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In today’s podcast, we talk about the interim budget, paytm shares, and Century Textiles’ Q3FY24 profit among other news.
Today’s Latest Business News Transcript at 5:30 PM on 2 February 2024
Let’s begin. Finance Minister Nirmala Sitharaman presented the vote on account or the interim Budget for FY25 while maintaining a balance between inclusive and sustainable growth with fiscal prudence. In a report analysing the interim Budget, SBICAPS said, quote, “Over the last ten years, Union Budgets have consistently emphasized key themes, including a heightened emphasis on capacity expansion through infrastructure development, intensified structural reforms to enhance system efficiencies, increased focus on self-reliance through strategic import substitution and export promotion, and a steadfast commitment to fiscal targets. The Interim Budget for FY25 aligns with these trends, underscoring inclusive and sustainable growth as focal points for the future,” unquote.
Meanwhile, Paytm shares continued their downward spiral during the day, hitting another 20% lower circuit on Friday, following a 20% decline the previous day. The stock at one point stood at Rs 487. Founder Vijay Shekhar Sharma addressed concerns in an analyst call on Thursday, characterizing the Reserve Bank of India’s actions on Paytm Payments Bank as a “speed bump.” Sharma expressed confidence in navigating the challenges through strategic partnerships with other banks, foreseeing a resolution in the coming days or quarters. However, leading financial institutions such as Jefferies, JM Financial, and Axis Capital have downgraded Paytm’s outlook. Jefferies shifted its rating from ‘buy’ to ‘underperform,’ slashing the target price from Rs 1,050 to Rs 500 per share.
ON to market. Shares of the world’s largest two-wheeler manufacturer Hero MotoCorp rose 9.2% to hit an all-time high of Rs 555 after the company reported a 22% year-over-year growth in its two-wheeler sales. The company sold 433,598 units against the 356,690 units sold in the same period a year ago, according to a press release. The motorcycle sales contributed the most to the growth. The company sold 402,056 motorcycle units in January. The company’s shares in the last five days have risen 5.66%, 57.52% in the last six months, 77.34% in the last year, and 60.45% in the last five years. Elara Capital in a research note said that India’s leading carmakers reported their best-ever monthly sales in the local market.
In some more market news, DelaPlex Debuted on the bourse and opened at Rs 309, a 60% premium to the issue price of Rs 192. The shares were listed in the NSE SME category. In the grey market, the shares of the company were trading at a 75.5% premium. The grey market is an unofficial market where shares are traded illegally before listing, providing a hint to investors about the forthcoming listing of the shares. The company opened its issues at a price band of Rs 186-192. The issue was opened on January 25 and closed on January 30. The issue collected Rs 46.08 crore by offering 24,00,000 shares. It was a combination of both fresh and offer for sale.
Moving on. In January 2024, IPOs of 23 companies opened up for retail investors for subscription, both in the Mainboard and SME segments. The total amount raised by the companies was nearly Rs 3,500 crore. The Mainboard segment raised 5.6 times more than SME IPOs in January. In the Mainboard segment, five companies raised around Rs 2,950 crore. Medi Assist Healthcare raised the most. The company raised around Rs 1,170 crore. Jyoti CNC Automation stands at second by raising Rs 1,000 crore. The remaining three aggregating raised nearly Rs 1,100 crore. Divam Sharma, founder and fund manager at Green Portfolio, PMS, said that considering the data of the pipeline of DRHP filings, they are expecting the IPO activity to continue in 2024 as well.
Over to industry. Century Textiles and Industries Limited announced its fiscal third-quarter profit for the financial year 2023-24 at Rs 83.30 crore, up 855.3 percent in comparison to Rs 8.72 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 1271.94 crore, up 8.8 percent as against Rs 1168.68 crore during the third quarter of FY23. The company’s EBITDA stood at Rs178 crore. RK Dalmia, Managing Director, Century Textiles and Industries Limited, said, quote, “The company has showcased a remarkable turnaround this quarter as a testament to its resilience. Stellar performance by Pulp and Paper business achieving higher production levels and sales volumes this quarter, as a result of various strategic initiatives,” unquote.
Lastly, let’s see how the share market performed today. Benchmark indices ended on a positive note in the volatile session on Friday with Nifty around 21,850. Top gainers on the Nifty were BPCL, Power Grid Corporation, ONGC, Adani Ports and Coal India, while losers were Eicher Motors, Axis Bank, HDFC Life, HDFC Bank and HUL. Among sectors, oil & gas index up 4 percent and Information, Technology, metal, realty, power indices up 1.5-2 percent each, while bank index down 0.5 percent. BSE Midcap index rose 1 percent and Smallcap index added 0.6 percent.
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Today's Latest Business News, Finance and Share Market News at 5:30 pm on 2 February 2024 – The Indian Express
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