Tag Archives: Sensex

Market down on global cues, Sebi after shell companies, SoftBank adds fund to Flipkart- Weekly Digest #50

Monday- 7th August 2017

  • SEBI has presented at least half a dozen angel firms with notices within one and a half month, asking them to spell out details of their fund-raising business and explain whether they operate within the contours of the securities market law.
  • InCred Finance, backed by former Deutsche Bank co-CEO Anshu Jain, is competing with US private equity giant Warburg Pincus and Aion Capital for a controlling stake in Catholic Syrian Bank
  • SoftBank founder Masayoshi Son said that the Tokyo-headquartered conglomerate remains “engaged“ with Flipkart, despite its recent failed attempts to acquire Snapdeal.
  • The SEBI has given approval to the merger between Idea Cellular and Vodafone India subjected to the regulator’s ongoing probe and approvals from public shareholders and the NCLT.

 

Tuesday- 8th August 2017

  • Sensex declined 0.8% to 32,014 points and nifty declined by 0.78% to 9,978 points as SEBI announced that investigations will be launched against 331 suspected shell companies and that trading will be severely restricted in those that are listed.
  • Trai to begin a consultation process to address the issues of ownership, privacy and security of data which flows through the network of telcos. At the end of the process, Trai will issue recommendations to the telecom department which will take a final decision on implementation.
  • Bharti Airtel has raised ₹2,570 crore by selling 3.65% stake in its tower unit to a clutch of global investors, including Fidelity International. The proceeds to be used to pare debt and stay aggressive in the price war.

 

Wednesday- 9th August 2017

  • Tata Motors posted a 42% increase in first-quarter consolidated net profit to ₹3,200 crores owing to one time gain on account of changes to the automaker’s pension benefit plans masking a poor operational performance.
  • Reliance Communications to hold its board meeting on 12th August 2017 to review matters regarding the proposed merger with Aircel and look into the conversion of debt to equity shares.
  • Jindal Steel and Power reported a 33% increase in consolidated operating profit on a YoY basis to ₹1,350 crores owing to strong performance of power division.
  • State-run lender Bank of India has recalled a ₹306-crore loan given to HDIL subsidiary Privilege Power and Infrastructure. This comes after Union Bank dragged group firm Guruashish Construction to the NCLT.

 

Thursday- 10th August 2017

  • SoftBank has bought a fifth of India’s most valuable startup -Flipkart -for an amount of $2.5 billion, in a deal that marks the biggest private investment in the country’s consumer technology sector.
  • Midcap and smallcap stocks fell the most in nine months as sentiments soured due to escalating geopolitical tensions between the US and North Korea. Sensex closed at 31,531 points and Nifty closed at 9,820 points.
  • Gopal Vittal, MD and CEO (India & South Asia) of Bharti Airtel sold 1.21 lakh shares in the telco to a promoter firm for around ₹5 crore at ₹416.05 per share.
  • The Reserve Bank of India (RBI) slashed the surplus it transfers to the government by more than half amid speculation that government’s demonetization move imposed a cost on the regulator. It would transfer ₹30,659 crore to the treasury, down from ₹65,876 crore a year earlier.

 

Friday- 11th August 2017

  • Amidst escalating tensions between US and North Korea, the market took a fall for the 5th consecutive day. The Sensex ended down 317.74 points, or 1%, at 31,213.59 and the Nifty lost 109.45 points, or 1.1%, to close at 9,710.80.
  • Tata Steel signed an agreement on segregating the company’s UK business from its pension scheme. This can possibly lead to a merger with ThyssenKrupp AG of Germany.
  • Hike Messenger has acquired Creo, a Bengaluru-based technology startup for an undisclosed amount.

 

Source: The Economic Times

Image

Advertisements

ICICI Q4 results, Patanjali now second in race, NPA Ordinance- Weekly Digest #43

Monday- 1st May 2017

  • Ola reported a consolidated PBT of ₹2,313 crores for FY 16 in comparison to FY 15 loss of ₹796 crores. This has been attributed to heavy spending to maintain market leadership against Uber.
  • Xander Group to acquire 100% interest in Shriram’s Gateway SEZ in Chennai for $190 million. This is the largest private equity buyout so far in India’s real estate sector.
  • SBI has cut deposit rates by up to 50 basis points for maturities above two years. however, it has retained the 7.40% on one-year deposits for senior citizens.

 

Tuesday-2nd May 2017

  • PepsiCo to roll out Pepsi Black, a zero-sugar cola in cans, to counter Coke Zero, reflecting the shifting consumer preference towards less sugary drinks in India.
  • China Development Bank has objected to the $6billion merger of debt-ridden telecom operators RCom and Aircel even as regulators including the Competition Commission of India have signed off on the deal. The assets transferred are offered as security to Chinese Bank and thus they seek a lender’s meeting.
  • Infosys said that it would hire 10,000 US workers over the next two years as Indian IT industry looks to mitigate the impact of the tighter work visa rules.
  • SIPs in MFs rose to an all-time high of ₹4,200 crores in the month of April 2017.
  • Promoters of HDFC Life and Max Life have extended the deadline for the merger of the two life insurers by a year to June 2018 because the sector regulator has yet to give its nod for the proposed deal.

 

Wednesday- 3rd May 2017

  • The cabinet cleared the NPA resolution package that includes an ordinance to empower the RBI to more effectively deal with bad assets. It also approved a new policy to boost consumption of locally produced steel and modifications to recommendations of the Seventh Central Pay Commission with respect to pensioners.
  • Private Equity Investors TPG and General Atlantic (GA) have joined forces in a bid to acquire a controlling stake in Fortis Healthcare. This also involves the purchase of the diagnostics arm SRL.
  • Ratan Tata’s venture fund RNT Capital Advisors and US hedge fund Falcon Edge have invested an amount of $100 million in Ola in exchange of shares of the company at ₹13,521 each.
  • Brinton Pharmaceuticals has raised an amount of $4 million from Tata Capital Healthcare Fund, as the firm looks to enter into newer areas such paediatrics and gynaecology and expand its international operations.
  • ICICI posted 3 times rise in net profit for Q4 on the YoY basis at ₹2,025 crores from last year’s ₹702 crores.  It announced a dividend of ₹2.5 per share and a bonus share for every 10 shares.

 

Thursday- 4th May 2017

  • The Nifty closed at an all-time high while the Sensex ended above the 30,000 mark, a day after ICICI Bank posted times increase in its profits and cabinet approved NPA resolution. Sensex closed at 30,126 points and nifty closed at 9,360 points.
  • India urged the UK to expedite extradition of Vijay Mallya and other fugitives besides raising the issue of visa-related difficulties faced by Indian students and skilled professionals at the maiden home secretary-level talks.
  • Patanjali reported a revenue of ₹10,561 crores for FY17, making it the second largest FMCG player, behind HUL.
  • Facebook has tied up with Bharti Airtel to deploy 20,000 Wi-Fi hotspots across the country to offer affordable internet services through the social networking major’s Express WiFi service over the next few months.

 

Friday-5th May 2017

  • Sachin Tendulkar and Pepsico are coming together to produce a raft of nutrition-focused food products and beverages through a new firm, Liquefy Innovations LLP.
  • Cement giant LafargeHolcim has initiated a process that could lead to the union of its Indian operations ACC and Ambuja Cement.
  • Sensex and Nifty fell over 1% as banks reversed previous day’s gains. Nifty ended at 9,285 points and the Sensex at29,859 points.

 

Source: The Economic Times

Image

Sensex hits 30K, Delhi HC turns down RBI, RCom-Aircel Merger – Weekly Digest #42

Monday- 24th April 2017

  • Reliance Industries reported a 12.3% increase in quarterly net profit to ₹8,046 crores owing to robust petrochemical and refining margin. Jio reported a net loss for the six months as ₹22.50 crores.
  • Owing to strong cues from French presidential elections, the Sensex rose 290.5 points to close at 29,656 points while Nifty gained 98points to reclaim 9,200 level.
  • The shareholders Reliance Communications and Aircel approved the merger of the mobile businesses of their companies to form the India’s fourth largest telecommunication company.

 

Tuesday- 18th April 2017

  • Owing to French Presidential elections and Trump’s indicating tax rate cuts, Sensex rose to 29,943.24 points and Nifty crossed the 9,300 mark, touchingits all time high.
  • Welspun India’s fourth quarter profit fell 21.5% to ₹153.8 crores as it is still recovering from Target’s exit due to its fake Egyptian cotton sheets.
  • Following feud between Cyrus Mystry and TATA sons, a director with seats in Tata and Wadia Group companies decided to step down from the latter. Cyrus Mistry’s brother, Shapoor Mistry stepped down from the board of Tata-owned Indian Hotels.
  • The Lodha Group, a Mumbai-based property developer, may acquire as much as 15% of projects company, Vascon Engineers, seeking to tap into the expanding demand for affordable housing in India.
  • NTPC and HPCL-Mittal Energy have raised money through ₹2,400 crores Masala Bond sales to overseas investors.

 

Wednesday- 19th April 2017

  • Rupee surged to its strongest in 20 months s dollars flooded into local equities and bonds, prompting RBI to intervene to limit gains, which erode the profitability of exporters. The rupee touched 63.93 before being pulled back to 64.11 at close.
  • The Sensex closed above 30,000 mark for the first time, mirroring optimism in the US markets where Nasdaq Composite crossed 6,000 for the first time. Nifty closed at a fresh all time high of 9,352 points.
  • Sebi has approved introduction of options contracts in the commodities market. Details to be worked out in due course.

