Business News at 05:30 pm on 5th December 2023

Let’s begin…India’s services activity growth declined to a one-year low with the sector’s Purchasing Managers’ Index (PMI) declining to 56.9 in November 2023 from 58.4 in the previous month, according to the data released by S&P Global on Tuesday. This is below the market forecasts of 58, pointing to the softest growth in the sector since November last year, amid a slowdown in rates of growth for both new orders and output, with new export orders rising the least in five months. In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction. According to S&P Global’s survey data, the increase in Indian services activity extended into November, with cooling price pressures and demand resilience inducing sales growth.

Next up…The Black Friday sales saw an order surge of 36.37 per cent by D2C brands in comparison to the weekend prior, said GoKwik. According to the company data, the GMV also saw a 57.34 per cent increase compared to the weekend prior to the black friday sale weekend. Last year too, it added, brands in the GoKwik network had seen a GMV uplift of up to 60 per cent – a trend that has been continuing this year as well. In terms of the mode of payment, while COD orders grew by 39.93 per cent, RTO reduced by almost 10 per cent and this trend was seen across all categories including beauty and personal care, fashion, electronics, home decor, and healthcare, as they all saw a dip in RTO rate.

Additionally…Aditya Birla Sun Life Insurance Company Limited (ABSLI), the life insurance subsidiary of Aditya Birla Capital, has announced the launch of ‘ABSLI Salaried Term Plan’ – a customised and budget-friendly protection solution for salaried professionals. It is a Non-Linked, Non-Participating, Life Individual, Pure Risk, Premium Plan, that offers salaried professionals the freedom to design plans, as per their individual protection needs. ABSLI Salaried Term Plan offers a range of comprehensive life cover options to suit the diverse needs of policyholders. Apart from the conventional Life Cover option, policyholder can choose a Life Cover with Return of Premium (ROP) option that allows them to receive the total premiums paid on survival. (Excluding GST, Loadings, and other charges).

In other news…Indian organised liquor industry revenue is growing at 12-13 per cent this fiscal to ~Rs 4.45 lakh crore, after a 15-16 per cent growth last year, said a report by CRISIL Ratings. The growth is driven by strong demand and premiumisation. A study of 33 liquor companies, accounting for ~15 per cent of the organised liquor segment revenues, by CRISIL Ratings said that blended operating profitability of distillers and brewers is expected to increase 100-150 bps with softening of input costs. Meanwhile, credit profiles will remain strong with leaner balance sheets on back of significant deleveraging in the last three fiscals. The liquor industry can be broadly segmented into distillers and brewers.

On to some exciting news….Alpex Solar, India’s leading manufacturer of solar systems, has submitted its Draft Red Herring Prospectus (DRHP) with NSE Emerge. The offering comprises a fresh issuance of 64,80,000 equity shares with a face value of Rs 10 apiece. The company intends to utilise Rs 19.55 crore of the net proceeds from the IPO to upgrade and expand its existing solar module manufacturing facility, increasing its capacity by 750 MW; Rs. 12.94 crore to set up a new manufacturing unit for its solar module’s aluminum frame; Rs 20.49 crore to meet its working capital requirements; and the remaining capital to be used for general corporate expenses.

Meanwhile….The Railway Ministry has taken proactive measures in response to the impending severe cyclonic storm ‘Michaung.’ In order to address the challenges posed by the powerful storm, the ministry has established an emergency control cell in Chennai and a dedicated war room at Rail Bhawan in New Delhi. A statement released by the Railway Ministry on Monday (December 4) informed that the comprehensive readiness of the Indian Railways to ensure the smooth and safe operation of railways in areas expected to be impacted by Cyclone ‘Michaung.’ As part of their disaster management preparedness, the ministry has instituted an emergency control cell at the divisional and headquarters levels. At the board level, a war room has been activated to monitor all locations continuously.

Lastly….let’s see how the share market performed today. The benchmark equity indices ended Tuesday’s trading session in the positive territory. The NSE Nifty 50 gained 168.50 points or 0.81% to settle at 20,855.10, while the BSE Sensex jumped 431.02 points or 0.63% to 69,296.14. The broader indices ended in positive territory, with gains led by Largecap and Midcap stocks. Bank Nifty index rallied 580.85 points or 1.25% to settle at 47,012.25. Banking and Consumer Durables stocks outperformed among the other sectoral indices while Media, Realty, and IT stocks shed.