Ahead of posting its 2nd quarter earnings, India’s largest public sector bank SBI was in for a rude shock. Global credit rating agency Moody’s has downgraded its stand-alone rating. Moody’s has downgraded SBI to D+ from C-. This implies that, SBI which earlier had adequate financial strength might need some outside financial support.Modest capital and weakening asset quality were the chief reasons for this downgrade. Moody’s also noted that SBI’s non-performing assets could continue to rise in the near term, warranting the action. Reacting strongly to the ratings the bank’s stock tanked more than 4%.
The telecom department is set to issue a notice to Etisalat formally known as Swan Telecom .This notice might cancel the 13 telecom licenses of the company. The department views Swan as having been an ’associate’ of Reliance Telecom at the time it had applied for spectrum in 2007.In a 28 September note, DoT interprets a law ministry ruling on the term “associate” to say that Swan was a front for Reliance, which isn’t allowed under the rules. Swan is one of the entities that’s been charged by the CBI in an ongoing case over alleged wrongdoing in the allocation of 2G telecom licenses.
Apple Inc will unveil its latest version of iPhone on Tuesday. New CEO Tim Cook will do the honors. Dubbed iPhone 5, the new model is expected to be faster, thinner and larger-screened. Loaded with the updated iOS5 software, Apple Inc is looking at keep competitors like Google’s android & Samsung Electronics at bay.
Anna Hazare is taking on the Congress in the upcoming bypolls. Hazare said, he will appeal to voters in the Hissar constituency in Haryana to not vote for Congress candidate as the party was “deliberately” not bringing in the Jan Lokpal bill. Anna has given a notice to the government to pass the anti corruption Bill in Parliament’s Winter Session. Anna withdrew his 12 day fast at the Ramlila grounds on assurances that his three main demands will be addressed. He has warned of another hunger strike in Lucknow before the state election if his demand is not meant this time.
Finally, Dalal Street remained in the red for the third consecutive session. Moody’s downgrade of SBI & uncertainty surrounding the EU situation were the main dampeners. The Sensex ended at 15864.86 and the Nifty ended the day’s trade at 4772.15
Despite the auto sector trading low, Maruti Suzuki maintained its top buying position. Maruti stock closed at 1106.55, up 29 points. IT stocks also traded in the green. Wipro ended the day’s trading at 334.30 while TCS closed at 1045.95.
Bankex was the worst hit sector. SBI was at a two year low of 1786.70 down by 4.08 %. Other losers included the country’s largest private lender, ICICI Bank which was down to 800.70 while HDFC closed down at 450.30