- FM Nirmala Sitharaman’s packages for real-estate & exports: Some of the highlights of the press-conference held on Friday are as follows:
- A Rs20,000cr fund, with government putting in half of the amount, will be set up to provide last-mile funding for housing projects that are not in bankruptcy court or already tagged as bad debt.
- Housing finance companies will be allowed to borrow funds abroad at relaxed rules while interest rate on housing building advance has been lowered, benefiting government servants who make up for a major component of demand for houses.
- For exporters, a new scheme for reimbursement of taxes paid on exports, called the Remission of Duties or Taxes on Export Product (RoDTEP), will come into effect from January 2020 to replace existing dispensations.
- A Rs1,700crore annual dole will allow Export Credit Guarantee Corp (ECGC) to offer higher insurance cover to banks lending working capital for exports. This will enable reduction in the overall cost of export credit including interest rate, especially for MSMEs.
- Priority sector lending tag for export credit is under consideration of the Reserve Bank, which will release an additional Rs36,000cr to Rs68,000cr as export credit. A mega shopping festival on the likes of the world-famous Dubai Shopping Festival, will be conducted at four places in India in March on themes of gems and jewellery, handicraft/ yoga/ tourism, textiles and leather.
- State Bank of India: State Bank of India (SBI) chairman Rajnish Kumar has said that the bank has dropped its plan to take its general insurance arm public as there is no need for additional capital now. India's largest lender, was earlier looking for an IPO for SBI General Insurance in FY21. Investor interest for its cards business is very high, and SBI Card listing will happen in the March quarter, the SBI chief said.
- PNB Housing Finance: Goldman Sachs Group, Premji Invest and the family office of Sunil Kant Munjal are in advanced talks to invest in PNB Housing Finance Ltd, media reports suggested. PNB Housing is looking to raise as much as Rs2,000cr through the “limited preference" route, under which a maximum of 5 investors can participate.
- Indian Bank: India Ratings & Research has placed the long-term issuer rating of the bank on rating watch evolving (RWE), following the recent announcement by Ministry of Finance regarding the proposed amalgamation of Allahabad Bank into Indian Bank. Additionally, CARE Ratings has placed the ratings assigned to various debt instruments of the Bank on credit watch with developing implications, the bank said in a regulatory filing.
- Reliance Industries Ltd: Reliance Industries and UK's BP plc have taken over the 10% shareholding of their partner Niko Resources in the eastern offshore KG-D6 block after the Canadian firm defaulted on paying for its share of gas field development cost, media reports suggested. Reliance and BP split Niko's share in proportion to their existing shareholding in the block.
- Reliance Home Finance: The company said in a regulatory filing that CARE Ratings (CARE) has downgraded the rating to "D" for the company's long-term debt programme, market-linked debentures, subordinated debt, non-convertible debentures (NCDs) and upper Tier-11 NCDs. CARE has stated this action is primarily due to delay in servicing of principal on one of the NCDs of the company.
- DLF Ltd: DLF Ltd has sold a little over nine acres of land in Sector 74A, Gurugram to American Express for Rs300cr. The deal, at a little over Rs32cr an acre, is the costliest transaction in the neighborhood that is about 16 km away from DLF Cyber City. The US-based global service company plans to move most of its offices in a single location, officials said. Currently, AmEx has leased about 1 million square feet for its various workspaces in Gurugram.
- Omax Autos: India Ratings and Research (Ind-Ra) has downgraded the company's long-term issuer rating as ’IND BBB+’ from 'IND A—'. The outlook is stable.
- Bayer CropScience: The National Company Law Tribunal (NCLT) has on September 13, approved the scheme of amalgamation of Monsanto India with Bayer CropScience. In June 2018, Bayer AG had announced the completion of $63bn mega-deal to acquire US-based major Monsanto to create the world's biggest agro-chemical and seed company. Bayer had in May received approval from the fair-trade regulator Competition Commission of India (CCI), paving way for the completion of the global merger.
- SML Isuzu: Company will shut operations at Nawanshahr's chassis division for 6 days. In a filing to the stock exchanges, the company said due to continued low demand in the auto sector it has decided to observe Block Closure (Chassis Division) for 6 days from September 16 to 21, 2019. In the bus body division, need-based production will continue, the manufacturer of buses and trucks said.
US stock market was mixed on Friday, with the S&P 500 and the Dow hovering just below all-time highs as cautious optimism regarding easing US-China trade tensions was held in check by a drop in Apple stock. The Dow Jones (IA) rose 37 points, or 0.14%, to close at 27,219.52. The S&P 500 dropped 2.18 points, or 0.072%, to finish at 3,007.39, and the Nasdaq Composite slipped 17 points, or 0.22%, to close at 8,176.71.
Last week, China announced it would exempt some US agricultural products from additional tariffs after President Donald Trump suggested he could be open to an interim deal, the latest in a series of conciliatory gestures by both sides of the trade war ahead of next month's negotiations in Washington. This week, the focus will be on the Federal Reserve policy meet on Wednesday. Most investors are betting that the Federal Reserve will lower interest rates for the second straight time at its meeting next Wednesday. The rate cut in July was the Fed's first since December 2008. The Fed is also expected to signal that several more rate cuts are possible later this year and in 2020, partly due to the effect of the trade war but also because rates in other parts of the world remain much lower.