Page 649 - Business Finance
Cong to give 3-year blanket pass to new ventures; abolish angel tax: Rahul Gandhi
Congress President Rahul Gandhi on Thursday said new ventures will not require any regulatory permissions for three years and will get easy access to bank credit if his party is voted to power. In an exclusive interview to PTI, he also promised to remove the existing 'angel tax' imposed on start-ups. Angel tax is levied on investment in start-ups. Currently, angel tax is charged at a maximum rate of 30 per cent. Gandhi said promoting domestic industry will be a key priority for the Congress and it will ensure that all new businesses are freed from the clutches of red tape to give a boost to the economy. "For the first three years of setting up a new business, we are going to free you up from red tape. You will not need to ask for permission for anything," Gandhi said. These proposals, Gandhi said, will be included in the Congress' manifesto for the Lok Sabha elections which will be released early next month. "Don't bother about anything, there is no permission you need. Start your ...
Rupee plunges 42 paise to 69.30/USD on stronger dollar
The rupee slumped 42 paise to end at 69.30 against the US dollar Thursday, its second straight session of decline, in line with other Asian currencies amid strengthening of the greenback. Most Asian currencies struggled amid expectations of dovish monetary policy stance by central banks following a deteriorating global economic outlook. At the Interbank Foreign Exchange (forex) market, the rupee opened weak at 69.04 and fell further to touch the day's low of 69.35. It finally finished at 69.30 per dollar, down by 42 paise against its previous close. On Wednesday, the rupee had weakened marginally by 2 paise to end at 68.88 against the US dollar. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,481.11 crore Wednesday, as per provisional data. Meanwhile, brent crude futures, the global oil benchmark, fell 1.08 per cent to trade at USD 67.10 per barrel. BSE benchmark Sensex zoomed over 400 points while the NSE Nifty reclaimed the 11,500 ..
GDR manipulation: Sebi slaps Rs 30 lakh penalty on Sybly Industries directors
Markets regulator Sebi has slapped a total fine of Rs 30 lakh on three directors of Sybly Industries in a matter related to manipulation in issuance of global depository receipts (GDRs). The directors -- Satya Prakash Mittal, Mahendra Kumar Gupta and Subodh Kumar Goel -- have been fined for acting as party to the fraudulent scheme, Sebi said in three separate orders on Wednesday. The orders came following a probe conducted by the regulator to investigate irregularities in the company's allotment of 1.51 million GDR amounting to USD 6.99 million on the Luxembourg Stock Exchange in June 2008. The entire 1.51 million GDR were subscribed by only one entity, Vintage FZE (now known as Alta Vista International FZE) upon obtaining loan from European American Investment Bank (EURAM). Sebi noted that the three directors of the firm along with other directors in its board meeting in March 2008 passed a board resolution that authorised EURAM Bank to use Sybly's GDR proceeds as security in ...
RS MPs showed best fund utilisation in Goa, worst in UP
Details of expenditure of MPLADS funds by Rajya Sabha members show the lowest unspent funds are from some north-eastern states like Tripura, Sikkim, Meghalaya and Arunachal Pradesh -- though this need not necessarily mean that they are good performers because the funds available with them are small compared to some of the big states.
UK identifies fresh Huawei risks to telecom networks
Britain has identified "significant" issues in Chinese giant Huawei's engineering processes that pose "new risks" for the nation's telecommunications, a government report found Thursday. "Further significant technical issues have been identified in Huawei's engineering processes, leading to new risks in the UK telecommunications networks," read annual findings from the government's Huawei Cyber Security Evaluation Centre (HCSEC) oversight board. Huawei is the leading manufacturer of equipment for next-generation 5G mobile networks that will bring near-instantaneous connectivity for smartphones, but some Western nations have barred it amid fears Beijing could gain access to sensitive communications and critical infrastructure. A Huawei spokesman on Thursday told AFP that the company was taking the concerns "very seriously" and they would be used as part of its "ongoing" process to improve its capabilities. HCSEC stressed that it "does not believe that the defects identified are a ...
Subros inks pact with Zamil Air Conditioners to acquire certain assets
Auto component maker Subros Thursday said it has inked a pact with Zamil Air Conditioners India to acquire latter's certain assets linked to production of home air conditioning (AC) systems. The company, which for the past few years has been trying to gain foothold in the home air conditioning segment, has inked a memorandum of understanding (MoU) with Zamil Air Conditioners India Pvt Ltd, Subros said in a regulatory filing. The decision is in line with the company's long-term plan and strategic intent to expand business in home air conditioning domain, it said. The company is further in the process to enter into definitive agreements in this regard, it added. "Through this initiative, Subros will create a capacity of 5 lakh units per year and also expand its supply of home air conditioning units...," Subros said. The transaction is expected to be completed in April 2019, it added. On the BSE, shares of Subros closed at Rs 261 apiece, up 4.4 per cent.
