From diplomatic uncertainties to significant political events and major economic announcements, this week has been eventful. NDTV Profit brings you the major events shaping businesses, industries, and global markets.
The week began with the India-Canada diplomatic relations taking a severe hit as India withdrew its high commissioner and other officials from Canada. This decision came amid escalating tensions between the two nations regarding the assassination of Khalistani separatist Hardeep Singh Nijjar in Canada earlier. Additionally, India expelled six Canadian diplomats, further straining the diplomatic relations between the countries. Prior to this, on Monday, Canada had expelled six Indian diplomats and consular officials in connection with the same probe.
India also released a strongly worded statement on Monday, where it firmly rejected a diplomatic communication from Canada that labelled the Indian high commissioner and other diplomats as "persons of interest" in an investigation. India described the claims as "preposterous imputations" and accused the Justin Trudeau government of pursuing a political agenda.
Flight Bomb Scare
As the week progressed, a series of bomb threats targeting Indian airlines led to significant disruptions, affecting at least 20 flights throughout the week.
On Wednesday, an Air Akasa flight bound for Bengaluru was diverted to Delhi due to a bomb threat. The day before, Singapore's Air Force deployed two fighter jets to escort an Air India Express aircraft also in response to a bomb threat. Additionally, an Air India flight from Delhi to Chicago was forced to land at a Canadian airport as a precaution.
Civil Aviation Minister Ram Mohan Naidu Kinjarapu stated on Wednesday that the ministry is closely monitoring the situation and is making "every possible effort" to ensure flight safety. He emphasised the commitment to maintaining high security standards and prioritising passenger safety.
Strongly condemn the recent bomb threats to Indian air carriers. We are closely monitoring the situation and ensuring that every necessary measures are taken against such actions. We are Committed in maintaining the highest security standards and passenger safety remains our… pic.twitter.com/9r4UKELGls
Reliance Bonus Issue
Turning to financial breakings for the week, Reliance Industries Ltd. announced 1:1 bonus shares, for which the record date has been set Oct. 28. This move will benefit approximately 35 lakh shareholders, allowing them to double their holdings at no additional cost.
With the announcement of a 1:1 bonus issue, shareholders will see their number of shares double. For instance, an investor holding 100 RIL shares will receive an additional 100 shares, resulting in a total of 200 shares.
ECB Rate Cut
In major global events apart from India-Canada escalating diplomatic tensions, the European Central Bank reduced interest rates for the third time this year on Oct 17, responding to a quicker-than-expected decline in inflation and aiming to support the struggling economy.
The key deposit rate has been cut by a quarter-point to 3.25%, in line with analyst predictions from a Bloomberg survey. The ECB indicated that the process of stabilising prices is expected to be completed in the course of next year, adjusting its previous timeline from the latter half of 2025. However, officials did not provide specifics on the timing or pace of future rate reductions.
Hyundai Motor IPO
The much-anticipated initial public offering of Hyundai Motor India also hit the Dalal Street this week but to much surprise, it experienced a slow start, with investor interest lagging in the first two days of the bidding process. However, by Day 3, qualified institutional buyers stepped in, driving the overall subscription to 237% by the end of the final day.
The IPO was open for subscription from Oct. 15 to Oct. 17. It began with just 18% subscription on Day 1 and rose to 42% by the end of Day 2. Notably, the offering recorded the lowest retail subscription among recent large IPOs, with retail participation at only 0.50 times. The IPO is expected to list on the exchanges on Oct. 22
Retail Inflation And Wholesale Inflation
Adding concerns to inflation, retail inflation in India reached a nine-month high in September, driven by rising food prices and a diminishing base effect. According to the National Statistical Office, the consumer price index rose to 5.49% in September, up from 3.65% in August, and slightly below the 5.69% recorded in December 2023.
In parallel, wholesale inflation also gained momentum, with the wholesale price index increasing to 1.84% in September, up from 1.31% in August. This rise was primarily attributed to a significant surge in food price inflation, which jumped to 11.53% from 3.11% the previous month.
Earnings Season In Full Swing
HCLTech reported an 11% year-on-year increase in net profit for its second quarter in fiscal year 2025, reaching Rs 4,235 crore, surpassing analysts' expectations. Read more here
Wipro Ltd. also beat estimates and reported a 6.2% sequential rise in its net profit to Rs 3,227 crore in the quarter ended Sept. 30, 2024. Read more here
Infosys Ltd., India's second-largest software exporter, announced a 5% increase in its consolidated net profit for the second quarter. Read more here
Bajaj Auto Ltd. clocked its highest ever quarterly revenue in July-September 2024 on the back of premiumisation and electrification. Read more here
Nestle India Ltd.'s net profit fell marginally in the second quarter of financial year 2025, meeting analysts' estimates. Read more here
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