Asian stocks trade higher, European markets close at 2-year low.
Business Updates & Stocks In News
HCL Technologies: It will acquire Select IBM software products for $1.8B. The software products in scope represents a total addressable market of more than $50bn.
The transaction is expected to close by mid-2019. Acquisition will be funded partially by US $300 million of debt.
REC , PFC: The Cabinet has approved Power Finance Corp purchase of Govt stake in REC. CCEA has approved nod for PFC Buying Govt's 52.6% Stake In REC. PFC will Have management control over REC. Ministerial panel will work out modalities of PFC-REC deal. Expect PFC-REC deal to be finalised in current financial year. REC will become an arm of PFC, not ruling out merger later.
Govt Sources: Centre is in talks with Himachal Pradesh For NTPC's SJVN Buy. Fiscal deficit not a concern this financial year, it is manageable. It is expected that divestment receipts to touch around Rs 55,000 Cr post REC-PFC deal this fiscal year.
REC, Power Grid: REC will be selling transmission unit to Power Grid. Arm enters into JV with MSETCL to explore new biz opportunities in India and Abroad.
RIL: JIO board will meet on December 11 to consider restructuring/reorganisation
Jet Airways: According to reports, it has seeked $350 Mn Soft Loan From Etihad.
Zydus Wellness: It will raise funds by share sale to Truenorth, Pioneer Investment, Cadila.It will be Selling Shares Worth Rs 2,574 Cr and will also raise debt via NCDs of Up To Rs 1,500 Cr.
MAJESCO: It will invest up to $35 Mn In U.S. Unit's Rights Offering.
Coal India: Govt of India has cut 2.2% stake in company to 72.9%.
FYI: The Union Cabinet has approved agriculture export policy. The policy is In line with PMs vision on doubling farm income. This will remove restrictions on
all organic, processed products. State Clusters will be developed for various commodities. Each state will appoint an agency dedicated to agricultural exports.
Govt plans to double the agriculture exports to $60 Bn By 2022. Centre& State will invest Rs 1,400 Cr in agriculture clusters.
RIL: According to a business report, RIL is mulling over 10-Year bond issue of at least Rs 1,500 Cr on Dec 10.
HUDCO: the board will be mulling over raising up to Rs 1,000 Cr via bonds on Tuesday.
Punjab & Sind bank : They will consider issue of equity shares via QIP upto amount of Rs 500 Cr.The banks will also consider issue of Basel-III compliant Tier-II Bonds upto amount of Rs 1,500 Cr.
Bank of Baroda MD & CEO: To decide on swap ratio for BoB, Dena Bank, Vijaya Bank Merger by end of December. It is expected that Parliament will clear merger proposal under Amalgamation Act by first week of Jan.
Capital First Chariman: The merger of Capital First, IDFC Bank to go through by December end. They have received all regulatory approvals for merger and will soon receive NCLT nod for Capital First & IDFC Bank. The Merged Entity will be named as IDFC
Sagar Cements: Nov consol cement sales is at 315,106 MT, Up 36.29% YoY.
Wipro: It is in pact with Alfresco to offer open source solutions. It will also offer automated solutions with Alfresco.
Bharat Financial: It has completed direct assignment deal of Rs 833 Cr.
Tata Motors: According to reports, Harrier has launched the first of 15 products to roll out by 2022 in transition to a premium carmaker. It aims for leadership in various segments with a portfolio as wide as Maruti Suzuki.
Dena Bank: According to sources, ahead of merger, the bank will sell properties worth Rs 462cr.
Union Bank MD & CEO: Stated that Recoveries have more than doubled in FY19 vs FY18. Fear of insolvency is improving credit discipline amongst corporates. Only seeing stress in MSME segment of retail loans. GST helps banks better assess MSMEs based on cash flow, data.
IndusInd Bank MD & CEO: Said that close to the peak in terms of NPA recognition.
Indusind Bank has closed to 60% provisioning coverage ratio. The worst seems to be over in terms of provisioning pressure.
SBI Chairman: Stated that worst is over for banking sector, as NPAs peaked in March 2018. Provision is not cause of concern as bank has provided for NPAs. Recognition phase of NPAs has ended; banks in recovery phase. Need to have processes to ensure borrower's capability to pay. Bankers have moved away from 'rehabilitation' approach for bad loans. Expect more than 50% recoveries for first list of NCLT accounts. Have provided 80% for 2nd list of NCLT accounts. Any recovery over 20% in 2nd list will result in writebacks for SBI. Expect at least 35% recovery for 2nd List of NCLT Accounts. Every debtor wants to take the insolvency process to the Supreme Court. Pronouncements from sc have generally been favourable to financial creditors.