Weekly News Roundup at 10:00 am on 28th January 2024

Let’s begin. India has overtaken Hong Kong in terms of stock market capitalization for the first time as the country’s growth prospects and policy reforms seem to increase its attractiveness for investors and those looking for alternative destination, given global capital pours out of China. The combined value of shares listed on Indian exchanges reached $4.33 trillion as of Monday versus $4.29 trillion for Hong Kong, according to data compiled by Bloomberg. That makes India the fourth-biggest equity market globally. Its value crossed $4 trillion for the first time on December 5, with about half of that coming in the past four years. Hong Kong’s Hang Seng index has experienced its fourth consecutive yearly decline. In contrast, Indian equity markets have sustained gains for eight consecutive years.

Meanwhile, The country’s sugar production in the current season is likely to be higher than the 32.5 million tonne projected last month owing to favourable weather conditions in the key growing states, the Indian Sugar Mills Association said this week. ISMA said the recent weather conditions have been favourable for the standing cane crop, and cane commissioners of major states like Uttar Pradesh, Maharashtra and Karnataka have done an upward revision of around 5-10% in their sugar production estimates for the 2023-24 season. A statement by ISMA says that they also believe that sugar production in the current year could be higher than what was expected earlier. The association will bring out a second advance estimate of sugar production by the end of the month.

Now some IPO-related news. Gold loan company Indel Money, which aims at initial public offering in 2026-27, this week announced public issue of debentures worth Rs 200 crore. The fourth public issue of secured, redeemable non-convertible debentures of Rs 1,000 face value would open for subscription on January 30 and offers highest rate option of 12.25 per cent for 72 months. The issue includes a base size for an amount of up to Rs 100 crore with an option to retain over-subscription up to Rs 100 crore aggregating up to Rs 200 crore. Asked as to why public offer of NCDs, Indel Money CEO Umesh Mohanan said, this is in anticipation for IPO that they are targeting in 2026-27.

Moving on. Days after Sony terminated the $10 billion media merger, Zee Entertainment Enterprises Ltd this week moved the NCLT against Sony Pictures Networks’ decision to scrap the deal. In a filing in stock exchange, ZEEL said that it is “seeking directions to implement the merger scheme.” The Punit Goenka-led company had asked for another deadline extension from Sony. However, instead of accepting the request of a deadline extension, Sony decided to terminate the merger. The $10 billion mega-merger was signed on December 22, 2021. Culver Max, Zee and Bangla Entertainment Pvt Ltd, had decided to merge their businesses into a single entity and the deadline was within 24 months.

Over to industry. Consumer electrical goods maker Havells India reported its third quarter profit for the financial year 2023-24 at Rs 287.91 crore, up 1.5 per cent in comparison to Rs 283.52 crore during the same period last year. It posted revenue from operations at Rs 4,413.86 crore, up 6.9 per cent as against Rs 4,127.57 crore during the third quarter of FY23. While the company posted total income during the quarter in review at Rs 4,469.75 crore, total expenses incurred during the quarter was at Rs 4,079.02 crore. The Board of Directors also declared an interim dividend of Rs 3.00 per Equity Share of Re 1 each, i.e., at 300 per cent on the equity share capital of the company.

Next up, economy. Amid concerns over the absence of snowfall and rains over the hills this season, the India Meteorological Department expects the persisting El Nino conditions to turn ‘neutral’ prior to the start of monsoon season in June. Neutral El Nino conditions imply that it would not have an adverse impact on the monsoon rains next season. Mrutyunjay Mohapatra,Director General, India Meteorological Department, however, said there are several other parameters which could influence the monsoon. IMD will be releasing the first forecast for 2024 monsoon (June-September) in April.

Lastly, some good news for auto lovers. Amidst all the noise and clatter for its highly anticipated launch, Hero Mavrick 440 made its official debut at the company’s Centre for Innovation and Technology in Jaipur, on the occasion of Hero World Day. However, the homegrown bike brand didn’t reveal prices of its flagship model, which will happen in the next few weeks. Bookings for the Mavrick 440 are slated to commence next month onwards while deliveries will begin from April 2024. The company shared multiple teasers of the middleweight roadster ahead of its debut. It is based on the same platform as Harley Davidson X440 launched last year and co-developed by Hero MotoCorp.