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- India's airlines suffering double whammy: IATA (Second Lead)
- Seven researchers from the US and Britain who developed a revolutionary gene therapy for a form of inherited childhood blindness, have been awarded the 2018 Antonio Champalimaud Vision Prize.
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- सन à¤à¥à¤µà¥ नà¥à¤à¤µà¤°à¥à¤ लि. बà¥à¤à¥à¤ रà¥à¤ªà¤¯à¥ 710 à¤à¥ लà¤à¥à¤·à¥à¤¯ पर: डा. सà¥à¤à¥ नारायण
- Nifty’s primary uptrend is still intact; stay away from shorts
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- Loans to MSMEs, usually given to small entrepreneurs, have risen in the last four years as both banks and NBFCs have rushed to fund this sec...
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- NTPC officials conveyed to lenders that they have drawn a list of 10 companies which they are eyeing to acquire through the IBC route.
- A lowdown on top macro triggers that may move market on Wednesday.
- Experts predict that the rupee may slip further in the days to come.
- Parties to the RCEP negotiations also agreed to Indiaâs demand to give tariff concessions to other partners except China over a 20-year period.
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- The normal taxpayers will need to file GSTR-9 return form while composition taxpayers will have GSTR-9A. The last date for filing the annual return form for 2017-18 is December 31.
Niftyâs primary uptrend is still intact; stay away from shorts The levels of 11,565 and 11,620 will act as technical resistance area on Wednesday. - This will be the first airline-related deal in India headed by Moelis. In August, the bank managed Montreal-based loyalty analytics company Aimiaâs $2.1billion (Rs 15,120 crore) sale of its Aeroplan loyalty business.It was sold to a consortium of Air Canada, Toronto Dominion Bank, Canada Imperial Bank of Commerce and Visa Canada Corp.In February, it managed New York-based defence and aerospace company L3 Technologiesâ sale of its Vertex Aerospace business valued at $540 million (Rs 3,888 crore) to private equity firm American Industrial Partners.Jet declined to comment. Moelis didnât respond to queries. The loyalty programme stake sale is crucial to the fundraising move to stay afloat. The airline hasnât specified the stake it wants to offload but one of the people cited above said it would sell âa large part of its stakeâ although it would âconsider itself unwiseâ to completely exit the business.Jet hasnât publicly disclosed a valuation for its loyalty programme but to potential investors it has cited a report by global independent consultant On Point, which has valued the business at $1.13 billion (.`8,136 crore). Jet Privilege was ranked at 31, ahead of Etihadâs loyalty business at 38, with a valuation of $765 million (.`5,508 crore).Etihad bought its stake in JPPL in 2014, valuing it at $300 million (.`2,000 crore). Memberships have trebled since then to 8.5 million from 2.8 million. The company posted a net profit of .`100 crore for the fiscal ended March 31 and its revenue grew 25%.Shoring up financesThe Indian carrier has spoken of other means of recapitalisation to shore up its finances without giving details. During the April-June quarter, the airline received liquidity assistance of $300 million (.`2,000 crore) in the form of incentives from lessors and cheap loans from financial institutions, its finance chief Amit Agarwal said in a recent post-earnings conference call. He didnât elaborate. Jet also aims to put in place several cost cutting measuresâ"including reworked maintenance contracts that will save it .`1,000 crore by the end of next yearâ"to keep itself afloat, Agarwal had said.Jet Airways has been passing through its worst financial and operational phases since inception.The senior management last month took pay cuts of as much as 25%. The company asked pilots and technicians to take similar cuts but they refused. Reports last month that Jet had told employees the carrier had just enough resources to last 60 days without cutting costs sent shares to a three-year low. The airline later denied it.SBI said the airline was on its stressed loans list, which was denied by Jet. The carrier then deferred its earnings announcement, saying auditors hadnât presented them to the board. Jet later clarified it had sought more time. More recently, Jet confirmed it received a communication from the Registrar of Companies seeking clarifications in response to a complaint received by the body of the Ministry of Corporate Affairs.
- On US concerns over the trade deficit with India, New Delhi plans to highlight the steps taken to increase imports from the country, which helped narrow the gap by over $1 billion last year. âWe will be importing oil worth $2.5 billion from the US this year. Washington has to appreciate these efforts being made by India,â the official said.Some of the US sanctions on Iran took effect early August, while others, mainly related to the petroleum sector, will kick off after November 4. The US is willing to offer a waiver to countries that make a âsignificantâ reduction in imports. Without this exemption, countries dealing with Iran after the deadline will risk getting cut off from the US financial system. India has been seeking a waiver from the US, although it is unwilling to reduce imports anytime soon.âIndia will not cut import of Iranian oil. If there is some import reduction after November 4, that would be purely due to logistics or operation hurdles such as lack of tankers or insurance or reinsurance,â one person said.If India continues to import oil from Iran, it will have to find a way to pay for the supplies because the State Bank of India has already told refiners it canât support Iranian purchases during sanctions. The government is yet to identify a bank that can be used to channel Iranian oil payments.India imports a tenth of its crude oil from Iran and is the biggest buyer of crude from the Islamic Republic after China. There is also the problem of making technical adjustments to refineries if a new form of crude oil is imported as it would require time, effort and resources.
- Kotak has called for a review of LAP-based lending, given the volatile nature of property prices. âWhenever we are finding SMEs getting into any stress, in many situations, the first thing we find is so-called current assets, which may be charged to banks or lenders, suddenly evaporate. When we go out to find the details of those assets, either they do not exist, or they have moved out of the books of the company,â Kotak told analysts, questioning whether valuations of properties are being done as they should be.THE OTHER SIDE OF THE STORYHowever, despite the growth in loans outstanding to this sector, MSMEs still feel that they have not got enough attention from banks. Archana Garodia Gupta was one angry panellist at the FICICI-IBA session on financing MSMEs last week. The Delhi-based manufacturer of imitation jewellery vehemently countered bankers on their claims of increasing credit flow to MSMEs, arguing that bankers are reluctant to support these enterprises.âI would say that banks have not lent a single rupee to MSMEs,â said Gupta, the promoter of Touchstone Gems & Jewellery, a Delhi-based firm with an annual turnover of Rs 10 crore. âAll banks have done is lend against a 100 per cent collateral, not taking risk and instead betting on property appreciation. We have only seen collateral caps and documentation two inches thick,â said Gupta, who is also the chair of the FICCI National MSME Committee.An RBI study released in August said that the MSME sector consists of more than 63 million units and employs around 111 million people, contributing around 30 per cent to the GDP. It accounts for about 45 per cent of manufacturing output and around 40 per cent of total exports.However, demonetisation and GST have hit the sector hard. âThe MSME sector has witnessed two major recent shocks, demonetisation and introduction of goods and services tax. For instance, contractual labour in both the wearing apparel and gems & jewellery sectors reportedly suffered as payments from employers became constrained after the note ban. Similarly, GST led to an increase in compliance costs and other operating costs as most of the MSMEs were brought into the tax net as over 60 per cent of them were not ready for the new tax regime,â said the RBI report.The sector is also important because about 97 per cent of MSMEs operate in the informal sector, and their share of informal sector in gross output of MSMEs is about 34 per cent. As per National Accounts Statistics, the share of informal sector manufacturing MSMEs in total GDP is around 5 per cent.Gupta said banks have not done enough to reach out to this sector. âAfter 20 years in this business, I still have to produce 100 per cent collateral. A lot of MSMEs have to buy property just to ensure that they get a loan because a bank does not recognise any other collateral.All the money that banks have lent to the sector so far is either profit or appreciation in the property minus the interest. They have infused no fresh funds,â Gupta said.In his call with analysts, Kotak too pointed out that the sector has been hurt due to demonetisation and GST. âEssentially, a lot of the SMEs in India have traditionally been financed by the public sector banking system, a lot of these SMEs have been significantly undercapitalised on the equity side.Therefore, a combination of external changes in our equity and some of the challenges in the banking system have all converged.This will put pressure on this segment. As a result, the ability to absorb shock by this segment is limited,â Kotak said.Public sector banks say that a higher amount of NPAs from this segment is mainly because they give loans to entrepreneurs in the early part of their business journey, while the private sector shuns them.âPublic sector bank NPAs are much higher (also) because they have to also do government schemes where the delinquency can go up to 35 per cent. Private banks and NBFCs do not have to deal with those issues,â SBI chairman Rajnish Kumar said as part of the FICCI-IBA panel.NOT ALL CONVINCEDHowever, Kotakâs warning on the sector does not seem convincing to many. Take DCB Bank, for example, which gives more than 80 per cent of its loans to this segment with funding requirements of below Rs 3 crore and ticket size ranging between Rs 40 lakh and Rs 50 lakh.âBased on our internal MIS, we believe that much of the MSME/SME segment that we deal with have more or less bounced back after demonetisation and the introduction of GST. We sincerely believe that these measures taken by the government will be beneficial in the long run. We believe that as more and more information is available on GST and income tax returns, finance requirement of MSME/ SME segment will become easier,â said Murali Natrajan, CEO at DCB Bank.DCB regularly monitors stock and order book of the customers when providing working capital loans.âThis helps us to adjust the drawing power of the customer, for example, even if the sanctioned limit is Rs 20 lakh, we may allow only Rs 15 lakh based on the business performance. This is an age old banking practice,â Natrajan said.Bankers, however, claim that new models of risk mitigation based on data, cash flow analysis will bring down risks in lending to this sector. âI think with all this, better days are ahead. I expect public sector banks to get back into the game,â Kumar from SBI said.NBFCs in the business of financing these entrepreneurs also do not find it alarming. They are now looking at this as one big highyielding opportunity. âThe market is huge and growing. Not to forget the spillovers from PSBs, which have 70 per cent of the market share. Even if 5 per cent of that comes, itâs a very big opportunity for companies like us. LAP is an established asset, but yes, real estate is a risky collateral.However, we can adjust loan to value. We now look for collateral together with company resource, which means ongoing businesses,â said Devang Mody, CEO, Reliance Commercial Finance.Will Kotak be proved right or will MSMEs continue to yield high returns? Only time will tell.
- Overall, we may expect the market to make few attempts to gain stability. The Nifty has ended near its short term 20-DMA and it would be crucial to see if it manages to take support and continues to remain in a defined range. No runaway upmove is expected in any sector, though, we will continue to see defensive stocks relatively outperforming the market. It is important to note that there is no structural breach on the charts and the primary uptrend remains intact. We recommend not to take any aggressive short positions and continue making smart purchases. Cautiously positive approach is advised for the day. STOCKS TO WATCH: Long positions are seen being added in stocks like Axis Bank, Mindtree, Bajaj Finance, Apollo Hospitals, Wipro, Sun Pharma, TCS, Reliance and Tata Elxsi. (Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)
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- Article at EconomicTimes.com with article id : 65679142
- Article at EconomicTimes.com with article id : 65679106
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- Article at EconomicTimes.com with article id : 65679036
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- Article at EconomicTimes.com with article id : 65679128
- Article at EconomicTimes.com with article id : 65679112
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- Article at EconomicTimes.com with article id : 65679345
- Copyright:(C)Wed 05 Sep 2018, 08:35:312018Wed 05 Sep 2018, 08:35:31 Bennett Coleman & Co. Ltd, http://info.indiatimes.com/terms/tou.html
- India is getting 18 bullet trains from Japan for Rs 7,000 crCountryâs 1st bullet train is likely to start running between Mumbai & Ahmedabad by the end of 2022.
