Category: Business & Economy

Rachit Prints, a company that makes special fabrics for mattresses, announced on Tuesday that it wants to grow its earnings to ₹100 crore by 2026-27. Right now, the company made ₹37.08 crore during the 2023-24 financial year. Based in Meerut, Uttar Pradesh, Rachit Prints creates unique fabrics for mattresses, including knitted and printed varieties. To help fund its growth, the company plans to launch an initial public offering (IPO) and has chosen Khambatta Securities to lead the process.

Promoter and Managing Director Anupam Kansal expressed confidence in their goal, stating, “We are excited about expanding our operations and aim to reach ₹100 crore by 2026-27.” Rachit Prints operates a large 30,625 square foot manufacturing facility in Meerut that is equipped with advanced machinery from India and abroad. In the first quarter of this financial year, which ended in June 2024, the company earned ₹9.8 crore, with a profit of ₹1.02 crore.

Bharat Subcontinental Agri Foundation (BSAF) is gearing up for an exciting event called the South Asia Agri Summit. This important gathering will take place on January 15-16, 2025, at the Shangri-La Hotel in Colombo, Sri Lanka. The summit will focus on the changing landscape of pulses, grains, dry fruits, and spices in South Asia.

Many important people and companies will attend, including the National Agricultural Cooperative Marketing Federation of India (NAFED), Wheat Products Promotion Society (WPPS), and various flour mill associations from India.

The agricultural sector in South Asia is growing fast because people want more food, and there is a chance to sell products abroad. This summit is a great opportunity for exporters to learn about new market trends, rules, and technology. They’ll also get to meet industry leaders, government officials, and potential partners, which can help them form valuable business connections.

The event will feature expert discussions, trade exhibitions, and B2B meetings. These sessions will tackle important issues and explore opportunities in the agri-commodity trade. Exporters can use this chance to better understand trade in the region and find good opportunities for their products.

“Joining the South Asia Agri Forum can help you reach more customers and put your business at the forefront of agri-commodity trade in the region,” said Vivek Agarwal, Managing Director of BSAF. The last summit took place in Bangkok, Thailand, while the one before that was in Kathmandu, Nepal. The Thailand event welcomed over 1,000 attendees from nearly 50 different countries.

On Tuesday, Indian stock markets gained strength, thanks to two big companies: HDFC Bank and Reliance Industries. Investors were excited by talks from U.S. Federal Reserve officials hinting at a possible 0.25% decrease in interest rates later this month.

The main index, S&P BSE Sensex, climbed by 597.67 points, or 0.74%, finishing at 80,845.75. The broader Nifty 50 index also did well, increasing by 181.10 points, or 0.75%, to close at 24,457.15.

High-weight bank stocks saw a 1% rise, especially with HDFC Bank gaining 1.2%. Public sector banks, including the State Bank of India, reported increases between 2% and 3.3%. Reliance Industries, which has already risen 3% in the past two days, added another 1.2% on Tuesday.

Expert Opinions
Rupak De, a Senior Technical Analyst from LKP Securities, explained that the Nifty index showed bullish signs by moving above a key Fibonacci level. This suggests a potential rise in stock prices. He added that as long as the index stays above 24,400 points, there could be chances for it to reach 24,600–24,700 points. If it falls below 24,400, we might see a drop towards 24,150 points.

Global Markets
In global news, stocks around the world mostly rose on Tuesday, influenced by strong tech performances in the U.S. Hong Kong’s Hang Seng index increased by 1.0%, reaching 19,746.32, and Japan’s tech-heavy Nikkei jumped by 1.91%. This week will include important updates about job numbers in the U.S., which could impact the decisions of the Federal Reserve regarding interest rates.

Forex Update
The Indian rupee ended the day stable at 84.6850 per U.S. dollar. It hit a record low recently due to a stronger U.S. dollar and a weak Chinese yuan. The dollar index, which measures the U.S. dollar against six other currencies, was down by 0.15%.

