Business News at 05:30 pm on 12th December 2023

Let’s begin…Stocks of India’s state-owned companies continue their upward trajectory in 2023, marking the third consecutive year of gains. The BSE PSU index, reflecting the performance of public sector enterprises, has surged by an impressive 46.43% so far this year, surpassing the benchmark BSE Sensex index, which recorded a 14.93% return. Among the 55 constituents of the BSE PSU index, an overwhelming 53 have achieved double-digit returns in the current year, with power-related companies leading the pack. Rural Electrification Corporation (REC) emerges as the frontrunner, boasting a remarkable 250% return in 2023—its most substantial yearly gain since 2009. The stock reached a new all-time high of Rs 412 per share, closing positively in 10 out of the last 11 months.

Next up…GRM Overseas Ltd has sold more than 3 per cent stake in GRM Foodkraft Pvt Ltd (Foodkraft), a subsidiary of GRM Overseas Ltd focused on domestic India-based foods business, to Sauce.vc (Sauce), a consumer-focused venture capital fund, for an undisclosed amount. Sauce has also acquired an additional 1 per cent stake from other shareholders. Atul Garg, MD, GRM Overseas Ltd, said, quote, “We are delighted to welcome Sauce.vc as a strategic investor. We look forward to deriving substantial advantages from the wealth of experience and a demonstrable history of creating new-age brands by the Sauce team. Our goal is to evolve our brands into distinguished names in their respective product categories. We also intend to work with the Sauce team to identify emerging areas for launching new brands in packaged foods and to explore deepening our presence in digital channels including e-grocers, quick commerce, and e-commerce,” unquote.

Now let’s talk money…Having insurance coverage is crucial for managing a health emergency, but it’s equally important to maintain financial stability when faced with a health crisis. Often there are many confusions and doubts when you purchase a term insurance plan, but these can be addressed if you carefully assess your requirements. Here are 7 key factors that will assist you when you decide to purchase the most suitable term insurance plan – Assess Your Coverage Needs, Understand Terms and Conditions, Choose the Right Insurer, Compare Premiums and Benefits, Disclose Accurate Information, Consider Add-Ons or Riders, and Review Regularly.

Additionally…Coal India (CIL) on Tuesday announced that its capital expenditure increased by Rs 741 crore in eight months ending November FY24 to Rs 10,492 crore. This is 7.6 per cent higher in comparison to Rs 9,751 crore during the corresponding period last year, it said in a regulatory filing. CIL’s focus on strengthening coal evacuation infrastructure in its mining areas saw the capex under the three heads going up to Rs 3,247 crore, representing 31 per cent of the entire capex, till November 2023. Setting up railway sidings and corridors at Rs 1,842 crore; construction of coal handling plants (CHPs) and silos for mechanized transportation of coal including weighbridges at Rs 1,292 crore and establishing roads amounting to Rs 113 crore, cumulatively, made up Rs 3,247 crore, the company stated.

In other news…The extension of metro services between Noida and Greater Noida West faces a significant setback due to the lack of seamless connectivity between the Noida Metro Rail Corporation’s (NMRC) Aqua Line and Delhi Metro’s Blue Line. In response to these challenges, NMRC Managing Director Lokesh M highlighted the constraint of seamless connectivity in the current detailed project report (DPR) for the Noida-Greater Noida metro extension. While a Foot Over Bridge connection (FoB) with travellators has been planned to link sector-51 and sector-52 stations, Lokesh M expressed reservations about its efficacy, citing the 430-meter distance between the two stations as a persistent deterrent for commuters. The proposed extension of the Aqua Line has been met with local residents’ demands for improved metro services and seamless connectivity with the Blue Line in Noida.

Moreover…In a comprehensive financial tour across three major cities in India, global investment banking firm Jefferies conducted over 20 meetings in a span of 5 days, delving into insights from both banking and non-banking financial sectors. The key takeaways provide a nuanced view of the current state of India’s financial landscape. Jefferies found that the overall outlook for credit growth remains robust, despite a notable pullback in the unsecured personal loan segment. Banks are facing a key challenge on the deposit side, signaling potential concerns in liquidity management. However, institutions appear sanguine about asset quality, with limited perceived risks in the unsecured loans segment. Interestingly, while private capital expenditure is experiencing a limited uptick, the report suggests that corporates are actively reducing leverage.

Lastly…let’s see how the share market performed today. The benchmark equity indices ended Monday’s trading session in the negative territory. The NSE Nifty 50 dipped 90.70 points or 0.43% to settle at 20,906.40, while the BSE Sensex dropped 377.50 points or 0.54% to 69,551.03. The broader indices ended in negative territory, with fall led by Largecap and Midcap stocks. Bank Nifty index ended lower by 216.70 points or 0.46% to settle at 47,097.55. Media and Metal stocks outperformed among the other sectoral indices while Realty and Auto stocks shed.