BQuick On Sept. 7: Top 10 News Stories In Under 10 Minutes 

BQuick On Sept. 7: Top 10 News Stories In Under 10 Minutes 
Coils of steel sit in storage on the cold rolling line ahead of milling at the Thyssenkrupp Rasselstein GmbH steel packaging factory in Andernach, Germany (Photographer: Krisztian Bocsi/Bloomberg)  

This is a roundup of the day's top stories in brief.

1. Race For Essar Steel

The National Company Law Appellate Tribunal today ruled that Numetal's second bid for Essar Steel Ltd. qualified and that ArcelorMittal can bid for the steelmaker only if it clears the dues of its subsidiaries.

  • The NCLAT gave ArcelorMittal till Sept. 11 to clear pending dues for Uttam Galva and KSS Petron, which add up to about Rs 7,000 crore.
  • In its second bid submitted on March 29, Numetal had eliminated the shareholding held by a trust in which Rewant Ruia was a beneficiary.
  • Instead, JSW Steel Ltd. had joined the consortium.
  • Anil Agarwal-led Vedanta Group had also participated in the bidding process when lenders called for bids in the second round.

How close is Essar Steel insolvency resolution?

2. 12 Power Assets At Bankruptcy Risk

Indian lenders haven't yet been able to restructure 12 stressed loan accounts in the power sector, people with knowledge of the discussions told Bloomberg News, underscoring the risk that these may be referred to bankruptcy courts.

  • It was thought that a resolution was possible in seven of these assets.
  • Discussions on revamping the debt are ongoing and lenders may still reach agreement on some assets, according to the people.
  • Under a Reserve Bank directive in February, lenders had until Aug. 27 to recast certain delinquent loans and a further 15 days to refer the cases under the nation's bankruptcy law.

The 12 accounts referred to include.....

3. Indian Markets Snap Weekly Gain Streak; U.S. Stocks Mixed

Indian equity benchmarks rose for second day in a row led by telecom and auto stocks.

  • S&P BSE Sensex Index rose 0.38 percent or 147 points to 38,390.
  • NSE Nifty 50 Index advanced 0.45 percent or 52 points to 11,589.
  • On a weekly basis, the benchmarks snapped their longest stretch of gains since January as the weakening rupee raised concerns over earnings growth outlook.

Follow the day's trading action here.

U.S. stocks pared early losses to trade mixed as chipmakers looked to rebound from a three-day selloff.

  • The S&P 500 fell 0.1 percent. It's down 0.9 percent in the truncated week.
  • Treasuries tumbled after the latest jobs report brought an unexpected acceleration in wage gains, clearing the way for the Federal Reserve to maintain the pace of rate hikes.
  • West Texas Intermediate crude dropped 1 percent to $67.08 a barrel.

Get your fix of global markets action here.

4. Inflows Into Equity Mutual Funds Fall... Again

Inflows into equity mutual funds, including equity-linked savings schemes, declined for the fourth straight month in August.

  • Total equity inflow fell 11.4 percent month-on-month to Rs 8,375 crore.
  • The mutual fund industry, however, witnessed a total inflow of Rs 1.74 lakh crore—the highest since 2011—compared with an outflow of over Rs 32,000 crore in July.
  • The liquid/money market category contributed the most to the total inflow into mutual funds.
  • “It's good to see net sales holding on in the positive zone,” said Swarup Mohanty, chief executive officer at Mirae Asset Global Investments (India) Pvt. Ltd.

Here are the details of MF industry's assets under management.

5. India's Current-Account Deficit Widens

India's current-account deficit widened in the April-June quarter from a year ago, on account of a larger trade gap.

  • The $15.8 billion shortfall may still offer relief to the battered rupee, as it was less than the $17.3 billion median estimate in a Bloomberg survey.
  • The shortfall represented 2.4 percent of gross domestic product, worse than January-March's 1.9 percent.
  • It was at $15 billion during the same period last year, or 2.5 percent of GDP.
  • The widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit.

Here's the big picture.

6. Sun Pharma's Halol Woes

Sun Pharmaceutical Industries Ltd.'s Halol plant, which was cleared by the U.S. drug regulator earlier this year, received six observations after an inspection conducted from Aug. 27- Aug. 31.

  • The observations point to issues related to test procedures, according to the latest Form 483.
  • The observations, however, don't bar the firm from from seeking fresh drug approvals from the plant.
  • Sun Pharma said it will submit its response to the observations within 15 business days.

Here are the six observations.

7. Tesla Erupts In Chaos

The turmoil at Tesla Inc. reached a fever pitch Friday, as news emerged that two senior executives will leave Elon Musk's electric-car maker a matter of hours after he smoked marijuana during an hours-long interview with a comedian.

  • Tesla's chief accounting officer gave notice he's resigning one month into the job, citing the level of scrutiny on the electric-car maker.
  • Dave Morton, the chief accounting officer, had joined Tesla just a day before Musk said he was considering taking the carmaker private.
  • Gabrielle Toledano, the company's chief people officer, told Bloomberg News that she won't rejoin the company after taking a leave of absence.

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