Stocks
BSE lowers stock circuit limit of 12 companies

On Monday, nearly a dozen mid-cap and small-cap shares crashed, prompting SEBI to initiate a probe into panic selling triggered by speculation that pledged shares are being sold by certain entities

The Bombay Stock Exchange (BSE) on Tuesday decided to lower circuit limit of scrips of 12 companies, including those which were beaten in the mid-cap crash on Monday.

 

The changes would effective from Wednesday, the exchange said in a circular.

 

BSE has capped the maximum movement in a day at 10% for five stocks—Aanjaneya Lifecare, Bhagwati Banquets & Hotels, Gemini Communications, Sudar Industries.

 

Besides, DB Realty, 7seas Technologies, Bhoruka Aluminium, Broadcast Initiatives, Vardhman Polytex and WH Brady & Co would be allowed an upward or downward movement of 5% in day.

 

BSE also said the circuit limit of Jolly Plastic Industries would be 2%.

 

The exchanges generally lower the circuit filter of a stock as part of their surveillance mechanism to avoid excessive volatility in the share price.

 

On Monday, about a dozen mid-cap and small-cap shares crashed, including Aanjaneya Lifecare which fell by 20%, prompting the Securities and Exchange Board of India (SEBI) to initiate a probe into panic selling triggered by speculation that pledged shares are being sold by certain entities.

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SEBI exempts SPIC promoter from making open offer

According to SEBI, Ashwin C Muthiah (a shareholder of SPIC under the category “promoter and promoter group”) holds 96% of the capital and Valli Ashwin Muthiah holds 4% capital of AMI Holdings

The Securities and Exchange Board of India (SEBI) has exempted AMI Holdings from making an open offer regarding its acquisition of shares in Southern Petrochemical Industries Corporation (SPIC), as the transaction would not result in any change in control.

 

In its order dated 22nd February, the market regulator has exempted “the proposed acquirer, AMI Holdings Pvt Ltd, from the obligation to make an open offer... with respect to the proposed acquisition of equity shares pursuant to the conversion of 3.72 crore warrants.”

 

The promoter group of SPIC holds 41.13% of the voting capital, while AMI Holdings does not hold any shares in the firm as on date.

 

However, AMI Holdings is identified as a company belonging to the promoter group of SPIC which proposes to invest in the warrants to be issued by latter.

 

According to SEBI, Ashwin C Muthiah (a shareholder of SPIC under the category “promoter and promoter group”) holds 96% of the capital and Valli Ashwin Muthiah holds 4% capital of AMI Holdings.

 

“By virtue of the substantial shareholding of the promoter (Muthiah) of SPIC in AMI Holdings, latter becomes a “promoter group” entity of SPIC,” SEBI said.

 

Following the conversion of warrants into equity shares, the shareholding of the promoter and promoter group would increase from 41.13% to 51.91%, while individual holding of AMI Holdings would rise from nil to 18.31%.

 

“...the allotment of warrants and their conversion into equity shares would not result in any change in control in the target company,” SEBI said in its order.

 

“The consequential increase in the shareholding of the promoter/promoter group would also not disturb the minimum public shareholding levels in the target company,” it added.

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Nifty, Sensex skid on global concerns: Tuesday Closing Report

The Nifty may be readying for a short bounce but the trend is medium sharply lower, unless the budget can pull off a miracle

 
The market dropped over 1.5% in trade today on broad-based selling and negative global cues. The lacklustre Railway Budget also pulled down the broader indices. The Nifty may be readying for a short bounce but the trend is medium sharply lower, unless the budget can pull off a miracle. The National Stock Exchange (NSE) recorded a volume of 63.55 crore shares and advance-decline ratio of 273:1266.
 
The market witnessed a gap down opening on cautiousness ahead of the Railway Budget, which will be announced later in the day and on unsupportive global cues. Uncertainty about the outcome of the Italian elections sent the US markets lower in overnight trade. A similar sentiment was seen across the markets in Asia in morning trade today.
 
The Nifty opened 17 points down at 5,838 and the Sensex started the day at 19,291, a cut of 41 points from its previous close. The benchmarks hit their intraday highs in initial trade itself with the Nifty inching up to 5,839 and the Sensex rising to 19,293. However, the sell-off, which started in a short while, saw the market taking a southward journey.
 
