Companies and Markets

Companies & Markets

IndiGo stock tanks on reports of ED summons

The share of InterGlobe Aviation, which operates IndiGo, slumped 7.5 per cent on Wednesday, eroding Rs 3,536 crore from the company’s market valuation, after financial investigating agency Enforcement Directorate (ED) summoned the budget airline’s senior management for Foreign Exchange Management Act (FEMA) violations.

IndiGo, however, has denied that ED had summoned its senior management for FEMA violations.

CEA Subramanian quits

In yet another high profile exit, chief economic adviser (CEA) Arvind Subramanian has quit, prompting government detractors to mount a fresh attack on the economic policies of the Centre.

Look for global cues

The trade war jitters led to across-the-board selling as the Sensex and Nifty saw a gradual slide right from the opening of the trading session. The  Sensex fell 261.52 points, or 0.74 per cent, to settle at 35,286.74. The Nifty 50 fell 89.40 points, or 0.83 per cent, to settle at 10,710.45. Selling in the Mid-Cap and Small-Cap indices was even sharper with the BSE Mid-Cap Index down 0.98 per cent and BSE Small-cap Index down 1.29 per cent. The market breadth was weak with 1,951 stocks declining as against 676 stocks gaining on the BSE.

Technical view

SBI bats for consolidation of other PSBs

State Bank of India, the country's largest lender, on Tuesday said it is not looking at any more consolidation after merging five of its associate banks and the Bharatiya Mahila Bank with it. SBI chairman Rajnish Kumar, however, said the banking ecosystem is too fragmented and the idea of mergers needs detailed deliberations.

Lavasa A dream turned nightmare

This onetime hilltop paradise is becoming for some a hell on earth. The days of zero crime are over. Garbage collection is sporadic, so litter soils the man-made lake. Storefronts are vacant. Signs of neglect are everywhere: maintenance is late or nonexistent. And that’s for the construction already done. For the unfinished building works—that is most of it—there is little happening.

Fund outflows relentless; rupee may touch 70-level by year-end

Global trade war is weighing heavily on Indian markets. The rupee continued to reel under severe pressure amid a steady outflow of foreign portfolio money. The domestic currency closed at one-month low of 68.38 against the US dollar on Tuesday, down 40 paise from its previous close. As the political heat also adds to the investor sentiment, experts in foreign exchange said the rupee may test the 70 level towards end-2018.

Lobbying done sans unlawful payments: AirAsia Group

Malaysian carrier AirAsia Group Berhad on Tuesday said that lobbying for the removal of 5/20 norm was done without making any “unlawful payments” and all the required approvals for its Indian joint venture with Tatas were obtained through normal channels.

The latest statement comes against the backdrop of the CBI probing AirAsia and other officials, including Group CEO Tony Fernandes, for allegedly trying to manipulate government policies through corrupt means to get international licence for AirAsia India.

Centre mulls new financing mode for aircraft acquisition

In the wake of Indian airlines placing orders for 900 aircraft worth over $45 billion, the government is working on a plan for tapping the big corpus of pension funds and insurance companies to finance acquisition and leasing of airplanes.

CAD at 2.5% of GDP not worrisome, instruments in place to deal with outflows: FinMin

Current account deficit (CAD) at 2.5 per cent of GDP won't be a worry as the government has the required instruments to deal with any imbalance created due to foreign fund outflow, Economic Affairs Secretary Subhash Chandra Garg said today.

"2-2.5 per cent CAD is not a problem for us.... If there is stability, in the current year capital account (inflows) should be good enough to take care and we may not worry even if it (CAD) reaches 2.5 per cent," Garg said.