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June 2018
I had
mentioned in last week’s closing report that Nifty, Sensex might try to head
higher. The major indices of the Indian stock markets were volatile
during 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
The
major indices of the Indian stock markets rallied on Monday and closed with
gains over Friday’s close. On the NSE, there were 1,260 advances, 493 declines
and 311 unchanged. Buying was observed in capital goods, banking and oil and
gas stocks. The Total Investment &
Insurance Solutions
Ratings
agency ICRA downgraded the Airline major Jet Airways' credit rankings to junk
status on the back of a net loss reported for 2017-18. The airline's long term
rating assigned to "Long term Loans" and "Non-Convertible Debentures"
was revised to lCRA BB+ (negative outlook) from ICRA BBB- (negative outlook).
BB+ Rating is just below the investment grade rating of BBB-. It is considered
as highest junk rating. According to a BSE filing made on Monday, the company
said that ICRA has revised its short term rating to "ICRA A4+" from
"ICRA A3".
Tamil
Nadu Deputy Chief Minister O. Panneerselvam on Monday said here that the
government will take necessary steps to permanently shut down the copper
smelter plant of Vedanta Ltd, popularly known as Sterlite Copper.
National
Aluminium Company Ltd (NALCO) on Sunday said it is preparing a game-changing
business model that will bring an additional Rs935 crore net profit to the
company. The development of Utkal D and Utkal E coal mines at Angul is expected
to be completed by 2019-20 and 2022-23 respectively. During the 2017-18
financial year, the company achieved the highest net profit in the last 10
years of Rs1,342 crore against Rs669 crore in the previous year. In the fourth
quarter, the company has earned a net profit of Rs257.06 crore.
The
major indices of the Indian stock markets were up in the morning but suffered a
correction on Tuesday and closed with losses over Monday’s close. On the NSE,
there were 783 advances, 953 declines and 315 unchanged.
Weak
global cues and profit booking by investors depressed the key equity indices on
Tuesday. Selling pressure was witnessed in banking, consumer durables and
healthcare stocks. However, buying in the capital goods, auto and oil and gas
stocks arrested further decline.
In a
second successive blow to Vedanta Ltd, the State Industries Promotion
Corporation of Tamil Nadu Ltd (SIPCOT) cancelled in "larger public
interest" the land allotted in Thoothukudi for the expansion of Sterlite
Copper's smelting plant. In its letter to Vedanta, the SIPCOT cited the public
protests against the plant's expansion on grounds of increased pollution and
expressed concerns over pollution caused by the first smelter plant. The
government agency said the price of 342.22 acres deposited will be refunded as
per the norms.
Energy
exploration and production major Oil India’s net profit during the quarter
under review rose to Rs866.50 crore from Rs19.31 crore reported for the
corresponding period of 2016-17. In terms of financial year, Oil India reported
a rise of 72.27% in its 2017-18 net profit, which increased to Rs2,667.93 crore
from Rs1,548.68 crore earned in the previous fiscal. "Crude Oil price
realisation increased by $8.36 per BBL to $55.72 per BBL in FY 2017-18 as
compared to $47.36 per BBL during FY 2016-17," Oil India said in a
statement. The company proposed a final dividend of Re1 per share for FY
2017-18 on post-bonus equity share capital. This was in addition to the
Interim Dividend of Rs14 per share paid earlier on pre-bonus equity share
capital.
The
major indices of the Indian stock markets were range-bound on Wednesday and
closed with small losses over Tuesday’s close. On the NSE, there were 743
advances, 983 declines and 324 unchanged.
Moody's
Investors Service report on Wednesday has cut India's GDP growth forecast to
7.3% in 2018, from previous forecast of 7.5% due to higher oil prices and
tighter financial conditions. "The Indian economy is in cyclical recovery
led by both investment and consumption. However, higher oil prices and tighter
financial conditions will weigh on the pace of acceleration. We expect GDP
growth of about 7.3% in 2018, down from our previous forecast of 7.5%,"
the report said. It, however, kept growth expectation for 2019 unchanged at
7.5%.
