Companies and Markets

Companies & Markets

NLC to trade power independently

Having secured a licence, Neyveli Lignite Corporation will be independently trading in the power market through a power trading arm. The company hopes that the new development will double its revenue from trading.

NLC has secured a Category I licence for power trading from Central Electricity Regulatory Commission last week. With this licence, the company can independently trade in the power market.

“As a part of its business promotion and diversification plan NLCIL has joined the league of Accredited Power Traders in the country,” the company said.

Pharma stocks see turn in fortune

Brokerages are getting bullish on pharmaceutical stocks after the recent rally and have raised price targets of bluechip pharma stocks. They expect pharma earnings to grow 22 per cent year-on-year in the current financial year, thanks to easing US FDA restrictions, moderation in price fall and product launches lined up for the upcoming quarters.

Hong Kong branches of PNB, IOB under lens

Hong Kong-based branches of Punjab National Bank and Indian Overseas Bank have been put under enhanced supervisory oversight and barred from proactively soliciting customer deposits by the Hong Kong Monetary Authority as the capital adequacy ratio of the two lenders fell below the regulatory requirements.

SBI CMD’s salary is too little compared to HDFC Bank MD’s

State Bank of India (SBI), one of the world’s 50 largest banks, pays a pittance to its top management personnel when compared to salaries earned by their counterparts in top private banks.

SBI chairman and managing director Rajnish Kumar drew a gross salary of Rs 14.25 lakh for six months since taking over as the bank chief in 2017-18. Kumar was elevated to the post on October 7, 2017. His remuneration as SBI chief consisted of basic salary of Rs 13.48 lakh and a dearness allowance of Rs 73,968 and other component of Rs 3,000, according to SBI annual report for 2017-18.

TCS plans another share buyback; shares up 2.43%

Shares of Tata Consultancy Services TCS), India’s largest company by market capitalisation, jumped by almost 3 per cent on Wednesday after the company informed stock exchanges that its board will consider share buyback on June 15.

TCS shares finally settled the day at Rs 1,824.20 on BSE, 2.43 per cent higher than its previous close. Its market capitalisation soared by around Rs 17,000 crore to Rs 6.98 lakh crore from 6.81 lakh crore a day earlier.

HDFC Bank’s plan to raise Rs 24K cr via FDI gets govt nod

The government on Wednesday approved the proposal of HDFC Bank to raise an additional capital of Rs 24,000 crore by selling equity to foreign investors to fund its business growth.

With the raising of this capital, foreign direct investment (FDI) in the bank will hit the regulatory ceiling of 74 per cent. At present, the FDI in the bank stands at 72.62 per cent. As per the RBI guidelines, foreign holding in public sector banks cannot go beyond 74 per cent.

Positive bias remains

The market ended with gains in a highly volatile trading as the Sensex gained 209.05 points or 0.59 per cent to close at 35,692.52, after falling 4.40 points, or 0.01 per cent at the day's low of 35,479.07. The Nifty 50 index ended with 55.90 points or 0.52 per cent gains to settle at 10,842.85, its highest closing level since 1 February, 2018. The S&P BSE Mid-Cap index rose 0.90 per cent, outperforming the Sensex, while the S&P BSE Small-Cap index was up 0.54 per cent, underperforming the Sensex. The market breadth was positive as 1,441 shares rose and 1,222 shares fell on BSE.

Rites sets IPO price band at Rs 180-185

The initial public offering of Rites, a state-owned company under the ministry of railways, will open on June 20.

Rites, which provides transport infrastructure consultancy and quality assurance services in India and abroad, proposes to raise Rs 466 crore by divesting 12.6 per cent stake in a price band of Rs 180-185 per share of Rs 10 face value. Retail investors and employees will be offered a discount of Rs 6 per equity share.

Unitech Q4 net loss widens to `1,000 crore

Crisis-hit real estate firm Unitech on Tuesday reported a consolidated net loss of Rs 999.83 crore for the quarter ended March 31, 2018, despite earning a higher income. The Gurugram-based developer had posted a net loss of Rs 290.19 crore in the year-ago period, according to a regulatory filing.

Total income, however jumped over two fold to Rs 977.59 crore during January-March, 2017-18 from Rs 480.36 crore in the year-ago quarter.

Despite sharp rise in income, the company has posted net loss due to higher operational expenditure and an exceptional item of Rs 928 crore.

Bharat Forge makes strategic investment in UK’s Tevva Motors

Bharat Forge, exporter of auto components, on Tuesday announced a strategic investment in the UK-based Tevva Motors, a firm which provides electric power train solutions for trucks and buses. Bharat Forge and Bharat Forge International UK will pick up 35.26 per cent stake in Tevva for Rs 90 crore. Tevva currently provides electric vehicle (EV) solutions to the 7.5-14 tonne range category commercial vehicles.

This is soon to be extended for the development of new commercial vehicles, especially trucks and buses.