Market jumps on positive global cues
Gains in global stocks triggered by a recovery in battered global commodity prices aided gains for Indian stocks last week. The Sensex rose 319.49 points or 1.25% to settle at 25,838.71. The Nifty rose 99.10 points or 1.28% to settle at 7,861.05.
The BSE Mid-Cap index underperformed the Sensex, rising 98.92 points or 0.91% to settle at 11,018.17. The BSE Small-Cap index outperformed the Sensex, rising 198.73 points or 1.72% to settle at 11,730.59.
India's stock markets will remain closed on Friday, 25 December 2015, on account of Christmas.
Trading for the week began on a positive note as gains in index heavyweights ITC and Infosys along with gains for metal stocks took key benchmark indices higher on Monday, 21 December 2015. The barometer index, the S&P BSE Sensex, rose 216.68 points or 0.85% to settle at 25,735.90. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 72.50 points or 0.93% to settle at 7,834.45. Bank stocks edged higher after the government tabled the bankruptcy bill in Lok Sabha for its discussion and passage.
Losses for metal stocks and index heavyweights ITC and Infosys pulled key benchmark indices lower on Tuesday, 22 December 2015. The barometer index, the S&P BSE Sensex, fell 145.25 points or 0.56% to settle at 25,590.65. The losses for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty fell 48.35 points or 0.62% to settle at 7,786.10.
Key benchmark indices mirrored rally in global stocks on Wednesday, 23 December 2015. The barometer index, the S&P BSE Sensex, gained 259.65 points or 1.01% to settle at 25,850.30. The 50-unit Nifty 50 index rose 79.85 points or 1.03% to settle at 7,865.95.
Key benchmark indices registered minuscule losses in a lackluster session of trade on Thursday, 24 December 2015. The barometer index, the S&P BSE Sensex, fell 11.59 points or 0.04% to settle at 25,838.71. The 50-unit Nifty 50 index fell 4.90 points or 0.06% to settle at 7,861.05.
Among the 30-share Sensex pack, 27 stocks rose and three stocks declined in the week ended Thursday, 24 December 2015.
State-run GAIL (India) was the top Sensex gainer last week. The stock rose 6.54% to Rs 362.25.
Telecom major Bharti Airtel rose 6.14% to Rs 338.75.
State-run ONGC rose 4.79% to Rs 233.95. The Cabinet Committee on Economic Affairs (CCEA) on Tuesday, 22 December 2015, gave its approval for investment of Rs 5000 crore by ONGC into the equity share capital of ONGC Videsh (OVL) by conversion of existing loan of equivalent amount into equity. The approved investment will strengthen the capital base of OVL. It will enhance the ability of ONGC to undertake overseas exploration and production (E&P) business, thereby improving the energy security of the country, a government statement released after market hours Tuesday, 22 December 2015 said.
State-run State Bank of India (SBI) rose 0.88% to Rs 228.65. SBI before market hours on Thursday, 24 December 2015, announced that the bank has raised Rs 4000 crore on private placement of Basel III compliant, Tier-II bonds with 10 year tenure, bearing 8.33% per annum coupon and with call option after 5 years.
Among private sector banks, Axis Bank (up 4.23%) and ICICI Bank (up 3.08%), edged higher. HDFC Bank fell 0.12%.
The Reserve Bank of India (RBI) in its latest Financial Stability Report (FSR) said that public sector banks (PSBs) pay out significant amounts as dividend to the government and other shareholders which have no relevance to their balance sheet strengths and capital planning. In addition to the improvement of governance processes through initiatives like 'Indradhanush', PSBs may need to review their business models and examine strategic decisions like capital structure and dividend policy, the FSR said. In August 2015, government rolled out a seven pronged plan named Indradhanush aimed at improving the performance of PSBs. It is imperative that PSBs approach their dividend decisions as strategic business decisions which are in keeping with their objective of shareholder wealth maximisation, the FSR said.
RBI said that large borrowers continued to be the biggest sore point for banks' balance sheets. In its report, RBI pointed out that PSBs were the worst hit with gross non-performing assets (GNPAs) among large borrowers showing a significant increase to 8.1% in September 2015 from 6.1% in March 2015.
RBI Governor Raghuram Rajan said in his foreword on the FSR that despite domestic inflation coming down significantly, India should not lose sight of the fact that the climatic conditions have tended to be more erratic and unpredictable. This will have an impact on the volatility of inflation and perhaps its level, Rajan said.
Tata Steel rose 3.19% to Rs 263.50. The company said that an indirect subsidiary of Tata Steel Europe announced the signing of a letter of intent with Greybull Capital for potential sale of its long products Europe business. The announcement was made after market hours on Tuesday, 22 December 2015.
