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29 June 2018
I had mentioned in last Friday’s closing report that Nifty, Sensex were
trendless. The major indices of the Indian stock markets closed with weekly
losses over last Friday’s close. The trends of the major indices in the course
of the week are given in the table below:The Total Investment & Insurance Solutions
The
major indices of the Indian stock markets suffered a correction on Monday and
closed with losses over Friday’s close. Decline in international markets and
rising global trade tensions subdued the key Indian equity indices on Monday.
According to analysts, selling pressure was witnessed in the auto, oil and gas
and banking stocks. On the NSE, there were 485 advances, 1,252 declines and 339
unchanged.The
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Senior
officials of 11 public sector banks (PSBs) will appear before the Parliamentary
Standing Committee on Finance on Tuesday on the issue of the banks' massive
non-performing assets (NPAs), or bad loans, and increasing number of fraud
cases. The committee, headed by Congress leader M Veerappa Moily, is preparing
a report on the "Banking Sector in India - Issues, Challenges and the Way
Forward, including Non-Performing Assets/Stressed Assets in Banks/Financial
Institutions".The
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IndiGo
said its Chief Commercial Officer Sanjay Kumar is leaving the airline and would
be replaced by William Boulter. IndiGo's Interim CEO Rahul Bhatia said Kumar's
contribution has been very significant "in getting us to the level we are
today". Kumar, who has been associated with the no-frills carrier for the
last 12 years, has put in his papers to pursue other career interests, IndiGo
said in a release. His resignation would be effective from July 15. Boulter,
currently the airline's Chief Strategy Officer, would be taking over from
him.
The
key Indian equity indices traded in the green on Tuesday as they pared the
losses made in the early morning trade. The indices had opened on a
flat-to-negative note due to decline in the global markets and the ongoing
trade war concerns. FMCG (fast moving consumer goods) and IT (information
technology) stocks witnessed buying activity. At the close of trading, the
major indices failed to sustain their gains and closed on a flat-to-positive
note. The indices were tracking mixed global markets. On the NSE, there were
517 advances, 1,196 and 349 unchanged.The Total Investment & Insurance Solutions
Even
as most global rating agencies have kept India's growth forecast between 7.3%
and 7.4%, NITI Aayog Vice Chairman Rajiv Kumar has said the economy would grow
at least 7.5% in the current fiscal and may even go as high as 7.8%. This is
good news for the long term bullish trend in the Indian stock markets.
Fitch
Ratings on Tuesday affirmed India-based Bharti Airtel's Long-Term
Foreign-Currency Issuer Default Rating (IDR) and senior unsecured rating at
'BBB-' with the outlook on the IDR as stable. "The stable outlook reflects
our belief that revenue from Bharti's Indian mobile segment may recover on higher
data volume and its African and enterprise business segments will continue to
expand. We believe India's tariff levels are unsustainable in the medium- to
long-term in light of the low return on investment for telcos. In addition,
Bharti is committed to an investment-grade rating and may explore stake sales
in non-core assets to support its balance sheet," Fitch said.
Fugitive
tycoon Vijay Mallya has sought the Karnataka High Court's permission to let him
and his holding firm UBHL sell their assets under judicial supervision and
repay creditors, including state-run banks. "UBHL (United Breweries
Holding Ltd) and myself have filed an application before the Karnataka High
Court on June 22, setting out available assets of about Rs13,900 crore," said
Mallya in a letter released here on Tuesday.The Total Investment & Insurance
Solutions
The
major indices of the Indian stock markets suffered a correction on Wednesday
and closed with losses over Tuesday’s close. On the NSE, there were 273
advances, 1,490 declines and 300 unchanged. Negative global cues, including
rise in crude oil prices and escalating trade war concerns, pulled the key
Indian equity indices deep into the red on Wednesday. Major global indices
traded in the negative territory during the day. In the domestic market,
analysts said, oil and gas, capital goods, auto and banking stocks witnessed
selling pressure.
State-run
lender Allahabad Bank is looking at a recovery of around Rs5,500 crore in the
current fiscal, an official said on Wednesday. The bank has submitted a roadmap
to the Centre and if everything goes "well and smooth" as per its
projections, it was likely to come out of prompt corrective action (PCA),
imposed by the Reserve Bank of India (RBI), by March 2020, the official said.
