Fitch Financial News

mining retrospectively from April 1, 2005, experts have been arguing that operating costs of Indian mining companies are likely to rise significantly post the apex court ruling. Financial advisory firm Ambit Capital, however, citing a precedent, argues that there is a silver bullet that could somewhat minimize the net impact to companies from prospective dues. The financial advisory firm says that the Union Government can lower the royalty rate on mining to compensate companies.

An array of issues ranging from a potential increase in provisions for credit losses (PCL) and the impact of the Bank of Canada’s rate cuts on loans to money laundering troubles are likely to dominate discussions this week and next as Canada’s top banks release their earnings.

stocks of top IT companies after their June quarter financial performance seems to have waned. The stocks of Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, Tech Mahindra, and LTIMindtree have lost between 3% and 6% in August so far driven by market volatility and mounting uncertainty over the demand form the US, a major market for Indian IT sector. Some of these companies had gained in double digits on bourses in June after showing early signs of improvement in project ramp ups. However, their post-result management commentary continued to be cautiously optimistic despite a sustained trend in deal wins during the quarter amid lack of a marked change in the clients’ approach towards budget allocation.

geopolitical risks as the war in Gaza drags on, and kept the rating outlook negative, meaning a further downgrade is possible. The ratings agency expects the Israeli government to permanently increase military spending by close to 1.5% of GDP versus pre-war levels, putting upward pressure on the country's budget deficit and debt levels. «In our view, the conflict in Gaza could last well into 2025 and there are risks of it broadening to other fronts,» the ratings agency said in a statement.

But India has made a strong comeback in Sri Lanka, wresting significant advantage from China. And going by the grammar and tone of S Jaishankar's just-concluded visit to Maldives, Muizzu, too, seems to be course-correcting. So, there's more than what meets the eye — a fresh dynamic that reflects changing geopolitical and economic realities. Take the Maldives. In May, IMF warned the country against a ballooning Chinese debt folio. A month later, Fitch downgraded its rating on grounds of 'increased risks associated with the country's worsening external financing and liquidity metrics'. It assessed that weakening foreign-reserve buffers and rising external government debt 'increase the challenges for the new government to meet its substantial upcoming external debt-servicing obligations and keep the currency peg to the US dollar'.

Fortune 500 companies, excluding Microsoft, will face $5.4 billion in financial losses from the recent CrowdStrike outage, insurer Parametrix said on Wednesday.

Canada’s large pensions are facing rising losses from real estate investments, according to a sector report by Fitch Ratings Inc., which concluded that fund titans are nevertheless well-positioned to absorb near-term market swings.

Tata Steel is working with the UK government and unions to ensure an adequate level of investment for supporting skill development of workers who would be impacted due to the modernisation of its Port Talbot plant, according to the company's chairman N Chandrasekaran. As part of its decarbonisation plan, Tata Steel is shifting to a low-emission electric arc furnace (EAF) process from an ageing blast furnace at Port Talbot mill, resulting in job losses of around 2,500 people. Addressing the 117th Annual General Meeting of Tata Steel on Monday, Chandrasekaran said that the company recognises that this transformation is difficult from an execution perspective and also difficult for some of the employees who will not have a future with Tata Steel, especially in the UK. «The company is working with the government and with the unions to make sure that we do sufficient level of investment to be able to support them in their skill development so they can have a better future.

₹1.6 trillion from ₹2.42 trillion during the corresponding period of 2023-24, show data from BSE and NSE. The total number of issues fell to 247 from 287. The total amount of corporate bonds raised through the EBP also saw a sharp decline sequentially.

exports, improvement in the current account deficit (CAD) and focus on expanding manufacturing will help the Indian economy register a healthy growth rate, Commerce and Industry Minister Piyush Goyal has said. He was here to participate in a programme of the gems and jewellery industry.

global expansion (including acquisitions) are among the objectives cited behind Oyo's latest fund raise and increasing its authorised share capital, as per the regulatory documents seen by ET. ET reported on June 20 that Oyo has received shareholder approval for raising Rs 416.85 crore through preference shares in an extraordinary general meeting (EGM) held on June 18. The shareholders also gave their nod to increasing Oyo's authorized share capital from Rs 901.14 crore to Rs 1,341.14 crore.

