Business News Live: Bangladesh in national crisis amid robust GDP growth

Markets regulator Sebi on Monday proposed a uniform timeline to ensure timely credit and trading of bonus shares in a bid to streamline the process to enable T+2 trading of such shares after the record date.

In its consultation paper, the Securities and Exchange Board of India (Sebi) proposed that bonus issue of shares will be available for trading within two days (T+2) from the record date. Here, T stands for the record date.
 

CK Birla group firm Orient Cement Ltd on Monday reported a marginal decline in its net profit to Rs 36.71 crore for the first quarter ended in June 2024.

The company reported a net profit of Rs 37.03 crore for the April-June quarter a year ago, according to a regulator filing from Orient Cement Ltd (OCL).

State-owned Oil and Natural Gas Corporation (ONGC) on Monday reported a 15 per cent drop in its June quarter net profit on higher exploration cost write-off.

Its net profit of Rs 8,938.10 crore in April-June - the first quarter of the current 2024-25 fiscal year - compared to Rs 10,526.78 crore earnings in the same period of last year, according to a stock exchange filing by the company.

Tribhovandas Bhimji Zaveri (TBZ) (TBZL.NS) announced a significant 50 per cent increase in first-quarter profit on Monday, driven by heightened demand for its gold jewellery despite rising gold prices.

For the quarter ending in June, TBZ reported a consolidated net profit of Rs 17.05 crore, compared to the previous year. Sales also saw a growth of 4.5 per cent, reaching Rs 596 crore.

Click here to read the full report.

The Indian stock market experienced a severe crash today, driven primarily by turmoil in global markets. Japan's Nikkei 225 led the downturn, plummeting by 13.47 per cent, marking its largest single-day loss in over 36 years. This historic decline sent shockwaves across Asian markets, including India. The Bombay Stock Exchange's Sensex dropped by 2,222 points, or 2.75 per cent, to settle at 78,758, while the NSE's Nifty 50 fell by 661 points, or 2.68 per cent, to end at 24,056. The broad-based sell-off was a direct consequence of the ripple effects from Japan's market crash.

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Bangladesh is grappling with its worst political violence in decades, resulting in an almost staggering $10 billion setback to its economy due to shutdowns, curfews and instability, according to experts and economists. This upheaval has been ignited by a student-led protest over a controversial government job quota system and has sent shockwaves through the nation's somewhat stabilising economy. The violence and ensuing unrest have severely disrupted business operations, caused widespread economic disarray, and halted growth in several key sectors.

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India’s automotive industry has seen a rising trend for features to be offered in vehicles. Seeing the consumer demand in the market, India’s leading auto manufacturers have started providing tons of features in their vehicles, whether these are safety features or convenience.

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Adani Energy Solutions Limited (AESL) announced on Monday that it has raised Rs 8,373.10 crore through a qualified institutions placement (QIP) to enhance its capacity for evacuating electricity from renewable sources.

This marks AESL's first equity raise in the capital market since its demerger and listing from Adani Enterprises Limited (AEL) in July 2015, as stated in an exchange filing.

Read the full story here. 

The Rs 6,145-crore initial public offer of electric two-wheeler company Ola Electric Mobility got fully subscribed on the second day of bidding on Monday, driven by demand from retail investors and non-institutional investors.

The initial share sale received bids for 49,43,63,610 shares against 46,51,59,451 shares on offer, translating into 1.06 times subscription, according to the NSE data.

Clean energy company Sunkind Energy on Monday said it has secured new solar power projects totalling around 20 megawatts (MW).

The contracts have been awarded by Nahar Group and Jindal Group, the company said in a statement.

Honda Motor Company is expected to announce a consolidated operating profit exceeding 450 billion yen (approximately $3.17 billion) for the first quarter of the fiscal year. According to a report by the Nikkei newspaper it is driven by robust sales of hybrid vehicles in the US. The projected earnings represent a significant boost for Japan’s second-largest auto manufacturer. This boost in profit reflects a strong demand for its hybrid models in key markets. This forecast aligns with broader trends of increasing consumer interest in fuel-efficient vehicles amid rising environmental awareness.

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“In view of the emerging situation in Bangladesh, we have cancelled the scheduled operation of our flights to and from Dhaka with immediate effect. We are continuously monitoring the situation and are extending support to our passengers with confirmed bookings for travel to and from Dhaka with a one-time waiver on rescheduling and cancellation charges. Safety of our guests and crew remains our foremost priority. For more information, please call our 24/7 Contact Centre at 011-69329333 / 011-69329999,” Air India posted on X.

