Business News

Mumbai: Tata Capital, the flagship financial services company of the ₹31-lakh crore Tata Group, has raised $200 million through a three-year loan from Singapore's DBS Bank and Taiwan's CTBC Bank.The company has the flexibility to price the loan 120 basis points above the one-month, three-month or six-month Secured Overnight Financing Rate (SOFR), in line with the market movement. The loan is part of the company's regular borrowing programme. One basis point is 0.01 percentage point.CEO Rajiv Sabharwal confirmed the company had raised the funds as part of its $750-million external commercial borrowing (ECB) programme, in line with the Reserve Bank of India (RBI) guidelines."This is part of our routine fund-raising plans. Borrowing overseas funds helps us diversify our funding requirements. The landed cost of funds is almost or on par with our domestic cost of funds," Sabharwal said.At 120 basis points above the three-month SOFR rate, now around 5.35%, Tata Capital would pay around 6.55% for these dollar funds initially, though post hedging and tax obligations, the final rate in rupees could be higher.ET could not ascertain the current cost of funds for the company's domestic rupee resources for a similar tenure.The company made a ₹1,023-crore net profit in the quarter ended December 2023, up 78% from the same period a year ago, largely due to higher interest income even though financing expenses also increased. The company's loan book stood at ₹1.49 lakh crore at the end of December, with about 90% of the loans to retail and SME customers.Domestic bank loans and non-convertible debentures make up 86% of Tata Capital's funding profile with ECBs at 6%, similar to the company's liability mix a year ago, a presentation on its website showed.

Technical analysts continue to maintain a cautious outlook on Nifty for the truncated trading week ahead. According to analysts, profit-taking may resume until the index decisively reclaims 22,200. Some of the stocks recommended by analysts for short-term trades include Apollo Hospitals, Eicher Motors, Hero Motocorp, Maruti, Bajaj Auto, Sun Pharma, Tata Motors, ABB, Cummins India, L&T, Dixon, Oberoi Realty, Siemens, and SBI.AJIT MISHRA ANALYST, RELIGARE BROKINGWhere is Nifty headed?The recent rebound in Nifty can largely be attributed to the favourable global cues, especially the US market; however, the index is still facing a hurdle around the short-term moving average, i.e. 20-DEMA. We reiterate our cautious view on Nifty until it decisively reclaims the 22,200 zones; otherwise, profit-taking may resume. On the downside, 21,500-21,800 would continue to offer a cushion.What should investors do?Since we are seeing mixed trends across sectors, participants should focus on stock selection and risk management. We reiterate our preference for index majors and large midcaps, and suggest utilising any rebound in smallcaps to reduce positions. Some stocks for short-term trades include: Apollo Hospitals, showing a rebound after a fresh base. Eicher Motors, experiencing a fresh breakout from a consolidation range. Hero Motocorp, resuming its up-trend after a slight pause. Hindalco, gradually recovering after retesting the lower band of a rising channel. ICICI Prudential Life, retesting the support zone of a reversal pattern. Pidilite Industries, witnessing breakout from a consolidation range after one-and-ahalf years.PRITESH MEHTAANALYST, YES SECURITIESWhere is Nifty headed?Nifty managed to close the week in positive territory, defending its three-digit Gann number of 218(00); yet on the higher side, it failed to surpass 22,200. The choppy behaviour is expected to prevail. Recently, Bank Nifty went through a series of declines (nine consecutive negative closes); however, in the past couple of sessions, it managed to sustain 46,500. We expect the index to show strength and rally towards the 47,500 zone.What should investors do?Nifty IT recorded a sizeable correction, down 6% last week. A sudden change in sentiment is likely to limit the upside in the near term, whereas select mid-cap IT stocks are likely to extend the correction. Our customised Midcap IT index is showing a topping-out pattern, reversing off the 2021 peak. LTI Mindtree and Birla Soft are expected to underperform and correct 8-10%. During the week, the FMCG index rebounded off the lower levels; positive follow-through action is required for a sustained rally. Meanwhile, Nifty mid-cap and small-cap 100 indices snapped a multi-week losing streak, these indices are likely to consolidate to digest the recent decline.CHANDAN TAPARIA ANALYST, MOTILAL OSWAL FINANCIAL SERVICESWhere is Nifty headed this week?Nifty managed to hold support near 21,710 and witnessed a decent recovery towards 22,180 zones last week. It has given a consolidation breakout in the last six trading sessions and managed to form a higher base with support near its 50-DEMA. It formed a bullish candle on weekly scale with a longer lower shadow which indicates that declines are being bought. Now, till it holds above 21,880 zones, the index may bounce towards 22,350 and a lifetime high of 22,526 levels. Bank Nifty negated its losing streak of the last nine trading sessions and managed to recover well from the 45,828 to 47,000 zone. It completed its 50% retracement of the entire decline from 48,161 to 45,828 zones. It formed a hammer candle on the weekly scale after profit booking declines of last week, which indicates a fresh bullish stance for the next leg of the rally. Now, the index has to hold above 46,500 zones to extend the move towards 47,250, then 47,500 zones. On the downside, support is seen at 46,250 and 46,000 zones.What should investors do?India VIX corrected from 16.74 to 11.81 in the last 18 sessions and was down 10% last week. Volatility has been declining for the last couple of weeks, which is giving a buy-on-decline signal. Bullish setups are seen in auto, IT, CPSE, power and energy sectors. Positive setups are seen in Maruti, Bajaj Auto, Sun Pharma, Apollo Hospitals, Tata Motors, HAL, ABB, Cummins India, L&T, Dixon, Oberoi Realty, Siemens and SBI.

