Traders anticipate a positive start to the first full week of the New Year, with Nifty futures indicating growth. Consumer stocks like Jubilant Foodworks and DMart show signs of revival, and auto stocks are gaining momentum. Indraprastha Gas and Mahanagar Gas rallied on hopes of increased natural gas supply. Fund managers are reconsidering their India bets amid China's economic uncertainty.
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The Reserve Bank of India (RBI) fined Citibank NA, JM Financial, and Asirvad Micro Finance for regulatory non-compliance. Citibank was penalized Rs 39 lakh for credit data breaches, JM Financial fined Rs 1.5 lakh for non-disclosure of interest rate rationale, and Asirvad Micro Finance fined Rs 6.2 lakh for failing to report borrower income and other omissions.
Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, opened in green a day after the significant market crash. While BSE Sensex was above 76,600, Nifty50 was near 23,200.
IndusInd Bank shares dropped 27% to Rs 656, erasing Rs 19,000 crore in market value due to a Rs 2,100 crore derivatives accounting discrepancy. The bank's net worth decreased by 2.4%. Concerns about governance and risk management led to investor worry, affecting other small private banks like Bandhan Bank and RBL.
Tata Sons has approached the fair trade regulator CCI for permission to acquire an additional 10% stake in Tata Play from Singapore's sovereign wealth fund Temasek. Currently, Tata Sons holds a 60% stake in the DTH operator.
Concerns over the US economy heading towards a recession are rising! A recent SBI Research report shows that the long term US GDP growth shows a declining trend. The economic uncertainty looms large, particularly noteworthy as it follows a period when the US economy demonstrated remarkable strength.
Godavari Biorefineries is investing Rs 130 crore in a new 200 KLPD corn/grain-based distillery to boost ethanol production. The facility, expected to be operational by March 2026, will provide dual-feedstock capability, enhancing flexibility and resilience against climate-related disruptions. This investment will help meet the increasing demand under India's ethanol blending program.
In November, the RBI sold $20 billion from its forex reserves to stabilize the rupee. Nomura observes that the central bank has sold $89.4 billion since October 2024, yet India's forex reserves remain adequate with a 236% adequacy ratio as of January 3, 2025. Despite a dip from a peak of 266%, the reserves remain robust.
Reliance Industries Ltd has achieved the second-best brand ranking globally in the FutureBrand Index 2024, rising 11 places from its previous position. The Index evaluates companies on brand perception and ability to align with evolving market and consumer dynamics, with Samsung taking the top spot.
India's forex reserves decline for the twelfth time in 13 weeks, falling by $4.112 billion to $640.279 billion. The Reserve Bank of India's intervention in the currency market to stabilize the Rupee has contributed to this consistent drop, though the reserves remain adequate.
India's military modernization continues in a slow and haphazard manner with a modest 9.5% hike in the defence budget. The capital expenditure for acquisitions and infrastructure saw only a 4.6% increase, while the revenue outlay for operational costs and salaries remains almost double the capital provision.