Top economy and business news of the day| Indian shares end flat; Goldman sees upside risks to $90 a barrel forecast; Evergrande EV unit shares jump and more.

Bombay Stock Exchange (BSE) in Mumbai. File   | Photo Credit: PTI

 

Today's Agenda:

The Union government is expected to introduce two finance bills in the winter session of Parliament in November. One would split the Pension Fund Regulatory and Development Authority (PFRDA), Act, and the other is in connection with privatising public sector banks (PSBs).

While presenting this year’s Budget, Finance Minister Nirmala Sitharaman had announced the privatisation of PSBs as part of disinvestment drive to garner Rs 1.75 lakh crore.

In other global development, Exxon Mobil is planning to build carbon capture storage hubs in Southeast Asia, similar to its project in Texas. The energy company has started talks with some countries with potential storage options for carbon dioxide.

In China, embattled property giant Evergrande has announced to prioritize growth of EV business over its real estate operations. The update has pushed up its shares.

Tesla has rolled back its latest Full Self-Driving (FSD) beta software, less than a day after its release, after users complained of false collision warnings and other issues. – John Xavier

Please follow our live blog for updates on world economy, markets and corporations

5:12 P.M.

Indian shares end flat 

Indian shares ended mostly unchanged on Monday as losses in auto and information technology stocks were offset by gains in banks, after strong results from ICICI Bank drove other lenders higher.

NSE Nifty 50 index rose 0.06% to close at 18,125.40, while the BSE Sensex rose 0.2% to 60,967.05.

ICICI Bank rose as much as 14.2% to an all-time high after the lender posted an about 25% jump in quarterly profits.

ICICI Bank was the top gainer in the Sensex pack followed by Axis Bank, Dr Reddy’s, SBI, M&M and Tech Mahindra. On the other hand, Bajaj Finserv, Bajaj Auto, HCL Tech, Asian Paints and Maruti were among the laggards.

5:10 P.M.

Rupee settles lower against US dollar

The rupee ended 18 paise lower at 75.08 against the US dollar on Monday due to a spike in crude oil prices and a stronger greenback against key rivals overseas.

At the interbank forex market, the local unit opened on a weak note at 74.98 and witnessed an intra-day high of 74.97 and a low of 75.10 against the American currency during day trade to close at 75.08. On Friday, the rupee had settled at 74.90 against the US dollar.

4:27 P.M.

Engineering goods exports record positive growth: EEPC 

Exports of engineering goods have crossed $9 billion in September, 2021, while 22 out of 25 top export destinations like China, UK and UAE have recorded positive growth, Engineering Export Promotion Council (EEPC) said.

EEPC estimated the share of engineering goods in overall merchandise exports to be 26.65% in September, this year.

4:25 P.M.

Evergrande EV unit shares jump after chairman signals business shift

Shares in China Evergrande Group's electric vehicles (EV) unit rose on Monday as the reeling property developer moved to prioritise the growth of its nascent EV business over its troubled core real estate operations.

Evergrande has over $300 billion in liabilities. It averted a costly default last week with a last-minute bond coupon payment and has its next major payment deadline on Friday.

3:17 P.M.

Goldman sees upside risks to $90 a barrel forecast 

Goldman Sachs said a strong rebound in global oil demand could push Brent crude oil prices above its year-end forecast of $90 per barrel.

"We would need prices to rise to $110 per bbl to stifle demand enough to balance the market deficit we currently see in 1Q22 given our expectation that OPEC+ continues on the current path of +0.4 mb/d per month increases in quotas," Goldman Sachs said.

The investment bank said it expected oil demand to reach pre-COVID-19 levels of around 100 million barrels per day as consumption in Asia rebounds.

3:15 P.M.

Nykaa IPO to open on Oct 28

FSN E-Commerce Ventures Ltd, which operates online beauty e-commerce platform Nykaa, has fixed a price band of ₹1,085-1,125 per share for its initial public offer (IPO).

The IPO will open for subscription on October 28 and conclude on November 1. The IPO comprises a fresh issue of equity shares aggregating up to ₹630 crore and an offer for sale of up to 41,972,660 equity shares being offered by the selling shareholders, Nykaa said.

2:12 P.M.

Impartial audit essential for resilient economy: RBI Governor

Shaktikanta Das

Shaktikanta Das   | Photo Credit: PTI

 

RBI Governor Shaktikanta Das says, fair and impartial auditing is essential for a resilient economy as it instils confidence among citizens.
 

