Discover the top business headlines that are trending across the world today!
India's IPO market, which witnessed impressive activity this financial year, now faces a blow despite notable successes. Hyundai Motors India’s record-breaking Rs 28,756 crore IPO marked the largest offering, followed by Swiggy’s Rs 11,327 crore listing as the second-largest.
The upcoming Rs 10,000 crore IPO of NTPC Green Energy is expected to be the third-largest of 2024. Earlier, Bajaj Housing Finance garnered a massive Rs 3.2 lakh crore in bids, reflecting the market’s initial strength.
However, a slowdown has emerged, with fewer offerings and declining subscription rates. Global economic uncertainties, rising interest rates, and tighter liquidity have made investors more cautious. Retail participation, once a key driver of oversubscription, has waned as concerns grow over IPO valuations appearing misaligned with company fundamentals. The trend raises questions about the future momentum of India’s IPO market.
The GST Council is set to meet in Jaisalmer, Rajasthan, on December 21 to discuss potential tax relief on health and life insurance premiums and revise GST rates on over 100 items, sources reveal. The meeting was postponed from November due to assembly elections.
In its previous session on September 9, the Council formed two Group of Ministers (GoM) panels. One proposed removing GST on term-life insurance, health insurance coverage up to Rs 5 lakh, and premiums for senior citizens above 60, though a complete tax waiver on health insurance was ruled out. Current GST on health insurance stands at 18%.
The exemptions, if approved, could cost the exchequer Rs 3,200 crore annually. Simultaneously, another GoM has recommended GST rate adjustments on 100 products, potentially generating Rs 22,000 crore in additional revenue annually, shared between the Centre and states.
India's forex reserves fell by $6.78 billion to $675.65 billion for the week ending November 8, according to the Reserve Bank of India (RBI). This marks a $29.5 billion decline over six weeks, following a record high of $704.89 billion in late September.
Forex traders attribute the drop to RBI's intervention in the currency market to curb rupee depreciation, which has consistently hit record lows, reaching 84.39 against the dollar on November 8. The dollar's strength, driven by a post-election rally in the US dollar index and rising Treasury yields, has intensified pressure on the rupee.
Persistent equity outflows have added to the strain. Foreign currency assets, the largest component of reserves, decreased by $4.467 billion to $585.38 billion. These assets reflect valuation changes in currencies like the euro, pound, and yen held in reserves. Without RBI’s intervention, traders suggest the rupee's decline would have been sharper.
In the past week, 24 Karat gold prices in India fell by 4.12%, dropping from ₹77,580 to ₹74,380, with experts predicting a further monthly decline of 3.72% to ₹77,250. This downward trend is influenced by both domestic and global factors.
The Reserve Bank of India (RBI) recently maintained the repo rate at 6.50% for the 10th consecutive time during its October 9 monetary policy meeting. On the global front, Donald Trump’s presidential victory has raised expectations of stricter monetary policies under his administration.
Additionally, Federal Reserve Chair Jerome Powell highlighted higher-than-expected producer price data in the U.S., which has led to cautious investor sentiment. Concerns over sustained high interest rates have reduced gold's appeal compared to Treasury yields and other government schemes, further pressuring gold prices.
