Today’s Latest Business News Transcript at 10:00 AM on 21 December 2023
Let’s begin – GIFT Nifty traded down by 153 points or 0.72% at 20,064, indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 slumped 302.95 points or 1.41% to settle at 21,150.15, while the BSE Sensex dropped by 930.88 points or 1.30% to 70,506.31. The stocks to keep an eye on today are Mazagon Dock, Cochin Shipyard, Adani Green Energy, BSE, ZEEL, Ultratech, ICICI Bank and Sonata software.
Up next – Agreements for external commercial borrowings signed by Corporate India rose to $29.8 billion during April-October this fiscal year, as compared to $12.4 billion during the year-ago period, data from the RBI’s December bulletin show. That was a jump of over 140%. Disbursements or inflows too rose in a similar fashion in the period – these were $21.8 billion in the first ten months of the current fiscal year, up 77% on year. The unprecedented jump in ECBs indicates a new private capex cycle gaining momentum, and is also in sync with relatively higher levels of capacity utilisation in a section of the Indian industry. The easing of ECB rules by the Reserve Bank of India in June last year also prompted many Indian companies to tap the overseas market for capital.
Moving on – Even as Vodafone Idea continues to report subscriber churn for 2.5 years now, the telecom operator in September reported an increase in active subscribers for the first time in 1.5 years, according to data from the Telecom Regulatory Authority of India (Trai). Out of the total 227.5 million subscribers, the company’s active subscribers at the end of September were at 199.8 million, an increase of 0.4 million from the previous month. The last time Vodafone reported an increase in active subscribers base was in March 2022, when it was at 226.1 million. The reason for this surge in September this year can be attributed to improvement in subscriber mix with the addition of 4G users, according to analysts.
In another development – The bond market witnessed strong fundraising activity on Wednesday, with Bank of Baroda, National Bank for Agriculture and Rural Development and the Indian Renewable Energy Development Agency raising Rs 13,500 crore through bond issuances. The issuances of NABARD and Bank of Baroda were fully subscribed, while IREDA managed to raise Rs 1,000 crore against the total issue size of Rs2,500 crore. IREDA’s bond issue had the base size of Rs500 crore and Rs 1,500 crore in greenshoe option. A greenshoe is the over-allotment option that allows companies to issue more bonds or raise more funds than the base issue size.
Meanwhile – Air India Express is set to launch its inaugural flight to Ayodhya from Delhi on December 30, with daily scheduled services starting from January 16. The Maryada Purushottam Shri Ram International Airport in Ayodhya has an extended runway suitable for A-321/B-737 type aircraft. The inaugural flight, IX 2789, is scheduled to depart from Delhi at 1100 hours and arrive in Ayodhya at 1220 hours. The return flight, IX 1769, will depart Ayodhya at 1250 hours and land in Delhi at 1410 hours. Air India Express, a subsidiary of Air India, emphasises its commitment to enhancing connectivity from Tier 2 and Tier 3 cities. The Ayodhya airport, developed at a cost of around Rs 350 crore by the Airports Authority of India, received its aerodrome license from the DGCA on December 14.
In other news – Various entities of Blackstone group sold 223.6 million shares or 23.6% stake in the Embassy Office Parks REIT at Rs 316 apiece.The total value of the transaction was Rs 7,065 crore — a discount of 4.85% to Wednesday’s closing of Rs 332.11. The REIT’s units closed over 1% lower than Tuesday’s close. Rs 310 was the floor price. Blackstone entities including BRE Mauritius Investments , BRE Mauritius Investments II, BREP Asia HCC Holdings Pte Limited, India Alternate Property and others sold their stake, bulk deal data on the exchanges showed. APAC company XXII, Fidelity Funds South East Asia Fund, Smallcap World Fund INC were the major buyers.
Lastly – The Reserve Bank of India’s move Tuesday disallowing lenders from investing in alternative investment funds, which have invested in a debtor company, is likely impact the net worth of select non-banking finance companies, analysts said. According to a report by Jefferies, Piramal Enterprises has Rs 4,500 crore or 7% of overall assets under management as investments in AIFs, whereas IIFL Finance has nearly Rs 1,100 crore or 2% of its overall AUM as AIF investment as of March end. These AIFs have made investments in debtor firms of the two NBFCs, but the investments are mostly in accounts where the exposure is preceding the last 12 months.