Nifty April futures at steep premium
Turnover in F&O segment surges
Bank of Baroda shares jump nearly 7 pc on govt's fund infusion decision
Shares of Bank of Baroda jumped nearly 7 per cent Thursday after the government decided to infuse Rs 5,042 crore into state-owned lender. The stock climbed 6.62 per cent to close at Rs 129.60 on the BSE. During the day, it gained 7.28 per cent to Rs 130.40. On the National Stock Exchange (NSE), shares jumped 6.74 per cent to close at Rs 129.75 apiece. On the traded volume front, 23.05 lakh shares were traded on the BSE and over 4 crore shares on the NSE during the day. The government has decided to infuse Rs 5,042 crore into Bank of Baroda ahead of merger of two other public sector lenders Dena Bank and Vijaya Bank with BoB. The merger of Dena Bank and Vijaya Bank with BoB would be effective from April 1. The finance ministry through its notification on Wednesday conveyed its decision to infuse capital of Rs 5,042 crore into BoB, the bank said in a regulatory filing. The government in September last year had announced merger of Vijaya Bank and Dena Bank with Bank of Baroda, aiming to .
M&M to raise vehicle prices due to high commodity rates
Automobile major Mahindra and Mahindra (M&M) on Thursday announced a price hike, in the range from Rs 5,000 to Rs 73,000, across all its models, effective from April 1.
'Nyay' scheme poses 'fiscal challenge' to India's economy: Panagariya
Former NITI Aayog vice chairman Arvind Panagariya has said the implementation of the Congress Party's ambitious 'Nyay' scheme not only poses a "fiscal challenge" to India's economy but also has a "serious incentive problem". Congress President Rahul Gandhi on Tuesday said that its minimum income guarantee scheme, Nyuntam Aay Yojana (Nyay) assures up to Rs 72,000 a year or Rs 6,000 a month income to 20 per cent of India's poorest families if the party is voted back to power in the Lok Sabha elections next month. Panagariya, who served as the first vice chairman of NITI Aayog for two years from 2015 to 2017, told PTI that 'Nyay' is difficult to implement and unlikely to achieve its intended objective. "It raises three major questions - the incentive compatibility issue, the fairness issue and fiscal challenge," Panagariya, an eminent Indian-American economist, said. But Gandhi said the 'Nyay' scheme has the twin objectives of giving money to the 20 per cent poorest families and ...
FII inflows; derivatives expiry lift equity indices
Fresh inflows of foreign funds along with March derivatives expiry pushed the key Indian equity market indices higher by around 1 per cent each on Thursday.
Sensex soars over 400 points; Nifty reclaims 11,500-mark
Benchmark indices ratcheted higher Thursday as banking, finance and IT stocks surged amid expiry of March series derivatives contracts. The BSE Sensex vaulted 412.84 points, or 1.08 per cent, to close at 38,545.72, while the broader NSE Nifty settled at 11,570, higher by 124.95 points or 1.09 per cent. Rate-sensitive banking, realty and auto counters spurted on expectations of a rate cut by RBI next week, brokers said. Heavy short-covering on expiry of March series futures and options (F&O) contracts also buoyed investor sentiment, they added. Global equities were mixed amid a fall in bond yields, underscoring recession fears. The 30-share Sensex, after a positive start at 38,208.30, stayed in the green throughout the session, with buying pace gathering momentum towards the end. In the Sensex pack, gainers included HCL Tech, SBI, ITC, Bharti Airtel, Sun Pharma, Yes Bank, Axis Bank, TCS, Asian Paints, ICICI Bank, TCS, Bajaj Finance and Infosys, jumping up to 3.84 per cent. On the ..
US trade negotiators arrive in China for resumed talks
US trade negotiators arrived in Beijing on Thursday to start a new round of talks aimed at ending a tariff war over China's technology ambitions as officials hint they might be making progress. The meetings are the latest in a rapid-fire series of exchanges seeking to end the conflict that is disrupting trade in goods from soybeans to medical equipment. The talks were to begin with a working dinner Thursday and last the entire day Friday, Chinese commerce ministry spokesman Gao Feng said during a regular briefing. "Both teams are currently sparing no effort" on the negotiations, Gao said. President Donald Trump expressed optimism last week, saying, "we're getting very close." The chief American envoy, Trade Representative Robert Lighthizer, said this week that questions about details and enforcement remain to be answered. The US delegation to the talks is led by Lighthizer and Treasury Secretary Steven Mnuchin, who arrived at a Beijing hotel on Thursday afternoon. Speaking briefly to .
