Market Highlights: Sensex ends over 450 points lower as Tata Steel, SBI, HDFC twins drag; Air India divestment set in motion

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Updated:Jan 27, 2020 3:56:48 pm

The government has issued the preliminary information memorandum for 100 per cent stake sale in Air India. As part of the strategic disinvestment, Air India would also sell 100 per cent stake in low cost airline Air India Express and 50 per cent shareholding in joint venture AISATS.

bseSensex plummeted 280 points or 0.67 per cent to open at 41,332.75.

Market LIVE: Equity benchmarks Sensex, Nifty have slumped on Monday following trends in the global markets where shares have plunged on fear of coronavirus outbreak. Sensex plummeted 458 points or 1.10 per cent in intraday to finish the day’s trade at 41,155.12 while the Nifty 50 index was trading at 12,119.00, down 129 points or 1 per cent at the time of closing Monday. Mahindra & Mahindra has topped the Sensex pack with 1.63 per cent growth. Ultratech Cement has re-established its position on the Sensex pack after phenomenal Q3 results released on Friday. ICICI Bank is holding on to its strong position both on the Sensex and the Nifty50 index. Tata Steel, IndusInd Bank, HDFC BANK, SBI dragged the Sensex down

The government has issued the preliminary information memorandum for 100 per cent stake sale in Air India. As part of the strategic disinvestment, Air India would also sell 100 per cent stake in low-cost airline Air India Express and 50 per cent shareholding in joint venture AISATS. The successful bidder will also get management control of the airline. The government has set March 17 as the deadline for submitting the Expression of Interest (EoI).

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Highlights

    15:00 (IST)27 Jan 2020
    Air India to clear salary dues before closing stake sale deal; will be more attractive to buyers

    State-run carrier Air India will clear employee dues with arrears before it closes the stake sale deal with the successful bidder, Union Minister Hardeep Singh Puri said on Monday. The airline, which is currently reeling under a debt of Rs 80,000 crore, employs about 17,984 people and the airline has been withholding salaries of these employees for months now amid severe cash crunch.

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    14:59 (IST)27 Jan 2020
    Your company’s GST refund might be blocked; operations may be investigated

    Prime Minister Narendra Modi’s Sabka Vikas Yojana is received well by the taxpayers due to its amnesty on tax dues, but errors and mismatches have led to the government blocking GST refunds to the tune of Rs 40,000 crore. Due to mismatch in GST filings and returns, credits worth Rs 40,000 crore has been blocked on the directive of the Central Board of Indirect Taxes and Customs (CBIC).

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    13:46 (IST)27 Jan 2020
    How Goa state government plans to collect more tax from liquor buyers

    Excise department in Goa with the help of the new digital initiative is able to monitor the process of liquor production in the state and track its movement. It is also helping the debt-burdened state to identify the excise slabs which generates maximum revenue, the Indian Express reported. 

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    13:45 (IST)27 Jan 2020
    India’s mobile handset exports more than double; overtake last year’s exports in just 8 months

    Mobile handset exports from India have more than doubled in the first eight months of the current fiscal year. This is on top of a 132 per cent growth rate in the last fiscal as well. The overall exports of mobile handsets from India were USD 2.6 billion in FY19, which has reached nearly USD 3 billion till November in the current fiscal, according to the Department of Commerce. 

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    13:43 (IST)27 Jan 2020
    Air India’s 100% stake sale set in motion; Subramanian Swamy again threatens to move court to stop it

    As the government looks to offload its stake in debt-ridden national carrier Air India, BJP MP Subramanian Swamy took to social media to threaten court proceedings against the government if it continues with the divestment procedure.

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    11:57 (IST)27 Jan 2020
    Gold prices climb over two-week high, fears over coronavirus prompts investors to buy gold

    Gold prices were trading higher on Monday, climbing to a more than two-week high. “Gold prices on MCX opened with gap up, trading at 40590.00 up by 0.58 per cent as rising concerns over the spread of a virus outbreak in China and its potential economic impact prompted investors to buy the safe-haven metal. 

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    11:56 (IST)27 Jan 2020
    Budget 2020: Top stocks to buy before Budget; brokerages pick best bets for maximum returns

    Finance Minister Nirmala Sitharaman will present her second Union Budget on February 1, 2020. On account of Union Budget presentation, next week is going to be the longest trading week and stock markets will be open for normal trading.

