Today's Stock Market News - 17/09/2024 | Aaj ki Taaza Khabar | Parimal Ade

Summary

This episode of the World Economy series discusses the latest financial news, including potential interest rate cuts by central banks and their impact on markets. The Federal Reserve is expected to cut rates by 25 basis points, while other central banks may follow suit. The episode also covers economic data from Brazil, South Africa's possible first-time interest rate cut post-COVID, and Japan's likelihood of raising rates. The Indian economy's growth, air traffic, and renewable energy sector are highlighted, with India seen as a leader in the solar energy revolution. The video also touches on the Indian rupee's stability, the stock market, and significant business developments like Bajaj Housing Finance's listing and Tata Steel's expansion plans.

Takeaways

• 🌐 The Federal Reserve is anticipated to cut interest rates by 25 basis points, with markets not reacting favorably to a potential 50 basis points cut.
• 🏦 Deutsche Bank is speculated to not cut rates, but the policy rate could be maintained, with a possible rate cut in the November policy action.
• 🇿🇦 The South African central bank may cut rates for the first time post-COVID, influenced by the global rate hikes following the Russia-Ukraine war and oil price increases.
• 🌏 The Bank of Japan is likely to keep rates unchanged this week, but there's a possibility of another rate hike.
• 💹 The Indian economy is discussed, with a focus on air traffic being at an all-time high, international flight demand increasing, and Indian Airlines launching 52 new international routes in the past four years.
• ⚡ India is positioned as a top bet for the solar energy revolution, with a target of 500 gigawatts by 2030 and a new scheme introduced by the Prime Minister for free electricity.
• 💼 RBI Governor states that the Indian Rupee has been among the least volatile currencies since 2023, despite some arguing that India is in a depression.
• 🏢 Bajaj Housing Finance has listed with a market cap of 9000 crores, adding value in a single day, and is considered one of the best listings.
• 🏭 Tata Steel is set to expand its Odisha plant, increasing production capacity and focusing on mineral-rich states for diversified growth.
• 🔄 Jake Tyre's merger with Armstrong Industries has been approved, which could lead to operational synergies, cost reduction, and enhanced shareholder value.
• 📈 Bonus shares are now credited to investors' accounts two days after the record date, streamlining the process and reflecting the growing influence of technology in the financial sector.

Q & A

What is the expected action of the Federal Reserve regarding interest rates?

The Federal Reserve is expected to cut interest rates by 25 basis points, but there is speculation that if a 50 basis point cut happens, it could be seen as negative news by the markets.

What economic data is anticipated from Brazil that might affect the Deutsche Mark rates?

Economic data from Brazil is expected that could influence the Deutsche Mark rates, but it is not expected to be negative, unlike the situation with the Federal Reserve's predictions.

What significant action is South Africa's central bank expected to take for the first time post-COVID?

South Africa's central bank is expected to cut interest rates for the first time post-COVID, similar to actions taken by other countries after the Russia-Ukraine war and the subsequent oil price hikes.

What is the Bank of Japan's stance on interest rates this week?

The Bank of Japan is unlikely to change interest rates this week, but there is a possibility that Japan might raise rates again.

How is the carry trade and its impact on emerging markets discussed in the script?

The script mentions that the carry trade and its impact on equity markets, especially in developing markets where a lot of carry trade money is invested, should be watched closely.

What adjustments have Goldman Sachs and Citi Group made to their growth predictions for China?

Both Goldman Sachs and Citi Group have lowered their growth predictions for China for the current calendar year from 4.9 to 4.7 percent.

What is the current status of India's air traffic and the demand for international flights?

India's air traffic has reached an all-time high, with a significant increase in demand for international flights. Indian Airlines have launched 52 new international routes in the past four years.

What is India's position in the solar energy revolution according to the script?

India is considered one of the best bets for the solar energy revolution, with a target of 500 gigawatts by 2030 and a new scheme introduced by the Prime Minister called 'PM Surya Jyoti' for free electricity.

How has the Indian Rupee performed compared to other emerging market currencies?

The Indian Rupee has shown stability compared to other emerging market currencies, especially when oil prices were high. Foreign institutional investors have also brought in significant funds in the last two years.

What is the significance of the Bajaj Housing Finance listing in the stock market?

Bajaj Housing Finance's listing has been significant, with a market capitalization addition of 9000 crores in a single day, and it received one of the highest responses ever for a particular IPO, suggesting strong investor interest.

What is the current status of Tata Steel's investment in Odisha?

Tata Steel has made significant investments in Odisha, with plans to expand its Kalinganagar plant from 3 million tons to 8 million tons, and there are expectations of further expansion up to 16 MTPA in the coming years.