- Reliance Capital Ltd: CARE Ratings has downgraded Reliance Capital’s Rs17,000cr debt to default grade ‘D’ from stable ‘BB’ earlier. The agency attributed its action to the ADAG company delaying by a day its payment on several non-convertible debentures it had issued. “This constitutes an event of default as per CARE’s default recognition policy," the ratings agency said in a release. In reply ,Reliance Cap said "The company made a stock exchange filing on September 11 stating that the interest payment for NCDs, which was due on September 9, was duly activated on the due date, but the same could not go through owing to a technical glitch in bank servers on that date and the payment went through on the very next bank working day on September 11,”.
- Yes Bank: Promoter group companies of YES Bank along with co-founder Rana Kapoor have sold a combined 2.75% stake in the lender through the open market. YES Capital (India) Pvt Ltd, Morgan Credits Pvt Ltd and Rana Kapoor have sold a combined 2.75% in YES Bank through open market process, Morgan Credits said in a regulatory filing on Saturday. The combined entities held 9.64% holding in the bank which now stands at 6.89%. The release of shares took place between September 18 to 20, 2019, the filing said.
- Petronet LNG Ltd: India's largest LNG importer Petronet will invest $2.5bn for nearly 20% equity stake in US energy major Tellurian Inc's Driftwood project to negotiate the purchase of 5mn tons of gas per annum. An agreement to negotiate the same was inked on Sunday morning (India time) between India’s largest LNG importer and Tellurian in the presence of Prime Minister Narendra Modi in Houston, where he is meeting the chief executives of energy majors among his first engagements during his week-long visit to the US. India has been sourcing liquified natural gas and oil from the US, with Indian firms investing $4bn in US shale gas assets.
- State Bank of India: SBI is expected to launch a co-lending business model soon with 4-5 medium to large-sized NBFCs, an official of the lender said. Under the co-lending model, the bank will have an exposure between 70 and 80% while the rest will be borne by the NBFCs but this arrangement will be "only" for the priority sector lending. The designated officials are looking at the tie-ups with NBFCs and the lender is weighing whether the NBFCs have a robust business model and technology
- Edelweiss Financial Services: Brickwork Ratings has revised the credit rating assigned to the seemed non-convertible debenture programme of Rs50cr of the company from 'BWR AA+' to 'BWR AA' with the outlook remaining unchanged as 'negative'.
- Rama Steel Tubes: RST International Trading FZE, Dubai, a wholly owned subsidiary of the company, has incorporated 'RST Industries Limited', as subsidiary company in the Federal Republic of Nigeria to tap business opportunities and to cater diversified demand of the customers in that region.
- Moody’s Ratings: Corporate tax reduction is credit positive for companies but increases the government's fiscal risks, global rating agency Moody's said on Saturday. The move is credit positive for companies because it will enable them to generate higher post-tax incomes. However, it is credit negative for the sovereign, as it aggravates mounting risks for the government in meeting its fiscal deficit target, it said. The global ratings agency comments comes after Finance minister Nirmala Sitharaman announced a reduction in the base corporate tax rate to 22% from 30% as part of stimulus measures to revive the slowing economic growth. Moody's current India rating is India (Baa2 stable).
- Hero MotoCorp Ltd: Hero MotoCorp might see a reduction in its earlier-projected capex of Rs1,500cr for the current financial year, as the two-wheeler industry continues to face headwinds with no relief in sight from the prolonged slowdown a senior company official said. The country's largest two-wheeler maker, however, expects things to be relatively better in the second half as compared to the first half of the current financial year due to several factors like expectations of pre-buying ahead of BS-VI transition and better response from rural markets due to a good monsoon. The company will recalibrate this overall estimate and decide on the new amount in the coming days, he added.
- Alkem Laboratories Ltd: The company has acquired an undertaking, as a whole and on a going and running concern basis from Cachet Pharmaceuticals Private Limited, a subsidiary of the company. The cost of acquisition is RsRs51.85cr. The company has mentioned that it was getting some of its liquid products like syrups, etc. manufactured from the said undertaking and was procuring other liquid items from other parties as the company did not have any undertaking to produce liquid pharmaceutical products. Hence, it was proposed to acquire the said undertaking with a view to manufacture most of its requirement of liquid products at one place for better control over the quality of the products and timely supplies of the products by the company.
- Canara Bank: The lender announced that ICRA has placed rating of Canara Bank's Basel III Compliant Tier II Bonds & Additional Tier-I bonds, on "Ratings Watch with Developing Implications". As per ICRA Rating Rationale, the boards of both Canara and Syndicate have accorded in-principle approval to the merger, though it is still in a nascent stage. Given the initial stage of the proposed merger, ICRA has placed the ratings under Watch with Developing Implications.
The Dow Jones Industrial Average dropped near 160 points on Friday, as China trade war fears again took center stage. The Dow Jones (IA) fell 0.6%, to close at 26,935.07. The S&P 500 dropped 14.72 points, or 0.49%, to finish at 2,992.0, and the Nasdaq Composite slipped 65.21 points, or 0.80%, to close at 8,117.67.
President Donald Trump downplayed the chances for a trade agreement with China before next year's US elections. Trump also appeared to back away from a partial deal in the interim. After that, a representative for the Montana Farm Bureau Federation confirmed that the Chinese delegation intended to visit Montana farmland as a part of continuing discussions with the US on trade, but China changed travel plans and would be leaving without a stop in Montana.