The benchmark stock indices opened the day on a positive note on the back of a rally in energy and IT stocks.
Join us as we follow the top business news through the day.
Financials lift Indian shares to new high ahead of cenbank meeting
Stocks bullish ahead of RBI policy announcement.
Reuters reports: "Indian shares closed at a record high on Thursday after two straight sessions of muted trading, as heavyweight financial and consumer discretionary stocks gained, while investors awaited the central bank's policy meeting outcome due Friday.
The blue-chip NSE Nifty 50 index closed 0.73% higher at 15,690.35, while the benchmark S&P BSE Sensex rose 0.74% to 52,232.43. Both the indexes have gained more than 7% in about 30 days to June 3, as a steady decline in daily COVID-19 cases has lifted investor sentiment.
The country has continued to see a decline in daily COVID-19 cases, with data from the health ministry on Thursday showing 134,154 fresh infections in the last 24 hours, keeping below the 200,000 mark for a week.
Meanwhile, the Reserve Bank of India on Friday is expected to keep its key rate at a record low but reaffirm its commitment to provide adequate liquidity as the country grapples with a deadly second wave of the COVID-19 pandemic.
Shares also tracked global stocks that clung close to record highs as investors weighed inflation concerns ahead of key U.S. economic data, while oil prices rose for a third straight session.
In domestic trading, private-sector lenders HDFC Bank Ltd and Kotak Mahindra Bank Ltd were among the top boosts to the Nifty 50, gaining 1.1% and 1.7%, respectively.
The Nifty Bank index rose 0.78% and the Nifty Private Bank index added 0.71%.
Among other notable stock moves, the country's biggest cold-storage chain operator, Snowman Logistics Ltd, gained 11.2%. The company said it had partnered with drugmaker Dr. Reddy's Laboratories to provide logistics for the delivery of Sputnik V COVID-19 vaccine doses."
Niti Aayog submits names of PSU banks to be privatised to Core Group of Secretaries on Disinvestment
Government think tank Niti Aayog has submitted to the Core Group of Secretaries on Disinvestment the finalised names of PSU banks to be privatised in the current fiscal as part of the disinvestment process, a senior government official said.
Niti Aayog has been entrusted with the task of selection of names of two public sector banks and one general insurance company for the privatisation as announced in the Budget 2021-22.
“We have submitted the names (of PSU banks) to the Core Group of Secretaries on Disinvestment,” the official said.
Rupee snaps 3-day losing streak, settles 18 paise higher at 72.91 against USD
The rupee recovers with help from stocks.
PTI reports: "The rupee snapped its three-day losing streak and closed 18 paise higher at 72.91 (provisional) against the US dollar on Thursday, supported by positive domestic equities.
Market participants remained vigilant ahead of Reserve Bank of India (RBI) monetary policy meeting outcome scheduled to be announced on Friday, forex traders said.
At the interbank forex market, the local unit opened on a weak note at 73.17 against the greenback and witnessed an intra-day high of 72.90 and a low of 73.18.
It finally ended at 72.91, registering a rise of 18 paise over its previous closing. On Wednesday, the rupee had settled at 73.09 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 per cent to 89.94.
Brent crude futures, the global oil benchmark, rose 0.17 per cent to USD 71.47 per barrel.
On the domestic equity market front, the BSE Sensex ended 382.95 points or 0.74 per cent higher at 52,232.43, while the broader NSE Nifty advanced 114.15 points or 0.73 per cent to 15,690.35.
Foreign institutional investors were net buyers in the capital market on Wednesday as they purchased shares worth Rs 921.10 crore, as per exchange data.
Meanwhile, with 1,34,154 fresh cases, India's COVID-19 tally has climbed to 2,84,41,986, while the daily positivity rate has further dropped to 6.21 per cent, the health ministry said on Thursday."
Mukesh Ambani draws nil salary
Richest Indian Mukesh Ambani drew no salary from his flagship firm Reliance Industries Ltd in the fiscal year ended March 31 as he voluntarily gave up remuneration in light of the pandemic hitting the business and the economy.