 

Thursday- 20th April 2017

  • One 97 Communications, owner of online payments provider Paytm, is set to raise over ₹12,000 crore SoftBank. This will value the company at around $9 billion and provide a 20% stake to SoftBank.
  • Maruti Suzuki India Limited reported a 16%increase in its Q4 net profits to ₹1,709 crores owing to higher sales of premium models such as Baleno and Brezza.
  • HDFC bank hit record high Market Cap of ₹4 lakh crore as it reached the intraday high of ₹1,572 before closing at 1,567.

 

Friday-21st April 2017

  • The Delhi High Court allowed Tata Sons to pay NTT Docomo a $1.18 billion arbitration award despite RBI protesting against the same. RBI was protetsing on the ground that it amounted to transfer of shares resulting in violation of law.
  • Amazon’s founder Jeff Bezos said that he is grateful for Indian Customers to make Amazon India the country’s most popular Web marketplace with a promise that he’ll keep investing in Indian business of Amazon.
  • Paytm Ecommerce has appointed SAIF Partner’s Ravi Adusumalli and four employees from investor Alibaba on the board of directors, according to filings made with the MCA.
  • Kotak Mahindra Bank to buy entire 26% stake held by Old Mutual plc, in Kotak Mahindra Old Mutual Life Insurance for ₹1,292 crores, valuing the company at ₹4,672 crores.

 

Source: The Economic Times

Image

Market begins recovery, DTA with Singapore revised, Holding SBNs Criminalised- Weekly Digest #28

Monday- 26th December 2016

  • eBay India reported a three times rise in the sales in 2015-16 to Posted Image392 crores. However, its loss widened from  Posted Image172 crores to  Posted Image262 crores this year despite various cost-cutting measures.
  • Godrej Nature’s Basket has initiated its process of shutting all the eight stores it operated in NCR. It has already closed two stores and will be closing remaining in the coming weeks.
  • Sensex slipped below Brexit Day low, to attain its 7-month low by closing at 25,807 points. Nifty closed at 7,908 points.

Tuesday-27th December 2016

  • Tata Sons accused Cyrus Mistry of passing on confidential information to Cyrus Investments and Sterling Investment Corporation as such information has been included in their petition against Tata Sons before NCLT.
  • After Finance Minister Arun Jaitley’s remarks about possible low tax regime in future, Sensex gained 406 points to reach 26,213 points and Nifty reclaimed the 8,000 mark by reaching 8,032 points.
  • Central Depository Services Limited (CDSL) has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to 3.52 crore shares.
  • Panasonic Corp will invest $256 million in Elon Musk’s Tesla Motors to make photovoltaic (PV) cells and modules, deepening a partnership of the two companies.

 

Wednesday- 28th December 2016

  • The Cabinet approved the ordinance of extinguishing RBI’s liability towards old 500 and 1,000 notes. Also, a penalty for holding such notes will be imposed on those holding such currency in excess of ten units combined after 31st March 2017.
  • ICICI Bank and Twitter announced a partnership which will enable digital customer care support features for the bank, benefiting millions of its customers with direct online response to their queries and feedback in real-time.
  • The National Stock Exchange (NSE) has filed an application for an initial public offering. The size of the IPO is expected to be around Posted Image10,000 crores and will be the third largest IPO in the last six years.
  • Real Estate firm Vatika has raised an amount of Posted Image495 crores as term debt for supporting the growth plans of its hospitality arm, Vatika Hotels.

 

Thursday- 29th December 2016

  • Digital payments and financial services company instantPay has raised an amount of $3-5 million from Singapore-based investors RB Investments and Kaleden Holdings.
  • Tata Sons sent a legal notice to former chairman Cyrus Mistry to return all confidential information he has in his possession and declare in writing that none of it had been shared with Shapoorji Pallonji Group companies, family members and affiliates.
  • Marico chairman, Harsh Mariwala, an independent board director of L&T Finance bought 46,000 shares from open market. L&T Finance has gained over 26% in this sluggish year.

 

Friday- 30th December 2016

  • IDBI bank slashed interest rates by announcing a 40bps cut to 9.30% for three-year loans. State Bank of Travancore slashed benchmark lending rate by up to 0.3% and other banks are expected to follow a similar path.
  • RBI relaxed the daily ATM withdrawal limit to Posted Image4,500 from earlier Posted Image2,500. However, bank withdrawal limit per week stands at Posted Image24,000.
  • India has amended its 2-decade old tax treaty with Singapore that will allow it to tax capital gains on investments from Singapore. Recently, STAs were amended with Cyprus and Mauritius too, plugging round-tripping of funds
  • Prime Minister Narendra Modi launched a mobile app for the Unified Payment Interface (UPI) across different banks and financial institutions, called BHIM (Bharat Interface for Mobile).