 Ola Electric’s Rs 6,166 crore Initial Public Offering (IPO) was fully subscribed to on the second day of bids amid a strong retreat in markets today. With this, the retail portion of the IPO is now subscribed by over 2.87 times and the employee portion has been booked by approximately nine times of the available quota.

Read the full story here. 

Telecom operator Bharti Airtel reported more than 2.5 times jump in its consolidated profit to Rs 4,160 crore in the first quarter ended on June 30, 2024, compared to the year-ago period. The company posted a profit of Rs 1,612.5 crore in the same period a year ago. 
 

Shares of Titan on Monday dropped nearly 3 per cent after the company reported a 5.42 per cent fall in its consolidated net profit to Rs 715 crore for the quarter ended in June 2024. The stock fell by 2.57 per cent to settle at Rs 3,374.20 on the BSE. During the day, it dropped 7.56 per cent to Rs 3,201.05. At the NSE, shares of the firm declined 2.35 per cent to Rs 3,380.85.
 

Stock markets crashed nearly 3 per cent on Monday due to across-the-board selling in banking, IT, metal and oil & gas shares following a global equity rout, wiping out more than Rs 15 lakh crore of investor money in a single day.

The 30-share BSE Sensex plummeted 2,222.55 points or 2.74 per cent to settle at over a month's low of 78,759.40, marking its worst single-day retreat since June 4, 2024. During the day, the index tanked 2,686.09 points or 3.31 per cent to 78,295.86.

The rupee slumped 31 paise to settle at an all-time low of 84.03 (provisional) against the US dollar on Monday, following a sell-off in broader global markets amid rising geopolitical tensions in the Middle East and worries over recession in the US.

Forex traders said the downfall in the domestic unit came on the heels of a sharp downturn in the Indian equity markets and significant foreign fund outflows.

Again it's unemployment, job quota, and the job that has made the perfect recipe for national crisis at least in Bangladesh. The country has been ruled by Sheikh Hasina for the last 15 years.  The matter escalated to the extent that Hasina had to tender her resignation on Monday. 

Read the full story here. 

The domestic market indices witnessed immense selling pressure on Monday amid a massive rout in global markets. The crash was led by Japan’s Nikkei 225 which ended 13.47 per cent lower, the biggest single-day loss in over 36 years. 

The tremor of the Nikkei’s crash was felt across Asian markets including India where the Bombay Stock Exchange’s 30-share Sensex lost 2,223 points or 2.75 per cent of market capitalisation to settle at 78,758. Whereas, the NSE’s Nifty 50 faced 661 points or 2.68 per cent crash to end at 24,056. 

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The EV industry for the two-wheeler industry has seen a surge in retail sales. Since the Electric Mobility Promotion Scheme 2024 (EMPS) has been extended in India, it has also anticipated a rise in electric two-wheeler sales in India. The electric two-wheeler segment recorded total retail sales of  1,06,949 units in July 2024, recording a 96 per cent year-on-year growth and a noticeable growth of 34 per cent on a month-on-month basis. 

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Godrej Properties, a prominent real estate firm, reported a 20 per cent rise in net debt for the June quarter, reaching Rs 7,432 crore. This increase is primarily attributed to higher capital expenditure on land acquisitions and construction activities.

According to the company's investor presentation, the net debt stood at Rs 7,432 crore at the end of the first quarter of this fiscal year, up from Rs 6,198 crore as of March 31, 2024. The debt-equity ratio also increased to 0.71:1 from 0.62:1 during this period.

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Google Pay, Walmart-backed PhonePe, and Amazon Pay are among five major payment firms seeking to join the Reserve Bank of India's (RBI) digital currency pilot, which aims to facilitate transactions via the e-rupee, three sources familiar with the discussions told Reuters . 

Capital markets regulator Sebi has amended mutual fund norms requiring Asset Management Companies (AMCs) to put in place an institutional mechanism to identify and deter front-running and insider trading in securities.

Additionally, the management of AMCs will be responsible for ensuring the effectiveness of the institutional mechanism. Also, the regulator has directed AMCs to have a whistle-blower mechanism.

Despite several challenges, India’s automobile retail sector saw a year-on-year (YoY) growth of 13.84 per cent, with almost all categories witnessing an increase, says FADA data released on Monday.

Two-wheelers (2W) grew by 17 per cent, three-wheelers (3W) by 13 per cent, passenger vehicles (PV) by 10 per cent and commercial vehicles (CV) by 6 per cent. Tractors, however, continued to underperform, falling by 12 per cent YoY.

