Sensex tumbles
Mumbai: The market recovery witnessed during the last two days could not be sustained as most equities turned weak and the Sensex of the Bombay Stock Exchange fell 122 points. Reliance Industries, in spite of a very promising Q3 show, and Tata Iron and Steel Company, incurred heavy losses. The Reliance stock was down by over Rs 6 to Rs 310.95, while Tata Steel came under heavy selling pressure. ACC also continued to suffer reverses.

Analysts said the setback was partly on account of net selling by foreign funds on 19 January although earlier indications were that the funds will continue to buy. In a market dominated by negative sentiments, infotech stocks provided rose. Aptech, Silverline Industries, Pentafour, Satyam, Sonata and Aftek Infosys, among others, recorded handsome gains. Sri Adhikari Brothers and Zee Telefilms also moved up.

The Sensex closed at 5,356 while the S&P CNX Nifty of the National Stock exchange had a net loss of 33.75 points to end the day at 1601.10.
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BSE identifies 100 cos for higher trade band
Mumbai: The Bombay Stock Exchange has finalised a list of 100 companies that will be allowed to trade within an additional price band on both the upper and lower side of four per cent after touching the current circuit breaker limit of eight per cent. The Securities and Exchange Board of India has allowed the stock exchanges to relax the price band by four per cent in select securities after a cooling period of half an hour after the stocks have hit the eight per cent band.

Sebi had asked BSE and the National Stock Exchange to jointly select the top 100 companies for this purpose. BSE officials said the list has been submitted to Sebi, which is expected to give its approval shortly.

The companies have been shortlisted on the basis of their turnover during he period October-December 1999. The top 20 companies in the list are Zee Telefilms, Reliance Industries, Satyam Computer, Pentafour Software, Himachal Futuristic Communications, Infosys Technologies, Silverline Industries, Ranbaxy Laboratories, Global Tele-systems, Tata Iron and Steel Company, Digital Equipment, Sterlite Industries, Larsen & Toubro, Dr Reddy’s Laboratories, HCL Infosys, ACC, MTNL, ITC, SSI, and NIIT.
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Sebi to review book-building norms
Mumbai: The Securities and Exchange Board of India will review the norms governing the book-building process and subsequent allotment of shares during public issues. It is reviewing the discretion enjoyed by merchant bankers during the process. Sebi feels that, from the feedback it has received during some recent book-building exercises, there is an "unfettered" discretion available to merchant bankers managing the book-building process. The merchant bankers, who attended a recent meeting with Sebi in this regard, are of the view that the norms should not be changed.
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CMC issue plan shelved
New Delhi: Public sector software company CMC has deferred its plan for an equity issue. It has also called off an extraordinary general meeting on 20 January as the government, which holds 83.33 per cent equity in the company, is understood to be considering divesting a part of its holding, and offering it to strategic investors. The EGM was convened to ratify the move to reduce the government’s holding from the present level to 51 per cent by issuing fresh equity. CMC has an equity base of Rs 15 crore.
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IOB’s IPO in March
Chennai: The Indian Overseas Bank has firmed up its proposal to enter the market. It is coming out with a Rs 111.2 crore at par initial public offer in March 2000. The paid-up capital of the bank will rise from the current Rs 334 crore to Rs 445 crore, resulting in a reduction in the government’s holding in the bank.
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Cinevista IPO
Chennai: Television software producer Cinevista Communications is making an initial public offering of 25,33,550 equity shares with a face value of Rs 10 each. Sunil Mehta, managing director of the company, said part of the issue will be made through the book-building route. The funds from the issue will be used to set up a web-casting service for broadcasting content generated in-house and from outside. The company is also planning to set up overseas production units.
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Satyam Infoway gets nod for ADR
Mumbai: The government has allowed Satyam Infoway to go ahead with its proposed secondary American depository receipt issue for $115 million. The company is yet to decide on the date and price of the secondary issue.
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RBI relaxes GDR/ADR issue rules
Mumbai: The Reserve Bank of India has given general permission to companies making an international offering of rupee-denominated equities via American depository receipt issue or global depository receipts. The RBI said in a statement that it has waived the requirement of prior permission for such issues under the Foreign Exchange Regulations Act. The government had earlier relaxed the rules in regard to seeking prior permission from the ministry of finance for making ADR/GDR issues, subject to the RBI’s approval under FERA.
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Sell and Cash product from SHCIL
Pune: The Stock Holding Corporation of India has developed a product, Sell and Cash, which will help individual investors sell their equity shares quickly and realise returns. The product will be launched in February 2000. The corporation intends to allocate Rs 100 crore for the full development of the product. The product will ensure that the entire transaction of selling the stock and paying the cash to the seller is completed in one hour.
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