In its latest annual report, Reliance said Mr. Ambani's remuneration for financial year 2020-21 was "nil." In the previous fiscal year, he drew a ₹ 15 crore salary from the company - the same as in the previous 11 years.
Mr. Ambani has kept salary, perquisites, allowances and commission together at ₹ 15 crore since 2008-09, forgoing over ₹ 24 crore per annum.
"In light of the COVID-19 outbreak in India, which has exacted a huge toll on the societal, economic and industrial health of the nation, Mukesh D. Ambani, the Chairman and Managing Director, has voluntarily decided to forego his salary," the company had said in June last year.
Tata Motors raises $425 mln in offshore bonds to pare debt
Tata Group continues to deleverage.
Reuters reports: "Indian automaker Tata Motors has raised $425 million through unsecured offshore bonds at a rate of 4.35% to refinance existing debt and meet expenses, according to a term sheet of the deal seen by Reuters.
In a statement to the stock exchange, the company confirmed the fund raising and said it will use 225 million pounds ($318 million) of the proceeds to refinance existing loans and the rest to meet corporate expenses.
The bonds have a maturity date of June 2026, it said.
Tata Motors, which owns British luxury brand Jaguar Land Rover, said it received "significant interest from investors across Asia and Europe" with the bond issue over-subscribed by over five times.
The bond issue has a 'B' rating from Standard & Poor's Ratings Service.
In India, a AAA rated state-run firm would need to pay around 5.9% for raising 5 year funds at the current levels, making offshore fund raising attractive despite the currency conversion costs. Offshore sales also enable bond issuers to raise larger sums and diversify their debt-investor base.
About two dozen Indian companies collectively raised $14.01 billion abroad in 2020, down from $26.5 billion the previous year, according to data from Dealogic, a global analytics firm.
Tata Motors had net automotive debt of 409 billion rupees ($5.6 billion) at the end of last fiscal year through March 31. The company said in 2020 it plans to be net debt free at the end of three years.
Bank of America, BNP Paribas and ANZ were the lead managers on the deal, the term sheet showed."
Vistara gets permit to operate flights to USA
Tata Sons and Singapore Airlines joint venture Vistara has secured the US government's license to operate international flights, the airline confirmed on Thursday.
However, it will be some time before the airline launches its flights to the US.
“We confirm that Vistara has reached out to the relevant authorities in the United States of America to secure permissions to commence operations to the US. While we have received the Foreign Air Carrier permit from the Department of Transportation, USA, the process is still ongoing. We shall be sharing further details at an appropriate time," an airline spokesperson said.
Serum Institute seeks indemnity from liability: sources
With the Centre favourably considering granting indemnity against legal proceedings to foreign vaccine makers Pfizer and Moderna prior to their rollout in India, the Pune-based Serum Institute of India (SII) has also sought indemnity from liability, expressing the hope that rules would be the same for everyone, said sources on Thursday.
As per company sources, the Adar Poonawalla-led SII, which manufactures Covishield (the Indian name for the AstraZeneca-Oxford jab) vaccine, has reportedly conveyed to the Centre that all vaccine makers, whether Indian or foreign, ought to be granted the same protection (against the cost of compensation in the event of cases of severe side-effects).
Reliance Industries shares maintain winning run for 7th day; Mcap crosses Rs 14 lakh cr mark
A fresh rally in RIL stock.
PTI reports: "Shares of Reliance Industries Ltd extended its rally for the seventh consecutive day on Thursday and its market valuation crossed the Rs 14 lakh crore mark in morning trade.
The market heavyweight stock has jumped 14.53 per cent in seven trading sessions to hit a high of Rs 2,250 on Thursday.
Following the upbeat sentiment, the company's market valuation has reached Rs 14,04,123.26 crore on Thursday.
After record fundraising and debt prepayments, Reliance Industries now has a strong balance-sheet with high liquidity that will support growth plans for its three hyper-growth engines - telecom arm Jio, retail and oil-to-chemicals business, firm's Chairman and Managing Director Mukesh Ambani said.