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    11:27 (IST)27 Jan 2020
    Sabka Vishwas tax scheme ends with flying colours; now do this to ensure people pay tax

    Phew! the deluge has finally abated! As we assess the impact of the Sabka Vishwas Legacy Dispute Resolution Scheme (SVLDRS- 2019) which finally ended at the stroke of the midnight hour on the 15th of January, 2020, there is only one unanimous verdict – it has turned out to be one gigantic winner. A total of 1,89,229 declarations filed, coupled with a handsome revenue of Rs 14821 crores (almost 2 billion dollars) for the cash-starved government exchequer. The figures speak for themselves!

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    11:26 (IST)27 Jan 2020
    Govt steps in to make your bank deposits safer; banks to pay more in case of failures

    The union government has planned to increase the deposit insurance limit to Rs 5 lakh from the existing Rs 1 lakh. The move will make banks obligated to pay Rs 5 lakh to its depositors in case of failure.

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    11:26 (IST)27 Jan 2020
    Air India privatisation: Employee unions to meet in Delhi after govt announces 100 per cent stake sale

    Various Air India employee unions will meet here on Monday to discuss proposed privatisation of the debt-laden airline, sources said. The meeting was scheduled after the government, earlier in the day, announced sale of 100 per cent stake in Air India as it issued the preliminary bid document for the strategic disinvestment. Representatives of various Air India trade unions will meet here to discuss the government’s privatisation plans, sources said.

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    11:24 (IST)27 Jan 2020
    Rupee trades lower against US dollar on Monday amid growing fears over coronavirus

    The rupee opened sharply lower at 71.49 against the US dollar on Monday tracking weak opening in the domestic equity market and growing fears over new coronavirus in China. The instability in rupee is expected to continue ahead of FOMC meeting and India’s Union Budget. 

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    10:33 (IST)27 Jan 2020
    Sensex down over 150 points, Nifty tests 12,200; metals, private banks drag

    Domestic equity market opened on a weaker note on Monday tacking cues from their Asian peers where investors grew anxious about the economic impact of coronavirus outbreak.

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    10:00 (IST)27 Jan 2020
    PM Fasal Bima Yojna back in the slow lane — check premium collected, claims paid

    Even as sowing for the winter crop 2019-20 is about to conclude, settlement of crop insurance claims pertaining to the last kharif season is progressing at a tardy pace. Until December 31, the total claims honoured by insurers for kharif 2019 crop damages reported by farmers under PM Fasal Bima Yojana (PMFBY) were just Rs 153 crore, while the previous summer crop saw insurance payouts to the tune of Rs 14,500 crore.

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    09:59 (IST)27 Jan 2020
    Business leaders from Brazilian companies seek Indian partners and investors: IBCC President

    Coinciding with the visit of the Brazilian President Jair Bolsonaro to India as Republic Day chief guest, a group of businessmen from that country are on a week long visit under the umbrella of India-Brazil Chamber of Commerce (IBCC), led by the chamber’s President Leonardo Ananda, seeking Indian investors as well as partners in various sectors.

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    09:59 (IST)27 Jan 2020
    Uniform tax rate: Centre wants states to cap VAT on CNG at under 5%

    The Centre wants the states to limit the value-added tax (VAT) rates on compressed natural gas and liquefied natural gas (CNG/LNG) at under 5%. The Centre has also pitched for lowering of road taxes for vehicles running on CNG/LNG by states to make these on par with the rates charged on electric vehicles (EVs).

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    09:58 (IST)27 Jan 2020
    India Inc numbers disheartening, firms operating margins by resorting to cost-cutting

    The first lot of numbers from corporate India for the three months to December 2019 is disheartening because even a festive quarter didn’t help alleviate the stress. Companies are struggling to grow their toplines — revenues for a sample of 170 companies (excluding banks and financials) grew just 1.1% year-on-year.

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    09:57 (IST)27 Jan 2020
    Air India divestment: New bidders have to absorb this whopping debt to acquire national carrier

    Bidders for Air India Ltd. will need to absorb $3.26 billion of its debt, as Prime Minister Narendra Modi’s administration tries once again to sell the national carrier. The entire company will be sold but effective control needs to stay with Indian nationals, according to preliminary terms published Monday. Bids are invited by March 17 with Ernst & Young LLP India as transaction adviser.

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