Novo Nordisk A/S agreed to buy Cardior Pharmaceuticals for up to $1 billion ($1.1 billion) as the Danish maker of weight-loss drugs continues to expand into treatments for cardiovascular disease.The maker of hit obesity drug Wegovy said Monday it will make an upfront payment for Cardior with additional payouts dependent on reaching certain milestones.Cardior is developing therapies that target microRNA, a type of molecule that helps regulate how much of certain proteins are made inside a cell. The biotech's leading potential treatment is designed to block abnormal levels of a particular microRNA, with the aim to improve the function of the heart in the long term. The compound is currently in the second of three stages of patient trials.Soaring demand worldwide for Novo's blockbusters Ozempic and Wegovy has turned the company into Europe's most valuable business. The group is plowing part of its proceeds from the weight-loss frenzy into its portfolio of experimental drugs.Its recent deals have been tilted toward cardiovascular disease, the most common cause of death globally: the cardior deal is the seventh time recently that Novo has said one of its acquisitions will explicitly target that area.Wegovy recently gained expanded US approval to include reducing the risk for heart attacks and strokes, a move that could further widen use and insurer coverage of the popular anti-obesity medication. Cardiovascular disease aligns well with Novo's history in diabetes and obesity, corporate development chief Dave Moore told investors earlier this month at the company's capital markets day.

Ericsson on Monday said it would lay off about 1,200 employees in Sweden as part of cost-cutting measures announced earlier this year as customers reduce their spending on 5G gear.After cutting thousands of staff last year, telecoms equipment suppliers like Ericsson and Finland's Nokia are expecting 2024 to remain challenging as 5G equipment sales slow in North America and are also expected to ease from record levels in India.Ericsson told Reuters in January it could look at further cost cuts this year including layoffs but had not given specific figures.Citing ongoing negotiations with unions, the company on Monday declined to give a figure for how much cash it could save by cutting staff."As previously stated, Ericsson expects a challenging mobile networks market in 2024, with further volume contraction as customers remain cautious," it said in a statement.The company said it would continue with initiatives to increase operational efficiency during 2024, adding it would not make any separate statements on those."It's not the first (wave of lay-offs). It won't be the last," said analyst Paolo Pescatore at PP Foresight, adding there could be further layoffs later in the year and potentially into 2025 due to the challenges in the mobile infrastructure market."Let's be honest, 5G has not been the runaway success that everyone had hoped for; very much a slow-burner," he added.Ericsson said cost saving initiatives included reducing the number of consultants, streamlining its processes and reducing facilities.The company had almost 100,000 employees at the end of last year, according to its annual report.Shares in Ericsson were down 0.75% at 1320 GMT.