India – August Market Update

Market News |

India’s economy continued to demonstrate resilience in August, with strong performances across multiple sectors, from technology to infrastructure. With the government’s strategic focus on expanding its space and industrial capabilities, coupled with significant investment flows, this update provides a deep dive into the key economic drivers propelling India forward. Discover the latest trends and how they are positioning India as a global growth leader.

Economic Updates

  • Directorate General of Goods and Services Tax Intelligence (DGGI) withdraws a ₹3,000 crore tax demand against 18 foreign shipping firms for 2017-18 while continuing investigations for subsequent years.
  • Indian startups raised $6.3 billion across 672 deals from January to July 2024, marking a 42.1% year-on-year increase and capturing 7% of global VC deals.
  • India’s $13 billion investment in space over the past decade has boosted GDP by $60 billion, created 4.7 million jobs, and plans further expansion including lunar missions.
  • Assam’s Commissionerate of Taxes launched an SGST Reimbursement Scheme software on August 20, 2024, to enhance transparency and ease of business operations.
  • Mumbai ranks second globally with a 13% increase in prime residential prices year-on-year, with New Delhi and Bengaluru also showing significant growth.
  • The Indian government allows up to 160 tonnes of gold imports from the UAE at concessional rates for 2024-25, reflecting a strategic adjustment to import policies.
  • Union Minister Ashwini Vaishnaw announces a ₹28,602 crore investment to establish 12 new industrial smart cities across India to boost manufacturing.

India Stock Market Update

August brought solid gains for Indian markets. The BSE SENSEX increased by 0.76% to 82,365.77 INR, while the NIFTY 50 climbed 1.14% to 25,235.90 INR. A strong performance that underscores the resilience and growth of the Indian economy!

  • Adani Power’s resolution plan to acquire Lanco Amarkantak Power for Rs 4,101 crore has been approved by the Hyderabad bench of the NCLT. 
  • Maruti Suzuki India has opened its 500th Nexa sales outlet in Bengaluru, expanding its network to 3,925 outlets across 2,577 towns and cities. Launched in July 2015, Nexa has rapidly grown, achieving a 54% increase in sales year-over-year with 5.61 lakh vehicles sold in FY 23-24. Nexa now represents nearly 30% of Maruti Suzuki’s domestic sales.
  • Sun Pharma Launches Tedizolid Phosphate Tablets in India. Sun Pharmaceutical Industries has introduced Tedizolid Phosphate 200 mg tablets in India, branded as STARIZO. This novel antibacterial, from the oxazolidinone class, is designed to treat Acute Bacterial Skin and Skin Structure Infections (ABSSSI). Sun Pharma secured development and commercialization rights from Merck Sharp & Dohme Singapore Trading.
  • Adani Power Stock Rises Nearly 2% with New Middle East Subsidiary Launch. Adani Power’s stock increased nearly 2% on August 27 following the establishment of its new subsidiary, Adani Power Middle East Ltd. Incorporated on August 26, the subsidiary is fully owned by Adani Power Limited and has an authorized capital of $27,000, divided into 27,000 shares valued at $1 each. The new company aims to invest in power, infrastructure, and related fields, though it has not yet begun operations.
  • Trent Ltd Block Deal: ₹470 Crore Worth of Shares Sold. On August 27, Trent Ltd saw a block deal where 6.8 lakh shares were sold for ₹470 crore, at ₹6,925 per share, close to its previous close of ₹6,930. This sale comes just ahead of the stock’s inclusion in the Nifty 50 index, effective September 30. Trent’s stock has more than doubled this year and has surged 244% over the past year, reflecting a 630% increase over the last three years.

Indian top gainer and top loser stocks for August:

Summary

August reaffirmed India’s strength as a rapidly growing economy, with promising developments in both public and private sectors. The expansion of infrastructure and manufacturing, along with significant foreign investments, highlights India’s evolving role on the global stage. As new opportunities and challenges emerge, keep an eye out for our next update, where we’ll continue to follow the trends shaping India’s future growth.

Disclaimer: Important information

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