Top cues: Asian shares mixed, RBI issues Basel III rules
New rules are expected to moderate the return on equity of public and private sector banks. Return on equity is the profit made by banks with respect to the equity.
Asian markets witnessed a mixed trend on Thursday as a weak US and European Union jobs data spooked markets. Many Asian economies rely on exports to high consumption markets like US and Europe for growth. US employers added 119,000 jobs in April 2012 against an estimated 177,000. In Spain, unemployment surged to 24 per cent. The MSCI Asia Pacific index traded flat while markets in Japan are closed for a public holiday. Shares in Australia opened to a fresh nine-month high commodity stocks hogged the limelight. Key US indices dipped marginally overnight on Wednesday.
RBI issues Basel III guidelines
The Reserve Bank of India issued new capital adequacy norms to be effective from January 1, 2013. According to these guidelines, banks will have to maintain their total capital adequacy ratio at 9 per cent, higher than the minimum recommended requirement of 8 per cent under the Basel III norms. According to brokerage estimates, state-run banks will need up to Rs 2 trillion to meet the new norms.
Tata Motors ends distribution relationship with Fiat
Italian car maker Fiat is to set up its own car dealer network in India to grow sluggish sales, ending a six-year distribution agreement with Tata Motors. Fiat said on Wednesday that the move should help build its business in India, a booming market where foreign producers Ford, Honda and Nissan have recently acted to take more control of their own operations.
India lifts restrictions on sugar exports
India has lifted for now volume limits on sugar exports, a government source said on Wednesday, adding pressure to global prices, but the world's second-biggest producer could reinstate restrictions at a later date. India has lifted for now volume limits on sugar exports, a government source said on Wednesday, adding pressure to global prices, but the world's second-biggest producer could reinstate restrictions at a later date.
LIC buys 2.15 crore shares of Pipavav Defence
Life Insurance Corporation of India on Wednesday increased its stake in Pipavav Defence and Offshore Engineering to 5.63 per cent with fresh acquisition of shares worth over Rs 171 crore through an open market transaction. According to the bulk deal data of stock exchanges, the country's largest life insurer bought 2.15 crore shares of Pipavav at Rs 79.50 apiece, valuing the the deal at Rs 171.21 crore.
Telecom minister assures telco chiefs
Telecom Minister Kapil Sibal on Wednesday said he would look into the concerns of the telecom industry over the proposed auction of spectrum. The execuives -- Vittorio Colao of Vodafone, Sunil Bharti Mittal of Bharti Airtel, Frederik Baaksas of Telenor and Kumar Mangalam Birla of Idea Cellular -- on Wednesday met with various Indian ministers and officials to express their concerns over the Telecom Regulatory Authority of India's (TRAI) recommendations on spectrum auction.