Thursday, April 15

Month: March 2021

Discovery’s Class B shares spike 80% in unusual move

Discovery’s Class B shares spike 80% in unusual move

investment
David ZaslavAnjali Sundaram | CNBCDiscovery's lightly traded class B shares surged more than 82% on Wednesday, showing a spike in volume and divergence from the company's class A shares that is highly unusual.The class B stock, which often sees volume of less than 10,000 shares in a day, had already changed hands about 600,000 times as of noon ET, according to FactSet. Meanwhile, the class A shares were flat on a more modest rise in volume, and its non-voting class C shares fell 0.3%.Shares of Discovery have fallen sharply over the past week as Archegos Capital Management was forced to liquidate its position in the communications company and several other names. Those sell-offs hit both share classes of Discovery in a similar manner, however, unlike the moves on Wednesday.Discovery declin...
HDFC Ltd increases rates on fixed deposits maturing between 33 and 99 months by 10-25 basis

HDFC Ltd increases rates on fixed deposits maturing between 33 and 99 months by 10-25 basis

Finance
There is good news for investors finicky about locking their money into top-rated fixed deposits. HDFC Ltd, one of the best-rated finance companies in the country, has increased rates on fixed deposits maturing between 33 and 99 months by 10-25 basis points for the first time in 29 months. From March 30, fixed deposits of 33-month duration will fetch 6.2% annualised returns. For 66-month deposits, the rate would be 6.6% and 6.65% for 99-month deposits. Senior citizens would get 25 basis points more. Distributors said this is the first time after October 2018 that HDFC Ltd has raised deposit rates. “Bond yields too have moved up and overall interest rates are on an upward trajectory, which has led to some companies raising rates” says Anil Chopra, Group Director, Bajaj Capital. In February
Rising Covid cases could derail financial sector recovery

Rising Covid cases could derail financial sector recovery

Finance
Rising Covid infections could potentially lead to severe lockdowns impacting economic activity and hit bank collections making investors jittery. Eight states led by Maharashtra, which houses the financial capital of the country, Mumbai and also large states like Karnataka, Punjab, Madhya Pradesh and Gujarat are leading the new spike in cases latest data shows. The Maharashtra state government has already imposed a curfew after 8 pm and could impose a stricter lockdown later this week after seeing the largest single day spike in cases on Sunday. In a report on Tuesday ICICI Securities said investor confidence could be shaken if Covid cases continue to accelerate leading to a broad based disruption. "If prolonged for some more time with broadbased disruption risk, can shake investor sentim...
Ark Invest’s space exploration ETF ARKX begins trading

Ark Invest’s space exploration ETF ARKX begins trading

investment
Trading in the new space exploration ETF from Ark Invest began on Tuesday, as Cathie Wood's firm looks to tap the growing space industry."Space is already an invisible backbone to our economy and we think that's only going to become more so as [satellite] constellations launch," Ark Invest analyst Sam Korus told CNBC's Morgan Brennan on "Power Lunch."Shares of ARKX slipped about 1% in its first day of trading, with the stock closing at $20.30 a share.ARKX's 39 stocks includes pure-play space companies like Iridium and Virgin Galactic, as well as defense and aerospace giants such as Kratos, L3Harris, Lockheed Martin and Boeing.But the ETF also includes names not traditionally connected to the space industry, such Chinese e-commerce firms JD.com and Alibaba, or agriculture businesses like T...
Automatic recurring payment to comply with RBI direction from April 1

Automatic recurring payment to comply with RBI direction from April 1

Finance
Come April there will be no automatic recurring payment for various services including recharge and utility bill as RBI has made Additional Factor of Authentication (AFA) mandatory after March 31. However, banks and payment gateways are seeking additional time to comply with the RBI directive on automatic recurring payment. On December 4, RBI had directed all banks including RRBs, NBFCs, and payment gateways that the processing of recurring transactions (domestic or cross-border) using cards or Prepaid Payment Instruments (PPIs) or Unified Payments Interface (UPI) under arrangements/practices not compliant with AFA would not be continued beyond March 31, 2021. As part of risk mitigation measure, RBI announced this step to bolster safety and security of card transactions. Non-readiness of ...
Goldman, Morgan Stanley avoided losses after fund meltdown hit Nomura

