The major indices of the Indian equity market opened in the green on Monday and closed with strong gains. On the NSE, there were 1257 advances, 485 declines and 350 unchanged.
Amid mixed global cues Sensex surged close to 250 points as key equity indices opened in green on Monday, owing to gains in the banking and finance stocks. Healthy buying was seen in all the sectors with BSE Oil and Gas index leading the pack, closely followed by banking and finance scrips.
The Sensex of the BSE opened at 36,741.57 from its previous close at 36,671.43 on Friday. The Nifty of the National Stock Exchange (NSE) opened at 11,068.75 from it's previous close of 11,035.40. On Friday, foreign institutional investors (FIIs) bought stocks worth Rs 1,095.06 crore while domestic institutional investors (DIIs) sold stocks to the tune of Rs 470.70 crore.
The share price of Birla Corporation fell over 14% on Monday after the National Green Tribunal (NGT) ordered a stop to all mining activities in Rajasthan`s Chittorgarh city. The company said that it was studying the implications of the NGT order on its mining operations at Chanderia.
Insurance regulator Irdai is awaiting state-run LIfe Insurance Corp`s (LIC) proposal on the timeline of reducing its stake of 51% in IDBI Bank before taking any decision to enforce the 15% equity cap, a senior official said on Monday. As per Irdai rules, LIC will have to pare its stake to 15% keeping in place the regulator`s investment limit in listed investees.
In IDBI Bank, LIC holds 51% under a specific permission from Irdai but under the condition state-run insurance behemoth will bring the stake down. Not just Irdai, the Reserve Bank of India (RBI) has also told LIC that it cannot hold more than 15% stake in IDBI Bank over a long period of time. IDBI Bank also has to move out of its IDBI Federal Life Insurance interest. As per Irdai norms, one promoter cannot have two insurers, in order to avoid conflict of interest.
New guidelines by the National Housing Bank (NHB) for India's housing finance companies (HFCs) will not address the major challenges of credit risk for these companies, a Moody's report said on Monday. The NHB last week proposed to increase the capital adequacy ratio (CAR) for HFCs to 15% in a phased manner by March 2022. The housing finance regulator also reduced the borrowing limit of HFCs from 16 times of net owned funds to 12 times by March 2022. "The new guidelines would be credit positive because they would limit HFCs' credit growth and cap their maximum exposure to the debt capital markets. However, the new guidelines do not address issues regarding the key credit risk of these companies, their funding and liquidity," said the report.
Kalpataru Power Transmission Ltd (KPTL) has bagged new orders worth Rs 1,288 crore from its transmission and distribution and oil and gas business. KPTL is a specialised engineering, procurement and construction company in India engaged in power T&D, oil and gas pipeline, railways, infrastructure development, civil contracting and warehousing and logistics business.
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: