Companies and Markets

Companies & Markets

Merger of MMTC, STC on the cards

The cabinet will soon consider a plan to merge central PSUs MMTC and STC into one big trading company that may also do business independently.

This will be the second most important decision on public sector undertakings (PSUs) by the NDA government after the in-principle approval accorded to the merger of petroleum behemoths HPCL and ONGC.

PSUs nudged to set up SPVs for greenfield units

As the private sector investment is in slow lane due to sluggish market conditions, profitable central pubic sector enterprises such as SAIL, NMDC, Nalco, RINL, MOIL and KIOCL have been roped in to play a larger role in boosting manufacturing activities. They have been asked to scale up investments in greenfield projects and prop up demand through aggressive marketing strategies.

Realty sentiment hits 39-month low

The future sentiment of the real estate sector plummeted to 39-month-low in June-September 2017 indicating a significant decline in the optimism pertaining to its future performance, according to a survey released on Tuesday.

According to a survey, jointly conducted by Ficci-Naredco-Knight Frank, the future sentiment score in the third quarter of 2017 stood at 55, reaching its lowest point over the past 39 months.

“This indicates that the true impact of demonetisation and structural reforms such as RERA and GST have finally sunk into the industry,” the report said.

Investor rush gathers steam for PSU stocks

With the government setting the ball rolling for divestment of its stake in state-owned companies, investors are buying into select public sector companies like Dredging Corporation of India, STC India and MMTC.

Over the past few trading days, some of the smaller PSU stocks were locked in 20 per cent upper circuit with huge volumes traded on bourses.

Nothing illegal if promoters bid for stressed assets: SBI chief

Defaulting promoters submitting bids for their companies in the resolution process of stressed assets under the Insolvency & Bankruptcy Code (IBC) are “within their rights” to do so, State Bank of India (SBI) chairman Rajnish Kumar said on Monday.

“Ethical... I don’t know, but legally they are within their rights to participate. I am not concerned about that because even if it is existing promoters, there will be a few pre-conditions from the creditors’ side,” Kumar told reporters on the sidelines of an event here.

Vemuri front-runner for Infosys CEO

Former Infosys executive Ashok Vemuri  (in pic) seems to have emerged as the clear front-runner to lead India’s second largest software exporter.

HDFC MF to launch Housing Opportunities Fund on Nov 16

HDFC Mutual Fund will launch a new close-ended fund, HDFC Housing Opportunities Fund, on November 16.

The thematic mutual fund scheme would invest in stocks that stand to benefit from housing sector growth, like cement, steel, banks and housing finance, NBFCs, paints, adhesives or sanitary ware companies and other companies catering to housing and allied businesses.

The fund will invest 80 to 85 per cent of the fund collected in equities and the remaining 15 to 20 per cent in debt and money market instruments.

Reliance Nippon debuts with 12.69% gain

Reliance Nippon Life Asset Management debuted on the bourses at 17 per cent premium, listing at Rs 295.90 on the NSE and at Rs 294 on the BSE against the initial public offering price of Rs 252. Reliance Nippon shares touched a high of Rs 299 and a low of Rs 278 in its first day’s trading.

The shares of the first mutual fund company to list on bourses finally closed 12.69 per cent, up at Rs 284 on the BSE and Rs 284.50 on the NSE. Reliance Nippon’s market capitalisation at the close of trading stood Rs 17,380 crore.