Business News at 5:30 pm on 6th February, 2024

“Let’s begin…Shares of Bharti Airtel rose 5.6% to Rs 754.65 after the company reported its earning results for the quarter ending December. On Monday, the company reported its net profit at Rs 2,442.2 crore, an increase of 54% year on year. Its revenue stood at Rs 38,339 crore, which was 6.3% higher from Rs 36,062 crore in the year-ago period. In the last five days, the company’s stock has fallen 0.9% but has risen 9.4% in last month. The stock has risen 45.53% in last year and 306.68% in last five years. The benchmark index Nifty 50 has risen 1.65% in the last five days. The index has gained 23.30% in last year and 100.13% in last five years.
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“Next up…Mukesh Ambani’s Jio Financial has squashed all media reports regarding the RIL boss acquiring embattled Paytm’s wallet business. In a late-night regulatory filing, Jio Financial termed all the media reports as ‘speculative’. The fintech entity also clarified that it has not been involved in any kind of negotiations with Paytm regarding sale of wallet business. The clarification came after a report by the Hindu Business Line said that Jio Financial and HDFC Bank are among the contenders for buying Paytm’s wallet business. Meanwhile, the D-Street rout of Paytm shares continued for the fourth consecutive session on Tuesday, prompted by reports that federal anti-fraud agency is probing potential violations of foreign exchange rules by platforms operated by the company.
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“Additionally…HDFC Bank on Tuesday said RBI has given approval to the group to acquire up to 9.5 per cent stake each in six lenders, including ICICI Bank and Axis Bank. The RBI gave its approval on February 5, 2024. Entities under HDFC Bank Group are HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company and others. HDFC Bank said in a regulatory filing, quote, “the approvals were granted pursuant to applications made by HDFC Bank (as a promoter/ sponsor of the Group) to RBI on December 18, 2023” unquote. The six lenders in which the HDFC Bank will take stake are — Axis Bank, Suryoday Small Finance Bank, ICICI Bank, Bandhan Bank, Yes Bank, and IndusInd Bank.
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“Let’s talk market…Railway stocks, including Rail Vikas Nigam Ltd, Ircon International Ltd, Indian Railway Finance Corporation Ltd, Titagarh Rail Systems Ltd, and Texmaco Rail & Engineering Ltd, are expected to experience significant gains following the recent Budget 2024 announcements made by Union Finance Minister Nirmala Sitharaman. During her interim budget presentation on February 1, Sitharaman unveiled plans to convert approximately 40,000 rail bogies to Vande Bharat standards, signaling potential benefits for the mentioned railway companies. A substantial capex of Rs 2.55 lakh crore has been allocated for the Indian Railways in the new financial year. The Finance Minister highlighted the conversion of 40,000 normal rail bogies to Vande Bharat standards as a measure to enhance passenger comfort, convenience, and safety.
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“In other news…To bolster the construction and land acquisition process, the Uttar Pradesh government allocated Rs 1,150 crore for the upcoming Noida International Airport under Budget 2024-25. The announcement was made by Finance Minister of Uttar Pradesh Suresh Kumar Khanna as he tabled the budget for the fiscal year in the state assembly on Monday. Khanna said, quote, A provision of Rs 1,150 crore is proposed for establishment of an international airport and purchase of land in Jewar of Gautam Buddha Nagar district, unquote. The development for phase one of Noida International Airport is underway, which is scheduled to open for commercial operations by the end of this year. Under phase one, a total of 230 acres will be developed.
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“Moreover…The Minister of State for Civil Aviation V K Singh on Monday (February 5) informed that the government has not cancelled any route under the regional air connectivity scheme UDAN (Ude Desh ka Aam Nagrik). The statement came as a response to a query during the Question Hour in the Rajya Sabha. Launched in 2016, UDAN aims to bolster regional air connectivity and make air travel affordable for residents of tier-2 and tier-3 cities and towns. The minister clarified that approximately 509 routes are currently operational, and routes are allocated to airlines through a bidding process. These allocations are based on underserved/ unserved airports, with the Airports Authority of India (AAI) facilitating necessary facilities for flight operations on specific routes.
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Lastly…Let’s take a look how the stocks performed today. The benchmark equity index Nifty 50 ended Tuesday’s trading session on a positive note. The NSE Nifty 50 closed 157.70 points or 0.72% higher to settle at 21,929.40 points. While S&P BSE Sensex gained 454.67 points or 0.63% to settle at 72,186.09 points. Bucking the trend, Nifty Bank lost 134.75 points or 0.29% to settle at 45,690.80 points. On the sectoral front, oil & gas and IT stocks dragged indices. The broader indices also ended in the green, with midcap and smallcap stocks gaining the most. The gainers include BPCL, HDFC Life Insurance, HCL Technologies, TCS, and Maruti Suzuki. The Indian Volatility Index (India VIX) closed 1.02% higher.