We had mentioned in last week’s closing report that Nifty, Sensex may head higher. The major indices faced heavy losses throughout the week but ended with major gains on Friday. The trends of the major indices in the course of the week’s trading was:
On Monday, the major indices ended with losses. On the NSE, there were 965 advances, 813 declines and 363 unchanged. Bayer CropScience Ltd has fixed September 26, 2019 as the record date for determining the shareholders of Monsanto India who shall be entitled to receive shares of Bayer as consideration for merger. J. Kumar Infraprojects has received contract from MMRDA for part design and construction of elevated viaduct and 2 elevated stations of Mumbai Metro Rail Project for Rs342 crores. India Ratings & Research has assigned the credit rating of 'IND A1+' to TV18 Broadcast Ltd's commercial paper programme of up to Rs750 crore.
Mindtree has signed an agreement with Atotech to help manage their SAP landscape. As part of this new agreement, Mindtree will provide the application managed services for the globally deployed SAP ERP and business warehouse systems of the Atotech Group. The board of AAVAS Financiers has approved allotment of 345 unlisted, secured, rated, redeemable, non-convertible debentures of face value of Rs1 crore each aggregating up to Rs345 crore to International Finance Corporation (IFC). The coupon is 8.39% p.a. payable half yearly. Coupon shall be paid on 15th day of March and the 15th day of September in each year till maturity.
On Tuesday, the major indices suffered major losses. On the NSE, there were 517 advances, 1,264 declines and 341 unchanged. SBI Capital, IDBI Capital, SMC Capital, PNB Investments and Elara Capital are in the fray for becoming the book running lead managers (BRLMs) to the Initial Public Offers (IPOs) of TCIL and FAGMIL and WAPCOS, sources here said on Tuesday.
The government has allowed state-owned Steel Authority of India Ltd (SAIL) to sell 25% of its iron ore production from captive mines and dispose off other low grade iron ore dust and fines accumulated over the years in the open market. The move will allow the state-owned steel major to commercially offload up to 7 million tonnes high grade iron ore and another 70 million tonnes of slime, iron ore dust and fines improve its realization. The long term credit rating of the credit facilities of Som Distilleries & Breweries Ltd's subsidiary Woodpecker Distilleries and Breweries Private Limited have been upgraded to BBB+ by ICRA as against BB+ given earlier by Brickwork Ratings.
On Wednesday, the major indices were volatile and ended with gains. On the NSE, there were 927 advances, 854 declines and 344 unchanged. Mukesh Ambani has raised promoter stake in flagship Reliance Industries by 2.71% to 48.87%, according to regulatory filing by the company. Reliance Services and Holdings Ltd, controlled by promoter group firm Petroleum Trust, acquired 17.18 crore shares or 2.71% stake in Reliance.
The board of SRF Industries (Thailand) had decided to close the operations of its technical textiles business operating out of Rayong, Thailand as it was becoming economically unviable to continue running the plant. It has been decided to close the operations there and dispose off the assets of the business. Some of the assets as may be found suitable may be purchased by SRF Limited for its Indian operations. Dilip Buildcon has announced that, the project of rehabilitation and upgradation of NH-18 to two lane with paved shoulders has been completed. The completion certificate has been and has declared the project fit for entry into operation and consequently the company is entitled to maximum bonus of Rs3.564 crore in lieu of earlier completion (60 days prior to the schedule completion date).
On Thursday, the major indices suffered major losses. On the NSE, there were 431 advances, 1,341 declines and 347 unchanged. The US Federal Reserve on Wednesday lowered interest rates by 25 basis points amid growing risks and uncertainties stemming from trade tensions and a global economic slowdown, following a rate cut in July that was its first in more than a decade.
IDBI Bank on Thursday approved the proposal for preferential issue to the government and LIC aggregating after their infusion of Rs4,557 crore and Rs4,743 crore, respectively, a total capital infusion of a little over Rs9,000 crore. In March, the Reserve Bank of India categorised IDBI Bank as a private sector lender following acquisition of majority stake by LIC. Surya Roshni Ltd has obtained order aggregating to Rs79.80 crore (GST extra) for design, manufacture supply, warranty of LED bulbs and other related works from Energy Efficiency Services Limited (EESL) on Pan India basis through competitive e-bidding.
Responding to media queries, Reliance Capital Ltd has clarified that no pledged shares of Reliance Nippon Life Asset Management Limited (RNAM) have been invoked by any lender. Further, borrowings covered under the pledged RNAM shares are matched by cash amounting to approx. Rs1,600 crore lying in escrow under tripartite agreements signed between the parties.
On Friday, the major indices rallied hugely on the back on corporate tax cuts announced by finance minister Nirmala Sitharaman. The corporate tax rate has been reduced to 22% from 30%, new manufacturing companies can pay an income tax of 15% instead of 25%, provided that they do not seek inceptives and start production before March 2023. According to the finance minister, total revenues forgone by reduction in corporate tax and other relief measures would be Rs1.45 lakh crore per year.
Announcing yet another set of incentives to boost the economy, Finance Minister Nirmala Sitharaman said that listed companies which have announced buyback before July 5 (the Budget presentation day) will not be charged tax. About a dozen companies, including technology major Infosys, which have active buyback programmes would benefit from the government's decision to not levy 20% buyback tax imposed in this year's Budget.
A consortium of 14 public sector banks, led by the Bank of India has initiated the process to recover loans totally worth Rs3,635.25 crore from a Mumbai-based defaulter, Frost International Ltd. Banking circles describe this as a revelation of one of the biggest defaulters in recent months, comparable to the league of big-time debtors like absconding diamantaires Nirav Modi, Mehul Choksi and the Sterling Biotech Group.
The board of Himatsingka Seide Ltd have approved total investment of approx. Rs17.34 crores in special purpose vehicles of Atria Wind Power Limited, Bengaluru. The company proposes to procure energy to fulfil part of the power requirements of the plants on a sustainable basis and contribute to reduction in carbon footprint. The said proposal would qualify under group captive power scheme.
Board of Strides Pharma Science approved additional investment up to a maximum of $40 million over a period of 24 months for a controlling stake in Stelis Biopharma Private Limited (Stelis). The proposed new investments will be a primary infusion into Stelis which will enable Stelis to achieve its objective of becoming a compelling global player in the biopharmaceutical space and also accelerate Strides' re-entry into sterile injectables business post the completion of the Company's non-compete period in December 2019.