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Why India's Tata sons faces pressure to list
Tata Sons is the holding company for 31 group companies, including TCS and Tata Motors. The discussion about going public will likely come up on Saturday at a meeting of two trusts who are major shareholders. Tata Sons was not listed until now. Tata Sons is under pressure from its 'internal stakeholders', which includes the second-largest shareholder,?Shapoorji Paloonji Group (SP). Reserve Bank of India rules?may? also?require them to list, unless they are able to secure an exemption. What is the structure of TATA Group? Tata Sons, the 108-year-old salt-to steel conglomerate, is unique in its structure. A group of philanthropic organizations collectively known as Tata Trusts owns 66%. The SP Group, a construction and infrastructure conglomerate with a lot of debt, holds 18.4%. Tata Trusts consists of 13 entities. Seven of these directly own shares in Tata Sons. Six trustees are drawn from each of these entities to form the board of Tata Trusts. Noel Tata is a scion from the founding family and the current chairman of Tata Trusts. He is also a director of Tata Sons. Who wants TATA Sons to be listed? There are many pressures to list. In media interviews, at least two Tata trustees, Venu Srinivasan, and Vijay Singh, have supported the listing. They said that expansion, particularly into new areas such as semiconductors, will require large capital which cannot be generated within the company. The SP Group is seeking a listing to be able to monetise its holdings, which are not transferable under the current structure. The SP Group is not represented in the board of trustees. The main pressure comes from the RBI's rules, which require large non-bank lending institutions with assets above certain thresholds and/or public funds to list. What are the RBI rules and why? Do they apply to TATA Sons? Tata Sons, as the holding company for a variety of businesses, is classified by the RBI as a core investing company. According to revised rules released last month, companies with assets greater than 1 trillion rupees (10.45 billion dollars) or those who have direct or indirect access public funds must list. Tata Sons assets alone stood at 1,75 trillion rupees as of March 2025. The RBI has the discretion to decide which companies can be exempted from listing. HAS RBI CLARIFIED IT STANCE? The RBI has not made a public statement about the new rules, despite the fact that analysts and legal experts claim they make it more difficult for?Tata Sons Ltd. to remain private. Tata Sons' request for an exemption is currently being reviewed. The company has tried to reduce borrowings as a way to avoid listing. However, it is not clear if this will be enough. Who is opposing the listing? Noel Tata did not make any public comments but he has publicly opposed the conversion of Tata Sons to a listed company. Reports in the media claim that Noel Tata and other trustees "unanimously" opposed listing last fall and asked Tata Sons chairman to speak with RBI. What will happen at the Saturday Board Meeting? The boards of Sir Dorabji Tata Trust and Sir Ratan Tata Trust, which together own over 50% of Tata Sons will meet on Saturday. Discussion of the RBI rules, and their impact on a possible listing is a central item. Other items include the Tata Trusts increasing its representation on the Tata Sons Board, the reappointment and review of Tata Sons performance. Street is closely watching the?board, the first meeting since the RBI rules were rewritten, to see how the differences between the trustees on the list of Tata Sons will play out. According to the Trusts governance norms resolutions pass if majority of trustees votes in favor. If a majority vote of the trustees supports the proposal to list Tata Sons then the company must initiate the listing.
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ASIA GOLD - India discounts reach record highs on the import duty hike, while China premiums remain firm
This week, gold discounts in India reached a new record as a sharp increase in import duties slowed demand and triggered investor sales. Meanwhile, Chinese premiums remained firm due to investment demand. Dealers in India quoted discounts This week, you can save up to $207 per ounce on official domestic prices, including 15% import duties and 3% sales taxes. A jeweller in Hyderabad said that the'sudden rise in price' prompted investors and jewellers to sell while retail buyers and jewellers stayed out of it. India increased import duties on gold and Silver to 15% this week from 6%. India, the world's second largest consumer of gold, also tightened its rules on duty-free imports of gold for jewellery exports. Imports are limited to 100?kilograms. On Friday, gold prices in India traded at around 160,500 rupees for 10 grams, up from 164,497 earlier in the week. This was the highest price in over two months. A Mumbai-based gold dealer said that the discounts on gold have risen to an unusually high level as demand has virtually disappeared and scrap supply has increased. "China's stronger demand will likely counter India’s weaker demand following the policy changes of India," ANZ stated in a report. Bullion was traded at a premium in China, the world's largest consumer. The premium of $15 to 20 per ounce is in line with the $14 to $20 that was seen last week. Bernard Sin, Regional?Director of Greater China at MKS PAMP, stated that premiums were stable this week, due to the resilient investment demand, and aggressive industrial purchasing. Import restrictions are still a major constraint. However, a gradual easing is expected. Solar and electronics firms are particularly aggressive in their industrial stockpiling, which is exacerbated by the elimination of VAT (value added tax) export rebates," said he. The spot gold price has fallen 2.8% in the last week as rising energy prices fueled inflation fears and reinforced expectations for higher interest rates. In Hong Kong, gold In Japan, the premiums are $2. Gold was sold for $0.50 off. In Singapore Gold was sold with premiums ranging from $1 to $3.30.
