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But it wasn’t all bad news on Dalal Street! Five mainboard IPOs, including Concord Enviro, Sanathan Textiles, and Trasrail Lighting, brought some cheer to the market amidst the chaos.
In the corporate world, IT giant Accenture posted stellar Q1 results, with revenue jumping 9% to $17.7 billion—comfortably beating Street estimates. Over in the FMCG space, Parle announced plans to hike prices by at least 5% across its products starting January.
On the economic front, the RBI has urged states to cut back on subsidies to make room for more productive spending.
And finally, drama unfolded in Parliament as MPs Pratap Sarangi and Mukesh Rajput accused Congress leader Rahul Gandhi of pushing them—an incident that reportedly led to injuries and hospitalisations for both.
Federal Reserve cuts interest rates by another 25 basis points
The Federal Reserve reduced its key interest rate by 25 basis points on Wednesday, December 18, 2024, marking the third consecutive cut.
As expected by the markets, the Federal Open Market Committee (FOMC) lowered the overnight borrowing rate to a target range of 4.25%-4.5%. This brings rates back to levels last seen in December 2022, when they were on an upward trajectory.
The Fed signaled that it is likely to cut rates more gradually in 2025 than previously projected. Policymakers now foresee two rate cuts next year, down from the four they had predicted in September.
Markets extend declines amid Fed caution on rate cuts; Nifty drops below 24,000
Benchmark equity indices Nifty 50 and Sensex extended their declines on Thursday, led by deep losses in domestic banking stocks as the US Federal Reserve signalled a slower rate of monetary policy easing in their latest meeting.
The Sensex fell 964 points, closing at 79,218, while the Nifty 50 dropped 247 points, settling at 23,952. With this fall, the indices are now down for the third consecutive day.
The losses were exacerbated by profit-booking in key sectors, with 39 out of the 50 Nifty stocks finishing the day in the red.
Rupee hits all-time low of 85 against dollar
The Indian rupee slipped to an all-time low of 85 against the US dollar on Thursday, December 19, as global and domestic factors continued to weigh on the currency.
It opened at 85 against dollar compared to Wednesday’s close of 84.95 against dollar.
Here’s a look at the key factors driving the rupee’s decline
Five IPOs open for subscription today amidst a potential market sell-off
Indian primary markets are buzzing with several public offerings from the mainboard section set to hit Dalal Street today, even as the broader market faces a potential sell-off.
Concord Enviro: Aiming to raise ₹500.3 crore, this water treatment company’s IPO opened today with a price band of ₹665-701. The offer includes a fresh issue of ₹175 crore and an offer-for-sale of 46.4 lakh shares.
Sanathan Textiles: This Mumbai-based firm’s ₹550 crore IPO opened with a price band of ₹305-321. It has already raised ₹165 crore from anchor investors.
Mamata Machinery: Gujarat-based Mamata Machinery’s ₹179 crore IPO opened today with a price band of ₹230-243. It is a pure offer-for-sale, with 73.82 lakh shares on offer.
Accenture Q1 beats the Street with 9% revenue growth at $17.7 bn, raises FY25 guidance
Accenture reported strong Q1 FY25 results, with revenue reaching $17.7 billion, marking a 9% year-on-year (YoY) increase in US dollar terms and 8% in local currency, leading to a 5% jump in its shares in premarket trading on Thursday, December 19.
The IT giant beat Wall Street estimates for Q1 revenue on the back of growing demand for its services to help clients adopt AI-powered tools.
Earnings per share (EPS) stood at $3.59, up 16% from $3.10 in the same period last year and exceeding analyst expectations of $3.42.
RBI report points at rising state spending on loan waivers, cash transfers
States need to contain and rationalise their subsidy outgoes, so that such spending does not crowd out more productive expenditure, the Reserve Bank of India (RBI) has said.
A report, entitled ‘RBI’s State Finances: A Study of Budgets 2024-25,’ released on Thursday (December 19), has pointed out that an area of incipient stress is the sharp rise in expenditure on subsidies, driven by farm loan waivers, free/subsidised services and cash transfers to farmers, youth and women.
“Too many Central government schemes reduce flexibility of State government spending and dilute the spirit of cooperative fiscal federalism. Rationalisation of centrally sponsored schemes (CSS) can free up budgetary space to meet State-specific expenditure needs and reduce the fiscal burden of both the Union and the State governments. Persistent high level of subnational debt calls for a credible roadmap for debt consolidation. Following the Centre’s strategy outlined in the Union Budget 2024-25, States with elevated debt levels may establish a clear transparent and time-bound glide path for debt consolidation,” the RBI report said.
Parle Products to hike prices and reduce weight to combat rising costs
Parle Products, a leading FMCG company, is set to roll out price hikes of at least 5% across its product portfolio from January. This increase will apply to a wide range of items, including bread, biscuits, rusk, cake products, and snacks.
In addition to price adjustments, Parle is also planning a reduction in grammage for its entry-level and low-unit price packs. Popular products like the Parle-G ₹5 and ₹10 packs, along with other smaller biscuit offerings, will see a reduction in weight by 5% to 10%, depending on the pack size.
Who are Pratap Sarangi, Mukesh Rajput? MPs injured in Parliament scuffle with Rahul Gandhi
BJP MP Pratap Chandra Sarangi sustained a head injury on Thursday during a clash between INDIA bloc and BJP MPs outside Parliament. Sarangi alleged he was injured after Congress leader Rahul Gandhi pushed another MP, who then fell on him near the Makar Dwar entrance. He was rushed to Ram Manohar Lohia Hospital and is currently under treatment in the ICU.
Sarangi stated, “Rahul Gandhi pushed a Member of Parliament who fell on me. I was standing near the stairs when this happened.” BJP MP Mukesh Rajput was also injured during the altercation and hospitalised with head injuries and high blood pressure. According to hospital authorities, Sarangi suffered a deep cut on his head and had lost significant blood before receiving treatment.
PM Modi announces ₹2 lakh relief as 13 die in Mumbai boat collision
PM Narendra Modi expressed deep condolences over the tragic loss of lives in a boat accident off the Mumbai coast, announcing an ex-gratia payment of ₹2 lakh for the next of kin of each deceased.
Thirteen people lost their lives in Mumbai on Wednesday, December 28, when a passenger ferry, Neel Kamal, collided with an Indian Navy craft undergoing engine trials and capsized en route to Elephanta Island from the Gateway of India.
Among the deceased were 10 civilians and 3 Navy personnel, including 2 children, 7 men, and 4 women. Maharashtra Chief Minister Devendra Fadnavis confirmed that 101 passengers were rescued and are receiving medical attention at nearby jetties and hospitals.
India crypto portfolio 2024: What’s hot in crypto — It’s not just Bitcoin anymore
In 2024, India’s crypto landscape saw a notable shift, with investors embracing a broader range of digital assets. PEPE, a meme coin, took the lead with a jaw-dropping 1,300% surge, placing Indian portfolios at the forefront of global crypto adoption.
With Bitcoin breaking the $100,000 mark and continuing its dominance, Indian investors showcased a growing appetite for digital assets, with meme coins emerging as a top trend.
A recent CoinSwitch report reveals that while Delhi-NCR remains the capital of cryptocurrency adoption, cities like Kolkata and Botad are making their mark, now in the top 10 for crypto adoption.
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