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Business news live | Omicron variant poses risks to global growth: rating agencies – The Hindu

People walk past the BSE building in Mumbai   | Photo Credit: AP
Online food delivery platform Uber Eats announced on Tuesday it will quit Hong Kong at the end of 2021, ending five years of a battle for a share of the competitive food delivery market.
Uber announced the "difficult decision" in an online statement, which gave no reason for why it was winding down operations.
Global jet fuel markets remained under pressure as more countries expanded border restrictions to keep the Omicron variant at bay.
Jet fuel demand had been forecast to post a growth of 5,50,000 barrels per day to 5.9 million bpd in fourth quarter, according to the International Energy Agency.
“The real risk from the new variant is … the reimposition of more widespread flight restrictions during the winter and again reducing current global jet fuel demand of some 6 million barrels per day significantly,” energy consultancy FGE said.
Anand Rathi Wealth, part of Mumbai-based financial services group Anand Rathi, will open its ₹660-crore initial public offering (IPO) on December 2 with a price band of ₹530-550 per share.
The three-day IPO will be entirely an offer for sale of 1.2 crore equity shares by promoters and existing shareholders. Investors can bid for a minimum of 27 equity shares and in multiples of thereafter.
EdTech platform Adda247 has raised around $20 million (about ₹150 crore) in a Series B funding round led by WestBridge Capital. Existing investors, such as Info Edge, Asha Impact and JM Financials also participated.
The latest infusion of the funds will be utilised to optimise technology, product and conduct senior-level hiring. The firm offers products like live-video classes, on-demand video courses, mock tests, and books focused on government examinations.
The Omicron variant of the coronavirus could hurt global growth while also pushing prices higher, rating agencies Fitch Ratings and Moody’s Investors Service said.
The Omicron variant poses risks to global growth and inflation, especially as it comes during a period of already stretched supply chains, elevated inflation and labour market shortages, Moody’s noted.
Fitch said that it believes another large, synchronised global downturn, such as that seen in the first half of 2020, is highly unlikely but the rise in inflation will complicate macroeconomic responses if the new variant takes hold.
Reliance Capital shares tumbled 5% to its lower circuit limit of ₹18.10, a day after the Reserve Bank superseded the board of the Anil Ambani promoted company.
The Reserve Bank will shortly initiate bankruptcy proceedings against the debt-ridden NBFC in view of payment defaults and serious governance issues.
Go Fashion shares listed with a premium of nearly 91% at ₹1,316 against its issue price of ₹690. At the NSE, the stock made its debut at ₹1,310, soaring 89.85%.
The initial public offer of Go Fashion (India) Limited, which owns women’s clothing brand Go Colors, was subscribed 135.46 times last week.
The Indian rupee appreciated against the U.S. dollar in early trade after plunging to close at a five-week low in the previous session. The domestic unit opened on a strong note at 74.91, then advanced to 74.86 against the greenback, registering a rise of 21 paise.
The Indian currency was boosted by positive domestic equities and a weak U.S. dollar in the overseas markets. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.21% to 96.14.
Ingka Group, the owner of most IKEA stores globally, reported a jump in annual profit on the back of record demand for home furnishing. Its operating profit in the 12 months through August was up 31% at 1.9 billion euros.
Sales were up 6%, to above pre-pandemic levels, with online sales jumping to account for 30% of total sales, against 18% the year before.
Oil prices rose, extending a rebound from last week’s plunge on growing expectations major producers would put on hold plans to add 4,00,000 barrels per day of supply in January.
Brent crude futures gained 0.6%, to $73.91 a barrel, while U.S. WTI crude futures jumped 1%, to $70.68 per barrel. Oil dipped around 12% on Friday along with other markets on fears the Omicron would spark fresh lockdowns and dent global growth.
Star Health and Allied Insurance Company raised around ₹3,217 crore from anchor investors ahead of its initial public offering (IPO).
The IPO comprises fresh issue of equity shares worth ₹2,000 crore and an offer for sale of up to 58,324,225 equity shares by promoters and existing shareholders. At the upper end of the price band, the initial share-sale is expected to fetch ₹7,249.18 crore.
China’s factory activity grew in November, rising for the first time in three months as the surge in raw material prices and power rationing eased.
The official manufacturing Purchasing Managers’ Index (PMI) rose to 50.1 in November from 49.2 in the previous month.
Indian indices opened flat amid mixed global cues and advanced in early trade. At 9:21 A.M., the Sensex was up 413.9 or 0.72% to 57,674.48, while Nifty rose to 17,178.95, up 125 points or 0.73%.
On Monday, the 30-share Sensex closed higher by 153.43 points or 0.27% to 57,260.58. Similarly, the NSE Nifty gained 27.50 points or 0.16% to end at 17,053.95.
Asian share indices were mostly trading in green as investors became cautiously optimistic the new Omicron variant might not cause a widespread global economic disruption.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.52% higher. In Japan, Nikkei gained 0.76% and Topix added 1.06%. South Korea’s Kospi was trading 1.08% lower. Hong Kong’s Hang Seng Index was down 1.13%.
In U.S., markets reacted positively to news from President Joe Biden that new lockdowns as a result of the variant were off the table for now. The Dow Jones Industrial Average increased 0.68% to 35,135.94, the S&P 500 rose 1.32% to 4,655.27 and the Nasdaq Composite surged 1.88% to 15,782.83.
—-  Edited by John Xavier
(With inputs from Reuters, PTI and other news agencies.)
Printable version | Nov 30, 2021 2:06:58 PM | https://www.thehindu.com/business/business-news-live-asian-share-markets-rebound/article37763776.ece
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