The Nifty and the Sensex opened the day on a positive note, hitting fresh highs in the process.
Join us as we follow the top business news through the day.
After Amazon moves Supreme Court, Future Group says will defend the matter
Future Retail Ltd (FRL) on Monday said Amazon has approached the Supreme Court against a Delhi High Court order that vacated the status quo on Future Group’s proposed ₹24,713 crore-deal with Reliance Industries.
In a filing to stock exchanges, FRL also said that it “shall defend the matter/proceedings through its legal counsels”.
Amazon and Future are locked in a bitter legal tussle after the U.S. e-commerce giant dragged Future Group to arbitration at SIAC, arguing that the latter had violated their contract by entering into the deal with rival Reliance.
“... the company’s advocates are in receipt of communication dated February 13, 2021 from advocates of Amazon.com NV Investment Holdings LLC (Amazon) informing that Amazon has filed a Special Leave Petition before the Supreme Court of India against the captioned order dated February 8, 2021 passed by the Division Bench of the High Court of Delhi,” FRL said in the filing.
Indian shares set record closing highs as banks surge
Another great day for stocks.
Reuters reports: "Indian shares closed at all-time highs on Monday, led by gains in banks as strong corporate earnings raised hopes of a faster economic recovery.
Domestic stock indexes have rallied more than 12% in February on a high-spending federal budget, better-than-expected December-quarter corporate earnings and strong foreign fund inflows.
On Monday, the NSE Nifty 50 index ended 1% higher at 15,314.70, while the S&P BSE Sensex closed 1.18% higher at 52,154.13.
The top seven contributors to the Nifty 50's advance on Monday were banking and financial firms, with HDFC Bank and ICICI Bank the top boosts, gaining 2.2% and 4.2%, respectively. Banking stocks jumped 3.32%.
December-quarter profits for Indian companies surged 49% year-on-year, the biggest increase in four quarters, Refinitiv data for 220 companies with at least $500 million in market value showed.
Among earnings-driven moves, Deepak Nitrite and Dilip Buildcon rose more than 6% each, after the companies posted higher profits.
Indiabulls Housing Finance fell 6.3% and Timken India shed 9.1% on quarterly profit declines.
Helping sentiment was buoyant global markets, which rose for the 11th day in a row to hit a fresh peak on optimism about the rollout of COVID-19 vaccines and new fiscal aid from Washington."
Indian IT industry to grow by 2.3% in FY21 despite contraction in tech spends: Nasscom
Some resistance shown by the IT industry.
PTI reports: "The Indian IT industry revenues are set to grow by 2.3 per cent to USD 194 billion in FY2020-21 and the exports will go up by 1.9 per cent to USD 150 billion, industry lobby Nasscom said on Monday.
The industry remained a net hirer in the fiscal year, which saw a major hit across the world because of the COVID-19 pandemic, with 1.38 lakh new jobs added to take overall employment to 44.7 lakh, it said.
"We have emerged more resilient and more relevant from the crisis. We have been the bellwether to lead the fight against COVID," the body's president Debjani Ghosh said.
She said the industry has become the first sector to recover from the pandemic-induced crisis and hit growth despite headwinds like a 3.2 per cent dip in technology spends across the world on a 3.5 per cent contraction in the world GDP.
The overall deal pipeline is over USD 15 billion, if one were to go by the numbers disclosed by listed companies, the body said.
On the outlook, 71 per cent of the 100 industry chief executives said global tech spends will be better in 2021."
Domestic travel to continue aiding hotel recovery in 2021: JLL
Some respite for the hospitality industry.
PTI reports: "Domestic travel, which is already showing signs of recuperating, will continue to aid recovery for hotels in 2021, according to global real estate consultant JLL.
India's hospitality industry witnessed a decline of 54.9 per cent in revenue per available room (RevPAR) during January to December 2020, as compared to calendar year 2019, JLL's Hotel Momentum India (HMI) Q4 2020 said.
With the revival of domestic travel, emergence of recovery indicators has come to the rescue of the sector. The recovery has been primarily driven by leisure 'revenge travel' during weekends, festival season, weddings and demand of food and beverage, it added in a statement.
"We are already seeing signs of domestic business travel pick up in the new year. We expect that occupancies in business hotels will ramp up from March/April 2021 onwards as companies gradually lift travel embargo", JLL, South Asia, Hotels and Hospitality Group, MD Jaideep Dang said.
Furthermore, domestic leisure travel will continue to drive occupancies across the country. Food and beverage (F&B) demand will continue to grow as eating out will increase albeit cautiously, he added.
"We also expect investment activity to restart with serious investors evaluating quality assets on back of performance cycle uptick", Dang said.
