India’s Inflation Hits 6.21%: What’s Driving It?

• The Indian stock market faced a challenging day as early optimism quickly waned, leading to a steep decline. Despite a positive opening on yesterday, momentum faded as investors resumed their 'sell on the rise' approach. This swift selling pressure prevented any meaningful recovery, leaving the indices weak throughout the day.

• The persistent trend of selling during rallies has kept the markets in a downward slide, hindering any substantial rebound. Notably, this pressure extended beyond India, with other Asian markets also closing with notable losses.

• The RBI is likely selling dollars to support the rupee amid a decline in Asian currencies.

UPL +2.49%

• Shares of the agrochemical company rose 2.5% as it anticipates improved volume growth, suggesting the worst may be over. In the post-earnings call, management voiced confidence in meeting its EBITDA and net-debt targets.

• The firm expects growth above industry levels in its core crops business, with destocking mostly complete and prices stabilized. This optimism has also led brokerages to maintain a positive outlook for the company.

Britannia Industires (7.30%)

• Britannia Industries shares dropped over 7% after the company, known for its JimJam brand, released a quarterly earnings report for September that fell short of expectations.

• The FMCG giant reported a consolidated net profit of Rs 531.5 crore, a 9.4% decline from Rs 586.5 crore in the same period last year, according to its exchange filing.

• India's retail inflation in October accelerated to 6.21%, crossing the RBI's tolerance band for the first time since August 2023. (ET)

• Apple aims to source 32% of iPhone's global production from India. (Inc42)

• MTNL has defaulted on a Rs 1,000 crore loan, prompting Bank of India to make a provision. (ET)

• Musk's Starlink is working on securing Indian security clearance for its satellite broadband service. (ET)

• Peak XV-backed Zetwerk is targeting a Rs 8,400 crore ($1Bn) IPO. (ET)

• Institutional investors purchased Rs 501 crore ($59.3Mn) worth of shares in Zinka Logistics Solutions' IPO. (MC)

• Swiggy shares are expected to have a modest listing post-IPO, with analysts recommending holding the stock for the long term. (MC)

• Sagility India shares ended their first session 2.3% lower, driven by market weakness. (MC)

• ACME Solar shares are expected to have a muted listing debut today. (MC)

• Inventurus Knowledge Solutions and Manjushree Technopack have SEBI approval for an IPO. (MC)

This week’s mainboard IPO schedule

• Niva Bupa Health Insurance

  • Offering Period: 07 November- 11 November, 2024

  • Listing Date: 14 November, 2024

  • Issue Price: 70-74

  • Lot Size: 200

• Zinka Logistics

  • Offering Period: 13 November - 18 November, 2024

  • Listing Date: 21 November, 2024

  • Issue Price: Rs 259-273

  • Lot Size: 54

M&A / Investments

• Industrial Investment Trust Limited is set to launch a Rs 500 crore ($59.3Mn) real estate-focused AIF. (ET)

• Digital realty platform Blox has acquired an 11% stake in advisory firm Guardians for Rs 101 crore ($12Mn). (ET)

• Godrej Industries will acquire Savannah Surfactants' food unit for Rs 76 crore ($9Mn). (BS)

• Wilson & Hughes PTE has acquired the 260-year-old travel brand Cox & Kings. (Mint)

• The Bhartia family and Goldman Sachs are in talks to acquire a 40% stake in Coca-Cola Beverages. (BS)

VC

• Physis Capital has secured a Rs 150 crore ($17.7Mn) commitment for its Rs 400 crore ($47.4Mn) venture fund. (YS)