We had mentioned in last week’s closing report that Nifty, Sensex lacks upward momentum. The major indices of the Indian stock markets were volatile and closed with gains over previous Friday’s close. The trends of the major indices in the course of the week’s trading are given in the table below:
On Monday, the indices ended with gains. On the NSE, there were 904 advances, 872 declines and 327 unchanged. Automobile major Mahindra and Mahindra reported 6% fall in total sales to 42,547 units in June 2019.
The company had sold 45,155 units in the corresponding month last year. In the domestic market, sales were down 5% to 39,471 units last month, compared with 41,689 units in June 2018. Ashok Leyland reported 19% decline in total vehicle sales at 12,810 units in June as against 15,792 units in the same month last year. Total domestic sales were at 12,085 units last month as compared to 14,091 units in June last year, down 14%, the company said in a regulatory filing.
On Tuesday, the indices rallied. On the NSE, there were 819 advances, 930 declines and 334 unchanged. Airtel Payments Bank has partnered with Bharti AXA Life Insurance to offer Bharti AXA Life POS Saral Jeevan Bima Yojana --a pure life term plan--through its extensive network of banking points across the country. Any individual between the ages of 18 and 55 can enrol for this product without the need to undergo a medical examination. Oil and Natural Gas Corporation has signed a memorandum of understanding with IOC for CO2 based enhanced oil recovery (EOR) by injecting CO2 captured from IOC's Koyali refinery.
On Wednesday, the indices were range bound. On the NSE, there were 956 advances, 771 declines and 362 unchanged. Indiabulls Housing Finance said it is buying back NCDs maturing in September worth Rs1,375 crore and rupee denominated bonds maturing in October worth Rs 1,330 crore. The NBFC said it is going for early redemption of non-convertible debentures (NCDs) and masala bonds (rupee denominated bonds) on the back of strong cash position of the company.
The US Food and Drug Administration (USFDA) has issued a warning letter to Aurobindo Pharma on its unit XI. The warning letter is centered on the issue of the manufacture of Valsartan API. Drug firm Zydus Cadila received the final nod from the US health regulator to market its generic Misoprostol tablets used for preventing stomach ulcers. The drug will be manufactured at the group's formulations manufacturing facility at SEZ, Ahmedabad, it added.
On Thursday, the indices remained flat. On the NSE, there were 909 advances, 829 declines and 351 unchanged. Promoters of Dish TV might sell their 58% holding in the company to Bharti Airtel's DTH arm for around Rs5,000 crore, as per media reports. Airtel Digital TV and private equity firm Warburg Pincus are likely to partner and purchase the Goel family’s stake for Rs45-50 per share, or between Rs4,800 crore and Rs5,300 crore, the report said.
Shares of Quess Corp tumbled as much as 20% before closing 13% down when one of its associates in Ahmedabad smart city project was declared a defaulter. The National Company Law Appellate Tribunal (NCLAT) on July 4 rejected the plea of the Ruia family that challenged the eligibility of ArcelorMittal’s Rs42,000 crore bid for Essar Steel. The NCLAT also revised the approved claims of operational creditors to Rs19,700 crore, up from Rs5,000 crore, stating that there was a large disparity in the claims and the data provided to the NCLAT.
On Friday, the indices suffered a correction. The Union Budget 2019-20 failed to cheer the equity market as the BSE Sensex slumped over 460 points minutes after Finance Minister Nirmala Sitharaman concluded her speech. On the NSE, there were 476 advances, 1,256 declines and 348 unchanged. Finance Minister Nirmala Sitharaman has proposed to provide an income tax deduction of Rs1.5 lakh on the interest paid on loan taken to buy EVs. The buyer of an EV can enjoy a total benefit of Rs2.5 lakh over the purchase period, Sitharaman added.
The minister also proposed to increase the minimum public shareholding norms to 3%, up from 25%. The Union Budget seeks to relax local sourcing norms in foreign direct investment (FDI) for single-brand retailers. The proposal is good news for brands like Ikea, H&M, Apple, and others. More brands may join the queue if the relaxations are significant.
Yes Bank acquired over 9% stake in battery maker Eveready Industries by invoking pledged shares following loan default by a group company McLeod Russel, both part of B M Khaitan Group.