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- Wanted: 20,000 grads for operation 'Clean Facebook'Facebook directly employs content moderators but also outsources the task of screening posts.
- Copyright:(C)Wed 05 Sep 2018, 08:34:512018Wed 05 Sep 2018, 08:34:51 Bennett Coleman & Co. Ltd, http://info.indiatimes.com/terms/tou.html
- Mumbai: Jet Airways has finalised boutique investment bank Moelis & Co to manage a stake sale in the loyalty rewards programme that the carrier co-owns with Etihad Airways, said two people close to the development. The airline is meanwhile in advanced talks with private equity firms TPG Capital and Blackstone for the sale and will zero in on one of them shortly, said one of the persons cited above.The decision on the lead bank â" Jetâs first concrete step towards monetising its profitable rewards programme to shore up ailing finances â" was taken Monday night in a meeting held at chairman Naresh Goyalâs house in Mumbai. ET had reported on August 13 that TPG Capital and Blackstone were among the possible contenders.Etihad, which owns 50.1% in Jet Privilege Pvt Ltd (JPPL), is taking the lead in pushing the deal. Jetâs former CEO Cramer Ball, a key Etihad executive now heading its other airline investment Alitalia, has been tasked with a key role as has been Robin Kamark, who heads the Abu Dhabi-based carrierâs strategic airline investments. Etihad is invested in seven airlines across the world. It owns 24% of Jet.
- India will likely tell the US that it wonât be able to cut oil imports from Iran after sanctions take effect early November and hopes to âsensitiseââ Washington to the issues faced by the country in this regard, while making it clear that no nation can dictate how its external policy can be run.The foreign and defence ministers of India and the US are meeting in New Delhi on Thursday under the 2 + 2 dialogue to discuss a range of bilateral, regional and global issues.Indiaâs refineries are heavily dependent on supplies from overseas, including Iran, and giving up this cheaper option will be tough when retail prices of fuels are at an all-time high in the country, according to people familiar with the plan. âWe want to make the point that India is heavily reliant on oil imports for its consumption needs and 83% of its oil comes from external sources,â an official noted.India will also want to discuss alternative sources of oil with a focus on prices. âPricing of oil imports is very important for India as a number of factors such as economic growth and inflationary trends are tied to it,â the official said.
- Is there a risk building up in lending to micro, small and medium enterprises (MSMEs)? Yes, if you ask Uday Kotak. Asiaâs richest banker surprised analysts in a conference call after Kotak Mahindra Bankâs first quarter results by raising concerns over lending to MSMEs because of faulty valuations of collaterals for these loans. âIf you and I spoke in 2011-12 about project finance and large corporate loans, I was the one who raised concern about fundamental credit worthiness of some of these large project finance loans. I am today raising similar concerns over fundamental role of collateral valuers and the real truth of those valuations⦠I believe there is a reasonable reason to believe that there is significant overvaluation of collaterals across the banking and finance industry,â Kotak said.Loans to MSMEs, usually given to small entrepreneurs, have risen in the last four years as both banks and non-banking finance companies (NBFCs) have rushed to fund this sector through their socalled loan against property (LAP) product. It took land and property as the mortgaged assets for loans. It is the valuation of these assets that is being questioned by the billionaire banker.Latest data from credit information bureau Cibil-Transunion show that loans to MSMEs by banks and NBFCs increased to Rs 12.60 lakh crore in March 2018, from Rs 7.06 lakh crore in March 2014. It now constitutes 23 per cent of corporate loans, up from 21 per cent four years ago.However, even as exposure to the sector has risen, so have the nonperforming assets (NPAs). Micro enterprises that Cibil defines with loan exposure of less than Rs 1 crore have seen a jump in NPAs to 8.8 per cent in March 2018 from 7.7 per cent in March 2014. For SMEs, the jump in NPAs is sharper to 11.2 per cent of loans in March 2018 from 7.9 per cent in March 2014.Analysts say the risks in MSME lending highlighted by Kotak are not new as the sector by its very entrepreneurial nature is prone to volatility linked to the economy, changing business dynamics and risks in promoter-linked businesses.âWe have been highlighting over the last two years the risks building up in the loan against property segment,â said Udit Kariwala, analyst at India Ratings.65679338
