Business News at 05:30 pm on 9th January, 2024

“Let’s begin…India Inc is all set to release its third quarter earnings starting this week, with majors like TCS and Infosys scheduled to report their quarter numbers on Thursday (January 11) and HCL and Wipro on Friday (January 12). According to experts and analysts, the December quarter earnings of Indian corporates are unlikely to throw a negative surprise even as there could be some sequential moderation in some sectors due to high base and sectoral headwinds. Per Nuvama Wealth Management, Nifty earnings may grow 10 per cent year-on-year (YoY) in Q3FY24 and are likely to moderate further in Q4FY24. Further, another report by ICRA said that credit metric of India Inc is expected to show slight sequential improvement in Q3FY24.
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“Next up….After the spectacular rally in the US stock market in 2023, investors were expecting the S&P 500 to continue rising and reach its first all-time high in almost two years. However, 2024 has started on a much more cautious note for investors as the market seems to catch its breath before its next move. A slow start makes sense as many were caught on the wrong side in 2023, as they predicted gloom and doom but the S&P 500 jumped more than 24% despite bank collapses, recession fears and the highest borrowing costs in decades. The Federal Reserve’s decision to raise interest rates to curb inflation has led to increased market focus on risks beyond monetary policy.
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“Let’s talk market…Jyoti CNC Automation is all set to open its initial public offering for subscription on January 09 at a price band of Rs315-331 per share. In the grey market, the shares are trading at a premium of Rs 85. The grey market is an unofficial market where shares trade before the allotment and listing. The issue worth Rs1,000 crore is a completely fresh issue, which will close on January 11, in which investors can bid for a minimum of 45 shares in a single lot. For qualified institutional investors, around 75% of the offer has been reserved. While 15% for high net-worth individuals and 10% for the retail investors. They’ll be issued at a discount of Rs15 each.
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“Additionally…JSW Steel Ltd on Tuesday announced that its consolidated crude steel production for the third quarter of FY24 stood at 6.87 million tonnes, up 8 per cent QoQ and 12 per cent YoY. In a regulatory filing, the company said that the capacity utilisation at Indian operations level stood at 94 per cent for Q3FY 24. JSW Steel USA – Ohio, meanwhile, reported better volumes due to improved demand on QoQ as well as YoY basis. In Indian operations, crude steel production increased to 6.63 million tonnes in the third quarter of FY24 as against 6.20 million tonnes during the second quarter of FY24, posting a 7 per cent increase sequentially and 9 per cent rise on-year basis.
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“In other news…Larsen & Toubro Construction on Tuesday announced that its Buildings & Factories Business has secured a significant order from HITES (A Mini Ratna PSU) under the Ministry of Health and Family Welfare. “he Health Business Unit of the HRC SBG has secured an order to construct a new AIIMS at Rewari (Haryana) on a Design, Engineering, Procurement and Construction basis in Q3 FY24, it said in a regulatory filing. The facilities, it added, will include a 720-bed teaching hospital, a 30-bed AYUSH hospital, an 100 students’ annual intake medical college, nursing college, 500-seat auditorium, hostel & residential facilities to be executed within stringent timelines. The total built up area is 1.5 million sqft.
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“Moreover…Bajaj Auto’s board has given the green light to a massive buyback Rs 4,000 crore share at a substantial price of Rs 10,000 per share, marking a 43% premium over the last closing price of January 8. The company plans to repurchase 40 lakh shares via the tender route, equivalent to 1.41 percent of Bajaj Auto’s outstanding shares. Notably, the promoters, holding a 54.94 percent stake in the company, will actively participate in this buyback initiative. To facilitate the process, a Buyback Committee has been constituted by the Board, with the authority to undertake all necessary actions related to the buyback at its discretion. This marks Bajaj Auto’s second share buyback in as many years.
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Lastly…Let’s take a look at how the stocks performed today. The benchmark equity indices closed in the positive territory. The NSE Nifty 50 closed 31.85 points or 0.15% higher to settle at 21,544.85, while the BSE Sensex gained 30.99 points or 0.04% to 71,386.21. The broader indices closed in the green, with gain led by Smallcap stocks. Bank Nifty index closed lower by 207.60 points or 0.44% to settle at 47,242.65. Among sectors, banking stocks saw selling while realty and auto stocks were in demand. The market breadth was broadly in favour of gainers. About 2,243 shares advanced, 1,602 declined and 99 remained unchanged.