Infosys shares gained 1.7% intraday on March 13 after the company’s Finacle Trade Connect software was selected by Sri Lanka’s Hatton National Bank to enable a blockchain-based domestic and cross-border trade finance network. The Finacle Trade Connect software will be used by HNB to pilot a trade network with other corresponding banking partners and its corporate clients. The network is expected to help HNB and other participating entities substantially increase automation and transparency, while efficiently managing risks in trade and supply chain financing operations.
The grounding of Boeing 737 Max aircraft in India may lead to further increase in airfares after industry regulator DGCA on March 12 announced that all Boeing 737 Max aircraft will be grounded in India, following the Ethiopian Airlines crash on March 10. While ticket prices in Mumbai-Delhi route have already seen a hike of up to 50%, rates have nearly doubled for Delhi-Chennai flights. While Jet Airways' five 737 Max planes were already grounded due to financial crunch, 13 aircraft of SpiceJet will also be grounded. IndiGo, which doesn't have the aircraft, stands to gain the most.
The Bombay High Court has asked Anil Ambani’s Reliance Power and the Edelweiss Group to amicably resolve the dispute over the sale of pledged shares within a fortnight. ADAG is also seeking compensation of Rs 2,700 crore from the Edelweiss Group for the ‘damage’ caused by sale of pledged shares. Edelweiss’s counsel told the court that RPower can pay Rs 190 crore to release the remaining pledged shares. Sale of pledged shares by Edelweiss had caused ADAG group company shares to lose $1.8 billion in market value.
The Essel Group has put its mutual fund business on the block. The company is looking to monetize its non-core and non-media businesses to pare debt. SREI Mutual Fund Asset Management, Avendus Capital, and Lodha Ventures Holdings are in advanced talks to acquire Essel Mutual Fund, which has Assets under Management (AUM) worth about Rs 1,428 crore. The deal could be valued at around Rs 100 crore.
IDBI-Federal Life Insurance is considering all options including a public listing to help the largest shareholder IDBI Bank reduce or sell off its stake in the private sector life insurer. IDBI Bank holds 48% stake in the insurance company, while Federal Bank along with Belgium-based insurance company Ageas hold 26% in the company.
Shares of SpiceJet slipped 8% and a hit an intra-day low of Rs 72.50 on Wednesday morning on fears that grounding of Boeing 737 MAX aircraft will hurt the airline’s revenue and profitability. India has grounded Boeing 737 MAX being operated by airlines in the country after about 15 countries banned the aircraft following two deadly accidents within a span of five months.
Jewellery firms in the organised sector such as Kalyan Jewellers, PC Jeweller, and Joyalukkas are hoping to increase their market share of the jewellery purchase advance scheme following the government’s move to ban unregulated deposit schemes by builders, jewellers and others that don’t have specific regulatory approval. Under the jewellery purchase advance scheme, customers can buy gold by paying advance installments ranging from Rs.500 to Rs.40,000 depending on the ornament selected. The scheme offers better rates and discounts to customers.
The government has warned Twitter that its top executives could face up to seven years in jail along with financial penalties for their failure to remove content and accounts carrying "objectionable and inflammatory content". Failure to comply with government’s request to remove such contents may tantamount to violation of country’s IT laws. Twitter has been "warned and asked to comply with the provisions under the Indian IT Act or face action under Section 69A of the IT Act”, sources said.
Former ICICI Bank CEO Chanda Kochhar has denied any knowledge of her husband’s business dealings” with Videocon group MD Venugopal Dhoot. When asked about a Rs 64-crore loan given by Videocon group to Deepak Kochhar’s company NuPower Renewables a day after a Rs 300-crore loan was disbursed to a Videocon group company by ICICI bank, Kochhar said she “didn’t discuss her bank related work with her husband or vice-versa, hence there was no question of taking any favour in lieu of the bank loan”. CBI has alleged this Rs 64 crore loan was a bribe to the Kochhars.
Fugitive diamantaire Nirav Modi invested Rs 327 crore of the Punjab National Bank fraud money in US jewellery company Bailey Banks & Biddle that he bought in 2010. The ED in their supplementary charge sheet filed further mentioned that Nirav Modi purchased the company through a shell company and made his brother Nehal Modi one of the directors of the jewellery retailer. ED officials said they are yet to trace the money source that Modi used to purchase Bailey Banks & Biddle but found the investment of Rs 327 crore into it.
Prime Minister Narendra Modi's signature jacket that had fast become a fashion statement is now witnessing a decline in its popularity in Aurangabad. Sale of the 'Modi jacket', something often worn by the Prime Minister, has witnessed a drastic fall in Maharashtra lately. 'There was a time when around 35 Modi jackets used to be sold per day, but now the the number is down to one per week,' said a local trader.
Financially-stressed Jet Airways has grounded another four of its aircraft due to non-payment of lease rentals. With this, the total number of aircraft taken out of operations due to a severe liquidity crunch in the airline and its subsequent failure to pay rentals to various lessors now stand at 32 so far. Jet Airways said it is making all efforts to minimize disruption to its network due to the grounding of these planes.
Industrial output growth stood at 1.7% in January on account of slowdown in the manufacturing sector. Factory output as measured in terms of the Index of Industrial Production (IIP) had grown by 7.5% in January 2018. During April-January 2018-19, industrial output grew at a marginally higher 4.4% as against 4.1% in the same period previous fiscal.
L&T is reportedly set to sign a binding deal to buy Cafe Coffee Day founder VG Siddhartha's stake in Mindtree and the deal is likely to be announced in the weeks ahead. The deal will pave way for an open offer by L&T to increase its stake in Mindtree to 51 percent. This will also lead to Mindtree’s current management losing control of the company.
The battle for the top spot in India’s smartphone market is going to get fierce in the next two quarters. The country’s second-largest smartphone maker Samsung is going to launch one-two handset models every month. These specification-heavy smartphones will have “extremely competitive pricing. South Korea's Samsung is more than willing to give up on profit margins to regain leadership in India and wants to become a smartphone leader by the festive season. In contrast, market leader Xiaomi has increased its promotional spending, and for the first time, offered incentives to retailers in India to push sales by 80-100%.