Tata Steel UK (TSUK), an indirect subsidiary company of Tata Steel Europe (TSE), announced the signing of a Letter of Intent with Greybull Capital to start exclusive negotiations for the potential sale of its long products Europe business. The memorandum covers several UK-based assets including TSUK's Scunthorpe steelworks, mills in Teesside and northern France, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities. It also includes Scottish mills in Dalzell and Clydebridge which are currently being mothballed.
Mahindra & Mahindra (M&M) rose 1.08% to Rs 1,257.70. According to reports, M&M is developing petrol engines for its existing vehicles in the wake of recent temporary ban imposed by the Supreme Court on sale of large diesel cars in Delhi. It may be recalled that the Supreme court had last week imposed a ban on registration of new diesel sport utility vehicles (SUVs) and private cars in Delhi with an engine capacity of over 2000cc until 31 March 2016, to rein in the alarming pollution levels in the capital city. M&M is among the worst hit by the ban because its mainstay is diesel sport utility vehicles (SUVs) with engine capacity of more than 2,000 cc that cannot be sold in the capital until 31 March 2016.
Among two-wheeler makers, Hero MotoCorp (up 1.87%) and Bajaj Auto (up 0.40%), edged higher.
Commercial vehicles major Tata Motors rose 1.11% to Rs 382.40.
Car maker Maruti Suzuki India fell 0.56% to Rs 4,594.40.
Larsen & Toubro (L&T) rose 0.50% to Rs 1,294.50. The company said that its construction division, L&T Construction, won orders worth Rs 1178 crore across various businesses in December 2015. The company made the announcement during market hours on Wednesday, 23 December 2015.
IT major Wipro rose 0.28% to Rs 555.95. The company said it has signed a definitive agreement to acquire Viteos Group for a purchase consideration of $130 million. The announcement was made before market hours on Wednesday, 23 December 2015.
Headquartered in New Jersey, Viteos Group is a business process as-a-service (BpaaS) provider for the alternative investment management industry. Wipro said that the acquisition of Viteos will expand its capital markets portfolio in fund accounting services and enhance its business process services (BPS) capabilities. Viteos licenses its proprietary platform which offers transformation and integration post-trade operations. Wipro said that the company will be able to leverage this proprietary platform to launch solutions across other segments of capital market. These technology based solutions will bring in non-linear and higher revenue realisation for the company. The acquisition would be completed in Q4 March 2016, Wipro said. Viteos Group reported a revenue of $26.5 million in the financial year 2014-15.
Among other IT majors, Infosys (up 0.91%) and TCS (up 0.70%), edged higher.
The BSE Mid-Cap index underperformed the Sensex, rising 98.92 points or 0.91% to settle at 11,018.17. The BSE Small-Cap index outperformed the Sensex, rising 198.73 points or 1.72% to settle at 11,730.59.
India's stock markets will remain closed on Friday, 25 December 2015, on account of Christmas.
Trading for the week began on a positive note as gains in index heavyweights ITC and Infosys along with gains for metal stocks took key benchmark indices higher on Monday, 21 December 2015. The barometer index, the S&P BSE Sensex, rose 216.68 points or 0.85% to settle at 25,735.90. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 72.50 points or 0.93% to settle at 7,834.45. Bank stocks edged higher after the government tabled the bankruptcy bill in Lok Sabha for its discussion and passage.
Losses for metal stocks and index heavyweights ITC and Infosys pulled key benchmark indices lower on Tuesday, 22 December 2015. The barometer index, the S&P BSE Sensex, fell 145.25 points or 0.56% to settle at 25,590.65. The losses for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty fell 48.35 points or 0.62% to settle at 7,786.10.
Key benchmark indices mirrored rally in global stocks on Wednesday, 23 December 2015. The barometer index, the S&P BSE Sensex, gained 259.65 points or 1.01% to settle at 25,850.30. The 50-unit Nifty 50 index rose 79.85 points or 1.03% to settle at 7,865.95.
Key benchmark indices registered minuscule losses in a lackluster session of trade on Thursday, 24 December 2015. The barometer index, the S&P BSE Sensex, fell 11.59 points or 0.04% to settle at 25,838.71. The 50-unit Nifty 50 index fell 4.90 points or 0.06% to settle at 7,861.05.
Among the 30-share Sensex pack, 27 stocks rose and three stocks declined in the week ended Thursday, 24 December 2015.
State-run GAIL (India) was the top Sensex gainer last week. The stock rose 6.54% to Rs 362.25.
Telecom major Bharti Airtel rose 6.14% to Rs 338.75.
