#1. Indian equities decline for second straight day on persistent profit booking
India’s benchmark indices fell for a second straight day as profit booking on HDFC Bank persisted. The Sensex slumped 0.44 percent to close at 71,187 points and the Nifty50 ended at 0.5 percent lower. HDFC Bank shed 3 percent after falling 8 percent the preceding day. Many other top firms, including NTPC, Asian Paints, PowerGrid, IndusInd Bank, Maruti Suzuki, Bajaj Finance, and JSW Steel fell over 1 per cent each.
Why it’s important: Besides booking profits of the recent rally and concerns over high valuations, investors are also trimming their bets on a faster rate cut possibility by the US Federal Reserve.
#2. Overseas investors increase short positions, indicating further market volatility
Foreign portfolio investors have flipped their bullish bets on derivatives to bearish ones over just two trading sessions. In these past two sessions, foreign institutional investors sold Rs 20,384.2 crore of cash shares, turning net sellers of Rs 3,852 crore so far this month. They unwound all bullish bets and turned net short by 4,659 contracts, coinciding with the market pulling back almost 3 percent from the high
Why it’s important: This swift change of view could be a precursor to a deeper retracement from the markets’ recent peak. Whether the markets rise or fall, increased volatility is a given.
#3. Sony calls board meeting to take final call on merger with Zee
Sony Group Corp has called for a board meeting today, where it is expected to take a finally decide on the $10 billion merger of its India operations with Zee Entertainment Enterprises. Sony is expected to call off the planned amalgamation unless Zee managing director and CEO Punit Goenka agrees that he won’t assume current titles at the merged entity. Sony may inform the Tokyo Stock Exchange early next week of the possible termination of the plan.
Why it’s important: The proposed mega merger announced two years ago was to create India’s the country’s largest broadcast company. It is verging on collapse on leadership differences.
#4. Shareholders object to delisting plans of ICICI Securities, question swap ratio
Discontent spilled out in the open about the proposed delisting of ICICI Securities at the post-earnings meet as analysts and shareholders challenged its rationale and questioned the swap ratio. Investors are upset over the proposal to turn ICICI Securities into a wholly owned unit of parent ICICI Bank.
Why it’s important: Shareholders believe ICICI Securities is better off as a listed firm. The firm needs two-thirds of them to approve the transaction. Chances of that happening has receded.
#5. Sun Pharma to buy remaining stake in Israeli Taro for Rs 2,982 crore
Sun Pharmaceutical Industries has entered into a pact with Taro Pharmaceutical to acquire the remaining 21.52 percent stake in the Israeli company for $43 per share that would amount to $347.73 million or Rs 2,982 crore. Sun owns a controlling stake of 78.48 percent in the company. The fresh transaction is expected to be completed by the year to March 2025.
Why it’s important: The complete merger will help Sun to consolidate its position in the US and resto fhte world markets. It would also be able to access Taro’s cash holdings of $3 billion.
#6. Sons of Cyrus Mistry join holding firms of Shapoorji Pallonji Group
The sons of late Cyrus Mistry, Firoz (27) and Zahan (25), have been appointed directors at one of two holding units of the reorganizing Shapoorji Pallonji Group. The group is recasting its businesses, under which it has reverted to its older family holding structures -- SC Finance and SP Finance. Shapoorji Pallonji Company, which officiated as the promoter holding firm, will revert to a construction-oriented company.
Why it’s important: The next generation in the conglomerate that holds the largest stake in Tata Sons is taking on leadership roles after the premature demise of their father. India’s family businesses have always looked for a smooth business transition across generations.
#7. Import of computer hardware shrinks to trickle after online monitoring drive
After the online monitoring system for imports of electronic hardware went live on November 1, inbound shipments of laptops and tablets slipped in November to a nine-month low at $225 million, contracting 17.15 percent on an annualized basis. Computer servers also saw a contraction of 31. 8 percent.
Why it’s important: Many key trading partners have expressed concerns over the monitoring system on fears that it would restrict trade. The Indian government says it would facilitate trade instead.
#8. Akasa Air places order to buy 150 aircraft from Boeing despite recent concerns
Akasa Air, which debuted on Indian skies 17 months ago, has placed an order for 150 B737 Max aircraft with Boeing. The order, comprising 737 Max 10 and 737 Max 8-200 variants, will be delivered between mid-2027 and 2032, chief executive Vinay Dube said.
Why it’s important: This is Boeing’s first order after the midair blowout of an emergency door in one of its planes. It is also the third major aircraft order by an Indian aviation firm in the past 12 months, underlining rapid expansion of the sector in the country.
#9. After engineering colleges, top b-schools struggle to get students jobs this placement season
It is not just the country’s top engineering institutes, but premier business schools are also struggling to procure jobs for all students this placement season. This year is turning out to be one of the most difficult ever for placements at the top IIMs of Ahmedabad, Bangalore, Calcutta, Lucknow, Indore and Kozhikode, officials and students across the institutes said.
Why it’s important: The impact of the global economic slowdown and overhiring just after the pandemic are being felt at placement cells. The downturn will affect everyone, but in different proportions.
#10. India Inc goes on overdrive to celebrate inauguration of Ram temple
As Ayodhya in Uttar Pradesh prepares the glittering consecration ceremony of the Ram Mandir on January 22, with millions of pilgrims pouring into the city, Indian companies are rushing to be a part of the huge celebrations. Some are offering a part of their profits as donations, telcos are beefing up the number of cellular towers to ensure better connectivity, and there are those distributing jalebis and food platters.
Why it’s important: The Ram temple juggernaut has truly started rolling, generating massive interest in many parts of the country. Corporates see an opportunity to buff their image by joining the bandwagon.
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