Markets tumble on Huawei CFO arrest
Stock markets around the world fell sharply on Thursday as investors dumped risky assets on worries that the relationship between the US and China could worsen following the arrest of a high-profile Chinese executive.
Major global markets tumbled about 2 per cent or more, while Brent crude prices fell over 4 per cent to trade below $60 a barrel. The Sensex ended 572 points, or 1.6 per cent, lower to close at 35,312, while the Nifty 50 index plunged 182 points, or 1.7 per cent, to 10,601. It was the biggest single-day fall for the Indian benchmark indices in nearly two months. The rupee ended at 70.90 compared to the previous day’s close of 70.46 against the dollar. Read more
Banks at ‘poverty line’ of capital will stay poor: RBI
Public sector banks (PSBs) need to maintain the minimum regulatory capital despite sovereign backing in a bid to avoid losing market credibility and keeping off a moral hazard, and for a level-playing field, Reserve Bank of India (RBI) Executive Director Sudarshan Sen said on Thursday. Read more
Steel shortage possible in 2 years, says JSW Steel's Seshagiri Rao
Steel prices are falling globally and in India. Seshagiri Rao, joint managing director and group chief financial officer at JSW Steel, tells Ishita Ayan Dutt, that rising imports could be an area of concern, particularly in the context of falling prices. Read more
Cabinet okays Power Finance Corp's takeover of Rural Electrification Corp
The Cabinet Committee on Economic Affairs (CCEA) on Thursday gave an in-principle approval to the strategic sale of the Centre’s 52.63 per cent holding in Rural Electrification (REC) to the Power Finance Corporation (PFC), along with transfer of management control. The government has a total 58.3 per cent stake in REC, remainder of which is part of Bharat 22 ETF and CPSE ETF. The move will help the Centre meet its disinvestment target of Rs 800 billion for FY19.
The government said the acquisition intends to achieve “integration across the power chain, obtain better synergies, create economies of scale, and have enhanced capability to support energy access and efficiency to finance the power sector. It may allow for cheaper fundraising, with an increase in bargaining power for the combined entity.” Read more