State-run ONGC rose 4.79% to Rs 233.95. The Cabinet Committee on Economic Affairs (CCEA) on Tuesday, 22 December 2015, gave its approval for investment of Rs 5000 crore by ONGC into the equity share capital of ONGC Videsh (OVL) by conversion of existing loan of equivalent amount into equity. The approved investment will strengthen the capital base of OVL. It will enhance the ability of ONGC to undertake overseas exploration and production (E&P) business, thereby improving the energy security of the country, a government statement released after market hours Tuesday, 22 December 2015 said.
State-run State Bank of India (SBI) rose 0.88% to Rs 228.65. SBI before market hours on Thursday, 24 December 2015, announced that the bank has raised Rs 4000 crore on private placement of Basel III compliant, Tier-II bonds with 10 year tenure, bearing 8.33% per annum coupon and with call option after 5 years.
Among private sector banks, Axis Bank (up 4.23%) and ICICI Bank (up 3.08%), edged higher. HDFC Bank fell 0.12%.
The Reserve Bank of India (RBI) in its latest Financial Stability Report (FSR) said that public sector banks (PSBs) pay out significant amounts as dividend to the government and other shareholders which have no relevance to their balance sheet strengths and capital planning. In addition to the improvement of governance processes through initiatives like 'Indradhanush', PSBs may need to review their business models and examine strategic decisions like capital structure and dividend policy, the FSR said. In August 2015, government rolled out a seven pronged plan named Indradhanush aimed at improving the performance of PSBs. It is imperative that PSBs approach their dividend decisions as strategic business decisions which are in keeping with their objective of shareholder wealth maximisation, the FSR said.
RBI said that large borrowers continued to be the biggest sore point for banks' balance sheets. In its report, RBI pointed out that PSBs were the worst hit with gross non-performing assets (GNPAs) among large borrowers showing a significant increase to 8.1% in September 2015 from 6.1% in March 2015.
RBI Governor Raghuram Rajan said in his foreword on the FSR that despite domestic inflation coming down significantly, India should not lose sight of the fact that the climatic conditions have tended to be more erratic and unpredictable. This will have an impact on the volatility of inflation and perhaps its level, Rajan said.
Tata Steel rose 3.19% to Rs 263.50. The company said that an indirect subsidiary of Tata Steel Europe announced the signing of a letter of intent with Greybull Capital for potential sale of its long products Europe business. The announcement was made after market hours on Tuesday, 22 December 2015.
Tata Steel UK (TSUK), an indirect subsidiary company of Tata Steel Europe (TSE), announced the signing of a Letter of Intent with Greybull Capital to start exclusive negotiations for the potential sale of its long products Europe business. The memorandum covers several UK-based assets including TSUK's Scunthorpe steelworks, mills in Teesside and northern France, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities. It also includes Scottish mills in Dalzell and Clydebridge which are currently being mothballed.
Mahindra & Mahindra (M&M) rose 1.08% to Rs 1,257.70. According to reports, M&M is developing petrol engines for its existing vehicles in the wake of recent temporary ban imposed by the Supreme Court on sale of large diesel cars in Delhi. It may be recalled that the Supreme court had last week imposed a ban on registration of new diesel sport utility vehicles (SUVs) and private cars in Delhi with an engine capacity of over 2000cc until 31 March 2016, to rein in the alarming pollution levels in the capital city. M&M is among the worst hit by the ban because its mainstay is diesel sport utility vehicles (SUVs) with engine capacity of more than 2,000 cc that cannot be sold in the capital until 31 March 2016.
Among two-wheeler makers, Hero MotoCorp (up 1.87%) and Bajaj Auto (up 0.40%), edged higher.
Commercial vehicles major Tata Motors rose 1.11% to Rs 382.40.
Car maker Maruti Suzuki India fell 0.56% to Rs 4,594.40.
Larsen & Toubro (L&T) rose 0.50% to Rs 1,294.50. The company said that its construction division, L&T Construction, won orders worth Rs 1178 crore across various businesses in December 2015. The company made the announcement during market hours on Wednesday, 23 December 2015.
IT major Wipro rose 0.28% to Rs 555.95. The company said it has signed a definitive agreement to acquire Viteos Group for a purchase consideration of $130 million. The announcement was made before market hours on Wednesday, 23 December 2015.
Headquartered in New Jersey, Viteos Group is a business process as-a-service (BpaaS) provider for the alternative investment management industry. Wipro said that the acquisition of Viteos will expand its capital markets portfolio in fund accounting services and enhance its business process services (BPS) capabilities. Viteos licenses its proprietary platform which offers transformation and integration post-trade operations. Wipro said that the company will be able to leverage this proprietary platform to launch solutions across other segments of capital market. These technology based solutions will bring in non-linear and higher revenue realisation for the company. The acquisition would be completed in Q4 March 2016, Wipro said. Viteos Group reported a revenue of $26.5 million in the financial year 2014-15.
Among other IT majors, Infosys (up 0.91%) and TCS (up 0.70%), edged higher.
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