9:55 am Downgrade:
Moody’s revised downwards the ratings outlook of DIAL, which operates the international airport here, to negative citing that implementation of the new tariff order would lead to lower revenues. The outlook has been revised from stable while affirming DIAL’s (Delhi International Airport Ltd) Ba1 corporate family rating and senior secured ratings. The new tariff order from the Airports Economic Regulatory Authority (AERA), that would be applicable on DIAL over the 2016-2019 period, would lead to a decrease in annual aeronautical revenue by Rs 20 billion (Rs 2,000 crore) or around 70 percent from 2017 fiscal year, Moody’s Investors Service’s Abhishek Tyagi said.
9:45 am Buzzing: Shares of Bajaj Auto fell 2 percent intraday on concerns that its export may get hurt. The new Argentina government devalued its currency in order to revive sluggish growth. Argentina’s peso plunged more than 26.5 percent yesterday.
Latin America contributes 20 percent of Bajaj Auto’s exports with Argentina being one of the key growth markets. Exports overall account for 50 percent of its revenue and enjoy 20 percent EBITDA margin.
Analysts point out that the recent global currency movement has been negative for the two-wheeler manufacturer. Its key export markets, namely Nigeria, Colombia, Peru, Egypt, Indonesia have seen a sharper currency depreciation versus dollar.
9:30 am Interview: HDFC ERGO General Insurance, a subsidiary of Housing Development Finance Corporation Ltd (HDFC), announced that Germany’s ERGO International will buy 22.9 percent additional stake in the company. HDFC ERGO offers general insurance products ranging from motor, health, travel, home, personal accident. It also offers customised services like property, marine and liability insurance in retail space. In an exclusive interview to CNBC-TV18, Keki Mistry, vice chairman and chief executive officer, HDFC, says the company shareholders will take a call on if the insurance arm needs to raise money. However, Mistry rules out any plans to list the general insurance company.
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The market has opened lower on Friday after surging yesterday. The Sensex is down 59.71 points at 25744.07 and the Nifty is down 15.45 points at 7828.90. About 326 shares have advanced, 223 shares declined, and 40 shares are unchanged.
Bajaj Auto, Vedanta, TCS, M&M and Dr Reddy’s Labs are major losers while HDFC, NTPC, Maruti and Hindalco are top gainers in the Sensex.
The Indian rupee reversed its some gains seen in previous session. The currency has opened at 66.48 per dollar on Friday, down 6 paise compared to 66.42 a dollar in previous session. It ended at over 3-week closing high yesterday.
Pramit Brahmbhatt, Veracity says after the smart recovery post Federal Reserve rate hike, the rupee is now trading in a new range.
According to him, the USD-INR pair has strong support around Rs 66.20/USD. He feels the rupee today is expected to trade with a positive bias and the range for the day is seen between Rs 66.20-66.50/USD.
Asian shares took their cue from Wall Street and slipped, but were still on track for gains in a week marked by a depreciating yuan in China and the first US interest rate hike in nearly a decade.
By contrast, Taiwan’s central bank cut interest rates for the second time this year and said it would keep monetary policy loose to shore up growth in the island’s trade-dependent economy as the global demand outlook worsened.
China’s yuan has weakened against the dollar for 10 straight sessions through Thursday, the longest weakening streak on record, after the central bank guided the Chinese currency lower.