Goldman, Morgan Stanley avoided losses after fund meltdown hit Nomura

investment
People are seen on Wall St. outside the New York Stock Exchange (NYSE) in New York City, March 19, 2021.Brendan McDermid | ReutersWhen investors are stampeding for the exits, it pays to be first out the door.That's what happened when falling shares in ViacomCBS last week ignited a $20 billion wave of forced selling at the Wall Street banks that cater to Archegos Capital Management, the family office founded by former Tiger Management analyst Bill Hwang.By the time Credit Suisse and Nomura, two prime brokers of Archegos, announced early Monday that they faced losses that could be "highly significant" to the banks, rival firms Goldman Sachs and Morgan Stanley had already finished unloading their positions, according to people with knowledge of the matter.Goldman managed to sell most of the
Banks to conduct special clearing operations for closure of government accounts on March 31

Banks to conduct special clearing operations for closure of government accounts on March 31

Finance
Banks will conduct special clearing operations for annual closure of government accounts on March 31, which is the last day of the current fiscal year, the RBI has said. The Reserve Bank has issued directions to the banks for smooth clearing operation and asked them to mandatorily participate in it. With regard to annual closing of accounts related transactions of the central and state governments, special measures are put in place for 2020-21, the RBI has instructed all the member banks to maintain sufficient balance in their clearing settlement account. Normal clearing timings as applicable to any working Wednesday shall be followed on March 31, 2021, the RBI said in a notification addressed to the member banks, urban and state cooperative banks, payments banks, small finance banks as...
ARK Invest’s ARKX space exploration ETF to begin trading on Tuesday

ARK Invest’s ARKX space exploration ETF to begin trading on Tuesday

investment
Virgin Galactic pilots walk to the company's SpaceShipTwo Unity spacecraft, attached to the jet carrier aircraft Eve.Virgin GalacticArk Invest, Cathie Wood's firm with multiple actively managed exchanged-traded funds, will debut its latest fund on Tuesday: a space exploration ETF.ARKX, the firm's eighth ETF, comes as an increasing number of private space companies prepare to go public later this year. In the past six months, seven space companies have announced SPAC deals.The ETF's top 10 holdings by weight:Trimble - 8.3%The 3D Printing ETF - 6.1%Kratos - 5.6%L3Harris - 5%JD.com - 4.8%Komatsu - 4.6%Lockheed Martin - 4.5%Iridium - 4.3%Thales SA - 4%Boeing - 3.6%Ark's new fund also includes Virgin Galactic (1.95% weight) among its 39 constituent holdings, as of Friday.Wood — chief investmen
Manappuram looks to take MFI arm Asirwad public

Manappuram looks to take MFI arm Asirwad public

Finance
Manappuram Finance, the second largest gold loan company in the country, is toying with the idea of hiving off and taking its microfinance arm Asirwad Microfinance public within a year, a top company official said. With a loan portfolio of over Rs 5,360 crore and close to 25 lakh customers across 23 states, the Chennai-headquartered Asirvad is the fourth largest microfinance lender in the country in terms of the loan book. Founded in 2008 by S V Raja Vaidyanathan, Asirvad was taken over by Manappuram in February 2015 for Rs 48.63 crore. The V P Nandakumar-led company first bought 71 per cent stake which was later increased to 95 per cent and the rest is with the founder Vaidyanathan. Under Manappuram, Asirvad has grown leaps and bounds. From a loan book of just Rs 300 crore and a few lakh...
Government not inclined to bear loan moratorium costs

Government not inclined to bear loan moratorium costs

Finance
The government is not inclined to bear the burden arising of the recent Supreme Court judgement on a blanket waiver of compound interest or interest on interest on all loan accounts which opted for moratorium during March-August 2020. "They (banks) are well-poised to handle this and we don't see any space for government relief," said a senior government official. The government has already compensated banks for the interest on interest they had lost on loans outstanding below Rs 2 crore. Analysts estimate the additional cost to reimburse banks for all loans at Rs 7,000-10,000 crore. "There is no directive from the court ordering the government to bear this cost," the government official said on the condition of anonymity. Since there is no deadline to refund the compound interest they ha...