Today’s Business News: Sensex nosedives 1,688 pts amid global selloff, and more
Sensex nosedives 1,688 pts amid global selloff
Sensex tumbled 1,688 points on Friday, tracking a massive selloff in global markets as concerns over a new COVID-19 variant unnerved investors across the world.
The 30-share index closed 1,687.94 points or 2.87% lower at 57,107.15. The NSE Nifty plunged 509.80 points or 2.91% to 17,026.45.
IndusInd Bank was the top loser in the Sensex pack, followed by Maruti, Tata Steel, NTPC, Bajaj Finance, HDFC and Titan. On the other hand, Dr Reddy’s and Nestle India were among the gainers.
Rupee plunges by 37 paise against dollar on new COVID variant worries
The rupee on Friday plunged by 37 paise against the US dollar as investors turned cautious in view of massive selloffs in domestic equities and worries over a new variant of COVID-19.
The local unit settled at 74.89 a dollar, down 37 paise over its previous close of 74.52.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.34% down at 96.44.
Gold rallies ₹570, silver climbs ₹190
Gold prices in the national capital rallied ₹570 to ₹47,155 per 10 grams on Friday in line with gains in metal prices in the global markets and a fall in the rupee against the US dollar, according to HDFC Securities. The precious metal had settled at ₹46,585 per 10 gram In the previous trade.
Silver also jumped ₹190 to ₹62,145 per kg from ₹61,955 per kg in the previous trade.
In the international market, gold was trading with gains at $1,808 per ounce and silver was flat at $23.70 per ounce.
Bitcoin plunges as coronavirus variant sees riskier assets dumped
Bitcoin tumbled around 8% on Friday after the discovery of a new, potentially vaccine-resistant coronavirus variant saw investors dump riskier assets for the perceived safety of bonds, the yen and the dollar.
Bitcoin, the largest digital currency, fell as much as 7.8% to $54,377, its lowest since October 12.
The variant, detected in South Africa, Botswana and Hong Kong, has an unusual combination of mutations and may be able to evade immune responses or make it more transmissible.
Bihar, Jharkhand, UP emerge as poorest states in India: Niti Aayog
Bihar, Jharkhand and Uttar Pradesh have emerged as the poorest states in India, according to Niti Aayog’s Multidimensional Poverty Index (MPI).
As per the index, 51.91% population of Bihar is poor, followed by 42.16% in Jharkhand, 37.79% in Uttar Pradesh.
Kerala at 0.71%, Goa at 3.76%, Sikkim at 3.82% have registered the lowest poverty across India and are at the bottom of the index.
China Evergrande soccer stadium taken over by government
China Evergrande Group’s soccer stadium has been taken over by a government body with a view to selling it as the embattled developer seeks to cut liabilities.
Evergrande is struggling with a debt of more than $300 billion and is also planning to sell money-losing Guangzhou Football Club.
Construction of the $1.86 billion Guangzhou Evergrande Football Stadium began in April last year for completion by the end of 2022, when it was set to be the world’s largest soccer venue by capacity. However, construction halted due to lack of capital.
Tata in talks to set up $300 mln semiconductor assembly unit
India’s Tata group is in talks with three states to invest up to $300 million to set up a semiconductor assembly and test unit, as part of the conglomerate’s push into high-tech manufacturing.
Tata is talking to the southern states of Tamil Nadu, Karnataka and Telangana and scouting for land for the semiconductor assembly and test plant.
China asks Didi to delist from U.S. on data security fears
Chinese regulators have asked ride hailing giant Didi Global Inc to delist from the New York Stock Exchange citing concerns about data security.
China’s tech giants are under intense scrutiny over anti-monopolistic behavior and handling of their vast consumer data.
Climate activists target Amazon depots in Britain on ‘Black Friday’
Climate activists targetted 15 Amazon depots across Britain on “Black Friday” as part of a protest against the e-commerce giant, which the Extinction Rebellion group said epitomised an obsessive overconsumption.
“Black Friday epitomises an obsession with overconsumption that is not consistent with a liveable planet,” the group said.
“Amazon and companies like it have capitalised on our desire for convenience and stoked rampant consumerism at the expense of the natural world.”
Italy’s antitrust fines Google, Apple for commercial use of data
Italy’s antitrust regulator has fined Google and Apple $11.23 million each for “aggressive practices” linked to the commercial use of user data.
The two tech companies did not provide “clear and immediate information” on how they collect and use the data of their users, the authority said in statement.
China issues draft rules to govern online advertising
China’s market regulator proposed new rules on Friday to monitor the internet advertising sector and ensure that advertisements should not affect users’ normal internet use nor mislead them.
The proposed rules are open to public comment till December 25, China’s State Administration for Market Regulation said on its website.
Investors’ wealth tumble over ₹4.48 lakh cr as markets plunge
Investors’ wealth tumbled ₹4.48 lakh crore during day trade on Friday with the BSE benchmark plummeting 1,488 points to 57,307.08.
The market capitalization of BSE-listed tanked ₹4,48,223.31 crore to ₹2,61,18,730.57 crore during the day.
Tata Steel, HDFC, IndusInd Bank and Maruti were the biggest laggards, tanking up to 4.2% . The BSE midcap and smallcap indices were trading up to 2% lower.
