How RBI Helped the Promoter of a Defaulting Power Company RattanIndia Power and Gave Him an NBFC Licence! - I
Would you be surprised if the Reserve Bank of India (RBI) grants a licence to Vijay Mallya for starting, or acquiring, a non-banking finance company (NBFC) today? Well don't be, if RBI’s track record is anything to go by. 
 
The NBFC business, by its very nature, depends on leverage. A typical NBFC is required to have a capital adequacy ratio of 15%. Even within that, it can have...
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  • NSE, Sensex May Head Higher if Today’s Low Holds – Wednesday closing report

    We had mentioned in Tuesday’s closing report that Nifty, Sensex were to head higher. The major indices of the Indian stock markets closed with gains over Tuesday’s close. On the NSE, there were 1,173 advances, 600 declines and 298 unchanged. On the BSE, 1636 shares advanced, 1025 shares declined, and 147 shares were unchanged. The trends of the major indices in the course of Wednesday’s trading are given in the table below:

     

     
    BPCL, Bajaj Finance, ICICI Bank, Reliance Industries, Vedanta, Power Grid Corp and Bharti Infratel were among major gainers on the indices, while Tata Motors, Axis Bank, HUL, Hero Motocorp, HCL Tech, Zee Entertainment and Indiabulls Housing slid. Among the sectors, except auto all other indices ended in green led by energy, pharma, infra and metal.
     
    A day after Jet Airways informed about grounding of two more aircraft, the scrip price fell over 4% during the intra-day trade, but recovered to end higher. Investors were jittery over the financial health of the company following continuous grounding of aircraft, the latest of which came on Monday. The company in BSE filings had informed that its 19 aircraft were grounded in February over non-repayment of dues to lessors, while 6 aircraft were grounded this month, taking the total to 25. The Jet Airways Group operates a fleet of 123 aircraft. "Further to our letter dated 2 March, 2019, we now write to inform you that an additional two aircraft have been grounded due to non-payment of amounts outstanding to lessors under their respective lease agreements," the company said in a regulatory filing on late Monday. Lately, Jet Airways has been in a tight spot financially even as a rescue plan is being negotiated between the airline, its partner Etihad and a consortium of banks. Jet Airways shares closed at Rs239.30, up 0.08% on the NSE.
     
    Budget carrier IndiGo commenced a three-day special Holi sale across its network. "Effective March 5, 2019 till March 7, 2019, IndiGo is offering all-inclusive fare starting at Rs899 across domestic and Rs3,399 across international sectors. This sale is valid for travel between March 19, 2019 and September 28, 2019," the company said in a statement. At present, IndiGo with a fleet of over 200 aircraft, the airline offers over 1,300 daily flights and connects 52 domestic and 15 international destinations. InterGlobe Aviation shares closed at Rs1,234.60, up 4.08% on the NSE.
     
    Infrastructure conglomerate GMR Group has not accounted for diminution of GMR Chhattisgarh Energy Ltd's (GCEL) value to the tune of Rs2,250 crore according to its auditor's note in its financial results for the December-ended quarter. It said that, if the management had accounted for the diminution, the loss after tax and minority interest cumulatively, up to December 31, 2018, for GMR Infrastructure would have been "higher by Rs2,250 crore with a consequential impact on the consolidated reserves of the group as at December 31, 2018". "Based on the valuation assessment carried out by an external expert during the year ended March 31 2018, there exists further diminution in the value of Rs2,250 crore for the group's investment in GCEL and certain other entities (associates or joint ventures) as at March 31, 2018," auditor S.R. Batliboi and Associates LLP said in the note. "The aforesaid accounting treatment is not in accordance with the relevant accounting standards," it said. However, a GMR Group spokesperson said, "GMR Group's amount referred to pertains to our energy plants which are under SDR (Strategic Debt Restructuring) arrangements and majority of it pertains to GMR Chattisgarh Energy Ltd where a change in control too is involved. "Any diminution in the value of investment based on estimates would be pre-mature pending outcome of SDR, and hence have been allowed to be recorded as qualification to give a true and fair view of the financial position.” GMR Infrastructure shares closed at Rs16.85, down 0.88% on the NSE.
     
    The top gainers and top losers of the major indices are given in the table below:
     
     
    The closing values of the major Asian indices are given in the table below:
     
  • User

    Nifty, Sensex To Head Higher – Tuesday closing report
    The markets were closed on Monday on account of Maha Shivratri. On Tuesday, the key Indian equity indices opened on a negative note on Tuesday, with the Sensex trading marginally lower, in line the major Asian markets. But the indices rallied and closed with huge gains. On the NSE, there were 1493 advances, 290 declines and 302 unchanged. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
     
     
    China on Tuesday lowered its economic growth target for this year to between 6 per cent and 6.5 per cent. Opening the annual session of China's legislature on Tuesday, Premier Li Keqiang laid out plans to fend off risks in the economy and keep the nation's jobless rate steady, reports Efe news. Chief among the remedies to prop up growth: increasing deficit spending, launching new tax cuts and other fee reductions for businesses - totalling 2 trillion yuan, or 2 per cent of China's $13 trillion economy - and boosting bank lending to small and private companies by 30%.
     
    Reliance Infrastructure (RInfra) on Tuesday said that it has bagged a contract to build a greenfield airport at Hirasar in Rajkot, Gujarat, for Rs 648 crore. The airport is to be completed within 30 months from the date of issuance of the Letter of Award (LoA), RInfra said in a regulatory filing. The new airport is being constructed at a location near the National Highway 8B connecting Ahmedabad and Rajkot and nearly 36 km from the existing Rajkot Airport.
     
    State-owned Bank of Baroda (BoB) announced it has cut benchmark lending rate by 0.1 percentage points across all tenors up to one year, effective from 7 March 2019. The move would make home, auto and other loans cheaper for its borrowers.
     
    Ashoka Buildcon said its joint venture firm Stroytech Services LLC has emerged as the lowest bidder for a Rs443.23 crore railway project in Punjab. Ashoka Buildcon said it is the lead member of the JV firm, for the project in the Punjab. The project includes construction of roadbed, minor bridges, supply of ballast, installation of track, electrical (railway electrification and general electrification), signalling and telecommunication works for doubling of track between Kakrala halt and Hadiaya from 57.50 km to 115.64 km in Ambala division of Northern Railway.
     
    The top gainers and top losers of the major indices are given in the table below:
     
     
    The closing values of the major Asian indices are given in the table below:
     
     
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