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7
June 2017
I had
mentioned in Tuesday’s closing report that Nifty, Sensex were still on an
uptrend. The major indices of the Indian stock markets were range-bound on
Wednesday and closed with small gains over Tuesday’s close. The trends of the
major indices in the course of Wednesday’s trading are given in the table
below: The Total Investment &
Insurance Solutions
 |
| Major Indices (The Total Investment & Insurance Solutions) |
The
Indian equity markets traded on a flat note during the mid-afternoon session on
Wednesday as investors were cautious ahead of the outcome of the Reserve Bank
of India's (RBI) Monetary Policy Committee (MPC) meet due later in the day.
However, a better-than-expected monsoon forecast by the India Meteorological
Department (IMD), coupled with healthy buying in healthcare, consumer durables
and automobile sectors, kept market sentiments buoyed. Auto, FMCG (fast moving
consumer goods) and healthcare stocks shone, whereas IT (information
technology) sector traded in negative after Tuesday's positive movement,
pointed out market analysts. On the NSE, there were 868 advances, 608 declines
and 76 unchanged. On the BSE, there were 1,465 advances, 1,191 declines and 147
unchanged.
The
Monetary Policy Committee (MPC) in its second review for FY2017-18 on Wednesday
kept all key policy rates unchanged while seeking to achieve consumer price
index (CPI) inflation of 4%. The repo rate under the liquidity adjustment
facility (LAF) will remain at 6.25%, while reverse repo rate will be at 6%. The
marginal standing facility (MSF) rate and the bank rate will be steady at to
6.50%. The major indices closed quietly at the end of trading on Wednesday with
small gains. The Total Investment & Insurance
Solutions
Rebranding
itself, air compressor major Elgi Equipments Ltd is looking at acquiring distributors
overseas to increase its market share at a fast pace and also set up assembly
lines abroad, a top company official said on Wednesday. Targeting to become
number two in the global compressor market by 2027, the company hopes to touch
a revenue of $1 billion in five years’ time from the current revenue of around
$230 million. "Our acquisitions will be in developed markets like the US
and Europe. We are looking at acquiring existing distributors in those
markets," Managing Director Jay Varadaraj told reporters. Agreeing that
the target was certainly a "Hanuman" jump from the current position,
Varadaraj said he was confident of achieving the target owing to the product's
technology. He claimed that Elgi's air compressors were more power-efficient
than competing products in the overseas markets. The company’s shares closed at
Rs205.10, down 1.47% on the BSE. The Total
Investment & Insurance Solutions
Reliance
Communications (RCOM) on Wednesday disagreed with rating actions by credit
rating agencies Moody's and Fitch. "In May 2015, RCOM issued 6.5% coupon
bearing USD bonds, maturing in November 2020, for an aggregate amount of USD
300 million. These bonds constitute 4% of the total debt of the company.
"The bonds have always been serviced regularly on the due dates and
are fully current in servicing, as on date. The company had stated, vide its
notice to Stock Exchanges dated 24 May 2017, that the company will continue to
pay interest on the respective due dates, and the bonds will be repaid on the
due date of November 6, 2020," an official statement by the company said.
"The ratings by Moody's and Fitch apply only to these USD bonds. We
respectfully disagree with the recent rating actions by both these agencies,
and believe that these rating actions do not reflect the servicing track record
of the company," it added. The statement said the rating agencies have not
given due credit to the advanced stage of the corporate transactions (Aircel
merger and Tower sale) which are expected to deleverage the company's balance
sheet by around $4 billion, that is, by 60% within the next few months.
"It appears that the recent positive development of the standstill period
agreed by our lenders has been viewed negatively by the Rating Agencies on
certain technical grounds, while in actual fact the same directly addresses
their key concerns about the short term liquidity situation," the company
said. The company’s shares closed at Rs19.35, down 3.73% on the BSE.
Thanks
to the Jio launch that attracted 100 million subscribers in its first six
months, India has reached 15th spot in the 4G availability globally, a survey
by London-based wireless coverage mapping company OpenSignal revealed on
Wednesday. According to OpenSignal's "State of LTE" report, India had
71.6% 4G availability in the third quarter of 2016 which jumped to 81.6% in the
first quarter of 2017. However, when it comes to 4G download speed, India
lagged. The 4G download speeds averaged 5.1 Mbps in the country, dropping more
than a megabit per second in just six months. "These 4G download speeds
are only marginally faster than the average global 3G download speed which is
at 4.4 Mbps," the findings showed. Availability levels of other operators
than Jio in the Indian market still hovered around 60%. Reliance Industries
shares closed at Rs1,339.20, up 1.96% on the BSE.
The
top gainers and top losers of the major indices are given in the table below:
 |
Top Gainer (The Total
Investment & Insurance Solutions)
The closing values of the major Asian indices
are given in the table below: The Total Investment & Insurance Solutions
 |
| Asian Indices (The Total Investment & Insurance Solutions) |
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