Companies and Markets

Companies & Markets

Market breadth improves

The market ended with gains in a highly volatile trading session, with the Nifty settling above the 10,900-mark. The BSE Sensex rose 113.31 points or 0.31 per cent to close at 36,582.74. However there was selling in broad market, as the BSE Mid-Cap index fell 0.82 per cent and the BSE Small-Cap index plunged 1.17 per cent.

The market breadth of the market was weak as 781 shares rose and 1,776 shares fell. Among the major Sensex gainers were Reliance Industries (up 3.52 per cent), TCS (up 0.81 per cent) and HDFC (up 0.87 per cent) and Bajaj Auto (up 1.67 per cent).

RCom dives 35%; other group shares sink too

Shares of Reliance Communications fell sharply on Monday and ended nearly 35 per cent lower after the company decided to opt for insolvency proceedings following its failure to sell assets for paying back its lenders.

RCom shares plummeted 34.91 per cent to close at Rs 7.55 on BSE. Intra-day, it nose dived 48.27 per cent to Rs 6 — its record low. At NSE, shares tumbled 34.91 per cent to close at Rs 7.55.

How banks ran up $7b phone bill with RCom

For a capital-starved economy, India shows little urgency to extricate good money stuck in failed businesses.

That was going to change after the adoption of a modern bankruptcy regime in May 2016. Alas, legal improvements not-withstanding, the culture of extending the life of bad loans to big businesses and pretending nothing is wrong with them is proving too hard to end.

Take Reliance Communications. After more than a year and a half of kicking the can down the road, the erstwhile Indian telecom operator is filing for bankruptcy.

Insurers dance to new tunes to lure millennials

Why should insurance companies conduct a marathon run or a zumba dance event? At a time when insurance agents are becoming passé, especially among millennials, insurance companies are trying out different ways to reach out to youngsters and be relevant for them.

Essel promoters sell shares worth over Rs 1,050 cr in 6 firms

Essel group’s promoter entities sold shares worth over Rs 1,050 crore in six listed group firms in open market between January 25 and February 1, 2019, for paying off lenders who were not part of an agreement to prevent declaration of default on loans against pledged shares.

According to multiple regulatory filings by different promoter group entities of Essel group, shares of Zee Entertainment Enterprises, Dish TV, Zee Media Corporation, Siti Networks Ltd and Zee Learn were sold in open market.

Tribunal sets Feb 11 deadline to decide on Arcelor-Essar bid

The National Company Law Appellate Tribunal on Monday directed the NCLT Ahmedabad bench to take a final decision over ArcelorMittal's Rs 42,000 crore resolution plan for Essar Steel by February 11, failing which it would call records and pass order accordingly.

A two-member bench headed by Justice S J Mukhopadhaya has directed to list the matter on February 12.

Vedanta Resources rating downgraded to Negative

The rating outlook of Vedanta Resources Limited, the holding company of India’s Vedanta Limited, has been changed to Negative from Stable by the Moody’s Rating Agency, following the London-based company’s decision to invest $561 million in Volcan Investments, a family trust of Anil Agarwal, amid movements in commodity prices that are exposed to further downside risk.

Last week, Vedanta’s earnings statement said that Cairn India Holdings, a Vedanta subsidiary, bought a stake in Anglo American from Volcan Investments during the December quarter.

RBI policy, quarterly results key drivers for market this week

The RBI’s policy meet outcome, ongoing quarterly results season and global cues will set the tone for the stock market this week, analysts said. The market may also witness an overhang of the interim budget announcements.

“For the week ahead, the key drivers would be the outcome of the Reserve Bank of India’s (RBI) monetary policy meeting, corporate results and the sustainability of FII flows,” said Viral Berawala, CIO, Essel Mutual Fund.

RCom to propose same asset sale plan to NCLT

Reliance Communications on Sunday said it would propose a similar debt resolution plan to the National Company Law Tribunal (NCLT) that it had been pursuing outside the court.

The Anil Ambani-led company last week announced that it would file for bankruptcy proceedings as it failed to sell its assets for paying back its lenders.

FPIs pull out Rs 5,300 cr from capital markets in Jan

Foreign Portfolio Investors (FPIs) withdrew more than Rs 5,300 crore from the capital markets in January, signalling a ‘wait and watch’ approach by them ahead of the general elections.

Prior to this, they had infused a net sum of over Rs 17,000 crore in the capital markets -- equity and debt -- during November and December 2018. In October, they had pulled out a massive Rs 38,900 crore.