Hyatt to open 14 new hotels in India in 2 years
Chicago-headquartered Hyatt Hotels Corporation Thursday announced plans to open more than 14 new properties in India over the next 24 months. The new properties will include hotels and resorts in Bengaluru, Dehradun, Udaipur, Gurgaon, Jaipur, and Trivandrum. In a statement, Hyatt Hotels said 2019 would mark record growth for Hyatt in India. "Expansion plans foresee the addition of over 2,100 guest rooms through the opening of more than 14 new properties over the next 24 months," it said. Aside from growth in the larger capital cities, the emphasis will be on leisure and cultural destinations, with a focus on emerging cities within India. This expansion includes hotels in eight new markets in the country which will establish Hyatt brand presence across 27 cities in India. "As a result of an increasingly favourable business climate and heightened tourism spend, encouraged by relaxed visa rules and a growing upper middle class, there is a general demand for growth in the hospitality ...
S&P downgrades Tata Motors, JLR credit rating
S&P Global Ratings has downgraded the credit rating of Tata Motors and its wholly-owned subsidiary Jaguar Land Rover (JLR), citing weak profitability, Tata Motors said Thursday. "We would like to inform that based on S&P Global Ratings, the credit rating of the company and Jaguar Land Rover Automotive Plc has been downgraded," the company said in a regulatory filing. The rating agency cited weakness in profitability of JLR as the main reason for downgrading credit rating of Tata Motors and its British arm. S&P cut its rating on senior unsecured notes of JLR and Tata Motors to 'B+' from 'BB-'. Shares of Tata Motors Thursday ended 0.41 per cent up at Rs 170.60 apiece on the BSE.
Future Supply Chain Solutions signs multi-year deal with Benetton India
Future Supply Chain Solutions Thursday said it has signed a multi-year agreement to provide contract and express logistics services to Benetton India. "As per the agreement, Future Supply Chain Solutions will manage Benetton India's supply chain requirements from a large built-to-suit, multi-customer distribution centre in north India," Future Supply Chain said in a statement. Future Supply Chain Managing Director Mayur Toshniwal said the company aims to bring several supply chain efficiencies leading to better inventory management and optimum warehouse operations for Benetton India. Apart from Benetton India, the company has signed multiple new contracts with Voltbek Home Appliances Pvt Ltd, Haldirams Products Pvt Ltd, Crompton Greaves Consumer Electricals, among others in the past one year.
Manappuram Finance withdraws release on securing funding from NABARD
Non-banking finance company Manappuram Finance Thursday withdrew a release it had issued earlier in the day regarding securing debt funding from NABARD. The release titled 'Manappuram Finance secures Rs 695 crore debt funding from NABARD' is being "retracted with immediate effect due to factual inaccuracies in statement as well as transaction", the company said. Manappuram Finance also said it would come out with a revised announcement as soon as it is ready.
Ola to invest USD 500 mn in self-drive service
Ola Fleet Technologies, an arm of cab-hailing major Ola, will get about USD 500 million funding over the next two years as it looks to launch self-drive service, according to sources. According to the sources, Ola Fleet Technologies will get about USD 500 million through a mix of equity and debt to offer self-drive services in the country. This service, which is in a small-scale pilot in Bengaluru currently, is expected to be launched over the next few weeks. The launch of self-drive service will pit Ola against the likes of Sequoia Capital-backed Zoomcar and Y Combinator-backed Drivezy. They added that the Bengaluru-based company could deploy about 10,000 vehicles for the self-drive service. When contacted, an Ola spokesperson said that "basis market feedback, we are piloting our Ola Self-Drive offering in various formats like rentals, subscription and corporate leasing in select cities in the coming weeks". "This space is currently under-served and there exists a tremendous ...
Sensex jumps over 1% to 38,546 level, Nifty at 11,570
Equity benchmark market gathered momentum in the afternoon session on Thursday with handsome gains in banking, finance and IT stocks.The BSE S & P Sensex closed 413 points or 1.08 per cent higher at 38,546. The NSE Nifty 50 gained 125 points or 1.09 per cent to wind up the day at 11,570.Among sectoral indices, the Nifty Bank index closed by 1.33 per cent at 30,421. Bank of Baroda surged 6.75 per cent followed by State Bank of India over 3 per cent, Yes Bank 2.5 per cent and Punjab National Bank 2 per cent. ICICI Bank, RBL Bank, Federal Bank and IDFC First Bank were also up.Shares of Deewan Housing Finance Limited closed over 9 per cent higher at Rs 149.20 following reports said that Piramal Group and Baring Private Equity are in advanced stage of negotiations to acquire majority stake in the company.Among other prominent gainers were Indiabulls Housing Finance, Adani Ports, Infosys and HCL Tech. But Hindalco, ONGC, Tata Steel and Power Grid suffered losses.Meanwhile, Asian markets
Nifty settles above 11,500 mark
The market settled with sharp gains on strong buying demand in index pivotals. After a gap-up opening, key indices advanced as the session progressed on broad based buying support. The Nifty settled above the 11,500 mark. The sentiment was boosted by data showing that foreign funds and domestic funds, both, were net buyers of Indian stocks yesterday, 27 March 2019.