Business News: Gold Prices Drop, India Leads Remittances, Sensex Retreats, and Key Stocks in Focus: Today's Market Update

On 27 June 2024, gold prices in India stay mixed. While 24-carat costs about Rs 72,000 per 10 grams, 22-carat stands at Rs 65,990 per 10 grams across the key cities like Delhi, Mumbai, and Chennai. Prices for silver were held at Rs 89,900 per kg. Gold futures were at Rs 70,987 per 10 grams, while that of silver stood at Rs 86,632 on the Multi Commodity Exchange. The trends across the globe, along with cultural demand emanating from weddings and festivals, drive gold prices in India.

Remittances to India were USD 120 billion in 2023, nearly double those of USD 66 billion to Mexico. The main factors driving remittances to India were the following: resilient economic prospects in the key destinations like the US and GCC; an improvement in the cross-border transaction arrangement with the UAE. Even as global moderation is underway, India's outlook on remittances looks strong, with projections of USD 124 billion in 2024 and USD 129 billion in 2025, underpinned by initiatives to improve the payment infrastructure and diversify migrant profiles.

27 June | Equities rose more than half a percent, recovering from a sedate start. Some of the key stocks which remained in the limelight include Dr Reddy's Laboratories, SBI, IIFL Securities. Dr Reddy's acquired the Nicotinell brands, SBI raised Rs 10,000 crore through infrastructure bonds, and IIFL under SEBI scrutiny. In telecom auctions, Bharti Airtel, Reliance Jio firm up spectrum and Vodafone Idea. Though ITD Cementation won a big contract, CSB Bank was planning a stake sale. PI Industries has announced its acquisition of Plant Health Care Plc. Ashish Kacholia invested in Inox Green Energy, and purchases of huge shares were made in Titagarh Rail by Blackrock.

The benchmark indices opened in red in the opening minutes on Thursday, tracking weak cues from the Asian markets and foreign fund outflow. BSE Sensex fell 149.41 points to 78524.84 after touching a fresh high of 78771.64. The Nifty lost 47.45 points to 23821.35. Losses were mostly led by Mahindra & Mahindra, Tech Mahindra, and others, while gainers were topped by UltraTech Cement and Reliance Industries. Whereas most of the Asian markets were trending lower, those in U.S. closed on a positive note. Foreign Institutional Investors sold equities to the tune of INR 3,535.43 cr. Brent crude lost USD 85.07 to a barrel.

World MSME Day is celebrated every year during 27 June as a culture which underscores the crucial role of Micro, Small and Mediumsized Enterprises, MSMEs, in economies globally. Enterprises represent more than 90 percent of all firms, between 60-70 percent of the workforce, and contribute significantly towards global GDP. In view of this, their contribution towards attainment of sustainable development goals cannot be overemphasized. The day is observed by stakeholders to propagate support for MSMEs as promoters of jobs and economic prosperity.

The Ministry of Labour & Employment has sought a detailed report from the state labour department following allegations that Foxconn's Sriperumbudur iPhone assembly plant discriminated against married women from operations, flouting equal employment laws. Foxconn allegedly does not allow induction of married women into the production process, attributing the official stance to family commitments—binary actions in complete contrast to its corporate policy that mandates no discrimination between employees. The Ministry asked the state authorities for clarification of the matter and directed the Regional Chief Labour Commissioner to rush an "accurate account" to the Centre.

The country's second-largest IT services exporter, Infosys, came under the scanner as its CEO Salil Parekh agreed to settle insider trading violation charges. In an announcement on Thursday, SEBI said Parekh has agreed to pay 2.5 million rupees for inadequate controls to prevent insider trading. This development assum es significance at a time when SEBI is strict in implementing its regulations aimed at ensuring that markets across India's financial markets are both transparent and free from unfair practices.

Shares of IIFL Securities plummeted 7 per cent to Rs 219.45 after the probe by SEBI against Sanjiv Bhasin, asociated with the brokerage firm over alleged stock manipulation. SEBI is investigating Bhasin in suspected cases of front-running, an unethical practice that brokers commit by trading on pending orders of clients. His contract with IIFL was prematurely terminated on account of health reasons on June 17, 2024, ahead of its scheduled end on June 30, 2024. IIFL said that Bhasin was not a board member and did not provide further details on the investigation.