Companies and Markets

Companies & Markets

Time seems ripe for a rally to begin

The week began on a positive note and the market gained and lost on alternate days, till Thursday and Friday. These two days turned the market topsy-turvy and saw huge volatility.

The market saw the Sensex lose 759 points on Thursday and gain 732 points on Friday. The Nifty similarly lost 225 points and gained 237 points. The net change during the week saw the Sensex gain 356.59 points, or 1.03 per cent, to close at 34,733.58 points, while the Nifty gained 156.05 points, or 1.49 per cent, to close at 10,472.50 points.

FPIs pull out Rs 26,600 cr in two weeks

Foreign investors have pulled out close to Rs 26,600 crore ($3.6 billion) from capital markets in the first two weeks of this month on unabated fall in rupee and rising crude oil prices and US treasury yields.

This is much higher than the over Rs 21,000 crore net outflow seen in entire September. Prior to that, overseas investors had put in a net amount of Rs 7,400 crore in the capital markets (both equity and debt) in July-August.

Irdai draft on reinsurance norms likely next month

Insurance watchdog Irdai is likely to come up with its much-awaited draft on new reinsurance norms by next month for global reinsurers.

Among the set of new norms, the Insurance Regulatory and Development Authority of India (Irdai) is expected to highlight the norms of ‘right of first refusal’ — the norm that will favour the ongoing businesses of state-run reinsurer GIC Re. Irdai approved the Reinsurance Act in its last board meeting in Hyderabad on September 28.

E-commerce companies fight it out on discounts and offers

Since 2014, limited-period festive season sales by Amazon and Flipkart have become much-awaited events. The offers and discounts are getting bigger and better year after year. Apart from the two biggies, other e-commerce players are also innovating to stand out in the melee.

Industry expects the five-day festive season sales in October to garner a GMV f $2.5 to 3 billion, for which the ecosystem will be investing more than $1 billion. In GMV terms, this will be the biggest season for e-commerce companies. 

BoB chief ayakumar gets 1-year extension

Bank of Baroda's (BoB) managing director and chief executive officer P S Jayakumar (in pic) was on Thu­rsday given one-year extension, an order issued by the personnel ministry said. Jayakumar, a chartered accountant by qualification, had joined BOB in October, 2015. The appointments committee of the cabinet has approved extension in tenure of Jayakumar for a period of one year, that is till October 12, 2019, beyond his currently notified period of appointment of three years that expires on October 12, 2018, it said.

Pullback to extend towards 10,540

Negative global cues led to more than 2 per cent fall in the benchmark indices Sensex and Nifty. The Sensex drop­ped 1,037.36 points, low­er at 33,723.53, in early trade before a partial recovery. The US market tu­rmoil first impacted Asian markets and then contagion spread to the Indian market as it opened on Thursday. The Sensex finally closed at 759.74 po­ints, or 2.19 per cent, to close at 34,001.15, while the Nifty 50 Index closed 225.45 points, or 2.16 per cent, down at 10,234.65.

Icai sets up panel to study systemic issues in IL&FS crisis

Chartered accountants' apex body Icai on Thursday said it has constituted a nine-member panel to study the systemic issues in the IL&FS crisis, amid the government intensifying efforts to address the problems at the diversified group.

The setting up of the committee by the Icai comes days after it sought explanation from audit firms that carried out statutory audit works at the IL&FS Group in the past few years.

JSW Energy to up ante in Prayagraj Power bid

JSW Energy plans to take its battle with the Tatas for control of Prayagraj Power Generation to the NCLT once the creditors begins bankruptcy proceedings against the stressed power project.

JSW Energy chief operation officer Sharad Mahendra said that the company remained interested in projects having proper fuel linkage and power purchase agreements (PPAs) and Pra­y­agraj Power falls in that category. The 1980 MW super-critical coal-based power project in Uttar Pradesh has all approvals and clearances in place along with long-term PPAs and fuel-supply agreement.

LIC's open offer for stake in IDBI begins on Dec 3

LIC's open offer to purchase shares from the minority shareholders of IDBI Bank will kick-start from December 3, IDBI Bank said on Thursday.

The open offer, at Rs 61.73 per equity share, will close on December 14.

LIC has offered to acquire 2,04,15,12,929 equity shares, representing 26 per cent of the fully paid-up equity capital of IDBI Bank as per the open offer process in accordance with Sebi regulations, IDBI Bank said in a regulatory filing.

Limited gains from ethanol to sugar industry

Sugar companies are expected to report higher profits for the second quarter, thanks to a series of supportive measures taken by the government. However, the Centre’s recent measures like the 25 per cent increase in ethanol prices and introduction of the National Biofuel Policy, though positive, are unlikely to change sugar cyclicality. Moreover, the supply overhang in the industry would continue on the back of robust production, says a report.