Business News at 05:30 pm on 26th February, 2024

Let’s begin…The Indian stock market reached to an all time high on Friday, with the Nifty surging to an all-time high of 22,297.50 points, and the BSE Sensex peaking at an impressive 73,427.60. The driving force behind this surge primarily emanated from the exceptional performance of financials and energy stocks. Although the benchmarks indices are trading lower today, Nifty down by 0.37% and BSE Sensex lower by 0.43% as of 11:12 am. The market experts express confidence in the resilience of domestic equities, even in the face of fading hopes for an early US rate cut. The market’s steadfastness is attributed to robust macroeconomic fundamentals and consistent domestic inflows. Analysts underscore the positive influence of quarterly results, stable earnings in the energy sector.

Next up…India reported a drop of 23 per cent in total deal volume while the total disclosed value dropped by 38 per cent since CY22, per the findings of PwC India report titled, “Deals at a glance”. However, despite a steady decline through the first three quarters, PwC report stated, deal activity stabilised towards the last quarter of the year, setting the stage for a promising 2024. Cumulatively, 1860 deals with a total disclosed deal value at $75 billion were completed in CY23. In CY23, merger and acquisition (M&A) deals totaled 793, registering a drop of 10 per cent compared to CY22, while the total disclosed deal value for M&A fell by 38 per cent. Domestic deals fell by 18 per cent.

Additionally…PM Modi laid the foundation stone for the redevelopment of 553 railway stations under the Amrit Bharat scheme today, focusing on enhancing facilities through rooftop plazas and city centers at these stations. The event, which will was conducted virtually across more than 2,000 railway stations and function sites, also witnessed the inauguration of nearly 1,500 road overbridges and underbridges in various states. The prime minister also inaugurated the redeveloped Gomti Nagar station in UP at a cost of approximately Rs 385 crores. The redesigned station addresses future passenger footfall with segregated arrival and departure facilities, central air-conditioning and ample parking space in upper and lower basements. The Amrit Bharat stations, spanning 27 states and UTs, are set for redevelopment at cost exceeding Rs 19,000 crores.

Let’s talk market…In a regulatory filing to the stock exchanges on Friday, Kotak Mahindra Bank confirmed that Zurich Insurance Company is set to acquire a 70% stake in Kotak General Insurance Company Limited for Rs 5,560 crore in a single tranche. This development follows Zurich Insurance’s prior announcement of an initial acquisition of 51%, with the remaining 19% planned over the next three years. Kotak Mahindra Bank emphasized that the other terms of the transaction remain unchanged. The successful completion of the proposed 70% acquisition is contingent upon meeting customary conditions precedent, including regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI), according to Kotak Mahindra Bank.

In other news…SVJN on Monday announced that its wholly owned subsidiary, SJVN Green Energy Limited has signed the Power Usage Agreement (PUA) with Jammu & Kashmir Power Corporation Limited (JKPCL) at Jammu for 300 MW solar power capacity. The company said that this 300 MW power shall be supplied to JKPCL from the under construction 1,000 MW Bikaner Solar project which is being developed under the CPSU Scheme of IREDA at a cost of Rs 5,491 crore. Quote, “The project is being developed under the Domestic Content Requirement (DCR) mode and is slated for commissioning by July, 2024. Power from this project is for Govt use either directly or through Discom,unquote,” it said in a regulatory filing.

Moreover…L&T Construction on Monday said that its Railways Strategic Business Group has secured a significant order to construct the Jakarta Mass Rapid Transit (MRT) Project (Phase 2A) (Contract Package CP205) for MRT Jakarta through L&T’s long-term Japanese partner, Sojitz Corporation. This contract, it added, marks the first EPC Railway Systems Order for L&T in the ASEAN region. The Jakarta MRT Phase 2A is an extension of the existing Jakarta MRT Line for the section between Bundaran HI up to and including Kota with a total length of approx. 12.5 km and 7 underground stations. This package, L&T Construction said, involves procurement and delivery of multiple systems across various domains on a design and build basis including overall system integration.

Lastly…Let’s take a look how the stocks performed today. The benchmark equity indices ended Monday’s trading session in the negative territory. The NSE Nifty 50 dropped 90.65 points or 0.44% to settle at 22,122.05, while the BSE Sensex plunged 352.66 points or 0.48% to 72,790.14. The broader indices ended in negative territory, with fall led by mid-cap and large-cap stocks. Bank Nifty index ended lower by 235.25 points or 0.50% to settle at 46,576.50. Energy and Auto stocks outperformed among the other sectoral indices while IT and Metal stocks shed. Asian Paints, Hindalco Industries, Divis Labs, Apollo Hospitals, and Tata Steel are top losers on NSE Nifty 50 index. L&T, Adani Enterprises, Adani Ports and SEZ, and Eicher Motors on NSE Nifty 50 index.