In the company's latest annual report released on Wednesday, he said the company sold minority stakes in Jio Platforms - the unit that houses its telecom and digital business - and retail arm for almost Rs 2 lakh crore, 49 per cent in fuel retailing venture for Rs 7,629 crore and raised another Rs 53,124 crore through rights issue.
"We now have a strong balance-sheet with high liquidity that will support growth plans for our three hyper-growth engines Jio, Retail and O2C," he said.
During 2020-21, Reliance completed India's largest ever Rights Issue of Rs 53,124 crore (oversubscribed by 1.59 times), which was also the largest in the world by a non-financial institution in the last 10 years."
Financials, energy stocks boost Indian shares
An update on the stock indices.
Reuters reports: "Indian shares climbed on Thursday after two straight sessions of muted trading, as heavyweight financials and energy stocks gained, with sentiment aided by a positive finish on Wall Street overnight.
The blue-chip NSE Nifty 50 index rose 0.45% to 15,645.40 by 0529 GMT, while the benchmark S&P BSE Sensex rose 0.42% to 52,065.02.
Investors also eyed the Reserve Bank of India's meeting on Friday where it is expected to keep its key rate at a record low but reaffirm its commitment to provide adequate liquidity as the country grapples with a deadly second wave of the COVID-19 pandemic.
"The market has rejuvenated after two days of subdued trading and it is also taking cues from overnight gains seen in the U.S. markets," said Anand James, chief market strategist at Geojit Financial Services.
Wall Street's main indexes closed higher on Wednesday, ahead of U.S. payrolls data later this week, while broader Asian markets on Thursday were trading a touch below a three-month high hit recently.
In domestic trading, financials lifted the Nifty 50 index, with the Nifty Bank Index rising 0.36% and the Nifty Private Bank Index adding 0.41%.
The Nifty energy index was up 0.52%, with Reliance Industries Ltd and Oil and Natural Gas Corporation Ltd rising 0.6% and 2.9%, respectively.
Reliance, which has advanced for six straight sessions, and Kotak Mahindra Bank Ltd were among the top boosts to the Nifty 50.
Meanwhile, the country continued to see a decline in daily COVID-19 cases, with data from the health ministry showing 134,154 fresh infections in the last 24 hours. Its total tally of cases now stands at 28.4 million."
Tesla to buy more than $1 bln of Australian battery minerals a year
Tesla said it expects to spend more than $1 billion a year on battery raw materials from Australia given the country's reliable mining industry and responsible production practices.
Robyn Denholm, chair of the U.S. carmaker, said on Wednesday that Australia, which is rich in minerals used for batteries like lithium and nickel, is poised to benefit as developing supply chains for electric vehicle batteries and the green energy age focus on environmental, social and governance (ESG).
"We expect our spend on Australian minerals to increase to more than $1 billion per annum for the next few years," Denholm, an Australian, told a Minerals Council of Australia event.
Rupee falls 9 paise to 73.18 against US dollar in early trade
The Indian currency continues to weaken against the dollar.
PTI reports: "The Indian rupee slumped 9 paise to 73.18 against the US dollar in opening trade on Thursday tracking strengthening of the American currency in the overseas market.
Market participants remained vigilant ahead of Reserve Bank of India (RBI) monetary policy meeting outcome scheduled to be announced on Friday, forex traders said.
At the interbank foreign exchange, the domestic unit opened lower at 73.17 against the dollar, and lost further ground and touched 73.18, registering a fall of 9 paise over its previous close.
On Wednesday, the rupee had settled at 73.09 against the US dollar.
Most Asian currencies have started mostly flat to marginally stronger against the US dollar this morning and could lend support, Reliance Securities said in a research note.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 89.96.
Global oil benchmark Brent crude futures advanced 0.62 per cent to USD 71.79 per barrel.
On the domestic equity market front, BSE Sensex was trading 309.99 points or 0.60 per cent higher at 52,159.47, while the broader NSE Nifty advanced 85.90 points or 0.55 per cent to 15,662.10.
