Business News at 05:30 pm on 16th January, 2024

Let’s begin…In a recent analysis, Jefferies delved into market dynamics of two giants – HUL and Bharti Airtel. The report highlights a shift in preferences, providing an insightful perspective for investors. Comparing two companies, Jefferies notes that while HUL and Bharti Airtel currently share similar market capitalization, their journeys over the past decade have been markedly different. Bharti Airtel faced challenges such as adverse regulatory environments and rising competition until 2019, whereas HUL experienced margin-led earnings growth that propelled its market capitalization to three times that of Bharti Airtel at one point. However, the tide seems to be turning. With telecom sector moving towards a duopoly, Bharti Airtel is gaining momentum, while growth present a complex scenario for HUL.

Next up….The total number of new demat accounts opened in December 2023 reached an unprecedented high of 42 lakh, bringing the total count to 13.93 crore in India. This surge represents a remarkable 50% increase compared to the previous month, which witnessed 28 lakh new demat accounts. Financial experts attribute this consistent rise in account openings as a clear indication of growing interest and active participation of investors. Throughout the financial year 2022-23, there was a notable addition of 2.5 crore demat accounts, averaging over 20 lakh per month. The statistics further highlight a substantial uptick in demat accounts registered with the two major depositories—Central Depository Services (CDSL) and National Securities Depository (NSDL) in FY23.

“Moreover…Saudi Arabia has launched new residency programs aimed at attracting skilled professionals and investment as Gulf country forges ahead with its plan to pivot its economy away from fossil fuels. The initiative aims to further drive the country’s economic transformation by creating employment opportunities and fostering knowledge transfers, it said in a statement. The five new premium programs cater specifically to professionals in healthcare, sports and real estate, amongst others. They will offer holders opportunities to settle in Saudi Arabia, conduct business, own real estate and obtain work permits for holders and family members. The move is part of Crown Prince Mohammed bin Salman’s Vision 2030 economic transformation plan to wean Saudi Arabia’s economy off its dependence on oil.”

“Let’s talk market…The broking firm Jefferies sees Jio Financial Services as taking a balanced approach towards growth. The brokerage house also believes that initial concerns about Jio Financial increasing competitiveness have limited risk for BAF and banks. On Monday, Jio Financial Services reported third quarter results. The company reported a net profit of Rs 293 crore, down 56% from previous quarter of Rs 668 crore. The company posted a net interest income of Rs269 crore in third quarter. Further, brokerage house said that company’s management is focused on consumer loans (secured & unsecured) and supply chain finance. The company has expanded its client base in insurance broking and is also ramping up its payments bank & payments platforms.”

“Additionally…Ahead of the Interim Budget to be presented next month, property developers are hoping for lower interest rates on affordable housing loans and lower taxes on such properties to boost demand. The realty sector also expects the government to increase cap on affordable housing units from Rs 45 lakh to a higher bracket depending on the city size. They also want the carpet area cap for such properties be increased from the current 60 square metre in metro cities and 90 sq m in other cities to higher limits. While sales have taken a hit due to high loan interest rates, developers have also been moving away from the segment due to a surge in the sales of premium properties.”

In other news…As Ram Mandir in Ayodhya is set to be inaugurated next week, on January 22, there has been a surge in people planning to visit the sacred city. This has spiked demand for travel to Ayodhya, which has led to an increase in both airfare and train fares. As pilgrims and tourists eagerly anticipate witnessing the historic moment, the transportation costs reflect the heightened interest and influx of visitors to the revered destination. Flights to Delhi- Ayodhya and Mumbai- Ayodhya routes on January 20 and 21 cost around Rs 16,000 as compared to the average fare on the route of around Rs 3,500 to Rs 4,000. The fares on the Mumbai- Ayodhya route have surged over Rs. 20,000.

Lastly…Let’s take a look at how the stocks performed today. The benchmark equity indices opened lacklustre. The NSE Nifty 50 dipped 16.95 points or 0.08% to settle at 21,660.95, while the BSE Sensex opens just 4.02 points or 0.01% higher to 73,331.96. The broader indices opened in mixed territory, with gain led by mid-cap and small-cap stocks. Bank Nifty index opened lower by 48.35 points or 0.10% to settle at 48,109.95. Top losers on the Nifty included Divis Laboratories, HCL Technologies and SBI Life Insurance, while gainers included BPCL, Tata Steel, Titan Company, ITC and Hindalco Industries. Among sectors, metal and oil & gas indices gained nearly 1 percent each, while power, realty, healthcare and IT down 0.5-1.5 percent each.