Companies and Markets

Companies & Markets

Commexes to have three classes of commodities

Aiming to reduce price fluctuations, market regulator Sebi has asked exchanges to create three categories for agriculture commodities. The watchdog will introduce limits that investors can hold for each one.

Commodities will be classed as sensitive, broad and narrow, based on the frequency of government interventions in market and overall availability, the Securities and Exchange Borad of India (Sebi) said on Tuesday.

Tyre stocks rev up on proposed dumping duty

The proposed imposition of anti-dumping duty on import of truck and bus radial tyres from China has cheered up tyre stocks in India.

In a six-month time frame, tyre stocks, including MRF, CEAT and Balkrishna Industries, have all gained 45-70 per cent due to high earnings visibility and consumer nature of the business.

These stocks, according to market reports are now trading at 18-23 times their earnings. Other tyre stocks like JK Tyre and Apollo Tyres have been still trading cheap and appear to be due for re-rating.

Liquidity driving the market. DIIs, FIIs are strong. Yet, it isn’t in bubble territory

With benchmark indices touching fresh all-time high levels, around 150 stocks hit their fresh 52-week highs and around 50 scrips rose to record high levels on BSE. A total of 2,902 stocks are traded in BSE.

On NSE, 83 of the 1,757 stocks hit their 52-week highs.

While the index heavyweights have been pivotal in benchmark indices creating new lifetime highs, stocks in the broader market too are recording big gains.

Nomura India fund zooms to $3.6b as Japan bets on Modi

The land of Abenomics is betting on Modinomics.

The demand is so strong that assets of Nomura Holdings Inc’s India equity fund quadrupled to almost 400 billion yen ($3.6 billion) in just the past year. Japanese investors owned $13 billion of Indian stocks and bonds at the end of June, the most in data going back to 2012, according to markets regulator Sebi.

Market overheated, needs to cool off

The third week of July was a totally different compared to the earlier two. One stock, ITC, corrected sharply and took the momentum away from the bulls. ITC was down sharply at Rs 276.90 intraday on Monday, a loss of Rs 48.80 before recovering to close at Rs 288.50, a net loss of Rs 48.70, or 14.44 per cent. This ensured that the market ended virtually flat for the week, gaining a mere 8.14 points, or 0.03 per cent, on the Sensex.

Nifty may breach 10,000 this week on RIL buoyancy

The Nifty-50 Index could finally touch the 10,000 milestone this eventful week, which will see the futures & options derivative contracts expiry on Thursday, the US Fed meeting on July 25-26 and first quarter earnings reports of many index heavyweights.

I-T to sell 9.8% Cairn Energy stake in Indian subsidiary

The income tax (I-T) department has firmed up its plan to attach and sell the 9.8 per cent stake the Scottish oil explorer still holds in Cairn India even after selling the erstwhile subsidiary to Vedanta. The move comes even as Cairn Energy has pinned its hope on a favourable order from arbitration panel early next year over its tax dispute in India.