Foreign institutional investors were net buyers in the capital market on Wednesday as they purchased shares worth Rs 921.10 crore, as per exchange data.
Meanwhile, with 1,34,154 fresh cases, India's COVID-19 tally has climbed to 2,84,41,986, while the daily positivity rate has further dropped to 6.21 per cent, the health ministry said on Thursday."
India's services activity shrank in May on lockdowns, job cuts quicken
The economic pain continues in the services sector.
Reuters reports: "Activity in India's dominant services industry contracted in May for the first time in eight months as strict lockdowns to curb the second wave of COVID-19 dampened demand, prompting firms to cut jobs at the fastest pace since October, a private survey showed.
Despite a recent slowdown in reported infections, the South Asian nation is still recording well over 100,000 cases and over 3,000 deaths per day, forcing most provinces to keep tight restrictions on business activity in place.
The Nikkei/IHS Markit Services Purchasing Managers' Index fell to a nine-month low of 46.4 in May from 54.0 in April, sliding below the 50-level that separates growth from contraction for the first time in eight months.
Overall demand contracted at the sharpest rate since August, with foreign demand shrinking at the fastest pace since November.
"While PMI data released at the start of the month showed that the manufacturing industry managed to keep its head above water in May, the service sector struggled as the pandemic escalated," noted Pollyanna De Lima, economics associate director at IHS Markit.
"The intensification of the COVID-19 crisis and associated restrictions suppressed domestic and international demand for Indian services."
Although Asia's third-largest economy grew at an annual pace of 1.6% during the first three months of 2021, just before the devastating second wave of COVID-19 hit, economists are pessimistic about this quarter's growth prospects.
Services firms intensified their job cutting spree last month, laying off workers at the fastest pace since October, bad news for a labour market that has already seen millions thrown out of work in the past year.
A decline in business expectations to its lowest in nine months may lead firms to reduce payrolls further in coming months.
Input costs continued to surge, but firms were only able to pass some of the increase to customers due to weakening demand.
Despite an expansion in manufacturing activity, albeit at the slowest pace in 10 months, the contraction in services activity led an overall composite index to decline to a nine-month low of 48.1 in May, from 55.4 in April."
India's Nifty 50 hits all-time high; energy, IT stocks jump
A good start to the day for the stock indices.
Reuters reports: "India's Nifty 50 hit a record high on Thursday, boosted by energy and information technology stocks, with investors eyeing the central bank's policy meeting outcome later this week where it is expected to keep rates at record lows.
The blue-chip NSE Nifty 50 index rose 0.54% to 15,656.20 by 0404 GMT, while the benchmark S&P BSE Sensex gained 0.55% to 52,134.62.
The Reserve Bank of India's (RBI) monetary policy committee (MPC) will likely keep the key lending rate or the repo rate unchanged at 4% for a sixth straight meeting, holding at record lows.
Conglomerate Reliance Industries Ltd and software services giant Infosys Ltd were among the top boosts to the Nifty 50, gaining 1.5% and 1.1%, respectively. Shares of Reliance have risen for six straight sessions.
Meanwhile, the country continued to see a decline in daily COVID-19 cases, with data from the health ministry showing 134,154 fresh infections in the last 24 hours. Its total tally now stands at 28.4 million.
In the broader Asian markets, shares were a touch below a recent three-month high, with China a tad weaker as investors weighed inflation concerns ahead of key U.S. economic data."
Huawei unveils operating system in fight for survival
Chinese tech giant Huawei introduced its highly-anticipated homegrown mobile operating system (OS) on Wednesday, opening a new front in its fight for survival in the smartphone arena after the U.S. blocked it from using Android.
The company said its new HarmonyOS system is packed with special features and capitalises on growing demand to seamlessly link devices — known as “Internet of things”. But analysts said Huawei faced an uphill climb getting enough app developers to devise software and content for the OS to keep consumers buying the firm’s phones in a world dominated by Google’s Android and Apple’s iOS.
HarmonyOS is based on open-source elements of Android that Huawei and other companies remain free to use, and the company unveiled the first mobile devices pre-loaded with the system in an online launch.
