Nifty, Sensex on an Uptrend – Weekly closing report

We had mentioned in last week’s closing report that Nifty, Sensex were deeply oversold but were showing no sign of bounce back. The major indices of the Indian stock markets rallied strongly during the week and closed with weekly gains of around 5% on Friday over last Friday’s close. The trends of the major indices in the course of the week’s trading are given in the table below:

 

 
The major indices of the Indian stock markets rallied on Monday and closed with gains over Friday’s close. On the NSE, there were 1,339 advances, 404 declines and 325 unchanged.
 
The key domestic indices -- the S&P BSE Sensex and NSE Nifty50 -- gained over 1.50% on Monday. All the 19 sectors on the BSE gained, with banking and finance counters leading. Gains were witnessed in export-oriented stocks like healthcare and IT (information technology) counters.
 
Sundram Fasteners reported Q2 FY19 standalone results of total revenue at Rs1,001.61 crore (Rs818.45 crore), up 22.4% year-on-year. Profit after tax was at Rs110.22 crore (Rs90.43 crore), up 21.9% year-on-year. Earnings per shares were at Rs5.25 (Rs4.30). Interim dividend of Rs2.00 per share was declared. 
 
Century Textiles reported Q2 FY19 standalone results which included Income from operations at Rs2,088.89 crore (Rs1,821.69 crore), up 14.7%  year-on-year. Net profit was at Rs156.52 crore (Rs52.78 crore), up 196.6% year-on-year. Earnings per share were at Rs14.01 (Rs4.72). 
 
The major indices of the Indian stock markets were up for most of the day on Tuesday but ended lower. On the NSE, there were 1,033 advances, 678 declines and 346 unchanged.
 
Barring the metal, oil and gas and energy sectors, all the other counters were in the green on BSE, led by IT (information technology), capital goods and TECK (technology, entertainment and media). According to analysts, the markets on Tuesday showed signs of settling down after it was over-sold for the past few weeks. "Broadly the trend is still negative. Today the Asian markets are positive but the US stocks are down," pointed out market analysts.
 
 Finance Minister Arun Jaitley on Tuesday held the central bank responsible for the mountain of bad loans, saying the Reserve Bank of India (RBI) looked the other way when banks lent indiscriminately during 2008-14 to keep the economy humming. Jaitley's comments reflect a growing tension between the RBI and the government.
 
ABB India reported Q2 FY19 results including total revenue at Rs2,515.36 crore (Rs1,923.40 crore), up 30.8% year-on-year. Profit after tax was at Rs108.34 crore (Rs83.39 crore), up 29.9% year-on-year. Earnings per share were at Rs5.11 (Rs3.94). 
 
The major indices of the Indian stock markets rallied on Wednesday and closed with gains over Tuesday’s close. On the NSE, there were 1,143 advances, 597 declines and 318 unchanged.
 
Automobile major Tata Motors announced the roll-out of its first SUV "Harrier" from its all-new manufacturing line. "Tata Harrier needed a completely new approach to product development and manufacturing processes," the company said in a statement. 
 
RP-Sanjiv Goenka Group's Phillips Carbon Black Ltd (PCBL) is at an "advanced stage" of finalising a site in one of the southern states for its Rs600 crore greenfield project, Group Chairman Sanjiv Goenka said.
 
The major indices of the Indian stock markets were range-bound on Thursday and ended flat over Wednesday’s close. On the NSE, there were 1,134 advances, 596 declines and 329 unchanged.
 
Despite firm global cues and a slight recovery in the domestic currency, the key equity indices traded flat during the afternoon session of trade on Thursday as investors remained cautious ahead of key macro-economic data release and tension between the RBI and government. Export-oriented stocks, IT (information technology) and healthcare struggled as the rupee recovered to around 73.79 a US dollar from Wednesday's close of 73.95. Buying was witnessed in banking, finance and capital goods counters on BSE.
 
A faster rise in demand accelerated the pace of India's manufacturing sector output in October, key economic data released on Thursday showed. According to the Nikkei India Manufacturing Purchasing Managers' Index (PMI), the composite indicator of manufacturing performance increased to 53.1, from 52.2 in September. An index reading of above 50 indicates an overall increase in economic activity, or growth, and below 50 an overall decrease.
 
Revenue collections under the Goods and Services Tax (GST) crossed the Rs 1 lakh crore mark in October, Finance Minister Arun Jaitley said on Thursday.
 
Global IT (information technology) company Tata Consultancy Services announced the acquisition of W12 Studios, an award-winning digital design studio based in London, for an undisclosed sum.
 
The major indices of the Indian stock markets rallied strongly on Friday. On the NSE, there were 1,102 advances, 616 declines and 339 unchanged.
 
The 30-scrip S&P BSE Sensex on Friday opened in the positive territory owing to the recovery in rupee and ease in the crude oil prices. Buying was witnessed in all sectors on BSE led by finance, banking and auto counters. NSE was up 1.66%, Sensex rallied 1.68% and Bank Nifty went up 1.49%.
 

