Business News Highlights: Stock Market Close, Sensex Up 165 Points, Nifty Ends Flat Amid Volatility
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India's industrial production rose by 3.8 per cent in January, as per official data released on Tuesday. The growth, measured by the Index of Industrial Production (IIP), compares to a 5.8 per cent increase in January 2023. "India's Index of Industrial Production experiences a 3.8 per cent growth in January 2024," according to an official statement.
Retail inflation in India slightly eased to 5.09 per cent in February from 5.10 per cent in January, remaining well within the Reserve Bank of India's (RBI) tolerance range of 2-6 per cent for the sixth consecutive month. Rural inflation held steady at 5.34 per cent, matching January's figure and slightly below December's 5.93 per cent. Urban inflation marginally decreased to 4.78 per cent in February compared to 4.92 per cent recorded in January.
The Karnataka government sanctioned the increase of Dearness Allowance (DA) for state government employees from the current 38.75 per cent to 42.5 per cent on Tuesday. This announcement precedes the upcoming Lok Sabha elections. Additionally, the DA for employees receiving central pay scales will be raised from 46 per cent to 50 per cent, according to an official statement.
The rupee remained within a narrow range throughout the day and closed 3 paise lower at 82.78 (provisional) against the US dollar on Tuesday. Market participants adopted a cautious stance ahead of the release of critical macroeconomic data. Forex traders noted a marginal decline in the Indian rupee, influenced by a stronger US dollar and a rebound in crude oil prices.
The stock market experienced a volatile trading session on Tuesday; the Indian benchmark indices closed with a mixed performance. The BSE Sensex climbed 165.32 points, or 0.22 per cent, to reach 73,667.96, whereas the Nifty edged up by three points, or 0.01 per cent, to settle at 22,335.70. Following a neutral to positive opening, the market saw an expansion in gains throughout the day. However, profit booking occurred later in the session, accompanied by selling in various sectors except for Information Technology stocks.
Odisha Chief Minister Naveen Patnaik said on Tuesday that women employees across various departments of the state government will now be entitled to 25 days of casual leave per year. This initiative grants an additional ten days of casual leave to women employees, bringing their total annual casual leave to 25 days, as per an official statement.
SIDBI announced on Tuesday that it will raise Rs 5,000 crore through a rights issue in the upcoming financial year to support its business expansion. The institution, which serves as a refinancing entity for SME finance, is experiencing robust credit growth and aims to mobilise additional capital to fuel further business development efforts, stated S Ramann, Chairman and Managing Director of SIDBI.
The state government of Arunachal Pradesh has approved a supplementary 4 per cent dearness allowance (DA) for its employees, effective from January 1, Arunachal Pradesh officials disclosed on Tuesday. This increase will extend benefits to 68,818 state government employees and 33,200 pensioners, they stated.
As a result of this adjustment, the DA for employees and dearness relief (DR) for pensioners has surged to 50 per cent. The state anticipates an extra expenditure of Rs 124.20 crore annually due to this update, they further noted.
RK Swamy, an integrated marketing services firm, had a weak debut on the bourses on Tuesday, opening at a 13 per cent discount from its issue price of Rs 288. On the NSE, the stock commenced trading at Rs 250, reflecting a discount of 13.19 per cent from the issue price. Similarly, on the BSE, the company's shares debuted at Rs 252, down 12.5 per cent compared to the issue price.
Early trading sessions saw the company commanding a market valuation of Rs 1,420.93 crore on the exchange.
Several members of the commercial team in SpiceJet including the Chief Commercial Officer of the company has reportedly left the company, as per a report on Tuesday. "As part of SpiceJet’s strategic restructuring, several members of the commercial team, including the Chief Commercial Officer, have left the company with immediate effect. The company continues to see significant growth in revenue and load factor. With the recent fund raise, SpiceJet has speeded up the process of resolution of all past disputes. The company looks forward to adding capacity, growing rapidly and continuing to play a large role in the Indian aviation sector," SpiceJet Spokesperson told the news agency ANI.
The rupee started the day with range-bound trading against the US dollar on Tuesday, with investors adopting a cautious approach ahead of the release of critical macroeconomic data. Forex traders noted that attention would be on the US Feb CPI figures, while domestically, the focus would be on the Feb CPI and Jan IIP data, scheduled for release after market hours.
Despite positive sentiment from domestic equities and foreign fund inflows, as well as the broader weakness of the US dollar in the global market, the rupee faced pressure from rising crude oil prices. Beginning at 82.74 against the greenback, the rupee briefly touched 82.72, marking a marginal increase of 3 paise from its previous close at the interbank foreign exchange.
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 two primary equity indices on Tuesday, Sensex and Nifty, are experiencing upward movement driven by purchasing activity in TCS, HDFC Bank, Infosys, HCL Tech, and Reliance Industries stocks. At 10 am, the Sensex recorded a gain of 441.93 points, or 0.60 per cent, reaching 73,944.57, while the Nifty rose by 96.30 points, or 0.43 per cent, reaching 22,429. Among the listed stocks, 804 showed an increase in value, 2,290 experienced a decline, and 76 remained unchanged.
In the previous session on Monday, the two primary equity benchmarks, Sensex and Nifty, concluded trading with disappointing performances, anticipating the release of CPI inflation data scheduled for Tuesday. The BSE Sensex plummeted by 617 points to 73,503. Meanwhile, the NSE Nifty50 ended the day at 22,333, marking a decline of 161 points.
On Monday, JM Financial witnessed a significant decline in its stock value in the stock market. The company's shares plummeted by 9 per cent during the mid-session trade, marking a notable drop on the first trading day of the week, following regulatory restrictions imposed by the Securities and Exchange Board of India (SEBI) due to violations.
The company's stock saw a decrease of 8.72 per cent, reaching Rs 80.27 per share on the BSE, while it experienced a decline of 8.64 per cent, touching Rs 80.35 apiece on the NSE. The market regulator has restricted the firm from accepting new mandates to serve as a lead manager for public debt securities issuances after identifying regulatory breaches.
Further, market regulator SEBI announced an amendment in the regulations for real estate investment trusts on Monday, allowing investors to gain fractional ownership of rent-yielding real estate assets by investing a minimum of Rs 10 lakh. In response to increasing demand for high-value realty assets, SEBI has introduced the framework for Small and Medium Real Estate Investment Trusts (SM REITs). Experts believe that this move will profoundly benefit the burgeoning fractional ownership sector in the country.
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