Stories of Price Manipulation
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If Nifty goes below 6,110 during the day tomorrow, the rally may pause.
Past four days (including Wednesday) of gain on the Indian bourses has been able to recover nearly 57% of the loss suffered from the fall which began on 24 January 2014. From here the market may rise subject to dips.
The BSE 30-share Sensex opened at 20,644 while the NSE Nifty opened at 6,132. With a range bound move till around 2.50pm after which the benchmarks were pulled up and they closed almost at the day’s high. The Sensex moved up to 20,751 after hitting a low of 20,630 and closed at 20,723 (up 89 points or 0.43%) while Nifty moved to the level of 6,160 after hitting a low of 6,126, closed at 6,153 ( up 26 points or 0.42%). The NSE recorded a volume of 40.61 crore shares, one the lowest in recent times.
The Reserve Bank of India (RBI) said on Tuesday said it will conduct term repo auctions of appropriate amount and tenor during March 2014 to address liquidity tightness. In order to address the anticipated tightening in liquidity conditions on account of advance tax payments by corporates commencing mid-March 2014 and with a view to providing flexibility to the banking system in its liquidity management towards March-end 2014.
At the Group of 20 meeting in Sydney this weekend, market upheaval caused by reduced Fed stimulus may be the main topic of discussion and the countries will decide on how emerging economies can prepare for the change. Lok Sabha on Wednesday passed the Interim Budget for the financial year 2014-15 without much discussion.
The coal ministry, reviewing some 61 coal blocks allocated over the past decade that have not started production yet, announced on Tuesday it was reclaiming about half as companies have failed to meet milestones. The companies say delays in getting some government clearances hampered work on the blocks. The de-allocated blocks will be given to state-owned Coal India for the time being and may later be offered to new developers, coal ministry spokesman NC Joshi said. US indices closed flat on Tuesday.
Manufacturing activity in the New York region gave up most of the strong gains made during the prior month although it remained in positive territory, according to data released Tuesday. A gauge of confidence among home builders plunged in February, dropping to the lowest level in nine months, led by weaker views on present sales of single-family homes, according to data released Tuesday.
The housing-market index dropped to 46 this month from 56, signaling that builders, generally, are pessimistic about sales trends, according to the National Association of Home Builders/Wells Fargo, which cited “unusually severe weather conditions,” among other factors.
Except for Nikkei 225 (down 0.52%) and Seoul Composite (down 0.20%) all the other Asian indices closed in the positive. Shanghai Composite was the top gainer which rose 1.11%.
The People's Bank of China withdrew 48 billion Yuan ($7.9 billion) by selling 14-day repurchase contracts at 3.8% yesterday, 18 February 2014. That was the first repo auction since June. The central bank said it will sell 50 billion Yuan of nine-month treasury deposits on behalf of the Ministry of Finance tomorrow, 20 February 2014. A preliminary report on China's manufacturing is due tomorrow, 20 February 2014. European indices were trading in the red and US Futures too were trading lower.
SEBI exempts the GoI from an open offer to increase 14.26% stake in Vijaya Bank through conversion of perpetual non-cumulative preference shares worth Rs1,200 crore
Market regulator, Securities and Exchange Board of India (SEBI) in its order dated 17 February 2014, exempted the Government of India (G0I) from making an open offer to acquire additional 14.26% stake in Vijaya Bank through conversion of Rs1,200 crore worth of perpetual non-cumulative preference shares (PNCPS) into equity shares.
SEBI, whole time member Prashant Saran said in the order: "I am of the considered view that this is a fit case to grant exemption under The Takeover Regulations to the GoI from the obligation to make an open offer with respect to its proposed increase of shares/voting rights from 59.80% to 74.06%, pursuant to conversion of PNCPS into 30.46 core equity shares to the GoI,"
The GoI which is also the promoter of the public sector lender, proposed to acquire 30.46 crore more shares to increase its shareholding in Vijaya Bank to 74.06% from 59.80%. The bank has fixed issue price of Rs39.39 per equity share of Rs10.
Earlier on 20 January 2014, Vijaya Bank had filed an application with the capital market regulator seeking the exemption on behalf of its promoter, the Government of India.
In an order SEBI also said that even after the proposed increase in the shareholding of the government in Vijaya Bank, the minimum public shareholding would be maintained and there would be no change in the management control in the bank following the proposed transaction.
As per SEBI norms, when any entities who hold 25% or more shareholding in a company are required to make an open offer to acquire additional 5% or more in the company. However, exemptions can be made in certain cases.
The exemption has been granted subject to conditions that the government or the bank would ensure compliance with the statements, disclosures and undertakings made with regard to the transactions, among others.
Vijaya Bank closed marginally down on Wednesday at Rs35.10 on BSE, while the 30-share benchmark Sensex ended the day flat at 20,722.