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23
March 2018
 |
Weekly Indices (The Total
Investment & Insurance Solutions)
I had
mentioned in last Friday’s closing report that Nifty, Sensex were in a downward
spiral. The major indices of the Indian stock markets were volatile during the
week’s trading and closed with weekly losses 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:
On
Monday, the major indices of the Indian stock markets suffered a further
correction (after last Friday) and closed with losses over Friday’s close. On
the NSE, there were 276 advances, 1,472 declines and 287 unchanged.
Key
Indian equity indices on Monday were under consistent selling pressure as
metals, banking and oil and gas stocks fell. According to market observers,
negative Asian cues on the prospect of global trade wars, along with the
country's widening fiscal deficit and caution ahead of the US Federal Reserve's
meet on March 20-21, dented investors' risk-taking appetite. BSE Sensex and
Nifty traded in negative territory for the fourth straight session, as the
trade deficit widens sharply due to higher imports, said market analysts.
Securities
market regulator Sebi has fined media organisation NDTV, and four individuals
for lapses in mandatory disclosure. According to a Sebi order dated March 16,
NDTV has been fined Rs10 lakh. Besides the firm, the regulator has fined --
Prannoy Roy, Radhika Roy, Vikramaditya Chandra and Anoop Singh Juneja -- Rs3
lakh each.
The
major indices of the Indian stock markets made a minor rally on Tuesday after a
morning dip and closed with small gains over Monday’s close. On the NSE, there
were 684 advances, 1,036 declines and 303 unchanged. Buying was observed in IT
(information technology), Teck (technology, media and entertainment) and auto
stocks.
On
Tuesday, UltraTech Cement said it has concluded a commercial understanding with
Binani Industries to buy over 98% stake in its cement manufacturing subsidiary
Binani Cement Ltd (BCL) which is facing insolvency proceedings. UltraTech,
which was one of the resolution-plan applicants in the insolvency proceedings
of BCL, agreed to issue a "comfort letter" to the debt-ridden cement
manufacturer, confirming that it will provide funds amounting to Rs7,266 crore
to acquire the firm. "The company has in-principle concluded commercial
understanding with BIL (Binani Industries Ltd) for purchase of 98.43% of the
shareholding of BCL subject to termination of IBC proceedings, entering into
definitive agreement and other customary and regulatory approvals, a the
company said in a regulatory filing.
The
initial public offer (IPO) of Bandhan Bank has been oversubscribed 14.63 times
on the closing day of bidding on Monday. The Rs4,473 crore IPO received bids
for over 122.16 crore equity shares against the offer size of over 8.34 crore
shares. The reserved portion of qualified institutional buyers (QIBs) has
oversubscribed 38.67 times while the portion for non-institutional investors
witnessed subscription of 13.89 times and retail 1.20 times. The Kolkata-based
lender planned at raising upto Rs4,473 crore at the higher price band of Rs375
per share. Of the total size, it allocated over 3.57 crore equity shares at a
price of Rs375 a piece aggregating to Rs1,341.91 crore to 65 anchor investors.
The bank will not receive any proceeds from the offer for sale.
The
major indices of the Indian stock markets were range-bound on Wednesday and
closed with small gains over Tuesday’s close. On the NSE, there were 706
advances, 760 declines and 80 unchanged. Global cues and value buying pushed the
Indian equity markets higher on Wednesday. According to market observers,
buying was witnessed in capital goods, banking and oil and gas stocks.
Automobile
manufacturers have announced that they will hike vehicle prices, effective
April 1, 2018 due to rising input costs.
The
Supreme Court on Wednesday directed the Jaypee Associates to deposit Rs200
crore as a part payment of the amount required to pay the principal amount to
2,800 home buyers seeking refund. A bench of Chief Justice Dipak Misra, Justice
A.M. Khanwilkar and Justice D.Y. Chandrachud said that Rs100 crore would be
deposited by April 15 and the remaining Rs100 crore by May 10.
The
major indices of the Indian stock markets were range-bound on Thursday and
closed with small losses over Wednesday’s close. On the NSE, there were 309
advances, 1,149 declines and 29 unchanged. The indices had opened on a higher
note following the US Federal Reserve's raising the benchmark interest rate by
25 basis points, signalling two more rate hikes in 2018. ICICI Bank, Mahindra
and Mahindra, State Bank of India, Wipro and Yes Bank were the top losers on
the BSE. Market analysts pointed out that continued foreign institutional
investors' fund inflows will support local equities to trade higher.
The
CBI (Central Bureau of Investigation) on Thursday said that it was questioning
the directors of Kanishk Gold Pvt. Ltd. (KGPL) in connection with its ongoing
probe into the alleged defrauding a consortium of 14 banks led by the SBI to
the tune of Rs824 crore.
The
central government allowed defence communication major ITI Limited to go in for
a "prospectus based" Further Public Offer (FPO) to raise working
capital and to reduce its debt obligations. The development follows Cabinet
Committee on Economic Affairs' approval for a Department of Telecommunication's
proposal to allow ITI Limited to go in for the FPO. Besides, the CCEA's move
will allow ITI Limited to meet Sebi's requirement of minimum 25% public
shareholding. According to the CCEA, the FPO will provide "the much needed
working capital to the company and help it to timely execute the orders that it
has in hand and improve its margins". "This, in turn, will help in
protecting the current employment and generating more job opportunities in the
company particularly in the field of new telecom technologies," the CCEA
said in a statement. As on December 31, 2017, the issued and subscribed equity
capital of the company stood at Rs760 crore (76 crore of equity shares of face
value of Rs10 each) out which 92.59% equity is held by the central government.
The company is a listed schedule "A" CPSE, under the administrative
control of Ministry of Communications, epartment of Telecommunication.
On
Friday, a global sell-off following escalating fears of trade war spooked
domestic investors and pulled the Nifty50 of the National Stock Exchange (NSE)
below the 10,000-level, while the BSE Sensex tumbled over 500 points.
According
to market observers, selling pressure was observed across all sectors led by
banking, metals, automobile, capital goods and healthcare stocks.
Index
heavyweights like Tata Steel, Axis Bank, Yes Bank, State Bank of India and
Bajaj Auto were amongst the top losers on the BSE during the mid-afternoon
trade session.
With
global interest rates hardening and trade skirmishes increasing, major stock
market indices are likely to be under pressure.The Total Investment & Insurance Solutions
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