MARKET OVERVIEW :

Currency Market Overview Dec 22, 2023

Markets up: Nifty @ 21,384: BSE: 71215
Rupee rises 3 paise to trade at 83.25 against the US dollar

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% higher at 101.85.

Thank you for reading this post, don't forget to subscribe!

Rupee opened at 83.24 a dollar as compared to its previous close of 83.28.The Indian rupee rose 3 paise to 83.25 against the US dollar in early trade on Friday, tracking lower greenback on the back of easing US Treasury yields. The local currency opened at 83.24 a dollar as compared to its previous close of 83.28.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% higher at 101.85.On Thursday, the rupee settled at 83.28 against the dollar.

However, outflow of foreign funds and increased volatility in crude oil prices triggered by geopolitical situation put pressure on the Indian currency, forex traders said.

“Dollar is moving south as fresh economic data from US signaled that economy is feeling the heat of aggressive rate hikes, which may prompt US Fed to start cutting rates in early 2024. Additionally, investors will remain cautious ahead of core-PCE price index to get new insight into whether inflation is continuing to moderate, as it would boost chances of rate cuts in March 2024,”.It expects USDINR to slip towards 83.10 level as long as its stays below 83.35 level.

Meanwhile, global oil price benchmark Brent crude climbed 0.87% to $80.08 per barrel.

On the domestic front, the Indian stock market indices traded higher following positive cues from global peers.The 30-share BSE Sensex was trading 267.25 points, or 0.38%, higher at 71,132.35, while the Nifty rose 98.60 points, or 0.46%, to 21,353.65.Foreign institutional investors (FIIs) were net sellers in the equity market on Thursday as they offloaded shares worth ₹1,636.19 crore, according to exchange data.

MOIL shares rise over 4.5% on strong surge in manganese ore production

MOIL, the largest producer of manganese ore in India, achieved a production increase of 26% and sales that broke a multi-year record. The company is strategically increasing investments to meet growing demand in the manganese ore industry.

With a remarkable year-to-date return of 84%, soaring from ₹170 per share to ₹312.60, MOIL’s shares are delivering their best annual performance since listing in 2010. 

In early Friday trading, shares of MOIL, the country’s largest manganese ore producer, rose by 4.60% to reach ₹314.40 apiece following the company’s 2023 production update.

In a filing on Thursday, the company announced that it had achieved a production of over 16 lakh tonnes in the current calendar year so far, marking another significant milestone for MOIL. This production figure represents a remarkable 26% increase compared to the previous record set in 2019.

Additionally, the company reported that sales for the calendar year up to December 20, 2023, have surpassed 14 lakh tonnes, breaking the multi-year record set in 2007.

LIC share price jumps over 7% to hit a 52-week high on getting a one-time 25% shareholding exemption from govt

LIC share price jumped over 7 per cent to hit a 52-week high after govt grants exemption to achieve a minimum public shareholding of 25 per cent.

LIC share price has gained nearly 12 per cent this year so far. 

LIC share price jumped over 7 per cent to hit its fresh 52-week high of ₹820.05 in morning trade on BSE on Friday, December 22, a day after the company said the government had granted a one-time exemption to it to achieve minimum public shareholding of 25 per cent.

LIC share price opened at ₹805.05 against the previous close of ₹764.55 and soon jumped 7.3 per cent to hit its 52-week high. Around 9:50 am, the stock was 5.49 per cent up at ₹806.50.

  LIC share price has gained nearly 12 per cent this year so far (as of December 21 close) while the equity benchmark Sensex has gained over 16 per cent in the same period.

Life Insurance Corporation (LIC) of India can now achieve a minimum public shareholding (MPS) of 25 per cent by May 2032 as the government has granted a one-time exemption to the life insurance major in this regard.

 LIC can achieve minimum public shareholding of 25% by May 2032 as govt grants one-time exemption

LIC said in a regulatory filing to the stock exchanges on Thursday, December 21 that the Department of Economic Affairs has decided ‘in the public interest’, to grant a one-time exemption to achieve 25 per cent MPS within 10 years from the date of listing i.e., till May 2032.

As Mint reported earlier, the capital markets regulator the Securities and Exchange Board of India (SEBI) has granted five years to large-cap companies for achieving the MPS limit. However, media reports said earlier this year that the government is likely to extend the 25 per cent public float exemption for the life insurer much beyond five years.

“For issuers with a post-issue market capital exceeding ₹100,000 crore, the requirement of minimum public float will be reduced from 10 per cent of post-issue market capital to ₹10,000 crore plus 5 per cent of the incremental amount beyond ₹100,000 crore,” said the market regulator.

LIC, which debuted on the bourses on May 17, 2022, was originally required to meet the 25 per cent MPS rule by 2027. However, the government has granted an extension of 10 years to India’s largest life insurer for the same.