1. Cash-Strapped Jet Airways Gets Rs 2,050 Crore Lifeline From PNB
Jet Airways (India) Ltd has secured fresh credit facilities of Rs 2,050 crore from state-run Punjab National Bank (PNB) that could provide a temporary lifeline to the cash-strapped airline.
The Mumbai-based airline has raised foreign currency term loans worth Rs 1,100 crore and a non-fund based credit facility of Rs 950 crore from PNB, according to loan documents, copies of which were reviewed by Mint.
Although the documents mention that Jet Airways will use the credit facility for its working capital needs, a person directly aware of the airline’s plans said on condition of anonymity that the money would be primarily used to pay rental dues to aircraft lessors and salary arrears.
2. Bullish Sentiment, Rupee’s Gain Take Nifty’s 2019 Returns to Positive Zone
Indian markets have turned positive for the first time since the beginning of 2019. After a 250-point rally last week, supported by a one percent jump in the rupee against the US dollar, the Nifty has returned one percent since 1 January compared to a negative two percent a week ago. In rupee terms, the index is up 1.1 percent for the year till date.
The performance is mainly driven by the FIIs and index heavyweights like ITC, Axis Bank and RIL – up seven percent, 4.5 percent and four percent, respectively, in the last one week in dollar terms.
In terms of year-to-date performance, these stocks are up 2.3 percent, 16 percent and 12 percent, respectively. The biggest drags on the index in 2019 so far have been L&T, Maruti Suzuki and HUL – down 8.1 percent, 7.7 percent and 6.6 percent, respectively, in dollar terms.
(Source: The Economic Times)
3. SEBI Plan to Build KYC Database of Beneficial Owners Irks FPIs
Large overseas fund managers such as Templeton, Fidelity and BlackRock have opposed the Securities and Exchange Board of India (SEBI) proposal to create a central database containing the personal information of all beneficial owners of offshore funds, said two people with direct knowledge of the matter.
Such a database held by an external agency in India would violate the law in their home countries, they argue.
The issue pertains to disclosure of know-your-customer (KYC) information of beneficial owners (BOs). SEBI had issued a circular on 10 April last year asking foreign portfolio investors (FPIs) to identify the BO of a fund based on not just ownership but control as well. In cases where there is no significant BO based on economic ownership, fund managers and other senior management officials of the funds were to be considered BOs.
(Source: The Economic Times)
4. Tighter Housing Finance Norms on Cards After IL&FS, DHFL Defaults Expose Risks
The National Housing Bank (NHB) is considering tightening the asset-liability management (ALM) norms for housing finance companies (HFCs) to help detect their solvency concerns early to ensure swift course correction, sources told FE.
“The ALM guidelines relating to forecasting and analysing ‘what-if scenario’ and preparation of contingency plans could be revised by the regulator, among others,” said an industry source.
This will be the latest in a series of steps, including tougher capital and borrowing norms, proposed by the regulator after defaults by IL&FS entities and concerns about DHFL’s repayment ability have exposed risks in the shadow-banking space, at a time when liquidity remains tight.
(Source: The Financial Express)
5. Crude Oil Prices to Remain Balanced in 2019, as Non-OPEC Supplies Come to the Rescue
Oil markets will remain balanced in 2019, with a surge in non-OPEC supply (+1.8 mmbpd) being offset by OPEC cuts (-0.8 mmbpd) and global demand growth (+1.6 mmbpd), Edelweiss has said.
Prices are expected to trade in $65–75/bbl range through 2023.
(Source: The Financial Express)
6. DLF to Launch Over Rs 3,000 Crore QIP by June
Realty major DLF plans to raise an estimated Rs 3,000 crore through the sale of equity shares to qualified institutional investors.
Aiming to become a debt-free company, DLF had last year announced plans to issue up to 17.3 crore shares through qualified institutional placement (QIP) to raise funds and pre-pay loans.
"We are looking to complete QIP by June this year," DLF group CFO Ashok Tyagi told PTI in an interview.
The QIP proceeds and further infusion of Rs 2,500 crore from promoters against issue of warrants would help company in significantly reducing debt that stood at around Rs 7,200 crore as on 31 December 2018, he said.
7. RBI-Kotak Stand-off: Review Panel for Ownership Norms Among Key Proposals
Amid calls for changes to the contentious ownership norms for private sector lenders, the RBI is likely to look into various proposals, including setting up of a review panel and making the regulations more friendly towards Indian control of home-grown banks.
The move is significant as it comes in the wake of the regulator having been dragged to the Bombay High Court by Kotak Mahindra Bank. Its peer Bandhan Bank merged with Gruh Finance, in a deal widely considered to have been driven by the need to comply with the promoter shareholding norms.
"RBI has received at least three proposals and one of them relates to setting up a review committee on ownership norms for private sector banks and all options are being explored, a source said.
8. Bankruptcy Court Clears ArcelorMittal's Takeover Of Essar Steel
The bankruptcy court on Friday, 8 March, approved global steel giant ArcelorMittal SA's bid for debt-ridden Essar Steel, potentially ending months of court battles and opening the country's steel industry to outsiders.
ArcelorMittal confirmed the National Company Law Tribunal (NCLT) had approved the takeover of the 10 million tonne steel plant of Essar Steel by itself and Japan's Nippon Steel & Sumitomo Metal Corp, paving the way for the first major foreign participation in India's steel sector.
ArcelorMittal has been trying to enter India's fast-growing steel market, which is dominated by local companies, for over a decade but bureaucratic hassles and land acquisition woes stifled its bids.
9. Macro Data, Global Growth Concerns To Impact Equity Indices: Experts
The build-up to the general elections and global growth concerns along with macro-economic data points are expected to influence the domestic equity market during the upcoming week.
Market observers pointed out that other factors such as stock-specific action, movement of rupee against the US dollar and crude oil prices will also set the market's trajectory.
"General election and geopolitical tension are the two important factors which will give direction to the market," said DK Aggarwal, chairman and managing director, SMC Investments and Advisors.
"Nifty is expected to move in the range of 10,900-11,300 while Bank Nifty is expected to move in the range of 27,500-28,000 levels."
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