Mahindra
and Mahindra reported a rise of more than 70% in its standalone net profit for
the fourth quarter of 2017-18. According to the company, its standalone net
profit during the quarter under review increased to Rs1,059 crore from Rs622
crore reported for the corresponding period of 2016-17. In terms of the
financial year, M&M's net profit rose 19.57% in its standalone net profit
to Rs4,356 crore from Rs3,643 crore earned during the previous fiscal. The
Board of Directors recommended a post bonus dividend of Rs7.50 (150%) per share
of face value Rs5. The Total Investment
& Insurance Solutions
The
major indices of the Indian stock markets rallied on Thursday and closed with
gains over Wednesday’s close. On the NSE, there were 639 advances, 1,090
declines and 323 unchanged. The Total
Investment & Insurance Solutions
Predictions
of normal southwest monsoon rains and expectations of an improved gross
domestic product data due later in the day pushed the key Indian equity indices
higher on Thursday. According to market analysts, buying was witnessed in the
oil and gas and banking stocks.
ICICI
Bank's Board of Directors have decided to institute a "comprehensive
enquiry" to look into an anonymous whistle blower's complaint alleging
that Bank's MD and CEO Chanda Kochhar had not adhered to provisions relating to
"code of conduct" of the bank.
The Total Investment & Insurance Solutions
The
Enforcement Directorate (ED) attached a wind farm in Rajasthan valued Rs58.80
crore in connection with its ongoing probe in the multi-crore Punjab National
Bank (PNB) fraud involving diamantaire Nirav Modi.
Tech
giant IBM announced that its Artificial Intelligence (AI)-powered Enterprise
Marketing Cloud services will now be available from its local Cloud Data Centre
in India, thus allowing its customers in the country host their data locally.
On
Friday, the major indices of the Indian stock markets were range-bound and
closed with small losses over Thursday’s close. On the NSE, there were 431
advances, 1,309 declines and 312 unchanged.
Two and
three wheeler maker TVS Motor Company Ltd on Friday said it closed last month
with 10% sales growth. In a statement the company said it sold 309,865 units
last month, up from 282,007 units sold in May 2017. According to the company,
two-wheelers registered a growth of 8.2% with sales increasing from 275,426
units in May 2017 to 298,135 units in May 2018. The three-wheelers of the
company grew by 78.2%, an increase from 6,581 units in May 2017 to 11,730 units
registered in May 2018. The company’s shares closed at Rs597.45, up 1.72% on
the NSE. The
Total Investment & Insurance Solutions
The
Enforcement Directorate on Friday said it has attached properties worth Rs4,700
crore in a Rs5,000-crore bank fraud case involving Gujarat-based pharmaceutical
company Sterling Biotech. An ED official told IANS, the agency has attached
properties of the Sterling Biotech in Mumbai and Ahmedabad under the sections
of Prevention of Money laundering Act, (PMLA), 2002. The ED action comes after
the Central Bureau of Investigation's (CBI) FIR. The CBI has booked Sterling
Biotech, its directors Chetan Jayantilal Sandesara, Dipti Chetan Sandesara,
Rajbhushan Omprakash Dixit, Nitin Jayantilal Sandesara and Vilas Joshi,
Chartered Accountant Hemant Hathi, Anup Prakash Garg and some unidentified
persons in connection with the alleged bank fraud. Sterling Biotech had taken
loans of over Rs5,000 crore from a consortium of banks led by Andhra Bank which
had turned into non-performing assets. Total pending dues of the group
companies were Rs5,383 crore as on December 31, 2016, said the CBI FIR. The ED
said that during the probe, it found that "certain entries" in a
diary seized by the Income Tax Department in 2011 showed cash payments
amounting to Rs 1.52 crore made to one "Garg, Director, Andhra Bank"
between 2008 and 2009 by the Sandesara brothers. The company’s shares last
traded at Rs1.45 and trading has been suspended by the BSE for penal reasons.The Total Investment & Insurance
Solutions
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Weekly Indices (The Total
Investment & Insurance Solutions)
