News digest: Q3 earnings, hybrid technology, Singapore Exchange, and more

Bank haircuts on NPAs go up to 80%; 9 of 12 firms enter bidding stage

As nine of the 12 companies on the Reserve Bank of India’s (RBI’s) first list of non-performing assets (NPAs) enter the bidding stage, the average haircut on bad loans, or loss to banks based on the offers made by suitors in five cases, ranges between 50 per cent and 80 per cent. Read More1

Earnings improve, but not yet in high gear; combined net profit up 10.6%

A year after demonetisation-induced economic disruption, corporate earnings are yet to move into high gear as expected by the Street. Companies focused on the domestic market, especially consumer goods players, have recovered some of their mojo in the third quarter ended December 2017 (Q3FY18), but their numbers, too, fail to sizzle despite a favourable or low base-effect. Worse, on the cost side, higher energy and commodity prices have begun to bite domestic manufacturers, with companies reporting an increase in per unit cost of raw materials and energy. Read More

Singapore Exchange may go for GIFT connect for strong India play

The Singapore Exchange (SGX) is looking to connect through Gujarat International Finance Tech (GIFT) City — an International Financial Service Centre (IFSC) in Gujarat — to continue with its strong India play. Read More 

MNCs, homegrown carmakers spar on hybrid car technology

It is becoming a story of homegrown versus global players in hybrid car technology. Players like Tata Motors and Mahindra & Mahindra (M&M) have decided to junk hybrid technology in the development of their cars, while multinationals like Maruti Suzuki, Toyota, and Honda are bullish on prospects of hybrid as far as the Indian market is concerned. Those in favour of hybrid are also pushing for relaxation of tax rates. Read More

It's advantage Ulips after tax arbitrage; higher cost a serious deterrent

From April 1, a seller of unit-linked insurance plans (Ulips) will be able to make a stronger pitch to the potential customer – no long-term capital gains (LTCG) tax on investing. The Union Budget 2018 has imposed an LTCG tax of 10 per cent on investors in stock markets who sell their shares after one year. Read More