Companies and Markets

Companies & Markets

Increase in truck axle load to impact CV sales

The road transport ministry’s notification on Monday to increase truck axle load by 10-25 per cent across various categories will impact overall commercial vehicle segment in India -- the world’s fourth biggest automobile market.

While the government move would lead to substantial gains for the medium and heavy commercial vehicle (M&HCV) segment in the short term, it is likely the light commercial vehicle (LCV) segment, or more specifically the small CV sub-segment, will be impacted adversely by a demand shift to heavier machinery.

Trade with positive bias

The market ended with moderate gains on the back of falling global oil prices. The Sensex gained 196 points, or 0.54 per cent, to close at 36,519, while the Nifty ended 71 points, or 0.65 per cent, higher at 11,008.05. Both the BSE Mid-Cap Index and Small-Cap Index outperformed the Sensex as they gained 2.14 per cent and 1.12 per cent, respectively. The market breadth was positive with 1,442 shares rising and 1,123 shares falling.

CARE upgrades Srei Ratings

CARE Ratings has upgraded its rating on Srei Equipment Finance (SEFL), one of India's largest equipment financing institutions.

CARE Ratings, according to Srei officials, has upgraded its rating on the firm's long term facilities to 'CARE AA' with stable outlook enhanced from 'CARE AA-' with positive outlook.

The rating upgrade factors the overall improvement in the financial risk profile of SEFL, marked by significant growth in disbursements in financial year 2017-18, improvement in profitability, collection efficiency and asset quality indicators. 

Govt nod sought for majority stake sale to LIC

The board of IDBI Bank on Tuesday decided to seek the government's decision on LIC's proposal to acquire up to 51 per cent stake in the debt-ridden bank.

The board meeting took place a day after insurance behemoth LIC got approval of its board to increase its stake in the bank up to 51 per cent.

In a regulatory filing, IDBI Bank said it has received a letter from Life Insurance Corporation of India (LIC) expressing its interest in acquiring 51 per cent controlling stake in IDBI Bank, as a promoter through preferential allotment of shares/ open offer.

Rs 11,336 crore to be infused in 5 PSU banks

The finance ministry on Tuesday approved infusion of Rs 11,336 crore in five state-owned lenders including PNB, Corporation Bank and Andhra Bank to help them meet regulatory capital requirement, sources said.

This is the first ever capital infusion in the current fiscal and the remaining amount of Rs 53,664 crore would be disbursed during the course of the year.

As per the plan, the sources said, Punjab National Bank (PNB), hit by the Nirav Modi scam, will get the highest amount of Rs 2,816 crore out, while Allahabad Bank to get Rs 1,790 crore.

IDBI deal: Give LIC some time, says CEA

Insurance major Life Insurance Corporation (LIC) of India must be allowed time to see if its acquisition of 51 per cent controlling stake in the loss-making and NPA-ridden IDBI Bank impacts the largest life insurer or it is able to extract some value, said outgoing chief economic advisor Arvind Subramanian.

Buy until 10,800 is not broken

The market started the week on a negative note, with the Sensex losing 217.86 points, or 0.6 per cent, to settle at 36,323.77, while the Nifty 50 Index plunged 82.05 points, or 0.74 per cent, to end at 10,936. The broader market also witnessed major selling with the BSE Mid-Cap Index down 2.4 per cent, and the Small-Cap Index down 2.5 per cent. The market breadth was negative as 2,052 shares fell on BSE,while only 546 shares rose.

Technical view

ICICI Bank postpones AGM by a month

ICICI Bank has decided to postpone its annual general meeting (AGM) by a month amidst independent enquiry conducted by Justice B N Srikrishna on alleged cases of impropriety against the bank's CEO Chanda Kochhar.

The meeting has been rescheduled to September 12 as against the earlier schedule of August 10.

"We wish to update that the change in AGM date and the consequent changes in record dates was necessitated due to the sequencing of general meeting dates within the listed entities of ICICI Group," the bank said in filings to stock exchanges.

When Elephants fight

When elephants fight, it is the grass that suffers, thus goes the saying. India too could find itself in a similar situation if the trade war escalate. Though India is unlikely to be a top target in the US trade wars, the country could suffer some damage from the one-upmanship on tariffs.