Companies and Markets

Companies & Markets

Support seen at 10,400

Markets plunged more than 800 points as the fall in rupee and rising crude prices hit investor sentiments. The Sensex lost 806 points, to end at 35,169, while the broader NSE Nifty lost 259 points, to close at 10,599. The BSE Mid-cap and Small-cap declined 1.93 per cent and 2.07 per cent, respectively. All the sectoral indices on BSE posted losses with oil and gas and energy falling over 6.5 per cent. IT and healthcare was down over 3 per cent. Capital goods fell marginally at 0.07 per cent.

Technical view

Oil stocks tank up to 12%

Shares of oil marketing firms HPCL, BPCL and IOC plummeted up to 12 per cent on Thursday after the government announced Rs 2.50 per litre cut in petrol and diesel prices as it reduced excise duty and asked oil companies to absorb another Re 1.

The scrip of Hindustan Petroleum Corp (HPCL) tanked 12.23 per cent to end at Rs 220.60, Bharat Petroleum Corp (BPCL) plunged 10.89 per cent to Rs 336.35 and Indian Oil Corp (IOC) tumbled 10.57 per cent to Rs 140.85 on BSE.

Chanda quits ICICI Bank; stock up 4% despite weak broader mkt

Beleaguered Chanda Kochhar has quit as chief executive officer and managing director of ICICI Bank with immediate effect. Kochhar, 56, who headed ICICI Bank since May 2009, also stepped down from the board of directors of its units, including ICICI Securities. Her five-year tenure as CEO of ICICI Bank was to end on March 31, 2019.

RoC to grill former IL&FC brass on fund management

The Registrar of Companies (RoC) has asked indebted IL&FS’ ex-management and independent directors to explain the trail of fund and its deployment, the role of auditors and how it was paying dividends to shareholders from debt.

It is also seeking answers from IL&FS how it indiscriminately raised long-term and short-term loans through public sector banks and financial institutions.

Ex-directors extend full support to new board

Former independent directors of IL&FS have written to the new chairman, Uday Kotak, extending their “complete support” in the revival of the company. In a letter, five former independent directors, including former LIC chairman SB Mathur, have said IL&FS, despite several attempts, was unable to raise additional equity and thus the “asset-liability” mismatch continued to aggravate.

Other independent directors of the erstwhile board were Maruti Suzuki’s RC Bhargava, former IAS officer Michael Pinto, Jaithirth Rao and Rina Kamath.

Auto stocks tank over fuel prices, rate hike

Auto sector stocks fell sharply on Wednesday as investor concerns grew over high fuel prices, mixed vehicle sales numbers in September and an imminent RBI rate hike. The BSE Auto Index fell 2.90 per cent and its counterpart Nifty Auto fell 2.94 per cent, far more than Sensex and Nifty, which 50 fell by 1.51 per cent and 1.36 per cent, respectively.

Passenger vehicle makers suffered more than commercial vehicle manufacturers in line with the September auto sales data, which showed weak car and two-wheeler sales but improved commercial vehicle sales.

Walmart submits details of tax deducted from Flipkart investors

US retail giant Walmart has submitted to Income Tax (I-T) authorities its rationale for deducting tax on payments made to some Flipkart shareholders and not to others, a senior official said on Wednesday.

I-T authorities, which had previously asked Walmart to explain the logic behind its tax deductions on the $16 billion Flipkart deal, have the option to seek more clarifications from the US retailer once they study the reply.

Liquid funds see massive outflow

Liquid funds of mutual funds have seen massive outflows in the wake of the IL&FS crisis and the liquidity fears following it. CAMS data shows cash plans, or liquid funds, saw outflows of Rs 69,694 crore in September. Ultra liquid schemes also suffered net outflows of Rs 19,479 crore last month. This apart, all categories in the debt segment also saw outflows, except fixed maturity plans.

Rupee falls below 73-mark

The rupee touched a life-time low of 73.41 against the US dollar as crude prices jumped above $85 per barrel on expectations of tighter supply once the US sanctions start targeting Iran’s petroleum industry from next month.

Close to 80 per cent of crude is imported by India and oil prices at $83-84 per barrel makes the current account deficit (CAD) vulnerable.
The rupee touched a record low of 73.41 in the morning trade, while it saw some recovery during the day after it opened lower at 73.24 against Monday's close of 72.91 per dollar. The rupee finally ended at 73.34.