Companies and Markets

Companies & Markets

Buy until 10,800 is not broken

The market started the week on a negative note, with the Sensex losing 217.86 points, or 0.6 per cent, to settle at 36,323.77, while the Nifty 50 Index plunged 82.05 points, or 0.74 per cent, to end at 10,936. The broader market also witnessed major selling with the BSE Mid-Cap Index down 2.4 per cent, and the Small-Cap Index down 2.5 per cent. The market breadth was negative as 2,052 shares fell on BSE,while only 546 shares rose.

Technical view

ICICI Bank postpones AGM by a month

ICICI Bank has decided to postpone its annual general meeting (AGM) by a month amidst independent enquiry conducted by Justice B N Srikrishna on alleged cases of impropriety against the bank's CEO Chanda Kochhar.

The meeting has been rescheduled to September 12 as against the earlier schedule of August 10.

"We wish to update that the change in AGM date and the consequent changes in record dates was necessitated due to the sequencing of general meeting dates within the listed entities of ICICI Group," the bank said in filings to stock exchanges.

When Elephants fight

When elephants fight, it is the grass that suffers, thus goes the saying. India too could find itself in a similar situation if the trade war escalate. Though India is unlikely to be a top target in the US trade wars, the country could suffer some damage from the one-upmanship on tariffs.

LIC board okays IDBI Bank buyout

The board of LIC on Monday approved the proposal to buy up to 51 per cent stake in IDBI Bank. The purchase is most likely through preferential issue of shares.

As on June 2018, LIC owns 7.98 per cent and the government has 85.96 per cent stake in IDBI Bank. The public shareholding is 2.91 per cent in the NPA-heavy bank. So, effectively the insurance behemoth will be acquiring 43 per cent stake in IDBI Bank.

Office assets witness inflow of `57,300 cr since 2011

The office real estate market has seen a strong demand from investors over the past few years. We have witnessed significant interest from institutions who are queuing up to lap up good quality, rent-yielding office assets. One of the reasons for this spike in demand was the acute shortage in supply of good quality large office space in top Indian cities.

Policy reforms make warehousing attractive

The warehousing industry in India is undergoing an unprecedented transformation from a mere pro-vider of storage space within four walls into a modern day warehousing hub similar to the ones in developed countries. Logistics cost in India accounts for 13–17 per cent of the Gross Domestic Product (GDP), which is nearly double (6–9 per cent) the logistics cost to GDP ratio in developed countries such as the US, Hong Kong and France. Much of the higher cost could be attributed to absence of efficient inter-modal and multi-modal transport systems.

Scouting for next set of opportunities

The investors who have exposure to retail assets across the globe and in India believe that in India, a lot can be done to enhance the shopping experience and increase the retail sales by implementing many aspects of data analytics used globally.

Making the non-performing assets (NPAs) perform

PE investments in real estate see a quantum jump

In the current decade, apart from finance from banks / Non-Banking Financial Companies (NBFCs), private equity (PE) investments have been an important source of funds for the Indian real estate sector. Private equity capital comes primarily from institutional investors and accredited investors, who can dedicate substantial sums of money for extended time periods. These include Sovereign Funds, Pension Funds, Pure Private Equity Funds and Real Estate Funds.

PE investments into real estate across debt and equity

Do not try to short the market

The market began its uptrend on a strong note on the opening day and carried the momentum through the week. The week ended with a new all-time high for the Sensex and the Nifty was slightly behind to achieve the same. The Sensex gained 883.77 points, or 2.42 per cent, to close at 36,541.63 points, while the Nifty gained 246.25 points, or 2.23 per cent, to close at 11,018.90 points.