Rally has been on lower volumes
We had mentioned in Tuesday’s closing report that Nifty, Sensex had hit a resistance but as long as Nifty does not dip below 7,350, bulls are safe. The major indices of the Indian markets were on a minor rally and the indices closed with gains of around 0.6% over Tuesday’s close.
The Sensex closed in the green for the sixth consecutive day on Wednesday and Nifty closed above its crucial psychological level of 7,500, powered by buying in capital goods, realty, power and banking shares. In the early part of the day, there was profit taking in metal stocks after last week's rally. However, late buying in blue-chip stocks such as Reliance Industries, Larsen & Toubro, Infosys and HDFC Bank helped the indices recover from the day’s lows. For about a week now, the investors in the Indian stock markets appear to have been receptive to FM Jaitley on his budget proposals, and the major indices have been on an upswing.
The Supreme Court on Wednesday issued notice to beleaguered liquor baron Vijay Mallya on a plea by a consortium of 17 banks led by the SBI seeking his personal appearance before it along with his passport as it was told that Mallya has already left the country. The Supreme Court case is making waves in the banking industry, which is over-burdened with non-performing assets, due to default in repayment by many borrowers. Bank Nifty rose 0.88% on the NSE to close at 15,279.05.
In other news of severe action being taken in the banking industry, the Central Bureau of Investigation (CBI) had registered a case against five officials from Syndicate Bank, a CA, three private people and others on charges of causing a loss of Rs1,000 crore to the bank by discounting of fake cheques and bills against fake insurance policies and overdraft limits against non-existent policies.
With the acquisition of Pivavav Defende formally in its fold, Anil Ambani-led Reliance Group is eyeing a sizeable share in the potential $60-billion pie of the Indian and overseas defence-related market where it now has a presence, sources said. Towards this, the government has already approved 12 industrial licenses for Reliance Defence, a subsidiary of Reliance Infrastructure for the manufacture of a wide range of equipment required by the armed forces in India and abroad. Listing the potential, sources said in the aerospace segment, where Reliance Group has a nod for military aircraft and choppers, the potential is Rs.9,000 crore in amphibious aircraft for Indian Navy, light choppers worth Rs.20,000 crore and medium-to-heavy choppers worth Rs.50,000 crore. Reliance Infrastructure shares closed at Rs515.60, up 6.94% on the BSE.
Crompton Greaves will sell its power business overseas to a US private equity fund for an enterprise value of 115 million euros, the company said in a regulatory filing on Wednesday. The statement said the company will sell its European, North American and Indonesian power transmission businesses to the US private equity fund, First Reserve International Ltd. The company manufactures fans, air coolers and power transmission equipment. Crompton Greaves shares closed at Rs151.85, up 8.81% on the BSE.
Tata Power Renewable Energy Ltd (TPREL), an arm of Tata Power, has inked a share purchase agreement with Indo Rama Renewables Ltd (IRRL) to acquire 30 MW wind farm, the company announced on Wednesday. Indo Rama Renewables Jath Limited (IRRJL), a 100% subsidiary of IRRL, has a 30 MW wind farm in Sangli district of Maharashtra. The transaction is expected to be consummated within the next few weeks, TPREL said in a statement. Tata Power shares closed at Rs58.85, up 0.09% on the BSE.
Market regulator Securities and Exchange Board of India (SEBI) on Tuesday finally held that Reliance Petroinvestments Ltd is not guilty of insider trading in respect of Indian Petrochemicals Corporation Ltd (IPCL). IPCL was merged with Reliance Industries Ltd (RIL), after it was acquired by the latter.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: