Sensex, Nifty end flat but Midcap index underperforms; IDBI Bank dips 6%
26 June 2018
Market Closing: Benchmark indices ended flat after volatility, with the Sensex closing below 35,500 levels. TCS, HDFC, ITC and Infosys helped the market close higher while Reliance Industries and Tata Motors capped gains.
The 30-share BSE Sensex rose 19.69 points to 35,490.04 and the 50-share NSE Nifty gained 6.70 points to 10,769.20.
Nifty Midcap index slipped 35 points. More than two shares declined for every share rising on the BSE.
IDBI Bank, V-Guard, Adani Power, Syndicate Bank, Future Consumer, Future Retail, Future Lifestyle, Jaiprakash Associates, Gati, Delta Corp, Indiabulls Real Estate and Nalco slipped up to 7 percent.
United Spirits, Bata, Voltas, Tata Global, Jubilant Foodworks, Dabur India, IGL, Petronet LNG, Hexaware, NIIT Technologies, Tata Elxsi, Avanti Feeds and Info Edge gained up to 17 percent.
Sharda Cropchem approves fund raising: The company in its meeting held of June 25, approved the proposal of raising of funds by way of issuance of equity shares or equity linked securities such as warrants, convertible securities, GDR or ADR or FCC Bs including but not limited to through preferential issue and / or qualified institutions placement or through any other permissible mode up to Rs. 400 crore.
At 15:26 hrs Sharda Cropchem was quoting at Rs 366.00, down Rs 15.00, or 3.94 percent on the BSE.
Fundraising: Non-banking finance company Shriram Transport Finance Company proposed a public issue of Rs 5,000 crore by issuing 5,00,00,000 (five crore) secured redeemable non-convertible debentures (NCDs) of the face value of Rs 1,000 each.
The issue will open on June 27, 2018 and close on July 20, 2018, with an option of early closure, subject to the base issue size being fully subscribed prior to such early closure and/or extension.
The funds raised through this issue will be used for onward lending, financing, and for repayment/ prepayment of interest and principal of existing borrowings of the company and for general corporate purposes.
Market Update: The market is trading mildly higher amid volatility in the afternoon, tracking positive move in European stocks.
TCS, ITC, Infosys and HDFC twins are leading contributors to the Nifty's gains but selling in Reliance Industries, Tata Motors, ICICI Bank cap upside.
IDBI Bank fell over 6 percent. Government sources told CNBC-TV18 that the government is not keen to sell its stake in the bank to private banks.
Bhushan Steel in Focus: National Stock Exchange of India has approved the re-classification of erstwhile promoters of the company i.e. Neeraj Singal; Brij Bhushan Singal; Ritu Singal; Aishwarya Singal; Brij Bhushan Singal (HUF); and Bhushan Infrastructure Private Limited, collectively holding in aggregate 3.47 percent of paid-up share capital of the company.
Post re-classification, Bamnipal Steel Limited, a wholly owned subsidiary of Tata Steel Limited, is the sole promoter of the company holding 72.65 percent of the paid-up share capital of the company.
Oil & Gas Exploration: In a bid to make it easier for explorers to find and produce more oil and gas, the Government has allowed companies to go beyond their allocated block boundaries if a discovery were to extend outside their contracted area.
In a "Policy Framework for Streamlining the Operations, Relaxation of Timelines", the Oil Ministry yesterday delegated powers to head of its upstream regulatory body, DGH to prove excusable delays and excess cost recovery.
It allowed companies to carry out an appraisal of an oil and gas discovery beyond the boundaries of their allocated exploration area on the recommendation of block oversight panel, called the Management Committee.
Stake Buy: Pune-based real estate developer Kolte-Patil Developer said it would provide an exit to K2A Residential Ltd, acting through its investment manager IL&FS Investment Advisors LLC (IL&FS) who is holding 49 percent equity stake in its subsidiary, Kolte-Patil Real Estate Private Limited (KPRE).
The exit will be provided for a total consideration of Rs 57,5 crore which shall be paid over the next six months, which will be serviced largely through the internal accruals of the project.
Pursuant to the exit of K2A Residential Limited, KPRE will become a wholly owned subsidiary of Kolte-Patil Developers Limited, the company said.
Fundraising: Microfinance company Satin Creditcare Network has received a fresh disbursement of Rs 500 crore from NABARD in the form of refinance facility for tenure of 5 years.
The funds raised will be used for further growth in AUM of SCNL.
