Companies and Markets

Companies & Markets

Asian firms’ confidence sinks to near 3-year low: Poll

Confidence among Asian companies slumped to the weakest in almost three years in the third quarter as businesses feared blowback from a worsening global trade war, a Thomson Reuters/Insead survey showed. Representing the six-month outlook of 104 firms--which included India’s Reliance Industries---the Thomson Reuters/Insead Asian Business Sentiment Index fell to 58 for the July-September quarter, its lowest since the fourth quarter of 2015, from 74 three months before.

Fitch revises Tata Motors outlook to negative

Fitch Ratings on Thursday said it has revised the outlook on Tata Motors to 'negative' from 'stable' on expectations that higher capital spending at Jaguar Land Rover will result in negative free cash flow in the current and the next financial year.

In a statement, Fitch said it believes that a disorderly Brexit (UK exiting from European Union) could significantly disrupt JLR's supply chain and affect the company's earnings and cash generation.

It affirmed the long-term issuer default rating of Tata Motors' at 'BB+'.

Curbs soon on non-essential imports to tame Rupee

India is likely to soon announce curbs on imports of “non-essential” items to support the rupee, three government sources said, as prime minister Narendra Modi’s administration scrambles to tackle growing concerns over the economy. The government could raise import duties on gems, jewellery and electronics but is unlikely to touch products used in sectors such as textiles, chemicals and pharmaceuticals, said one of the sources with knowledge of the matter.

CREDIT RATING AGENCIES FAILED TO SPOT IL&FS MESS

Lenders, investors and regulators have reasons to cast doubts on the credibility of credit rating agencies. Top rating agencies such as Icra, CARE and India Ratings now face serious credibility issues after having failed to spot the liquidity crisis brewing in the IL&FS group.

All the agencies were rating bonds and loans of IL&FS and group entities at higher investment grade such as ‘AAA’ until July, but suddenly this month the company’s loans and bonds have been placed in the ‘default’ or D grade.

Volatility likely to heighten near-term

The market fell for the third consecutive day after making gains in the early part of the trading session. The falling rupee continued haunt investor sentiments as the Sensex fell 169 points, or 0.45 per cent to close at 37,121.22. The Nifty 50 index lost 44.55 points, or 0.39 per cent, to end at 11,234.35, its lowest closing level since July 26. Among secondary indices, the BSE Mid-Cap index fell 0.72 per cent while the BSE Small-Cap index fell 0.98 per cent.

RBI trims term, Rana Kapoor has to step down this year

The Reserve Bank has curtailed the term of Yes Bank's founding CEO Rana Kapoor (in pic) and asked the private sector lender to look for his replacement by January 2019. Kapoor, who has been managing director and CEO since the bank's inception in 2004, had sought a three-year extension till August 31, 2021. However, the sector regulator did not agree to the request and permitted him to continue only till January 2019.

ITC Hotels acquires Park Hyatt Goa Resort

ITC Hotels on Wednesday said it has acquired Park Hyatt Goa Resort and Spa.

The acquisition is a part of an auction held by Industrial Finance Corporation of India (IFCI) for Rs 541 crore in 2015, and upheld by the Supreme Court in its March 19, 2018 judgement, ITC Hotels said in a statement.

The property spread across 45 acres is currently under minor renovation to comply with ITC's sustainability practises, the luxury hospitality chain said.

Paper stocks jive in subdued market

Paper stock prices spurted on Tuesday as part a broader rally in the segment for the past six months. Chinese regulatory changes, which led to an increase in both domestic and global paper prices, have been building momentum in paper stocks.

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