Asian stock indices are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 1.38%, while the Hang Seng is up 0.92%. The Shanghai Composite is trading up by 0.23%. The US equity benchmarks ended the last trading session of the week lower amid concerns about the economic impact of Hurricane Irma.
Back home, share markets in India have opened the day on a positive note tracking positive signals from Asian markets. The BSE Sensex is trading higher by 172 points while the NSE Nifty is trading higher by 47 points. The BSE Mid Cap and BSE Small Cap index opened the day up by 0.5% & 0.4% respectively.
All sectoral indices have opened the day in the green with stocks from capital goods sector and energy sector leading the pack of gainers. The rupee is trading at 64.87 to the US$.
Tata stocks opened the day on a mixed note with Tata Coffee & Tata Global Beverages witnessing maximum buying interest. As per an article in Business Standard, Tata Sons will pare the stakes that group companies have in Tata Chemicals and Tata Power, and the holding firm will buy shares in each case and consolidate its ownership.
Besides the unlisted Tata Teleservices, the equity value of the two companies’ listed investments is around Rs 55 billion. This sale of investments to parent Tata Sons will help both companies raise funds to repay their debt and finance capital expenditure.
Tata Sons had raised Rs 33 billion by private placement of debentures, which closed on 21 August.
Further, the market value of Tata Sons’ investments in listed companies was Rs 4538.9 billion as of March this year.
Apart from buying back the stake, Tata Sons will have to put funds into Tata Teleservices so that it can repay its debt and improve its financial metrics. This follows Tata Sons’ investment of Rs 20 billion into Tata Teleservices in the financial year 2016-17.