- Qatar Airways would wait for the FDI rules in India to become more âfavourableâ before launching an airline subsidiary in the country, group CEO Akbar Al Baker said. âWe are really very interested to launch an airline in India but the regulation is a little bit confusing to us,â he said.âBecause what we gathered in the beginning is that foreigners could own 100% of a domestic Indian carrier. Our lawyers have gone and asked for the process of doing the application. And then we are told âno, as an airline you can only own 49%â.âAl Baker said QIA [Qatar Investment Authority] can own 100%, but QIA is the owner of Qatar Airways. âSo, then again it becomes a chicken and an egg story. We really donât know what is allowed... but we are very interested to launch an airline and operate an airline.â He said the airline would wait for twelve more months for the policy to become favourable for them.Al Baker also said they have no issue with 100% Indian control on the airline because âat the end of the day, we will not come, sit and run the airline in India. We will, of course, have an Indian management, an Indian board, an Indian chairman. So, the effective control will be with Indian nationals but the owner will be the state of Qatar â" Qatar Airwaysâ. Aviation secretary RN Choubey said Qatar Airways would be able to launch the airline only if it gets an Indian partner.âExisting policy of the government is that the substantial ownership and effective control should remain with Indian nationals and they will have to comply,â Choubey said.âYou cannot have substantial ownership of more than 50% because then you are violating the policy. If he thinks that he should have an airline that is entirely owned by Qataris, presently, it is not possible. If he thinks that he can run an airline that is 49% foreign-owned and 51% Indian-owned, that is possible. They will have to find an Indian partner and it is possible.âDuring the interaction, Al Baker said Qatar Airways is not averse to an Indian partner but the partner needs to be âgoodâ. âIf we get a good Indian partner, with no political baggage, we will be interested to form a partnership for the domestic airline,â he said.He added that, as on date, the only airline in India they would consider partnering with or investing in is IndiGo, because it is an efficiently run, profitable airline.âWhen we want to invest, we want to invest in a success story. Rahul Bhatia (co-founder and interim CEO of IndiGo) is a good friend and if he is willing to do something with us, we are very open,â Al Baker said.He said that they would not be able to launch the airline in India if these rules are changed within 12 months. âIf the IndiGo investment doesnât work and its plan to start a domestic airline hits regulatory hurdles, Qatar will have to forget about India,â Al Baker said, adding that it cannot indefinitely hold up funds and planes, and will invest somewhere else.
- After opening flat and trading lacklustre in the first half of the trade, the market again turned negative and slipped to close at yet another day with losses. The pain was witnessed more in the broader market, as this was evident in the market breadth, which remained much weaker in the favour of the declines. Except for the IT pack, all the sector indices ended in the red. The NSE benchmark Nifty declined 62.05 points or 0.54 per cent.
- As we approach Wednesdayâs session, depreciating rupee and higher crude oil prices along with weak global cues are likely to act in tandem with weak technical indicators. We expect a modest opening to the trade, and some mild corrective undertone may continue to persist. Though downsides, if any, may not be severe, but broader market may continue to underperform. The levels of 11,565 and 11,620 will act as technical resistance area on Wednesday. Supports may come in at 11,480 and 11,410 zones. The Relative Strength Index (RSI) on the daily chart is 54.9449 and it has marked yet another 14-period low, which is bearish. A bearish divergence was also observed, as while RSI marked a fresh 14-period low, the Nifty did not. The daily MACD stayed bearish while trading below its signal line.
- Article at EconomicTimes.com with article id : 65679370
- Garmin’s 7″ Smart GPS packs Bluetooth, lifetime traffic, more: $119 (Refurb, Orig…
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