Suzuki Motor Chairman Osamu Suzuki & Maruti Suzuki Chairman R C Bhargava
Maruti Suzuki, the country's largest car maker, on Tuesday took the market and shareholders by surprise when it announced its proposed passenger car facility in Gujarat would not be operated by it but its parent, Japan's Suzuki Motor Corporation (SMC).
A new firm, Suzuki Motor Gujarat Pvt Ltd, to be registered by April, will exclusively contract-manufacture and sell vehicles to Maruti Suzuki India Ltd (MSIL), which will only market those vehicles in India and abroad.
Many analysts, including research & analysis firm InGovern, raised questions on "corporate governance&" issues and said minority shareholders should challenge the deal, as their interests would be adversely affected.
The equity market panned the proposed move, pulling down the Maruti Suzuki stock. On BSE, the scrip tumbled 8.12 per cent, the most since November last year. This was despite the company repor...
Bond markets to trade in a tight band this week: Jajoo
Sentiment in the bond market stabilised with the onset of the new year as benchmark 10-year yields eased 12 basis points last week to 8.84% on strong buying from mutual funds, foreign banks, insurance companies and pension funds.
The 10-year government bond yield in the previous week had spiked to near yearly high of 8.96% on apprehensions of announcement of a bond switch and the revised monetary policy framework documents, neither of which actually got announced.
Liquidity also improved after the seasonal quarter-end tight money environment eased with fresh flows in pension funds on interest payments. However, much of the move happened in pre-emptive buying in the first two days of the week till December 31 by which time the 10-year bond had already hit the weekly best of 8.80%.
Thereafter, the market broadly traded in a narrow range of 8.82-8.84% after the initial demand got filled. With large auction supplies in ...
MUMBAI: Government bonds rose to their highest in more than 2-1/2 months on Wednesday as a sharp easing of headline inflation cemented bets the central bank will keep interest rates on hold at its policy review later this month.
Data on Wednesday showed headline inflation eased to a five-month low of 6.16 per cent in December, helped by a softening in vegetable prices.
The drop in wholesale inflation came on the back of a fall in retail inflation to a three-month low, reinforcing expectations that the Reserve Bank of India will hold interest rates for a second consecutive month on Jan. 28.
Foreign funds have turned large buyers of Indian debt, purchasing nearly $2 billion in the four sessions to Monday. Of this, they bought $860 million on Monday, data from the Securities and Exchange Board of India showed.
After raising interest rates by 50 basis points over September and October, RBI Governor Raghuram Rajan held rates steady last month, saying inflation data would largely...
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