A quick look at some of the key developments that made headlines during the week.
It is an uneasy truce at Infosys as fresh revelations by a whistleblower about the 2015 acquisition of Panaya raises questions if the deal was above board. Vishal Sikka wrote to employees defending the deal and saying there was a deliberate attempt to tarnish the company’s reputation.
The company’s board approved a Rs 16,000 crore share buyback . The stock price firmed up, but longer term questions about the business environment in general remain.
The stock climbed to a near 8-year high after the company said it would start charging Jio subscribers a nominal fee for data from April 1. But no cheer for its rivals in the telecom space as Reliance has vowed to offer 20 percent more data than the best offer in the market.
Speculation that the bank will be merged with another private bank refuses to die down even as the management has denied the talk. The stock, meanwhile, has been steadily inching up.
The company said it was acquiring loss making-Telenor , in what analysts see as an attempt to build heft and retain market share ahead of a likely Vodafone-Idea entity.
The e-tailer will be laying off 500-600 people across the group, which include divisions Vulcan Express (logistics) and FreeCharge (payments). The company said the move was part of its efforts to turn profitable , even as its founders admitted to “errors in execution” and pledged not to take a salary.
The RBI has told custodians of foreign institutional investors (FII) that trades done in the HDFC Bank stock before 1:39 pm last Friday (before the RBI circular banning further purchases by FIIs was flashed by stock exchanges) will be settled. But trades done after 1:39 pm would not be settled. Brokers took on their own proprietary books a ‘small’ quantity of shares , which exceeded the FII limit in the stock.
The electrical goods company will acquire the consumer durable business of Lloyd Electric & Engineering for about Rs 1,600 crore. The stock came under pressure following the announcement as the purchase will add to earnings only from FY19.
Uber and Ola:
Striking Uber and Ola drivers in the National Capital Region returned to work even as it is not clea r if their key demands have been met. Relief for commuters but doubtful if it is a victory for the drivers. Oversupply of cabs mean that the drivers no longer have bargaining power. During the 13-day long strike, many Uber and Ola drivers broke ranks and chose to ply their trade.
The party has nearly trebled its seats in the Mumbai municipal elections , from 31 seats in 2012 to 82 in 2017, but the Shiv Sena emerged as the single largest party with 84 seats. Given the blow-hot-blow-cold relationship between the Shiv Sena and the BJP, it remains to be seen if they will form an alliance to run the BMC.