Total number of signings in Q4 2020 stood at 45 hotels comprising 4,326 keys, recording a decline of 43.6 per cent, compared to the same period last year, the statement said.
Goa continues to be the RevPAR leader in absolute terms despite a decline of 33.3 per cent in Q4 2020 compared to Q4 2019. Demand for domestic leisure travel amidst international travel restrictions has made Goa the fastest recovering market in absolute terms, it added."
Clubhouse says reviewing data protection practices after report points to flaws
U.S. audio app Clubhouse said it is reviewing its data protection practices, after a report by the Stanford Internet Observatory said it contained security flaws that left users' data vulnerable to access by the Chinese government.
The app said in a response to the study, published by the research group at Stanford University, that while it had opted not to make the app available in China, some people had found a workaround to download the app which meant the conversations they were a part of could be transmitted via Chinese servers.
"With the help of researchers at the Stanford Internet Observatory, we have identified a few areas where we can further strengthen our data protection," the company said in a statement published by the research group on Friday.
IRDAI asks insurers to issue Digilocker to policyholders to preserve documents
Insurance sector regulator IRDAI has asked insurers to issue digital policies to their policyholders and also tell them how to use these documents.
The regulator has reasoned that the step will not only bring down the cost but also help speed up claim settlement process.
In its circular issued to all insurers excluding GIC Re, Lloyd's (India) and FRBs (foreign re-insurance branches), IRDAI said that Digilocker will drive reduction in costs, elimination of customer complaints relating to non-delivery of policy copy, improved turnaround time of insurance services, faster claims processing and settlement, reduction in disputes, reduction in fraud and improvement in customer contactability.
On the whole it is expected that it will lead to better customer experience, said the Insurance Regulatory and Development Authority of India (IRDAI).
Major Australian media company strikes Google news pay deal
Seven West Media has become the largest Australian news media business to strike a deal with Google to pay for journalism in a partnership announced on Monday before the nation’s Parliament considers draft laws to force digital giants to pay for news.
Google and the publicly listed broadcast television, print and online publishing company jointly announced they had agreed on a “long-term partnership” after weekend discussions Australian government Ministers had with media executives, Facebook CEO Mark Zuckerberg and Sundar Pichai, chief executive of Alphabet Inc. and its subsidiary Google.
Kerry Stokes, chairman of Seven West Media, which owns 21 publications, thanked the government and the Australian competition regulator for their proposed law that the Parliament will consider on Tuesday.
WPI inflation rises to 2.03% in Jan. on costlier manufactured items, food prices ease
The wholesale price-based inflation (WPI) rose to 2.03% in January, even as food prices cooled.
The WPI inflation was 1.22% in December and 3.52% in January last year.
While food articles saw softening in inflation in January, manufactured items witnessed hardening of prices, as per data released by the Commerce and Industry Ministry.
Food inflation in January stood at (-)2.8%, against (-)1.11% in the previous month.
Inflation in vegetables and potatoes was (-)20.82% and 22.04% during January, while in the fuel and power basket it was (-)4.78%.
Another milestone: Sensex rallies over 52,000 mark for first time ever
Another fresh high for the stock indices.
PTI reports: "The benchmark Sensex rallied over the 52,000 mark for the first time ever on Monday propelled by gains in the broader market.
In yet another milestone, the 30-share BSE index jumped to its lifetime high of 52,141.67, rallying 597.37 points during the morning trade on Monday.
Banks and financial counters were the leading gainers in the market on Monday, with Bajaj Finance, Axis Bank, ICICI Bank, HDFC, Kotak Bank, IndusInd Bank and HDFC Bank rising around 2.60 per cent.
The benchmark index had closed above the 50,000 mark for the first time ever on February 3 this year, mainly driven by euphoria over the Union Budget. It closed above 51,000 mark on February 8.
Markets have been rewarding investors of late as the BSE 30-share index has more than doubled from the massive lows it faced in March last year.
Proving to be a dreadful month for the domestic stock market, March 2020 saw the Sensex sinking a massive 8,828.8 points or 23 per cent during the month as concerns over the COVID-19 pandemic’s impact on the economy ravaged investor sentiments.
From witnessing gigantic losses to record-shattering gains, investors witnessed a wide array of emotions in 2020.
Stock markets had depicted volatile trends during the last year, with the benchmark crashing to its one-year low of 25,638.9 on March 24, only to roar back to life during the later part of 2020 and hit its record high of 47,896.97 on the last day of trade on December 31.
In 2020, the benchmark index made monthly gains in seven, while closing with losses in five.
So far this year, the benchmark index has gained 4,390.34 points or 9.19 per cent.
Thanks to the ongoing rally, investor wealth has also been rising to new records and is currently at over Rs 205.47 lakh crore."
