ET 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.

Boeing Co.’s customers finally have what they’ve been after: a leadership shakeup at the planemaker.Days after top executives of major US airlines turned up the heat on Boeing’s board to get a handle on its spiraling safety crisis, the embattled manufacturer announced one of the most dramatic overhauls in its century-long history. The trio that has led the company for the past four tumultuous years is relinquishing control, including Chief Executive Officer Dave Calhoun.The fix was in after the CEOs of Boeing’s three largest US customers — United Airlines Holdings Inc., Southwest Airlines Co. and American Airlines Group Inc. — pressed Boeing directors last week for a meeting where they could air concerns without Calhoun present, according to people familiar with the campaign.The CEOs were armed with the support of other airline leaders, an industry trade group and the frustrations of a broader group of stakeholders: the flying public and the lawmakers in Washington who represent them, these people said.“The simplest explanation is often the correct one, and it’s the upcoming meetings without Calhoun and the airlines, who are not only mad but reflect a much broader traveling public anger, too,” said Richard Aboulafia, managing director of consultancy AeroDynamic Advisory. “What the board couldn’t do, what the US government couldn’t do, what investors couldn’t do, maybe it came down to customers reflecting the fact that their jet fleets were fast becoming a meme.”The leadership changes were formalized over a weekend board session but had been discussed for months after a near-catastrophic incident on an Alaska Airlines jet pushed the planemaker into crisis, these people said. Directors wanted to signal the overhaul before the company issued its annual proxy statement, which was already weeks later than originally planned. Boeing’s new management faces a myriad of challenges — criminal investigations, eroding finances, regulatory scrutiny, market share losses to rival Airbus SE — along with a rare opportunity to shift Boeing away from the focus on cash that has driven its strategy for the past decade. They also have to convince the companies that buy its planes and the consumers who ride on them that their aircraft are safe.The company is already in talks to buy its largest supplier, Spirit AeroSystems Holdings Inc., a gambit that would’ve been unthinkable before the Alaska incident. Its incoming leadership will also need to map out plans for its first all-new jetliner in two decades, Calhoun told CNBC on Monday after announcing his impending departure.That gives Steve Mollenkopf, the former Qualcomm Inc. chief who will head the search for a replacement to Calhoun, an enormous say over Boeing’s future. Calhoun plans to stay on until the end of the year to help guide Boeing through unprecedented scrutiny of its factory operations by the Federal Aviation Administration and potentially contentious labor negotiations with its largest union.Larry Kellner, chairman of Boeing’s board, won’t stand for reelection at the company’s annual meeting this Spring. Stan Deal, the head of the division making commercial jetliners, stepped down immediately and was replaced by Chief Operating Officer, Stephanie Pope, who had been seen as a potential successor to Calhoun.“I think there are enormous opportunities here,” said Aboulafia, who has been a vocal critic of Calhoun. “Getting rid of three key people in the space of a day. There’s so much potential here for the company, the workforce. All that’s needed is real leadership with a solid knowledge of the industry.”Potential candidates for the top job include Pope, who remains in the running despite changing roles in Monday’s reshuffling, according to a person familiar with the matter. Others potentially under consideration could include General Electric Co. CEO Larry Culp; David Gitlin, a Boeing director and CEO of Carrier Global Corp.; Patrick Shanahan, Spirit AeroSystems CEO; and Greg Smith, American Airlines chairman and Boeing’s former finance chief.Representatives for Gitlin, Shanahan and Smith didn’t respond to requests for comment. When asked in a February interview about the Boeing CEO role, Culp said he was “looking forward to serving Boeing as their most important partner and supplier.” GE had no additional comment on Monday.Boeing ResetThe reset gives Boeing a chance to recapture some of its lost luster by making bold strategic moves, fixing simmering manufacturing issues and shifting from what critics saw as a myopic focus on cash generation. Boeing has posted $26 billion in losses over the last three years.Frustration and dismay had mounted over months by some of Boeing’s largest customers and safety officials over the latest crisis centered on the 737 Max jetliner, the planemaker’s main source of revenue and a backbone of domestic flying within the US. The FAA has capped production of the workhorse jet until it is satisfied Boeing has adequate quality controls in place in the wake of a January accident. As the agency finishes up an audit of the company’s manufacturing, Michael Whitaker, the agency’s new head, expressed concern about its safety culture in a rare interview on NBC Nightly News.The FAA is also revisiting Boeing this week to review its 30-day plan as the planemaker works to strengthen control over quality in its factories and supply chain. That will be followed by 60- and 90-day reviews, Calhoun told CNBC, with the agency expecting the planemaker to demonstrate that it’s making progress.Boeing has taken steps to address a big source of its quality breakdowns: planes that make their way down the assembly line rather than halting work for late-arriving parts, Brian West, the company’s chief financial officer said in a March 20 presentation. As of March 1, it stopped accepting fuselages from Spirit AeroSystems that didn’t fully meet manufacturing specifications.“At the end of the day it may be good for them, we who buy Boeing aircraft and airlines, for them to have gone through a very, very difficult period,” said John Plueger, CEO of Air Lease Corp., the largest US aircraft leasing company. A stronger Boeing would emerge with the “confidence of regulators and ultimately the confidence of the flying public,” Plueger said.

