Paytm Investor Interest Surge Executive Change; IndusInd Bank Joint Venture; Exid Clean Max Arcadia Stake; Aditya Birla Lifestyle Brands Establishment.

Opening Bell: 

Gift Nifty is down by 5.0 points in the early morning trade, indicating a negative opening for Indian stock market

On Wednesday, Asian markets mostly saw declines following the release of Japan’s corporate inflation data. The Nikkei 225 in Japan dropped by 0.18%, with the Topix also falling by 0.23%. Meanwhile, Hong Kong’s Hang Seng index futures suggested a firmer start, while South Korea’s markets remained closed.

On Tuesday, the Nasdaq and S&P 500 recorded slight increases as investors anticipated significant inflation data due the next day. However, financial stocks exerted pressure amid preparations for the upcoming earnings reports from major U.S. banks, slated to begin on Friday. The Dow Jones Industrial Average experienced a marginal decline of 9.13 points, or 0.02 percent, closing at 38,883.67. Conversely, the S&P 500 edged up by 7.52 points, or 0.14 percent, ending at 5,209.91, while the Nasdaq Composite rose by 52.68 points, or 0.32 percent, reaching 16,306.64.

Stocks News:

👉 One 97 Communications has seen a boost in interest from foreign portfolio investors, who increased their stake in the Paytm parent by 2 percent, reaching 20.64 percent in the quarter ending March FY24, up from 18.64 percent in the preceding quarter. Meanwhile, mutual funds also upped their investment in the company by 1.16 percent, bringing their total share to 6.15 percent from 4.99 percent. However, there was a decrease in foreign direct investment, which fell to 39.77 percent from 45.08 percent. In related news, Paytm Payments Bank announced the resignation of its Managing Director and CEO, Surinder Chawla, citing personal reasons and the pursuit of other career opportunities. Chawla is set to depart from his role on June 26. Following an announcement on March 1, 2024, the company revealed that it has ended nearly all agreements with Paytm Payments Bank.

👉 IndusInd Bank: A significant development has occurred with IndusInd International Holdings (IIHL), the bank’s promoter, signing a definitive agreement with Invesco India Asset Management to establish a joint venture. IIHL will take a majority stake of 60 percent in Invesco India Asset Management, leaving Invesco Limited with a 40 percent share. Both entities will be considered sponsors of the joint venture.

👉 Exide Industries is making strides in renewable energy by acquiring a 26 percent stake in Clean Max Arcadia, a special purpose vehicle (SPV) created by Clean Max Enviro Energy Solutions for solar power generation and supply. This move allows Exide to become a captive consumer of a 14.85 MWp solar capacity at its facility in Bawal, Haryana, highlighting the company’s commitment to sustainable energy.

👉 Aditya Birla Fashion and Retail has broadened its portfolio by establishing a new entity, Aditya Birla Lifestyle Brands (ABLBL). This step is part of a strategic move to demerge the Madura Fashion and lifestyle segments from the main company, indicating a focused approach towards managing its diverse business lines.

👉 Foreign institutional investors (FIIs) net sold shares worth Rs 593.20 crore, while domestic institutional investors (DIIs) bought Rs 2,257.18 crore worth of stocks on April 9, provisional data from the NSE showed.

Domestic and International Events

• India witnessed a 38% increase in steel imports, reaching 8.319 million tonnes, and became a net importer of steel in the 2023-24 financial year, as per government data. The country had brought in 6.022 million tonnes of finished steel in the previous fiscal year of 2022-23, reported by the steel ministry’s Joint Plant Committee (JPC), which gathers data on India’s iron and steel industry.

• In Japan, the corporate goods price index climbed 0.8% in March year-on-year, marking the third consecutive month of growth and accelerating from a revised 0.7% rise in February, aligning with economist predictions surveyed by Reuters. Month-on-month, the CGPI in Japan increased by 0.2%.

• Gold prices continued their upward trajectory on Tuesday, driven by ongoing buying activity and geopolitical tensions, while attention turned towards the minutes from the Federal Reserve’s policy meeting and U.S. inflation figures for clues on the potential timing of U.S. interest rate cuts. Spot gold rose by 0.1 percent to $2,341.85 per ounce, after reaching a new high of $2,365.09. U.S. gold futures saw a 0.4 percent increase to $2,360.70.

• Crude oil prices remained stable following two consecutive days of declines. Brent crude futures experienced a slight increase of 0.01% to $89.43 per barrel, and U.