Business News at 05:30 pm on 17th January, 2024

Let’s begin. Life Insurance Corporation of India, a government-owned insurance giant, has regained its status as the most valued public sector undertaking, surpassing the market capitalization of State Bank of India. While SBI holds a market value of Rs 5.63 lakh crore, LIC has surpassed it with a market capitalization of Rs 5.64 lakh crore. As of 9:30 am, the SBI stock witnessed a 1.5 percent decline to Rs 624, whereas LIC traded at Rs 896 on the BSE, showing a 0.2 percent increase. Concurrently, the benchmark BSE Sensex experienced a 1.02 percent loss, settling at 72,386 points. Anticipated regulatory changes in the PAR and Non-PAR business segments are expected to contribute significantly to LIC’s long-term profitability.

Meanwhile, Billionaire Gautam Adani’s group has raised its stake in IANS India Pvt Ltd to take full control of the news agency as it consolidates its media presence. Adani Group had last month picked up a 50.50% stake in IANS and now it has raised the shareholding to 76% with voting rights and to 99.26% without voting rights, according to a regulatory filing. The cash outgo is Rs 5 crore, it said. Adani Enterprises Ltd in the filing said, quote, “In continuation to our earlier intimation dated December 15, 2023, we would like to inform that AMG Media Networks Ltd, a wholly-owned subsidiary of the company has increased its stake in IANS India Private Limited, by subscribing to fresh shares issued by IANS,” unquote.

Moving on. The broking firm Jefferies has raised target price on Newgen Software to Rs 1,070 from Rs 870. However, it has kept the rating unchanged to “Buy” on the stock of the company as the brokerage house believes the growth momentum to sustain. The brokerage house has also raised the earnings per share estimate to 5% for FY 24 to FY 26 as it sees higher margin estimates and lower tax rates from SEZ benefitting the company. Further, it expects the company to deliver 26% earnings per share on a compounded annual growth rate over FY 25 – FY26 on the back of the strong growth outlook and visibility. Strong growth and consistent execution have quadrupled the stock over the last year.

In some more market news, shares of HDFC Bank experienced a notable decline, reaching their lowest level since December 1, in the wake of the company’s third-quarter results. The stock plunged by nearly 7% in early trade on the BSE, opening at Rs 1,562.55, down from the previous close of ₹1,678.95, and further dropping to Rs 1,553. In Q3 FY24, HDFC Bank showcased a positive financial performance on a standalone basis. The Net Interest Income saw a 4% increase, reaching Rs 28,471.3 crore, while the net profit rose by 2.48% to Rs 16,372.5 crore compared to the previous quarter.

Over to industry. Cognizant announced its collaboration with Microsoft on the launch of the Innovation Assistant, a generative AI-powered tool built on Microsoft Azure OpenAI Service, which, it said, will augment Cognizant’s internal innovation program, Bluebolt. The Innovation Assistant is a tool designed to assimilate enterprise knowledge and enable greater creativity and innovation among teams of Cognizant employees working to solve client challenges across industries. The Innovation Assistant is integral to Cognizant’s Bluebolt grassroots innovation movement, which provides a framework for Cognizant employees anywhere and at any level, to contribute to the innovation process from ideation to implementation. Harnessing the power of generative AI for Bluebolt will help Cognizant employees develop a unique combination of virtual guidance and real-world support.

In other news, L&T Construction said that its Buildings & Factories business has bagged a significant order in India and Oman. The Residential Business of B&F, it said, has secured a significant repeat order from Government Planning & Development Authority, Maharashtra to construct EWS Housing, 14 towers and related infrastructure works in Navi Mumbai. In a regulatory filing it said, quote, “The scope of works includes design & construction of civil structures in all aspects including finishes, MEP, and related external development works. The project is to be executed within 42 months,” unquote. Further the business through the L&T Oman entity has been awarded the contract for a mixed-use development project in Muscat by a reputed private client.

Lastly, the share market. The benchmark equity indices closed in the negative territory. The NSE Nifty 50 closed 460.35 points or 2.09% lower to settle at 21,571.95, while the BSE Sensex lost 1,628 points or 2.23% to settle at 71,500.76. The broader indices closed in the red, with losses led by largecap and midcap stocks. Bank Nifty index closed lower by 2,060.65 points or 4.28% to settle at 47,151.55. Biggest losers on the Nifty were HDFC Bank, Tata Steel, Kotak Mahindra Bank, Axis Bank and Hindalco Industries, while gainers were HCL Technologies, SBI Life Insurance, Infosys, LTIMindtree and TCS.