Highlighting some of the recent measures, he added, risk-based internal audit system for commercial banks was strengthened in January this year. He urged the auditor community to upgrade skills on a constant basis, and perform their task in the most effective manner.

2:06 P.M.

VC investments in India at a record high

VC investments in India more than doubled to $14.4 billion in the September-ended quarter, compared to $6.7 billion in the previous quarter, according to a report by KPMG on VC trends.

Investors outside traditional VC firms took part in a number of deals in the third quarter, including traditional PE firms, which have not historically been active in consumer tech deals in India.

Global VC investments also set a record with $171.7 billion across 8,682 deals in the September-ended quarter, 2021, according to the report.

2:03 P.M.

ICICI Bank shares surge

Shares of ICICI Bank rise after the bank reported its highest ever quarterly profit on standalone basis at ₹5,511 crore for the September-ended quarter 2021-22. A healthy loan growth across verticals, aided by fall in bad loans has boosted profit.

On NSE, ICICI shares jumped 14.18% to a one year high of ₹867.

12:45 P.M.

Honda Motorcycle to foray into EV segment

Honda Motorcycle & Scooter India (HMSI) WILL launch its first electric product in the country in the next financial year.

The company plans to start feasibility run of the electric scooter with its dealer partners at the end of the festive season this year.

EV is seeing a lot of traction since the government's push for clean technology in the automobile sector. Hero Motocorp, the country's largest two-wheeler maker has also announced the launch of an electric model next year.

12:10 P.M.

FPIs remain net sellers in October

Foreign portfolio investors (FPIs) turned net sellers in Indian market. From equities, FPIs took out Rs 2,331 crore, taking the total net outflow to Rs 3,825 crore during October 1-22.

"FPIs have sold software stocks worth Rs 5,406 cr in the first half of October even though the second quarter (Q2) results of software companies were good.  

There is a concern among FPIs over tapering of easy liquidity, rising oil prices, US bond yields and challenges to the Chinese economy. These have kept them from investing in Indian equities as well.

11:15 A.M.

Mcap of Reliance, TCS, Hindustan Unilever plunged last week

The combined market valuation of five in the top-10 most valued firms plunged Rs 1,42,880.11 crore last week. The market valuation of Hindustan Unilever Ltd (HUL) tumbled Rs 45,523.33 crore to reach Rs 5,76,836.40 crore. Reliance Industries Ltd (RIL) valuation fell by Rs 45,126.6 crore to Rs 16,66,427.95 crore, and Tata Consultancy Services (TCS) market worth tanked by Rs 41,151.94 crore to Rs 12,94,686.48 crore.

In contrast, a trio of banking stocks added more value. Kotak Mahindra Bank added Rs 30,747.78 crore, ICICI Bank Rs 22,248.14 crore and HDFC added Rs 17,015.22 crore to Rs 5,24,877.06 crore.

10:30 A.M.

Oil rises to multi-year high

Oil prices jumped to multi-year highs as global supply remained tight amid strong fuel demand in the world.

U.S. West Texas Intermediate (WTI) crude futures rose 1.0%, to $84.63 a barrel while Brent crude futures moved 0.8% up to $86.24 a barrel.

After a bleak fuel demand for over a year, consumption is back in the United States, the world's largest fuel consumer.

Oil prices have also been bolstered by worries about coal and gas shortages in China, India and Europe. However, analysts warn there may be some corrections in the coming weeks as the sharp rise in crude prices has led to a growing sense of caution.

9:45 A.M.

 

Asian markets open | Sensex falls

India's Equity benchmark index Sensex fell over 100 points with losses in index majors Infosys, HDFC Bank and Kotak Bank, amid positive trend in global markets.

Sensex was trading 0.19% lower at 60,706.69 during the initial trading hour. Nifty declined 58.55 points or 0.32% to 18,056.35.

Asian shares started the week on a steady note as the markets await major quarterly earnings announcements.

MSCI's broadest index of Asia-Pacific shares outside Japan was flat with a 0.5% gain in Australia balanced by a 0.6% fall in Korea .

Japan's Nikkei fell 1% and U.S. S&P 500 futures shed 0.18%. Asian shares have lagged US and Europe on account of regulatory pressure and fears of slowing growth in China.

 

----  Edited by John Xavier

 

(With inputs from Reuters, PTI and other news agencies.)

 

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Printable version | Nov 29, 2021 12:42:16 PM | https://www.thehindu.com/business/business-news-live-asian-markets-open-sensex-update/article37157227.ece

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