Companies and Markets

Companies & Markets

FMCG stocks spike on strong buying interest

With companies reporting robust earnings growth, FMCG stocks like Hindustan Unilever (HUL), Procter & Gamble, Colgate and ITC are seeing strong buying interest from domestic and foreign investors.

Over the past one month, the BSE FMCG Index has outperformed the market, as it has risen 5.6 per cent against the Sensex’s gain of 3 per cent.

M&A activity hots up in insurance sector

The insurance sector is in the thick of M&A activity. Companies that are seeing hectic mergers & acquisitions (M&A) bids include Star Health & Allied Insurance Co, IDBI Federal Life Insurance Co, Royal Sundaram General Insurance Co and Policybazaar Insurance Web Aggregator.

The insurers have been in discussions with various suitors for months now but no deals have yet been sewn up as the companies are seemingly waiting for better valuations considering their future growth potential.

Airtel pink slips to 50% of Telenor India staff

In a major fallout of the Airtel-Telenor merger, the Sunil Mittal-led company has sought to offload 50 per cent of the 1,400 Telenor India staff. It will absorb the rest of the employees, mostly from sales and marketing wings.

Binani Industries offers to pay 100% claims of debtors

Binani Industries, which holds 98.4 per cent share in debt-ridden Binani Cement, on Wednesday offered to clear the 100 per cent claims of creditors at the National Company Law Appellate Tribunal. In a fresh petition filed before the NCLAT, it submitted that the offer will clear the dues of financial creditors, operational creditors and others within two weeks. The counsel appearing for Binani Industries said the settling of the creditors' claims will bring the company out of insolvency proceedings.

Insurance cover to gems and jewellery export credit cut

Finding the gems and jewellery industry risky post the PNB scam, the Export Credit Guarantee Corporation (ECGC) has brought down the insurance cover on the exports by the industry to 50 per cent. For the past five years, the sector has been registering the highest claims ratio.

Prior to 2013-14, ECGC has been providing over 75 per cent credit cover to gems and jewellery exports as any other industry. In the past five years, ECGC has been finding that the sector has been making the highest claims ratio.

Long wait for pricing recovery

Cement demand has seen a healthy traction in April across most markets, barring the northern region, but an industry up-cycle is still far away in the rivalry-riven sector.

A Pan-India channel check in 60 cities, done by Centrum Broking, shows sand availability, and consequently cement sales, has improved across Maharashtra, Bihar and Tamil Nadu though it continues to be an issue affecting the industry in Rajasthan. But cement offtake has been good across eastern, western and southern regions.

Accused PNB director Rao meets DFS secy

KV Brahmaji Rao, Punjab National Bank (PNB) executive director who is named in the CBI chargesheet in the over Rs 13,000 crore fraud case, met department of financial services (DFS) secretary Rajiv Kumar on Wednesday to present his case. He is said to have conveyed his innocence and asserted that he had done no wrong and carried out his duties as per the statute.

Trend reversal pattern emerges

The market saw highly volatile trade with the Sensex swinging by over 500 points as the Karnataka election results gave a negative surprise. The Sensex hit a high of 35,993.53 in morning trade, but it met with profit-booking at higher levels and slipped in the negative zone to hit a low of 35,497.92, before settling 12.77 points higher at 35,543.94. The gauge had gained 310.44 points in the previous two sessions.

The Nifty reclaimed the key 10,900-mark to touch a high of 10,929.20 in initial trade and fell back by 4.75 points, to end at 10,801.85.

Arcelor parks `7Kcr with SBI for Galva

World's largest steelmaker ArcelorMittal has transferred Rs 7,000 crore to SBI to clear bank dues of loan defaulter Uttam Galva Steels so that it becomes eligible to bid for acquisition of Essar Steel, a person with knowledge with the development said.

NCLT okays Tata Steel bid for Bhushan Steel

The National Company Law Tribunal (NCLT) on Tuesday approved Tata Steel's bid for debt-ridden Bhushan Steel.  

The tribunal also dismissed a plea filed by the employees of Bhushan Steel opposing Tata Steel's bid and imposed a fine of Rs 1 lakh.

The bench comprising NCLT President Justice M M Kumar and S K Mohapatra also dismissed the plea of engineering and construction major L&T seeking higher priority in recovery of loan and imposed a fine of Rs 1 lakh.

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