Top business news of the day | Sensex crashes over 1000 points; Paytm shares tumble nearly 14%; Oil prices fall to 7-week low, and more

Top news of the day from the world of business, finance and economy

Centre’s FY22 fiscal deficit may be better at 6.6%: Fitch

The Centre could better its fiscal deficit at 6.6% of GDP in this financial year on stronger-than-expected revenue buoyancy, even if the budgeted disinvestment target is not met, Fitch Ratings has said.

The international rating agency had last week kept the sovereign rating unchanged at ‘BBB-‘ with a negative outlook, and said that the risks to India’s medium-term growth outlook are narrowing with rapid economic recovery from the pandemic and easing financial sector pressures.

Need to increase awareness on commodity derivatives market: Sebi

There is an urgent need to increase awareness about commodity derivatives market among investors as the level of financial inclusion in the segment is very low, Sebi Executive Director G P Garg said on Monday.

Speaking on the occasion of World Investor Week 2021 at the Multi Commodity Exchange of India (MCX), Garg said all the stakeholders need to make efforts to educate investors about the commodities derivatives.

RBI issues draft scheme for takeover of PMC Bank by Unity Small Finance Bank

The Reserve Bank on Monday came up with a draft scheme for the acquisition of Punjab and Maharashtra Cooperative (PMC) Bank by Delhi-based Unity Small Finance Bank (USFB).

The draft scheme of amalgamation envisages the takeover of the assets and liabilities of PMC Bank, including deposits, by the USFB, thus giving a greater degree of protection for the depositors, the Reserve Bank of India said.

Sensex nosedives 1,170 pts; RIL tumbles over 4%

Equity benchmark Sensex plummeted 1,170 points on Monday, dragged by losses in Reliance Industries, Bajaj Finance and Kotak Bank.

The 30-share BSE index ended 1,170.12 points or 1.96% lower at 58,465.89. Similarly, the NSE Nifty fell 348.25 points or 1.96% to 17,416.55.

The rupee depreciated by 12 paise to end at 74.42 (provisional) against the U.S. dollar today.

Zvolv raises $1.5 mn funding

Zvolv, an enterprise SaaS platform, on Monday said it has raised $1.5 million (about ₹11.1 crore) in funding, led by JSW Ventures.

The round also saw participation from Riso Capital, a Silicon Valley based VC fund, a statement said. Zvolv plans to use the funds to expand its customer base globally, drive rapid adoption in an increasingly work-from-anywhere world, as well as double down building out the AI/ML capabilities in the platform, it added.

Sleepy Owl raises $6.5 mn funding

Sleepy Owl on Monday said it has raised $6.5 million (about ₹48.3 crore) in funding, led by existing investor Rukam Capital.

The series A funding raised by the Delhi-based direct to consumer (D2C) company, which operates in the ready-to-drink coffee space, also saw participation by existing investor DSG Consumer Partners and others, a statement said.

Jesons Industries files draft IPO papers to raise ₹900 crore

A manufacturer of speciality coating emulsions, Jesons Industries, has filed preliminary papers to raise an estimated ₹800-900 crore through an initial share sale.

According to the draft red herring prospectus (DRHP) filed with capital markets regulator Sebi, the initial public offering (IPO) comprises a fresh issue of equity shares of up to ₹120 crore and an offer for sale of up to 12,157,000 equity shares by promoter Dhiresh Shashikant Gosalia.

The public issue includes a reservation of 77,000 equity shares for employees.

Ericsson to buy cloud firm for $6.2 billion

Mobile telecoms equipment maker Ericsson has agreed to buy cloud communications firm Vonage for $6.2 billion.

The deal follows Ericsson’s acquisition of U.S.-based wireless networking company Cradlepoint for $1.1 billion in 2020.

The acquisition marks a new phase after a period since Borje Ekholm took over as CEO in 2017.

Two-wheeler volume to shrink 1-4% this fiscal: ICRA

Domestic two-wheeler (2W) volume is expected to shrink by 1-4% year-on-year this fiscal, impacted by relentless increase in 2W prices as well as record high petrol cost, among others, credit ratings agency ICRA has said.

Further, ICRA said that the lacklustre festive season performance also highlights the continued wariness among the low-income population regarding big-ticket purchases.

