Market & Currency
The Rupee demonstrated a recovery against the US Dollar, signaling positive movements in the currency market. Stock markets showed declines, possibly due
to factors like outflows from Foreign Institutional Investors (FIIs) and implications from H-1B visas. The performance was also influenced by various IPO subscriptions, such as Epack Prefab Tech, which saw a 30% subscription on its first day, and Solarworld Energy, which experienced a 4x subscription on day two. Other IPOs like Ganesh Consumer and Jaro Education were also subscribed at varying rates, showcasing the ongoing interest in the primary market. Simultaneously, there were market corrections, which can be attributed to a mix of economic factors and investment decisions. The interplay of currency strength, market fluctuations, and investor interest highlights the current volatility and the diverse influences shaping the Indian financial market.
Trade & Policy
India and Australia signed an organic trade agreement, which may enhance the trade relations between the two countries. The US is keen on expanding trade, particularly in the energy sector, with India. The government imposed import curbs on silver jewelry. The Ministry of Textiles is working with the North Eastern states to explore the potential of handloom products. Additionally, there were updates regarding the agricultural sector, where the government has been focusing on promoting self-reliance. Rajasthan's Chief Minister urged the passing of GST rate cut benefits to consumers. The government is considering demands related to wheat product exports. Furthermore, there was news about the Uttar Pradesh International Trade Show, where around 2,500 exhibitors participated.
Finance & Tech
The Reserve Bank of India (RBI) highlighted the usage of FinTech applications, with payments and lending leading the way. Data from RBI showed an improvement in the Banks' sDQI (Data Quality Index). Non-Banking Financial Companies (NBFCs) experienced robust growth in vehicle and gold loans, as reported by the RBI. The digital lending landscape is changing, especially in the context of loan disbursements, with new credit loans dipping in Q1. Several companies launched IPOs. Nucleus Software took action related to insider trading. Crisil acquired McKinsey's PriceMetrix company. Moreover, LIC Mutual Fund (MF) is expanding its presence in Tier 3 towns in Tamil Nadu to fuel growth. The adoption of IoT in India is rising, driven by young tech users. The Labour Ministry and Zepto signed an MoU for job opportunities. Further, Emergent raised $23 million, led by Lightspeed. Anand Rathi IPO was subscribed on day two.
Energy & Agri
In the energy sector, there were significant developments. Karnataka proposed a Mangaluru Tech Park, and JK Lakshmi Cement is focusing on solar power at its Surat unit. The Renewable Energy sector saw news regarding NTPC, Adani, and SaveSage. In agriculture, the Punjab government offered free wheat seeds to farmers after floods. The Punjab Agri Minister sought intervention from the Competition Commission of India (CCI) on cotton MSP. Furthermore, the Haryana government is planning to procure Kharif pulses and oilseeds. Also, Haryana will set up 800 MW thermal units in Panipat and Hisar. A sewage sludge to power project is underway in Kerala's Muttathara Plant. TruAlt Bioenergy's IPO raised Rs 252 crore from anchors.
Regulatory Updates
Rajasthan's High Court proposed extending the tax audit filing deadline to October 31. The National Company Law Appellate Tribunal (NCLAT) upheld the CCI order on a UP soil testing tender. The Securities and Exchange Board of India (SEBI) received a filing from RKCPL for a Rs 1,250-crore IPO. Additionally, the government is looking to recover pre-GST arrears via the Punjab OTS scheme. The US Food and Drug Administration (USFDA) approved Lupin's generic HIV treatment. Several companies, including Seshaasai Tech and Atlanta Electricals, saw significant subscription rates in their respective IPOs.
