Let’s start with Asian equity markets – It was a sea of green in Asia as investors heaved a sigh of relief following some positive data cues from the US economy.
Initial jobless claims in the US slipped, and the second-quarter GDP reading was revised higher to three percent. This led to a relief rally in Asia, where Hong Kong’s Hang Seng surged by over one percent. China’s Shanghai Composite and Japan’s Nikkei were also up by around seven-tenths of a percent each.
Back home, the Sensex and the Nifty ended higher for the third consecutive week. Both indices also surged to lifetime highs during the session, with the Sensex soaring to 82,637 and the Nifty rising to 25,268. While the two indices closed off those highs, they ended higher for the twelfth straight session. Cipla and Bajaj Finance were the key Nifty gainers, up by over two percent each. Tata Motors was the biggest laggard, down by one percent in Friday’s trade.
In stock-specific action, SpiceJet slipped by almost six percent in today’s session and closed at 62.5 rupees apiece. The airline is facing turbulent times and is sending 150 cabin crew members on leave without pay for three months. Meanwhile, aviation regulator DGCA has placed the airline under enhanced surveillance. This means it will see increased spot checks and night surveillance to ensure the safety of its operations.
While SpiceJet has hit an air pocket, the Tatas have a reason to cheer – The government has cleared Singapore Airlines’ FDI proposal for the merger of Vistara with Air India. Following this nod, Vistara informed its passengers that Vistara flights will only operate until the 11th of November. From the 12th of November, all flights of the merged entity will be operated as Air India. Bookings for these flights will also have to be made via the Air India website and app.
Shifting focus to the policy space – The GST Council is likely to exempt term life insurance from the Goods and Services Tax when it meets on the 9th of September. According to a Moneycontrol report, quoting an unnamed government official, the decision could be formalised at the upcoming GST Council meeting. However, the GST Council is unlikely to make any change in taxation for investment-linked insurance plans.
With that, it’s a wrap on this edition of the Business Hook News Wrap podcast. We will be back on Monday with the next edition of our podcast.