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

Let’s begin with the major update, State-run natural gas company GAIL (India) Ltd plans to commission its first green hydrogen project in central India in April, three company sources said. The 10-megawatt proton exchange membrane electrolyser for the green-hydrogen producing unit at the Vijaipur complex in Madhya Pradesh state has been imported from Canada, they added. The unit is expected to produce about 4.3 metric tons of hydrogen per day, with a purity of about 99.999% by volume, and would use renewable power. India aims to reach 5 million tons of annual green hydrogen production capacity by 2030. The company’s communication office did not respond to a Reuters request for comment.
Moving on, Holi is expected to stimulate economic activities, particularly benefiting local businesses, the MSME sector, and the broader economy and prove to be a boon for traders and retailers, said a report by Angle One. The surge in consumer spending became evident across various segments, especially in the sales of traditional Indian goods such as herbal gulals, water guns, balloons, chandan (sandalwood powder), and dress materials. The range of goods experiencing a spike in sales during Holi is not limited to traditional items. There’s a remarkable demand for sweets, dry fruits, gift items, textiles, flowers, FMCG products, consumer durables, and pooja materials. This diversified demand spectrum promises a robust period ahead for the trade industry, said Confederation of All India Traders (CAIT).
In other news, After continuous growth in startup funding in the previous three quarters of 2023, the Indian startup ecosystem saw a slowdown in the first quarter of 2024. According to Tracxn’s Geo Quarterly India Tech Report – Q1 2024 (till March 15), $1.6 billion was invested in the first quarter across 222 rounds, down by 27 per cent from $2.2 billion in 291 rounds in Q4 2023. In Q3 last year, $1.9 billion was invested in 269 rounds and $1.6 billion was invested across 360 rounds in Q2. The Q1 drop was 51 per cent from $3.2 billion invested in startups in Q1 2023 while funding rounds also declined by 48 per cent from 432 in Q1 last year.
Meanwhile, Bharti Hexacom sets the IPO price band at Rs 542 to 570 per equity share. The IPO of Bharti Airtel’s subsidiary is set to open its subscription on April 3 and will end on April 5. The IPO is entirely an offer for the sale of 7.5 crore shares valued at Rs 4,275 crore, which will be offloaded by Telecommunications Consultants India. Bharti Hexacom is in the business of providing fixed-line telephone and broadband services in Rajasthan and North East – Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. In the grey market, the company’s shares were changing hands at a premium of Rs 35 to the issue price. The grey market is an unofficial market where shares are traded in an illegal way.
Up next, The broader market has been seeing substantial selling pressure in the last one month starting February 19. Most market observers believe this is primarily on the back of the SEBI Chief’s comment highlighting, there are pockets of froth in the market. Since February 19, over 80% of stocks in the BSE Small Cap Index have seen negative returns, contrasting with a nearly one percent gain in the Nifty during the same period. The BSE Small Cap Index witnessed a significant decline of 7% over the past month, indicating a notable downturn in stocks with smaller market cap. The BSE Midcap Index experienced a relatively lesser decline of 2.24%, suggesting a more stable performance among mid-sized companies listed on the Bombay Stock Exchange.
Moving ahead, Giving a major boost to the domestic aviation sector, Thiruvananthapuram International Airport has announced its summer schedule, boasting a notable 17% increase in weekly flight operations compared to the winter schedule. The bolstered schedule will be effected from March 31 to October 24, 2024, which would reflect the airport’s commitment to enhancing air travel connectivity. With the rise in weekly Air Traffic Movements (ATMs), the airport is poised to accommodate heightened travel demands. It is noteworthy that the new destinations will include Hanimaadhoo in the Maldives, alongside additional services to Bengaluru, Delhi, and Hyderabad in the domestic sector, and Abu Dhabi, Dammam, Kuwait, and Kuala Lumpur in international destinations, as mentioned in the airport’s announcement.
Lastly, let’s take a look how the stocks performed today. The benchmark equity indices ended Tuesday’s trading session in the negative territory. The NSE Nifty 50 plunges 92.05 points or 0.42% to settle at 22,004.70, while the BSE Sensex dropped 361.64 points or 0.50% to 72,470.30. The broader indices ended in mixed territory, with fall led by Large-cap and Small-cap stocks. Bank Nifty index ended lower by 263.55 points or 0.56% to settle at 46,600.20. Realty and Metal stocks outperformed among the other sectoral indices while Media and IT stocks shed. Bajaj Finance, ONGC, and Adani Ports were the top gainers in the Nifty 50. While Power Grid, Wipro, Divi’s Laboratories, and Bharti Airtel were the major losers in the Nifty 50 on March 26.