Companies and Markets

Companies & Markets

Festive spirit seeping in

The duty cut on petrol and diesel and some relaxation in personal insurance cover (PAC) rules have lifted the spirit of auto dealers during Navratri. Though it is still early to draw conclusions about festive cheer in the market, a marked improvement in sales and dealer sentiment was witnessed in the initial days of the nine-day festival, according to a report.

ArcelorMittal offers Rs 4,554 cr to settle Galva, Petron dues against Rs 7K cr put in escrow

ArcelorMittal has reportedly offered to pay Rs 4,554 crore to settle dues of Uttam Galva Steels and KSS Petron, after the Supreme Court had asked Laksmi Mittal-led company and Numetal to clear their dues to become eligible to bid for Essar Steel.

The court of October 4 had given both companies two weeks to comply.

ArcelorMittal made the offer in reply to a mail sent by the committee of creditors (CoC) of Essar Steel lenders to the Luxembourg-headquartered multinational.

SJM fears BAT may gobble up ITC; writes to PM

The increased risk of ITC management takeover by shareholder British American Tobacco Company (BAT) has dented the morale of India Inc. BAT already holds 29.60 per cent stake in the ITC, which has diversified into a range of sectors such as FMCG, apparel, hotels, specialty papers, packaging, agri-business and information technology . The share of domestic financial institutions has come down to 30.4 per cent at present from 32 per cent earlier.

Momentum to bulls if VIX falls below 17

Even though India Vix is cooling off for the last few trading days, traders are expecting volatility to continue for the short term. India VIX fell sharply by 8.03 per cent to 17.37. According to analysts, falling volatility is giving comfort to the bulls and a hold below 17 could extend its positive momentum and Nifty’s 10,650 level is seen as stiff resistance levels. The index recently recovered by around 400 points from its support and swing lows in the 10,200-10,138 zone. Now the next medium-term hurdle is seen at the 200-SMA at 10,800, analysts said.

DIVIDEND STOCKS PROVIDE SOME CUSHION AGAINST VOLATILITY

The smart money seems to be moving to dividend yield stocks as the domestic market is getting into a volatile phase. Investors, however, are sceptical of high dividend paying PSU stocks as these companies face the risk of the government draining their cash through buybacks.

Experts said dividend yield stocks is the best defensive strategy for conservative investors as pain in these stocks during downtrend is less as they tend to find support on renewed buying.

Tata Steel to match JSW bid for Bhushan Power

Taking an aggressive stance, Tata Steel plans to match the highest bidder in the race for debt-ridden Bhushan Power & Steel (BPSL) as it looks to retain control of Singhal family’s erstwhile companies.

Support seen at 10,300

The market ended higher in a volatile day of trade with the Sensex ending 131.52 points, or 0.38 per cent, higher to settle at 34,865.10. The index ro­se 275.07 points, or 0.79 per cent, at the day's high of 35,008.65. And fell 173.60 points, or 0.50 per cent, at the day's low of 34,559.98. The Nifty 50 Index rose 40 points, or 0.38 per cent, to settle at 10,512.50. The BSE Mid-cap Index rose 0.62 per cent, while the Small-cap Index rose 1.37 per cent.

Technical view

CCI clears acquisition of Star Health by Safecrop

The Completion Commission said it has approved the acquisition of Star Health and Allied Insurance Company by Safecrop Holdings, a consortium of WestBridge AIF, investor Rakesh Jhunjhunwala and Madison Capital.

The consortium in August had signed definitive agreements with the shareholders of Star Health to purchase the shares of leading private insurer.

In a tweet, the Competition Commission of India (CCI) said it has approved "100 per cent acquisition of Star Health and Allied Insurance Company by Safecrop Holdings and others."

Risks to NBFCs from liquidity stress: moody’s

The prolonged liquidity stress in India’s capital markets, triggered by IL&FS defaults, is a significant risk for the non-bank financial companies (NBFCs), says a Moody’s report.

Liquidity tightness could lead to sharply higher financing costs or even difficulty in rolling over liabilities for NBFCs as they rely heavily on market borrowing to fund asset growth, says the report, released on Monday by Moody's Investors Service.

The persistent stress on NBFCs would erode their credit standing and pose threat to the broader economy.

Pages