"We are expecting Rs3,000 crore recovery through resolution in NCLT
(National Company Law Tribunal) in the entire financial year, another Rs2,000
crore through normal recovery process and Rs400-500 crore through asset
sales," Allahabad Bank Executive Director N.K. Sahoo said. "We have
recently recovered around Rs1,300 crore from the resolution of Bhushan Steel
and Electrosteel Steels," he added. The bank has an outstanding exposure
of Rs4,000 crore in several accounts referred to NCLT including Uttam Galva,
Alok Industries, Essar Steel, he said, adding that it was hopeful of recovering
from these accounts in the current fiscal. The bank may have to take a hair-cut
upto 50%-60% in these accounts, he added.
Cigarette-to-FMCG
(fast moving consumer goods) major ITC Ltd said it would seek shareholders'
approval to re-appoint its non-executive chairman YC Deveshwar for another two
years from 2020 to 2022, given the increasing size and complexity of the
diversified conglomerate. "...given the increasing size and complexity of
the organisation, the Committee and the Board are of the view that it would be
in the best interest of the Company for Y.C. Deveshwar to continue in his
capacity as Chairman for some more time," said notice for its 107th Annual
General Meeting to be held here next month.
The
major indices of the Indian stock markets suffered a correction on Thursday.
Globally, investor sentiments were weighed down in the ongoing trade war
concerns among major economies. In the domestic indices, selling pressure was
witnessed on consumer durables, banking and capital goods stocks. On the NSE,
there were 463 advances, 1,270 declines and 329 unchanged.
The
Indian rupee touched an all-time low and breached the 69 per dollar mark on
Thursday due to high crude oil prices and weak macro-economic fundamentals.
Public
sector Indian Bank on Thursday said the Board of Directors have decided to
annul their earlier decision to declare dividend at Rs6 per equity share as it
has not provided fully for the mark-to-market (MTM) loss. Indian Bank shares
closed at Rs346.60, down 0.19% on the NSE.
State-run
lender UCO Bank, which is aspiring to be back in profit, is aiming at recovery
of bad loans of around Rs4,000 crore during the current fiscal, its MD and CEO
R.K. Takkar said. The Kolkata-headquartered lender is hopeful of making net
profit and coming out of the Prompt Corrective Action (PCA) framework of the
Reserve Bank of India (RBI) in the next two years, he said. "We are
looking at various avenues -- main is recovery. Our PCR (Provisioning Coverage
Ratio) is quite healthy at more than 60%. So, once NCLT resolutions happen,
either through OTS (one-time settlement) or normal recovery channels, it will
help us not only reducing our NPAs but also writing back the provisions and
booking some profit, depending on how much haircut we will have to take,"
he said. The lender has exposures to nine of the 12 large stressed accounts,
identified by the Reserve Bank of India to get resolved under the Insolvency
and Bankruptcy Code (IBC). The bank's overall exposure to these nine accounts
was around Rs4,300 crore. The RBI had initiated a PCA against the bank in May
last year in view of high non-performing assets and negative return on assets.
Its gross non-performing assets, in absolute term, went up to Rs30,549.92 crore
as on March 31, 2018, over 35% year-on-year jump from Rs22,540.95 crore in the
year-ago. As provisioning for stressed assets increased, during the last
fiscal, it incurred a net loss of Rs4,436 crore compared to Rs1,851 crore for
the previous fiscal.The
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Breaking
the two-day losing streak, the key Indian equity indices closed with
substantial gains on Friday. Both the BSE Sensex and NSE Nifty50 ended one per
cent higher from their previous closing levels. The indices rose due to value
buying along with broadly positive global cues, according to market observers.
In the domestic market, they said, healthy buying activity was witnessed in
consumer durables, capital goods and oil and gas stocks.
The
Board of Directors of ICICI Bank has approved the appointment of Girish Chandra
Chaturvedi as non-executive part-time Chairman effective from July 1, 2018
subject to regulatory approvals, in the vacancy caused by cessation of term of
M.K. Sharma (Independent Director & Chairman). ICICI Bank shares closed at
Rs274.70, up 1.22% on the NSE.The
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Fortis
Healthcare (FHL) has extended the deadline for submission of binding bids to
July 3. According to a BSE filing made late on Thursday night: "the date
for submission of the Binding Bids... of the Transaction Process Letter dated
May 29, 2018, stands revised to Tuesday, the July 3, 2018." On June 1, FHL
had said that it will consider the bids of four suitors -- Hero Enterprise
Investment Office and Burman Family Office, IHH Healthcare Berhand, Radiant
Life Care and TPG Asia and Manipal Health Enterprises -- in the new transaction
process. The earlier date of bid submission was June 28. Fortis Healthcare
shares closed at Rs134.85, down 0.07% on the NSE.The Total Investment & Insurance Solutions
Major Indices (The Total
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