Commenting on the transaction, HP Singh, Chairman and Managing Director - SCNL, said, “Association with NABARD is helping SCNL to reduce the cost of borrowings and lending rates to the ultimate borrowers. Lower lending rates will accelerate the pace of our mission of financial inclusion.”
Market Update: The market continued to be rangebound ahead of expiry of June futures & options contracts later this week, and amid trade tensions between US and China.
The Sensex rose 41.51 points to 35,511.86 and the Nifty gained 10.50 points at 10,773 while the Nifty Midcap index fell third of a percent as about two shares declined for every share rising.
European stocks traded mostly higher, rebounding after trade concerns caused a sharp sell-off for global markets in the previous session.
TCS, HDFC, ITC, Infosys and L&T are supporting the markets while Reliance Industries, Tata Motors and ICICI Bank are under pressure.
Market Update: The market erased all its gain and trading flat in the afternoon trade with Sensex trading below 35,500 and Nifty hovering around 10,750.
Tata Motors, Tata Steel, Reliance Industries, ICICI Bank and Hero Motocorp are the top losers on the Sensex.
The Sensex up 9.73 points at 35,480.08, and the Nifty down 1.30 points at 10761.20. About 821 shares have advanced, 1569 shares declined, and 156 shares are unchanged.
Fortis board to meet on June 26: Fortis Healthcare, the beleaguered healthcare provider has once again postponed declaring Q4 and FY18 results by a day citing the need for “further deliberation.”
The company said the board will be reconvening on Tuesday to approve the accounts for FY18 and for the quarter ended March 31.
“The members of the Board deliberated upon the same and had a detailed discussion with the management, legal advisors and the statutory auditors,” Fortis said to stock exchanges.
“In view of the ongoing discussions on the annual accounts, which requires further deliberation, the Board decided to adjourn the meeting to be re-convened on June 26, 2018,” the healthcare provider said.
IPO Update: Auto component maker Varroc Engineering has raised Rs 584 crore from anchor investors as its initial share sale opens today for public subscription.
Nomura, Canadian pension fund CDPQ, Smallcap World Fund Inc, Nomura Fund Ireland Public Ltd, DSP BlackRock, ICICI Prudential Mutual Fund and SBI Mutual Fund are among the anchor investors, the company informed the stock exchanges.
The company's IPO committee has finalised allocation of over 60.36 lakh shares to 30 anchor investors at a price of Rs 967 apiece, also the upper price band of the offer.
At this price, the total proceeds would be around Rs 583.73 crore. Varroc Engineering's IPO is open for public subscriptions during June 26-28. At the upper end of the price band, the public issue will fetch Rs 1,955 crore.
Piramal Enterprises sells stake in subsidiary company: Piramal Enterprises' subsidiary has divested its entire stake in Piramal Imaging SA to UK's Alliance Medical Acquisitionco.
"On June 25, 2018, Piramal Holdings (Suisse) SA (a wholly-owned subsidiary of Piramal Enterprises) has entered into a definitive agreement thereby divesting its entire stake in Piramal Imaging SA (PISA), its subsidiary, to Alliance Medical Acquisitionco" Piramal Enterprises said in a BSE filing.
The company said, total consideration for this sale is base consideration of USD 1 plus USD 1,177,682 towards working capital adjustment on completion of the sale, plus deferred consideration which would be contingent on future profits over a period not exceeding 10 years from the date of completion of the transaction.
Buzzing: Shares of Oil India rose 1.5 percent as company made a Hydrocarbon discovery in KG Basin, Andhra Pradesh.
The company through its exploratory efforts has made its second Hydrocarbon discovery in the onland KG Basin NELP VI Block: KG-ONN-2004/1 in the month of May 2018 at well Thanelanka-l in Andhra Pradesh.
Earlier, a gas discovery was made at well Dangeru -lin Andhra Pradesh in the block.
Bonus Issue: Karur Vysya Bank board has approved the issue of bonus shares in the ratio of 1:10 i.e. one equity share of Rs. 2/- each for every ten fully paid up equity shares held as on a record date, subject to approval of the shareholders of the bank.
Record Date: City Union Bank has fixed July 11 as the record date for the purpose of reckoning the eligible shareholders entitled for bonus allotment subject to the approval of the shareholders through postal ballot/ remote e-voting process.
Market Update: The market recouped its losses to trade higher with the Nifty inching towards 10,800 levels amid consolidation, backed by HDFC, ITC and TCS. However, more than a percent correction in Reliance Industries and ICICI Bank capped upside.
The broader markets continue to underperform frontliners, trading lower on weak breadth. About three shares declined for every two shares rising.
