The benchmark stock indices have opened the day with modest losses after Stocks drop and witnessing meaningful gains yesterday.
The airline industry is witnessing a turnaround with air traffic improving as the economy opens up.
Join us as we follow the top business news through the day.
The Phillips curve is dead
Domestic air passenger traffic improves in August
Growth in domestic air passenger traffic in August was marginally better than the previous month, rising to 24% of pre-COVID-19 levels as compared to 18% in July.
The total number of passenger trips recorded by various airlines were altogether at 28.32 lakh, a 34% increase as compared to July and 43% as compared to June. Total passenger trips in the year-earlier period were at 117.93 lakh.
Domestic flights resumed on May 25 after being suspended for two months.
SpiceJet recorded a seat occupancy of 76%, Vistara 68% and IndiGo 65.6%.
Sensex falls over 200 points in early trade; Nifty below 11,600
A modest correction to the stock indices after yesterday’s gains.
PTI reports: “Domestic equity benchmark Sensex dropped over 200 points in early trade on Thursday led by losses in financial stocks after the US Federal Reserve highlighted the uncertainty surrounding economic recovery.
The 30-share BSE index was trading 216.76 points or 0.55 per cent lower at 39,086.09; while the NSE Nifty fell 44 points or 0.38 per cent to 11,560.55.
ICICI Bank was the top laggard in the Sensex pack, shedding over 1 per cent, followed by HDFC Bank, PowerGrid, Bajaj Auto, Kotak Bank, Axis Bank and L&T.
On the other hand, HCL Tech, Tech Mahindra, Asian Paints, ONGC and Infosys were among the gainers.
In the previous session, Sensex jumped 258.50 points or 0.66 per cent to close at 39,302.85, while Nifty rose 82.75 points or 0.72 per cent to finish at 11,604.55.
Meanwhile, exchange data showed that foreign institutional investors bought equities worth Rs 264.66 crore on a net basis on Wednesday.
According to traders, domestic equities opened on a negative note tracking weak cues from global markets after the US Federal Reserve hinted at the key policy interest rate staying close to zero at least through 2023 without unveiling any additional stimulus plans.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with significant losses in mid-day deals.
Stock exchanges on Wall Street ended with a negative bias in overnight trade.
Meanwhile, global oil benchmark Brent crude was trading 0.90 per cent lower at USD 41.84 per barrel.”
Builders urge govt. aid to ensure SMEs’ survival
The construction industry is facing a survival issue and many small- and medium-sized construction firms and builders would be out of business without timely action, said Ajit Gulabchand, CMD, Hindustan Construction Company and past president of The Builders’ Association of India (BAI) at a webinar.
“Many existing projects have got delayed due to paucity of funds,” he said. Hence many projects were facing cost overruns, he added.
Painting a gloomy picture for the infrastructure, housing and construction industry, he said the government’s planned expenditure of ₹100 lakh crore in the next five years would help this industry overcome some of the challenges.
However, he said it would be impossible for the industry to offer 30% collateral that banks were now seeking for sanctioning loans.