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Tag: Financial Market

  • The selling of a private bond to Apollo Global nets the Mumbai airport $750 million

    Mumbai International Airport

    After delaying a scheduled note offering, Mumbai International Airport Ltd. has raised $750 million through a private bond sale to Apollo Global Management Inc.

    According to a stock exchange notification, the operator of India’s No. 2 airport, which is controlled by the country’s richest man, issued 7.25-year dollar notes to Apollo-managed funds to refinance current debt and fund new capital investment. The deal’s terms were not specified in the statement.

    Several Asian firms have revised their dent sale plans as a result of a worldwide bond market rout. Last month, Kalyan Jewellers India Ltd. announced the cancellation of a dollar bond offering, and India’s local currency debt market has experienced a slew of cancellations in recent months.

  • IN EARLY TRADE, THE RUPEE JUMPED 8 PAISE TO 76.40 AGAINST THE US DOLLAR

    In early trade on Wednesday, the rupee rose 8 paise to 76.40 against the US dollar in anticipation of foreign fund inflows through the LIC IPO.

    The rupee began at 76.46 against the dollar on the interbank foreign exchange, then gained ground to quote at 76.40, an increase of 8 paise from the previous close.

    The rupee was trading at 76.48 against the US dollar on Monday.

    Due to Id-Ul-Fitr, the FX market was closed on Tuesday.

    The government is selling 22,13,74,920 shares in the Life Insurance Corporation (LIC) at a price range of Rs 902-949 per share, with a target of raising Rs 21,000 crore. From May 4 to 9, institutional and retail buyers will be able to purchase the issue.

    The anchor investor part of LIC’s IPO has been fully subscribed, raising roughly Rs 5,620 crore.

    Foreign fund inflows from the LIC IPO, according to Sriram Iyer, Senior Research Analyst at Reliance Securities, could counter a strong currency, which has extended gains amid aggressive rate hikes by the US Fed.

    The dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.05 percent at 103.51.

    The 30-share Sensex was down 21.42 points, or 0.04 percent, at 56,954.57 points, while the wider NSE Nifty was down 9.65 points, or 0.06 percent, at 17,059.45.

    Brent crude futures increased 0.99 percent to USD 106.01 per barrel, the global benchmark.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Monday, offloading shares worth Rs 1,853.46 crore.

  • Profit-booking in banking, financial, and IT stocks has sent the indices back into the red

    After a recent rise, the Sensex and Nifty50 stock indices fell roughly 1% on Wednesday due to profit-booking in banking, financial, and IT firms.

    The 30-stock BSE Sensex fell 537.22 points, or 0.94 percent, to 56,819.39, as 24 of its constituents fell. It fell 772.57 points, or 1.34 percent, during the day, reaching a low of 56,584.04.

    The broader NSE Nifty50 index fell 162.40 points (0.94%) to 17,038.40, with 39 of its constituents ending the day in the red.
    With a 7.24 percent decline, Bajaj Finance was the worst performer on the Sensex. ICICI Bank fell 2.21 percent, Bajaj Finserve fell 3.88 percent, and SBI fell 1.78 percent.
    Infosys was down 1.68 percent, and Wipro was down 1.91 percent. Titan was down 2.19 percent, Dr. Reddy’s was down 1.94 percent, UltraTech Cement was down 1.63 percent, M&M was down 1.46 percent, and Maruti was down 1.44 percent.

    Tata Steel, on the other hand, increased by 1%, as did Asian Paints, HCL Technologies, TCS, Kotak Mahindra Bank, Reliance Industries, and HDFC Bank.
    The BSE midcap index fell 0.88 percent, while the smallcap index fell 0.61 percent in the broader market.

    Power slid the most (1.86%) among BSE sectors indices, followed by utilities (1.81%), telecom (1.72%), banking (1.40%), and oil and gas (1.40%). (1.24 per cent). Metal was the sole asset to gain ground, gaining 0.02 percent.

    There were 2,202 stocks that fell, 1,161 that rose, and 120 that were constant.

