The News International Team
10:50am Auto companies under pressure
Competition Commission of India slapped a penalty of Rs 2,545 crore on 14 car makers, including Maruti Suzuki and Tata Motors, for violating trade norms in the spare parts and after services market.
Honda Siel Cars India, Volkswagen India, Fiat India Automobiles, BMW India, Ford India, General Motors India, Hindustan Motors, Mahindra and Mahindra, Mercedes-Benz India, Nissan Motor India, Skoda Auto India and Toyota Kirloskar Motor have also been penalised.
For each entity, the individual fine amounts to 2 percent of their average turnover. The penalty is to be deposited within 60 days of receipt of the order.
India’s largest auto companies Tata Motors, Maruti Suzuki, and Mahindra and Mahindra faced the maximum fine of Rs 1,346 crore, Rs 471 crore and Rs 292 crore, respectively. The more interesting factor in case Tata Motors is that the CCI calculated penalty on clubbing Jaguar Land Rover revenue with Tata Motors.
10:25am Muthoot Finance in News
Shares of Muthoot Finance rallied nearly 2 percent on acquisition of 30 percent equity stake in Sri Lanka-based company.
Gold loan financing company on Monday acquired 16,77,85,600 existing equity shares (representing 29.98 percent stake) of Asia Asset Finance PlC from Asia Capital PLC, a major shareholder, through Colombo Stock Exchange at a total value of LKR 268 million (approximately USD 2.1 million), said the company in its filing.
AAF, which is listed in DiriSaviBoard of Colombo Stock Exchange, is in lending business and offers retail finance, hire purchase and business loans. It has 11 branches across Sri Lanka.
“Muthoot is seeking synergies by helping the AAF to operationalise loan against gold ornaments in Sri Lanka drawing on the expertise of Muthoot Finance in this field,” said the company.
10:00am Equity benchmarks continued to consolidate in morning trade with the Sensex rising 8.11 points to 26445.13 and the Nifty falling 3.65 points to 7902.65.
About 1020 shares have advanced, 1077 shares declined, and 87 shares are unchanged.
Defensives like FMCG and healthcare remained on buyers’ radar with ITC, Sun Pharma, Dr Reddy’s Labs, Hindustan Unilever and Cipla rising 1-2 percent. Housing finance company HDFC, top telecom operator Bharti Airtel and software services exporter TCS gained 0.8-1 percent.
Steel producer Tata Steel rebounded today after 4.8 percent fall in previous session, up 1.6 percent as Morgan Staley believes Tata Steel, SAIL, Coal India and NMDC are less exposed to regulatory risks after Supreme Court order on coal block allocation while JSPL and Hindalco are mostly impacted.
However, Jindal Steel tanked 6.4 percent and Tata Power lost over 3 percent. ONGC, L&T, Reliance Industries, SBI, BHEL and NTPC declined 0.7-1.8 percent.
Tata Motors, Mahindra and Mahindra, and Tata Motors slipped 0.6-1 percent after Competition Commission of India imposed penalty of Rs 2544.64 crore on 14 auto companies.