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The equity party is ruined by the morning bid in Europe-yield surge
Stella Qiu gives us a look at what the future holds for European and global markets. Investors in stocks are finally waking up. Since weeks, the bond market has sounded an alarm - "runaway inflation" means that rate hikes are back on the table. The AI-fueled rally is running out of steam. Wall Street may be at new highs thanks to a 4% rise in Nvidia after CEO Jensen Huang accompanied Trump to Beijing. But it's a sea red in Asia. Nikkei, the Japanese stock market index, fell more than 1% following the biggest producer price jump in three years. This boosted bets that Bank of Japan would hike rates in June. South Korea's KOSPI fell over 3%. Europe faces a drop of around 1% at the opening. The Strait of?Hormuz is looming large over all of this. Iran claims that 30 ships have made it through the Strait of Hormuz, but this is still a trickle in comparison to normal pre-war traffic. Trump is showing signs of impatience after his talks with Beijing. There are increasing concerns that the Strait will remain choked past June, draining the global reserves and causing a full-blown oil crisis. Bond markets are already bracing for smart money. The soft U.S. Treasury Auctions this week are the "warning shot", highlighting fading investors' appetite as inflation rises. For the first time in 2007, the latest 30-year sale was cleared at 5%. Yields reached 5.061%, a 10-month-high on Friday. Even the front end isn't secure, with the two-year pushing to 4,055%, an one-year high. The Federal Reserve's policy is being re-pricing rapidly as oil prices continue to rise and consumers are still spending. Even under Trump's choice to lead the Fed, Kevin Warsh, the odds of another rate hike this year more than doubled to 45% in just a week. Investors might not want to dial it back too much as they head into the weekend. The following are key developments that may influence the markets on Friday. Trump to conclude his State visit to China
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French and Benelux stocks: Factors to watch
Here are some company news and stories that could have an impact on markets or individual stocks in?France and Benelux. AMG Critical Materials: AMG Critical Materials, a producer of energy storage materials, announced that it would acquire the remaining 71% Zinnwald Lithium, for 56 million dollars. The acquisition will be funded by 50% cash and 50% new AMG shares. Deal closing is expected in Q3. LVMH: French group LVMH LVMH.PA agreed to sell fashion brand Marc Jacobs?to a joint venture consisting of brand?manager WHP Global, and apparel company GIII 'Apparel Group GIII.O. The companies are raising up to 850 million dollars to fund this deal. STELLANTIS Stellantis STLAM.MI said on Friday that it had signed a deal worth about 1 billion euros ($1.17 billion), with Chinese?state owned Dongfeng 0489.SG, to produce Peugeot and Jeep cars in China. Pan-European market data: European ?Equities speed guide................... FTSE Eurotop 300 index.............................. DJ STOXX ?index...................................... Top ?10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurotop 300 sectors..................... Top 25 ?European pct gainers....................... Top 25 European ?pct losers........................ Main stock markets: Dow Jones ............... Wall Street Report ..... Nikkei 225............. Tokyo ?report............ London report ........... Xetra ?DAX............. Frankfurt items......... CAC-40................. Paris ?items............ World Indices..................................... Survey of global bourse outlook ......... European Asset Allocation........................ News in a nutshell: Top News ............. Equities.............. Main Oil Report ........... Main currency report .....
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Bloomberg News: Greer, USTR, says that China wants the Strait of Hormuz to be open without any restrictions.
