Business News at 05:30 pm on 6th June, 2024

Let’s begin…With the RBI’s Monetary Policy Committee all set to announce its decision on interest rates on June 7, economists and experts said it is likely to maintain the status quo on repo rate at 6.50 per cent. Mandar Pitale, Head- Treasury, SBM Bank India, said, quote, ‘At the backdrop of the fragile outlook for the global economy amidst stalling in the descent of inflation and thus reigniting risks to global financial stability, MPC is expected to hold policy rates for a foreseeable future going ahead with a likelihood of starting rate easing cycle in the last quarter of current calendar year. Favourable monsoon impact on the food inflation trajectory will have a major influence on the commencement of the easing cycle, end quote.

Next up, PNB MetLife India Insurance on Thursday announced it has appointed Sameer Bansal as MD and CEO, effective July 1, 2024, subject to the necessary regulatory approvals.Sameer Bansal has over 25 years of experience in financial services, including extensive and successful experience in leading Distribution through Bancassurance, Agency, Digital, Employee Benefits and Direct marketing business models. He joined PNB MetLife in 2007 and is currently Chief Distribution Officer and a member of the leadership team. Sameer Bansal will lead the business growth of a key market for MetLife with 149 branches in over 18,600 locations through bank partnerships with one of the largest bancassurance networks in India.

In other news, Global brokerage firm CLSA, in its latest strategy note, stated that it anticipates Modi 3.0 becoming a reality with backing from allies — the TDP and JD(U). The brokerage anticipates that shares of Larsen and Toubro, IRB Infrastructure Developers, NCC, and J Kumar Infraprojects will be key beneficiaries. CLSA has noted that a dividend from the Reserve Bank of India will secure funding for any government social expenditure. The central bank on May 22 approved a Rs 2.11 lakh crore dividend payout to the central government for 2023-24, more than double the Rs 87,416 crore paid for the 2022-23 financial year.

Moving on, Nvidia has surpassed Apple to become the second most valuable company globally. It achieved a market capitalisation of USD 3.01 trillion on Wednesday. The surge in Nvidia’s market value is largely attributed to its leadership in the AI space, fuelled by the success of its flagship H100 chip. Nvidia first hit the USD 1 trillion mark in May 2023 and by February 2024 it had reached USD 2 trillion, surpassing Amazon and Alphabet. In its latest earnings call, Nvidia reported a profit of USD 14 billion, largely driven by robust AI chip sales. The company now trails only Microsoft, which has a market cap of USD 3.15 trillion. Nvidia’s stock is trading at over USD 1,224 per share, with a stock split planned for June 7.

In another development, In a sign of ongoing recovery and resilience, India’s domestic air passenger traffic for May 2024 surged to approximately 138.9 lakh, marking a 5.2 per cent increase as compared to April 2024, according to ICRA’s latest report. This growth trend was also reflected in the year-on-year comparison, with a notable 5.1 per cent uptick over May 2023. Even more impressively, the figure soared by approximately 14.0 per cent compared to pre-Covid levels, showcasing a robust rebound in air travel demand. Per the report, the growth trajectory extended into the fiscal year 2024 (April-March), with domestic air passenger traffic reaching approximately 154 million, representing a YoY growth of around 13 per cent.

Up next, Indigo intends to incorporate wide-body aircraft into its fleet by 2027. During a session at the CAPA India Aviation Summit 2024, CEO Pieter Elbers disclosed the airline is exploring diverse financing options for fleet expansion. In April, Indigo confirmed an order for thirty A350-900 aircraft and revealed intentions to procure an additional 70 of the same model. As of now, Indigo has over 360 planes excluding the two Boeing 777 aircraft leased from Turkish Airlines. While the wide-body planes are expected to be added to Indigo’s fleet in 2027, the A321 XLR (Extra Long Range) aircraft will be added next year.The airline will also introduce business class seats, enhancing the in-flight experience and catering to a broader range of travelers.

Lastly, The benchmark equity indices ended Thursday’s trading session in the positive territory. The NSE Nifty 50 gained 201.05 points or 0.89% to settle at 22,821.40, while the BSE Sensex jumped 692.27 points or 0.93% to 75,074.51. The broader indices ended in positive territory, with gain led by Large-cap and Midcap stocks. Bank Nifty index ended higher by 237.30 points or 0.48% to settle at 49,291.90. Media and Realty stocks outperformed among the other sectoral indices while Pharma and FMCG stocks shed. Meanwhile, ITC shareholders have approved the proposal to demerge the company’s hotels business. The share of ITC gained 1.38% to intra-day high of Rs 437.70 on NSE.