In this weekend bulletin, we will talk about PM Modi’s promise of major economic decisions, Rs 3.6 trillion wiped off from Adani Group market cap, biggest decline for VIX in 4 years, and more.
Here’s the Weekly Business Roundup at 10:00 am on 9th June, 2024.
[Disclaimer: This transcript is auto-generated]
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Let’s begin…Prime Minister Narendra Modi on June 4 asserted that the NDA government in its third term would show added resolve and energy, and take major decisions that would pave the way for making India a developed nation. Addressing BJP workers in New Delhi after the poll results showed the NDA is poised to retain power with a reduced majority, Modi vowed to improve the conditions of all people, regardless of their caste and religion. He said that India’s electorate has “created history” by giving an incumbent government a mandate to rule for the third consecutive time, for the first time after 1962. Currently, India is the fifth largest economy in nominal terms, and the fastest growing among the major economies.
Next up, Shares of Adani Group companies were dealt a heavy blow on June 4 with their market valuation declining by Rs 3.6 trillion as the counting of votes for Lok Sabha polls showed a tighter contest than market’s expectations.The combined market valuation of all the 10 listed companies stood at Rs 15.78 trillion at the end of the trading session. The shares of Adani Group companies fell in the range of 10-22% and were among the worst hit stocks in the market. Adani Ports and Special Economic Zone and Adani Enterprises were the worst hit stocks in the Nifty index as they tumbled 21.3% and 19.4%, respectively. Eight of the 10 group firms hit their lower circuit limits during the day.
Moving on, India’s services activity recorded a slowdown in May, with the final HSBC India Services Purchasing Managers’ Index, compiled by S&P Global, softening to 60.2 in May from April’s 60.8. The growth, which was at its lowest mark since last December, was slowed to a five-month low in May due to weakened domestic demand, the survey stated. Despite the slowdown, the index remained comfortably above the neutral mark of 50.0 in May, highlighting a sharp upturn in output. Growth, per S&P Global, was reportedly supported by rising sales, productivity gains and demand strength. The upturn was somewhat hampered by competitive and price pressures.
In other news, Central Railway on June 2 announced the successful completion of the commissioning of Electronic Interlocking at Chhatrapati Shivaji Maharaj Terminus in Mumbai and the widening of platforms at Thane station. Both the projects were completed ahead of schedule by the Central Railway. According to the press release, the first train departing from CSMT after the block left for Tilwala at 1:10 pm on Sunday. The enormous task of commissioning Electronic Interlocking at CSMT for extending platforms 10 and 11 and widening platforms 5 and 6 at Thane station was completed well before the targeted time to ensure smooth travel for all commuters.
Up next, The Central Board of Indirect Taxes & Customs has invited suggestions on the draft ‘Central Excise Bill, 2024’, which aims to enact a comprehensive modern central excise law with an emphasis on promoting ease of doing business and repealing old and redundant provisions. The main aim of this bill is to remove outdated and redundant provisions following the introduction of the GST. This Bill addresses the long-standing demand from industry players to align excise duty provisions with GST legislation, experts say. The Bill comprises twelve chapters, 114 sections and two schedules. Stakeholders have been asked to send their comments on the bill by June 26. Once enacted, the bill will replace the Central Excise Act, 1944.
In another development, Punjab National Bank announced that it has got approval from its board of directors for initiating the process to dilute 10 per cent stake in Canara HSBC Life Insurance Company by listing the insurer through an initial public offer. The bank said, quote, The Exchange is hereby informed that the Board in its meeting held today, i.e., 04.06.2024 has accorded its approval for initiating the process of diluting 10.00 per cent stake of the Bank in M/s Canara HSBC Life Insurance Company Ltd., an associate company of the Bank, by listing the Company in Stock Exchanges through Initial Public Offer,’ end quote. The proposed move will be subject to regulatory approval. The modalities of the issue and other formalities will be decided in due course, it added.
Lastly, Meta-owned WhatsApp banned over 71 lakh accounts in India in the month of April for violating the laws of the land. Reportedly, out of 7,182,000 banned WhatsApp accounts, 1,302,000 were proactively blocked, before any users reported of ‘violation of privacy policies,’ the social media company explained in a statement. Reportedly, WhatsApp bans lakhs of Indian users who are reported for being scammers or violating the platform’s privacy policies. As per WhatsApp’s India Monthly Report, the Meta-owned instant messaging platform highlighted that it banned around 71 lakh Indian accounts between April 1, 2024, and April 30, 2024. The initiative taken by WhatsApp was to curb misuse and maintain platform integrity.