U.S. trade representative Jamieson Greer said in a live interview with Bloomberg News on Friday that China wanted to see the Strait of Hormuz open again without any curbs or tolls. He added that the U.S. Beijing was confident that it would take action to 'limit' material support for Iran. He cited remarks made by Chinese officials during the Beijing summit of U.S.-China leaders. "It was very clear that the Strait of Hormuz should be open for China, with no tolling and no military control. We welcome this. Greer attended summit meetings between the?U.S. President Donald Trump met with Chinese President Xi Jinping. Trump is eager to gain Chinese support in order to end the Iran conflict. This has lowered his approval rating ahead of the November midterm elections. China is Iran's main oil buyer and close to the country. Iran has closed the Strait to all ships except its own. This is the largest disruption in global energy supply ever. Greer said that the Chinese were being pragmatic and didn't want be on the wrong end of the issue. They want peace in this area. President Trump is interested in peace. We are confident that they will limit any material support for Iran." In a recent statement on the Iran talks, China's foreign ministry urged a continued and stabilized momentum for deescalation. It said that there was no need to continue this war, which should never have occurred. Finding a solution sooner is beneficial for both the United States and Iran...and even the entire world. In its summary, the ministry did not mention the Strait of Hormuz but called for all shipping routes to be opened as quickly as possible. China has consistently called for the end of the fighting and the restoration of safe passage through the Strait. Beijing has engaged in a flurry diplomatic efforts but has not criticised the U.S. war conduct. In normal times, the Strait is home to a fifth or more of all global oil and gas supplies. Reporting by David Lawder and Liz Lee, both in Washington; editing by Jacqueline Wong & Clarence Fernandez
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India increases petrol and diesel prices by more than 3% according to retailers
?India raised petrol and diesel by more than 3% or 3 rupees per litre for the first time in 4 years, according to retail stores in?Delhi? on Friday. This was to recoup losses due to rising crude oil prices. After the U.S. and Israeli attacks on Iran began, the global oil price spiked up to over $120 per barrel. Then it dropped back down to $100 or $105. India is among the last major economies to raise fuel prices at retail. Diesel will now cost 90.67 rupies per litre in Delhi, and petrol will be 97.77 rupees. This represents a 3.4% increase and a 3.2% increase respectively from 87.67 rupies and 94.77 rupies per litre. According to Madhavi Arora of Emkay Financial Services in Mumbai, the direct impact on inflation will be about 15 basis points, but the indirect effect is much greater. The Indian Oil Corp., Hindustan Petroleum Corp. and Bharat Petroleum Corp., all state-run companies, control over 90% of India's fuel stations. The soaring?global oil prices have put a strain on the country's reserves of foreign currency. On Sunday, Prime Minister Narendra Modi called for a series of measures, including fuel conservation and work-from home practices. He also urged limits on travels and imports. Analysts and opposition parties said state retailers delayed raising prices while key state elections were taking place. Modi's BJP grew its influence after winning two out of four states in the polls that ended this month. Sujata sharma, a spokesman for the Oil Ministry in April, said that retailers lost about?20 per litre of petrol and?100 rupees when selling diesel. Nayara Energy, an Indian refiner with Russian backing, raised its pump prices in late March to offset some of the revenue losses it had suffered from retail sales.
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Oil prices rise more than 1% since Trump brought up China's interest to US oil supplies
Oil prices rose more than 1% as a result of?President Donald Trump's statement that China wanted to buy oil from?the United?States. Also, concerns about ship attacks and securing?ships remained despite Iran claiming 30 vessels passed through the Strait of Hormuz. Brent crude oil futures climbed $1.17 or 1.11% to $106.89 a bar by 0252 GMT. U.S. West Texas intermediate futures rose by $1.10 or 1.09% to $102.27. Trump said in a Fox News interview that he would be less patient with Iran and urged Tehran to make a deal with Washington. On Thursday, a ship reported to be seized by Iranians off the United Arab Emirates was reportedly heading for Iranian waters. Meanwhile, the White House stated that U.S. president Donald Trump and Chinese president Xi Jinping 'had agreed on the necessity of keeping the Strait of Hormuz Shipping lane open. A cargo vessel from India, carrying livestock to the United Arab Emirates from Africa, was also sunk in the waters near the coast of Oman on Wednesday. Iran's Revolutionary Guards reported 30 vessels have crossed the Strait of Hormuz as of Wednesday evening. This is still short of the 140 vessels that would normally cross the Strait of Hormuz daily prior to the war but it represents a significant increase, if confirmed. Yang An, an analyst at Haitong Futures said that the main driver for oil prices is still tight supply. He said that the oil prices fluctuated several times yesterday, but closed at or near their day's highest price. "Ships crossing the strait eased some market concerns but not enough to reverse the strong trend caused by tight supply." Trump and China's Xi Jinping - who have been on a two day?state trip that has included pomp and business deals - will meet to conclude their visit. In an interview with Bloomberg, U.S. trade representative Jamieson Greer stated that China was'very pragmatic in its involvement with Iran and that it is important to China for the Strait of Hormuz to remain open. Reporting by Mohi N. Narayan from New Delhi, and Sam Li, Lewis Jackson and Himani Sarkar in Beijing. Editing by Jamie Freed & Himani Sarkar.
