Top Business News of the Day: Sensex tumbles over 273 points, Adani Ports' $750 million bonds issue, and more

People walk past the Bombay Stock Exchange (BSE) building in Mumbai, India.   | Photo Credit: AP


4:27 P.M.

Increased tax collection this fiscal shows economic recovery: Minister

Minister of State for Finance Pankaj Chaudhary said on Tuesday increased tax collection in the first quarter this fiscal shows that the economy is on the recovery path.

Net direct tax collection in the April-June quarter of the current fiscal is over ₹2.46 lakh crore, as against more than ₹1.17 lakh crore during the same period of the previous fiscal.

“Reasons for increase in the collections include revival of economic activities and positive sentiments among taxpayers during this current financial year, leading to increased income estimates and higher advance tax payments in the first quarter of the FY 2021-22 as compared to the corresponding period of FY 2020-21,” he said in a written reply to the Rajya Sabha, according to a PTI report.

4:20 P.M.

Hyundai seeks govt support for boosting EV infrastructure in India

South Korean automaker Hyundai said on Tuesday any import duty rate cut by the government on imported electric vehicles (EV) would be very beneficial as it would help automakers generate much-needed volumes and reach a viable scale.

The automaker giant inaugurated its new corporate headquarters in Gurugram, upon completion of 25 years in India and a production of over 10 million cars.

Hyundai noted that support from the government in terms of taxation and creation of country-wide charging infrastructure are crucial for growing the EV segment in the country, PTI reported.

4:12 P.M.

Sensex tumbles over 273 points led by losses in Dr Reddy's, Axis Bank

Equity benchmark index Sensex dropped over 273 points on Tuesday, led by losses in index majors Reliance Industries, Dr Reddy’s Laboratories and Axis Bank amid a massive sell-off in Chinese markets.

NSE’s Nifty index fell 78 points or nearly 0.5% to 15,746.45, PTI reported.

Dr Reddy’s was the top loser in the Sensex, plunging over 10% after the company reported a 36% decline in net profit in the June-ended quarter.

Axis Bank, Sun Pharma, Kotak Bank, HDFC and ITC fell up to 3.19%. On the other hand, Tata Steel, Bajaj Finserv and Tech Mahindra were among the top gainers.

Separately, the rupee slipped by 5 paise to close at 74.47 (provisional) against the U.S. dollar on Tuesday as the dollar strengthened in the overseas markets and the domestic equity indices closed with losses.

4:05 P.M.

Flipkart appeals to SC against Karnataka HC's antitrust investigation

Walmart-owned Flipkart is said to have appealed to the Supreme Court against Karnataka High Court’s (HC) decision to allow an antitrust probe into the e-commerce firm and its rival Amazon to continue, Reuters reported citing three unnamed sources.

The Karnataka HC last week dismissed cases filed by both e-commerce firms aimed at quashing the Competition Commission of India’s (CCI) investigations.

Additional details of the challenge were not clear. The SC website showed Flipkart had filed a case against the CCI and other parties, without revealing further details, Reuters added.

3:53 P.M.

Global markets sink ahead of Fed's economy update

Global markets declined on Tuesday as investors awaited the Fed’s report on the central bank’s concern of inflation and when it might start rolling back easy credit and other economic stimulus.

London and Frankfurt opened lower while Shanghai and Hong Kong declined. Tokyo advanced 0.5%, according to an AP report.

Both the FTSE 100 in London and DAX in Frankfurt lost 0.9%, while Wall Street’s S&P 500 future was off 0.4%.

In Asia, the Shanghai Composite Index lost 2.5% as government enforcement actions weighed on Chinese internet firms. BSE’s Sensex sank 0.6% to 52,505.70.

3:36 P.M.

Adani Ports raises $750 million through issue of bonds

Adani Ports and Special Economic Zones Ltd said it has raised $750 million (around ₹5,582 crore) through the issue of bonds, including a 20-year unsecured bond from global markets.

The coupon rates for the 10.5-year and 20-year bonds were fixed at 3.8% and 5% respectively.

According to the company, it is the first infrastructure company to successfully raise 20-years worth of money from international markets.

3:31 P.M.

Canara Bank reports three-fold rise in Q1 profit

Canara Bank reported a three-fold rise in profit in the June-ended quarter, driven be decline in bad loans.

The public sector lender’s profit rose to ₹1,177.47 crore last quarter, compared to ₹406.24 crore in the same period last year.

The bank’s non-performing assets or bad loans declined slightly to 8.5% of the gross advances compared to 8.84% last year.

