Tata Steel-Thyssenkrupp merger, China rating cut and Nifty’s all-time high
Tata Steel to merge its European operations with Thyssenkrupp AG; S&P Global Ratings changes China's rating to A+; Nifty closes at its highest-ever value
1. Nifty touches an all-time high
The National Stock Exchange’s Nifty index closed at its highest-ever value on Monday. The rise in India was on the back of a global wave which saw buying across markets. An easing of tensions over North Korea’s missile tests and hopes of benign global liquidity conditions helped sentiment. The Nifty closed at 10153.1. The index ended the week at 9,964.40, after a 1.56% fall on Friday. The rise in recent days had come despite foreign outflows.
2. The government’s plan to revive growth
Finance minister Arun Jaitley said that the government is likely to soon announce measures to help the economy recover from its recent slowdown. India’s gross domestic product (GDP) growth of 5.7% in the June quarter was its slowest in three years. Infrastructure spends and export incentives are said to be among the measures announced. Jaitley chaired a meeting about the economic situation on Tuesday.
3. Oil company consolidation
Government-owned Bharat Petroleum Corp. Ltd (BPCL) is looking to acquire the government’s stake in another company. It is talking to India’s largest natural gas transporter GAIL (India) Ltd to pick up the government’s stake in the company, Mint reported on Monday. The government owns 54.88% in GAIL. This is valued at Rs37,188 crore, based on Monday’s market price.
4. TRAI cuts interconnect charges
The Telecom Regulatory Authority of India (Trai) has cut charges for calls that involve two telecom operators. Tuesday’s move halved the interconnect usage charge (IUC) to six paise, beginning next month. It will cease altogether for all local calls from 2020 onwards. The move is expected to help newer players, while negatively affecting incumbents.
5. The end of QE
The American central bank has said that it would be ending its quantitative easing programme from October. The US Federal Reserve had started the programme as part of its rescue attempt during the global financial crisis which saw marquee names like Lehman Brothers collapse in 2008. The reversal would begin from next month, according to statements made on Wednesday.
6. China rating cut
Rating agency S&P Global Ratings has changed its outlook for the worse on China’s rating for the first time since 1999. Rising debt has caused its outlook to change from stable to negative, according to a statement on Thursday. The lower the rating, the more likely a country is to default on its debt. China is now rated A+, from AA- earlier.
7. Losing confidence
Chief financial officers are now less confident than they were earlier about the economy. Dun & Bradstreet’s India CFO survey shows that the composite CFO Optimism index has fallen 11% on annual basis. It is down 5.7% over the previous quarter, according to September numbers that Mint reported on Thursday.
8. Domestic air traffic up
Domestic air traffic continued to grow in double-digits in August. A total of 9.69 million passengers flew during the month. This reflects a 16% rise over the 8.38 million passengers in August last year. Civil aviation regulator Directorate General of Civil Aviation (DGCA) released the figures on Monday. Indigo has the biggest market share, according to its data.
9. Merger for Tata Steel’s European operations
Tata Steel Ltd announced on Wednesday that it would be merging its European operations with German steelmaker Thyssenkrupp AG. The move would make the resultant company Europe’s second-biggest steel-maker and help save as much as €600 million for the joint entity, according to statements that the companies made. Negotiations had been ongoing for a year-and-a-half.
10. Google deal with HTC
Google announced on Thursday that it would be buying a part of HTC Corp.’s design team and engineering operations. The deal is pegged at $1.1 billion. The move is seen as a bid to strengthen Google parent Alphabet Inc.’s hardware capabilities. HTC, meanwhile, has been struggling with revenue losses.
Graphics by Prajakta Patil
Comments are welcome at feedback@livemint.com
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!