In this weekly round-up we talk about BSE and NSE slapping fines on Adani Green Energy, Goldman Sachs predicting 12% upside for Nifty, and food inflation among other news.
Weekly Business Roundup at 10:00 am on 26th November 2023.
[Disclaimer: This transcript is auto-generated]
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Leading exchanges BSE and the NSE this week imposed fines totalling Rs 11.22 lakh on Adani Green Energy for non-compliance with certain listing regulations. The two exchanges imposed fines of Rs 5.61 lakh each on the company. The company in a regulatory filing said, quote, “BSE Ltd and the National Stock Exchange of India Ltd have, vide their letter dated November 21, 2023, imposed a fine of Rs 5,61,680 each on the company,” unquote. As per the filing, the company wishes to also clarify that the company has already appointed two more independent directors effective September 7 and changed the composition of committees thereafter.
In a report this week, Goldman Sachs outlined an optimistic outlook for the Indian markets and expects the Nifty to reach 21,800 by the end of 2024, implying a 12% return in rupee terms. However, the brokerage suggests that returns are likely to be back-loaded due to the challenging global backdrop and political uncertainty leading up to the elections. Goldman Sachs forecasted corporate profits in India to grow by 15% in 2024 and an additional 14% in 2025, with the expected growth appearing to be broad-based across various sectors. The note highlights a preference for domestic sectors, including banks, autos, cement, industrials, and utilities. Goldman Sachs acknowledged potential external macroeconomic challenges such as prolonged high interest rates, persistent dollar strength, and heightened geopolitical uncertainty.
Over to banking. Finance Industry Development Council, a representative of non-banking financial companies, has asked the Reserve Bank of India to re-evaluate the sharp increase in risk weights on banks’ loans to the sector. It has also sought restoration of risk weights on NBFCs where majority of the lender’s loan book consists of MSME loans, vehicle loans and other categories of loans that have been excluded from the purview of the RBI circular. FIDC in a letter sent to RBI on Thursday said, quote, “While we understand the purpose of the bank to regulate credit flow to the consumer sector, this measure inadvertently, also has the potential to sharply reduce flow of credit to MSMEs, self-employed and other sectors,” unquote.
Next up, economy. The government is set to take a slew of measures to contain the stubborn retail food inflation, including through intervention in pulses markets, a senior official said on Thursday. Rohit Kumar Singh, secretary, department of consumer affairs, told FE, quote, “While the retail intervention in selling pulses is challenging, it is an effective way to curb the possibility of increase in prices,” unquote. Under the plan, the government would continue to sell chana through retail initiative – Bharat Dal – as well as offload surplus stocks of estimated 2.4 million tonne of the variety with the farmers cooperative Nafed. This is expected to keep wholesale prices from flaring up. The government is also selling onions at Rs 25/kg through more than 3000 outlets.
Next up, industry. Non-banking financial company L&T Finance on Thursday said it has signed a USD 125 million loan pact with the Asian Development Bank to support financing in rural and peri-urban areas in India, particularly for women borrowers. The funding comprises a loan of up to USD 125 million from ADB, and an agreement to syndicate an additional USD 125 million co-financing from other development partners, L&T Finance said in a statement. At least 40 percent of the proceeds is allocated for women borrowers, while the rest will support farmers, micro, small and medium-sized enterprises, and loans to purchase new two-wheelers, among others, it said.
Insurance behemoth Life Insurance Corporation has lined up 3-4 product launches in the coming months with a view to achieve double-digit growth in new business premium in the current financial year. LIC Chairman Siddhartha Mohanty told PTI in an interview, quote, “We are projecting double-digit growth over the last year. We are going to achieve that because a recent trend is showing uptick in individual retail business. In order to further reinforce our commitment, we are going to launch some new attractive products,” unquote. LIC is going to launch one product in the first week of December. Mohanty said it will provide assured returns and after maturity, the policyholder will get 10 per cent of the sum assured life long.
Lastly, some good news from the auto sector. Ducati recently won the 2023 World Superbike Championship and in celebrating this victory, the Italian two-wheeler company is offering the Monster at a discount price of Rs 10.99 lakh, ex-showroom. Ducati is offering this marked down deal till November 30th or till the stocks last. The original price of the Monster is Rs 12.99 lakh, ex-showroom. The Monster is available in two trims — Standard and SP. There’s no discount on the latter variant and it starts from Rs 15.99 lakh, ex-showroom. The Monster sports a 4.3-inch all-digital colour instrument cluster. It comes standard with Cornering ABS, Traction Control, Ducati Wheelie Control and Launch Control.
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