Among key developments, the Reserve Bank of India (RBI) decided to transfer an interim dividend of Rs 28,000 crore to the government in the current financial year (2018-19 or FY19) at its board meeting on Monday. The dividend transfer is likely to aid the government meet its revised fiscal deficit target of 3.4 per cent of GDP for FY19.
In another news, Vedanta and JSW Steel are in talks to make a joint bid for Essar Steel in a last attempt to keep ArcelorMittal away, said a Business Standard report.
STOCKS IN FOCUS
Ambuja Cement: The company on Monday reported nearly three-fold increase in consolidated net profit at Rs 1,377.88 crore in the December 2018 quarter, benefiting from write-back of tax provisions relating to earlier years.
Cipla: The drug major on Monday said it has inked a pact to acquire 11.71 per cent stake in Wellthy Therapeutics.
Infosys has settled with Sebi a case of alleged disclosure lapses regarding severance payment made to its former chief financial officer Rajiv Bansal. The company paid Rs 34.35 lakh to settle the case with the markets regulator, according to an order.
ZEE: US cable company Comcast and Atairos, a $4-billion investment company, and Sony Corp have been shortlisted for talks that could lead to the purchase of a substantial stake in Zee Entertainment, said a report by The Economic Times.
At 07:16 am, Nifty futures on the Singapore Exchange (SGX) traded 21.50 points or 0.20 per cent higher at 10,674.50.
Asian stocks were trading mixed in the early trade on Tuesday after a muted session in Europe and a holiday in the US. Shares in Japan were little changed and fell in South Korea, while Australian equities posted modest gains. The US dollar steadied while Treasury yields edged higher.
Oil advanced to trade close to its highest in almost three months.
Rise in pledged shares by promoters puts Dalal Street on the edge
Promoters of India Inc continue to rely heavily on share pledging to raise debt for funding their core and non-core business activities. According to the data analysed from Capitaline, the promoters pledged more than Rs 1.2 trillion worth of shares in 2018-19, 60 per cent higher than the previous year’s tally.
So far in 2019, more than Rs 16,000 crore worth of shares has been pledged by the promoters. The data analysis takes into account the value of shares reported by the listed companies to the exchange as part of their pledge creation disclosures.
Industry observers say structured deals, involving loans against shares (LAS), have led to a spurt in share pledging. Domestic mutual funds (MFs) are active participants in such deals with their exposure ranging between Rs 25,000 crore and Rs 30,000 crore.