Clear crypto rules urgently needed as major companies embrace asset: SEC official
A clear cryptocurrency regulatory regime is urgently needed as major companies like Tesla Inc, BNY Mellon Corp and Mastercard Inc embrace the alternative asset class, a top Securities and Exchange Commission (SEC) official said.
Hester Peirce, a Republican commissioner at the agency, also told Reuters in an interview that it was too soon to draw policy conclusions from a "Reddit Rally" in GameStop Corp and other stocks, but it was "wonderful" that a new generation of investors was able to participate in the market.
Dubbed by crypto enthusiasts as the “Crypto Mom” due to her supportive stance on the asset class, Peirce has long advocated for regulators to create clear rules that would allow crypto assets to thrive without fear of breaking the law.
Stocking ammunition to fight the crab
Through the past year, many illnesses have gone undiagnosed and untreated. They have to rear their heads at some point and so, a health check-up and health insurance check-up would be wise.
The fourth of February was World Cancer Day. Life Insurance Corporation of India (LIC) unveiled a specialised cancer policy. It’s a cue we ought not to ignore.
LIC’s Cancer Cover is a benefit policy. It has lump-sum claim payouts, a monthly benefit payout and also, a premium waiver once a claim becomes payable.
Why a cancer-specific policy? Isn’t my hospitalisation policy enough to cover cancer? Yes, and no. Provided I have sufficient coverage, it can indeed pay for cancer-related hospitalisation.
Rupee rises 14 paise to 72.61 against US dollar in early trade
A good start to the day for the rupee.
PTI reports: "The rupee strengthened by 14 paise to 72.61 against the US dollar in opening trade on Monday on the back of positive macroeconomic data and upbeat local equities.
At the interbank forex market, the local unit opened at 72.61 against the US dollar, registering a rise of 14 paise over its previous close.
On Friday, the rupee had settled at 72.75 against the American currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.16 per cent to 90.33.
The rupee started on a stronger note against the greenback buoyed by upbeat risk appetite in the markets, Reliance Securities said in a research note.
On the domestic macroeconomic front, indicating some signs of recovery, industrial production recorded a positive growth of 1 per cent in December while retail inflation cooled to a 16-month low of 4.06 per cent in January.
Further, foreign portfolio investment (FPI) flows into the domestic markets and subdued dollar could also continue to support sentiments, the note said adding that Asian currencies are also trading strong this morning and could lift sentiments in the domestic markets.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 488.89 points higher at 52,033.19, and the broader NSE Nifty advanced 128.85 points to 15,292.15.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 37.33 crore on Friday, according to exchange data.
Brent crude futures, the global oil benchmark, advanced 1.73 per cent to USD 63.51 per barrel."
Cover drive in pandemic times
The ongoing COVID-19 pandemic has certainly made us all understand the importance of buying health insurance.
Moreover, even the numbers tell the same story. As per prominent global reinsurer Swiss Re’s Consumer Survey, conducted in 2020, Indian consumers are the second- most active in the Asia-Pacific region in terms of searching for and purchasing new health insurance policies.
Apart from a rise in the number of people buying health insurance, there is another noteworthy trend being observed. People have gradually started investing in health insurance policies with higher sum insured. Earlier, high-value covers constituted merely 4-5% of insurance enquiries. Today, their share has gone up to more than 50–60% as per Policybazaar.com.
Shares hit record high after strong company earnings
Another fresh high for the stock indices.
Reuters reports: "Indian shares rose to an all-time high on Monday in broad-based gains as strong December-quarter corporate earnings raised hopes of a quick economic recovery.
The NSE Nifty 50 index was 0.84% higher at 15,290.85 by 0355 GMT, while the S&P BSE Sensex was up 0.94% at 52,029.80. Both indexes hit record highs in early trading.
Thirteen of 14 sectoral indexes were higher, with banks leading the gains. HDFC Bank and ICICI Bank were among the biggest boosts to the Nifty 50.
On Friday, data showed India's retail inflation stayed within the central bank's target range for the second consecutive month in January.
Other Asian stocks also hit record highs on Monday as successful coronavirus vaccine rollouts globally boosted risk sentiment."
Vodafone Idea loss narrows to ₹4,532 cr., to raise ₹25,000 cr.
Debt-ridden Vodafone Idea on Saturday reported consolidated loss narowed to ₹4,532.1 crore in the third quarter, mainly on account of a one-time gain from stake sale in Indus Towers.
The telecom firm posted a loss of ₹6,438.8 crore in the year-earlier quarter.
Vodafone Idea Limited (VIL) sold 11.15% stake in Indus Towers on the completion of its merger with Bharti Infratel for ₹ ,760 crore and paid ₹2,400 crore to the merged entity as per its agreement during the reported quarter.