Discover the top business headlines that are trending across the world today!
The Indian equity benchmark indices BSE Sensex and Nifty50, on Friday, surged to an all-time high. The BSE Sensex surpassed the 84,100 mark for the first time, while Nifty50 crossed 25,650. The Sensex was trading at 84,055.24, up by 870 points (1.05%), and Nifty50 at 25,660.80, up by 245 points (0.96%) by 10:52 am. The rally was driven by positive global and Asian market cues, following the US Federal Reserve’s shift towards monetary easing. As reported by ET, this led to the surge of the combined market capitalization of all BSE-listed stocks by Rs 4 lakh crore, touching down to Rs 469.5 lakh crore. Markets also benefitted globally, with the Dow closing above 42,000 and the S&P 500 hitting a record high. The rupee became more robust for the third consecutive session, elevating 0 paise to 83.56 against the US dollar, shouldered by powerful domestic equities and a fragile dollar.
Although the US Federal Reserve began its easing cycle with a 50 bps rate cut, as noted by Emkay Global, the Reserve Bank of India (RBI) is still eyeing domestic inflation and risk management. Emkay predicts that a rate cut is likely to happen by December, with more than 20 days left ahead of the next Monetary Policy Committee (MPC) meeting. The report indicates that the RBI will continue with a “wait and watch” approach, emphasizing disinflation before considering a reduction in rate. Although the Fed reduced its benchmark rate to 4.75-5% before the November election, pointing to the progress on inflation and balanced risks, it is expected by Emkay that both the RBI and Fed will execute shallow cuts during the current cycle. Emerging markets like India may follow suit, however with low global volatility. The RBI will continue to focus on domestic factors, considering cuts by the year-end.
Infosys announced an investment of Rs 17 crore (around $2 million) on September 19 in the Bengaluru-based spacetech startup GalaxEye. GalaxEye is producing multi-sensor satellites and a synchornization platforms for high-resolution data across industries. The investment has been done via Infosys Innovation Fund, which emphasizes on AI and deep tech startups. Infosys plans to capitalize on this collaboration to give birth to space technology solutions that will bolster business transformation for its clients. Through this investment, Infosys will gain a minority stake, which is less than 20% in GalaxEye. This development follows Galaxeye’s $6.5 million funding round, spearheaded by Mela Ventures and Speciale Invest, with backing from firms like Rainmatter and ideaForge. While continuing with the improvement of its multi-sensor technology, the startup aims to utilize these funds for the launch of its first satellite, the Drishti Mission, in 2025. The deal is set to close by 30th September 2024.
Anil Ambanis’ Reliance Infrastructure Ltd (RIL) shares soared over 12%, touching down to a new 52-week high of Rs 320.40 on the NSE. This surge came after the company’s board approval of a vital fundraising plan. The board also sanctioned a proposal to seek shareholder approval for raising Rs 3,000 crore via a Qualified Institutional Placement (QIP). The funds gained from the QIP will be utilized for the expansion of business operations, either directly or via investments in joint ventures and subsidiaries, and to align with long-term working capital and corporate needs. Furthermore, The board endorsed raising Rs 3,014.4 crore through a preferential issue of 12.56 crore equity shares at Rs 240 each. The issue will be offered to promoter entity Risee Infinity Private Limited, along with non-promoter entities Florintree Innovation LLP and Fortune Financial & Equities Services Private Limited.
