New Bill on cryptocurrency after Cabinet approval: FM
The government will soon bring in a new Bill on cryptocurrency after it is approved by the Union Cabinet, said Finance Minister Nirmala Sitharaman on Tuesday in the Rajya Sabha.
A Bill on Cryptocurrency and Regulation of Official Digital Currency for introduction in the Lok Sabha has been included in the Lok Sabha Bulletin-Part II, as part of the government business expected to be taken up during the ongoing winter session.
Sun Pharma arm settles case worth $22.5 million
Sun Pharmaceutical Industries on Tuesday said its arm DUSA Pharmaceuticals Inc has reached settlement with Biofrontera to resolve a litigation over misappropriation of trade secrets and unfair practice, following which DUSA will receive $22.5 million (nearly ₹170 crore).
Gold jumps ₹41; silver cracks ₹667
Gold in the national capital on Tuesday jumped ₹41 to ₹47,217 per 10 gram in line with rally in international precious metal prices, according to HDFC Securities.
In the previous trade, the precious metal had settled at ₹47,176 per 10 gram.
Meanwhile, the rupee settled 10 paise lower at 75.17 (provisional) against the U.S. dollar as investor concerns grew over fresh impact of new COVID variant on the economy.
Edelweiss Financial Services to raise ₹1,000 cr via NCDs
Edelweiss Financial Services’ board has approved a public issue for raising up to ₹1,000 crore through non-convertible debentures, half of which will be mopped up in the first tranche.
A meeting of the debenture fundraising committee of the company’s board of directors held on Monday (November 29) considered and approved the public issue of secured, redeemable non-convertible debentures (NCDs).
Sensex, Nifty fall over Omicron worries
Equity benchmark Sensex dropped 196 points on Tuesday, hit by fag-end selling in auto and metal stocks following sluggish investor sentiment in global markets.
The selling pressure was triggered after European markets opened in the negative territory amid concerns over the Omicron variant of the coronavirus, traders said.
After rallying over 900 points, the 30-share BSE index surrendered all gains to settle 195.71 points or 0.34% lower at 57,064.87.
Similarly, the NSE Nifty declined 70.75 points or 0.41% to close below the 17,000-mark at 16,983.20.
Coal India to infuse ₹19,650 cr in rail infra
State-owned Coal India Ltd on Tuesday said it will invest an estimated ₹19,650 crore to strengthen its rail infrastructure.
The move will increase coal evacuation capacity of the PSU through rail mode by an additional 330 million tonnes per annum (MTPA) by FY2023-24 when the production is expected to scale up significantly.
Govt’s excise mop-up from petrol, diesel doubles
The central government’s mop-up from excise duty levied on petrol and diesel more than doubled to ₹3.72 lakh crore in the pandemic year 2020-21, out of which states were given less than ₹20,000 crore, according to a reply by the government in the Rajya Sabha on Tuesday.
FMCG consumption slips in July-Sep: Nielsen
India’s FMCG industry saw a decline in volume in September quarter this year, though it registered a value-led growth of 12.6%, according to a report by data analytics firm Nielsen.
While the metro market saw an upswing, rural markets slowed down due to consumption decline, it added. Earlier, rural was ahead of urban in terms of growth, after quickly recovering from the first wave of the pandemic.
Tariff hikes to help telcos invest more aggressively in 5G tech
The announced tariff hikes by the telcos could boost their operating profits by at least 40% and coupled with the moratorium on government dues, will help them invest more aggressively into 5G technology, says a report.
Tariff hikes to lift the EBITDA, or earnings before interest, taxes, depreciation, and amortization, of telcos by 40% and along with the moratorium on government dues, this will support 5G investments and credit profiles, Crisil said.
Fitch affirms ICICI Bank rating with negative outlook
Fitch Ratings has affirmed ICICI Bank’s ratings at ‘BB+’ with a negative outlook and retained the lender’s viability rating at BB.
The negative outlook comes despite the agency recently revising upwards the operating environment outlook of domestic banks to stable from negative, citing better than expected recovery in business and economic activity following the COVID-19 second wave.
Uber Eats to quit Hong Kong
Online food delivery platform Uber Eats announced on Tuesday it will quit Hong Kong at the end of 2021, ending five years of a battle for a share of the competitive food delivery market.
Uber announced the “difficult decision” in an online statement, which gave no reason for why it was winding down operations.
Global jet fuel demand under pressure
Global jet fuel markets remained under pressure as more countries expanded border restrictions to keep the Omicron variant at bay.
Jet fuel demand had been forecast to post a growth of 5,50,000 barrels per day to 5.9 million bpd in fourth quarter, according to the International Energy Agency.
“The real risk from the new variant is … the reimposition of more widespread flight restrictions during the winter and again reducing current global jet fuel demand of some 6 million barrels per day significantly,” energy consultancy FGE said.
Anand Rathi Wealth’s ₹660-crore IPO
Anand Rathi Wealth, part of Mumbai-based financial services group Anand Rathi, will open its ₹660-crore initial public offering (IPO) on December 2 with a price band of ₹530-550 per share.
