Business Live: Shares drop after Wall Street selloff; financials weigh


The benchmark stock indices have dropped by over 1% this morning after the overnight sell-off in US stocks.

Join us as we follow the top business news through the day.

10:20 AM

No such proposal before the board: VIL on reports of investment by Verizon, Amazon

The denial comes after reports yesterday that Amazon and Verizon may invest more than $4 billion in Vodafone-India.

PTI reports: “Amid reports suggesting that Verizon and Amazon may invest over USD 4 billion in the company, Vodafone Idea on Thursday said while it constantly evaluates various opportunities as part of corporate strategy, there is no such proposal currently before its board.

As and when various proposals are considered by the board warranting disclosures, the company will comply with the disclosure obligations under the SEBI rules, Vodafone Idea said in a regulatory filing.

“As part of corporate strategy, the company constantly evaluates various opportunities for enhancing the stakeholders’ value…Currently, there is no proposal as reported by the media that is being considered at the board,” VIL said.

The VIL filing came after BSE sought clarification from the company on Thursday over a media report suggesting that Verizon and Amazon could invest over USD 4 billion in Vodafone Idea.

“We wish to reiterate and clarify the company will comply with SEBI listing regulations and duly keep the stock exchanges informed of all the price sensitive information,” VIL added.

It is pertinent to mention here that the Vodafone Idea board is scheduled to hold a crucial meeting on Friday to consider fund-raising through various means.

The development comes following the Supreme Court verdict directing all telecom operators to pay 10 per cent of total Adjusted Gross Revenue (AGR)-related dues this year, and rest of the payments in 10 instalments starting from next fiscal year.

Vodafone Idea has AGR dues of over Rs 58,000 crore, of which the company has paid Rs 7,854 crore to the Department of Telecom so far.

In a filing earlier this week, the company had said that the board at its meeting will “consider and evaluate any and all proposals for raising of funds in one or more tranches by way of a public issue, preferential allotment, private placement, including a qualified institutions placement or through any other permissible mode and/or combination thereof…by way of issue of equity shares or by way of issue of any instruments.”

The board will also consider raising funds through securities including securities convertible into equity shares, global depository receipts, American depository receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, and/or non-convertible debentures including non-convertible debentures along with warrants, which may or may not be listed, it said.”

10:00 AM

Indian shares drop after Wall Street selloff; financials weigh

A sharp fall in Indian stocks as volatility picks up in bourses across the world.

Reuters reports: “Indian shares fell sharply on Friday, tracking Asian peers that dropped after a selloff in high-flying technology stocks on Wall Street, with financials and conglomerate Reliance Industries Ltd also weighing on the markets.

By 0347 GMT, the blue-chip NSE Nifty 50 index fell 1.55% to 11,348.60, while the S&P BSE Sensex slid 1.49% to 38,413.36.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.6% after Wall Street’ main indexes marked their deepest one-day declines since June.

In Mumbai, losses were broad based, with all stocks on the Nifty trading lower.

The Nifty bank index fell 2.3% after India’s top court on Thursday directed banks not to declare any loans that were standard as of end-August as non-performing until further orders, raising uncertainty over recovery efforts. HDFC Bank Ltd was among the top drags on the Nifty, falling 1.8%

Also dragging the Nifty was India’s most valuable company, Reliance Industries Ltd, which fell 1.2%.”

9:30 AM

Nirmala gives banks September 15 deadline to roll out loan resolution schemes

Lenders must not use coronavirus (COVID-19) related distress as a factor to determine borrowers’ creditworthiness, Union Finance Minister Nirmala Sitharaman told top bankers on Thursday. She directed them to roll out loan resolution schemes by September 15, aiming to maximise relief before the start of the festive season, according to a Finance Ministry statement.

Ms. Sitharaman’s meeting via video-conference with the heads of commercial banks and non-banking financial companies was aimed at reviewing their state of preparedness for implementing the loans resolution framework for COVID-19 related stress.

Last month, Reserve Bank of India gave permission for one-time restructuring of corporate and retail loans without classifying them as non-performing assets, in a bid to help borrowers tide over the pandemic-related economic crisis.

 

.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *