Chennai Petroleum to form a joint venture co. along with Indian Oil Corporation and other investors

Opening Bell:

SGX Nifty was trading in the negative zone on Wednesday. The index was down by nearly 69 points or 0.39% (8:05 am India time) indicating a negative opening for Indian markets.

Asian indices like Japanese Nikkei are down 0.15 percent, South Korea Kospi is up 0.22 percent, Hong Kong Hang Seng is down 0.11 percent where as China’s Shanghai is down by 0.14 percent. Asian indices were trading largely lower on Tuesday as well, echoing a broad sell-off on Wall Street amid speculation about another interest rate raise from the U.S. Federal Reserve.

Wall Street indices closed nearly flat on Tuesday, Down Jones indices was down 0.47 percent, Nasdaq ended lower by 0.068 percent.

Cautious tone was seen in European market yesterday following the release of key economic data, concerns around soaring gas prices and slowing growth are impacting investor sentiments. purchasing managers indices for Germany and France fell to 47.6 and 49.8, respectively, both below the 50 level that typically separates growth from contraction.

Stocks News:

?Adani Enterprises subsidiary Vishvapradhan Commercial (VCPL) has exercised certain warrants for acquiring 99.5 percent shareholding in RRPR Holding (RRPR), a promoter company of New Delhi Television Limited (NDTV). The acquisition will result in VCPL acquiring control of RRPR. RRPR holds 29.18 percent stake in NDTV. VCPL, along with AMG Media Networks (AMNL) and Adani Enterprises will launch an open offer to acquire up to 26 percent stake in NDTV.

?CRISIL has downgraded the credit rating of Himatsinka Seida’s long term debt to BBB+, from A- with negative outlook, and short term debt rating has been downgraded to A2 from A2+.

?Chennai Petroleum has decided to form a joint venture company along with Indian Oil Corporation and other seed equity investors (Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance Company for implementing the 9 MMTPA refinery project at Cauvery basin refinery, at estimated cost of Rs 31,580 crore.

?Rating agency ICRA has upgraded the long term bank facilities ratings & reaffirmed short term bank facilities/ debt instruments ratings of the company. ICRA said the upgrade in ratings for the debt programme of KEI Industries considered the strong domestic demand growth prospects of wires and cables in various end-user segments benefitting from both government infrastructure development activities as well as private capex.

?Dunearn Investments (Mauritius) Pte Ltd sold 2,63,29,516 equity shares or 2.18 percent stake of Devyani International via open market transactions.

?Foreign institutional investors (FIIs) have net bought shares worth Rs 563 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 215.20 crore on August 23, as per provisional data available on the NSE.

Domestic and International Events

• Capital markets regulator SEBI has amended rules governing portfolio managers, under which they will not be allowed to invest clients’ funds in unrated securities of their related parties or associates. The move is aimed at enhancing prudential norms for investments by portfolio managers, including investments in associates and related parties.
• Goldman Sachs said on Tuesday it expects Federal Reserve Chair Jerome Powell to reiterate the case for slowing the pace of tightening, when he speaks at the annual Jackson Hole symposium on Friday. In a research note, Goldman economists said the message will be the same as laid out in his July news conference and in the minutes of the July Federal Open Market Committee meeting released last week.
• German bond yields rose on Tuesday to new multi-week highs after data showed euro zone business activity slowed less than expected in August.
• Oil prices surged by nearly 4 percent on Tuesday after Saudi Arabia floated the idea of OPEC+ output cuts to support prices in the case of returning Iranian crude and with the prospect of a drop in US inventories.

Key Equity Indices?