Business News at 05:30 pm on 11th March, 2024

Let’s begin – Market regulator SEBI will introduce T+0 settlement on an optional basis starting March 28. The Chairperson Madhabi Puri said this at an interaction on the sidelines of an AMFI event in Mumbai. T+0 settlement essentially means settlement on the same day or instantaneous settlement. Trade at the moment is on a T+1 basis. This will be existing along with the T+1 settlement cycle that’s already there in the secondary market. According to the SEBI Chief, the instantaneous settlement is aimed at “making our regulated markets competitive and offer investors the same set of advantages as others.” She was referring to other alternative investment options like crypto available to investors globally.
Meanwhile – The commercial vehicle sales saw a slowdown in February, registering a decline of 0.7 percent on YoY basis, but a sequential growth of 5.1 percent says ICRA. It primarily attributes the muted growth to the slowdown in construction activity ahead of the implementation of the model code of conduct for General Elections. And also, the broader base effect catching up. The retail volumes, on the other hand, showed 4.8% YoY growth while reporting a marginal 0.9% sequential decline in February 2024. During the 11-month period of FY2024 (April 2023-February 2024), the domestic CV wholesale volumes registered a YoY growth of 2.1 percent as healthy infrastructure spending by the government during H1 FY2024 was offset by a slowing down of construction activity during the rest of the period.
In a separate development – Pune-based Blue Energy Motors, a green truck manufacturing company has announced a significant milestone as its fleet of LNG trucks have cumulatively crossed the landmark of 1 crore kilometres on Indian roads in various customer applications. The trucks while covering over 1 crore kilometres have effectively helped reduce over 3,000 tonnes of CO2 emissions, which is equivalent to the environmental benefit provided by 1.2 lakh mature trees. India’s trucking market is expected to grow four times larger by 2050 from 4 million trucks in 2022 to 17 million trucks, which will boost the nation’s economy and increase transportation emissions.
In another development – Ahead of the auctions in May, telecom operators, especially Reliance Jio and Vodafone Idea, have opposed the government’s decision to allocate additional 5 MHz spectrum worth over Rs 19,000 crore to Indian Railways in the 700 MHz band. This is because the same will deprive them from bidding for this band, which may affect the 5G coverage. In addition, the government also stands to lose revenue. With the entire 45 MHz of spectrum worth over Rs 1.7 trillion in the 700 MHz band already allocated, the same has not been put up for sale in the upcoming auctions. The 700 Mhz band has already been allocated for the use of different government ministries/departments/agencies, which includes 10 MHz for the defence ministry, 10 MHz for Indian Railways, 5 MHz for National Capital Region Transport Corporation (NCRTC), and 10 MHz for BSNL. In 2022, auctions, Jio acquired 10 MHz spectrum worth Rs 40,000 crore.
Now news related to Gopal Snacks IPO – March 11 is the last date to apply for Gopal Snacks IPO. The bidding for the issue was opened on March 6. The company is in the business of snacks and namkeen and is the largest manufacturer of a Gujarati namkeen called gathiya. The company not only produces snacks for India but also exports internationally to many countries. It also makes Western snacks like wafers, extruded snacks, and snack pellets. The company currently has six manufacturing units based in Maharashtra and Gujarat. The company will raise Rs 650 crore from the investors.
In another development – Oil India Ltd. declared a second interim dividend of Rs 8.50 per share for the financial year 2023-24, representing 85% of the paid-up capital. The record date for eligible shareholders is set for March 18, with the dividend payment scheduled on or before April 7. The company has a strong dividend track record, having consistently declared dividends for the last five years. In its meeting on March 8, 2024, the Board of Directors approved the second interim dividend, reinforcing OIL’s commitment to rewarding its shareholders. For the fiscal year ending March 2023. The company had declared an equity dividend of 200.00%, amounting to Rs 20 per share, resulting in a dividend yield of 3.17 per cent at the current share price of Rs 630.10.
Lastly – The benchmark equity indices closed in negative territory on March 11. The NSE Nifty 50 closed 160.90 points or 0.72% lower to settle at 22,332.65, while the BSE Sensex lost over 600 points or 0.83% to settle at 73,502.64. The broader indices closed in the red, with smallcap and microcap stocks bleeding the most. Following the trend, Bank Nifty lost 507.95 points or 1.06% to settle at 47,327.85.