Companies and Markets

Companies & Markets

Rs 1L cr capital infusion in PSBs before Mar 31

The government will infuse Rs 88,139 crore capital in 20 public sector banks (PSBs) before March 31. Of this, the finance ministry will raise Rs 80,000 crore through recapitalisation bonds, while Rs 8,139 crore will come from budgetary provisions.

The total recapitalisation in this financial year will cross Rs 1 lakh crore, after including funds raised from share sales, said Rajeev Kumar, secretary, department of financial services. A fresh capital infusion of Rs 1 lakh crore will enhance credit capacity of PSBs by more than Rs 5 lakh crore.

IndiGo bags 20 routes under RCS, SpiceJet 17

Most major airlines, including Jet Airways and Indigo, participated in the second round of bidding under regional connectivity scheme (RCS) and have bagged rights to launch flights on sectors linking smaller towns and cities.

In the first round, IndiGo and Jet Airways had stayed away from the race.

The trend is far from being over

The market continued rise making new historic highs. The S&P BSE Sensex surged 341 points or 0.96 per cent to settle at 36,139, while Nifty 50 index rose 117.50 points or 1.07 per cent to settle at 11,083.70. Both indices crossed new milestones as the Sensex scaled 36,000 mark and the Nifty settling above the 11,000-mark for the first time. The market gained for the fifth straight day as the International Monetary Fund (IMF) report showing India is set to regain the title as the world's fastest growing major economy in 2018-2019 and bright outlook for global economy boosted sentiment.

Market witnesses biggest pre-budget rally in 10 yrs

The equity benchmark BSE Sensex surged a thousand point in just four trading days to cross the 36,000-mark, making it one of the biggest pre-budget rallies in recent times as expectations are building up over the upcoming budget.

An analysis shows that in the past 10 years only in four times the market rallied before the budget. Interestingly, this year saw the biggest rally in the decade as the Sensex gained close 5 per cent in the past 10 days. The second biggest gain was in 2014 when the Sensex rose 2.35 per cent 10 days before the budget announcement.

Open interest in derivatives on rise as Feb 1 approaches

Open interest (OI) in derivative market is on the rise for the past few weeks, indicating that traders are building huge positions ahead of the budget announcements on February 1. According to analysts, the recent sharp rally in the market suggests that traders are placing bullish bets on the Nifty ahead of the budget.

And even the open interest in put-call ratio (PCR) is in a rising mode, signalling a positive bias in favour of the market.

Pharma stocks look attractive, metal WEAK

Benchmark indices extended gains for the fourth day in a row as firmness in most global stocks supported gains on bourses. The S&P BSE Sensex rose 286.43 points or 0.81 per cent to settle at 35,798.01, while the Nifty 50 index gained 71.50 points or 0.66 per cent to settle at 10,966.20.

Govt has run away by classifying NSEL crisis as private dispute: Charry

The Bombay High Court last month upheld the NSEL-FTIL merger while dismissing the plea against the ministry of corporate affairs’s (MCA) merger order. Now, 63 Moons, formerly FTIL, says it would move the apex court citing the ‘devastating’ impact of this merger. In February 2016, the ministry had passed a final order directing the merger of scam-hit NSEL with FTIL. The draft order was issued in October 2014. It was the first case of the government ordering the merger of two private sector companies (under Section 396 of Companies Act, 1956).

Atlas Copco eyes double-digit growth with new ACs

Swedish compressed air solutions specialist the 11 billion euro (Rs 87,530 crore) Atlas Copco is targeting a double-digit growth with demand rising for its range of air compressors in Asia’s third biggest economy.

HPCL may acquire MRPL in cash, share-swap deal

HPCL may acquire Mangalore Refinery and Petrochemicals (MRPL) in a cash and share-swap deal to become India’s third-largest oil refiner, a top official said.

Oil and Natural Gas Corp (ONGC), India’s biggest oil and gas producer, last week announced acquisition of HPCL for Rs 36,915 crore. After this takeover, ONGC has two refining subsidiaries – HPCL and MRPL.

“If MRPL comes to HPCL, we can bring lot of synergy,” HPCL chairman and managing director Mukesh Kumar Surana said.

Manappuram stock rises on acquisition talk

Ahead of its board meeting, the stock price of Manappuram Finance rallied amid speculation that the company would announce an acquisition.

According to a notice to the Bombay Stock Exchange on Friday, the company had said, “We wish to inform the board meeting of directors of the company will be meeting at 11 am on Tuesday at Mumbai interalia to discuss on investment proposals.”

When asked about the board meeting, Kapil Krishan, chief financial officer of Manappuram Finance said the board would be discussing an investment it would be making in another company.