Companies and Markets

Companies & Markets

NSE moves court, but SGX says it will list Indian equity derivatives

Singapore Exchange (SGX) on Tuesday said it will list new India equity derivatives products in June despite NSE dragging the overseas bourse to court for an interim injunction on the new products.

The leading Indian bourse is making an effort to stop SGX from launching derivatives which could replace its Nifty 50 index.

"SGX has been notified by the National Stock Exchange of India (NSE) of an application made in the Bombay High Court for an interim injunction on our new products," the overseas exchange said in a statement.

DHFL raises over Rs 10,000 crore on day 1

High interest-bearing non-convertible debentures (NCDs) of Dewan Housing Finance Corporation (DHFL) was lapped up by the market, signalling good latent demand for such debt issues.

DHFL’s NCD issue, having a base issue size of Rs 3,000 crore with a green shoe option of Rs 9,000 crore, got subscriptions for Rs 10,234.47 crore on the first day of the issue on Tuesday. The AAA-rated NCDs offer coupon rates between 8.9 and 9.10 per cent.

Uptrend in mid-cap being challenged

After four years of dream run, mid-cap stocks seem to be heading towards a bearish phase, having retraced more than 14 per cent and broken down key support levels.

The small-cap stocks have already stepped into the bear zone, having retraced more than 20 per cent from their mid-January high. A 20 per cent drop in an index or stocks from a recent high is considered a bear market phase.

The mid-cap and small-cap indices are down roughly 9 per cent and 8.5 per cent in May alone.

CCI okays $66 billion Bayer-Monsanto deal

Fair trade regulator CCI has approved the German giant Bayer's proposed $66 billion acquisition of US-based biotech firm Monsanto, subject to certain modifications to the long-pending deal.

According to regulatory officials, the transaction will need to be modified by way of divestitures and behavioural remedies as required by the Competition Commission of India (CCI).

Market to stay weak

The market snapped its five-day losing streak and closed with gains. The Sensex closed 35 points higher, or 0.10 per cent, at 34,651 while the Nifty ended at 10,537, up 20 points, or 0.19 per cent. Among the sectors on the BSE, Auto rose 1.7 per cent, followed by Metal 1.5 percent and Realty 1.2 per cent. Top Sensex gainers included names like Dr Reddy’s Laboratories (up 6.3 per cent), Tata Motors (3.7 per cent), SBI (3.6 percent), Bajaj Auto (3.3 per cent), and Coal India (3.2 per cent).

Technical view

Outcome of Fortis EGM awaited

An extraordinary general meeting of the shareholders of cash-strapped Fortis Healthcare was held at the Air force Auditorium on Tuesday morning to vote on a call for removal of four directors given by two institutional investors.

SBI reports Rs 7,718 cr loss in Q4; analysts say worst is over

State Bank of India (SBI) on Tuesday reported a net loss of Rs 7,718 crore for the January-March period of the last financial year due to higher provisions for bad loans. The good news, however, is that the bank projected a recovery over the next two years.

“Last year was a year of despair. This year is a year of hope, and next year will be a year of happiness,” SBI chairman Rajnish Kumar told reporters.

SBI shares ended at Rs 254.15, up 3.69 per cent, on the BSE.

Essar Steel insolvency: NCLAT orders status quo

The National Company Law Appellate Tribunal (NCLAT) on Tuesday ordered a status quo on insolvency of Essar Steel for two months as it admitted petitions of NuMetal and ArcelorMittal over the bidding eligibility. The NCLAT directed the resolution professional (RP), committee of creditors (CoC) and the NCLT not to pass any order in the ongoing insolvency process of Essar Steel, including liquidation of the debt-ridden firm till its further order.

SGX to launch Indian derivatives despite legal move by NSE

Singapore Exchange Ltd (SGX) said it plans to list new India-related equity derivative products in June despite the National Stock Exchange of India (NSE) applying for an interim injunction in a Mumbai court against their launch.

NSE’s legal move and SGX’s response intensify the spat between the two exchanges after India’s three main bourses unexpectedly announced in February they would stop licensing their indexes to foreign bourses from August.

Sensex opens in green on value-buying, up 83 points

The BSE Sensex rebounded over 83 points in opening trade today, breaking its five-session losing streak on value-buying in select blue-chips amid a strengthening rupee.

Overseas, most Asian shares were trading higher, tracking strong closing in the US market overnight as investors applauded easing of trade tensions between the US and China, traders said.

The 30-share BSE index jumped 83.74 points, or 0.24 per cent, to 34,699.87 in early trade.

The NSE Nifty too rose by 24.25 points, or 0.23 per cent, to 10,540.95.