The three-day IPO will be entirely an offer for sale of 1.2 crore equity shares by promoters and existing shareholders. Investors can bid for a minimum of 27 equity shares and in multiples of thereafter.
EdTech platform Adda247 raises around $20 million
EdTech platform Adda247 has raised around $20 million (about ₹150 crore) in a Series B funding round led by WestBridge Capital. Existing investors, such as Info Edge, Asha Impact and JM Financials also participated.
The latest infusion of the funds will be utilised to optimise technology, product and conduct senior-level hiring. The firm offers products like live-video classes, on-demand video courses, mock tests, and books focused on government examinations.
Omicron variant poses risks to global growth, inflation: rating agencies
The Omicron variant of the coronavirus could hurt global growth while also pushing prices higher, rating agencies Fitch Ratings and Moody’s Investors Service said.
The Omicron variant poses risks to global growth and inflation, especially as it comes during a period of already stretched supply chains, elevated inflation and labour market shortages, Moody’s noted.
Fitch said that it believes another large, synchronised global downturn, such as that seen in the first half of 2020, is highly unlikely but the rise in inflation will complicate macroeconomic responses if the new variant takes hold.
Reliance Capital shares tumble 5%
Reliance Capital shares tumbled 5% to its lower circuit limit of ₹18.10, a day after the Reserve Bank superseded the board of the Anil Ambani promoted company.
The Reserve Bank will shortly initiate bankruptcy proceedings against the debt-ridden NBFC in view of payment defaults and serious governance issues.
Go Fashion shares list with nearly 91% premium
Go Fashion shares listed with a premium of nearly 91% at ₹1,316 against its issue price of ₹690. At the NSE, the stock made its debut at ₹1,310, soaring 89.85%.
The initial public offer of Go Fashion (India) Limited, which owns women’s clothing brand Go Colors, was subscribed 135.46 times last week.
Rupee gains against U.S. dollar
The Indian rupee appreciated against the U.S. dollar in early trade after plunging to close at a five-week low in the previous session. The domestic unit opened on a strong note at 74.91, then advanced to 74.86 against the greenback, registering a rise of 21 paise.
The Indian currency was boosted by positive domestic equities and a weak U.S. dollar in the overseas markets. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.21% to 96.14.
Main IKEA retailer’s profits jump
Ingka Group, the owner of most IKEA stores globally, reported a jump in annual profit on the back of record demand for home furnishing. Its operating profit in the 12 months through August was up 31% at 1.9 billion euros.
Sales were up 6%, to above pre-pandemic levels, with online sales jumping to account for 30% of total sales, against 18% the year before.
Oil prices rise
Oil prices rose, extending a rebound from last week’s plunge on growing expectations major producers would put on hold plans to add 4,00,000 barrels per day of supply in January.
Brent crude futures gained 0.6%, to $73.91 a barrel, while U.S. WTI crude futures jumped 1%, to $70.68 per barrel. Oil dipped around 12% on Friday along with other markets on fears the Omicron would spark fresh lockdowns and dent global growth.
Star Health raises ₹3,217 crore ahead of IPO
Star Health and Allied Insurance Company raised around ₹3,217 crore from anchor investors ahead of its initial public offering (IPO).
The IPO comprises fresh issue of equity shares worth ₹2,000 crore and an offer for sale of up to 58,324,225 equity shares by promoters and existing shareholders. At the upper end of the price band, the initial share-sale is expected to fetch ₹7,249.18 crore.
China factory activity grows in November
China’s factory activity grew in November, rising for the first time in three months as the surge in raw material prices and power rationing eased.
The official manufacturing Purchasing Managers’ Index (PMI) rose to 50.1 in November from 49.2 in the previous month.
Indian indices rise amid mixed global cues
Indian indices opened flat amid mixed global cues and advanced in early trade. At 9:21 A.M., the Sensex was up 413.9 or 0.72% to 57,674.48, while Nifty rose to 17,178.95, up 125 points or 0.73%.
On Monday, the 30-share Sensex closed higher by 153.43 points or 0.27% to 57,260.58. Similarly, the NSE Nifty gained 27.50 points or 0.16% to end at 17,053.95.
Asian share markets rebound
Asian share indices were mostly trading in green as investors became cautiously optimistic the new Omicron variant might not cause a widespread global economic disruption.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.52% higher. In Japan, Nikkei gained 0.76% and Topix added 1.06%. South Korea’s Kospi was trading 1.08% lower. Hong Kong’s Hang Seng Index was down 1.13%.
In U.S., markets reacted positively to news from President Joe Biden that new lockdowns as a result of the variant were off the table for now. The Dow Jones Industrial Average increased 0.68% to 35,135.94, the S&P 500 rose 1.32% to 4,655.27 and the Nasdaq Composite surged 1.88% to 15,782.83.
—- Edited by John Xavier
(With inputs from Reuters, PTI and other news agencies.)