Top business stories on 19th September in a capsule

Tata Sons to buy Tata Motors stake for 2,000 crore rupees

Tata’s parent company Tata Sons, is reportedly buying shares of its motor arm Tata Motors, to seek greater control for the Jaguar and Land Rover owner company, media reports said on Tuesday. The company purchased 1.7% of the shares for $312 million dollars, i.e. 2 thousand crore rupees. Tata Motors rose as much as 5 percent in Tuesday trading, the biggest intraday gain since July. It is also said the company is increasing ownerships in its strong arms to protect them from potential threats. Tata Group controlled 34.7 percent of the automaker at the end of June, including shares held through Tata Sons, according to stock exchange filings. 

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Sensex, Nifty end flat, Tata Motors surges 5%

The Sensex and Nifty closed flat on Tuesday, due to due to losses in banking, financial, energy and capital goods stocks amid a weak global trend ahead of US Federal Reserve meeting. BSE Sensex closes lower by 21 points to 32,402, while the Nifty 50 edged down 6 points to close at 10,148. Tata Motors rose the most today, increasing by 5%, its biggest rise since July. The rupee was trading at 64.17 a dollar, down 0.05% from its Monday’s close of 64.08.

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Mahindra and Ford sign 3-year deal to explore electric vehicles

US based Ford motors has joined hands with Mahindra & Mahindra to explore vehicles powered by electricity, on Monday. They had announced a JV with the same company in 1995 and had walked out of the collaboration in 2005. This time, the future of the alliance will be decided after three years. This alliance is designed to leverage the benefits of Ford’s global reach and expertise and Mahindra’s scale in India and successful operating model. Similarly, Suzuki has announced a joint venture with Toyota, and Volkswagen Group’s Skoda Auto had a similar pact with Tata Motors Ltd., which was called off recently. 

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Former PM Manmohan speaks on Demonetisation

Former Finance and Prime Minister Man Mohan Singh said that demonetization and GST has severely impacted India’s economic growth. He referred to GST implementation as ‘hasty’. While addressing the media on Monday, he said that both demonetization and GST affect the informal and the small scale sector, which are responsible for 40% of the country’s GDP. His statements come after the country recorded the slowest economic growth in three years, at 5.7%. A few months ago, he had described demonetization as “monumental mismanagement”, “organised loot” and “legalised plunder” and predicted that the GDP growth would be affected by at least 2%. 

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NCLT proceeds with Stayzilla insolvency case

The National Company Law Tribunal on Tuesday gave the go-ahead for the insolvency proceedings of accommodation aggregator Stayzilla. The complaint was filed by Jigsaw Advertising, who handled the advertising of the company against Inasra Technologies, which manages the company. The tribunal has also appointed an interim resolution professional (IRP) to take care of Inasra Technologies’ management. Yogendra Vasupal, one of the founders of the company, was also arrested six months ago, for the same reason.

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