Business News at 10:00 am on 3rd January, 2024

Let’s begin – The benchmark equity indices ended Tuesday’s trading session in the negative territory. The NSE Nifty 50 dipped or 0.35% to settle at 21,660.25, while the BSE Sensex slumped 379.46 points or 0.53% to 71,892.48. The broader indices ended in red, with fall led by Largecap and Smallcap stocks. Bank Nifty index ended lower by 472.65 points or 0.98% to settle at 47,761.65. Pharma and Engery stocks outperformed where Auto & Realty stock shed. Divis Labs, Coal India, Sun Pharma, Cipla, and Dr Reddy’s Lab were the top gainers on the NSE Nifty 50, while the laggards includes Ultra Tech Cement, Eicher Motors, Mahindra & Mahindra, and LTI Mindtree. The Indian Volatility Index closed down by 0.71 %.
Up next – In a recent report, Jefferies says a notable decline in cement prices across all regions in December 2023, registering a range between 1-2 per cent. This pricing adjustment sets the stage for a meticulous examination of the sector’s overall performance. According to the report, the anticipated growth for the cement sector in the third quarter of the fiscal year 2023-24 is pegged at 3 per cent Quarter-over-Quarter, aligning seamlessly with initial expectations. This steady growth projection underscores a measured and consistent trajectory for the industry. Highlighting regional variations in growth, Jefferies has identified the Southern region to experience the highest growth in Q3, while other regions are expected to witness growth ranging from flat to 3 percent.
Moving on – The commercial vehicle industry is continuing to see a smart growth trajectory, especially in the Heavy Commercial Vehicle segment thanks to the robust infrastructure growth driving demand for newer sets of wheels. In fact, one may get a different view of the industry if the data is just looked upon at a macro level. The reality is quite different when analysing the segment-wise performance. For December 2023, the overall CV sales came at 73,347 units, compared to 76,817 units for the same period last year. A slowdown was observed in the demand for SCV segment due to the high-base effect.
In another development – Indian businesses are gearing up for a transformative year in hiring practices, banking on AI adoption and aligning workplace strategies with Gen Z expectations, a recent report by job search website Indeed stated. The report forecasts a significant shift towards incorporating Artificial Intelligence into workplaces, with about 59% of employees expressing confidence in their ability to adapt and utilize AI tools effectively. However, a mere 19% of employers have already taken steps or are in the process of implementing next-generation technologies like Generative AI, indicating a need for widespread adoption and implementation in the coming year. The report underscored the increasing demand for skills such as Generative AI, programming languages, and cybersecurity in the tech industry.
Meanwhile – Institutional investments in the Indian real estate sector maintained a steady momentum at USD 5.4 billion, up 10 per cent year-on-year during 2023, said a report by Colliers India. The year witnessed the highest levels of investment inflows since 2020 showcasing India’s resilience despite uncertainties in global markets otherwise. While foreign investments, it added, retained their dominance, forming 67 per cent of the total inflows for the year, domestic investments also registered an impressive 66 per cent annual increase at USD 1.7 billion. In terms of different segments, office sector continued to be the largest contributor in real estate investments for 2023 with 56 per cent share in total inflows, attracting both global as well as domestic capital.
In other news – Equipped with state-of-the-art amenities and to strengthen passenger connectivity, Prime Minister Narendra inaugurated the new terminal building at Tiruchirappalli International Airport in Tamil Nadu today. Built at a cost of more than Rs 1,100 crore, the new terminal building has been designed to showcase the cultural vibrancy of Tiruchirappalli. It would depict art forms from Kolam art to colours of Srirangam Temple and other theme artworks highlighting the connection of India to the rest of the world through its dynamic external facade and splendid interiors. For security and seamless check-in & check-out facilities, the new terminal building contains 60 Check-in Counters, 5 Baggage Carousels, 60 Arrival Immigration Counters, and 44 departure emigration counters.
Lastly – The government of India has extended the Production Linked Incentive scheme for the automotive industry for another year with certain modifications. In pursuance of the approval of Empowered Group of Secretaries, the Ministry of Heavy Industries has made partial amendments to the scheme for providing clarity and flexibility. Under the amended scheme, the incentive will be applicable for a total of 5 consecutive financial years, starting from the financial year FY2023-24, with the incentive disbursement to take place next year. The approved applicant(s) will be eligible for benefits for five consecutive financial years, but not beyond March 31, 2028.