Reliance Industries shares fall 4%

Shares of Reliance Industries Ltd on Monday tumbled over 4% after it shelved a proposed deal to sell a 20% stake in its oil refinery and petrochemical business to Saudi Aramco for $15 billion.

The market heavyweight stock tanked 4.22% to ₹2,368.20 on the BSE.

At the NSE, it tumbled 4.17% to ₹2,370.

Sensex crashes over 1000 points, Nifty below 17,500

Indian indices extended the fall with Sensex plunging almost 1100 points and the Nifty falling below 17,500. At 12:26 IST, the Sensex was down 1098.77 points or 1.84% to 58,537.24 and the Nifty was down 338 points or 1.90% to 17,426.80.

The markets opened lower as Sensex fell 202.56 points to 59433.45 and the Nifty was down 56.30 points to 17708.50.

Paytm tumbles nearly 14%

Shares of newly-listed One97 Communications, Paytm’s parent company tanked nearly 14% today, after making a tepid debut on Thursday last week.

The stock plunged 13.66% to ₹1,350.35 on BSE and tumbled 13.39% to ₹351.75 on the NSE.

Ant Group-backed Paytm’s Rs 18,300 crore IPO, India’s biggest share sale, was oversubscribed 1.89 times earlier this month.

Paytm Q2 GMV more than doubles to ₹1,95,600 crore

Paytm on Sunday reported more than two-fold rise in gross merchandise value at ₹1,95,600 crore in the second quarter that ended on September 30.

Digital payments and financial services firm had recorded a gross merchandise value (GMV) of ₹94,700 crore in the same period a year ago.

Paytm refers to GMV as the value of total payments made to merchants through Paytm, excluding any consumer-to-consumer payment services such as money transfers.

Rupee slips to 74.35 against U.S. dollar

The rupee fell 5 paise to 74.35 against the U.S. dollar in opening trade due to massive sell-off in domestic equities and firm American currency overseas. However, lower crude prices supported the local unit and restricted the fall.

On Thursday, the rupee had closed at 74.30 against the U.S. dollar and Forex markets were closed on Friday on the occasion of ‘Guru Nanak Jayanti’.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.10% to 96.12.

Airtel announces 20-25% tariffs hikes

Telecom operator Bharti Airtel announced 20-25% tariffs hikes for various prepaid offering. The new tariffs will apply to voice plans, unlimited voice bundles, and data top ups.

While the entry-level tariffed voice plan has been hiked by about 25%, the increase is about 20% for most unlimited voice bundles.

In tariffed voice plans, the new rate is ₹99, against the current ₹79 with 28 days validity and benefits like 50% more talktime worth ₹99, 200 MB data, 1p/sec voice tariff.

Markets open | Sensex, Nifty open lower

Indian benchmark equity indices opened on a negative note today. The Sensex fell 202.56 points to 59433.45 and the Nifty was down 56.30 points to 17708.50.

Most Asian stocks started the week on a soft note as the return of COVID-19 restrictions in Europe and risk of hastened tapering from the U.S. Federal Reserve.

Australian shares fell 0.4%, led by bank stock losses. Japan’s Nikkei was down 0.3% and MSCI’s broadest index of Asia-Pacific shares was flat. However, S&P 500 futures rose 0.2% after Wall Street indexes had slipped on Friday.

Oil falls to a 7-week low

Crude oil fell to seven-week lows on concerns about excess supply from Japan and over demand from a worsening COVID-19 situation in Europe.

Brent crude fell 0.72% to $78.32 and U.S. West Texas Intermediate (WTI) crude futures were down 39 cents to $75.55 a barrel.

Japanese Prime Minister Fumio Kishida had signalled he would help counter soaring oil prices after a request from the United States to release oil from its emergency stockpile.

Meanwhile, concerns are growing that renewed COVID-19 curbs could hit demand. Germany warned it may impose a full lockdown after Austria said it would reimpose strict measures to tackle rising infections.

—-

Go Fashion IPO subscription closed today. Last week, Prime Minister Narendra Modi said he would repeal agriculture laws that farmers have been protesting against for more than a year.  Reliance on Friday said it will reevaluate the $15 billion stake sale in the oil-to-chemicals arm to Saudi Aramco. Paytm stock will be the one to watch this week after a dismal stock market debut.

—-  Edited by John Xavier

(With inputs from Reuters, PTI and other news agencies.)

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