The market may be preparing the base for a rally
We had mentioned in Monday’s stock market closing report that the NSE’s CNX Nifty may not decline much if it stays above 8,200. We had also mentioned that all major indices are likely to move sideways. All the indices were sideways for most the day until they spurted at close.
The Bombay High Court on Tuesday permitted Nestle India to export all nine variants of Maggi even as the ban on selling the two-minute noodles within the country will continue. Nestle India closed Tuesday at Rs6,345.65, up 4.6% on the BSE.
In a big day for initial public offers (IPOs), at least three companies -- low-cost carrier IndiGo, staffing firm Teamlease and e-retailer Infibeam -- have lined up public offers to raise an estimated over Rs3,000 crore from investors. Merchant banking sources said the draft papers for all three IPOs were being submitted to capital markets regulator SEBI on Tuesday. InterGlobe Enterprises, which runs the country's biggest airline by market share under the 'IndiGo' brand, is looking to raise Rs2,000-2,500 crore through the IPO, sources said, while Teamlease is looking to raise Rs450-500 crore and Infibeam about Rs400 crore.
Shares of Brigade Enterprises and Kansai Nerolac Paints rose sharply following a land deal in Chennai for Rs550 crore. Brigade Enterprises’ scrip soared 18.43 % to Rs160 on BSE during the day. Paints maker Kansai Nerolac on Monday said it has entered into an agreement with realty firm Brigade Properties to sell its land in Chennai for Rs550 crore. Shares of Kansai Nerolac closed at Rs214.40, up 1.16% on the BSE. Brigade Enterprises’ shares closed at Rs149.80, up 10.88% on the BSE.
Srei Infrastructure Finance shares rose over 4% to hit an intraday high of Rs35.75 on Tuesday, following the company's plans to raise Rs200 crore via non-convertible debentures (NCDs) in its efforts to reduce finance costs. NCD is a debt instrument that cannot be converted into share or equity. Mortgage finance company Srei Infrastructure informed in a filing to the BSE on Tuesday the NCD issue will consist of 20 lakh secured, redeemable NCDs of face value of Rs1,000 each. Srei Infrastructure group CEO Moses Harding told NDTV that the NCD issue is part a periodic exercise by the company, which plans to shift focus from wholesale sources of funds to retail sources of funds. Srei Infrastructure Finance shares closed at Rs34.95, up 2.34% on the BSE.
Glenmark Pharmaceuticals shares gained 2% in afternoon trade Tuesday after the company received a surprise approval from US FDA for Ezetimibe, the generic version of Merck-Schering Plough's cholesterol lowering drug 'Zetia'. According to market analysts, the drug has US sales of $1.8 billion. Ezetimibe may generate $250 million in cash flows for Glenmark during the exclusivity period. Glenmark Pharmaceuticals closed at Rs993.50, up 2.12% on the BSE.
Mumbai-based drugmaker Marksans Pharma Ltd on Tuesday said its US subsidiary has bought 100% stake in New York-based Time-Cap Laboratories Inc. The company did not disclose the financial details of the deal. The company’s shares closed at Rs63.70, up 8.43% on the BSE.
The top gainers and losers of major indices include:
The closing values of major indices around the world include:
Among European indices, DAX was at 11,088.82, up 0.06%. FTSE 100 was at 6,594.78, up 0.39%. Athex Composite Share Price Index was at 797.52, up 2.03%.