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01
February 2019
I had mentioned in last week’s closing report
that Nifty, Sensex were looking weak. The major indices of the Indian stock
markets staged a small rally over the week and closed with gains on Friday 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:
Selling
pressure in banking, automobile, healthcare and consumer durables stocks pulled
the Indian equity market lower by around 1% on Monday. However, global cues
such as positive Asian markets aided in arresting the downward spiral.
Tata
Steel said its step-down subsidiary, T.S. Global Holdings Pte Ltd (TSGH), has
signed definitive agreements with China's HBIS Group to divest a majority stake
in its South East Asia (SEA) business. Tata Steel also said the consideration
received from such sale would be "$327 million and equity stake of 30% in
the entity held by HBIS Group and TSGH on 70-30 basis". The Chinese group
was established on June 30, 2008, by the merger of Tangshan Iron and Steel
Group and Handan Iron and Steel Group of Hebei province.
Larsen
and Toubro (L&T) on Friday reported a 33.8% increase in its standalone net
profit for the October-December quarter of the financial year 2018-19. Its
standalone net profit stood at Rs1,634.78 crore, up from Rs1,221.95 crore
reported during the third quarter of the last financial year, the company said
in a regulatory filing to the BSE. The company's total income during the period
under review was Rs23,229.98 crore, 27.9% higher than Rs18,164.29 crore earned
during the corresponding period of FY18.
Sensex
and Nifty traded lower following the Asian stocks on Tuesday. The financials,
IT (information technology) and metal sectors on the BSE were in the red while
the telecom and metal stocks gained. The laggards were Yes Bank, Reliance Industries,
Power Grid, Infosys and HDFC declining up to 2%.
State-owned
lender Bank of India's net loss widened during the quarter ended December 31,
2018 due to higher provisioning for non-performing assets (NPAs). According to
the state-run lender, its net loss in the three months through December 2018
widened to Rs4,738 crore from a net loss of Rs2,341 crore reported for the same
period of the last fiscal year. However, the lender's net interest income
increased by 33.23% to Rs3,332 crore in the quarter under review from Rs2,501
crore in Q3FY18. The bank made provision worth Rs9,179.48 crore for NPAs during
the quarter under review from Rs4,373.06 crore made during the previous
corresponding quarter of 2017-18.
Diversified
conglomerate Piramal Enterprises Ltd (PEL) reported a rise of 23% in its
consolidated net profit during the third quarter of 2018-19. According to the
company, its net profit during the quarter under review rose to Rs603 crore, up
from Rs490 crore reported for the corresponding quarter of the previous fiscal.
Besides, the total income shot up 23% from Rs2,922 crore in the
year-ago-quarter to Rs3,592 crore in the third quarter of this fiscal.
Sensex
gained on Wednesday, while the Nifty was marginally higher with gains made by
the financial stocks. FMCG (fast moving consumer goods), oil and gas and realty
stocks slipped in the red but the key finance and banking stocks gained.
Yes
Bank said its two promoter groups -- Madhu Kapur Group and Rana Kapoor Group --
have agreed to nominate one representative director each on the Bank's Board.
The bank, in a regulatory filing also said that it has sought the Reserve Bank
of India's approval to appoint a temporary MD and CEO from February 1, 2019,
till Ravneet Singh Gill takes over as the next full-time MD and CEO on March
1.
Drug
maker Strides Pharma Science Ltd said its Canadian subsidiary acquired 80%
equity stake in Canada-based generics frim Pharamapar for $3 million (Rs21
crore). "The acquisition will enable us to build our operations, as the
pharmaceutical market in Canada is estimated to be $21 billion with a major
share of generics through retail pharmacies," said the city-based Strides
in a statement here. The two-decade old $8-million Pharmapar specialises in
generic medication to insured individuals in Canada. It is also a leading
partner to Quebec pharmacies and covers about 1,000 pharmacies with access to
12 banners and 100 products. Quebec accounts for 25% of the Canadian generics
market and is private.
In a
related development, the company's board has approved sale of its Australian
business Strides Pharma Global to the Arrow-Apotex merged entity for Australian
dollar 394 million ($281 million or Rs20 crore). "We will enter into a
10-year preferred supply agreement with the merged entity to result in
potential annual Ebitda of Australian $15-20 million," said the company in
a release.
Sensex
and Nifty logged strong gains on Thursday amid a surge in global markets as the
US Federal Reserve decided to keep the interest rates unchanged. Shares of IT
(information technology) companies led the gains as BSE IT index rose close to
2%. Key sectors banking, finance as well as oil and gas stocks also surged over
1%. US Fed's decision to keep the interest rates unchanged is good for the
emerging markets. Investors are also upbeat owing to the Q3 results by large
caps, according to market analysts. Also, the short covering ahead of the
F&O expiry due later in the day gave a push to the markets.
Stocks
of Dewan Housing Finance Corp (DHFL) plunged further after reports emerged that
the Ministry of Corporate Affairs (MCA) may probe allegation of a Rs31,000
crore scam. Stock exchanges have also sought clarification from the company
over reports of the likely probe. Around 10.20 a.m., the share price of DHFL on
the National Stock Exchange slumped nearly 20% to touch an intra-day low of
Rs129.50. On Tuesday, the investigative media organisation Cobrapost alleged
that DHFL promoters routed around Rs31,000 crore through dubious companies and
parked it outside India to acquire assets. The company on Tuesday rejected the
allegations. DHFL said it had met all its obligations to its lenders by paying
them back over Rs17,000 crore in the last three months.
The
major indices of the Indian stock markets were volatile and closed higher on
Friday. Interim Budget announcements of higher tax exemption limit and key
measures for the rural economy and SME sector buoyed the Indian equity market
on Friday. However, Sensex and NSE Nifty50 ceded some of the day's gains as key
finance and banking stocks ended lower. Auto stocks gained over 2% while the
metal stocks lost 3%. Index-wise, the Sensex closed 212.74 points or 0.59%
higher at 36,469.43 points after hitting a high of 36,778.14, while the Nifty
ended the Budget day's trade at 10,893.65, up 62.70 points.
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| Weekly Indices (The Total
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