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21
November 2017
I had
mentioned in Monday’s closing report that Nifty, Sensex were in an uptrend. The
major indices of the Indian stock markets were range-bound on Tuesday and
closed with gains over Monday’s close. The trends of the major indices in the
course of Tuesday’s trading are given in the table below:
 |
Major Indices (The Total
Investment & Insurance Solutions)
Positive
Asian markets, coupled with strong buying in stocks of healthcare majors like
Dr Reddy's Lab, Sun Pharma, Cipla and Lupin, propelled the key Indian equity
indices on Tuesday. According to market observers, the key indices discarded
the previous day's lacklustre performance to trade with substantial gains as
buying was witnessed in consumer durables, healthcare and oil and gas stocks.
Benchmark indices opened on a positive note following higher Asian stocks. The
dollar hovered near a one-week high against its peers on the back of higher US
yields and a struggling euro. On the NSE, there were 848 advances, 680 declines
and 61 unchanged.
The
Ministry of Road Transport and Highways on Saturday said global rating agency
Moody's upgraded the issuer ratings of National Highways Authority of India
(NHAI) to Baa2 from Baa3 in the beginning of October and revised outlook to
stable from positive. The ratings of National Thermal Power Corporation (NTPC),
National Hydroelectric Power Corporation (NHPC) and Gas Authority of Indian
Limited (GAIL) have also been upgraded, a Ministry of Road Transport and
Highways statement said.
According to Moody's, "the upgrade in
ratings for NTPC, NHPC, NHAI and GAIL follows the upgrade of the Indian
sovereign rating and reflects the strategic importance of these entities to the
country, as well as their close operational and financial links with the
government". "It was only about a month back on October 9 that
Moody's had assigned a first time Baa3 rating to NHAI. The upgrade to Baa2 has
come for NHAI in a very short time," the government statement said.
Meanwhile, the statement said, a report of the global rating agency
CRISIL, issued on Thursday, has also said that reforms by NHAI have resulted in
a steep decline in the percentage of high risk highways projects from 53% two
years back to 21% now.
The reforms that have made this possible include
quicker approvals, loan support for languishing projects, termination of stuck
projects and their subsequent re-awarding, and affording a change in sponsor,
it said. According to CRISIL about 80% of the operational portfolio
comprising nearly 100 Build-operate-transfer (BOT) projects are at low risk
today in terms of debt servicing. NHAI shares closed at Rs1,099.00, up 0.09% on
the NSE.
Reliance
Industries Ltd (RIL) said it has raised $800 million by selling 10-year bonds
in the first offering since Moody's last week raised India's sovereign rating
after 14 years. According to a Mukesh Ambani-led RIL release here, the bonds,
priced at 3.66%, were the lowest coupon ever achieved by an Indian corporate for
a 10-year issuance, the company. "The notes have been priced at 130 basis
points over the 10-year US Treasury Note, at a price of 100 to yield at
3.667%," it said. They "will bear fixed interest of 3.66 per cent per
annum, with interest payable semi-annually in arrears and shall rank pari passu
with all other unsecured and unsubordinated obligations of the company,"
it added.
RIL will use the proceeds to refinance existing debt. India's
largest company has a debt of around $12 billion (Rs75,000 crore) on its books,
a major portion of which will mature next year. "The company will use the
proceeds to redeem its existing $800 million 5.875 per cent senior perpetual
fixed rate unsecured notes pursuant to the terms of such notes," it said.
The notes were oversubscribed more than 1.6 times across 90 accounts. The
statement said this was the tightest ever spread over US Treasury for an Indian
entity for a 10-year issuance, as also the tightest ever spread over US
Treasury for a 10-year BBB corporate issuance from Asia minus Japan since the
global financial crisis. Issued against the backdrop of the upgrade of the
country ratings by Moody's, RIL successfully concluded a swift intra-day
execution to capitalise on the market window, according to Joint Chief Financial
Officer V Srikanth.
"This refinancing transaction was well received
by high-quality investors across asset managers, insurance companies, and banks
and helped us achieve substantial savings in interest cost over the life of the
notes," he said. With the RIL rated at par with the sovereign
rating, following the upgrade by Moody's of India's ranking, RIL too has been
assigned a 'Baa2' grade. Last week, US credit rating agency Moody
Investor Service upgraded India's sovereign ratings to 'Baa2' from its lowest
investment grade of 'Baa3' and changed the outlook for the country's rating to
'stable' from 'positive'. It said this was based on the Indian
government's "wide-ranging programme of economic and institutional
reforms". On the rationale for RIL's 'Baa2' rating, Moody's said that it
reflects the company's strong ability to generate operating cash flows, with
Ebidta, or operating income, exceeding $10 billion from its integrated refining
and petrochemical operations, as well from its new digital services business.
Reliance Industries shares closed at Rs932.40, up 1.47% 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:
 |
| Asian Indices (The Total Investment & Insurance Solutions) |
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