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29
December 2017
I had
mentioned in last Friday’s closing report that Nifty, Sensex were regaining
bullish mode. The major indices of the Indian stock markets were range-bound
through the week and closed on Friday with small weekly gains over last
Friday’s close. The trends of the major indices in the course of the week’s
trading are given in the table below: The Total Investment & Insurance Solutions
Weekly Indices (The Total
Investment & Insurance Solutions)
On
Monday, the Indian stock markets were closed for trading on account of
Christmas. The
Total Investment & Insurance Solutions
On
Tuesday, the major indices were range-bound and closed with small gains over
last Friday’s close. On the NSE, there were 882 advances, 632 declines and 49
unchanged. It was notable that the S & P BSE Sensex had an intra-day high
in Tuesday’s trading, which was above 34,000.
Shares
of Reliance Communications (RCOM) zoomed after Reliance Group's Chairman Anil
Ambani on Tuesday announced his plan to reduce the company's debt by Rs25,000
crore to Rs6,000 crore -- closing almost 30% higher at Rs21.33. Around 3.15
p.m., RCOM's stocks augmented by 36.05% to trade at Rs22.19 per share on the
BSE. At one point it had risen by over 41%. Addressing a press conference, Anil
Ambani said the company has achieved full resolution of RCOM's debt
restructuring. RCom had close to Rs45,000 crore debt on its books in October
2017, Ambani said. Ambani said that the company would close all the
transactions by January-March 2018. In a press conference, Ambani said the debt
would be recast by remonetisation with zero write-off to lenders and bankers.
Software
major Infosys Ltd announced that it had competed the buyback of 11.3 crore
equity shares of Rs5 face value at Rs1,150 per share for Rs13,000 crore.
"The post buyback public announcement is being made in compliance with
Regulation 19 (7) of the Securities and Exchange Board of India (Sebi)
Regulations, 1998," said the IT major in a regulatory filing on the BSE.
The company's maiden buyback of 11,30,43,478 equity shares was made under the
tender offer route from November 30 and closed on December 14. Among the retail
investors, who sold shares more than 1% of the total, were Rohan Murthy, the
son of co-founder N.R Narayana Murthy, with 13,92,682 and Sudha Gopalakrishnan
, wife of another co-founder Kris Gopalakrishnan, at 15,00,000. She held the
largest share among the promoters, with 2.14% shareholding.
On
Wednesday, the major indices of the Indian stock markets made new intra-day
highs and closed with small losses over Tuesday’s close. Positive Asian
indices, along with buying in healthcare stocks, lifted the key Indian equity
indices to trade at new high levels during the mid-morning session on
Wednesday. According to market observers, a surge in the stocks of healthcare
majors like Sun Pharma and Dr Reddy's Lab added to the upward rally of the key
equity indices. But the gains were not sustained and the major indices closed
with small losses by the end of trading. On the NSE, there were 573 advances,
951 declines and 24 unchanged.
The Total Investment & Insurance Solutions
On
Wednesday, RCOM continued to gain post the debt recast plan announced on
Tuesday. Pharma sector gained in line with some positive news for Sun Pharma
and Glenmark getting approvals from US Food and Drug Administration, pointed
out market analysts.
The Total Investment & Insurance Solutions
On
Thursday, the major indices of the Indian stock markets were range-bound and
closed with small losses over Wednesday’s close. Key Indian equity indices on
Thursday traded on a flat note during the mid-afternoon session as investors
remained cautious on the day of futures and options (F&O) expiry. Metals
and capital goods stocks traded with gains, while investors booked profits in
banking and auto sectors on the BSE market breadth. On the NSE, there were 894
advances, 795 declines and 309 unchanged.
State
Bank of India said it has received board approval for raising Rs8,000 crore to
meet Basel III capital adequacy norms through various instruments, including
masala bonds. The state-run lender said it has time till March 2018 to raise the
funds required to meet the Basel III capital adequacy norms put in place to
guard against a repeat of the situation following the 2008 US financial crisis.
"The Central Board at its meeting accorded approval to raise additional
tier 1 (AT 1) capital by way of issuance of Basel III compliant debt
instruments in USD and/or INR to the tune of Rs8,000 crore from
domestic/international market including masala bonds," the SBI said in a
stock exchange filing.
In
a move expected to coax banks to lower their deposit rates, the government
reduced the interest rates on small saving schemes, including National Savings
Certificates (NSCs), Public Provident Fund (PPF) and Kisan Vikas Patra (KVP),
by 0.2% for the fourth quarter of the fiscal (January-March). The PPF and NSCs
will earn 7.6% interest from January 1, 2018, while KVPs will earn even less
(7.3%), a Finance Ministry notification said on Thursday.
After
market hours on Thursday, Reliance Jio Infocomm (RJIL), a subsidiary of
Reliance Industries Limited, announced signing of a "definitive
agreement" for the acquisition of specified assets of Reliance
Communications (RCOM) and its affiliates. Consequent to the agreement, Jio or
its nominees will acquire assets under four categories -- towers, optic fibre
cable network, spectrum and media convergence nodes -- from RCOM and its
affiliates, Jio said in a statement. RCOM's assets which were put up for
monetisation include 122.4 MHz of 4G Spectrum in the 800/900/1800/2100 MHz
bands, over 43,000 towers, around 1.78 lakh km of fibre with pan-India
footprint and 248 media convergence nodes, covering five million sq ft used for
hosting telecom infrastructure. Reliance Industries shares closed at Rs921.05,
down 0.44% on the NSE, on Friday.
Key
Indian equity indices on Friday closed on a higher note with buying in auto,
consumer durables and IT (information technology) stocks. On the NSE, there
were 873 advances, 670 declines and 30 unchanged.
The
Lok Sabha on Friday passed a Bill that seeks to amend the Insolvency and
Bankruptcy Code (IBC) to plug potential loopholes and prohibit "certain
persons", such as wilful defaulters, from submitting resolution plans to
let them take charge of the company. The Insolvency and Bankruptcy Code
(Amendment) Bill, 2017 was passed after a reply by Finance Minister Arun
Jaitley. It will replace an ordinance promulgated earlier. The IBC, being
implemented by the Corporate Affairs Ministry, became operational in December
2016 and provides for a time-bound insolvency resolution process. The changes
proposed are expected to help streamline the process of selecting buyers for
stressed assets. These legislative reforms are expected to improve the banking
system and consequently help in a long term bullish trend in the stock markets.The Total Investment & Insurance Solutions
