The 15th Finance Commission is ready to fire. It has been set up by the President of India under a Constitutional requirement of Article 280 for purposes of distribution between the Union and the states of the net proceeds of taxes which are to be divided, or may be divided, between them. The state of play is vertical division of net proceeds of all tax revenues and then the horizontal distribution of the same proceeds.
Companies and Markets
Companies & Markets
India has regained the lost status of world’s fastest growing major economy, replacing China with the third quarter GDP growth vaulting to 7.2 per cent.
The market snapped two-day gains and ended with modest losses, in a volatile trading session on Tuesday. The Sensex fell 99.36 points, or 0.29 per cent, to settle at 34,346.39 while the Nifty fell 28.30 points, or 0.27 per cent, to 10,554.30.
The market breadth, indicating the overall health of the market, was weak with 1,705 shares falling and 1,029 shares rising on the BSE. The BSE Mid-Cap and Small-Cap indices fell 0.5 per cent and 0.35 per cent.
Among the sectoral indices, the BSE Finance was down 1.15 per cent and Bankex, 1.43 per cent.
In order to encourage active invesotr particpation in its newly launched cross-currency derivatives in different currency pairs, NSE said it will not levy any transaction fee on the trades for three months, starting on Tuesday.
Both NSE and BSE have launched trading in cross-currency futures and options (F&O) derivatives from Tuesday. The trading in such contracts would be available between 9:00 AM and 7:30 PM.
The move will help in direct hedging of foreign currency exposures as well as improving liquidity in existing currency contracts.
Moody's Investors Service on Tuesday affirmed the long-term local and foreign currency bank deposit rating of IDBI Bank at B1 and changed the outlook to positive from stable.
The rating agency also affirmed the state-run lender and its DIFC branch's long-term foreign currency senior unsecured debt rating at B1 and changed the outlook to positive.
Japanese automotive testing systems major, the $1.4 billion, Tokyo stock exchange-listed Horiba is planning to opens its second manufacturing centre in Maharashtra with an investment of over Rs 100 crore.
“Our business in India is growing and we are planning to open our second factory at Nagpur in Maharashtra, which is a central place for the Indian market. It will entail an investment of over Rs 100 crore,” Jai Hakhu, chairman at Horiba India told Financial Chronicle. It would manufacture medical reagents, he said.
Public sector banking stocks came under fresh pressure, as more negative news on the mega banking fraud stumbled out, hitting investor sentiments.
PSU banking stocks dragged down the market on Tuesday. The Punjab National Bank (PNB) stock took the biggest hit, losing 12 per cent of its value and ended at a 20- month low of Rs 98.35. The Nifty PSU Bank Index closed 3.49 per cent lower.
Public sector banking stocks have been facing severe selling pressure ever since the PNB scam was revealed. The Nifty PSU Bank Index has lost 15.73 per cent over the past month.
Firestar Diamond Inc, the flagship company of billionaire diamond merchant Nirav Modi, who is at the centre of India’s biggest-ever bank scam, has filed for bankruptcy in the US, Reuters reported on Tuesday. The company has listed assets and liabilities in the range of $50 million to $100 million, as per a court filing in the New York Southern Bankruptcy Court on Monday. The case has been assigned to judge SH Lane and an “order for relief entered.”
The auction process for debt-laden Essar Steel may face delays as consultancy firm Grant Thornton and legal firm Cyril Amarchand Mangaldas are yet to get full clarity over the eligibility criteria of two qualified bidders – ArcelorMittal and Numetal.
The introduction of Section 29A in the Insolvency and Bankruptcy Code (IBC) redefining the eligibility criteria for bidders has made the job of bid evaluators complicated, especially in the case of Essar Steel wherein both the bidders need to be tested whether they are connected entities or have promoted a defaulting company.
In a last ditch step to save wheat farmers from steep fall in prices, the government plans to immediately double the import duty on the grain to 40 per cent, the second hike in just over three months. The plan to hike duty has fast gained momentum even as global rates have jumped due to a fall in production.