Business News at 10:00 am on 12th January, 2024

Let’s begin with the markets – The benchmark equity indices closed in the positive territory. The NSE Nifty 50 closed 28.50 points or 0.13% higher to settle at 21,647.20, while the BSE Sensex gained 63.47 points or 0.09% to 71,721.18. The broader indices closed in the green, with gains led by Nifty Next 50 and small cap stocks. Bank Nifty index closed higher by 77.50 points or 0.16% to settle at 47,438.35. Earlier in the afternoon, Hero MotoCorp, Bajaj Auto, Eicher Motors, IndusInd Bank, and Axis Bank were the top gainers in the Nifty 50.

Next up – IT major Infosys is all set to report its earnings for FY24 Q3 today. Infosys is likely to post weak numbers with revenue growth, according to estimates, expected to be 1.8% lower in constant currency terms, with ~20 bps cross-currency headwinds. Per the analysts, Infosys’ December quarter performance will be marred by lower pass-through revenues, higher-than-usual furloughs, and weak discretionary spending. The company is also expected to post a decline in operating margin due to salary hikes that the company rolled out in November last year. Brokerage firms said that Infosys will post Q3 profit in the range of Rs 5,960-Rs 6,142 crore, reporting a YoY fall of around 7%. Revenue growth is expected to be muted at around Rs 38,660 crore.

Moving on – In their latest report on India’s Midcap stocks, Jefferies unveils a positive outlook for Q3FY24, anticipating healthy sales and profit after tax growth of +16% and +24% YoY, respectively, for their coverage. Jefferies predicts that the topline growth in Q3FY24 will be predominantly volume-driven, with a particular emphasis on companies in the Cables & Wires sector. The report notes that there have been no significant pricing actions observed in most product segments. This stability is attributed to the softening of input costs year-on-year, indicating a cautious approach by companies in adjusting their pricing strategies. Companies in the Electronic Manufacturing Services sector, such as AMBER and DIXON, are expected to benefit from Production-Linked Incentives and new customer additions.

In another development – Delhi maintained its status as the most polluted city in India out of a list of 92 cities in the country in the year 2023, according to a five-year National Clean Air Programme report prepared by Climate Trends and Respirer Living Sciences, using data from the Continuous Ambient Air Quality Monitoring Stations network. The report pointed out that despite a 5.9% decrease in PM 2.5 levels over the last five years, Delhi falls short of NCAP targets. Union government data revealed that only 28% of the Rs 38.21 crore allocated to Delhi under NCAP has been utilised. The Delhi government did not respond to queries about the expenditure.

Meanwhile – Tata Consultancy Services is all set to report its third quarter earnings for FY24 today, on January 11. According to brokerage firms, TCS is likely to post a tepid growth in revenue and profit after tax on account of the prevailing weakness in discretionary spending in key markets in the West. TCS will report a modest expansion in earnings before interest and taxes margin. According to brokerage firms, TCS will post Q3 profit in the range of Rs 11,317- Rs 11,737 crore, growing by around 6.06% on-year. Revenue for the quarter is expected to grow by 2.46% YoY to around Rs 59,662 crore. IT spending in key verticals BFSI, Retail, Hi-tech and Telecom still remains a challenge for TCS.

In other news – Six countries have jointly claimed the top position on the 2024 Henley Passport Index, offering their citizens unparalleled global mobility with visa-free access to 194 destinations out of 227. The remarkable feat sees France, Germany, Italy, Spain, Japan and Singapore on the top rank. The last two nations, consistent leaders in passport strength for the past five years, continue to assert their dominance, maintaining their first-place ranking. India, while not in the top tier, holds a respectable 80th position on the index, providing its citizens with visa-free access to 62 destinations, including popular tourist hotspots like Thailand, Indonesia, Mauritius, Sri Lanka, and the Maldives. This year’s ranking marks a three-position jump for India from last year.

Lastly, some auto news – BMW Group recorded its highest ever annual sales in India in 2023, this includes all three brands, i.e, BMW, MINI and BMW Motorrad. The luxury automaker delivered 14,172 cars across India in 2023 which includes 13,303 units sold under the BMW brand and 869 units from MINI. In the two-wheeler division, BMW sold 8,768 motorcycles retailed under BMW Motorrad. Further, December 2023 also witnessed the highest-ever monthly sales for BMW and MINI. BMW registered an annual growth of 18% in 2023 in the car segment. A majority of it was attributed to the flagship models including the 7 Series sedan, i7, X7, and iX which accounted for a massive 88% growth from the previous year.