Business News at 5:30 pm on 27th December 2023

“Let’s begin…Companies raised over Rs 52,000 crore through mainboard IPOs in 2023, demonstrating resilience amidst global volatility driven by rising interest rates and geopolitical risks. However, the number of issues rose, marking a dynamic trend. Despite this, experts maintain a strong bullish outlook on the IPO market for 2024. Excluding LIC’s blockbuster maiden public issue of Rs 20,557 crore in 2022, the collection from initial public offerings (IPOs) increased by an impressive 36% this year. 2023 has unequivocally been the year of initial public offerings, witnessing 173 small and medium-sized enterprises (SMEs) and 52 mainboard listings. The market has seen outstanding debuts and subscriptions. Reflecting the buoyancy of the Indian stock markets. Despite expectations of significant volatility in the upcoming year, experts believe that the primary market will continue to gain momentum.
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“Now let’s talk economy…High-frequency indicators including increase in GST collection, growth in private consumption, GDP print coming above market’s expectations, CPI inflation subsiding meaningfully, and a resilient earnings, suggest a sustained growth in the near-term, said an analysis report by Cushman & Wakefield. Other high frequency indicators such as monthly PMI surveys, retail sales, etc. too point towards sustained growth in consumption, it said. For the first three quarters of the current year, India’s real GDP growth figures stood at 6.4 per cent, 7.8 per cent and 7.6 per cent, respectively. RBI has also raised FY2023-24 growth forecast to 7.0 per cent from 6.5 per cent estimated earlier.
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“Next up….The Indian mutual fund industry, which has witnessed a 125 per cent surge in net inflows and around 24 per cent growth in Assets under Management (AUM) since the beginning of this calendar year, is likely to sustain its growth momentum in 2024, said a report by ICRA. The growth, it added, will be backed by strong macroeconomic fundamentals of the Indian economy and resilient earnings growth. The net inflows into the mutual fund industry were to the tune of Rs 25,616 crore in the month of November 2023, up from Rs 11,373 crore in January this year. On a year-on-year basis, net inflows surged by 93 per cent as compared with Rs 13,264 crore in November 2022.
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“Additionally…2024 will be another landmark year for the realty sector. As developers explore untapped growth areas, the coming year promises to fulfil the aspirations of India’s smaller cities, says Yash Miglani, MD of Migsun Group. In an exclusive interview with Sanjeev Sinha, Mr Miglani talks about the real estate’s growth trajectory in 2024 and what made 2023 a remarkable year for the sector in Tier 2&3 cities, as he outlines the promises and opportunities that lie ahead, especially in non-metro towns and cities as infrastructure development, affordability, and changing dynamics take centre stage. As the realty market in major metro cities gets costlier, real estate developers are strategically expanding their footprint in Tier 2 and Tier 3 cities. These are untapped growth pockets, showcasing a dynamic real estate landscape of evolving aspirations and demographics in India’s smaller cities.
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“In other news…Around 19,700 GPS-based navigation devices, known as Fog Pilot Assistance System for Safety (FogPASS), are helping loco pilots operate trains around the country with minimal disruptions and delays while keeping the passenger’s safety on priority, Railways officials said. Officials say that as fog has begun to affect visibility in the morning hours, these devices are coming in handy in the smooth operations of trains. A senior railway official said that every year we increase our procurement so that we have enough stock of the device to use in times of need. In March 2021, we had around 12,742 FogPASS devices. As the number of trains are increasing with the introduction of new trains, we have increased our procurement of Fog PASS devices as well.
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“Moreover…Agricultural (agri) pump makers will see healthy revenue growth of 7-9 per cent in fiscal 2025, said a report by CRISIL Ratings. This, it added, will be supported by resilient domestic demand for conventional pumps and a surge in offtake of solar pumps, largely under the PM Kusum Scheme. This will follow a likely revenue growth of 8-10 per cent in the current fiscal. Operating margin, too, will remain healthy, at 12-13 per cent this fiscal and the next, riding on improving operating leverage and with prices of key raw materials remaining steady. This, along with a steady working capital cycle and moderate capital expenditure (capex), will support credit risk profiles. CRISIL Ratings analysed five large agri pump makers, comprising nearly 55 per cent of the sector’s revenue estimated at ~Rs 6,000 crore for fiscal 2024 to release the report.
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Lastly…Let’s see how the share market performed today. The benchmark equity indices ended Wednesday’s trading session in the positive territory. The NSE Nifty 50 gained 213.40 points or 1% to settle at 21,654.75, while the BSE Sensex soared 701.63 points or 0.98% to 72,038.43. The broader indices ended in green, with gain led by Largecap and Smallcap stocks. Bank Nifty index ended higher by 557.35 points or 1.17% to settle at 48,282.20. PSU banks and Auto stocks outperformed where Oil & Gas stock shed.