In today’s podcast, we talk about the share market’s performance, SEBI unusal move of returning IPO papers of four companies, Delhi government’s proposal of law to regulate coaching centres, among other things.
Business News at 05:30 pm on 31st July, 2024
[Disclaimer: This transcript is auto-generated]
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Let’s begin – The benchmark equity indices ended Wednesday’s trading session in the positive territory. The NSE Nifty 50 gained 93.85 points or 0.38% to settle at 24,951.15, while the BSE Sensex jumped 285.95 points or 0.35% to 81,741.35. The broader indices ended in positive territory, with gain led by Large-cap and Mid-cap stocks. Bank Nifty index ended higher by 54.10 points or 0.11% to settle at 51,553.40. Metal and Pharma stocks outperformed among the other sectoral indices while PSU Banks and Realty stocks shed.
Up next – Exchanges and brokers focused on retail traders are expected to be most affected by the Securities and Exchange Board of India’s proposed changes to Futures & Options trading rules, according to equity analysts Jayant Kharote and Prakhar Sharma at Jefferies. SEBI announced seven key amendments to the derivatives trading framework on Tuesday, aimed at bolstering investor protection and market stability. Analysts believe that clearing members like Nuvama, which cater to institutional players such as high-frequency trading firms and foreign portfolio investors, might experience minimal direct impact. However, there could be secondary effects, such as the removal of the Bankex weekly contract on the BSE, which could reduce earnings per share by 7-9% over FY25-27.
Moving on – Market regulator SEBI returned the IPO documents of four companies citing non-compliance. SEBI’s Regulation 7(1)(a) of SEBI ICDR Regulations, 2018 says that the issuer needs to ask for approval for listing from one or more than one stock exchange. The companies that faced the rejection are Vishal Mega Mart, Avanse Financial Services, Sai Life Sciences and BMW Ventures. In most cases, SEBI would issue observation letter marking changes in the draft papers and would seek some extra information and documentation, which the lead book-runner would then provide. If SEBI finds the resubmitted papers satisfactory it will then approve the IPO. But, with these companies, the documents were returned, showing that SEBI takes a stringent view when it comes to rules and regulations.
In another development – The revenue of domestic edible palm oil refiners is predicted to increase by around 10 per cent this fiscal year due to consistent demand and greater realisations, as per a report by CRISIL. It further highlights that the operating profitability is expected to increase by 40-50 basis points to around 3.5 per cent due to favourable prices and continued duty-free imports. Over the medium term, credit risk profiles of palm oil refiners’ will remain stable due to strong balance sheets and the absence of significant debt-funded capital expenditure. As per the report, palm oil dominates edible oil consumption in India with 38-40 per cent share in volume as it is used largely in the food processing and hotels, restaurants and catering segments.
Meanwhile – Adani group-owned Ambuja Cements on Wednesday reported its fiscal first quarter earnings with a profit decline of 30.5 per cent on-year at Rs 789.63 crore, in comparison to Rs 1135.46 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 8311.48 crore, down 4.6 per cent as against Rs 8,712.90 crore during the same period of previous financial year. Ambuja Cements said in a statement that higher volume along with improved operational parameters resulted in growth in all business parameters. The company’s net worth increased by Rs 8620 crore during the quarter and stands at Rs 59,465 crore, and the company remains debt free and continues to maintain Crisil AAA (stable) / Crisil A1+ ratings.
In other news – The Director of Ladakh India Meteorological Department Sonam Lotus has expressed concern over the sudden surge in temperature in the region. According to reports, Leh recorded a maximum temperature of 30.5 degrees Celsius on July 30, marking a notable increase in temperature that has raised alarm bells. Lotus highlighted that while high temperatures are typical during Ladakh’s hottest months of July and August, the recent sharp increase in temperature is a significant concern. Glaciers, which are crucial for the region’s water supply, are melting rapidly due to the intense heat, posing a serious threat to the water resources. The IMD Ladakh Director also issued a warning for tourists, alerting them to the potential for flash floods in the coming days.
Lastly – Delhi minister Atishi on Wednesday announced that the AAP government will introduce a law to regulate coaching centres in the capital following the tragic death of three civil service aspirants who drowned in the basement of a coaching centre in Old Rajinder Nagar. Atishi, accompanied by Delhi Mayor Shelly Oberoi, claimed that 30 coaching centre basements have been sealed and 200 institutes have been served notices, with the government taking swift action in the wake of the incident at Rau’s IAS Study Circle coaching institute. The Delhi government will form a committee comprising officials and students to draft regulations for coaching centers, said Atishi.
