Business News at 5:30 pm on 5th February, 2024

Let’s begin…The RBI’s six-member Monetary Policy Committee is scheduled to meet from February 6 to 8. Per the economists, the central bank is expected to keep the repo rate unchanged for the sixth consecutive time at 6.5 per cent to meet the 4 per cent consumer price-based inflation target. The RBI had last increased the repo rate by 25 basis points on February 8, 2023, to 6.5 per cent. One basis point is one-hundredth of a percentage point. The RBI MPC had announced the repo rate at 6.25 per cent during its December 2022 meeting. If the RBI maintains the status quo in the upcoming policy, it would mark one full year of the repo rate remaining steady at 6.5 per cent.
Let’s talk market…The Kolkata-based Apeejay Surrendra Park opened for bidding to retail investors for its initial public offer on February 05. It is a Rs 920 crore book-built issue, comprising both fresh issue as well as offer for sale. The price band of Rs ₹147 to ₹155 per share has been set for the issue, with a minimum lot size of 96 shares and then multiples of thereof. The issue has a reservation of up to 675,675 shares for employees offered, which will be at a discount of Rs 7 to issue price. The issue will close on February 07. The company’s shares will be listed on both the bourses: NSE and BSE. The issue has already raised Rs 409.50 crore from anchor investors.
Additionally…Paytm shares experienced another significant downturn, triggering a consecutive 10% lower circuit on Monday. This follows a substantial 20% decline the preceding day, compounding the challenges for the company. The current market value of Paytm shares stands at Rs 438.50, approaching its all-time low of Rs 438, a level not observed since March 2022. The decline in Paytm’s stock comes in the wake of regulatory obstacles, with the Reserve Bank of India (RBI) identifying supervisory concerns in the top management and operations of Paytm Payments Bank. As a consequence of these regulatory hurdles, Paytm Payments Bank services are set to cease operations from March 1, with February 29, 2024, designated as the last day of service.
Next up…The inaugural edition of the Bharat Mobility Global Expo was a grand success and a milestone event in the industry of mobility, said Piyush Goyal, Minister of Commerce & Industry. Addressing the media at a recent press conference, Goyal added that the exhibition will, henceforth, become an annual event. He further added that all such mobility expos including the biennial Auto and Components Expo will be merged into Bharat Mobility Expo. Held between 1 and 3 February, 2024 at Pragati Maidan in New Delhi, the 2024 edition of Bharat Mobility Expo witnessed an impressive turnout of around 800 exhibitors from more than 50 countries. 28 auto OEMs and over 600 auto component manufacturers participated in the recently concluded event.
In other news…In a transformative shift within the realm of railway travel, the conventional Integral Coach Factory (ICF) coaches are gradually making way for the advanced Linke Hofmann Busch (LHB) coaches. According to the statement issues by the Ministry of Railways, a total of 23,000 conventional coaches have been successfully replaced by their LHB counterparts since 2015. The trains operating with conventional ICF coaches are getting replaced by LHB coaches in a phased manner. These modern coaches boast a multitude of salient features, such as an improved ride quality index, a Centre Buffer Coupler ensuring enhanced safety and anti-climbing features, Axle-mounted Disc brake system, and a sturdy design aimed at minimising damage and preventing coach capsising during accidents.
Moreover…India’s low-cost carrier SpiceJet is on an expansion spree as the airline has announced plans to expand its business over the next two years. The plan includes increased connectivity between various tourist and religious destinations including Lakshadweep, the airline’s chief Ajay Singh informed. Earlier last week, Gurgram-based airline started direct flight service connecting Ayodhya with eight cities. The strategic initiative enhances accessibility for devotees and tourists seeking the ‘darshan’ of Lord Shri Ram Lalla in the newly consecrated temple of Ayodhya. The domestic carrier is also planning to operate seaplanes and is awaiting infrastructure development for water ports, the airline’s chief said. The carrier already has the license to operate seaplanes and plans are in the works to connect several locations through seaplane services.
Lastly…Let’s take a look how the stocks performed today. The benchmark equity index Nifty 50 ended Monday’s trading session on a negative note. The NSE Nifty 50 closed 82.10 points or 0.38% lower to settle at 21,771.70 points. While S&P BSE Sensex lost 354.21 points or 0.49% to settle at 71,731.42 points. Similarly, Nifty Bank lost 145.40 points or 0.32% to settle at 45,825.55 points. On the sectoral front, banks and consumer durables stocks dragged indices. The broader indices also ended in the red, with largecap and midcap stocks losing the most. The gainers include Tata Motors, Coal India, Sun Pharma, Cipla, and BPCL. The Indian Volatility Index (India VIX) closed 6.19% higher.