On Tuesday, Finance Minister Nirmala Sitharaman revealed new changes in banking laws designed to make banking better for everyone. These changes will be discussed in the Lok Sabha and include 19 important amendments to various banking laws, including the Reserve Bank of India Act and the Banking Regulation Act.

One major change will allow bank account holders to have up to four nominees, making it easier for families to manage accounts. The bill will also protect investors’ money by sending unclaimed dividends, shares, and bond interest to the Investor Education and Protection Fund (IEPF). This means individuals can get their money back if they have claims.

Sitharaman explained that these changes are necessary as banking has changed over time. The amendments aim to improve how banks are managed and keep customer interests safe.

Key points include:

– Better governance for banks and improved reporting to the Reserve Bank of India.
– More protection for depositors and investors.
– Improved quality of audits for public sector banks.
– Increase in the tenure of cooperative bank directors from 8 to 10 years, in line with new rules.
– Clearer rules about who can be a director in banks, raising the financial limit from Rs 5 lakh to Rs 2 crore, which hasn’t changed in almost 60 years.
– Cooperative banks will have the new rules applying only to their banking activities.
– Directors of Central Cooperative Banks will now be able to serve on the boards of State Cooperative Banks.
– Banks will have more flexibility in deciding how much to pay their auditors.
– Changes will also set new reporting dates for banks, making it easier for them to comply with rules.

These amendments were first mentioned in the 2023-24 Budget speech, showing the government’s commitment to better banking services for everyone.

The Russian government has given the go-ahead for the local company VG Invest to buy the assets of Danish brewer Carlsberg in Russia for 34 billion roubles, which is about $320.75 million. This deal came after Russia took control of Carlsberg’s share in Baltika Breweries back in July 2023. Carlsberg’s CEO, Jacob Aarup-Andersen, said that the company had its business taken from them.

Recently, Carlsberg’s assets were no longer managed by the government. In the new deal, some of Baltika’s shares in businesses in Azerbaijan and Kazakhstan will be handed over back to Carlsberg. In exchange, Carlsberg will transfer a brewery in Russia called Hoppy Union.

It’s important to note that Carlsberg is selling its assets at a much lower price than their actual worth. Carlsberg stated in February 2023 that their assets in Russia were valued at 7.52 billion Danish crowns (around $1.06 billion) by the end of 2022.

Since Russia faced Western sanctions for its actions in Ukraine, it has been making it harder for foreign companies to exit. The government has required these companies to sell at lower prices than they would normally get, and they also impose an extra fee on the sale, often referred to as an “exit tax.”

VG Invest was only started in August and is run by Yegor Guselnikov, who is also a vice president at Baltika. He co-owns another company, Brewery Development Centre (BDC), with Alexander Tolmachev, who previously worked with Heineken in Russia.

This sale of Carlsberg’s assets to VG Invest follows a similar situation with the French company Danone, whose assets were also sold off to a businessman with close ties to the Russian government.

Kolkata’s tea prices have gone up by 18% from January to October this year compared to last year. The reason for this increase is that tea production has dropped significantly—by about 66.39 million kilograms, leading to a total of 1,112.11 million kilograms produced this year.

During a recent meeting between Assam tea growers and Union Minister Piyush Goyal, he emphasized the importance of producing high-quality tea and following health and safety rules. He urged the Food Safety and Standards Authority of India (FSSAI) and state governments to keep a close watch on these standards. The Minister also mentioned that there would be no extension allowed for tea plants to stay open after November 30, 2024, although top-quality tea producers could apply for special exceptions according to the Tea Board’s rules.

Another important point discussed was the need to control too much tea in the market so that prices don’t fall too low. The meeting also highlighted that selling 100% dust-grade tea through auctions will continue. This measure has helped keep the prices of dust-grade tea steady after the auction process changed.

