In Search of Multi-baggers - II
Two weeks ago, I shared some general thoughts on multi-baggers, how hard it is to identify them, and promised to share my thoughts on what are some of the characteristics of multi-baggers—of course, with the benefit of hindsight. Here are some pointers that may help. 
 
A ‘new’ idea or a theme or a new technology that has the potential to grow beyond the normal growth rates in, or...
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Nifty, Sensex Indecisive – Thursday closing report

We had mentioned in Wednesday’s closing report that Nifty, Sensex had paused for breath. The major indices of the Indian stock markets were range-bound on Thursday and closed with small gains over Wednesday’s close. On the NSE, there 655 advances, 1,034 declines and 375 unchanged. The major trends of the Indian stock markets on Thursday are given in the table below:

 

 
Amid mixed global markets and the ongoing corporate earning session, Indian equities ended mixed on Thursday. Ahead of the release of quarterly results by index heavyweights, the Nifty ended above 10,900. According to market participants, investors were cautious ahead of the third quarter results by Reliance Industries and Hindustan Unilever, to be announced later in the day. 
Oil and gas and finance scrips led the gains on the Sensex. The index pivotal, banking stocks erased early losses to end flat while the healthcare stocks declined 0.90%. Stock-wise, Axis Bank, HCL, HDFC, TCS and Kotak Mahindra gained in the range of 1% to 2%.
 
Sun Pharma lost over 5% followed by Yes Bank which declined over 3%. State Bank of India, Bajaj Finance, Hindustan Unilever declined between 1% to 2%. Globally, markets traded on a mixed note amid political uncertainty in the UK over Brexit and the longest-ever partial shutdown of the US government. However, British Prime Minister Theresa May won a confidence vote in the House of Commons on Wednesday, averting any immediate risk of an early general election.
 
The State Bank of India (SBI) on Thursday said that lenders to the financially stressed Jet Airways are in talks for a restructuring plan to ensure long term viability of the airline. The state owned bank is part of the group of lenders to the airline and its statement comes after the airline on Wednesday said that a resolution plan to infuse capital and reduce debt was under active consideration. 
 
Fortis Healthcare said that it has completed the acquisition of the entire portfolio of RHT Health Trust's Indian assets worth approximately Rs4,666 crore. "With the completion of the aforesaid, International Hospital Limited (IHL), Fortis Health Management Limited (FHML), Escorts Heart and Super Speciality Hospital Limited (EHSSHL), Hospitalia Eastern Private Limited (HEPL) and Fortis Hospotel Limited (FHTL) have become wholly-owned subsidiaries (direct or indirect) of the company," the company said in a statement. "The subsidiary companies combined, own the entire portfolio of India assets held by RHT - comprising 12 clinical establishments, 2 operating hospitals, 1 clinical establishment under construction as well as 4 greenfield clinical establishments." According to Fortis Healthcare, the transaction is "beneficial and will be value accretive" for the company and its shareholders as it would save significant clinical establishment fees. "As a result, the aforesaid transaction is expected to result in significant improvement in the company's operating profitability i.e. EBITDA and cash flows," the statement said. Fortis Healthcare shares closed at Rs136.50, down 1.02% of the NSE.
 
In a surprise move, State Bank of India (SBI) put its entire loan exposure of Rs15,431.44 crore in bankrupt Essar Steel on sale even though the prolonged insolvency case had neared resolution last October. The bank, as per a notice on its auction website, said it plans to sell the account to asset reconstruction companies (ARCs), banks, non-banking financial companies (NBFCs) or financial institutions (FIs). It has set the minimum reserve price for the loan at Rs9,587.64 crore. The price is set on the basis of the net present value (NPV) of the minimum recovery discounted at 18 per cent with a time factor of one year. And, the minimum recovery to SBI as per the approved resolution plan of ArcelorMittal subsidiary ArcelorMittal India Private Ltd (AMIPL) is Rs11,313.42 crore. ArcelorMittal's proposal of Rs42,000 crore to the lenders and additional Rs8,000 crore towards capital expenditure in Essar Steel was approved by the Committee of Creditors (CoC) to Essar Steel on October 25, 2018. However, a group of creditors including the promoters of Essar Steel have challenged the decision of the CoC. Earlier this month, the National Company Law Appellate Tribunal (NCLAT) ordered its Ahmedabad bench to expedite the resolution process. The CoC, led by SBI, has also filed an application at NCLAT requesting for a speedier disposal of the case within the next three weeks. Essar Steel was admitted for insolvency proceedings in August 2017 and the resolution has taken more than 500 days instead of the mandatory 270 days. The notice put out by the country's largest lender, however, has asked for a claw-back option from the buyer if the amount is realised prior to one year. State Bank of India shares closed at Rs297.40, down 1.90% on the NSE.
 
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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Nifty, Sensex Pauses for Breath- Wednesday closing report
The major indices of the Indian stock markets opened higher on Wednesday and closed flat. On the NSE, there were 828 advances, 861 declines and 374 unchanged. 
 
 
Broadly negative global cues, especially owing to the political uncertainty in the UK, subdued the Indian equity market on Wednesday. Globally, investors reacted with caution after the incumbent British government lost the Brexit vote triggering a no-confidence motion. However, positive macro-trade data kept the benchmark Sensex and Nifty in the green for most part of the day's session. 
 
The trade deficit in December narrowed due to fall in imports -- $41.01 billion or 2.44 per cent down from $42.03 billion in the same month in 2017. Interest-sensitive banking stocks led the gains on both BSE and NSE as investors expect the central bank to cut policy rates in the Monitory Policy Committee (MPC) meet scheduled for February 7. Recent data has indicated a cooling inflation providing room for the RBI to go for the rate cut, analysts said.
 
Etihad offered to invest in Jet Airways at 50% discount of Jet’s 15 January closing price. Jet Airways has now gone through three consecutive quarters of over Rs 1,000 crore in losses. Earlier reports suggested the airline's lessors and MRO (maintenance, repair, overhaul) partners are losing patience over non-payment of dues. And its lenders are now wary of a Kingfisher-like situation after Jet Airways defaulted on loan repayments in December. Jet Airways owes over Rs 8,000 crore to SBI-led consortium and its account. As a part of restructuring, Etihad, which holds a 24% stake in the Naresh Goyal-led company, said it would invest in Jet only at a price of Rs150 apiece, which is nearly half of Tuesday's closing price of Rs 294.40.  
 
SBI plans to sell over Rs 15,000 crore worth bad loans belonging to Essar Steel to recover its dues from the debt-laden steel maker. The lender has put the reserve price for the recovery of bad loans from Essar Steel India at Rs 9,587.64 crore. SBI said the resolution plan for the recovery of non-performing asset (NPA) has been approved and filed in NCLT Ahmedabad, according to which the minimum recovery to the bank is Rs 11,313.42 crore.
 
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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