BEIJING — Ratings agency Fitch no longer expects China to cut its policy rate this year, and has pushed back its expectations for a reduction to next year as the U.S. Federal Reserve keeps its interest rates high.

rupee stayed on the upward track for the second straight session and appreciated 6 paise to 83.37 against the US dollar in early trade on Wednesday boosted by sustained inflow of foreign capital and firm equity markets. The local unit, however, faced resistance due to a stronger American currency and higher crude oil prices overseas, forex traders said. At the interbank foreign exchange market, the local unit opened strong at 83.39 and gained further to 83.34 against the greenback in initial deals. It later traded at 83.37 against the American currency, registering a rise of 6 paise from its previous close.

₹2.1 lakh crore, almost double the amount which bond markets expected.While the higher dividend provides larger flexibility to the central government on the fiscal side, the positive surprise enthused the markets, with the benchmark 10 year bond yield ending the month at 6.98%.Also Read: Expert view: Indian stock market not in a bubble, still below the long-term trendline, says Devina Mehra of First GlobalMeanwhile, India’s headline retail inflation fell to a 12-month low of 4.75% in May. Domestic GDP growth for FY24 rose to 8.2% YoY from 7.0% in FY23, while GVA growth rose to 7.2% versus 6.7% in FY2023.

Fitch Ratings on Tuesday raised India's growth forecast to 7.2 per cent for FY25. Meanwhile, it said that the global growth is expected to slow in 2025 despite monetary easing in 2024.

The Fitch agency says it has raised Cyprus’ credit rating by a notch to BBB+

Narendra Modi will take oath for the third time as the prime minister but in a significantly altered situation. Allies, including big regional parties such as the TDP and the JD(U), will prop up Modi 3.0. Many say they will extract their pound of flesh which might result in Modi's agenda of economic growth suffering a drastic change or a slowdown. However, many others think there will not be any substantial change in the direction of Modi's economic agenda as only bold reforms can take a backseat while all else continues as it is. Fitch Ratings on Wednesday reinforced its ‘positive’ outlook on India's medium-term economic growth.

subscriber count is seen rising several notches to 20-25 per cent of the overall base in one year, but though telcos are in a «better position» to execute tariff increase, actual visibility on a «meaningful» increase remains uncertain, Ind-Ra said. According to India Ratings and Research (Ind-Ra), this is because globally too 5G has not yielded any major tariff premium over 4G rates. The use cases of 5G in India are still limited to applications such as video streaming and multi-person video calls.

BENGALURU:Oyo has reported its first full-year net profit in its 12 years of existence, scoring its second victory this week following a vote of confidence from Fitch as the hospitality chain rides a resurgence in travel.Weeks after withdrawing its draft initial public offering papers, Oyo's founder Ritesh Agarwal said on social media platform X that the company had made a profit after tax of nearly ₹100 crore in 2023-24. Oyo had reported a loss of ₹1,286.5 crore for FY23.Oyo, owned by Oravel Stays Pvt.

India's sovereign outlook after 10 years to 'positive,' citing improved quality of public spending and expectation of broad continuity in reforms and fiscal policies. India's rating remains unchanged at BBB-. The agency said the country's rating could be upgraded in the next 24 months if it adopts a cautious fiscal and monetary policy that reduces the government's elevated debt and interest burden while bolstering economic resilience. «It's a welcome development,» finance minister Nirmala Sitharaman posted on X, «It has been possible due to the series of macroeconomic reforms undertaken since 2014, along with substantial outlay for capex, fiscal discipline, and decisive & visionary leadership.» Expressing enduring confidence in the economy, economic affairs secretary Ajay Seth told ET, «I am glad S&P, in its own assessment, has realised the strength of India's economy and upgraded outlook… The team led by the chief economic adviser could convince them (S&P) to reach (this) assessment.»

Fitch revised the outlook on Toronto-Dominion Bank’s credit ratings to “negative” from “stable” on Tuesday, citing risks to its business from the anti-money laundering probes it is facing.