Let’s begin with the markets – Bears gripped Dalal Street on the first day of the week as benchmark indices ended in red amid weak global cues. The S&P BSE Sensex settled at 56,789, down 638 points or 1.11 per cent. The NSE Nifty 50, too, closed 207 points, or 1.21 per cent, lower at 16,887. Adani Enterprises was the biggest Nifty dragger as it dropped 9 per cent. This was followed by selling in Eicher Motors, Maruti Suzuki, Adani Ports, Hindalco, Tata Consumer Products, HUL, Kotak Bank, ITC, HDFC Life, Britannia, SBI, and Tata Motors. On the upside, ONGC, Cipla, Coal India, Dr Reddy’s Labs, BPCL, Divis Labs, and Bharti Airtel helped trim losses.
Moving on – Data from the Reserve Bank of India on sectoral deployment of bank credit in August 2022 collected from 40 scheduled commercial banks showed a 19.6 per cent credit growth in the micro and small enterprise sector from a paltry 1.2 per cent in August 2021. Credit deployed during August 2022 stood at Rs 14.49 lakh crore, up from Rs 12.12 lakh crore in August 2021 and Rs 11.98 lakh crore in August 2020. The total bank credit to MSEs in July this year grew 19.2 per cent to Rs 14.41 lakh crore vis-a-vis Rs 12.09 lakh crore a year ago. Importantly, the year-on-year rate of credit growth has declined from 27 per cent in May and 23.7 per cent in June, indicating that majority of the potential beneficiaries under post-Covid credit schemes by the government such as the Emergency Credit Line Guarantee Scheme have already tapped into them.
In another development – After disrupting the Indian telecom market with a low-cost JioPhone, Jio is now planning to do the same in the laptop market with a 4G SIM-embedded laptop dubbed the JioBook. According to a report, Jio has partnered with Qualcomm and Microsoft for the JioBook. The computer will be powered by Qualcomm’s Arm-based computing chips and run Windows OS. While the report does not speak about the device’s specs, it states that JioBook will first come to enterprise customers such as schools and government institutes starting this month, with a consumer launch expected to happen in the next three months. The previous rumours and leaks have hinted that the upcoming laptop could be powered by a MediaTek MT8788 chipset or a Snapdragon 665 chipset.
Meanwhile – Electronics Mart India Limited’s Rs 500 crore-IPO will open for public subscription on 4 October and will conclude on 7 October. The price band for the issue has been fixed at Rs 56-59 per share. The consumer durables retail chain’s IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, with no offer for sale component. The company intends to utilise the net proceeds from the initial share sale to fund its capital expenditure, and support incremental working capital requirements. The proceeds will also go towards paying debt, and for general corporate purposes. Ahead of the IPO opening, Electronics Mart India shares were commanding a grey market premium of Rs 33 per share.
In other developments – India’s manufacturing activity in September expanded for the fifteenth month in a row, but slowed down the acceleration from the previous month. The S&P Global India Manufacturing Purchasing Managers’ Index posted at 55.1 for September, down marginally from August’s 56.2. Amid global headwinds, policy shocks, and recession fears, the manufacturing sector remains in good health. The expansion in the industry is attributed to new business growth, expanded operating capacities, and demand resilience. Leading indicators suggest that output looks set to expand further at least in the short-term as firms seek to fulfil sales contracts and replenish stocks. An increased demand from both domestic and international clients resulted in a buoyant output, increased international sales, and a substantial uptick in new orders. All of this, in confluence, aided the current sequence of expansion to stretch across a 15 month period now.
Lastly – Kia India has revealed its sales figures for the month of September 2022. The Indian subsidiary of this South Korean carmaker sold 25,857 cars in September 2022, registering a 79 per cent YOY growth. In the same period last year, the company’s sales stood at 14,441 units. The Kia Seltos remained the company’s best-selling car while the Sonet bagged the second spot. When compared on an MoM basis, Kia’s sales increased by 15.8 per cent as in August this year, it sold 22,322 units. It’s worth mentioning that Kia India surpassed its total sales of CY21 in just nine months of 2022 with 1,92,024 units sold yet. Last year, it recorded 1,81,583 unit sales. Kia also retained its position in the top five best-selling carmakers list.