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COMMENTS

Chandrakant

1 week ago

Really useful!

Rs20 crore Diwali gift! V Vaidyanathan of Capital First gifts personal shares to colleagues, close relatives and family staff
Capital First's founder and chairman V Vaidyanathan has gifted 4.29 lkah shares, worth over Rs20 crore from his personal stake to 26 of his colleagues, three former employees, 10 close relatives and five of his personal staff including house help and drivers. This is a gesture of gratitude to his colleagues, close relatives and personal staff, who stood with him in all the ups and downs of building the Capital First brand. 
 
In a regulatory filing, Capital First says, "He (Mr Vaidyanathan) has expressed that he is extremely grateful to all people mentioned in the note for building the organisation since practically its start-up stage in 2010, to its current position of strength. The company is now on the threshold of a merger with an existing bank, and such merger is a significant milestone because of access to a bank platform. Hence before the start of the new journey, as an expression of thanks, he has gifted 11,000 fully paid up shares to each of the 26 said employees, totalling to 2,86,000 shares of Capital First held by him in his personal capacity." 
 
The 26 employees of Capital First, who had received the Diwali gift from the company chief, include Apul Nayyar, Nihal Desai, Pankaj Sanklecha, Pradeep Natarajan, Adrian Andrade, Shikha Hora, Ashok Patil, Jeetinder Diwan, Mahesh Dholiya, Rahul Jain, Rishi Mishra, E Narayanan, Mahesh Payannavar, Saptarshi Bapari, Sunil Biyani, Swetha Shetty, Amitish Misra, Nilesh Doshi, Satish Gaikwad, Nripendra Singh, Sachin Agarwal, Daryl Dsouza, and Rahul Ghule. Three people, who are not working at Capital First, also received the Diwali gift from Mr Vaidyanathan. This includes Amit Mande, Reshma Narang and Shakil Khan. Mr Nayyar and Mr Desai are executive directors of Capital First. 
 
The filing also added that "Mr Vaidyanathan is extremely grateful to 10 of his close family members and has transferred to them an aggregate of 1,10,500 fully paid up equity shares. It is clarified by Mr Vaidyanathan that none of the recipients are his heirs or successors. Mr Vaidyanathan has also expressed his extreme gratitude to five of his personal staff and has gifted them an aggregate of 32,500 fully paid up Capital First shares," the company added.
 
His close family members, who received his largesse include his two brothers, group captain Satyamurthy Vembu and Krishnamurthy Vembu and sister Savitri Krishnamurthy and seven relatives from his spouse’s side, including Mr Vaidyanathan’s father in law and sister in law. Mr Vaidyanathan's personal staff received 6,500 shares of Capital First.
 
Capital First is on the threshold of a merger with IDFC Bank. Last month, shareholders of Capital First, Capital First Home Finance and Capital First Securities Ltd have approved the amalgamation. Post merger, Rajiv Lall, managing director and chief executive of IDFC Bank will become non-executive chairman, while Mr Vaidyanathan will be the new MD and CEO of the bank. 
 
Mr Vaidyanathan founded Capital First by first acquiring an equity stake in an existing non-banking finance company (NBFC), and then executing a management buyout (MBO) by securing an equity backing of Rs810 crore in 2012 from PE Warburg Pincus. The MBO included buyout of majority and minority shareholders through open offer to public, raising fresh capital of Rs100 crore, reconstitution of the board of directors, change of business from wholesale to retail lending and creation of a new brand ‘Capital First’. 
 
Between March 2010 to March 2018, Mr Vaidyanathan has grown retail financing book of Capiutal First Rs25,243 crore ($3.88 billion) from Rs. 94 crores ($14 million). During this period, the company’s capital increased to Rs2,618 crore ($402.70 million) from Rs690 crore ($106 million) while its market cap jumped to Rs6,096 crore ($940 million) from Rs790 crore ($122 million).
 
As on September 2018, Capital First had an asset under management (AUM) worth Rs32,000 crore. During FY2018, the company had recorded a net profit of Rs327.4 crore and has received recognition from across the world. 
 
Post the Diwali gift, Mr Vaidyanathan’s stake in Capital First has come down to 36.11 lakh shares in his personal capacity and 4.94 lakh shares as trustee of Rukmani Social Welfare Trust. 
 
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COMMENTS

RAVINDRA PRABHAKAR JOSHI

3 days ago

What a wonderful example of values learnt, applied. Our culture examplified ! Salute to Mr. Vaidyanathan.

Fineotex Chemicals: Shoddy Copy-paste, Too Low Employee Count and Many Other Issues
We were attracted to analysing this company due to the financial performance that it has delivered over the past five years. But, after going through just two annual reports, we found a number of things that just didn’t add up. Going ahead, we were struck not by the business and financial performance of the company but the multiple instances of copy-pasting, inaccurate information, etc,...
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