1. Escalating US-Iran Tensions Roil Markets, Oil Touches $70
Indian markets started the year on a weak note, with the benchmark Sensex index losing close to 800 points in a single day, as fears over escalating US-Iran tensions drove up oil prices and curbed risk appetite. The 30-scrip Sensex ended at 40,676.63 on Monday, down 787.98 points or 1.90%, while the 50-stock Nifty closed at 11,993.05, down 233.60 points or 1.91%. For both indices, this is the biggest single-day fall since 3 September in percentage terms and since 8 July 2019 in terms of absolute points.
The National Stock Exchange’s India VIX index, which tracks investors’ perceptions of volatility for at least a month ahead, soared 16.40% to 14.78, the highest level since 6 February 2018. So far this year, VIX has risen 26.66% after falling 27.08% in 2019. A higher level for the index indicates that investors expect market indices to fall further over the next month.
Brent Crude hit a seven-month high of $70 a barrel on Monday, as the US state department said there was “heightened risk" of missile attacks near military bases and energy facilities in Saudi Arabia.
2. NCLAT Dismisses RoC’s Plea to Modify Ruling in Mistry Case
The National Company Law Appellate Tribunal (NCLAT) on Monday dismissed a review petition filed by the Registrar of Companies (RoC) seeking amendments to its 18 December judgement on the Tata-Mistry dispute.
“No ground is made out to amend the judgment dated 18th December, 2019, in absence of any factual or legal error apparent on the body of the aforesaid judgement," the NCLAT bench said.
3. For Your Expansion, the Govt Will Walk With You: PM Modi to India Inc
In a tacit acknowledgment of the depressed sentiment in the country, Prime Minister Narendra Modi on Monday reached out to India Inc., seeking its help to revive the economy.
“At the beginning of the new year, today from this platform, I will again tell the Indian industry not to let disappointment linger with you. Go ahead with new energy. Whichever corner of the country you go to, for your expansion, the Indian government will walk with you," Modi said at the centenary celebration of the Kirloskar Group in New Delhi.
Modi toned down the anti-corruption drive and reiterated that a company’s lack of success doesn’t necessarily mean that it is the outcome of a conspiracy or greed. Hence, it was crucial to prepare a way for such entrepreneurs and the Insolvency and Bankruptcy Code set the basis for this, he said, urging industry to move ahead without fear.
4. Synergy Group Submits New Bid, Keeping Jet’s Rescue Hopes Alive
South America’s Synergy Group has submitted a fresh bid for Jet Airways (India) Ltd which was grounded in April, the Brazil-headquartered group’s legal adviser said.
“I am pleased to inform you that today (Monday) Synergy has presented a fresh EoI (expression of interest) to purchase Jet Airways," said a statement from Antonio Guizzetti, president of Guizzetti and Associates. The Washington-based law firm is advising Synergy, led by South American tycoon Germán Efromovich.
Guizzetti, however, didn’t reveal if Synergy Group has partnered any company to bid for Jet Airways, which was grounded on 18 April following an acute cash crunch.
5. RBI Revises PCA Regime for Urban Co-Operative Banks Facing Financial Stress
The Reserve Bank of India has rationalised its Supervisory Action Framework (SAF) to initiate prompt corrective action (PCA) for urban co-operative banks (UCBs) facing financial stress.
UCBs may be placed under PCA if net non-performing assets (NPAs) exceed 6 per cent of net advances, incurs losses for two consecutive financial years or has accumulated losses and capital adequacy falls below 9 per cent.
(Source: Business Standard)
6. RBI Buys and Sells Bonds Worth Rs 10,000 Crore in Third Open Market Operation
The Reserve Bank of India (RBI) on Monday conducted its third special open market operation (OMO) where it sold medium-to-longer tenure bonds and bought bonds maturing in this year to correct the yield spread.
The cut-off yield for the de-facto 10-year bond (9-year now) came at 6.54 per cent, three basis points lower than the market close on the paper. The central bank bought three papers maturing between 2024 and 2029. The total amount offered by the participants were Rs 64,505 crore for a purchase plan of Rs 10,000 crore.
(Source: Business Standard)
7. Amedeus Inks Ticket Distribution Deal With Air India
Madrid-based tech firm Amedeus on Monday announced a new ticket distribution deal with flag carrier Air India to provide the travel agents in the country access to the airline's full international ticket inventory.
Air India had in October 2018 given contract for its domestic ticket distribution services to Travelport of the UK, replacing Amadeus, from January this year.
8. Flipkart to Offer Frictionless Checkout for Visa Card Holders
Walmart-owned Flipkart on Monday announced the launch of Visa Safe Click (VSC) - powered by Visa - that will eliminate the need for one time passwords (OTP) for transactions up to Rs 2,000.
VSC will enable the e-commerce platform to deploy India's first in-app device-based network authentication solution, a statement said.
"This solution will eliminate the need for OTP for transactions up to Rs 2,000, while also ensuring a completely secure payment experience," it added.
9. Tata Capital Housing Fin Plans to Raise Up to Rs 2,000 Crore via NCDs
Tata Capital Housing Finance, the wholly-owned subsidiary of Tata Capital Ltd, on Monday said it is planning to raise up to Rs 2,000 crore through non-convertible debentures.
This is a maiden retail bond issue from the company. The base size of the issue is of Rs 500 crore with an option to retain an oversubscription up to Rs 1,500 crore.
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