Companies and Markets

Companies & Markets

The big hole

The government could face a big shortfall in its disinvestment target for the current fiscal given that it has raised less than half the proceeds budgeted through sell-off in the first nine months.
The government has targeted to mobilise Rs 56,500 crore via sale of public sector assets – Rs 36,000 crore through minority stake sale and share buyback and Rs 20,500 crore from strategic ssales.
Against that, it has raised nearly Rs 24,000 crore — Rs 21,432 crore via share buyback and minority stake sale and nearly Rs 2,100 crore from strategic sale in Suuti — so far.

Sensex recoups 43 pts on positive infra data

The BSE Sensex made a modest recovery of over 43 points at the start today on fresh buying, buoyed by a pick-up in infrastructure sector in November coupled with firm Asian cues.

The 30-share index rose 43.46 points, or 0.16 per cent, to 26,638.91, with sectoral indices consumer durables, power, metal, oil and gas, healthcare and realty advancing by up to 1.93 per cent. The gauge had lost 31.01 points in the first trading session of 2017 yesterday.

Manufacturing slides into contraction in Dec

India’s December manufacturing output saw its biggest monthly contraction in more than eight years as cash crunch spawned by demonetisation took its toll on new business orders, according to a private survey.
The Nikkei Markit India manufacturing purchasing managers’ index (PMI) – which measures manufacturing sector activity – fell to 49.6 in December, down from 52.3 in November.
PMI below 50 indicates contraction. This is also the first shrinkage in manufacturing in a year.

Realty stocks rise on lending rate cut, sops

Realty stocks rose Monday after many banks pared their lending rates from the New Year. The Nifty Realty Index was up by about 7.25 per cent. DLF went up by 6.5 per cent on the NSE. Oberoi Realty was up 5.8 per cent, Godrej Properties was up 3.5 per cent, Sobha, up 2 per cent and Indiabulls Real Estate, up 7 per cent. Unitech soared 8.75 per cent, while HDIL went up 2.9 per cent.

Falling prices get MFs to pick up Tata stocks

Mutual funds have been buying stocks of Tata Group companies during their fall as the internal battle within the group and impacts of demonetisation has made some of the stocks worth buying at the prevailing market price.

A double whammy for Tatas in big duel

Tata Group stocks took a big knock on their market capitalisation in the aftermath of the removal of Cyrus Mistry as the chairman of Tata Sons by the Tatas led by Ratan Tata.
However the market cap fall has narrowed down to 7.80 per cent from the earlier 15 per cent as it now stands at Rs 67,975.30 crore as on December 30, 2016 compared to a negative of Rs 1.15 lakh crore in the third week of November. The Tata Group’s market capitalisation of 27 constituent listed entities stood at Rs 8,03,297.96 crore as on December 30 as against Rs 8,71,273.30 crore on October 24, 2016.

Sensex begins 2017 on negative note, down 132 points

Stock markets opened on a subdued note on the first trading day of 2017, with the benchmark BSE Sensex falling over 132 points in early trade on profit-booking after recent gains.

The 30-share index, which had gained 415.78 points in the previous two sessions, fell 132.37 points, or 0.50 per cent, to 26,494.09 in early trade today.

Stocks of FMCG, teck, IT and auto were major losers, dragging the key indices down.

NTPC, SAIL not keen on acquiring stressed assets

Despite the prodding from finance minister Arun Jaitley, PSUs such as NTPC and Steel Authority of India (SAIL) remain reluctant to take over stressed steel and power projects as state-owned banks’ bad loans continue to pile up, adding to the government’s worries.

Dump medical cover for pharma funds

Buying a mediclaim? Well, a better option is investing in pharma funds, particular if you are young. For the uninitiated investors, it may sound an outlandish idea, but a look at the long-term track record of pharma funds says otherwise. Nilesh Shah, managing director of Kotak Mahindra Asset Management Company, says: “The payoff of investment in pharma fund SIP would be far in excess than insurance benefits.