3:25 P.M.

Credit Suisse taps Goldman Sachs partner as chief risk officer

Credit Suisse on Tuesday appointed Goldman Sachs partner David Wildermuth as its new chief risk officer.

The move seeks to turn the corner on the Archegos and Greensill scandals that shook Switzerland’s second-largest bank. The scandals have prompted several sackings, executive changes and regulatory investigations to date, Reuters reported.

2:50 P.M.

China's new tutoring rules prompt private equity firms to exit

China’s new move to ban private tutoring firms from making a profit has triggered private equity investors to exit the industry they have poured billions of dollars into.

The regulation intends to ease pressure on children and reduce the financial burden on parents, which is said to have lowered birth rates in the most populated country in the world.

A Reuters report noted that many private equity industry sources say they were surprised by the severity of the rules that could kill many companies and block their exits.

The announcement of the new rules also triggered a massive fall in the shares of Chinese private education firms.

2:36 P.M.

Global securities regulators team to monitor SPACs

Global securities markets regulators said on Tuesday they have commenced scrunitising special purpose acquisition companies or SPACs, stating potential regulatory concerns.

SPACs are shell companies that list themselves on the stock market and use the proceeds to buy other companies. This form of investment garnered great attention on Wall Street and in Europe this year and is now spreading to several emerging markets.

The International Organization of Securities Commission (IOSCO) said in a statement that although SPACs may offer alternative sources of funding and provide opportunities for investors, they may also raise regulatory concerns, Reuters reported.

Separately, Britain's markets watchdog introduced a rule change to attract more listings from SPACs, stating the minimum sum raised should be half of what it had originally proposed.

1:33 P.M.

China's WeChat suspends new user registrations for security compliance

China’s most popular instant messaging app WeChat said it has temporarily suspended registration of new users as it undergoes a technical upgrade, to comply with China’s increasing regulatory and security scrutiny on internet firms.

The move is to ensure the social network aligns with the country’s “relevant laws and regulations”, according to a company statement.

Registrations on the Tencent-owned app will resume after the upgrade is completed in early August, the company noted.

1:13 P.M.

Dr Reddy's Q1 profit declines 36%

Dr Reddy’s Laboratories recorded a 36% decline in net profit for the quarter ended June 2021 due to higher expenses.

The pharma giant’s net profit fell to ₹380.4 crore last quarter compared to ₹594.6 crore in the same period last year. Total expenses rose nearly 25% last quarter compared to the year-ago period.

The company’s shares were trading 4.15% lower at ₹5,184.40 apiece on BSE, PTI  reported.

1:00 P.M.

ShareChat raises $145 million from Temasek, others

ShareChat, an Indian content sharing platform, has raised $145 million from Singapore-based Temasek Holdings and two other investors, pushing its valuation to $2.88 billion, according to a Reuters report.

This round of funding was led by Temasek and Moore Strategic Ventures, with participation from a fund jointly set up by Mirae Asset and South Korean web portal Naver Corp, ShareChat said in its statement.

ShareChat had raised $502 million from Tiger Global, Snap Inc, Twitter and some others, four months prior to the latest round of funding. It was valued at a little over $2.1 billion, at that time, the report noted.

12:35 P.M.

Amazon India eyes potential stake in domestic film, media distribution businesses

Amazon’s India division is looking for a potential stake in several domestic film and media distribution outlets including cinema chain Inox Leisure Ltd, according to an Indian Express report citing unnamed sources.

The move is part of the tech giant’s effort to conquer the video streaming and media space, after its content streaming platform Prime Video grew popular during the pandemic, competing with other international services including Netflix and Disney+.

However, Inox Leisure Ltd clarified in a regulatory filing the report is “factually incorrect” and no such discussions with Amazon have taken place.

Inox’s shares jumped as much as 14.3% to ₹346.20 after the report, Reuters had reported.

12:25 P.M.

South Korea's second-quarter GDP growth hits decade high

South Korea's economy expanded at the fastest annual pace in a decade in the second quarter as the country’s private consumption picked up.

South Korea’s gross domestic product (GDP) grew 0.7% in the second quarter, after rising 1.7% three months earlier, according to data from the Bank of Korea. It matched the 0.7% growth tipped in a survey, Reuters reported.

The economy surged 5.9% year-over-year, the fastest growth in a decade, in part because of the low base effect of last year but also driven by strong exports and imports, the report noted.

According to economists, South Korea’s pace of growth could slow in the third quarter as the government has introduced its toughest COVID-19 restrictions yet to check the worst outbreak in the country, the report added.

