Companies and Markets

Companies & Markets

Stock Taking: Climb getting steeper and tougher

The market continued its slow and steady move upwards last week. It gained on every single day and managed gains of one per cent for the week. The Sensex was up 336.44 points, or 1 per cent, to close at 33,679.24 points. The Nifty gained 106.10 points, or 1.02 per cent, to close at 10,389.70 points.

The climb is getting steeper and tougher, but it appears the lifetime high which is within striking distance now, is the target. When that would be achieved is a question mark, but it is just one day’s effort.

Jindal Stainless gets nod for Rs 1,000 crore industrial park in Odisha

In a shot in the arm for debt- ridden Jindal Stainless Group, the Odisha government has cleared a Rs 1,000-crore downstream stainless steel park proposed by the company at Kalinganagar in Jajpur district.

This will be first major investment by the company in years after it ran into trouble a few years back over mounting debt and falling revenues. Post-corporate debt restructuring, aided by a pick up in the steel market and the government’s policy support, the company has now turned around operations, reporting profits for four consecutive quarters.

FPI change of heart sees Rs 16K cr net flows into equities

The foreign portfolio investors have pumped in Rs 16,454 crore in equities so far in November, showing a change in their position towards Indian equities from being a net seller in August and September.

The trigger for higher inflows came largely from two factors. One, aggressive bidding in IPOs and, two, a change in India’s outlook after the World Bank ranked the country 100th on the ease of doing index from 130th Oct 31 and Moody upgraded sovereign rating to Baa2 from Baa3 on Nov 17.

Tyre makers see Northeast rising as rubber hub

Tyre manufacturers are looking at Northeastern states to fix the long-standing problem of demand-supply gap in quality rubber. As production gets a boost in the region, tyre makers have started procurement and setting up of processing centres there.

The Rubber Board decades ago had identified Northeast as a potential region to grow rubber but did not get desired results until recently. Small quantities of low quality rubber produced in the region were largely procured by non-tyre manufacturers.

FMCG, two-wheeler loans in focus for SBI

State Bank of India (SBI) is refurbishing its personal loan portfolio, as big corporate loan disbursal remains muted. The country’s largest lender is targeting a 14 per cent growth in retail loans in the overall expected credit expansion rate of 6 per cent this financial year.

“Retail has been a focus area and it is doing well. There has been a shift in the composition of loan book. Now, almost 55 per cent of the loan book is retail and going forward we expect this shift to continue,” Pravin Kumar Gupta, MD, retail and digital banking, SBI, told Financial Chronicle.

CMI reports Rs 6.14 crore net profit in Q2FY18

CMI Limited, the leading specialty cables company, has announced its second quarter results for 2017-2018. On a consolidated basis, the total income stood at Rs 134.95 crore in Q2 of 2017-18, up from Rs  103.71 crore of the same quarter last fiscal.

It reported a net profit of Rs 6.14 crore in Q2FY18, up from Rs 3.01 crore in the same quarter of last fiscal. EPS in the second quarter of FY18 is at Rs 4.07, up from Rs 2.12 in Q2FY17.

Cotton exports to shrink as boll worm affects crop

India would be left with lesser cotton surplus this time to export as the boll worm infestation may bring down production, despite higher acreage.

The Cotton Association of India had earlier estimated that cotton crop for the 2017-18 season would be 375 lakh bales of 170 kg each, which is 37.75 lakh bales higher than previous year’s crop of 337.25 lakh bales.

The estimate was made on the basis of increase in area under cotton cultivation to 122 lakh hectares against 105 lakh hectares last year.

Defaulters, firms with NPAs barred from bidding for assets under IBC

Willful defaulters and corporate entities, whose accounts have been marked as NPAs and senior executives holding management control in such firms, have been barred from bidding for assets under the insolvency law with the President giving his assent to an ordinance to amend the bankruptcy code.

The ordinance seeks to disqualify any unscrupulous or undesirable person from misusing or vitiating provisions of the Insolvency and Bankruptcy Code, 2016 (IBC).

M&A among oil & gas PSUs exempted from CCI approval

The government has exempted public sector oil & gas companies from seeking the Competition Commission of India’s approval for mergers and acquisitions, paving the way for Oil and Natural Gas Corporation (ONGC) to complete its proposed acquisition of the government’s entire 51.11 per cent stake in Hindustan Petroleum Corporation (HPCL).

The relaxation comes within months of the government clarifying that the HPCL deal would also not require ONGC to make an open offer for the remaining equity under the Securities and Exchange Board of India’s (Sebi’s) takeover code.

Bond yields move up as market rules out a repeat of OMO episode

The rally in Indian bonds seen after the central bank withdrew its tenth sale of securities under its open market operations (OMO) may be unsustainable as investors realised that the central bank’s move was linked with liquidity rather than to cool yields as was perceived earlier.