Companies and Markets

Companies & Markets

Capital First deal brings strategic positives for IDFC Bank

The proposed merger of IDFC Bank and Capital First is synergistic given the complementarity of product suites. While the share swap ratio (139 shares of IDFC Bank for every 10 shares of Capital First based on valuations as on January 12), implies a 12 per cent premium in favour of Capital First over its current valuation, the deal brings in more strategic positives for IDFC Bank.

Resistance seen at 10,750-10,780 level

The market started the week on a firm note, with key indices hitting fresh record highs. The Sensex rose 251.12 points, or 0.73 per cent, to close at 34,843.51 while the Nifty-50 gained 60.30 points, or 0.56 per cent to end at 10,741.55. However, mid-cap and small-cap segments weakened, with the BSE Mid-Cap Index ending marginally lower. Among the sectoral indices, the BSE Bankex  was up 1.25 per cent, followed by Consumer Durables, up 1.13 per cent.

AI to be split into 4 units; at least 51% in each up for sale

A few days after clearing the decks for foreign airlines to pick up 49 per cent in Air India, the government has proposed splitting the national carrier into four parts and bid them out separately, offering at least 51 per cent stake in each of the them to private investors. Junior aviation minister Jayant Sinha on Monday said the core airline business comprising Air India and its low-cost subsidiary Air India Express would be offered as one company while its regional arm, ground handling, and engineering operations be sold separately in the same process.

Infosys Q3 profit up 38%

Infosys on Friday posted over 38 per cent jump in third quarter net profit after it got a one-time tax benefit from US operations.

Market to look for cues from IIP, inflation data

The market closed with marginal gains after a range bound trading session. The S&P BSE Sensex rose 70.42 points to settle at 34,503.49, while Nifty 50 index rose 19 points to end at 10,651.20, both the indices hit their record closing highs. Buying was seen in mid and small cap segment with the S&P BSE Mid-Cap index ended 0.27 per cent higher, while the S&P BSE Small-Cap index gained 0.41 per cent. 

Technical Outlook

TCS reports 3.6% decline in Dec quarter net profit

India’s largest software exporter TCS on Thursday said its net profit slipped 3.6 per cent to Rs 6,531 crore in three months to December due to margin compression and softness in the banking and financial services sector, which is its largest revenue segment.

Bond losses to impact Q3 of public sector banks

Lower treasury gains and losses due to falling bond prices and elevated provisioning on the back of ageing of bad loans and on cases referred to National Company Law Tribunal (NCLT) will continue to weigh on the profitability of public sector banks (PSBs) for the third quarter.

IT stocks in focus

Investors turned little nervous ahead of earnings season with the market ending on a flat note. The S&P BSE Sensex fell 10.12 points or 0.03% to close at 34,433.07, while the Nifty 50 index shed 4.80 points or 0.05% to settle at 10,632.20. In fact, the Sensex had hit a record high in early trade. 

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