Govt can consider phased manufacturing plan for AC industry: Jain
The government is willing to look at extending a phased manufacturing plan (PMP) for the AC industry to check imports and increase local value addition and employment, Anurag Jain, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) said while responding to suggestions made by some of the CEOs present in a roundtable on November 25.
He also said that DPIIT will now ensure that all the investments coming up under the production-linked incentive (PLI) for white goods get approvals from the central and state government authorities on fast track basis so that targets set under the PLI are achieved timely.
Gold gains as new COVID-19 variant lifts safe-haven demand
Gold prices rose as the spread of a newly identified coronavirus variant boosted the metal’s safe-haven appeal.
Spot gold rose 0.6% to $1,798.20 per ounce and U.S. gold futures advanced 0.8% to $1,798.30.
The variant spreading in South Africa may evade immune responses and has prompted Britain and a growing number of other countries to hurriedly introduce travel restrictions on the African nation.
India needs national disaster pool to hedge natural disaster risks: SBI
As the incidents and severity of natural calamities are rising by the year, a SBI report has called for creating a national disaster pool to hedge natural disaster risk.
Since 2001, a total of 100 crore people have been impacted and nearly 83,000 lost lives due to these disasters. If the losses are adjusted with current prices, it comes out to be a staggering ₹13 lakh crore or 6% of the GDP, State Bank of India (SBI) said in a note.
Tega Industries sets IPO price band at ₹443-453/share
Tega Industries, manufacturer of consumables for the mining industry has fixed a price band of ₹443-453 a share for its ₹619-crore initial share-sale.
The three-day initial public offering (IPO) set to open on December 1 and conclude on December 3, is purely an offer of sale 1,36,69,478 equity shares by promoters and a existing shareholder.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors and 35% for retail investors.
Energy Exchange shareholders approve bonus issue
The Indian Energy Exchange (IEX) has received shareholders’ approval for the issue of bonus shares and increase in authorised share capital. The board approved an issue of bonus shares wherein shareholders will get two bonus shares for every one share held by them.
The bonus shares will be issued to “eligible members of the company in the proportion of two new fully paid-up equity share of rupee one each for every one existing fully paid-up equity shares of rupee one each held by them, by capitalising a sum not exceeding ₹59,91,13,022 out of the company’s free reserves and capital redemption reserve as on March 31, 2021,” the company said in a filing.
Tarsons Products shares list with nearly 6% gain
Shares of life sciences company Tarsons Products listed with a premium of nearly 6% against its issue price of ₹662.
The stock listed at ₹700, a 5.74% gain against the issue price on BSE and further jumped 22.05% to ₹808. On NSE, it listed with a premium of 3.02% at ₹682.
The ₹1,023.84-crore IPO initial public offer of Tarsons Products Limited received 77.49 times subscription earlier this month. It had a price range of ₹635-662 per share.
Rupee slips to 74.68 against US dollar
The Indian rupee fell16 paise to 74.68 against the US dollar in opening trade on negative domestic equity market and a firm American dollar.
The rupee opened on a weak note at 74.60 and lost further ground to touch 74.68 against the American dollar. On Thursday, the rupee had closed at 74.52.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.05% to 96.72.
Godrej to develop 1.5 million sq ft housing project in Bengaluru
Realty firm Godrej Properties has bought a 16-acre land parcel in Bengaluru to develop about 1.5 million square feet saleable area comprimising primarily residential properties as it looks to expand business in major cities.
While the company did not disclose the deal value or the name of the seller, it said the 16 acres land is located at micro-market of Sarjapur.
Markets update | Sensex, Nifty open lower
Indian equity benchmark indices, Sensex and Nifty opened on a negative note amid weak Asian markets. At 9:16 IST, the Sensex was down 722.43 points or 1.23% at 58,072.66 and the Nifty was down 233.90 points or 1.28% at 17,312.40.
Asian stocks fell the most in two months as detection of a new and possibly vaccine-resistant coronavirus variant sent investors rushing towards safe havens.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3%, and Japan’s Nikkei plunged 2.5%. U.S. crude oil futures fell nearly 2% as well amid fresh demand fears.
Scientists said the variant, detected in South Africa, may be able to evade immune responses and according to the British authorities, it is the most significant variant to date which could even resist vaccines.
Oil falls on concerns of rising surplus
Oil prices fell more than 1% on concerns that a global supply surplus could swell in the first quarter after a coordinated release of crude reserves by major consumers.
Brent crude futures plunged 1.2% to $81.26 a barrel and U.S. West Texas Intermediate (WTI) crude was down 1.7%, to $77.04 a barrel.
The U.S.’s plan to release millions of barrels of oil from strategic reserves in coordination with other large consuming nations is likely to swell supplies in coming months, according to an OPEC source.
Reliance Industries and Saudi Aramco have called off a deal for the state oil giant to buy a stake in the oil-to-chemicals business of the Indian conglomerate on valuation concerns. The Asian Development Bank (ADB) has approved a $1.5 billion loan for the Indian government to purchase COVID-19 vaccines.
—- Edited by John Xavier
(With inputs from Reuters, PTI and other news agencies.)