Business News Highlights: Stock Markets End Lower, Sensex Plunges Near 71K, Nifty Over 21,500
Business News Highlights: Please follow this space for all the breaking news and latest updates from the Stock Market, economy and corporate world
In a move to empower women in India, the Government announced on Monday that they amended the long-standing established pension rule, thereby allowing female employees to nominate their son or daughter for a family pension instead of their husband. Union Minister of State for Personnel, Dr Jitendra Singh, said, "The Department of Pensions and Pensioners' Welfare (DoP&PW) has introduced an amendment to the CCS (Pension) Rules, 2021, allowing female government employees or pensioners to grant family pension to their eligible child/children after their own demise, instead of their spouse.”
FMCG firm, Gillette India Ltd on Tuesday reported a 39.62 per cent rise in profit to Rs 103.95 crore for the second quarter ended December of the financial year 2023-24, led by productivity interventions and moderation of inflation. The firm, which follows the July-June financial year, reported a profit of Rs 74.45 crore in the same period in the previous fiscal year. Its revenue from operations increased 3.36 per cent to Rs 639.46 crore during the quarter under review as against Rs 618.62 crore in FY23, Gillette India said in a regulatory filing.
Chemical firm SRF Ltd reported a 50 per cent drop in its consolidated net profit to Rs 253.43 crore for the third quarter in the current fiscal year in its financial results released on Tuesday. The company's net profit stood at Rs 510.9 crore in the quarter ended December 2022 in the preceding fiscal year.
The total income of the firm slipped to Rs 3,053.04 crore, from Rs 3,469.6 crore, on a year-on-year (YoY) basis. The company also announced a second interim dividend at 36 per cent, amounting to Rs 3.60 per share.
Dr Reddy's Laboratories reported on Tuesday an 11 per cent increase in consolidated net profit at Rs 1,379 crore for the third quarter ended December in the current financial year 2023-24, driven by higher market share in existing products in North America and growth in Europe. The drug giant logged a net profit of Rs 1,247 crore for the October-December quarter in the preceding fiscal year. Consolidated revenue climbed to Rs 7,215 crore in Q3FY24, compared to Rs 6,770 crore registered in the corresponding period a year earlier, the firm said via a regulatory filing.
JSW Paints announced on Tuesday that its revenue for the first nine months of the 2023-24 fiscal year stood at Rs 1,500 crore. The firm said that it remained confident of becoming profitable in the ongoing fiscal year. JSW Paints is an unlisted entity of the JSW Group conglomerate.
Bajaj Finserv on Tuesday reported a 22 per cent increase in consolidated net profit at Rs 2,158 crore for the December quarter of the fiscal year 2023-24. The financial services group earned a net profit of Rs 1,782 crore in the same period of the previous fiscal year. The total income increased to Rs 29,038 crore in the third quarter of the ongoing fiscal from Rs 21.755 crore in the year-ago period, the firm said in a regulatory filing. In addition, the interest income during the quarter increased to Rs 13,922 crore against Rs 10,430 crore on a year-on-year (YoY) basis.
The Indian rupee appreciated 5 paise to settle at 83.11 (provisional) against the US dollar on Tuesday, owing to a weak greenback against major currencies overseas amidst a muted trend in domestic equities. At the interbank foreign exchange market, the domestic unit opened at 83.14 against the greenback, and traded in a very tight range. The Indian currency hit an intraday low of 83.15 and a high of 83.11 against the American dollar and finally settled at 83.11 against the dollar, marking an increase of 5 paise (provisional) from its previous close. In the last trading session on Monday, the rupee depreciated 5 paise to settle at 83.16 against the US dollar.
The stock markets reversed on Tuesday and exhibited major volatility before erasing the gains from the previous trading session. The two key equity benchmarks traded in red during the day and ended lower. The BSE Sensex crashed about 800 points and settled near the 71,000 mark at 71,139.90, while the NSE Nifty50 dropped over 200 points and managed to close above the 21,500 mark at 21,522.10.
Furniture retailer Ikea introduced doorstep delivery service in 62 new markets in India, company CEO Susanne Pulverer said. The retailer expects online demand to increase in the coming years, it added. "At present, Ikea India gets around 25 per cent of its sales through online channels. The company will soon launch its Shop By Phone assistance service. This is part of the approach of the entire Ikea brand evolving towards an omnichannel approach globally, acknowledging the challenges of people having less time and the importance of convenience in their purchasing decisions," the CEO noted.
The Directorate General of Civil Aviation (DGCA) launched an investigation into IndiGo after one of the flights reportedly took off from New Delhi without the necessary clearance from the air traffic controller (ATC). The airline also removed the pilots operating the Delhi-Baku flight. In a release, the aviation regulator said, "With reference to reports around IndiGo flight 6E 1803 operating between Delhi and Baku on Jan 28, 2024, the incident is currently under investigation and, appropriate action will be taken as necessary."
The Securities and Exchange Board of India (SEBI) returned the IPO draft papers of Gretex Share Broking. The market regulator returned the company's DRHP on January 25 without giving any reason, according to an update on Sebi's website on Tuesday. This could cause a delay in the company's maiden share sale. The planned IPO comprises a blend of a fresh issue of 1.67 crore equity shares and an offer-for-sale (OFS) component of 30.96 lakh shares by shareholders. Earlier in December 2023, the company filed its Draft Red Herring Prospectus (DRHP) with the regulator.
