Top 10 business news today: Education loan default, ebay India launch, UBS sees 75 bps RBI rate cut, more
Education loan default can impact CIBIL credit score. eBay India launched online mall for watches. “With over 65,000 stock keeping units and with access to 26 exclusive international brands such as Montine, Swiss Legend, Weiqin, Royal London, Ben Sherman amongst others, eBay is bringing to its consumers more than 200 global and local brands of watches,” said Navin Mistry, Head Retail Exports and Lifestyle Category, eBay India. The Reserve Bank of India (RBI) is likely to further cut the key lending rate by 75 basis points in the current fiscal despite its hawkish stance, although it may hold the pause button in the next monetary policy review, a UBS report said. Unitech said it has repaid all debts pertaining to telecom business and will bring down its overall debt of over Rs 6,300 crore gradually with the help of positive cash flow. Finance Minister Arun Jaitley sought to allay fears over predictions of deficient monsoon saying conclusions on that basis either on inflation or some kind of distress situation are “far-fetched”. He also said in the last 48 hours, ever since the IMD predicted deficient monsoon this year, the conclusions were being drawn up in an exaggerated manner and it was necessary to place the finance ministry’s view on the subject.
Education loans are turning out to be a headache for banks which are already under pressure due to rising bad loans. (Thinkstock)
<b>eBay India launches 'online watch mall'</b></br> In a bid to strengthen its presence in the lifestyle segment, eBay India launched online mall for watches. "With over 65,000 stock keeping units and with access to 26 exclusive international brands such as Montine, Swiss Legend, Weiqin, Royal London, Ben Sherman amongst others, eBay is bringing to its consumers more than 200 global and local brands of watches," said Navin Mistry, Head Retail Exports and Lifestyle Category, eBay India. (Thinkstock) (04/06/2015)
<b>Expect 75 bps more cut by RBI over FY16, says UBS</b></br> The Reserve Bank of India (RBI) is likely to further cut the key lending rate by 75 basis points in the current fiscal despite its hawkish stance, although it may hold the pause button in the next monetary policy review, a UBS report said. The global financial services major said RBI has to bring down inflation expectations and it is still too early in the rate easing cycle for it to turn dovish. In the policy review meet on June 2, RBI cut interest rate by 0.25 per cent for the third time this year (first in the financial to spur investment and growth but hinted there may not be any more cuts in the near-term. It cut the repo rate (short-term lending rate) from 7.5 per cent to 7.25, but left all other policy tool s like cash reserve requirement unchanged at 4 per cent and Statutory Liquidity Ratio (SLR) at 21.5 per cent. (Reuters) (04/06/2015)
A total penalty of Rs 2,513.44 crore has been imposed on telecom operators for violating customer verification norms as on September 30 this year, Parliament was informed today.
"Britain has been cooperating and also extremely keen that large British companies, particularly involved in infrastructure financing, start investing in Indian infrastructure," Arun Jaitley said. (PTI)
<b>Indian rupee hits new 20-month low vs USD; ends 10 paise down</b></br> Extending its losses for the third straight day, the Indian rupee hit a fresh 20-month low of 64.26 intra-day against the American currency but a fag-end recovery saw it regaining some lost ground before ending at 64 per dollar, showing a loss of 10 paise. The domestic currency continued to witness a downward trend on the back of sustained capital outflows by foreign funds and consistent dollar demand from importers and banks. The rupee resumed sharply lower at 64.10 per dollar at the Interbank Foreign Exchange against overnight closing level of 63.90 and drifted further to hit a new 20-month low of 64.26 per dollar. (04/06/2015)
<b>Sensex down 24 pts; value-buying in banks, realty caps losses</b></br> Falling for the third straight day, the benchmark BSE Sensex settled marginally lower by 24 points as auto and metal stocks tanked on RBI's cautious stance on economic recovery, while value-buying in blue-chips restricts losses to some extent. Of 30 Sensex shares, 19 ended lower, while 11 others, led by RIL, Wipro, HDFC and HDFC Bank ended higher to cap index's losses. BSE Sensex opened higher at 26,940.64 and touched a high of 26,948.84 on buying in badly beaten down blue-chip stocks of the past two sessions, but on profit-booking it surrendered most of early gains to touch a low of 26,551.97. A round of late buying in select blue-chip stocks, however, helped Sensex to recover to close at 26,813.42 points, down by 23.78 points or 0.09 per cent over its. (04/06/2015)
<b>Maggi noodles banned in 3 more states – Uttarakhand, Gujarat and J and K</b></br> After Delhi, three more states– Gujarat, Jammu and Kashmir and Uttarakhand–today banned the sale of Maggi noodles, as the popular instant snack came under mounting scrutiny over food safety concerns. The Uttarakhand government banned the sale of Nestle's instant noodles for three months while in Gujarat the ban will be effective for one month after some samples of the food had failed lab tests, officials said in Dehradun and Gandhinagar. In Jammu and Kashmir, the state government banned the sale for one month till the receipt of reports over the fitness of the fast food for human consumption. The three states also ordered the noodle manufacturers Nestle India to immediately withdraw the stocks. (04/06/2015)
Noida Toll Bridge Co Ltd shares fall haevily by 13.3 percent. (Reuters)
<b>Gold, silver prices turn weak on global cues, sluggish demand </b></br> Gold prices drifted by Rs 140 to Rs 27,200 per ten grams at the bullion market largely in tandem with a weak trend in global market and slackened demand from jewellers and retailers. Silver also dropped by Rs 300 to Rs 38,400 per kg on poor offtake by industrial units and coin makers. Bullion traders said sentiment turned bearish after gold traded at a near three-week low in global markets before the release of monthly data on the US employment. Globally, gold was 0.1 per cent lower at USD 1,183.66 an ounce and silver lost 0.2 per cent to USD 16.49 an ounce in Singapore. Subdued demand from jewellers and retailers also dampened the sentiment, they said. In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 140 each to Rs 27,200 and Rs 27,050 per ten gram, respectively. (04/06/2015)