Zomato gains after liquidation & more on today’s market

Zomato gains after it initiates liquidation

On July 24, Zomato Limited experienced a 1.12 percent increase in morning trade following the announcement of the initiation of the liquidation process for its wholly-owned subsidiary, Zomato Media Portugal, based in Portugal. The food delivery platform clarified that the subsidiary was not a significant component, and its liquidation would have no impact on Zomato Limited's turnover or revenue. Despite not providing a specific reason for the subsidiary's liquidation, it was noted that the subsidiary had no active business operations at the time of the filing on July 21.

Aarti Drugs spikes 18%

On July 24, the shares of Aarti Drugs surged approximately 18 percent during early trading, reaching a 52-week high of Rs 607.90. The significant boost in the stock's value came after the company's board granted approval for its inaugural buyback plan. Investors were particularly encouraged by the floor price set for the offer, which was considerably higher than the current market price, sparking enthusiasm among market participants. Additionally, the company's impressive performance in the first quarter of FY24 further contributed to the positive sentiment surrounding the stock.

Internationalising INR

The recently released Inter-Departmental Group (IDG) report by the Reserve Bank of India (RBI) concerning the internationalization of the Indian rupee (INR) highlights the interconnected nature of currency developments with the external sector and GDP growth. Over the past three decades, India has witnessed increased trade linkages and a rise in funds flow with the rest of the world. Despite the declining dominance of the US dollar as a reserve currency, it still accounted for 88 percent of foreign exchange turnover in 2022, according to the Bank for International Settlement (BIS) Triennial Central Bank Survey. However, in a multipolar world, there are clear indications that other countries are also gaining significance in the global currency landscape.

ITC gives in-principle nod to demerge hotels

On July 24, ITC Limited announced in a regulatory filing that its Board has given preliminary approval for the demerger of the hotels business through a scheme of arrangement. This proposed restructuring aims to establish the hotel business as an independent entity within the flourishing hospitality industry, enabling it to concentrate on its growth trajectory with an efficient capital structure. As per the approved plan, the new entity will be primarily owned by the company's shareholders, who will hold around 60 percent of the stake, while ITC Limited will retain approximately 40 percent ownership.

Conclusion

In conclusion, the financial markets witnessed mixed trends with the NIFTY 50 and SENSEX closing slightly down, reflecting cautiousness among investors due to the uncertain global economic outlook. However, positive developments were observed in individual stocks, such as Zomato experiencing gains following the initiation of its subsidiary's liquidation and Aarti Drugs seeing a significant spike in its share price after approval for a buyback plan and strong Q1 performance. Meanwhile, the RBI's IDG report emphasized the evolving nature of currency dynamics, with the Indian rupee's internationalization interconnected with the external sector and GDP growth. Lastly, ITC's in-principle approval for demerging its hotels business indicates a strategic move to establish it as an independent entity, expected to benefit both shareholders and the hospitality industry. Overall, the market remains influenced by both global and domestic factors, and investors are closely monitoring corporate performance and economic developments for their investment decisions.

Source - Moneycontrol