Slowly, Indian companies are showing an improvement in their corporate governance standards, with the good companies bettering their governance score.
The rating outlook of Vedanta Resources Limited, the holding company of India’s Vedanta Limited, has been changed to Negative from Stable by the Moody’s Rating Agency, following the London-based company’s decision to invest $561 million in Volcan Investments, a family trust of Anil Agarwal, amid movements in commodity prices that are exposed to further downside risk.
Last week, Vedanta’s earnings statement said that Cairn India Holdings, a Vedanta subsidiary, bought a stake in Anglo American from Volcan Investments during the December quarter.
A farm package at a cost lower than market expectations and minor slippage in fiscal deficit target by 10 basis points, tax benefits for the middle class and salaried persons and for the real estate sector announced in the Interim Budget led to a rally in the equity market.
In a repeat of the Budget day sessions, the market turned volatile soon after the Budget speech by the finance minister as the budget announcements led to a flurry of buying in the consumption related stocks led by auto, consumer durable, FMCG, housing finance and agri input stocks.
There was poor response from retail individual and high net worth investors to the new year’s first big initial public offering in the primary market by K Raheja Group promoted Chalet Hotels.
Chalet Hotels’ Rs 1,640 crore IPO was oversubscribed 1.58 times the issue size on the last day of the public issue largely due to qualified institutional investors bidding 4.65 times shares reserved for them excluding anchor investor allotments.
Retail individual investors bids came for just 0.03 times shares reserved for them while HNIs’ bid 1.11 time-shares reserved for them.
The RBI on Thursday allowed three publicsector lenders—Bank of India, Bank of Maharashtra and Oriental Bank of Commerce—to exit the Prompt Corrective Action Framework (PCAF). Banking experts say the next in line to exit PCA could be Corporation Bank and IDBI Bank.
“It has been decided that Bank of India and Bank of Maharashtra which meet the regulatory norms including Capital Conservation Buffer (CCB)and have Net NPAs of less than 6% as per third quarter results, are taken out of the PCA framework subject to certain conditions and continuous monitoring,” said the Reserve Bank.
The market surged on Thursday ahead of the interim budget, as heavy short-covering on expiry of the January series futures and options (F&O) contracts buoyed the benchmark Sensex to close above the psychological 36,000-mark with a 665-point gain.
The Supreme Court has declined to interfere with the Bombay High Court order of releasing the assets of 63 Moons Technologies (formerly Financial Technologies, or FTIL) attached under the Maharashtra Protection of Interest of Depositors (MPID) Act in the Rs 5,600-crore NSEL default case.
The apex court while hearing the matter also urged the Bombay High Court to conclude the final hearing of the matter within February itself.
The equity market seems to be treading cautiously ahead of the budget as investors are unwilling to take huge positions fearing volatility before key events.
Benchmark indices Sensex and Nifty on Wednesday ended flat as cautious investors refrained from taking any positions in view of upcoming key events like futures & options expiry, US Fed policy outcome and the Union interim budget, analysts said.
There is no major build up in the derivative market before the budget as sentiments are now driven more on political grounds rather than earnings or budget proposals.
Chanda Kochhar said she is "disappointed, hurt and shocked" by ICICI Bank decision on Wednesday evening to treat her resignation as a "termination for cause" after an independent probe indicted her.
Kochhar, the first woman CEO of a bank in the country, also said she served the ICICI Group for 34 long years "with all my dedication and hard work" and the bank's latest decision has caused her "immense hurt and pain".
An internal investigation by the retired Supreme Court Justice BN Srikrishna-led panel into the alleged quid pro quo transactions in ICICI Bank’s loans to Videocon Group, has concluded that there was lack of due diligence in annual disclosures and violation of the bank’s code of conduct by the former managing director and chief executive officer Chanda Kochhar.