Business News at 05:30 pm on 9th July, 2024

Let’s begin – Indian benchmark indices ended at record high on July 9 led by buying across the sectors. The Sensex was up 391.26 points or 0.49 percent at 80,351.64, and the Nifty was up 112.70 points or 0.46 percent at 24,433.20. About 1771 shares advanced, 1664 shares declined, and 83 shares unchanged. Top gainers on the Nifty included Maruti Suzuki, M&M, ITC, Titan Company and Divis Labs, while losers were ONGC, Tata Consumer, Reliance Industries, Shriram Finance and Bajaj Finance. Except IT and energy, all the sectoral indices ended in the green with auto, FMCG, Healthcare and Realty up 1-2 percent. The BSE midcap and smallcap indices ended on a positive note.

Up next – Bengaluru-based Zinka Logistics filed draft red herring prospectus papers with SEBI for an IPO on July 8. The IPO will offer a combination of fresh issue as well as an offer for sale, in which promoters will be selling 21.61 million equity shares. The company will collect Rs 550 crore from the fresh issue. Zinka Logistics is India’s largest digital platform of truck operators. Over 9.63 lakh truck operators in the country transacted on the platform in FY24, which comprises 27.52% of India’s truck operators, said the company. Using Zinka’s platform, customers digitally manage payments for tolling and fueling, monitor drivers and fleets using telematics, find loads on the marketplace, and get access to financing for the purchase of used vehicles.

Moving on – Larsen & Toubro Ltd announced that its wholly owned subsidiary, L&T Semiconductor Technologies Limited has entered into a share purchase agreement to acquire 100 per cent stake in SiliConch Systems Private Limited. In a regulatory filing, L&T said that the acquisition cost consists of an upfront amount of Rs 133 crore payable at closing, subject to customary closing adjustments, and a deferred amount of Rs 50 crore payable over 4 years. L&T said that the acquisition is expected to add IP, engineering skill sets and design expertise to strengthen the Group’s presence in the fabless semiconductor business, and this aligns with the overall growth strategy of LTSCT. The acquisition is expected to be completed by 15th September 2024.

In another development – Maruti Suzuki has revamped its warranty programs in a move that significantly bolsters customer confidence. Effective for all vehicles delivered on and after 9 July 2024, the company has introduced a wider set of warranty packages. Previously, Maruti Suzuki offered a standard warranty of 2 years or 40,000 kilometres, whichever came first. This provided a safety net for essential components like the engine, transmission, electricals, and AC, but only for a limited period. Recognizing the need for more comprehensive coverage, the Indo-Japanese carmaker has generously extended the standard warranty to 3 years or 100,000 kilometres, whichever comes first. It’s important to note that consumables like brake pads, clutch plates, and wiper blades are excluded from the standard warranty coverage.

Meanwhile – Inflows into equity mutual funds surged by 17% to Rs 40,608.19 crore in June, setting a new high, according to the latest data released by the Association of Mutual Funds of India (AMFI) on July 9. This follows a record high net inflow of Rs 34,697 crore in May, which had surged by 83.42%. The mutual fund industry’s assets under management rose to Rs 61.16 lakh crore in June. Meanwhile, debt mutual funds saw net outflows of Rs 1,07,357.62 crore during the month. Overall, open-ended mutual funds experienced net outflows of Rs 43,108.80 crore in June. Inflows into open-ended equity funds have remained positive for the 40th consecutive month.

In other news – Ukrainian President Volodymyr Zelensky has sharply criticized Indian Prime Minister Narendra Modi for his visit to Moscow, highlighting a tragic attack on a children’s hospital in Kyiv. On the day Modi met with Russian President Vladimir Putin, two people were killed and many others injured in the attack on a children’s cancer hospital. Zelensky alleged that Russia deliberately targeted the hospital, branding Putin as “the world’s bloodiest criminal” and expressing disappointment over Modi’s engagement with him. In response, the Russian Defence Ministry denied targeting the hospital, claiming that the damage was caused by a Ukrainian air-defence missile. Russia dismissed Kyiv’s allegations as ‘hysteria’ and stated that its attacks focused on Ukraine’s military and strategic bases.

Lastly – June 2024 could be the hottest year ever recorded in history, as per the European Union’s Copernicus Climate Change Service. This streak, which began in June 2023, has seen every month since then become the hottest of its kind recorded since records began. Some scientists suggest that 2024 is now poised to become the hottest year globally on record. Scientists have been blaming human-induced climate change and El Nino weather conditions behind the unusually high temperature. According to the latest data by Reuters, 2024 is anticipated to exceed 2023 as the hottest year to date. There is a 95% chance that 2024 will be the hottest year ever recorded after 1800, claimed a research scientist at Berkeley Earth.