Foreign investors have pulled out over Rs 9,300 crore ($1.3 billion) from the capital markets— both equity and debt—in the last four trading sessions on the unabated fall in rupee and the rise in crude oil prices. The latest withdrawal comes following a net outflow of over Rs 21,000 crore in the last month. Prior to that, they had put in a net amount of Rs 7,400 crore in July-August.
Companies and Markets
Companies & Markets
The All-India IDBI Officers Association has alleged that the board decisions to allow LIC to up stake in the bank to 51 per cent and hand over management control was in violation of oral assurance on maintaining status quo given to the court which has not given its approval.
The market seems to be disregarding bullish calls given by various brokerages on Yes Bank, which is being pummelled into submission. With no clarity emerging on Rana Kapoor’s successor and sister-in-law Madhu Kapur with over 8 per cent shareholding representing the X factor in this dynamic calculus, the scrip is in for a continuing rough ride on bourses. Although after the relentless bear hammering in the last few days, a short covering pull-back appears on the anvil. Till the succession planning is resolved, Yes Bank stock should see more ferment.
Leading credit rating agencies are likely to face regulatory action over the IL&FC fiasco.
The stock market tanked on Thursday, with BSE Sensex losing over 806 points, or 2.24 per cent, to settle at 35,169 as frontline stocks, including Reliance Industries, were battered. An across-the-board selling was sparked by a steep fall in rupee’s exchange value and rising crude oil prices.
Rupee’s free fall continues unabated. The measures announced by government and the central bank’s intervention in the forex marker haven’t had any substantial impact on domestic currency’s exchange value which has depreciated by 15.46 per cent this calendar year.
Markets plunged more than 800 points as the fall in rupee and rising crude prices hit investor sentiments. The Sensex lost 806 points, to end at 35,169, while the broader NSE Nifty lost 259 points, to close at 10,599. The BSE Mid-cap and Small-cap declined 1.93 per cent and 2.07 per cent, respectively. All the sectoral indices on BSE posted losses with oil and gas and energy falling over 6.5 per cent. IT and healthcare was down over 3 per cent. Capital goods fell marginally at 0.07 per cent.
Shares of oil marketing firms HPCL, BPCL and IOC plummeted up to 12 per cent on Thursday after the government announced Rs 2.50 per litre cut in petrol and diesel prices as it reduced excise duty and asked oil companies to absorb another Re 1.
The scrip of Hindustan Petroleum Corp (HPCL) tanked 12.23 per cent to end at Rs 220.60, Bharat Petroleum Corp (BPCL) plunged 10.89 per cent to Rs 336.35 and Indian Oil Corp (IOC) tumbled 10.57 per cent to Rs 140.85 on BSE.
LIC on Thursday came out with an open offer for acquiring 26 per cent equity in IDBI Bank at a price of Rs 61.73 per share, entailing a total payout of over Rs 12,602 crore.
Beleaguered Chanda Kochhar has quit as chief executive officer and managing director of ICICI Bank with immediate effect. Kochhar, 56, who headed ICICI Bank since May 2009, also stepped down from the board of directors of its units, including ICICI Securities. Her five-year tenure as CEO of ICICI Bank was to end on March 31, 2019.