We had mentioned in last week’s closing report that Nifty, Sensex were in the grip of bulls. The major indices of the Indian stock markets were range-bound during the week and closed with small gains on Friday over last Friday’s close. The trends of the major indices during the course of the week’s trading are given in the table below:
The benchmark Sensex jumped over 300 points higher, while the Nifty crossed the 10,500 mark during the morning trade session on Monday.
The country's largest life insurer Life Insurance Corporation (LIC) may propose a timeline of 3-5 years for cutting down its stake in the recently acquired IDBI Bank to comply with insurance regulator’s norm of 15% stake in a listed investee firm.
The major indices of the Indian stock markets rallied on Tuesday and closed with gains over Monday’s close. On the NSE, there were 924 advances, 827 declines and 338 unchanged. Despite witnessing volatility throughout the session, key equity indices advanced for the seventh straight day over sustained inflow of foreign funds and firm global markets. Almost all the Asian markets closed on a positive note while the European indices such as CAC 40 and FTSE 100 traded in the green.
The S&P BSE Sensex closed 268.40 points or 0.70% higher at 38,363.47, while the broader Nifty finished 70.20 points or 0.61% higher at 11,532.40. Among the top gainers were ITC, NTPC, HCL Technologies, Reliance Industries and Bharti Airtel were among the top gainers on the Sensex in the range of 1.81% to 2.45% while Bajaj Finance, Vedanta, Coal India, Bajaj Auto, Maruti Suzuki, Larsen & Toubro and Hero MotoCorp were the losers on the index (lost in the range of 0.15% to 2.10%).
The US Citizenship and Immigration Services (USCIS) would start accepting new H1-B visa petitions for the fiscal year 2020 starting April 1, the media reported. The employment start date for these visas would be October 1, the American Bazaar daily reported on Monday.
Muthoot Capital Services Ltd (MCSL), the non-banking finance company (NBFC), announced conclusion of a Rs236 crore two-wheeler securitisation deal with HDFC Mutual Fund (HDFC-MF). "This deal is one of the largest securitisations deals in the two-wheeler finance space and the biggest securitisation transaction so far for MCSL," a company statement said. "HDFC-MF subscribed to the entire issuance. The underlying loan pool received from Crisil an AA rating, a significant achievement in this asset class," it said. Muthoot Capital, the micro-financing arm of the Muthoot Pappachan group, is primarily into auto-finance business. Securitisation refers to transactions wherein a lender sells a portfolio of future receivables, and has recently become a preferred mechanism for NBFCs to raise funds. Muthoot Capital has a portfolio of around Rs2,600 crore with 7 lakh customers, spread across 18 states, the statement added.
The major indices of the Indian stock markets were range-bound on Wednesday and closed with marginal gains over Tuesday’s close. On the NSE, there were 667 advances, 1,086 declines and 332 unchanged.
The State Bank of India will auction non-performing assets (NPAs) amounting to Rs6,169 crore in the next 10 days to recover its dues from various defaulting business outfits. The country's largest lender carries out auctions of financial assets of those defaulters who have not paid their dues. From March 22-30, the bank, which has already put out a list of the assets, will auction these to asset reconstruction companies (ARCs), banks, non-banking financial companies (NBFCs) and FIs.
The assets include Jain Infraprojects Ltd, Kamachi Industries Ltd, Parenteral Drugs, which will go on sale on March 22. The total outstanding of this sale, which also includes a few minor properties, is Rs1,300 crore. On March 26, the bank has put on sale assets worth Rs3,645 crore of some big accounts like the India Steel Corporation (Rs929 crore) and Jai Balaji Industries (Rs859 crore). There are other companies also on sale like Kohinoor Planet Construction (Rs207.77 crore) and Mittal Corp (Rs859.33 crore). The SBI will also auction assets worth Rs1,748 crore of BMM Ispat Ltd. On March 29, the bank will sell assets worth Rs776 crore where Yashasvi Yarns, Sumita Tex Spin, Shekhawati Poly-yarn Ltd and Shakumbhari Straw NPAs stand at Rs305 crore.
The Punjab National Bank (PNB) stock surged over 4% on Wednesday following the arrest in the UK of Nirav Modi, who is accused in the Rs13,500- crore PNB fraud case reported last year. After rising over 4% in afternoon trade, the PNB stock closed on Wednesday at Rs93.55 share, up Rs3.05, or by 3.37%. Official sources said the fugitive diamantaire was arrested in London more than a year after he fled India. UK Police made the arrest seven days after the London Westminster Court issued an arrest warrant against Modi. The Interpol had issued a Red Corner Notice against Nirav Modi in July 2018 at the request of the Enforcement Directorate (ED) and the Central Bureau of Investigation.
On Thursday, the stock markets were closed for trading on account of Holi.
The Sensex reversed early gains and closed lower on Friday, as investors took to booking profit after gaining for eight straight sessions. All sectors, except real estate index, on the NSE ended in the red. The Nifty banking index which touched an all-time high also succumbed to the overall decline. The BSE Sensex closed 222.14 points lower at 38,164.61 while the Nifty declined by 64.15 points or 0.56%. Nair also added that global bond yields were on decline as global central banks were tweaking their monetary policy to support growth. This is likely to benefit emerging markets like India in the medium term.
The Bank of Baroda may get Rs5,000 capital infusion from the Finance Ministry ahead of its united operations as a merged entity along with the Vijaya Bank and Dena Bank from April 1. In February, the government approved Rs48,239-crore recap bonds in 12 PSBs.
The government has so far pumped Rs1.90 lakh crore into PSBs since it announced the recapitalisation plan in October 2017. The Finance Ministry has kept around Rs5,000 crore as buffer for any last-minute contingency, for possible infusion into the merged entity of Bank of Baroda, Dena Bank and Vijaya Bank.
The merger will create India's third largest bank with a total business of over Rs14.82 lakh crore. When the three banks are merged, the combined entity's capital adequacy ratio will be at 12.25%, with tier-1 capital at 9.32% and net non-performing assets at 5.71%. The merged entity will have nearly 9,500 branches. Bank of Baroda shares closed at Rs119.95, down 4.19% on the NSE. Vijaya Bank shares closed at Rs46.10, up 2.67% on the BSE.