The Nifty stood at 5,807, down 48 points (0.81%) and the Sensex touched 19,180, a fall of 152 points (0.78%) as railway minister Pawan Kumar Bansal began his maiden budget speech.
 
All sectoral indices, barring technology, IT and fast moving consumer goods sectors, were in the red in noon trade on the overall weakness in the market. A weak opening of the European markets added to the woes of the domestic investors, as the local indices drifted lower in post-noon trade.
 
The rout continued in the late session with the key benchmarks dropping to their intraday lows in the last half hour. The Nifty fell to 5,749 and the Sensex touched 18,977 at their respective lows.
 
The market closed near the lows as the Rail Budget failed to cheer investors. The Nifty settled 93 points (1.60%) down at 5,761 and the Sensex finished trade at 19,015, a cut of 317 points (1.64%).
 
The broader indices were punished in today's trade as the BSE Mid-cap index tanked 1.76% and the BSE Small-cap index tumbled 2.43%.
 
BSE IT (up 0.89%) and BSE TECk (up 0.77%) were the only gainers in the sectoral space. The top losers were BSE Oil & Gas (down 3.07%); BSE Auto (down 2.76%); BSE Capital Goods (down 2.44%); BSE Metal (down 2.30%) and BSE PSU (down 2.29%).
 
Only five of the 30 stocks on the Sensex closed in the positive. The gainers were TCS (up 1.56%); Infosys (up 1.47%); Bharti Airtel (up 1.38%); NTPC (up 0.73%) and Hindustan Unilever (up 0.22%). The main losers were Hindalco Industries (down 4.49%); Bajaj Auto (down 4.20%); HDFC, ONGC (down 3.74% each) and Reliance Industries (down 3.51%).
 
The top two A Group gainers on the BSE were-Idea Cellular (up 3.69%) and Berger Paints (up 3.40%).
The top two A Group losers on the BSE were-Jet Airways India (down 11.12%) and IFCI (down 6.07%).
 
The top two B Group gainers on the BSE were-Everlon Synthetics (up 10.05%) and Ashima (up 10%).
The top two B Group losers on the BSE were-Aanjaneya Lifecare (down 20%) and Onelife Capital Advisors (down 20%).
 
Of the 50 stocks on the Nifty, eight ended in the green. The key gainers were TCS, Infosys (up 1.75% each); Bharti Airtel (up 1.30%); Grasim Industries (up 1.24%) and Jaiprakash Associates (up 0.74%). The top losers were Ranbaxy Laboratories (down 4.76%); Bajaj Auto, Hindalco Ind (down 4.31% each); HDFC (down 3.75%) and Maruti Suzuki (down 3.61%).
 
Markets in Asia closed lower as a stalemate in the outcome of Italian elections stoked fears of a fresh crisis in Europe. Sentiment was also rattled by comments from the Chinese central bank that it would pull out around 5 billion yuan through repurchase initiatives in a bid to tighten its monetary stance.
 
The Shanghai Composite tanked 1.140%; the Hang Seng dropped 1.32%; the Jakarta Composite declined 0.70%; the KLSE Composite fell 0.19%; the Nikkei 225 tumbled 2.26%; the Straits Times dropped 1.05%; the Seoul Composite slipped 0.47% and the Taiwan Weighted settled 0.84% lower.
 
At the time of writing, the CAC 40 of France was down 2.24%; the DAX of Germany dropped 1.845 and UK's FTSE 100 was trading 1.26% lower. However, the US stock futures were trading in the positive.
 
Back home, foreign institutional investors were net buyers of equities amounting to Rs246.71 crore while domestic institutional investors were net sellers of stocks totalling Rs161.97 crore.
 
Modest investment plans announced in the Railway Budget for 2013-14 resulted in railway-related stocks settling lower. Titagarh Wagons tumbled 9.43% to close at Rs241.20 on the NSE. Kernex Microsystems plunged 16.92% to Rs43.45, Texmaco Rail & Engineering dropped 12.05% to settle at Rs54 and Kalindee Rail Nirman fell 12.56% to Rs69.30.
 
Wind turbine maker Suzlon Energy has received an order for a 102.9 MW project from ONGC. The project, to be located in Rajasthan, comprises 49 units of Suzlon's S88 - 2.1 MW wind turbines and will be commissioned in 2013-14. Suzlon declined 4.49% to close at Rs21.25 on the NSE.
 

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