock market pared the gains made in the last trading session and traded in red on Tuesday amidst volatility. As of 10:47 AM, the BSE Sensex stood under the 74K mark, at 73,876.03, at a loss of nearly 140 points. On the other hand, the NSE Nifty50 inched lower by 30 points to hit 22,432 in the session.
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 stock market on Tuesday exhibited volatility and started trading on a muted note. The key equity benchmark indices traded in red and reversed on the gains made in the last trading session on Monday. As of 10:28 AM, the S&P BSE Sensex traded at 73,8872.46, at a loss of over 140 points, while the NSE Nifty50 stood at 22,425.50, down by 37 points.
In the trading session on Monday, the indices hit fresh peaks during intra-day trade, before paring their gains a bit and settling in green. The BSE Sensex closed at 74,014, climbing over 350 points, while the NSE Nifty50 settled the session at 22,462, up by 135 points.
The oil marketing companies (OMCs) slashes the prices of both 19 kg commercial cylinders and 5 kg Free Trade LPG (FTL) cylinders on Monday. This move saw the commercial cylinders becoming dearer by Rs 30.50, while the price of the FTL cylinders was brought down by Rs 7.50. The new prices came into immediate effect from April 1,2024.
The new effective price of the 19 kg cylinders in New Delhi stood at Rs 1,764.50 after the change. This change was prompted by the rise in commercial liquified petroleum gas (LPG) cylinder prices announced earlier by the companies on March 1, owing to the current fluctuations in market environment and fuel costs.
The RBI is all set to begin its first Monetary Policy Committee (MPC) meeting for the 2024-25 fiscal year on Wednesday. The central bank’s committee will take a decision on interest rates and the fiscal policy ahead. The final decision of the committee will be revealed on April 5, 2024. The last time the repo rate was hiked was in February 2023 when it was increased to 6.5 per cent. Experts believe that the bank will maintain the status quo on the rates.
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