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Business News/ Market / Stock-market-news/  Opening Bell 22 August | NBFCs in focus as RBI curbs loans against shares
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Opening Bell 22 August | NBFCs in focus as RBI curbs loans against shares

Asian markets are trading higher on positive economic data from the US

A file photo of the BSE building in Mumbai. Photo: Hemant Mishra/MintPremium
A file photo of the BSE building in Mumbai. Photo: Hemant Mishra/Mint

Mumbai: Asian markets are trading higher on positive economic data from the US.

Existing home sales rose last month and fewer Americans than forecast applied for unemployment benefits last week. The data along with optimism that the Federal Reserve is committed to supporting the economy sent the US stocks to record highs.

The S&P 500 gained 0.3% to 1,992. Read more.

Keep an eye on shares of non-banking financial companies (NBFCs) and firms with lending businesses. The Reserve Bank of India imposed restrictions on the amount that NBFCs can lend against shares pledged as collateral. NBFCs with assets in excess of 100 crore will be required to maintain a loan-to-value ratio of 50%. Read more.

The amount of bad loans in India’s banking system may be understated and could exceed published estimates if banks’ exposure to completed power projects that are yet to start production is taken into account, reports Mint.

The board of National Highways Authority of India has approved the formation of an entity similar to an asset reconstruction company to take over bank loans extended to road projects that are likely to turn bad. The objective is to keep bank balance sheets healthy and at the same time revive road projects.

Larsen and Toubro Ltdreceived contracts worth 1,832 crore since July. Of them 1,008 crore worth of orders are bagged by its buildings and factories division.

Tata Motors Ltd’s board has approved a proposal to develop two sports utility vehicles with assistance from Jaguar and Land Rover, reports Mint. The two vehicles are expected to be introduced in 2017 and will be positioned as premium cars.

Also keep an eye on Ranbaxy Laboratories Ltd. According to Business Standard, the company may have to pay a 242 crore fine to the US authorities due to violations found at its manufacturing plant in Toansa, Punjab.

Cairn India Ltd has received approval from the environment ministry to raise crude oil output of its fields in Barmer in Rajasthan to 300,000 barrels per day (bpd), reports Mint. So far, the company was producing just above 200,000 bpd.

Tilaknagar Industries Ltd may see some action. In a new twist, Allied Blenders and Distillers Pvt Ltd bought 50% ownership rights for Mansion House brandy from a Dutch company. Currently, Mansion House is manufactured and distributed by Tilaknagar Industries in India. Read more.

SpiceJet Ltd expanded its authorized share capital enabling the money-losing airline to raise more funds, reports Mint. The airline said it will increase its authorized share capital to 1,500 crore from 1,000 crore.

An UK based firm offered 850 crore for Hotel Leelaventure Ltd’s Chennai hotel, reports The Times of India. According to the report, the bid value is lower than promoter’s expectation.

Lastly, Cyient Ltd (formerly Infotech Enterprises) is acquiring 51% stake in an US-based data analytics start-up, reports The Hindu Business Line. According to the report, value of the deal is estimated to be less than $5 million.

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Published: 22 Aug 2014, 08:03 AM IST
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