Contact Your Financial Adviser Money Making MC
17
January 2019
I had
mentioned in Wednesday’s closing report that Nifty, Sensex had paused for
breath. The major indices of the Indian stock markets were range-bound on
Thursday and closed with small gains over Wednesday’s close. On the NSE, there
655 advances, 1,034 declines and 375 unchanged. The major trends of the Indian
stock markets on Thursday are given in the table below:
Amid
mixed global markets and the ongoing corporate earning session, Indian equities
ended mixed on Thursday. Ahead of the release of quarterly results by index
heavyweights, the Nifty ended above 10,900. According to market participants,
investors were cautious ahead of the third quarter results by Reliance
Industries and Hindustan Unilever, to be announced later in the day.
Oil
and gas and finance scrips led the gains on the Sensex. The index pivotal,
banking stocks erased early losses to end flat while the healthcare stocks
declined 0.90%. Stock-wise, Axis Bank, HCL, HDFC, TCS and Kotak Mahindra gained
in the range of 1% to 2%.
Sun
Pharma lost over 5% followed by Yes Bank which declined over 3%. State Bank of
India, Bajaj Finance, Hindustan Unilever declined between 1% to 2%. Globally,
markets traded on a mixed note amid political uncertainty in the UK over Brexit
and the longest-ever partial shutdown of the US government. However, British
Prime Minister Theresa May won a confidence vote in the House of Commons on
Wednesday, averting any immediate risk of an early general election.
The
State Bank of India (SBI) on Thursday said that lenders to the financially
stressed Jet Airways are in talks for a restructuring plan to ensure long term
viability of the airline. The state owned bank is part of the group of lenders
to the airline and its statement comes after the airline on Wednesday said that
a resolution plan to infuse capital and reduce debt was under active
consideration.
Fortis
Healthcare said that it has completed the acquisition of the entire portfolio
of RHT Health Trust's Indian assets worth approximately Rs4,666 crore.
"With the completion of the aforesaid, International Hospital Limited
(IHL), Fortis Health Management Limited (FHML), Escorts Heart and Super
Speciality Hospital Limited (EHSSHL), Hospitalia Eastern Private Limited (HEPL)
and Fortis Hospotel Limited (FHTL) have become wholly-owned subsidiaries
(direct or indirect) of the company," the company said in a statement.
"The subsidiary companies combined, own the entire portfolio of India
assets held by RHT - comprising 12 clinical establishments, 2 operating
hospitals, 1 clinical establishment under construction as well as 4 greenfield
clinical establishments." According to Fortis Healthcare, the transaction
is "beneficial and will be value accretive" for the company and its
shareholders as it would save significant clinical establishment fees. "As
a result, the aforesaid transaction is expected to result in significant
improvement in the company's operating profitability i.e. EBITDA and cash
flows," the statement said. Fortis Healthcare shares closed at Rs136.50,
down 1.02% of the NSE.
In
a surprise move, State Bank of India (SBI) put its entire loan exposure of
Rs15,431.44 crore in bankrupt Essar Steel on sale even though the prolonged
insolvency case had neared resolution last October. The bank, as per a notice
on its auction website, said it plans to sell the account to asset
reconstruction companies (ARCs), banks, non-banking financial companies (NBFCs)
or financial institutions (FIs). It has set the minimum reserve price for the
loan at Rs9,587.64 crore. The price is set on the basis of the net present
value (NPV) of the minimum recovery discounted at 18 per cent with a time factor
of one year. And, the minimum recovery to SBI as per the approved resolution
plan of ArcelorMittal subsidiary ArcelorMittal India Private Ltd (AMIPL) is
Rs11,313.42 crore. ArcelorMittal's proposal of Rs42,000 crore to the lenders
and additional Rs8,000 crore towards capital expenditure in Essar Steel was
approved by the Committee of Creditors (CoC) to Essar Steel on October 25,
2018. However, a group of creditors including the promoters of Essar Steel have
challenged the decision of the CoC. Earlier this month, the National Company
Law Appellate Tribunal (NCLAT) ordered its Ahmedabad bench to expedite the
resolution process. The CoC, led by SBI, has also filed an application at NCLAT
requesting for a speedier disposal of the case within the next three weeks.
Essar Steel was admitted for insolvency proceedings in August 2017 and the
resolution has taken more than 500 days instead of the mandatory 270 days. The
notice put out by the country's largest lender, however, has asked for a
claw-back option from the buyer if the amount is realised prior to one year.
State Bank of India shares closed at Rs297.40, down 1.90% on the NSE.
The
top gainers and top losers of the major indices are given in the table below:
The
closing values of the major Asian indices are given in the table below:
 |
Major Indices (The Total
Investment & Insurance Solutions)
No comments:
Post a Comment