Market regulator, the Securities and Exchange Board of India, cautioned against a round-the-clock trading window from an infrastructure perspective and noted that it hasn't received any official comments on the subject nor has it formed an opinion on the same till now. A newly formed brokers' body stated that it will look into the matter around February end, reported PTI.
Textile manufacturer Arvind Ltd reported an 8.41 per cent increase in consolidated net profit of Rs 94.32 crore for the third quarter ended December 2023, higher than Rs 87 crore in the corresponding period a year earlier, the company said in a regulatory filing on Tuesday. However, the revenue from operations declined by 4.62 per cent to Rs 1,888.24 crore during the reviewing quarter, against Rs 1,979.79 crore seen in the third quarter of the preceding fiscal year. The firm attributed the fall in revenue to price deflation.
NTPC Green Energy Ltd (NGEL) signed an MoU with the Maharashtra government to develop green hydrogen projects and its derivatives in Maharashtra. This MoU was signed as a part of the state government's Green Investment Plan in the next five years and is estimated to have a potential investment of Rs 80,000 crore, NGEL said in a statement on Tuesday.
NGEL signed an MoU with the Government of Maharashtra for the development of green hydrogen and derivatives (green ammonia, green methanol) of up to 1 million tonne capacity per annum, including pump hydro projects of 2 GW and development of RE projects with or without storage up to 5 GW in the state, the statement added.
Floor leaders of several parties attended an all-party meeting called by the government on Tuesday, ahead of the Budget session of the Parliament. Among those present in the meeting, Defence Minister and Lok Sabha Deputy Leader, Rajnath Singh, Parliamentary Affairs Minister, Pralhad Joshi, and his Deputy, Arjun Ram Meghwal, represented the government. NCP chief Sharad Pawar, Congress' K Suresh, TMC's Sudip Bandopadhyay, DMK's T R Baalu, Shiv Sena's Rahul Shewale, Samajwadi Party's S T Hasan, JD(U)'s Ram Nath Thakur, and TDP's Jayadev Galla were some of the other leaders present at the meeting.
The meeting was organised at the Parliament House complex, reported PTI. The meeting is typically a customary practice held before every session to allow leaders from different parties to highlight the issues they want to raise in the Parliament and the government to present a glimpse into its agenda and seek cooperation.
Fever FM announced on Tuesday that it is shutting down operations owing to the evolving trends in the media industry. Sharing a post on the social media platform LinkedIn, the HT Media-owned radio station said that ‘the journey must come to an end and the end for Radio is closer than you expect’.
Fever FM’s CEO, Ramesh Menon, addressed the public in the video, shared with the announcement, and said, “We made this difficult decision to shut down our station. This decision comes after careful consideration and is due to the evolving trends in the media industry.” The executive expressed his gratitude to the radio jockeys, advertisers, employees, and listeners of the station.
EPACK Durable Ltd on Tuesday made a tepid debut in the markets with a discount of nearly 4 per cent over the issue price of Rs 230. The firm's shares started trading at Rs 225 on the BSE, down by 2.17 per cent against the issue price. While, on the NSE, it opened at Rs 221, slipping 3.91 per cent against the issue price. The company saw its IPO subscribed 16.37 times on the last day of the subscription on January 24.
The Indian rupee traded in a narrow range against the US dollar in early trade on Tuesday, as domestic equities showed a negative trend. Forex traders noted that the increasing crude oil prices impacted investor sentiments. At the interbank foreign exchange market, the domestic unit opened at 83.14 against the American dollar and hit a high of 83.13 and a low of 83.15. In the last trading session on Monday, the Indian currency depreciated 5 paise to close at 83.16 against the greenback.
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 markets on Tuesday started on a reverse trend. In early trade, the BSE Sensex slipped almost 100 points to touch 71,847.49, while the NSE fell marginally and reached 21,706 in the morning.
After opening, the markets continued to trade in a downward trajectory. As of 9:58 AM, the Sensex was trading lower by over 100 points at 71,822.69, while the Nifty50 remained almost flat and stood at 21,731.70.
In the last trading session on Monday, the two key equity benchmarks, Sensex and Nifty, zoomed higher following a rally in Reliance shares and robust global cues. The S&P BSE Sensex gained almost 1,300 points intra-day before closing 1,241 points higher at 71,942. On the other hand, the NSE Nifty50 shut shop 385 points higher at 21,738.
Among major macroeconomic announcements lined up for the week is the Interim Budget set to be released on February 1 by Finance Minister Nirmala Sitharaman. While the budget being an interim one is not expected to bring in big changes, analysts anticipate some policy revisions keeping in mind the populist view.
On the IPO front, BLS E Services will open its IPO worth Rs 311 crore for subscription on Tuesday, and the offer will close on February 1.
Further, investors are also going to await the US Fed’s revisions on the monetary policy, with the Federal Open Market Committee meeting scheduled to begin on January 30. Among the major company earnings to be released today include Adani Total Gas, Bajaj Finserv, Blue Star, Voltas, and VIP Industries, among others.
The Finance Ministry in its January 2024 economy review said on Monday that India is anticipated to become the third-largest economy in the world with a GDP of $5 trillion in the next three years, and touch $7 trillion by the end of the decade, helped by continued reforms. “Ten years ago, India was the 10th largest economy in the world, with a GDP of $1.9 trillion at current market prices. Today, it is the 5th largest with a GDP of $3.7 trillion (estimate FY24), despite the pandemic and despite inheriting an economy with macro imbalances and a broken financial sector,” the ministry noted.
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