Listen: Why it’s getting harder and harder for IndiGo to maintain a top quality review
– Sebi Board of Directors approves steps to facilitate M&A
– The sale of Air India in the last lap
– S&P maintains India’s 9.5% growth forecast for FY22
– Benchmark bond yield up with oil, US rate
Now let me give you a quick overview of the state of the markets.
Dalal Street is expected to have a negative start this morning. The crafty futures on the Singapore Stock Exchange traded 112 points higher at 8:40 am (IST). Asian stocks opened as much as 2% lower on Wednesday, prolonging nervousness in the global market, with traders worried about rising oil prices and fears of a US debt default. The largest MSCI index of Asia-Pacific stocks excluding Japan fell 1.22 percent.
Elsewhere, the yield on 10-year Treasuries rose one basis point to 1.55%. The dollar traded near its highest levels of the year on Wednesday, after rising with U.S. yields and capitalizing on investor nervousness that the Federal Reserve would begin to withdraw political support as the winds opposites of global growth are strengthening. Oil prices fell for the second day in a row on Wednesday as doubts re-emerged over demand, with COVID-19 cases continuing to rise around the world and gasoline shortages in some areas. Brent crude fell $ 1.03 or 1.3% to $ 78.06 a barrel.
That said, here’s what’s in the news.
The board of directors of the Securities and Exchange Board of India (Sebi) on Tuesday approved measures to facilitate mergers and acquisitions of listed companies and to allow the establishment of gold and social exchanges in the country. It also approved proposals to tighten related party transactions, launch silver exchange-traded funds (ETFs) and relax rules on senior voting rights (SVRs) for promoters of tech companies in the world. new era, to encourage Indian startups to register locally. Acquirers will be allowed to deregister a target company transparently, as they will be able to simultaneously launch open and delisting bids, the regulator said. Currently, if an open offer is triggered by a M&A transaction or overseas merger, then the entity must implement three different public transactions to comply with Sebi rules.
The process of privatizing the national carrier Air India is entering its final stage, with the Center confident that it will meet all the defined steps related to the divestiture of the airline. Offers could be open as early as Wednesday, ET reported. Sources indicate that by mid-October, the government would be able to announce the successful bidder. The government, which has launched a tender for a 100% stake in Air India, Air India Express and 50% in ground handling company AISATS, has received offers from the Tata Group and Ajay Singh to SpiceJet as an individual.
Shares of InterGlobe Aviation, which owns and operates Indigo Airlines, fell 9.6% in the five trading sessions, including a nearly 3% drop on Tuesday. This is after a 29% increase in the past three months. The trend reversal reflects the shift in analysts’ perspective on the outlook for the country’s largest airline in terms of market share in light of rising crude oil prices, intense competition, and market share. ‘lack of major improvement in traffic on international roads. Given the strong correlation between airline earnings and crude prices, InterGlobe’s stock could show further weakness.
Oyo Hotels & Homes, which is preparing to file a draft prospectus for an initial public offering (IPO) of $ 1 to $ 1.2 billion, has before it a legal obstacle posed by former rival Zostel (Zo Rooms) on a botched acquisition deal, which is due to go to a court hearing on Wednesday. Hotel start-up Zo – which claims Oyo is in breach of a binding six-year buyout deal – has now approached Delhi’s High Court to seek redress in a move that could potentially be a key in the works for the Oyo IPO.
NOW Before you go, here’s a look at the actions buzzing this morning …
The Competition Commission of India (ICC) penalty of Rs 752 crore on United Breweries is a major drag on sentiment in the brewing company, which may have to go into debt to pay the fine, the companies said brokerage.
The UK’s Standard Life plans to sell up to 10.6 million shares of HDFC Asset Management Company via the exchange platform on Wednesday. The deal constituting 5% of the company’s capital could earn the co-promoter up to Rs 3,042 crore, according to a terms sheet.
issued by JP Morgan.
Kayak Investments Holding, one of the promoters of the Max Healthcare Institute, is looking to sell 63.47 million shares or a 6.57% stake via a block deal on Wednesday.
Crisil Ratings upgraded its long-term rating on Bharti Airtel’s bank lending facilities and debt program to “Crisil AA + / stable” from “Crisil AA / stable”, reflecting an improvement in the company’s operating parameters from telecommunications headed by Sunil Mittal.
Also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s all for the moment. Stay with us for all the market news throughout the day. Good investment!