2:40 pm Kotak, CPPIB tie-up:
Kotak Mahindra Group said on Monday it has signed an agreement with Canada Pension Plan Investment Board (CPPIB) to invest up to USD 525 million in stressed assets in the country’s banking and corporate sectors.
CPPIB and the Indian financial services conglomerate, along with its asset reconstruction arm, Phoenix ARC, plan to invest in asset sales by banks with the aim to restructure, recover and turnaround companies in distress.
“This investment is an important step in CPPIB’s strategy to build a diversified credit business and will add to our direct credit investment capabilities in India,” stated Adam Vigna, managing director, principal credit investments, CPPIB, in a statement.
2:20 pm HSBC on India: Notwithstanding recent volatility in Asian markets, some factors are supporting the region’s equities, global brokerage major HSBC has said noting that it is ‘cautious’ and ‘underweight’ on India.
The global financial services major which is “overweight” on China said factors like stronger Asian currencies and better prospects for earnings growth are supporting the Asian equities.
The global brokerage firm said though the recent Budget created some optimism in markets as the government stuck to its fiscal consolidation roadmap, but was apprehensive about the quality of fiscal consolidation.
“Fiscal consolidation has been applauded although we highlight this is meant to be achieved through telecom spectrum auctions and selling government stakes in companies,” HSBC said adding that “missing these targets could limit the government’s ability to spend unless it steers away from its fiscal consolidation targets”.
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2:00 pm Market Check
Equity benchmarks continued to trade higher with the Sensex rising 95.25 points to 24813.24 and the Nifty up 25.55 points to 7535.75.
ICICI Bank, Tata Motors, BHEL, Hindalco, ONGC, Cairn India and Tech Mahindra rallied 1-4 percent while Coal India tanked 6.75 percent after the stock adjusted for interim dividend. Sun Pharma, M&M, Bajaj Auto, TCS, Kotak Mahindra Bank and Idea Cellular were down 0.3-1 percent.
European equities were higher, following a positive lead set in Asia, as investors looked ahead to a raft of central bank meetings and rate decisions this week. Germany’s DAX jumped 2 percent followed by France’s CAC and Britain’s FTSE with 0.7 percent upside.
Asia markets ended higher, extending gains from last week following announcement of fresh stimulus measures from the European Central Bank (ECB). Japanese Nikkei 225 closed up 294.88 points, or 1.74 percent, at 17,233.75. Hong Kong’s Hang Seng index gained 235.74 points, or 1.17 percent, to 20,435.34 and Shanghai rose 1.76 percent.