Companies and Markets

Companies & Markets

Number of retail investors in SBI jumps, stock hits 52-week low

Retail investors are back in the market, which has seen a correction of around 10 per cent in January–March quarter. The latest shareholding pattern of State Bank of India for January-March 2018 period shows retail investors and mutual funds bought shares as the bank’s equity shares touched a new 52-week low in March 2018.

There are 81,765 new retail investors holding SBI stock during January-March compared to the previous quarter, as per the shareholding pattern disclosed to stock exchanges.

Whistleblower resurfaces; requests regulators to question Infosys Board for accountability, questions Panaya sale plan

A day after Infosys said it started seeking suitable sell out options for Skava and Panaya, which were acquired by the company’s controversial CEO Vishal Sikka, a fresh whistleblower email on Saturday questioned the company’s decision to sell these and requested market watch dogs, SEBI and SEC, to question the board of the company on why it changed a ``strategic acquisition to a completely valueless one’’ and decided on a sell off.

Reliance Jio plans to raise USD 500 mln from Japanese banks

Telecom operator Reliance Jio is learnt to be in talks with three Japanese banks to raise USD 500 million (around Rs 3,250 crore) in debt.

"Reliance Jio is in discussion with MUFG (formerly The Bank of Tokyo-Mitsubishi UFJ) , Mizuho Bank and Sumitomo Mitsui Banking Corporation to raise USD 500 million," sources in the know of the development told PTI.

An e-mail query sent to the company seeking a response remained unanswered.

Sensex jumps 91 pts on macro data, earnings optimism

Benchmark Sensex built on gains to close at a fresh six-week high of 34,192.65 today on better-than-expected macro data and optimism ahead of the earnings season.

This was the seventh straight session of gains for the index, its longest winning streak since November 24 last year.

The 30-share BSE Sensex rose by 91.52 points to end at 34,192.65 after hitting a high of 34,313.14 and a low of 34,103.53.

This was its highest closing since February 27 when it had settled at 34,346.39 points.

ICICI, Axis troubles point to governance issues in Indian banks, says S&P

The recent governance issues in India’s banking sector involving ICICI Bank and Axis Bank reiterate the need to improve risk management and maintain strong governance practices, S&P Global Ratings said on Thursday.

“As a number of banks in India confront serious governance and risk issues, the ‘tone at the top’ is crucial. Leadership groups in Indian banks need to ensure that they enhance the risk culture, reputation, and financial strength of banks,” S&P Global Ratings credit analyst Michael Puli said.

IIP grows 7.1%, inflation falls to five-month low

For the government facing a barrage of criticism on various fronts, there are some good news – retail price of essential items cooling and factory output being robust.

While CPI-based retail inflation slipped to a 5-mo­n­th low of 4.28 per cent in March on easing of food pr­i­c­es, the index of industrial production (IIP) grew at 7.1 per cent in February, driven by robust performance of the manufacturing sector.

The IIP numbers come with a lag of one month.

Nifty moves past key resistances

The market extended gains for the sixth day in a row as the Sensex closed 160.69 points, or 0.47 per cent higher at 34,101 while the Nifty 50 rose 41.50 points, or 0.40 per cent to settle at 10,458.65, its highest closing level since February 28. There was selling in the broad market with the BSE Mid-Cap and Small-Cap indices ending in the red. Among the sectoral indices on the BSE, the IT index (up 3.18 per cent) and Teck (2.49 per cent) outperformed the Sensex. The Metal index was down 1.41 and Realty down 1.82 per cent.

Technical view

Deutsche sees banks dragging back healthy profit gain

Corporate India is forecast to show a strong growth in profits in the January-to-March quarter, even as the banking sector weighs on projections with its continuing struggle to clear a build-up of stressed loans.

Fourth-quarter profits for NSE Nifty 50 Index companies will grow 10 per cent from a year earlier, according to a research report by Deutsche Bank AG. Excluding financials, the increase should be a “healthy” 20 per cent, Mumbai-based analysts Abhay Laijawala and Bijay Kumar wrote.

Hero, Dabur offer to invest Rs 1,250 cr in Fortis

Fortis Healthcare on Thursday said it has received an "unsolicited binding offer" from Hero Enterprise Investment Office and Burman Family Office to invest Rs 1,250 crore in the company through preferential allotment route, even as reports emerged that Kuala Lumpur-based IHH Healthcare has proposed a potential bid of as much as $1.3 billion (about Rs 8,450 crore) that tops an offer from Manipal Health Enterprises.

RBI should scrap 70-year age bar for pvt bankers

The American president has a fixed tenure of two terms. Even the infinitely tenured zamindaris and jagirdaris of the Board of Control for Cricket in India have been scuppered by the Supreme Court established Justice Lodha Panel. Nothing is permanent. And yet private banks in India have CEOs who are carrying on for years, with no term limits whatsoever and the central bank allows this for there is no regulation to backstop it.