Companies and Markets

Companies & Markets

Market seems to have made a temporary bottom

The trading week gone by was short on account of Diwali festivities and, but for Muhurat day, was range bound Muhurat day trading for Samvat 2075 began on a promising note and the Sensex gained 245.77 points, or 0.70 per cent, to close at 35,237.68 points. The Nifty gained 68.40 points, or 0.65 per cent, to close at 10,598.40 points. The week saw Sensex gaining 146.90 points, or 0.42 per cent to close at 35,158.55 points. The Nifty gained 32.20 points, or 0.31 per cent, to close at 10,585.20 points.

NTPC, NBCC among four included in CPSE ETF

The finance ministry has rejigged the CPSE Exchange Traded Fund (ETF) and has included in the basket the scrips of four state-owned companies NTPC, SJVN, NLC and NBCC, an official said.

The ministry has removed three of the existing companies GAIL, Engineers India Ltd (EIL) and Container Corporation of India in the ETF basket and has replaced them with four new companies.

FDI flows seen drying up

After the huge outflow of portfolio investments over the last few quarters, India could see drying up of foreign direct investment (FDI) flows in the coming months, as the rising yields on dollar-denominated debt and the perception of an appreciating greenback could hold back foreign investors from pumping in more money.

According to experts, after the record outflows from foreign institutional investors this year, even FDI could dry up in the next six months owing to the rise in the US short- and long-tenor interest rates.

FinMin to give teeth to NAFRA

Aiming to discipline CAs and firms auditing listed and large companies, the finance ministry is planning to strengthen the National Financial Reporting Authority of India (NAFRA). The move comes in the wake of continuing opposition from the other existing body ICAI and auditors’ failure to discharge their duties.

Govt may nudge LIC, SBI to buy out IL&FS

It emerges that outright sale of IL&FS is the best option before its new board. But it is a big challenge to find buyers. Keeping this in mind, the government is likely to approach cash-cow LIC and SBI for sale of the infrastructure giant and group entities if it doesn’t find prospective buyers. It is also expected that the new board may go for equity routes if the deals come to fructification.

Stocks to move up if Nifty goes past hurdle

The Sensex rallied 246 points to reclaim the 35,000-mark in the the special Muhurat session on Wednesday to mark the beginning of Hindu Samvat year 2075.

After rising by 310 points in opening trade, the Sensex closed at 35,237.68, up 245.77 points, or 0.70 per cent.

All the sectoral indices were in the green, led by oil and gas, auto, realty and FMCG.

The broader NSE Nifty also rose by 68.40 points to 10,598.40, up 0.65 per cent.

Fortis CEO Bhavdeep Singh quits

The chief executive officer of Fortis Healthcare, Bhavdeep Singh has stepped down on Thursday but will continue in his current capacity till a successor is found.

Singh has resigned from his position by communication dated November 8. The board of directors of the company has considered and accepted his resignation, Fortis Healthcare said in a regulatory filing.

Stocks that defied DeMon

As the political slugfest over the shock announcement of demonestisation two years ago rages on, not many stock investors are ruing their decision to keep the faith in equities even though the bolt from the blue event had shaken India Inc in many ways.

An analysis shows over 40 stocks have given more than 100 per cent return to stock investors since the November 8, 2016 event. Some of these stocks are considered direct beneficiaries of demonetisation, though most are not.

10 of 15 new stocks dip below IPO price

More than half of 15 companies that made their stock market debut this fiscal are trading below their issue price, plunging as much as 53 per cent.

A total of 15 companies have been listed on the bourses.

Dinesh Engineers, a passive communication infrastructure provider, withdrew its initial public offer early last month due to sluggish investors’ response.

Out of the 15 newly listed companies, shares of 10 firms are trading below their IPO price, tumbling as much as 53 per cent, an analysis showed.

NBFC crisis poses growth headwinds

The crisis of confidence in non-banking financial companies (NBFCs) may prove a drag on economic growth, as balance sheet constraints and higher funding costs may prompt these shadow banks to slowdown lending, warns a report.

But this will come as a growth booster for banks, which for long have been ceding credit market share to NBFCs, which had accounted for 12-15 per cent of the total credit generated in the past two fiscals.