News Wrap | China Stimulus Disappoints; Sensex & Nifty Slip; Bitcoin Soars Past $82,000

Good evening, and welcome to Business Hook’s daily news podcast, where we bring you a roundup of the day’s top business stories. I’m Avni Raja, and today is Monday, the eleventh of November, 2024.

Starting with Asian markets—it was a mixed session as investors reacted to economic data and new stimulus measures from China. The Chinese government announced a five-year, 1.4 trillion dollar package aimed at addressing local government debt. However, analysts found this latest instalment underwhelming, casting doubt on its effectiveness in boosting growth. China’s inflation numbers further weighed on sentiment—October’s inflation rate was 0.3 percent, missing estimates and falling from September’s 0.4 percent, marking the second consecutive monthly decline. In response to these developments, China’s CSI 300 saw a minor uptick, while Hong Kong’s Hang Seng fell over 1.5 percent. Japan’s Nikkei ended the day higher.

Back home, the Sensex and the Nifty ended the day mostly unchanged, erasing gains made earlier in the session. The Sensex closed just below 74,500, while the Nifty finished above 24,100. Among the fifty Nifty constituents, 30 declined, 19 advanced, and one remained unchanged. Paints major Asian Paints was the biggest loser, down 8 percent, following a disappointing Q2 earnings report that led several brokerages to downgrade their outlook. Power Grid, on the other hand, led the gainers after the company raised its FY27 capital expenditure and capitalisation target to 40,000 crore rupees, up from the previous target of 25,000 crore rupees.

Staying with the stock market -- mutual fund data for October shows that the industry saw a net inflow of 2.4 lakh crore rupees versus and outflow in September. equity inflows hit a record high, climbing from approximately 34,400 crore rupees to nearly 42,000 crore rupees, indicating sustained domestic investor confidence amid market volatility. Additionally, Gross SIP inflows rose from 24,500 crore rupees in September to over 25,300 crore, even as Indian equities faced significant pressure from FII, or Foreign Institutional Investor, sell-offs.

In the IPO space, another South Korean giant is preparing to follow in Hyundai's footsteps. According to reports, LG Electronics, the multinational appliances and consumer electronics manufacturer, is aiming to raise 1.5 billion dollars by listing its Indian arm. The company has engaged Axis Capital, among other banks, to oversee the potential IPO. A few months ago, LG appointed Bank of America, Citigroup, JPMorgan Chase, and Morgan Stanley as arrangers for the offering, which, according to Bloomberg News, could take place as early as 2025.

Shifting gears from equities to cryptocurrencies: In the cryptocurrency space, Bitcoin has surged to new lifetime highs, surpassing the 82,000 dollar mark. The cryptocurrency rally is fuelled by Republican candidate Donald Trump’s victory in the United States presidential election. Trump has been vocal in his support to cryptocurrencies compared to Democrats, who have traditionally taken a more cautious approach to the asset class. With Trump’s return to the White House, some experts predict Bitcoin could soon break past the 90,000 dollar level.

With that, it’s a wrap on this edition of the Business Hook News Wrap podcast. We will be back tomorrow with the next edition of our podcast. You can also check out the Business Hook YouTube channel for the top business developments of the day.