We had mentioned in last week’s closing report that Nifty, Sensex were headed lower. The major indices of the Indian stock markets suffered a correction. The trends of the major indices in the course of the week’s trading are given in the table below:
On Monday, the major indices suffered a deep correction. On the NSE, there were 387 advances, 1,382 declines and 324 unchanged. Disappointment over the budget proposals led the Sensex to log the heaviest fall in seven months on Monday.
Shares of Punjab National Bank (PNB) fell by over 10% on Monday, two days after the bank announced that it was defrauded by Bhushan Power & Steel Ltd. (BPSL) to the tune of Rs3,805.15 crore. "On the basis of Forensic Audit Investigation findings and CBI filing FIR, against the Company and its Directors, alleging diversion of funds from banking system, a fraud of Rs3805.15 core is being reported by Bank to RBI," PNB said in a regulatory filing.
Yes Bank shares jumped 5% after it clarified about management stability and appointed two management leaders. The bank appointed Anurag Adlakha as senior group president and head financial management and strategy.
On Tuesday, the major indices opened low and closed flat. On the NSE, there were 860 advances, 871 declines and 351 unchanged. Sensex and Nifty fell during the early trade on Tuesday as the streets continued to react negatively to the Budget proposal.
Bajaj Finance reported the highest loan growth in the last 11 quarters. As per the provisional data, the non-banking finance company booked 7.3 million new loans during the quarter ended June 2019 against 5.6 million in same period last year. Bajaj Finance further said its assets under management (AUM) stood at approximately Rs1.29 lakh crore as of June 2019, up 41.30% compared to Rs91,287 crore as of June 2018. The stock bounced back 5.52% after falling over 8% yesterday.
Shares of Tata Consultancy Services (TCS) declined 2% in Tuesday’s trade ahead of the IT major's June quarter results. Shares of watch and jewellery maker Titan slipped 12% on Tuesday as rising gold prices hit quarterly sales during April-June quarter. In June, global gold prices rose 8% month-on-month which analysts believe hurt consumer demand for the precious metal.
On Wednesday, the major indices suffered a correction. On the NSE, there were 607 advances, 1,138 declines and 339 unchanged. Domestic passenger car sales continued to slump with the segment's offtake falling 24.07% in June. According to the Society of Indian Automobile Manufacturers (SIAM), passenger car sales in the domestic market dropped to 139,628 units from 183,885 units sold during June 2018. Shares of IndiGo fell 10.74% on Wednesday after the dispute between its promoters came out in the open. Gangwal lamented that IndiGo has started veering off from the core principles and values of governance that made IndiGo what it is today.
On Thursday, the major indices rallied. On the NSE, there were 912 advances, 805 declines and 368 unchanged. The Sensex and Nifty opened higher on Thursday after US Federal Reserve Chairman Jerome Powell hinted at a rate cut. Public sector Bharat Sanchar Nigam Ltd (BSNL) is in the process identifying land parcels all over the country for monetisation, which as per its internal estimate is valued at Rs20,000 crore in 2018-19.
Shares of GTPL Hathway rallied after the company reported stellar earnings performance for the quarter ended June 2019. Consolidated profit during the quarter jumped 120% year-on-year to Rs29.45 crore. Revenue from operations grew 50% to Rs445.5 crore with subscription business showing a whopping 47% growth YoY in Q1.
Vedanta Ltd on said it spent around Rs10,000 crore in FY 19 on capital expenditure. Larsen & Toubro (L&T) received orders across various business segments in the domestic and international market. Although the company did not provide value of the contracts but said the orders fall under "significant" category which ranges between Rs1,000 crore and Rs2,500 crore as per its classification of contracts.
On Friday, the major indices were volatile and closed with losses. On the NSE, there were 883 advances, 847 declines and 357 unchanged. Sensex and Nifty traded slightly lower during the early trade on Friday ahead of the release of key data points, Consumer Price Index (CPI) and Index of industrial production (IIP).
State-run lenders currently under the RBI's Prompt Corrective Action (PCA) framework may not be allowed to buy the pooled retail assets of non-banking finance companies (NBFCs) under the scheme announced in the Budget, official sources said. This would leave space for only SBI, Canara Bank, Bank of India, Bank of Baroda to make such purchases.
In the Budget 2019-20, the Centre has allowed a one-time, partial credit guarantee of six months to public sector banks (PSBs) on their first loss of up to 10% for purchase of high-rated pooled NBFC assets of Rs1 lakh crore.
Textile firm KPR Mill withdrew buyback proposal due to the tax proposed on buyback obligations in the Finance Bill 2019. The company had proposed (on 18 April 2019) and approved (on 30 April 2019) buyback of 3.75 million equity shares, representing 5.17% of the total share capital, at a price of Rs702 per share for a consideration not exceeding Rs263.31 crore.
Religare Enterprises on Thursday announced that it has entered into a binding term sheet with TCG Advisory Services Pvt Ltd for sale of its entire stake in its NBFC arm, Religare Finvest Ltd (RFL), along with RFLs housing finance subsidiary, Religare Housing Development Finance Corporation (RHDFC).