Category: Business & Economy

On Wednesday, December 18, early trading saw the Indian stock markets, Sensex and Nifty, drop due to investors pulling out money and waiting for an important decision from the US Federal Reserve about interest rates. The BSE Sensex, which tracks the top 30 companies, fell by 149.31 points to reach 80,535.14 points. The NSE Nifty, another main index, decreased by 62.9 points, settling at 24,273.10.

Among the big companies in the Sensex, Tata Motors, Power Grid, Larson & Toubro, Adani Ports, Maruti, and NTPC saw the biggest drops. In contrast, some companies like Reliance Industries, HCL Technologies, Tech Mahindra, Hindustan Unilever, Asian Paints, and ITC managed to gain some points.

Foreign investors sold shares worth ₹6,409.86 crore on Tuesday, as reported by Niftystat. The day before, both Sensex and Nifty fell by more than 1%, with Sensex dropping below the 81,000 points. This decline was because of a general sell-off as traders waited for the US Fed’s decision on interest rates.

The total drop was felt across all 30 major stocks in the Sensex, with Bharti Airtel, IndusInd Bank, JSW Steel, Tata Consultancy Services, and HDFC Bank being among the biggest losers. Stocks in the telecom, metals, and auto sectors took hard hits.

Globally, markets were not doing well either. Asian countries like South Korea, Japan, China, and Hong Kong all saw their markets fall. European markets were generally down, while the US markets showed mixed results.

The Indian stock market fell sharply on Tuesday as investors were worried about the U.S. Federal Reserve’s decision on interest rates. Major companies like HDFC Bank, ICICI Bank, Reliance Industries, and Bharti Airtel saw their stocks drop, causing the main index, BSE Sensex, to lose 1,064.12 points, closing at 80,684.45. The Nifty 50 index also declined by 332.25 points to finish at 24,336.00.

Experts believe that investors are cautious due to upcoming announcements from the Federal Reserve, Bank of Japan (BoJ), and Bank of England (BoE). Even though a small rate cut from the U.S. Fed is expected, many are watching for hints that might point to future changes. The Indian Rupee also fell to its lowest ever, adding more pressure as foreign investors pull out money due to rising U.S. bond yields and a stronger dollar.

In U.S. markets, stocks dipped as people awaited the Fed’s decision and digested better-than-expected retail sales data showing a rise of 0.7% in November.

From a technical standpoint, the Nifty index showed signs of bearish trends, indicating further potential declines towards the support level of 24,200. Analysts suggest that if the Nifty stays above this level, a recovery might occur.

In trading volume, the most active stocks included Mazagon Dock Shipbuilders, Suzlon Energy, Zomato, Paytm, and Reliance Industries. Some companies, like Jyoti CNC Automation and Quess Corp, experienced strong buying interest, while others like Shriram Finance and Blue Star faced heavy selling pressure.

Despite a challenging market day, over 278 stocks reached their 52-week highs, while 28 stocks hit their lows. Most stocks in the market declined, with 2,502 falling compared to 1,521 that advanced.

The Reserve Bank of India (RBI) has decided to lift the business restrictions on two companies from the Edelweiss Group, ECL Finance and Edelweiss Asset Reconstruction Company (ARC). The RBI made this decision after being convinced that these companies took the right steps to fix the issues raised by the bank.

Earlier, on May 29, the RBI had put restrictions on these companies because they were found to be involved in serious problems related to how they managed bad loans, a practice known as ‘evergreening.’ This meant they were trying to cover up bad loans by pushing them into new loans, which isn’t allowed.

Because of this, ECL Finance was told to stop doing complex financial deals, except for paying back or closing accounts. At the same time, Edelweiss ARC was prohibited from buying new financial assets or reorganizing old ones into different categories.

However, now that the RBI believes ECL Finance and Edelweiss ARC have made the necessary improvements, it has lifted the restrictions immediately.

The Reserve Bank of India (RBI) has lifted business restrictions on two important parts of the Edelweiss Group: ECL Finance Ltd and Edelweiss Asset Reconstruction Company Limited. This change took effect immediately after the companies made improvements to fix earlier concerns raised by the RBI.

On May 29, 2024, the RBI imposed certain rules on these two companies because of issues it found. ECL Finance Ltd was told to stop doing complex transactions for its big loans, except for regular payments or closing accounts. At the same time, Edelweiss Asset Reconstruction Company Limited was not allowed to buy financial assets or reorganize existing agreements into different parts.

After these restrictions were placed, the companies worked hard with the RBI to address the problems. The RBI, after checking the changes and efforts made by the companies, was happy with their progress and their promise to follow the rules in the future.

NEW DELHI: On Tuesday, the stocks of Indian Card Clothing, Kalyani Steels, Enviro Infra Engineering, RPP Infra Projects, and Rudrabhishek Enterprises reached new highs, hitting their best prices in 52 weeks during trading on the NSE (National Stock Exchange). Despite this, the main index, NSE Nifty, dropped by 332.25 points, closing at 24,336.0 due to selling pressure on major blue-chip companies.

On the downside, companies like Odigma Consultancy, Uttam Sugar Mills, Spandana Sphoorty, Avenue Supermart, and Asian Paints saw their stocks hit fresh lows, marking their worst prices in a year. In total, just one stock in the Nifty 50 index went up, while 49 fell.

Among the top gainers today in the Nifty 50 index were Cipla, Wipro, ITC, HUL, and Infosys. In contrast, Shriram Finance, Grasim Industries, Bharti Airtel, Hero MotoCorp, and JSW Steel concluded the day in the red zone, meaning their stock prices dropped.

The BSE Sensex dropped significantly, closing 1,064.12 points lower at 80,684.45. Traders showed interest in sectors like General Goods, Apparel, Beverages (Alcoholic), Engineering, and Non-Banking Financial Companies (NBFC), while there were sales in sectors like Diversified Industries, Irrigation, Cables, Education, and Industrial Supplies.

On Tuesday, lots of shares changed hands in the stock market! Here are the top companies with the most shares traded:

– Vodafone Idea: 25.24 crore shares
– Suzlon Energy: 18.83 crore shares
– YES Bank: 14.89 crore shares
– Zomato: 7.27 crore shares
– Mindspace REIT: 5.76 crore shares
– GTL Infra: 5.63 crore shares
– PC Jeweller: 5.45 crore shares
– Hind Const Co: 4.10 crore shares
– JP Power: 3.81 crore shares
– GI Engineering: 3.70 crore shares

Meanwhile, the NSE Nifty index dropped by 332.25 points to close at 24,336.0. The BSE Sensex also fell, losing 1,064.12 points to finish at 80,684.45.

Unfortunately, some companies did not do so well today. Here are the top losers:

– Shriram Finance Ltd.: down 5.12%
– Grasim Industries Ltd.: down 3.19%
– Bharti Airtel Ltd.: down 2.85%
– Hero MotoCorp Ltd.: down 2.73%
– JSW Steel Ltd.: down 2.38%

Stay tuned for more updates on the stock market!

Recently, Indian banks are facing their biggest money shortage in nearly six months. This problem is mainly happening because companies are paying their taxes and the central bank is selling dollars to keep the value of the Indian rupee stable.

Right now, banks are short about 1.5 trillion rupees (that’s around 17.7 billion dollars). This is the worst it has been since June 24. The Reserve Bank of India (RBI) has been selling dollars since October, which is making it harder for banks to keep enough money available.

The RBI is likely to keep trying to manage the dollar’s value, especially since India’s trade deficit is growing and the dollar is getting stronger. Recently, the rupee fell to a new low, reaching 84.9337 per dollar.

Even though the RBI has made some efforts to help increase how much money there is in the banking system—like lowering the cash-reserve ratio and providing more funds through special loans—it’s still not enough. According to Anubhuti Sahay, an economist at Standard Chartered Bank, more actions like buying bonds or offering different types of loans are needed to keep money available.

The money shortage is making it more expensive for banks to borrow money from each other. The interest rate for overnight loans has gone up by 35 basis points, which is higher than the RBI’s main interest rate of 6.50%.

Also, the end of the year is a busy time for banks, as companies have to pay their taxes. This extra money demand is adding to the cash shortage. According to Gaura Sengupta from IDFC First Bank Ltd, the latest tax payments have pulled 1.4 trillion rupees out of the banking system.

In simple terms, banks in India are currently facing a significant money shortage because of tax payments and actions from the central bank.

Shares of HDFC Asset Management Company Ltd. were trading at Rs 4,418.80 on the Bombay Stock Exchange (BSE) at 1:38 PM on a Tuesday. This was a drop of 2.14% from the previous day’s closing price. The company’s stock reached a low of Rs 2,852.85 and a high of Rs 4,862.00 in the past year. The stock opened lower this morning. By 1:38 PM, around 2,652 lakh shares were traded.

HDFC Asset Management Company Ltd. is valued at Rs 94,393.84 crore. The company’s Price-to-Earnings (P/E) ratio is 42.73, and the Price-to-Book (P/B) ratio is 11.32. It has a good return on equity (ROE) of 28.08%.

In the BSE500 group, out of all stocks, 135 rose in value, while 364 fell. As of September 30, 2024, the promoters own 52.51% of HDFC Asset Management, while foreign and local institutional investors hold 21.55% and 16.91%, respectively.

On Tuesday, ACC Ltd. shares dropped by 1.64%, trading at Rs 2209.50 around 1:07 PM. This happened even as the Sensex, a key market index, rose by 892.86 points to reach 80,855.71. In the previous trading session, ACC shares closed at Rs 2246.55.

The stock has seen a high of Rs 2843.00 and a low of Rs 1867.15 over the last year. According to NiftyStat, by 1:07 PM, 61,000 shares had changed hands, totaling a turnover of Rs 0.61 crore.

Currently, ACC Ltd.’s stock price is 20.31 times its earnings for the last year, which were Rs 108.82 per share. This means investors are willing to pay more for the stock because they expect the company to grow in the future. Additionally, the price-to-book value is 2.87, which indicates what investors are ready to pay based on the company’s value, even if it isn’t growing.

The Beta value of ACC’s stock is 1.3069, showing it tends to be more volatile than the general market. As of September 30, 2024, promoters own 56.69% of the company, while foreign institutional investors (FIIs) hold 5.5%, and domestic institutional investors (DIIs) own 24.32%.