The benchmark BSE Sensex dipped below the 32,000-mark by plunging over 158 points in early trade today due to sustained selling pressure from investors amid weak global cues.
Companies and Markets
Companies & Markets
As a part of efforts to curb the black money menace, Securities and Exchange Board of India (Sebi) has directed stock-exchanges to initiate action against 331 suspected shell companies that are listed. The market regulator's directive comes after the corporate affairs ministry shared a list of 331 listed companies that are suspected to be shell entities and could even face "compulsory delisting".
The crackdown by the Securities and Exchange Board of India (SEBI) against 331 suspected shell companies, it has emerged that most of these companies are from West Bengal.
The move, which involved imposing trading restrictions on the companies concerned and spooked investors, also covered a large number of firms from Gujarat and Delhi.
Banking stocks were hammered on Tuesday after the capital market regulator Sebi issued an order restricting trading in 331 companies. Most banks came under severe selling pressure as the list of shell companies contained names of REI Agro, Winsome Diamonds and Jewellery, Rohit Ferro Tech, Ankit Metal & Power and Rasoya Proteins, which are non-performing asset (NPA) on the books of banks.
Panic gripped the stock market on Tuesday after watchdog Sebi directed exchanges to restrict trading in 331 companies identified by the corporate affairs ministry as shell companies to just one day in a month.
The stock market is increasingly getting institutionalised, with the combined ownership of foreign and domestic institutions rising to a record 40.7 per cent in the June quarter.
An analysis of data shows that the foreign port folio investor’s (FPI) equity ownership in the Indian market has risen to 27.5 per cent in the June quarter, surpassing the previous high of 27.3 per cent in Sept 2016. FPIs currently hold Indian equity assets worth $395 billion.
Reliance Industries plans to refinance a significant portion of about $12 billion of borrowings that mature over the next three years and may sell bonds to repay the debt, according to company executives with knowledge of the matter.
Reliance will repay some of the debt coming due, mostly bonds and interest, the officials said, asking not to be identified discussing confidential matters.
Lenders of Tata Teleservices (Maharashtra) (TTML) may recall loans of Rs 1,911 crore as the company has not been able to satisfy them with its financial performance, as per a company note.
The company in a filing to the BSE on Tuesday reported a loss of Rs 506 crore for the quarter ended on June 30, 2017, against that of Rs 127.45 crore in the same period of last year mainly due to dip in revenues and over two-fold jump in finance cost.
The total income of TTML declined by about 26 per cent to Rs 554.15 crore during the quarter from Rs 745.4 crore a year ago.
Energy and environment solutions major Thermax is focusing on localising its products in the international market to derisk the company from the vagaries of business cycles in the home market. Thermax is targeting 40 per cent of its total sales revenues to come from overseas markets over the next three years.
The Pune-based mid-cap firm’s well crafted strategy is to scale up its businesses in South East Asia, the Middle East, Africa, South America and Eastern Europe.
India imposed trading restrictions on 162 listed entities identified as shell companies, a surprise move that analysts said was part of a broad crackdown on illegal offshore transfers and tax evasion.
The announcement by the Securities Exchange Board of India (SEBI) late on Monday did not say what illegal activities the companies may have been engaged in.
The restrictions include limiting trading in the affected companies to once a month and curbs in the trading of shares held by the promoters and directors of the companies.