Companies and Markets

Companies & Markets

RIL to acquire 5% in Eros International for Rs 1,000 cr

Reliance Industries (RIL) on Tuesday  said it will acquire a 5 per cent stake in NYSE-listed Eros International for Rs 1,000 crore with a view to producing and acquiring Indian films and digital originals across all languages.

RIL and Eros International announced that RIL, through a subsidiary, "has agreed to subscribe to a 5 per cent  equity stake" in Eros at a price of $15 per share.

Both the companies have agreed to partner in India to jointly produce and consolidate content from across the country.

Fraud-hit PNB likely to report higher losses in coming quarters

State-owned Punjab National Bank is likely to report substantially higher losses in the current quarter and in FY19 as well, which, along with a sharp rise in its stressed assets portfolio, may significantly impact its net worth.

According to analysts, the key focus of the bank’s management may shift from growing the balance sheet on stated path to reassessing its entire risk management framework and containing the collateral damage in the wake of the huge fraud, which may have a significant negative impact on the bank’s operating performance.

Artificial intelligence to catch rogue borrowers

PNB fraud could be an eye-opener. Banks and financial services companies would increasingly adopt artificial intelligence and machine learning to understand the credit worthiness of both individual and the corporate borrower.

Machine learning can do what humans usually fail to do. A perfect example of this is accurately identifying the rogue borrower working across multiple accounts; machine learning does this by deploying predictive analysis to huge amounts of data in the real time, said Rachit Chawla, CEO, Finway Capital.

Brazil’s Maxion to set up aluminium wheels facility near Pune

The $1.8-billion Maxion Wheels, a division of Sao Paulo Stock Exchange-listed Iochpe Maxion, the world’s biggest wheel manufacturer for passenger and commercial vehicles, is setting up an aluminum wheels factory in Maharashtra. The Brazilan company already has book order for 4 lakh units of aluminum wheels in hand from the Indian market.

The steel and alumina wheels maker on Monday held a ground breaking ceremony in Khed industrial area, near Pune, for the factory to manufacture two million aluminum wheels annually in the first phase.

Government allows commercial coal mining by pvt firms

Ending the monopoly of state-owned Coal India (CIL), the government has allowed private companies to mine and sell the fossil fuel in the open market. The move is aimed at attracting global giants like Rio Tinto, BHP Billiton and Vale as well as domestic firms like Essel Mining and Sesa Goa into commercial coal mining. Private players are now allowed to mine coal for captive use only.

RBI intervention stems rupee plunge, still ends 58p lower against dollar

Weakness in domestic stocks weighed on the rupee, which lost a massive 58 paise to end at a fresh three-month low of 64.79 against the US dollar. A strong dollar overseas due to a rise in treasury yields and release of minutes of Federal Reserve’s last monetary policy meeting were other factors that pulled down the local currency.

RBI says it warned thrice in the past

The Reserve Bank of India (RBI) has been receiving flak from all quarters ever since PNB scam broke out, but on Tuesday it came out stoutly defending itself. Within minutes of finance minister Arun Jaitely’s remark putting the blame on auditors, the RBI in a strong-worded statement said that it has been alerting banks thrice on potential abuse of the inter-bank messaging system, SWIFT, since August 2016.

Seafood exports to cross $6 bn in current fiscal: MPEDA

Buoyed by aquaculture growth, enhanced processing capacity and favourable market conditions, India’s export earnings from marine products could cross $6-billion mark during the current fiscal, according to the Marine Products Export Development Authority.

Normalisation process on

The market started the F&O expiry week on a subdued note as key indices ended with losses over soured sentiments over loan fraud cases in the PSU bank space.

The Sensex lost 236.10 points, or 0.69 per cent, to settle at 33,774.66, while the Nifty-50 lost 73.90 points, or 0.71 per cent, to settle at 10,378.40. 

The market witnessed huge volatility, with key indices opening higher but erasing gains to sink into the negative zone.

The BSE Mid-Cap Index declined 1.05 per cent and the Small-Cap fell 0.99 per cent. Both the indices underperformed the Sensex.

E-retailing may log in 2.5 times growth in 3 years

The booming e-retail market is likely to surge over two-fold over the next three years, as players will be forced to shift their focus from discounts to consolidation, geographical diversification, business realignment and enhancing customer stickiness, says a report.

According to Crisil, going by the 2016-17 data, the e-retail market represents about 1.5 per cent (Rs 70,000 crore) of the overall Rs 49 trillion retail sector in the country, indicating enormous growth potential.