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Gold prices drop on inflation worries fueled by oil; gold markets watch Trump-Xi talks
Gold?fell on Friday to a lower level than one week ago and?was destined for a weekly drop as rising energy prices fueled inflation fears and extended higher interest rates. Investors were focused on the meeting of U.S. president Donald Trump with Chinese president Xi Jinping. By?0205 GMT the spot gold price was down by 0.8% to $4,613.19 an ounce, its lowest since May 6. Bullion is down 2.1% this week. U.S. gold futures for June delivery fell 1.4% to $4 619. Dollar has gained more than 1% this week. This makes greenback priced bullion costly for holders of currencies other than the dollar. Tim Waterer is the chief market analyst for KCM Trade. He said that "gold has been hit on all sides. Rising oil prices have brought inflation to the forefront and pushed yields up, making the dollar stronger. The yellow metal has become the unfortunate victim of a renewed scepticism about rate cuts in the market." The yields on the benchmark 10-year U.S. Treasury note rose to an almost one-year high. This increased the opportunity costs of gold. Brent crude oil prices rose 5.5% in the past week and hovered above $106 per barrel as the Iran War drags on. This has kept the Strait of Hormuz, which is a key shipping route, largely closed. Since the U.S. - Iran conflict began late in February, gold has dropped about 13%. This is due to the rising energy prices which have raised inflation fears and the possibility of higher U.S. rates. This week, a series of inflation reports showed that the risk was high that rising energy costs would spread to other goods and service. Gold is often seen as a?hedging against inflation. However, the high interest rates can weigh down on this non-yielding asset. Trump and Xi Jinping will meet in the evening to conclude a two-day visit to China that included a lot of pomp and business, but also a warning by Xi about the potential for a spiraling relationship if the Taiwan issue is not handled correctly. Silver spot fell by 3.1%, to $80.93, platinum dropped 1.7%, to $2,021.75, while palladium fell 0.9% to $1,423.75. (Reporting and editing by Rashmi aich in Bengaluru)
INDIA BONDS - India bonds fall ahead of the auction due to fuel price hike and US debt crisis
Indian government bonds fell on Friday in the early trade, as domestic fuel prices?hiked inflation fears and U.S. Treasury Yields were at one-year-highs, reducing the appeal of emerging market?debt. This dampened demand before a 'fresh debt supply.
By 11:30 am IST on Friday, the yield on the benchmark 2035 bond of 6.48% had risen to 7.0591% compared to 7.0203% Thursday. Bond yields are inversely related to bond prices.
Delhi-based retailers announced on Friday that India had raised petrol and diesel by more than 3% or 3 rupees per litre for the first time since 2004. This was to make up some of the losses caused?by higher crude oil prices around the world.
Since the start of the "war", crude prices have risen by about 50%. Benchmark Brent crude futures last rose 1.23% to $107.04 per barrel.
Trump said he had lost patience with Iran, but there was no relief in the geopolitical arena. Despite Tehran's claim that 30 ships had passed through the Strait of Hormuz, there was still concern about ship attacks and seizure.
India imports 90% of its crude oil needs. High oil prices could cause inflation, pressure on the rupee, and a widening of the current account deficit.
Barclays economists wrote in a recent note that the fuel price increase today will add 8 bps in addition to the 6-bp rise from the gold import duty hike.
India's wholesale prices?index spiked from 3.9% to 8.3% in March. This is much higher than the market expectations of 5% plus, which traders are concerned could lead to consumer inflation.
The 10-year Treasury yield has also been impacted by inflation concerns, as it is now at its highest level in a year.
New Delhi is set to raise 320 Billion Rupees via a bond issue.
India's overnight swap rates increased 7-10 basis points as fuel price hikes changed inflation expectations and central bank policy expectations.
The swap rate for the one-year period was 6.1575%. For the two-year, it was 6.3850%. And the five-year, 6.71%. $1 = 95.7625 Indian Rupees (Reporting and editing by Eileen Soreng, Janane Venkatraman).
(source: Reuters)