10:40am Japanese bank
picks up stake in RCap
Reliance Anil Dhirubhai Ambani Group (ADAG) on Thursday
announced a strategic alliance with Sumitomo Mitsui Trust Bank in which the
Japanese bank would pick up 2.77 percent stake in Reliance Capital, the group’s
non-banking financial company that has interests in financing, asset management
and insurance.
The deal, valued at Rs 371 crore and to be carried out via a
preferential allotment, will give Japan’s is part of a long-term alliance and
Sumitomo may increase stake in Reliance Capital further, CEO Sam Ghosh told
CNBC-TV18.
“India is one of the favourable destinations for Sumitomo
and this is a token investment,” he said, adding that Rel Cap will be looking
to set up a joint mergers and acquisition desk.
In 2011, Reliance Capital, which had total debt of about Rs
18,305 crore as of September, had sold 26 percent stake in its life insurance
business to Japan’s Nippon. Nippon also picked up 26 percent stake in its asset
management business in 2012 and increased it to 35 percent in November this
year.
10:25am Japanese
economic data
Japanese annual core consumer inflation slowed for a fourth
straight month in November due largely to sliding oil prices, highlighting the
challenges the central bank faces in achieving its 2 percent inflation target.
Factory output unexpectedly fell and real wages marked the
steepest drop in five years, underscoring the fragility of the recovery and
dealing a blow to premier Shinzo Abe's stimulus policies aimed at pulling the
economy out of stagnation.
The core consumer price index (CPI), which excludes volatile
fresh food but includes oil products, rose 2.7 percent in November from a year
earlier, matching a median market forecast, government data showed on Friday.
Stripping out the effects of a sales tax hike in April, core
consumer inflation was 0.7 percent, slowing from 0.9 percent in October and far
below the Bank of Japan's 2 percent target, reports Reuters.
10:00am Market Check
Equity benchmarks erased early gains with the Sensex falling
38.04 points to 27170.57 and the Nifty declining 2.70 points to 8171.40 weighed
by FMCG, metals, oil & gas and select technology stocks. However, banks and
capital goods stocks remained firm.
About 870 shares have advanced, 873 shares declined, and 68
shares are unchanged on the Bombay Stock Exchange.
Sandip Sabharwal of asksandipsabharwal.com is very skeptical
of the market for the first few months of 2015. According to him the market is
likely to enter a difficult phase. The upcoming earnings season could be one of
the worst in past several years and some of the global headwinds with regards
to liquidity also remain, feels Sabharwal.
Shares of ITC, Tata Motors, Hindustan Unilever, Wipro, Sesa
Sterlite and GAIL declined 1 percent each while Infosys, State Bank of India,
Axis Bank, HDFC Bank, L&T, ICICI Bank, Sun Pharma, Coal India, Tata Power
and BHEL gained 0.2-1 percent.
Power Grid gained 2 percent as reports suggest that power
ministry invoked provision of “compressed time schedule” to award 8 new
transmission projects to the company. The estimated cost for these 8 projects
is seen at Rs 36,000 crore.
SpiceJet surged 9 percent ahead of the company providing a
revival plan to government today. Reports suggest that JPM Chase and Ajay Singh
could invest USD 200 million and the deal is likely to be finalised in next 6
weeks. Kalanithi Maran is keen to exit the airline completely. More information
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