The 30-share BSE Sensex gained 89.54 points at 35,559.89 and the 50-share NSE Nifty rose 26.80 points to 10,789.30.
NIIT in focus: Skills development firm NIIT announced its Talent Pipeline as a Service (TPaaS) offering, under which it will train one lakh people over the next three years in IT and banking and financial services sectors.
TPaaS is being launched to ensure reliable availability of specifically skilled talent to global organisations to match the pace of expansion in today's fast changing, uncertain business environment, NIIT Ltd CEO Sapnesh Lalla told PTI.
"NIIT will train around one lakh youth in three years for career opportunities in leading corporates in the IT and BFSI sectors through this initiative," he added.
Lalla explained that the IT sector is facing uncertainty of demand and would like to move to a "just-in-time" hiring model. There is also an increasing requirement of staff that is specifically skilled on digital technologies, he added.
The work profile in the BFSI sector is also changing where companies are looking at new skills sets.
Infosys clarification on a whistleblower complaint: Infosys has clarified that the company will file the form 20F within the stipulated time and has sufficient time to do so.
However, speculation that the Form 20F is not filed in time or there is an ongoing SEC investigation is baseless and incorrect.
At 11:20 hrs Infosys was quoting at Rs 1,275.35, up Rs 3.05, or 0.24 percent on the BSE.
Avanti Feeds surges 17% post share split, bonus issue: The company has fixed June 27 as the record date for the purpose of ex-bonus and ex-split.
The company has sub-divided its equity shares from face value of Rs 2 each to Re 1 each.
Also, the company issued bonus equity shares of Re 1 each in the ratio of 1:2, i.e. 1 equity share of Re 1 each for every 2 equity shares of Re 1 each (after sub-division of shares).
Order Win : Shares of Ratnamani Metals and Tubes rose 3.5 percent intraday on the back of order win worth Rs 125.51 crore.
The company has received a domestic order worth Rs 125.51 crore for supply of welded carbon steel pipes.
The said order will be completed by March/April, 2019.
Investment: Future Enterprises said Generali Group has signed an agreement with Future Group to increase its stake in its Insurance ventures in India to 49 percent from 25.5 percent, underscoring its commitment to growing its presence in the local insurance market.
Generali's presence in India is currently in the form of two joint ventures called Future Generali India Life Insurance Company Limited and Future Generali India Insurance Company Limited (non-life insurance).
"Through this transaction Generali has committed up to approximately 120 million euro to the partnership which will continue to leverage the far-reaching distribution network of Future Group, a unique platform and customer ecosystem to offer insurance protection solutions within India with a focus on digital," the company said.
The transaction is expected to close during the second half of 2018 subject to regulatory approval and customary closing conditions.
Market Update: The market continued to be rangebound as investors digested global correction and monitor trade developments between world's largest economies US and China.
Experts expect the volatility to increase ahead of expiry of June futures & options contracts on Thursday.
Nifty Midcap index underperformed frontliners, falling third of a percent.
The 30-share BSE Sensex rose 47.16 points to 35,517.51 and the 50-share NSE Nifty gained 13.30 points at 10,775.80. About two shares declined for every share rising on the BSE.
Buzzing: Voltas’ shares lost around 4 percent in the morning as investors reacted to reports of Tata Group looking to divest stake in the company.
According to CNBC-TV18, the Group is looking to sell up to 9 percent stake in the company and may look at an offer for sale (OFS) option for the same. The said divestment could take place in more than one tranche. Currently, Tata Sons is said to have 26.6 percent stake in Voltas.
The report further outlined tha the group could sell between 4-5 percent of Tata Sons’ stake in Voltas and could sell entire 0.58 percent stake of EWart Investments in the firm.
The capital raised through this sale could then be used for defence and aerospace investments. The move is also aimed at simplifying holding structure in group companies.
Buzzing: Shares of Tata Elxsi gained over percent in the morning trade and hit a fresh 52-week high on the BSE on reports that the firm is coming up with a prototype for driverless cars.
According to The Hindu BusinessLine, the firm could be first to come up with a driverless car prototype in the next 6-8 months.
The solution is likely to be implemented by one of the top five auto-makers, Nitin Pai, Senior Vice President told the newspaper.
Its program, Autonomai, “a fully autonomous middleware platform” has been licensed to one of the top five automakers. Currently, the automaker is believed to be testing it in Germany.
Order Win: Share price of JMC Projects rose 1 percent as company won an order worth Rs 1,966 crore.
JMC led consortium has secured two turnkey projects under Micro Lift Irrigation Scheme worth Rs 2,650 crore from Narmada Valley Development Authority (NVDA) in Madhya Pradesh.