 

Source: The Economic Times
Image

Demonetization of Currency, Donalds Trumps, Sensex slides 699 points- Weekly Digest #22

Monday- 7th November 2016

  • Private equity firm, Warburg Pincus, has invested $75 million transport logistics provider Rivigo Services for a minority stake.
  • ICICI Bank reported an insignificant 2.4% rise in its Q2 profit, at ₹3,102 crores, up from previous year’s ₹3,030 crores. A surge in corporate bad loans nullified the gains from the sale of stake in its insurance venture.
  • PNB Housing Finance made a decent debut in the market, with the share price closing at 15% premium at ₹890.60 in comparison to issue price of ₹775. It touched the intraday high of ₹902.95

 

Tuesday-8th November 2016

  • In the biggest step to curb black money, PM Narendra Modi announced demonetization scheme, where old ₹500 and ₹1,000 currency ceased to be legal tenders and replaced by new ₹500 and ₹2,000 currency.
  • Two American mutual funds, Valic and Fidelity have marked down the value of their investments in Flipkart, to $95.84 per share and $81.55 per share respectively. This comes at the time when Flipkart is seeking fresh round of funding.
  • IndiGo’s parent InterGlobe Aviation reported a a 24% rise in its Q2 profits at ₹139.85 crores. This has been attributed mainly to higher passenger revenues.
  • Varun Bev made a tepid debut in the market, with the share listing at 3.4% discount at ₹430 against issue price of ₹445. However, it closed at ₹461.9.
  • National Pharmaceutical Pricing Authority (NPPA) is seeking to recover over ₹1,000 crores from drug makers for allegedly overcharging patients.

 

Wednesday- 9th November 2016

  • Donald Trump won the 2016 US presidential elections to become the 45th president of the United states of America. He defeated the rival party’s Hillary Clinton by 279-228 to win the elections.
  • The healthcare index at the BSE, surged to 15472, up 1.48% following US presidential election results. Shares of Sun Pharma, Dr Reddy’s, Natco and Lupin, among others, posted a sharp rise at the end of day’s trading.
  • Shares of jewellery and luxury goods companies shed up to 17% in intrada trade following the demonetization of ₹500 and ₹1,000 currency. This sector previously relied heavily on cash transactions, thus crashing their stock.
  • Following the news of Trump victory, Indian Indices shed up to 6% due to initial panic selling. However, it recovered to end at just 1.3% below at the close of the day.
  • Gold prices shot up as high as 5% in intraday trade but closed around 2% higher. This has been due to demonetization of currency, as people are looking to spend this old currency for the purchase of securities.

 

Thursday- 10th November 2016

  • The stock market recovered from Donald Trump victory and demonetization. The Sensex rose 1% to 27,517.68, while the Nifty rose 1.1% to end at 8,525.75.
  • SBI is in talks with global sovereign wealth funds and strategic investors to sell up to 5% stake in SBI Life. It is a life insurance joint venture with BNP Paribas Cardiff. It is currently valued at ₹37,000-40,000 crores.
  • Passenger vehicle sales in the domestic market rose 4.48% in October, slower than the month before with manufacturers resorting to inventory correction after pushing stocks in the previous month ahead of the peak of the festive season.
  • Tata Chemicals reported a small increase in Q2 profits at ₹293.04 crores, up from previous year’s ₹292.80 crores. This has been attributed to lower fertiliser sale.
  • Bank Nifty index jumped 3.5%, its highest single-day gain in eight months. This comes as the government’s move to demonetise select notes would help them access a cheap source of funds. The PSU Bank index shot up 8.7%.

 

Friday- 11th November 2016

  • Majority board members of Tata sons, including 3 independent directors opposed the move for a unanimous decision to support Mistry, as in the case of Indian Hotels and Tata Chemicals. Thus the motion was not adopted, giving Tata sons a crucial victory over its former chief.
  • India’s largest direct-to-home (DTH) player Dish TV , and NASDAQ-listed Videocon d2h (Vd2h) have decided to merge operations to form the single largest pay-TV operator in the world.Dish TV shareholders will own 55.4%, while the remaining 44.6% shares will be owned by Vd2h shareholders in the new entity.
  • SBI quarterly earning plunged by 35% for the second quarter to ₹2,538 crores from previous year’s ₹3,879 crores. This has been attributed to bad loans and weak interest income.
  • Mahindra & Mahindra saw a 28.8% jump in profit after tax for Q2 to ₹1,253 crores from last year’s ₹973 crore. This has been due to strong tractor business and higher dividend income.
  • The Sensex fell nearly 700 points to 26818.82, its lowest closing since June 29, while the Nifty slid over 229 points to 8296.30 due to the selloff in Asian shares and currencies.

 

Source: The Economic Times

Image