Companies and Markets

Companies & Markets

Resistance seen at 10,733

The domestic market ended the day with small losses in a highly volatile session of trade. The S&P BSE Sensex fell 43.13 points or 0.12 per cent to settle at 34,906, the Nifty 50 index ended 18.95 points or 0.18 per cent lower to settle at 10,614.35. Markets across the globe were impacted by Italy's political crisis and fresh fears of a trade war between US and China.

The S&P BSE Mid-Cap index rose 0.03 per cent, outperforming the Sensex. The S&P BSE Small-Cap index fell 0.19 per cent, underperforming the Sensex.

FinMin unperturbed by FPI pullout

The finance ministry is unperturbed over FPIs pulling out more than Rs 27,000 crore funds from the Indian stock markets. It says domestic funds of banks, insurance companies and pension funds have made more than the amount withdrew primarily due to surging global crude prices.

According to the latest depository data, foreign portfolio investors (FPIs) withdrew Rs 7,819 crore from equities and another Rs 18,950 crore from the debt market during May 2-25, taking the total outflows to Rs 26,769 crore ($4 billion).

Tata ineligible to bid for Bhushan: Singal

The busy schedule at NCLAT on Wednesday also included hearing appeals against Tata Steel’s acquisition of debt-ridden Bhushan Steel and Vedanta’s bid for Electrosteel.

With respect of Bhushan Steel, NCLAT asked Tata Steel if it will clear the statutory dues like income tax and GST of the insolvent entity. Tata Steel’s acquisition of Bhushan Steel has been challenged by the latter’s founder Singal family and the firm's operational creditor Larsen and Toubro.

RCom gets relief from NCLAT

Reliance Communication (RCom) on Wednesday settled Swedish telecom networking company Ericsson's dues, while its asset sales to Reliance Jio got NCLAT’s nod marking its exit from the wireless business completely. The National Company Law Appellate Tribunal (NCLAT) has also halted bankruptcy proceedings ordered two weeks ago against the debt-laden company.

On Tuesday, RCom had offered an upfront payment of Rs 500 crore to its operational creditor Ericsson, which had got an insolvency order against the Anil-Ambani led group.

FMCG, auto stocks rise on rain forecast

Auto, FMCG and farm equipment stocks have seen huge buying interest as investors bet on improving rural demand on the back of higher minimum support prices (MSP), expectation of a favourable monsoon and rising rural disposable income boosting consumption demand.

Over the past month, rural focussed stocks like M&M, Colgate, GNFC, Dabur India, VST Tillers, Swaraj Engines and FMCG major Hindustan Liver have gained 10-18 per cent.

ICICI orders independent probe against Chanda

Months after serious charges of conflict of interest emerged against its MD& CEO Chanda Kochhar (in pic), ICICI Bank on Wednesday ordered an independent enquiry into the allegations raised by an anonymous whistleblower. Kochhar faces the accusation of “quid-pro-quo” in her dealing with Videocon group. The ICICI Bank board’s decision follows market regulator Sebi’s show-cause notice to Kochhar for alleged violation of disclosure requirements under securities law in the same case.

CBI books Sanjay Gutpa of OPG Securities in NSE co-location case

In a fresh twist to the long running NSE co-location case, the CBI on Wednesday registered a case against Sanjay Gupta, owner and promoter of Delhi-based OPG Securities Private Limited, Aman Kakrady (brother-in-law of Sanjay), Ajay Narottam Shah (who allegedly facilitated Gupta by developing and providing algo software Chanakya) and some officials of Sebi and National Stock Exchange whose names are yet unknown. CBI has registered cases under criminal conspiracy, PoC Act and section 66 of IT Act.

Support seen at 10,567

The market snapped its three-day winning streak with the Sensex shedding 216 points to close at 34,949 on Tuesday, while NSE Nifty settled at 10,633, down 55 points. A total of 34 stocks on the 50-scrip Nifty index ended in the negative zone. Apart from ICICI Bank, top laggards on the Nifty 50 included SBI, Bajaj Finserv, UPL and Yes Bank, settling with losses of between 1.9 per cent and 3.5 per cent. ICICI Bank, which ended more than 3 per cent lower, led the declines in banking stocks. Besides, losses in pharmaceutical stocks also dragged the markets lower. 

Fortis initiates new bidding process

Fortis Healthcare on Tuesday initiated a fresh time-bound bidding process for its sale after terminating the offer made by the Munjal-Burman combine, in yet another twist in the race for the cash-strapped healthcare chain.

The deadline for submitting fresh binding bids has been set at June 14, Fortis Healthcare said on Tuesday, a day after the Munjal-Burman combine had given their consent to re-open the bidding process.

RCom offers `500 crore to Ericsson to settle dispute

Reliance Communications (RCom) on Tuesday offered to pay Rs 500 crore to Ericsson India to settle a dispute on unpaid dues of over Rs 1,150 crore.

The company made the offer during a National Company Law Appellate Tribunal (NCLAT) hearing over an appeal filed by RCom against a May 15 order by the Mumbai bench of NCLT. The order initiated insolvency proceedings against Rcom on a plea made by Ericsson for recovery of unpaid dues.