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.

ISRO on Monday said its Polar Satellite Launch Vehicle (PSLV) has accomplished zero orbital debris mission, and described it "another milestone". This was achieved on March 21, when the PSLV Orbital Experimental Module-3 (POEM-3) met its "fiery end" through a re-entry into the Earth's atmosphere. "The PSLV-C58/XPoSat mission has practically left zero debris in orbit," the space agency said. The PSLV-C58 mission was accomplished on January 1. According to ISRO, after completing the primary mission of injecting all satellites into their desired orbits, the terminal stage of PSLV was transformed into a 3-axis stabilised platform, the POEM-3. The stage was deorbited from 650 km to 350 km, which facilitated its early re-entry, and was passivated to remove residual propellants to minimise any accidental break-up risks, it said. POEM-3 was configured with a total of nine different experimental payloads to carry out technology demonstrations and scientific experiments on the newly developed indigenous systems. Out of these, six payloads were delivered by Non-Government Entities (NGEs) through Indian National Space Promotion and Authorization Centre (IN' SPACe). The mission objectives of these payloads were met in a month. The orbital altitude of the upper stage continued to decay under the influence of natural forces, primarily atmospheric drag with the module (NORAD ID 58695) expected to have impacted the North Pacific Ocean (Lat 6.4 N & Long 158.7 W) on March 21, 2024, at 14:04 UTC (19:34 Hrs. IST), ISRO said. Through the POEM, which serves as a very cost-effective platform for carrying out short-duration space-borne experiments, ISRO has opened up new vistas for academia, startups, and NGEs to experiment with their new payloads, it said. This novel opportunity has been effectively utilised by numerous startups, universities, and NGEs for carrying out experiments in space, which included electric thrusters, satellite dispensers, and star-tracking. POEM also incorporates new features such as total avionics in single-chain configuration, industrial-grade components in avionics packages including Mission Management Computer, standard interfaces for electric power, telemetry & telecommand, and new in-orbit navigation algorithms making use of rate-gyro, sun sensor, and magnetometer, the space agency said. For the effective conduct of experiments onboard in POEM-3, the body rates were stabilised to less than 0.5 deg/s throughout, and innovative schemes like controlled dumping of residual propellant after the main mission were introduced for minimizing disturbances due to passivation, it added. Noting that the Vikram Sarabhai Space Centre (VSSC) has taken the lead in conceptualising and realising the POEM by augmenting the 4th stage of PSLV, ISRO said PSLV-C58/XPoSat is the third such mission in the series, with POEMs being successfully scripted each time. The payload operations were carried out effectively by the spacecraft operations team from the mission operations complex (MOX) at ISRO Telemetry Tracking and Command Network (ISTRAC) and ISRO's System for Safe and Sustainable Spacecraft Operations Management (IS4OM) has been monitoring and analysing the orbital decay all through, it said. Till near re-entry, POEM-3 was tracked by ISTRAC ground stations. The Multi-Object Tracking Radar (MOTR) at Shriharikota also tracked the PS4 stage till the morning of March 21. POEM-3 was also supported by other Centres like U R Rao Satellite Centre (URSC), Liquid Propulsion Systems Centre (LPSC) and ISRO Inertial Systems Unit (IISU). ISRO said it will continue its commitment to providing a cost-effective orbital experiment platform, as the growing menace due to space debris, especially with multiple small satellite constellations coming up, poses a significant threat to space activities, including satellite launches, human spaceflight, and space exploration missions. ISRO, being a responsible space agency, is committed to mitigating this threat through the development and implementation of advanced debris tracking systems, space-object deorbiting technologies, and responsible satellite deployment practices, thus safeguarding orbital environments for present and future space endeavors, it added.