In a serious setback to Infosys, known for its ethical way of conducting business, an arbitration tribunal has directed the tech major to pay an outstanding exit allowance of Rs 12.17 crore with interest to its former CFO Rajiv Bansal (in pic).
Companies and Markets
Companies & Markets
Despite a growth in occupancy levels, the growth in average room rates (ARR) has been muted for the hotel industry in the first half of the year. Lower estimate of tourist arrivals is casting shadow on the hospitality industry’s ability to increase ARRs during the upcoming season.
The ARR for the domestic hotel industry stood at Rs 5,500 in the June quarter and witnessed a muted 2-3 per cent growth. However, there was a three per cent rise in occupancies at 63 per cent, as per an Icra research report.
Markets regulator Sebi has revised the regulations for share buyback to provide more clarity on the requirement to make public announcements.
The markets watchdog, separately, said credit rating agencies will not carry out any activity other than the rating of securities offered through public or rights issue.
Goldman Sachs, which was strategically overweight on India from March 2014, has downgraded Indian equities, citing rich valuations and upcoming elections. The New York-based financial services multinational has lowered its investment view on Indian equities a notch down to ‘marketweight’ from ‘overweight’.
“The risk reward for Indian equities is less favourable at current levels,” said Sunil Koul, analyst at Goldman Sachs. “We lower our investment view from ‘Overweight’ to ‘Marketweight’.”
Non-banking finance companies (NBFCs) have seen a 20-35 per cent correction in their price-to book (P/B) multiples this year. P/B multiples are arrived at by dividing price per share with book value per share. A major reason for the correction in multiples was the market’s concern over NBFC margins in a rising interest regime.
The market fell sharply as fears of escalating trade war hit investor sentiments and the Sensex plunged 505 points, or 1.33 per cent, to close at 37,585.51. The Nifty 50 Index fell 137 points, or 1.19 per cent, to end at 11,377.75.
The BSE Mid-cap Index fell 0.76 per cent while the Small-cap Index fell 0.05 per cent, both the indices outperformed the Sensex. The market breadth was negative with 1,282 shares rising and 1,441 shares falling.
Fears of trade war escalating and a downgrade of Indian equity by a leading global brokerage house spooked the domestic market, with benchmark Sensex plunging over 505 points. The barometre plunged 505 points or 1.33 per cent to close at 37,585.51, Nifty 50 fell 137 points or 1.19 per cent to end at 11,377.75. Reliance, HDFC Bank, Sun
Pharma and SBI suffered major losers.
Petrol and diesel consumers will have to suffer more pain. They will have to pay through the nose to run their automobiles, thanks to the Modi government’s eagerness to meet fiscal deficit target. The government is banking heavily on the revenue buoyancy to present a rosy fiscal picture before the Lok Sabha elections, but the narrative seems to be a wee bit different.
Measures announced by the government over the weekend failed to boost sentiment in the forex market as the rupee declined sharply by 67 paise against the US dollar on Monday, snapping gains registered in the past two consecutive sessions. The rupee ended at 72.51 against the greenback, down 0.90 per cent from its previous close of 71.86.
Taking the banking sector reform forward, the government has decided to merge three-state owned lenders — Dena Bank, Vijaya Bank and Bank of Baroda — through a share-swap deal to gain scale and size and tackle alarmingly high NPA levels. The merged entity will be the third largest bank after SBI and PNB in terms of size, deposits and lending and will continue to receive capital support from the government, financial services secretary Rajeev Kumar said on Monday.