Investors witnessed a massive erosion of wealth amounting to Rs 9.51 lakh crore on Monday morning as the Indian equity markets experienced a significant downturn. The benchmark Sensex dropped more than 2,600 points, reflecting a broader global sell-off that rattled market sentiment worldwide.

The 30-share BSE benchmark index fell sharply by 2,686 points to 78,295. The dramatic decline led to a substantial reduction in the market capitalisation of BSE-listed companies, which fell by Rs 9,51,771.37 crore to Rs 4,47,65,174.76 crore (approximately $5.35 trillion).

Byju Raveendran has filed a caveat with the Supreme Court in response to a recent order by the National Company Law Appellate Tribunal (NCLAT). The move comes as the edtech giant faces scrutiny from its US-based creditor, Glas Trust Company LLC.

The caveat, submitted on August 3, was filed a day after the NCLAT overturned insolvency proceedings against Byju's and restored its board. The tribunal had approved a settlement with the Board of Control for Cricket in India (BCCI) regarding dues amounting to Rs 158.9 crore, which Glas Trust has contested. The US creditor alleged that the funds used for the settlement were part of a “round-tripping” scheme, involving questionable financial practices.

The passenger air traffic is set to grow between 8-14 per cent in FY25, despite regular Aviation Turbine Fuel ( ATF) increase in the last one year having left an adverse impact on the aviation sector. Kinjal Shah, Senior Vice President & Co-Group Head - Corporate Ratings, ICRA Limited told Republic Business that airlines have been witnessing healthy yields resulting in good profitability.

Amid a healthy growth,  central government has set a uniform 5 per cent IGST on imported aircraft parts to the maintenance, repair and overhaul (MRO) industry, which is seen as a positive step for the aviation sector. “The passenger growth as well as revenue per available seat are areas where airlines are faring quite well,” added Shah.

The rupee fell to a record low on Monday, reaching 83.82 against the US dollar, as worries over a potential slowdown in the US economy spurred significant outflows from local equities. By 11:20 am, the rupee was quoted at 83.8125, down approximately 0.1 per cent from Friday’s close of 83.75.

The benchmark Indian equity indices, the BSE Sensex and the Nifty 50, both experienced sharp declines, with each falling about 3 per cent. This drop mirrored the broader global market sell-off triggered by disappointing US economic data.

Concerns over a looming recession in the United States have sent shock
waves through global financial markets, leading to a significant sell-off in equities worldwide. The root of these fears lies in a series of disconcerting economic indicators, particularly the rising  US unemployment rate and a notable slowdown in hiring. These developments have raised alarm bells about the health of the  US economy, potentially heralding a broader economic downturn with far-reaching consequences.

The US Labour Department's recent employment report has been a focal point for economists and investors alike. The report revealed a jump in the unemployment rate to 4.3 per cent in July, up from 4.1 per cent in June, marking the highest level since September 2021. The increase represents the fourth consecutive monthly rise in unemployment, a trend that has not gone unnoticed by market participants. The steady climb from a five-decade low of 3.4 per cent in April 2023 to the current level has amplified concerns that the labor market, a critical component of economic health, may be deteriorating.

The Indian equity benchmarks extended declines in late morning deals on fears that US economy may enter a phase of recession that spooked markets globally. The Sensex fell 3 per cent or 2,67 points to 78,511 and Nifty 50 index declined 2.92 per cent or 721 points to 23,996.

Tata Motors, ONGC, Hindalco, Infosys, Tata Steel, State Bank of India, Shriram Finance and Adani Ports were among the top losers, falling between 4-6 per cent.

On the flipside, Britannia, Hindustan Unilever, Tata Consumer Products and Nestle India were among the notable gainers.

Tata Group-owned Titan Company saw its shares fall 4.1% on Monday following a disappointing first-quarter profit report. The company's profit missed analysts' expectations due to weaker demand in its core jewellery segment, impacted by rising gold prices. Titan was the top loser on the Nifty 50 index, which itself was down 1.68%.

Titan reported a 5% decline in consolidated profit to Rs 715 crore, falling short of analysts' forecast of Rs 765 crore, as per LSEG data. The company's revenue growth slowed to its lowest pace in four quarters, largely due to surging gold prices deterring consumer demand.

Indian equity markets witnessed a major downfall on Monday, with the Sensex plunging by as much as 2,401 points and the Nifty 50 index dropping 490 points to an intraday low of 24,228 mirroring steep losses seen across global markets on the back of growing concerns about a potential US recession and escalating geopolitical tensions between Israel and Iran. 