The share of JMC in these projects is around Rs 1,600 crore.
The other order is for construction of township for National Mineral Development Corporation (NMDC) for approximately Rs 366 crore in Chhattisgarh.
Buzzing: Shares of Aurobindo Pharma added 2 percent as company received USFDA approval for Ertapenem injection.
The company has received final approval from the USFDA (US Food & Drug Administration) to manufacture and market Ertapenem injection 1 g/vial.
Ertapenem injection is a generic equivalent of Merck Sharp & Dohme Corp’s Invanz injection.
The product will be launched in July 2018.
Ertapenem injection is used for the treatment of moderate to severe infections caused by susceptible bacteria. Also indicated in adults for the prophylaxis of surgical site infection following elective colorectal surgery.
Market Update: The market continued to consolidate amid global weakness on trade tensions between world's largest economies US and China, and also ahead of expiry of June derivative contracts on Thursday.
The 30-share BSE Sensex rose 13.20 points to 35,483.55 and the 50-share NSE Nifty gained 3.50 points at 10,766.
Buzzing: ?Shares of PNB Housing Finance fell over 3.5 percent in the morning trade after the lender clarified that it was not aware of any talks to sell controlling stake to HDFC or Kotak Mahindra Bank.
"The company is not aware of any such negotiations. We would like to state that the company does not have any information on the news item published," the company said in an exchange notification.
The share had rallied on Monday, around 15 percent, on the back of media reports that the bank’s controlling stake was up for grabs. However, senior management at HDFC and now at PNB Housing Finance have clarified that no such talks are underway.
According to a report on The Economic Times, both the lenders were competing for a controlling stake in PNB Housing Finance in a bid to get better access to mortgage market.
The report further added, quoting sources, PNB and Carlyle were looking to sell their 66 percent stake to a large investor. The deal is expected to fetch them about Rs 6,000 crore each, the people said.
Varroc Engineering IPO: Brokerages advice subscribe, should you?
SMC says only high-risk investors should opt for the issue as it looks expensive and given the company's high dependence on its global business. Choice Broking also advises subscribing with caution due to its expensive valuation.
Market Opening: Benchmark indices started off the trade on a negative note, following global weakness due to trade tensions between world's largest economies US and China.
The 30-share BSE Sensex slipped 94.76 points to 35,375.59 and the 50-share NSE Nifty declined 29.00 points to 10,733.50.
Tata Motors, Vedanta, IOC, BPCL, HPCL, Cipla and Dr Reddy's Labs are early losers.
Aurobindo Pharma, Asian Paints, Axis Bank, ITC, Lupin, TCS and Indiabulls Housing gained.
Nifty Midcap index fell 55 points and Nifty Bank lost 95 points.
Voltas, Sun TV Network, PNB Housing Finance and KRBL fell up to 6 percent.
Info Edge and Jet Airways gained more than a percent.
Stocks in the news: Piramal Enterprises, Fortis, Bajaj Auto, Jet Airways, NHPC, Grasim, United Spirits
Here are stocks that are in news today: Piramal Enterprises to sell arm Piramal Imaging to Alliance Medical Acquisitionco Fortis Healthcare board meeting to consider Q4 results adjourned on June
Rupee Opening: The Indian rupee has opened lower at 68.13 against the dollar and fell further to 68.19, down 7 paise from previous settlement.
Market Pre-Opening: Benchmark indices are flat in pre-opening trade amid global weakness on ongoing trade tensions between US and China.
The Sensex rose 21.98 points to 35,492.33 while the Nifty fell 23.20 points to 10,739.30.
Pre-Market Update: The Nifty50 is likely to open lower on Tuesday following muted trend seen in other Asian markets. The Nifty closed 59 points lower at 10,762 on Monday.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 25.5 points or 0.24 percent. Nifty futures were trading around 10,735-level on the Singaporean Exchange.
An escalating trade dispute between the United States and other leading economies battered US stocks on Monday, handing the S&P 500 and Nasdaq their steepest losses in more than two months, said a Reuters report.
Global stocks extended a sell-off on Tuesday as mounting trade tensions between the United States and other major economies continued to steer investors away from riskier assets, lifting safe-haven US Treasuries and keeping the dollar on the defensive, it said.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent. Japan’s Nikkei lost 0.8 percent, South Korea’s KOSPI fell 0.55 percent and Australian stocks dropped 0.6 percent.
Oil prices rose on Tuesday on uncertainty over Libyan oil exports, although plans by producer cartel OPEC to raise output continued to drag. Brent crude.