Thursday, March 12
Donald Trump has threatened to impose substantial tariffs on India for continuing to purchase Russian oil, despite criticism from within his own party. Nikki Haley cautioned against harming relations with India while seemingly giving China a pass. India has defended its oil imports, citing diverted traditional supplies and pointing out that other nations also trade with Russia.
The Securities and Exchange Board of India plans to revise norms for related party transactions. New thresholds based on company turnover are proposed. These aim to ease compliance for larger firms. A simpler disclosure format is suggested for smaller transactions. The current exemption for transactions up to Rupees one crore will remain.
The Competition Commission of India (CCI) has approved Dalmia Bharat's proposal to acquire the debt-laden Jaiprakash Associates Ltd (JAL) through the insolvency process. This clearance allows Dalmia Cement to submit its resolution plan for JAL, which faces substantial creditor claims. Other major bidders, including Adani Enterprises, are also participating in the insolvency bidding.
Fitch Ratings reports a significant surge in the effective US tariff rate on Indian goods, escalating to 20.7% in 2025 from a mere 2.4% in 2024. This increase, coupled with potential penalties related to energy trade with Russia, has prompted economists to trim India's growth expectations.
Tata Capital, the Tata Group's financial arm, has filed updated papers with SEBI for a mega IPO estimated at $2 billion, valuing the company around $11 billion. The IPO includes a fresh issue of shares and an offer for sale by Tata Sons and IFC. Proceeds will boost Tata Capital's Tier-1 capital.
Stock market today: The NSE Nifty settled 73.20 points or 0.30 per cent lower at 24,649.55, having touched 24,590.30 during trading, down 132.45 points. The BSE Sensex dropped 308.47 points or 0.38 per cent to end at 80,710.25, after touching an intraday low of 80,554.40, down 464.32 points.
Morgan Stanley's analysis projects India's rise as a key global economic player, driven by increased credit-to-GDP ratio and manufacturing sector expansion. Sustained demographic growth, stable governance, and infrastructure improvements support this trajectory. India is poised to become a prime consumer market with significant energy reforms, potentially leading to lower real interest rates and higher equity market valuations.
