Discover the top business headlines that are trending across the world today!
According to recent reports, the State Bank of India is eyeing to secure a $1.25 billion dollar-denominated loan, marking a landmark move this time as it would be the biggest overseas borrowing by India's financial sector this year. As per a Bloomberg report, the financing is being arranged by HSBC Holdings Plc, CTBC Bank, and Taipei Fubon Bank. The loan, intended for general corporate purposes, is being spearheaded by SBI’s Gujarat International Finance Tec-City (FIFT City) branch. The bank plans to syndicate the loan to mitigate risk, reflecting a broader trend of Indian institutions tapping foreign currency debt amid tighter domestic lending regulations.
Other Indian lenders have also sought significant foreign funding this year. Cholamandalam Investment & Finance Co. sought a $300 million syndicated loan, Union Bank of India’s Sydney branch arranged a three-year A$125 million loan, and Bank of Baroda targeted $750 million.
However, India’s dollar-denominated loan volumes fell 27% in 2023 because of reduced large-scale corporate borrowings.
Benchmark indices Sensex and Nifty, which provided impressive returns of 18-20% by September this year, have taken a sharp U-turn, dwindling around 10% from their latest highs and entering the correction territory. This drop is because of the significant foreign outflows, widespread earnings, widespread earnings denigrated by Indian Inc following Q2 results l, high valuations in comparison to markets like China, and the effect of the US elections reinforcing the dollar and 10-year bond yields.
Since hitting a record high of 85,978.25 on September 29, the Sensex has plunged 8,553.44 points, or approximately 10%. Similarly, the Nifty has fallen 2,744 points, marking a 10.44% drop from its one-year high of 26,277.35 reached on September 27.
Compared to $14,122 million withdrawal from Taiwan, and $3,606 million from Thailand, Foreign portfolio investors (FPIs) have extracted only $2,413 million from Indian markets in 2024 so far. Meanwhile countries like Indonesia and Korea witnessed inflows of $5,965 million and $ 2,025 million respectively. FPI holdings in Indian equities hit a 12-year low last month, with Rs 22,420 crore worth of stocks sold in November’s first half, following Rs 94,017 crore outflows in October, according to Nuvama Institutional Equities.
Union Commerce and Industry Minister Piyush Goyal expressed that food price inflation should not impact the Reserve Bank of India's (RBI) interest rate decisions. Speaking at a CNBC-TV18 event in Mumbai, Goyal called the connection between food inflation and interest rates an “absolutely flawed theory,” arguing that food inflation arises from supply-demand dynamics rather than monetary factors.
He emphasized that managing food inflation has little to do with inflation targeting through interest rates. However, Goyal clarified that these views are personal and not reflective of government policy. He suggested broader consultations involving external economists and stakeholders to evaluate the role of food inflation in shaping monetary policy.
Following his comments, RBI Governor Shaktikanta Das refrained from immediate response, stating he would address the matter during the December monetary policy review.
According to FADA President CS Vigneshwar, The 42-day festive season witnessed record-breaking numbers of sales this year, with vehicle registrations rising 11.76% compared to last year. The period, spanning from Navratri's start to 15 days after Dhanteras, saw 42.88 lakh vehicles registered, surpassing last year’s 38.37 lakh units.
Passenger vehicle sales surged by 7.10%, reaching 6,03,009 units compared to 5,63,059 last year. The two-wheeler segment demonstrated the highest growth, reaching 13.79% to 33,11,325 units from 29,10,141. Three-wheeler registrations rose 6.81% to 1,59,960 units, up from 1,49,764.
Commercial vehicle sales increased slightly by 1.02%, totaling 1,28,738 units compared to 1,27,436. However, tractor sales declined by 1.64%, dropping to 85,216 units from 86,640 last year. FADA attributed the impressive overall growth to strong demand throughout the festive period.
