The rupee dropped to an all-time low of 85.21 against the US dollar for the sixth consecutive session due to rising US bond yields and strong demand for the dollar from importers. The RBI intervened to limit losses, but underlying issues such as tepid capital flows and a widening trade deficit persist.
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India's IPO market is booming, exceeding its fundraising record this year. Experts predict the surge will continue into 2025, fueled by strong economic growth and investor enthusiasm. Vishal Mega Mart's successful debut exemplifies this trend. While IPOs dominate, mergers and acquisitions are also gaining momentum, particularly in infrastructure, healthcare, and consumer sectors, attracting significant global investment.
Murata Manufacturing Co. is considering shifting some production to India due to growing demand and business continuity. They plan to begin capacitor packaging and distribution there by fiscal 2026, addressing infrastructure limitations while leveraging local workforce benefits and future incentives.
Standard Glass Lining Technology Ltd's IPO saw a remarkable 182.57-times subscription with heavy demand from QIBs, non-institutional investors, and retail individual investors. The IPO aimed to raise funds for debt repayment, investment in its subsidiary, strategic investments, and machinery purchases. The shares will be listed on BSE and NSE.
The Indian rupee fell to a record low against the US dollar, crossing the 85 mark for the first time. This drop was influenced by the US Federal Reserve's indication of fewer-than-expected future rate cuts. While the decline makes imports costlier and benefits NRI remittances, its impact on export competitiveness is debated.
Industry leaders foresee a significant global trade realignment following the 27% reciprocal tariffs announced by President Trump. India's impact is expected to be marginal, with minimal disruption to export competitiveness. Enhanced export efficiency and value addition are advised for Indian industries. A well-negotiated US-India trade agreement is anticipated to bolster future collaboration.
The IT industry has undergone notable leadership changes over the past two years, with significant shifts at companies like Wipro, Infosys, and Tech Mahindra. Key executives have been replaced, often with internal promotions. Succession planning strategies and new CEO hires have influenced these transitions.
India's tech sector is projected to become a $300-billion industry in the 2025-26 financial year, with a 6% growth rate. The sector's significant contribution to India's GDP includes a notable increase in tech exports. Employment in the sector saw substantial growth, adding 126,000 jobs in 2024-25, highlighting its critical role in the economy.
Securities and Exchange Board of India (Sebi) has issued an administrative warning to HDFC Bank for not complying with certain regulatory guidelines for custody activities. The bank stated it would address and rectify the highlighted lapses. A similar warning for regulatory non-compliance related to merchant banking was also issued to HDFC Bank in December 2024.
Prime Minister Giorgia Meloni sees no threat to Italy from Elon Musk's company investments, emphasizing the evaluation of each investment through a national interest lens. Musk has praised Meloni, calling her honest and truthful. They have discussed opportunities in space and AI sectors, with Italy welcoming foreign space companies under a new regulatory framework.
Stock market today: The NSE Nifty 50 declined 0.04% to 24,610.05 points, whilst the BSE Sensex remained unchanged at 81,510.05. Following three consecutive weeks of gains until Friday, the Nifty 50 has maintained a tight trading range of under 170 points.