Stocks
Nifty, Sensex to move sideways - Monday closing report
We had mentioned in Friday’s closing report that Nifty, Sensex may pause for breath. Indian Equity Markets ended lower on Monday after a three day rally as investors chose to book profits caused by the rally in the previous week. The trends of the major indices in the course of Monday’s trading are given in the table below:
 
 
The key indices ended in red as the software services exporters worried over strong rupee and a slowdown in business. Shares of IT companies plunged on reports that Cognizant may reduce at least 10,000 jobs, representing 5% of its total workforce, as the company looks to shift its focus from traditional IT services to digital. The rupee strengthened slightly to 65.4124/4150 per dollar, close to the near 17-month high of 65.2250 hit last week.
 
The shares of Idea Cellular fell by 11% on BSE after the announcement of the board approving the merger with Vodafone’s Indian operations, reversing the earlier gains of 14.25%. This decline was observed because the investors thought that the deal values the stock of the company much lower than the current market price; the promoters however rejected the valuation rumours. Voadafone India will own 45.1% of the combined entity, the promoters of Idea will own 26% and the rest will be held by the public. 
 
The markets, on an overall level, remained positive on hope for additional economic reforms from the government. A government official has said that the Modi Cabinet has approved four bills to implement a planned Goods and Services Tax (GST); the landmark tax will be implement from July 1. Analysts have said that the concern over high share valuations and lack of big events is likely to keep the markets rangebound. The IT sector accounted for around 50% of the losses on the CNX Nifty index, led by TCS falling by 1.97% and Infosys 1.92%. Kotak Mahindra bank rose by1.23% after it announced on Friday that it would seek approval from shareholders to raise the foreign shareholding limit up to 49%. HCL Technologies hit its 52-week high of Rs879.15, ahead of its board meeting to consider a buyback proposal. 
 
On the NSE, there were 701 advances, 774 declines and 76 unchanged. On the BSE, there were 1,354 advances, 1,443 declines and 226 unchanged.
 
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:
 
 

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Marks and Spencer pulls online ads from Google
London, UK-based retail chain Marks and Spencer on Monday became the latest firm to pull its online advertising from Google platforms over fears it is appearing next to extremist content.
 
It follows a UK government decision to remove its adverts from YouTube -- which is owned by Google -- after it emerged they had appeared alongside content from supporters of extremist groups, the BBC reported.
 
RBS, Lloyds and HSBC also announced similar moves over the weekend.
 
Google has said it does not always "get it right" and will improve.
 
The move follows a recent investigation by The Times, London, which found adverts from a range of well-known firms and organisations had appeared alongside content from supporters of extremist groups on the YouTube video site.
 
An ad appearing alongside a video earns the poster about 6 pounds ($8) for every 1,000 clicks it generates, meaning brands may have unwittingly contributed money to extremists.
 
Last week, ministers summoned Google for talks at the Cabinet Office after imposing a temporary restriction on the government's own adverts, including for military recruitment and blood donation campaigns.
 
Others such as fastfood chain McDonald's, beauty giant L'Oreal and luxury carmaker Audi, as well as the BBC, the Guardian and Channel 4, have suspended their advertising on both Google's search engine and YouTube site.
 
Sky News and Vodafone are also considering suspending their ads.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Telecom slips on merger announcements, Idea sheds 10%
Mumbai, Telecom sector slipped, with Idea Cellular's stocks plunging by almost ten per cent on Monday -- a day of major merger announcements in the telecom space.
 
At closing, the scrip of the telecom major was down by 9.55 per cent to Rs 97.60 per share at the BSE, emerging as the worst loser of the day.
 
Overall, the S&P BSE telecom index, which opened at 1,268.30 points, closed at 1,251.19 -- down 13.99 points or 1.11 per cent.
 
Telecom giant Bharti Airtel remained a gainer, with its shares up 0.79 per cent to Rs 349.45 per scrip at the BSE. On the other hand, Reliance Communications was down by 0.26 per cent to Rs 38.15 per share.
 
In one of the biggest mergers in the telecom space, Vodafone India and Aditya Birla Group-promoted Idea Cellular announced the much-awaited amalgamation, following which Vodafone will hold 45.1 per cent in the combined company.
 
"The market did not take the news (of Idea Cellular merger with Vodafone India) well with Idea shares losing 10 per cent in value and closing the day at Rs 97.60. Analysts were unhappy with the structure of the deal as the joint entity will continue to have high debt levels," Vijay Singhania, Founder and Director of brokerage firm Trade Smart Online, told IANS.
 
"The merger is not witnessing any cash inflows from either companies. Besides, the deal price is around the current price of joint entity as reported in the exchange disclosure. This leaves little room for appreciation," Singhania noted.
 
In another announcement, Reliance Communications has received approval of the Competition Commission of India (CCI) for the proposed merger with Aircel.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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