With production set to stop after December 1, 2024, India’s overall tea production is expected to be less than last year. Bad weather in Assam and West Bengal has led to a drop in crop yields. While tea prices have risen recently, the lower production has affected earnings across the industry. The India Tea Association is worried that prices might drop in November compared to September, with prices falling between Rs 15 to Rs 40 per kilogram in auction centers across North India

Today, Marico Ltd. shares were trading at Rs 639.95, which is 1.05% lower than yesterday’s closing price of Rs 646.80. This drop comes while the overall market, represented by the BSE Sensex, dropped by 655.29 points to reach 80,903.37.

Marico’s shares have seen a high of Rs 719.80 and a low of Rs 486.75 over the past year. So far today, 11,896 shares were traded, bringing in about Rs 0.77 crore.

Looking at the company’s value, the shares are trading at a Price-to-Earnings (P/E) ratio of 52.24, which means investors expect the company to grow in the future. They also have a Price-to-Book (P/B) ratio of 16.73. This means people are paying this price even if the company is not expected to grow fast.

The stock’s Beta value is 0.7960, which means it is less volatile than the market.

In terms of ownership, as of September 30, 2024, company promoters own 59.2% of Marico, Foreign Institutional Investors (FIIs) hold 24.87%, and Domestic Institutional Investors (DIIs) have 4.92%.

On the technical side, the Relative Strength Index (RSI) is 53.45. RSI is a number that helps traders see if a stock is overbought (above 70) or oversold (below 30). However, it’s important to look at other factors too; just one number isn’t enough to make buying or selling decisions.

Shares of Indian Hotels Company Ltd. were trading at Rs 802.15 on the Bombay Stock Exchange (BSE) at 1:02 PM IST on Tuesday. This is up 0.15% from the previous day. Recently, the stock opened higher in the morning. The company’s stock has a 52-week low of Rs 416.15 and a high of Rs 814.65, showing that it has had some ups and downs.

By 1:02 PM, around 24,636 lakh shares had been traded. The company’s total market value is Rs 1,14,223.32 crore. The price-to-earnings (P/E) ratio stands at 68.29, while the price-to-book value is 8.90. The return on equity (ROE) is at 13.31%.

In the BSE500 group, 379 stocks were doing well (in the green), while 120 stocks were not doing so well (in the red). As of September 30, 2024, promoters held 38.12% of the Indian Hotels Company. Overseas and domestic (local) institutional investors owned 27.44% and 18.66%, respectively

HDFC Bank’s stock price went up by 2% after a big trade involving many shares. This deal helped HDFC Bank’s total market value rise above ₹14 lakh crore (14 trillion). The increase in share price makes HDFC Bank one of the most valuable banks in India. Investors reacted positively to this trade, showing confidence in the bank’s future. With this surge, HDFC Bank maintains its strong position in the market, making it an attractive option for those looking to invest in banking stocks.

Sanjeev Prasad, a top expert from Kotak Institutional Equities, believes that the stock market hasn’t really corrected itself, despite recent drops. He notes that many stocks are currently priced fairly high, with not much chance of significant increase. For many companies, their market price is about four times their actual book value, meaning they might be overpriced. Prasad explains that while some shares have gone down in price, the overall market is still making things complicated due to companies with unclear values, especially in sectors like consumer goods, cars, and construction.

Some industries, like hotels, are doing well, while others are struggling. For example, hospitality companies are seeing strong occupancy rates, but sales in food delivery services and quick shopping are also growing. However, he is cautious about certain industries, like cement and chemicals, stating that their high prices don’t match their actual earnings.

He also thinks that even though the Indian economy is growing, many companies are making too much profit, and this could lead to lower profits in the future due to more competition and changing market dynamics. While government spending is expected to increase in the future, it might not be enough to significantly change how prices behave due to the high valuations that many companies hold. People in the market are likely reacting to news without focusing on real value or earnings.