Rupee plunges 34 paise as oil hits $111/bbl
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Mumbai: The rupee slumped by 34 paise to close at 76.18 against the US dollar on Monday as rising crude oil prices and a lacklustre trend in domestic equities weighed on investor sentiment Expectations of aggressive rate hikes by the US Federal Reserve to control inflation also weighed on the local unit. Brent May futures rose sharply over 3% overnight to $111.45 a barrel against Friday's close of $107.93 a bbl after Ukrainian forces refused to surrender in the besieged port city of Mariupol.
"The dollar is in rally mode as markets expect an even more hawkish Federal Reserve moving forward. Weakness in domestic equities and higher crude oil prices also weighed on the local unit," said Dilip Parmar, Research Analyst, HDFC Securities.
Govt conducting roadshows for strategic divestment in IDBI Bank
The government is holding roadshows for IDBI Bank privatisation and will come out with Eol after assessing investor interest, Minister of State for Finance Bhagwat Karad said on Monday.
The Cabinet Committee on Economic Affairs had in May last year given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank. The government and LIC together own more than 94 per cent equity of IDBI Bank. However, the exact quantum of stake dilution is yet to be decided
In a written reply to the Lok Sabha, Karad said it is expected that the strategic buyer will in fuse funds, bring new technology and best management practices in IDBI Bank and shall generate more business without dependence on LIC and government for capital.
LIC, currently having management control, has a 49.24 per cent stake, while the government holds 45.48 per cent in the bank. Non-promoter. shareholding stands at 5.29 per cent. "... roadshows are currently being held to assess the investors' interest before floating the Expression of Interest (EOI)," Karad said.
... roadshows are currently being held to assess the investors! interest before floating the Expression of Interest
BHAGWAT KARAD Minister of State for Finance
The minister further said that while deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the share purchase agreement.
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