11:40 A.M.

Oil prices rise as tight supply, vaccinations offset virus concerns

Oil prices rose on Tuesday as investors bet on tight supply and rising vaccination rates to help outweigh any demand impact as result of rising COVID-19 cases across the globe.

Brent crude futures scaled 34 cents, or 0.46%, to $74.84 a barrel at 0508 GMT (10:38 A.M. IST), while U.S. West Texas Intermediate crude futures climbed 20 cents, or 0.28%, to $72.11 a barrel, Reuters reported.

The Benchmark prices increased even after the U.S. issued travel warnings to Spain and Portugal due to rising COVID-19 cases, the report noted.

11:00 A.M.

Tesla posts record profit in second quarter

Electric Vehicle (EV) maker Tesla reported its second-quarter earnings on Tuesday with profits higher than expected as a result of higher sales of vehicles like the Model 3 and Y, and cost reduction.

Tesla reported revenue of $11.96 billion in the second quarter of 2021 with a growth of 98% year-on-year. Analysts had expected revenue of about $11.3 billion, according to a Reuters report. Tesla posted a profit of $1.45 per share, surpassing analyst expectations for a profit of 98% per share, the report noted.

Tesla delivered 2,01,250 vehicles, including 1,99,360 Model 3 and Model Y’s.

10:30 A.M.

Rupee opens slightly higher

Rupee opened at 74.36 against dollar on Tuesday, slightly higher than its Monday closing of 74.42.

According to forex traders, the rupee is trading in a narrow range as investors await signs from U.S. Federal Reserve’s policy meeting, which will conclude on Wednesday, PTI reported.

9:50 A.M.

Auto parts sector likely to grow 20-23%: ICRA

The Indian auto components industry is expected to witness a 20-23% growth in revenues in the current financial year on the back of strong demand in domestic as well as global markets, aided by the low base, ratings agency ICRA said.

The agency noted that the industry bounced back ‘handsomely’ during the second half of last fiscal (FY21), with many auto components suppliers registering record revenue and profits during the fourth quarter. Exports, which account for 29% of the industry’s turnover, also witnessed healthy recovery, supported by strong traction in the key markets of the U.S. and Europe, it said.

9:30 A.M.

Benchmark Indian indices open higher

Indian indices opened higher on Tuesday. BSE Sensex opened at 52,995.72, up 143.45 points or 0.27%, while Nifty opened at 15,860.50, up 36.05 points or 0.23%.

9:20 A.M.

Earnings announcements expected today

As the earnings season progresses, several companies are expected to release their earnings report on Tuesday, for the June ending quarter, including Canara Bank, Dr Reddy's Laboratories, IIFL Finance, IndusInd Bank, InterGlobe Aviation, Lux Industries, Mahindra Logistics, Ramco Cements, Shemaroo Entertainment, and UCO Bank.

On Monday, firms such as Tata Motors, L&T, and Axis Bank announced their first quarter earnings.

9:10 A.M.

Major U.S. indices close at new record highs

The three major U.S. indices closed at new record highs on Monday as investors were optimistic about the upcoming earnings announcements from major U. S. firms, including Apple, Microsoft, Amazon, and Alphabet.

The S&P 500 closed at 4,422.30, up 10.51 points or 0.24%, the Dow Jones Industrial Average gained 82.76 points or 0.24% to close at 35,144.31, and the Nasdaq Composite closed marginally higher at 14,840.71, up 3.72 or 0.03%.

9:00 A.M.

Most Asian stock indices open in green, rise cautiously

Major Asian stock indices opened in green on Tuesday, except Hang Seng. Japan’s Nikkei opened at 27,911.93, up 78.64 points, and Topix at 1,934.18, up 8.56 points, while South Korea’s Kospi opened at 3,244.43, up 19.48 points.      

Hong Kong’s Hang Seng, opened at 26,011.51, down 180.81 points after closing at 26,192.32 on Monday. The stock index took a hit on Monday as Chinese technology and education stocks plunged amid regulatory fears.

Traders in the Asian equity market would keep an eye on the earnings announcements from major U. S. firms as well as the U.S. Federal Reserve’s policy meeting this week.

On Monday, benchmark Indian indices plunged. The 30-share BSE index ended 123.53 points or 0.23% lower at 52,852.27, while the broader NSE Nifty slipped 31.60 points or 0.20% to 15,824.45.

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Printable version | Sep 25, 2021 3:05:29 PM |

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