Companies and Markets

The rupee on Tuesday plunged further against the US dollar to close 46 paise lower at a record low of 72.97 as government measures announced last week failed to boost sentiment in the forex market. Investors are now pinning their hopes on the Reserve Bank of India (RBI) to raise interest rates at least two more times this year. Extended weakness in the rupee came on the back of rising crude oil prices and concerns on the intensifying US-China trade war front.

The market continued to face intense selling pressure with the Sensex plunging by 294 points, or 0.78 per cent, to close at 37,290.67, its lowest closing level since August 2, 2018. The Nifty 50 Index lost 98 points, or 0.87 per cent, to settle at 11,278.90. There was huge selling in broader market with the BSE Mid-cap Index losing 1.49 per cent, while the BSE Small-cap Index fell 1.51 per cent. Both these indices underperformed the Sensex. The market breadth was weak as 881 shares rose and 1,805 shares fell.

Technical view

Fair trade regulator CCI on Tuesday imposed a total penalty of Rs 38.05 crore on 18 sugar mills and two trade associations for bid rigging with regard to a joint tender floated by oil marketing companies (OMCs) for procuring ethanol for blending with petrol.

State-owned Power Finance Corp (PFC) has filed an insolvency plea against Rattan India Power, formerly known as Indiabulls Power, in the National Company Law Tribunal (NCLT) to recover unpaid loans.

 A two-member bench of NCLT on Tuesday adjourned the matter to November 26 as the Supreme Court has ordered status quo in insolvency pleas against power companies.

Liquid caramel colour maker Sayaji Industries (SIL) has exited its joint venture with USA-based Sethness Products Company. The Ahmedabad-based company has sold 12,00,000 equity shares representing 40 per cent stake in Sayaji Sethness for an aggregate consideration of $3.2 million.

The proceeds from the transaction would be used for expansion and upgradation plans and to strengthen the company’s balance sheet through debt reduction.

Markets watchdog Sebi on Tuesday said, ICICI Bank and Chanda Kochhar have replied to its show-cause notices on the probe into the alleged regulatory lapses by the bank's CEO-on-indefinite-leave in lending to Videocon group and her husband's business deals with the Dhoot family.

ICICI Bank and the business dealings of the Kochhar family have come under the regulatory glare of Sebi and other agencies after a whistleblower has reported to the government agencies that the Kochhar family had some quid pro quo in its dealings with the now bankrupt Videocon group.

The National Stock Exchange (NSE) has filed consent application with the Securities and Exchange Board of India to settle its co-location issue. The alleged lapses in NSE’s high-frequency trading offered through the bourse’s co-location facility was under probe.

Sebi chairman Ajay Tyagi (in pic), said, “They have filed an application with us. The showcause notice was issued to 28 to 30 individuals and entities. The process to complete the consent will be based on how we move forward with all the entities.”

Unveiling more reform measures for the securities market, the Securities and Exchange Board of India on Tuesday decided to come out with revised KYC norms for foreign investors, reduce the listing time after public offer to three days and slash the charges levied by mutual funds from investors.

In a significant move that would help deepen the commodities market, overseas entities have been permitted to trade in commodity derivatives segment. A common application form would be introduced for foreign portfolio investors seeking to enter the domestic markets.

Sebi chairman Ajay Tyagi on Tuesday said he is not sure of ICICI Bank filing a consent application with regard to the ongoing probe into alleged regulatory lapses by its CEO Chanda Kochhar in lending to Videocon group and her husband's business deals with the Dhoot family. He said ICICI Bank and Chanda Kochhar have replied to its show-cause notices.

The government has announced yet another round of bank mergers to create mega banks. In the first round, State Bank of India absorbed its five associate banks and Bharatiya Mahila Bank. State-run insurer LIC is in the process of acquiring IDBI Bank. The three-way Bank of Baroda, Dena Bank and Vijaya Bank merger was announced on Monday.