The Reserve Bank of India kept its interest rates unchanged at 6.50% following its August meeting, due to persistent high inflation driven by increased food prices. Economists expect the first rate cut next quarter, as the central bank remains cautious about easing monetary policy amidst strong economic growth.
In the first quarter earnings season, 115 companies announced results, including Maruti, M&M, Coal India, Adani Power, Tata Steel, Ambuja, and Bank of Baroda. M&M and Maruti expected mixed revenue and profit changes, while Tata Steel's profit was predicted to rise notably amid a revenue drop. Several others also reported their quarterly performance.
OpenAI introduced an advanced voice mode for a few ChatGPT Plus users, enabling real-time voice interactions with interruption capabilities. Initially delayed from June to July, the feature enhances the AI's ability to detect and decline certain content while improving user experience and preparing the infrastructure for broader use.
Hero Motocorp, Oberoi Realty, and 14 other companies had locked August 1 as the record date for determining shareholders eligible for dividend payments. Investors had to purchase shares by July 31 to qualify. The list includes companies like Aditya Birla Sun Life AMC and Bayer CropScience, which offered substantial dividends per share, drawing investor attention.
Young investors preferred mutual funds to achieve long-term goals and leveraged a core and satellite strategy for diversification. The core portfolio focused on stability with large-cap investments, while the satellite portion involved higher-risk funds aiming for higher returns.
India's 10-year benchmark yield declined to 6.932% as domestic banks showed interest following the RBI's plan to tighten liquidity coverage ratio (LCR) guidelines. The rules aim to increase the run-off factor for retail deposits, which will affect banking liquidity by 12% to 18%, boosting demand for government bonds.
The Securities and Exchange Board of India proposed relaxing disclosure norms for large foreign portfolio investors from neighboring countries. Sebi recommended setting a threshold for disclosure requirements. If entities from LBCs or non-LBCs hold more than 50% or 67% of the assets, FPIs will be exempt from providing granular details.
Tata Group's Trent and Bharat Electronics were poised to join the Nifty 50 index during the September reshuffle, as predicted by IDBI Capital. Trent's shares increased 84% and Bharat Electronics rose 68% this year. LTI Mindtree and Divi's Laboratories were likely to be excluded. The index review is based on semi-annual market data, effective from September 30.
Authorities in Wayanad, Kerala, started collecting data to identify missing persons after a massive landslide. Rescue operations resumed Wednesday to locate those trapped. Forty-five relief camps are housing 3,069 people. The tragedy resulted in 123 deaths and 186 injuries, with fears of more people trapped under debris.
Adani Energy Solutions launched a $1 billion qualified institutional placement, comprising a $700 million base deal and an option for an additional $300 million. Shares are priced at ₹976, a 13.24% discount. The funds will be used for subsidiaries' capital expenditure, smart meters, debt repayment, and general corporate purposes. Key investors include international and domestic funds.
Microsoft revealed plans to boost investment in AI infrastructure despite a slowdown in cloud business growth, leading to a dip in shares. Capital expenditure rose to $19 billion for the fiscal fourth quarter, mainly driven by AI and cloud projects. Azure's growth lagged behind estimates, though AI services significantly boosted revenue.
Sebi chief Madhabi Puri Buch reported annual household losses of about ₹60,000 crore in derivatives trades, suggesting these funds could be better utilized in IPOs and mutual funds. She emphasized regulating the expanding futures and options market and maintaining separate KYC systems to avoid contamination issues like those that affected Paytm.
SEBI proposed raising the minimum contract size for index derivatives and limiting weekly index product offerings to restrict risky speculation among retail investors. The regulator also plans to mandate upfront premium collection and increase margins on options. These measures aim to reduce speculative trading and bring down derivatives market turnover.
The S&P 500 and Nasdaq closed lower due to weak chip stocks and major tech shares, while the Dow saw modest gains. Microsoft and NVIDIA shares dropped ahead of key tech earnings. Financials and energy outperformed as market expectations grew for a Federal Reserve rate cut this year owing to moderating inflation signs.
The Democratic National Committee confirmed Vice President Kamala Harris as the only candidate for the party's presidential nomination. After President Joe Biden exited the race, Harris will be affirmed through an online vote by convention delegates. She is set to compete against former President Donald Trump in the upcoming general election.
BJP's Anurag Thakur criticized Congress leader Rahul Gandhi in Parliament, calling him an 'accidental Hindu' with limited Mahabharata knowledge. Thakur listed historical flaws attributed to the Congress party and praised the Modi government for economic advancements. Gandhi earlier criticized the Union Budget, alleging it created an atmosphere of fear and neglect among farmers, workers, and youth.
The NBS composite PMI, which includes manufacturing and services, came in at 50.2 in June.
On Wednesday, oil futures bounced back from seven-week lows amid heightened geopolitical tensions following Israel's response to a Hezbollah attack. Brent crude and U.S. West Texas Intermediate experienced slight gains. Concerns over China's demand and expectations of OPEC+ adhering to current production cuts continued to affect prices.
Rahul Gandhi met Karnataka's Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar to stress unity and party strength. The discussions aimed to resolve factionalism and investigate why Congress secured only nine out of 28 seats in the recent Lok Sabha elections, despite earlier expectations.
Happy Wednesday! The growing trend of companies bringing outsourced technology work back in-house is impacting IT firms. This and more in today’s ETtech Morning Dispatch.
Tuesday's trading ended with negligible changes after a volatile session, erasing gains made earlier. Analysts predict more consolidation, targeting 25,100 for the Nifty index. Globally, markets showed mixed results. The Rupee appreciated slightly while major companies announced their Q1 results. Foreign investors sold shares worth Rs 5,598 crore.
Honda Motor Co. risks being left behind in the rapidly growing electric two-wheeler market, especially in India. Local companies are gaining ground while Honda, historically dominant with its Super Cub motorbike, has been slow to release electric models. This could undermine its market leadership in developing countries.
