Asian shares fell on Monday and the dollar climbed after a robust US jobs report dashed any expectations of a near-term interest rate cut from the Federal Reserve, while stocks in China remained on the back foot on weak sentiment.

The Nikkei index was trading 0.7% lower, while Hang Seng was trading 0.6% lower. Meanwhile, the Shanghai index is trading 1.9% lower.

US stocks ended sharply higher on Friday and the S&P 500 registered an all-time closing high as strong earnings and a blowout January employment report boosted confidence in the economy, even while lowering the likelihood that the Federal Reserve will cut interest rates any time soon.

Here's a table showing how US stocks performed on Friday:

Data Source: Equitymaster

At present, the BSE Sensex is trading 98 points higher and NSE Nifty is trading 50 points higher.

Cipla, BPCL, and Sun Pharma are among the top gainers today.

HDFC Bank, ICICI Bank, and Reliance Industries on the other hand are among the top losers today.

Broader markets are trading higher. The BSE Mid Cap is trading at 0.9% and the BSE Small Cap index is trading at 0.5% higher.

Barring the finance sector, other sectoral indices are trading on a positive note, with socks in the oil & gas sector, power sector, and realty sector witnessing the most buying.

The rupee is trading at Rs 83.03 against the US dollar.

In commodity markets, gold prices are trading flat at Rs 62,488 per 10 grams today.

Meanwhile, silver prices are trading 0.3% lower at Rs 70,967 per 1 kg.
 

Paytm Denies ED Probe

One97 Communications, the parent arm of payments solutions firm Paytm, on 4 February clarified that the company or its related entities are not facing any investigation from the Enforcement Directorate (ED).

The clarification came a day after reports said that the federal financial crime-fighting agency could initiate an investigation against Paytm Payments Bank, the banking arm of Paytm if charges related to money laundering are found.

The company categorically denies any investigation by the Enforcement Directorate on OCL (One97 Communications Ltd), our associates and/or its Founder and CEO for anti-money laundering activities.

A day earlier, news agency Reuters, which spoke to Revenue Secretary Sanjay Malhotra, reported that the ED may probe Paytm Payments Bank if if any fresh charges of fund siphoning are found.

Notably, the RBI on January 31 directed Paytm Payments Bank to stop accepting fresh deposits and making credit transactions from 29 February onwards. The lender would also be barred from accepting top-ups in any customer accounts, including prepaid instruments, wallets, FASTags, and NCMC cards among others.

The RBI's action against Paytm Payments Bank was taken following reports of non-compliance and supervisory concerns.

The central bank said a Comprehensive System Audit report and subsequent compliance validation report by the external auditors revealed persistent non-compliance and continued material supervisory concerns in the bank, warranting further supervisory action.

SIAC Rejects Sony's Plea

The Singapore International Arbitration Centre, on Sunday, rejected the emergency arbitration petition filed by Japanese major Sony against Zee Entertainment Enterprises over their failed merger, citing lack of jurisdiction.

Sony Pictures Networks India had filed the petition against Zee Entertainment after terminating their merger that would have created a US$ 10 billion entertainment giant with 25% of the market share among the general entertainment channels.

A Zee spokesperson declined to comment on Sunday while an email sent to Sony Pictures Networks did not elicit any comments.

The litigation between Zee and Sony started after Sony sought $90 million as termination fees from Zee, saying it did not comply with several pre-conditions set in the merger agreement. Zee denied Sony's allegations and made counterclaims against the Japanese firm at the SIAC.

A parallel litigation was also initiated in the National Company Law Tribunal in Mumbai by a Zee shareholder. The NCLT has given three weeks to both Zee and Sony to file their replies. The matter will be heard next month.
 

Aurobindo Pharma to Sell Business Assets to Empower

Eugia US Manufacturing LLC, USA, a wholly-owned step-down subsidiary of Aurobindo Pharma has signed an asset purchase agreement with Empower Clinic Services New Jersey, LLC to dispose of its business assets as a going concern for US$ 52 million (m).

The deal will also involve Eugia's related assets, liabilities, and employees since capacities and operations are being ramped up in other units of the company. Once the deal is closed, it will enter into contract manufacturing arrangements with the buyer.

A cash consideration of US$ 52 million will be received from the disposal of the assets. An additional US$ 58 million will also be made as lease payments to Eugia US Manufacturing LLC and/or its affiliates, over the 20-year lease term, including extensions.

The transaction is expected to close within 90 days from the date of the agreement, subject to the fulfillment of closing conditions referenced in the definitive agreement, including financial closure by the buyer.

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