Market roundup: Recent developments and news impacting your investments on July 6

Euro/USD broke its 20-year low, while HDFC twins merger waits as Tata Motors win case against Evey. In a major development, shareholders of Britannia Industries rejected the promoter’s investment proposal, also the Service Purchasing Managers' Index (PMI), came highest since April 2011, and recovery is seen in demand for the auto sector.

Here are the details.

1. Euro currency broke its 20-year low yesterday against the US Dollar currency. This indicates recessionary concerns in the eurozone. This can negatively impact Indian companies that have a high dependency on their revenue coming from the eurozone. 

2. HDFC- HDFC Bank merger waits as RBI is yet to decide whether to grant permission over time extension for maintaining regulatory reserve requirements for the amalgamated entity. 

3. Tata Motors wins a case against Evey who unfairly received tender for supplying e-buses to Brihanmumbai Electric Supply & Transport worth Rs 3,675 crore. After winning the case, Tata Motors now can re-apply for the tender.

4. Shareholders of Britannia Industries rejected the promoter’s Rs 5,000 crore investment proposal. Shareholders of Britannia should keep a close eye on the corporate governance of the company. 

5. Service Purchasing Managers' Index (PMI) stood at 59.2 in June 2022; the highest since April 2011. This indicates a strong demand for the service sector business in India. 

6. As per the data from the Federation of Automobile Dealers Association (FADA), 1,550,855 vehicles were sold in June 2022, a 27 per cent increase over the 1,219,657 units sold in June 2021. Automobile sales saw substantial growth in June, signalling a recovery in demand for the sector which was impacted by the pandemic for the last 2 years.