Mumbai

Rupee slips 53p on Patel’s exit

The rupee crashed on Tuesday morning amid state election results and the shock exit of Reserve Bank of India governor Urjit Patel but later recovered some ground on government support. The rupee opened weak at 72.42, tumbling to a four-week low of 72.44, down 110 paise in the morning trade.  However, the currency made a smart recovery, as state-owned banks sold dollars and it ended the session at 71.87, down 53 paise.

Patel had resigned after market hours on Monday evening. Bonds too fell sharply earlier in the day as Patel's abrupt exit shocked investors.

Stocks rally after a knee-jerk fall

The stock market opened deep in the red but quickly rebounded and ended in the green despite the RBI governor’s resignation and the ruling BJP trailing the opposition Congress in state election results.

The equity benchmark indices witnessed huge volatility in Tuesday’s eventful trading session.

The Nifty 50 Index had a knee-jerk reaction, opening gap-down on the news of sudden resignation of RBI governor Urjit Patel on Monday evening and on uncertainty ahead of the state elections outcome.

Jet Airways in codeshare pact with Saudi carrier Flynas

Private carrier Jet Airways on Monday announced signing of an agreement with Saudi budget airline Flynas to operate codeshare flights in each other’s territories.

The codeshare pact is effective December 11, Jet Airways said in a release.

Codesharing allows an airline to book its passengers on its partner carriers and provide seamless travel to destinations where it has no presence.

Icra assigns negative outlook to domestic airline industry

Rating agency Icra on Monday assigned a ne­gative outlook to the domestic airline industry even as it expects the pass­e­nger traffic growth to remain healthy at about 15-16 per cent in the medium-term.

While all the three listed local carriers - Jet Airways, IndiGo and SpiceJet - are in the red, the domestic air passenger traffic has consistently seen a double-digit growth for the 50th consecutive month in October.

HCL’s IBM deal puts focus on other IT firms’ moves

HCL Technologies’ announcement of the big fat acquisition of $1.8 billion (Rs 12,700 crore) IBM software products, the largest purchase by an Indian IT services company till date, shifts focus on reserves and surplus of other top Indian information and technology (IT) companies. As on September 30, 2018, HCL Tech had huge reserves and surplus on their books, which, so far, has mostly been used for share buybacks.

Poll jitters: Sensex crashes 713 pts, Nifty’s 2018 gains wiped out

With the massive sell off on Monday following the exit polls suggesting setback for BJP in the state polls, the Nifty 50 has given off all the gains made during 2018. The widely tracked index turned red year-to-date (YTD) as it shed 10 per cent from the peak of 11,760 touched early this year.

Uday Kotak fights back

Private sector lender Kotak Mahindra Bank has moved the Bombay High Court against the Reserve Bank of India’s (RBI) decision to restrict it from reducing promoter holding through preference shares.

Money market could react negatively to Patel exit

The financial market is likely to react sharply to news of the abrupt resignation of Urjit Patel as Reserve Bank of India governor even as worries over state election results are keeping the bourses on tenterhooks.

Analysts expect that the equity market may open 2 per cent lower on Tuesday (today), while the currency market will also react negatively. The currency is already depreciated by 1.5 per cent after the India market closure (5pm) in the non-deliverable forward offshore market.

Guv Patel exits amidst liquidity firestorm

RBI governor Urjit Patel resigned suddenly on Monday from his post, following a public spat with prime minister Narendra Modi’s government about alleged interference.

The RBI governor cited “personal reasons” for his decision, but the fact that he was annoyed by repeated government efforts to influence the central bank’s policy had become an open secret.

Equity market factors in exit poll results

The equity market is bracing for choppy trading in the medium term as state election results are likely to spring surprises for the BJP going by the exit polls.

Investors have turned cautious ahead of the election results for five state elections to be announced on Tuesday which may set the tone for general elections in 2019.

The S&P BSE Sensex fell 1.44 per cent and the NSE Nifty 50 Index dropped 1.68 per cent a week after it rose to a four-week high.

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