RBI MPC Begins Today, Stock Market Continues To Trade In Red
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India, ranked as the world’s third-largest oil consumer and importer, is planning to construct its inaugural commercial crude oil strategic storage to bolster its stockpiles to safeguard against potential supply disruptions. Indian Strategic Petroleum Reserves Ltd (ISPRL), established by the government to develop and manage strategic petroleum reserves nationwide, has issued bids for constructing a 2.5 million-tonne underground storage facility at Padur in Karnataka, as detailed in the tender document.
The Indian market concluded the highly volatile session on Wednesday with marginal movement. The Sensex concluded the day 27.09 points, or 0.04 per cent, lower at 73,876.82, while the Nifty registered a slight decline of 18.6 points, or 0.08 per cent, ending at 22,434.70. Despite initial negative trends influenced by weak global cues, the market recovered from losses during the early hours of trading. It approached record highs, buoyed by the performance of IT, metal, oil & gas, and power sectors. However, a surge in selling during the final hour wiped out the intraday gains.
Jindal Stainless announced on Wednesday that the firm has decided to divest its entire 26 per cent ownership in Jindal Coke by September of this year. In the initial phase, the company sold 4.87 per cent of its shares in Jindal Coke for over Rs 36.49 crore. These shares were acquired by JSL Overseas at the same valuation, as stated in a regulatory filing.
The government has abolished the duty on exports of up to 1,000 tonnes of the Kalanamak rice variety through six designated customs stations. Previously, there was a 20 per cent duty on overseas shipments of Kalanamak rice. According to a notification from the Finance Ministry, the duty exemption for exporting up to 1,000 tonnes of this rice variety will take effect starting Wednesday.
Control Print Ltd, a manufacturer of coding and marking products, revealed its acquisition of the business assets of V Shapes S.r.l., based in Italy, for approximately 3.7 million euros (equivalent to over Rs 30 crore) on Wednesday. This acquisition was conducted through Control Print Italy S.r.l, a wholly-owned subsidiary, as stated by Control Print in a released statement.
The company emphasised that this acquisition enables it to diversify its portfolio significantly in the packaging sector, particularly in sustainable packaging solutions, focusing on single-dose/single-serve packaging. Furthermore, it positions Control Print to serve a global clientele while expanding its international presence.
Air India announced on Wednesday that it is launching a new loyalty programme for its customers with additional rewards and benefits. The programme, ‘Flying Returns’, is a departure from the traditional miles-based points collection system to a spend-based reward system, the airline informed. “Members of the programme will now be able to avail the benefits and collect points based on the new structure, starting Wednesday,” it added. The programme will include features like no points expiry for active members, no blackout dates, customer-friendly interface, etc.
Malaysia Airlines entered into an agreement with IndiGo for a codeshare partnership to enhance connectivity between the nations. “Through this cooperation, Malaysia Airlines will be able to strengthen its connectivity with India, as the marketing carrier on IndiGo operated flights, while IndiGo customers will get to explore more Southeast Asia destinations through Malaysia Airlines’ extensive network,” IndiGo said via an official statement.
The Ministry of Home Affairs (MHA) cancelled the Foreign Contribution Regulation Act (FCRA) licenses of five NGOs after due process, stating violations like misuse of foreign funds, etc, reported ANI citing sources.
SRM Contractors, an engineering construction and development firm, commenced trading with a premium exceeding 7 per cent on Wednesday, surpassing its issue price of Rs 210. The stock debuted at Rs 225 on the BSE, marking a significant 7.14 per cent increase from its initial offering. Similarly, on the NSE, it opened at Rs 215.25, reflecting a rise of 2.50 per cent compared to the issue price.
Gensol Engineering announced on Wednesday that it clocked a record high revenue of Rs 960 crore in 2023-24 fiscal year(FY24), registering a growth of 141 per cent against Rs 398 crore logged in the last fiscal year. Anmol Singh Jaggi, Chairman and MD, Gensol Engineering Ltd, noted, “This achievement solidifies our status as a frontrunner in the renewable energy industry, emphasising our unwavering commitment to growth.”
The stock markets traded in volatility and reversed their losing streak on Wednesday. After opening the session in red, the equity benchmark indices attempted a recovery rally and inched higher. As of 10:25 AM, the BSE Sensex stood at 73,918.54, trading marginally higher by 15 points, while the NSE Nifty50 reached 22,464.35, inching up by about 11 points.
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The stock markets continued to exhibit the negative sentiment from yesterday and began the session in red on Wednesday. During the early trade, both the key equity benchmarks, Sensex and Nifty traded lower. The BSE Sensex slid over 280 points to reach 73,622.73, while the NSE Nifty50 plunged almost 100 points to hit 22,360.15.
As markets opened and the session progressed, the indices managed to recover from the losses slightly, however, remained in red. The BSE Sensex slipped about 227 points to trade at 73,676.53, as of 9:59 AM, while the NSE Nifty50 inched more than 50 points lower to reach 22,395.25.
In the last trading session on Tuesday, the equity benchmarks broke their three-day winning streak and settled lower amidst volatility. The Sensex settled down by more than 100 points at 73,902, while the Nifty closed the session marginally lower at 22,453, slipping about 9 points.
The markets gear up on Wednesday as the Reserve Bank of India begins its Monetary Policy Committee (MPC) meeting to discuss the fiscal policy and key rates going ahead. The three-day meeting will conclude on Friday, with Governor Shaktikanta Das revealing the outcome on interest rates. The meeting will mark the first for the new 2024-25 fiscal year.
Experts are of the view that the central bank will maintain the status quo on rates, which were last increased in February 2023. Jyoti Prakash Gadia, MD, Resurgent India, expressed that the bank will maintain the rates and said, “While the head line inflation is tapering off, the food inflation is volatile and along with fuel inflation they are still subjected to local and global supply chain uncertainties and therefore, RBI is expected to monitor the situation further till the head line inflation moves closer to 4 per cent.”
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