Companies and Markets

Companies & Markets

IOC to buy back shares for Rs 4,435 cr; pay Rs 6,556-cr dividend

State-owned Indian Oil Corp (IOC) will buy back 29.76 crore shares for about Rs 4,435 crore and spend another Rs 6,556 crore on paying an interim dividend to shareholders as the government taps cash-rich PSUs to meet its budget deficit.

The board of the country's largest oil firm on Thursday approved buyback of up to 29.76 crore equity shares, or 3.06 per cent, at Rs 149 per  share, IOC said in a regulatory filing.

Binani Cement renamed UltraTech Nathdwara

Aditya Birla Group firm UltraTech Cement on Thursday said it has changed the name of Binani Cement to UltraTech Nathdwara Cement after acquiring the debt-ridden company.

The National Company Law Appellate Tribunal had on November 14 approved the Rs 7,950-crore offer of UltraTech for the Rajasthan-based firm.

Avoid bold bets

Sensex and Nifty posted gains on Thursday. Positive factors such as the November inflation at a 17-month low of 2.3 per cent and October IIP growth rate of 8.1 per cent helped the indices to post gains. Easing inflation gives room for the RBI to decrease interest rates.

The Sensex rose 150 points, or 0.42 per cent to settle at 35,929.64. The Nifty 50 rose 53.95 points, or 0.50 per cent, to settle at 10,791.55. Among secondary barometers, the BSE Mid-Cap Index rose 0.82 per cent and BSE Small-Cap rose 0.65 per cent.

Govt mulls Rs 30,000-crore capital infusion in PSBs

The government is weighing additional capital infusion of up to Rs 30,000 crore in public sector banks since the lenders find it difficult to raise required funds from the markets, sources said.

As part of the capital infusion plan announced by the finance ministry in October 2017, the government envisaged that public sector banks (PSBs) would raise Rs 58,000 crore from the stock markets by March 2019 to meet Basel III norms.

However, due to subdued market conditions, banks have been unable to raise enough funds from the markets so far.

Liquidity constraints to tighten credit supply, growth: Moody's

Liquidity constraints faced by some non-bank financial institutions (NBFIs) will tighten credit supply and slow India’s economic growth to a little over 7 per cent for the current fiscal, Moody's Investors Service said on Thursday.

"...The liquidity constraints faced by some NBFIs in India, after the default of Infrastructure Leasing & Financial Services Ltd (IL&FS) in September 2018, will likely tighten overall credit supply in the country," Moody's said in a statement.

Worst is behind for NBFCs

Though the worst seems to be over for the NBFC sector, growth will taper for non-banking finance companies in the second half of this financial year. The scars left behind by the September-October crisis will have ramifications on growth, asset quality and eventually the funding profile of the NBFCs. Companies will now focus more on asset liability management (ALM) to keep up liquidity flows to the sector, says a report.

Yes Bank defers naming new chief, stock slumps 6.48%

Shares of Yes Bank on Thursday plunged over 6 per cent on the bourses, as the private sector lender could not announce the name of its new managing director and chief executive officer at the board meeting. Shares fell 6.48 per cent to Rs 174.70 on both the BSE and the NSE after rising close to 15 per cent in the last three sessions.

Support seen at 10,630

The Nifty and the Sensex posted record gains in Wednesday’s session since November. Investors have welcomed the decision of quick appointment of RBI governor. Factors such as Asian markets trading higher and the ending of election uncertainty pushed the Indian market higher.

Central bank autonomy sacred, says Arvind Subramanian

With the reins rpt reins of the RBI governorship passing to  ex-bureaucrat Shaktikanta Das, former chief economic advisor Arvind Subramanian (in pic) on Wednesday said central bank autonomy is "sacred", which should not be compromised.

He said progress made on the steps taken by predecessor Urjit Patel to restore financial system integrity will be a key measure to assess institutional integrity.

Swamy objects to Das appointment, Chidambaram, too

BJP MP Subramanian Swamy has objected to the appointment of Shaktikanta Das as the new RBI governor for his “corrupt activities.” Swamy, who is an economist and lawyer, has reportedly written a letter to Prime Minister Narendra Modi alleging that Das worked closely in "corrupt activities" with P Chidambaram, his bete noire and senior Congress leader.

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