Business News Highlights: Key Updates from the Stock Market and Economy
Hello and welcome to ABP Live’s Business LIVE blog. This space is dedicated to bringing you the latest breaking news and updates from the stock market, economy, and corporate world. Today, we delve into the recent performance of equity benchmarks, inflation data, and upcoming IPOs that are set to make waves in the market.
Stock Market Performance
On Wednesday, the two key equity benchmarks in India, the S&P BSE Sensex and Nifty50, closed in the green, reflecting a positive sentiment among investors despite mixed global trends. The Sensex surged by 246 points, closing at 67,467, while the Nifty50 settled at 20,070, up by 77 points. This upward movement can be attributed to better-than-expected domestic retail inflation data for August, which provided a much-needed boost to investor confidence.
Inflation Insights
The U.S. Labor Department recently reported that the consumer price index (CPI) rose by 3.7% in August compared to the previous year. Notably, core inflation, which excludes the volatile food and energy sectors, increased by 4.3%. This figure marks a decrease from July’s 4.7% and represents the smallest rise in nearly two years. However, it remains significantly above the Federal Reserve’s target inflation rate of 2%. Analysts suggest that the uptick in August inflation can be largely attributed to the recent surge in petrol prices, driven by efforts from Saudi Arabia and Russia to elevate oil prices towards the $100 per barrel mark. As a result, Brent crude has reached a 10-month high, currently hovering around $92.50.
Market Reactions
In response to the inflation data, financial markets exhibited caution. The yield on the interest rate-sensitive two-year Treasury remained nearly unchanged, indicating a wait-and-see approach among investors. Additionally, the S&P 500 stock index experienced a slight decline of 0.2%, reflecting the market’s apprehension regarding future economic conditions.
European Central Bank’s Monetary Policy
Looking across the Atlantic, the European Central Bank (ECB) is set to announce its decision from the monetary policy meeting on Thursday, September 14. This follows a quarter-point interest rate hike in July, which brought rates to their highest level in 23 years. The ECB has signaled its readiness to take further action to combat rising inflation amid a deteriorating economic environment, suggesting that additional interest rate increases may be on the horizon as the central bank grapples with global inflationary pressures.
Upcoming IPOs
In the realm of initial public offerings (IPOs), two significant launches are on the horizon. Zaggle Prepaid Ocean Services is set to launch its IPO on September 14, with a subscription window open until September 18. The price band for the IPO is set between Rs 156 to Rs 164 per share, with a lot size of 90 shares. The total issue size amounts to Rs 563.38 crores, comprising a fresh issue worth Rs 392 crore and an offer for sale (OFS) of Rs 171.38 crore. The funds raised will be allocated for customer acquisition, product development, corporate expenses, and loan repayment.
Similarly, Samhi Hotels is also gearing up for its IPO, valued at Rs 1,370.10 crores, which will open for subscription on September 14 and run until September 18. The company operates a portfolio of 4,801 keys across 31 hotels located in 14 major urban consumption hubs in India as of March 31, 2023. The price band for this issue is set at Rs 119 to Rs 126 per share.
Conclusion
As we navigate through these dynamic market conditions, staying informed about the latest developments is crucial for investors and stakeholders alike. The interplay between inflation data, central bank policies, and upcoming IPOs will undoubtedly shape the economic landscape in the coming weeks. Stay tuned to ABP Live for continuous updates on these and other significant business news.