As of 9:37 am, the Sensex dropped 1,563 points or 1.91 per cent to 79,416 and Nifty 50 index tumbled 478 points or 1.94 per cent to 24,239.

The global sell-off spread to Asian emerging equities as investors sought refuge in safer assets, such as bonds, amidst fears that the US Federal Reserve may struggle to achieve a soft landing for the economy. Bleak US economic data heightened worries, prompting speculation about the necessity of more aggressive interest rate cuts to stave off a slowdown.

Despite several challenges, India’s automobile retail sector saw a year-on-year (YoY) growth of 13.84 per cent, with almost all categories witnessing an increase, says FADA data released on Monday. 

India is preparing to introduce stringent new advertising regulations that will impact major liquor brands including Carlsberg, Pernod Ricard, and Diageo. The forthcoming rules will ban not only direct liquor advertisements but also surrogate ads and sponsorships of events, reshaping how these companies market their products in the country

Bitcoin and ether tumbled to multi-month lows on Monday as concerns over a potential US recession and weak economic data triggered a rush towards safe-haven assets. Bitcoin dropped to $53,091, its lowest level since late February, while ether hit its weakest since mid-January, falling 16 per cent to $2,300.

The cryptocurrency market had experienced a positive boost earlier this year after the US Securities and Exchange Commission approved exchange-traded funds (ETFs) tracking the spot prices of bitcoin and ether. However, recent declines in both cryptocurrencies reflect broader market jitters. Investors are increasingly concerned about a looming US recession, exacerbated by rising geopolitical tensions. Bitcoin has declined nearly 20 per cent from its March 2024 high, illustrating its vulnerability as a risk asset.

Lenders to Go First airline have opted to liquidate the company's assets after rejecting bids from potential suitors attempting to revive the bankrupt carrier. The decision marks the end of a tumultuous period for the airline, which filed for bankruptcy in May last year.

The Committee of Creditors (CoC) voted in favour of liquidation, according to two banking sources involved in the process. The lenders deemed liquidation as "the best way forward," citing the impracticality of investing more funds to cover the ongoing costs associated with the insolvency process. One of the bankers emphasized, "It makes no sense to keep pumping in more money."

China's services sector saw accelerated growth in July, driven by an increase in new orders, according to the latest Caixin/S&P Global services purchasing managers' index (PMI) released on Monday. The PMI rose to 52.1 from 51.2 in June, marking the 19th consecutive month of expansion. A PMI reading above 50 indicates growth, while below 50 suggests contraction.

The Caixin/S&P Global services PMI predominantly reflects the performance of private and export-oriented companies. Despite the growth, the index showed that overseas demand slowed to its weakest pace in 11 months, highlighting ongoing challenges in China's economic landscape.

In contrast, the official services PMI indicated a stagnation in the sector, with declines noted in retail sales, capital market services, and real estate service industries. This divergence underscores the complex economic environment China is navigating, as the world's second-largest economy grew more slowly than expected in the second quarter. The nation also faces deflationary pressures and a prolonged property slump, with retail sales growth in June hitting its lowest rate since early 2023.
 

Japanese stocks fell sharply on Monday, reaching their lowest levels since early January. The Nikkei share average dropped 15 per cent over three sessions, marking its steepest three-day decline since 2011. The selloff, exacerbated by a broader global market downturn, reflects concerns about investments funded by a depreciating yen being unwound.

The Nikkei fell as much as 7 per cent to 33,369.37 during the session, its lowest since January, and was down 5.6 per cent at 33,912.29 as of 1257 GMT. Meanwhile, the broader Topix index declined 6.6 per cent to 2,370.18.

The Indian equity markets are set for a sharp drop on Monday as indicated by Nifty futures traded on GIFT Nifty. Nifty futures declined by 1.13 per cent, or 275 points, to 24,342, reflecting widespread concerns about a potential recession in the United States and the consequent turmoil in global markets.

In Asia, Japan's Nikkei 225 plummeted 5.65 per cent hitting its lowest level since early January. Hong Kong's Hang Seng index fell 1.3 per cent, South Korea's KOSPI dropped 5 per cent, Australia's S&P ASX 200 declined 3 per cent, and Singapore's Straits Times fell 0.73 per cent. The downturn in Japanese stocks was particularly notable, driven by fears that investments funded by the previously low-cost yen were being liquidated amid broader market distress.

Gautam 0Adani, chairman of the Adani Group is planning  to step down at the age of 70, transitioning control of his conglomerate to his sons and cousins by the early 2030s, as reported in a Bloomberg News interview published Monday.

Gift Nifty down 1.36 at 24,378.5