Business News at 10:00 am on 22nd December 2023

Let’s begin – The benchmark equity indices ended Thursday’s trading session in the positive territory. The NSE Nifty 50 gained 104 points or 0.50% to settle at 21,255.05, while the BSE Sensex jumped 358.79 points or 0.51% to 70,865.10. The broader indices ended in positive territory, with gain led by Midcap and Smallcap stocks. Bank Nifty index ended higher by 394.85 points or 0.83% to settle at 47,840.15. Media and Energy stocks gains amongst the other sectoral indices PSU Banks, Metal and Realty stocks gained more than 1%. Power Grid corporation, BPCL, Britannia Industries, Apollo Hospitals and HDFC Bank were the top gainers on the NSE Nifty 50, while the laggards includes Bajaj Auto, Bajaj Finance, Axis Bank, HCL Technologies, and Cipla. The Indian Volatility Index closed down by 4.79 %.

Up next – The adoption of electric vehicles in India could get an adrenaline boost, if the government accepts recommendation of the Departlment-led Parliamentary Standing Committee on Industry headed by MP, Dr K Keshava Rao. In the recommendation released yesterday the committee has made a slew of suggestions to the government to drive adoption and supportive ecosystem for electric vehicles in India. As part of the document released, the committee states that the Ministry should broaden the scope and extend the FAME 2 scheme for at least 3 more years in consultations with industry stakeholders to make the scheme more inclusive. It is interesting to note that the FAME 2 scheme with an budget outlay of Rs 10,000 crore was introduced in 2019 for a period of three years.

Moving on – The Delhi Metro Rail Corporation has said that the National Common Mobility Card was used by over 47 lakh commuters for traveling in Delhi Metro in the last six months till December 12. Launched on June 5, the NCMC facility was used by 47.97 lakh commuters, with the highest numbers of passengers using it in November, so far. In July, a total of 1.67 lakh commuters used the NCMC facility, while in August, the number stood at 4.96 lakh. September saw the figure jump to 12.65 lakh commuters. The highest number of commuters using the facility in a month was in November at 13.34 lakh, the data showed.

In another development – Indian railways are well on their way to carbon neutrality by 2030, with an electrified broad gauge network of 60,814 km up to November 2023, stated the union minister of railways Ashwini Vaishnaw in a written reply to Lok Sabha during the winter session of the parliament. According to the minister’s response, railways electrified a network of 39,013 km during the period between April 2014 and November 2023, about seven and a half times more than the 2014-14 period. Across all the zones, Northern Railway has the largest network of electrified network with 6,799 km, followed by South Central Railway and Western Railways. In the 2023-24 period up to November 2023, 2002 km of Broad Gauge network was added by the railways.

Meanwhile – Mazagon Dock Shipbuilders jumps more than 5% from days low, showcasing a robust performance as the company secured its third consecutive order in the span of 10 days. The latest contract, valued at ₹1,600 crore, has been inked with the Ministry of Defence for the construction and delivery of six cutting-edge offshore patrol vessels destined for the Indian Coast Guard. Under the agreement, Mazagon Dock is committed to delivering the initial vessel within 41 months, with subsequent deliveries following at intervals of five months. This remarkable feat marks the shipbuilder’s third significant win in the past 10 days, solidifying its position as a key player in the maritime construction domain.

In other news – Union Minister Nitin Gadkari has outlined India’s ambitious goal of bringing the country’s infrastructure standards up to that of the US within the next five years. He added that as part of its strategy, the government aims to address metro congestion, significantly reduce travel time, and minimize road accidents. He highlighted that over the past nine years, the ministry has allocated projects exceeding Rs 50 lakh crore and has streamlined the contract approval process by refining existing policies. In an interview published in the Manorama Yearbook 2024, Gadkari emphasized the ministry’s commitment to transparency, time-bound decision-making, and quality-conscious approaches.

Lastly – ICRA has revised its forecast of road awards by the Ministry of Road Transport and Highways (MoRTH) in FY2024 to 7,000-7,500 km, a year-on-year decline of 40-43 per cent. In 7M FY2024, ICRA said, road awards stood at 2,595 km, 48 per cent lower than 5,007 km awarded in 7M FY2023. However, it added, if the model code of conduct for the General Elections comes into effect in Q4 FY2024, the awarding activity is likely to get further curtailed, as the month of March itself typically accounts for 40-45 per cent of awards in a year.