Companies and Markets

Companies & Markets

Federal Bank net profit up 31% on better asset quality

Kerala-based Federal Bank on Monday reported a 31 per cent jump in its September quarter net at Rs 263.70 crore on core income growth and better asset quality in corporate loans.

The Kochi-headquartered bank had registered a net profit of Rs 201.24 crore in the September quarter last year. It, however, reported a spurt in retail and agriculture loans slipping into the non-performing assets category due to a slowdown and expectations of farm loan waivers.

China offers to buy 5% of Saudi Aramco directly

China is offering to buy up to 5 per cent of Saudi Aramco directly, sources said, a move that could give Saudi Arabia the flexibility to consider various options for its plan to float the world’s biggest oil producer on the stock market.

Chinese state-owned oil companies PetroChina and Sinopec have written to Saudi Aramco in recent weeks to express an interest in a direct deal, industry sources told Reuters. The companies are part of a state-run consortium including China’s sovereign wealth fund, the sources say.

Stocks close at record high on IMF chief’s comments, macro data

Encouraging economic data, good quarterly results by early birds and positive comments by the IMF chief over the weekend has helped the stock market on Monday.

The slew of good news beat prevailing pessimism over slower economic growth and took benchmark indices to record highs at the start of the Diwali week.

The Nifty-50 closed at new record high of 10,230.85, surpassing its previous closing high of 10,167.45 last Friday with all round gains and telecom stocks outperformed the market.

Wealth erosion risk seen as savers chase stock rally

Indians pouring record amounts of their savings into a stock-market rally risk getting burned. Earnings per share at companies in the NSE Nifty 50 Index have stagnated since the run up to the 2014 elections, which triggered a surge in equity prices. The index has risen 50 per cent over the same period. Bridging the gap won’t be easy after already-slowing economic growth was slugged by prime minister Narendra Modi’s demonetisation drive late last year and the disruptive roll out of a goods and services tax this July.

Rupee logs 6th straight gains, jumps 19 paise to 3-week high

The rupee continued its stellar rally for the sixth-straight day and ended at more than three- week high of 64.74 a dollar, surging by 19 paise helped by extremely bullish macro indicators.

The overall forex market sentiment got a boost from upbeat export data and narrowing of trade deficit coupled with softening inflation.

The record rally in domestic equities too helped the rupee.

Enjoy festivities and use sharp rallies to book profit

Diwali has come to the bourses a week in advance. The Nifty hit a lifetime high at 10,191.90 points while the Sensex needs to gain another 250 odd points to do so. The market gained across the board and the Sensex was up 618.47 points, or 1.91 per cent, to close at 32,432.69 points. The Nifty gained 187.75 points, or 1.85 per cent, to close at 10,167.45 points. There were no sectoral losers on the BSE.

IndusInd deal values BFIL at 11% premium

Private lender IndusInd Bank will acquire Bharat Financial Inclusion (BFIL) in an all share deal which values India’s second largest micro finance company at 11 per cent premium. The share swap ratio is favourable for Bharat Financial Inclusion, said analysts.

Bharat Financial shareholders will get 639 shares of the bank for every 1,000 held and effectively values BFIL at Rs 15,487 crore, or Rs 1118 per share, versus its Friday close of Rs 13,897 crore or Rs 1003 per share.

Real estate stocks give handsome returns despite troubles

Real estate stocks are having a relatively decent run in the market with the BSE Realty index outperforming benchmark indices like the Nifty-50 and the Sensex by a huge margin over the past few months.

The S&P BSE Realty index has gained 40.2 per cent and 23.7 per cent over the past one year and six months, respectively, while the Nifty rose 18.6 per cent and 11.10 per cent during the same period.

Forex reserves fall by USD 862.2 mn to USD 398.794 bn

The country's foreign exchange reserves declined by USD 862.2 million to USD 398.794 billion in the week to October 6 due to fall in foreign currency assets, RBI data showed.

In the previous week, the reserves had fallen by USD 2.590 billion to USD 399.656 billion. It had touched a lifetime high of USD 402.509 billion in the week to September 15.

The foreign currency assets (FCAs), a major component of the overall reserves, decreased by USD 1.391 billion to USD 373.795 billion, the data showed.