    Stock markets dropped substantially lower in continuation of the current consolidation period, according to Ajit Mishra, VP – Research, Religare Broking Ltd.

  • Reliance Industries has become the first Indian business to have a market capitalization of Rs 19 trillion

    After reaching a new high, Mukesh Ambani’s Reliance Industries Ltd (RIL) became the first Indian listed firm to have a market capitalization of Rs 19 trillion. In an otherwise sluggish market, the stock set a record high of Rs 2,827.10, up 2% on the BSE in intraday trade on Wednesday.

    RIL’s market capitalization was Rs 19.02 trillion at 09:33 a.m., according to BSE data, with the stock up 1.3 percent at Rs 2,811.85. The S&P BSE Sensex, on the other hand, was down 0.61 percent at 56,977.

    RIL’s stock price has increased by 11% in the last seven trading days, from a low of Rs 2,544 on April 18, 2022. The stock has gained 20% in the last three months, compared to a 0.42 percent fall in the S&P BSE Sensex.

    “Reliance industries is firing on all cylinders because its petchem business is doing extremely well on the back of a surge in Oil and Gas prices where Singapore gross refining margin (GRM) is at an all-time high. Its telecom business is unaffected by geopolitical tension and inflation whereas it is exploring synergies in its retail business. It is continuously expanding its path in the renewable energy business that opening more opportunities for the company,” said Santosh Meena, Head of Research, Swastika Investmart.

    RIL is a well-diversified commercial entity with a presence in refining or marketing petrochemicals (O2C), oil and gas exploration, retail, digital services, and media, making it one of India’s largest conglomerates. O2C and oil and gas contributed 50% of EBITDA in the 9MFY22 period, whereas retail, digital, and others contributed 10%, 34%, and 6%, respectively.

    On Tuesday, RIL and Abu Dhabi Chemicals Derivatives Company RSC (TA’ZIZ) inked a shareholder agreement for a chemical project in Abu Dhabi’s Ruwais. The development is significant because it will concentrate on the manufacturing of chlor-alkali, ethylene dichloride (EDC), and polyvinyl chloride (PVC), which are all used in a variety of industrial applications.

  • In early trade, the rupee fell 23 paise to 76.65 against the US dollar.

    Rupee advances 23 paise to 75.93

    The rupee fell 23 paise to 76.65 against the US dollar in early trade on Monday, reflecting the dollar’s surge in the international market.

    The rupee opened at 76.58 against the dollar on the interbank foreign exchange, then plummeted to an early low of 76.65 in early trades, a drop of 23 paise from its previous close.

    The rupee fell 25 paise versus the US dollar on Friday, closing at 76.42.

    According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee began down against the US dollar, pressured down by hawkish remarks from Federal Reserve Chair Jerome Powell last week.

    Meanwhile, Brent crude futures sank 2.85% to USD 103.61 per barrel, the global benchmark.

    The dollar index, which measures the value of the dollar against a basket of six currencies, increased by 0.02 percent to 101.23.

    On the domestic stock market, the 30-share Sensex was down 645.45 points, or 1.13 percent, at 56,551.70, while the broader NSE Nifty was down 189.05 points, or 1.1%, at 16,982.90.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 2,461.72 crore.

  • Rupee slips for third session in a row; oil near $113 a barrel

    Rupee slips for third session

    The rupee depreciated for the third straight session to close 10 paise lower at 76.29 against the dollar on Monday, tracking the strength of the greenback overseas, coupled with foreign fund outflows.

    At the interbank foreign exchange market, the rupee opened lower at 76.41 against the American currency, and shuttled between a high of 76.20 and a low of 76.43. It settled at 76.29, down 10 paise over its previous close of 76.19. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20 per cent higher at 100.70.

    The rupee also weakened as hawkish Fed officials and dovish ECB continued to push the bond yields higher. The benchmark 10-year bond yield traded down to 7.15 per cent after earlier rising to a high of 7.26 per cent.

    Sriram Iyer, senior research analyst at Reliance Securities, said the rupee weighed was weighed down by the rising crude prices and bond yields.

    Oil prices rose on Monday as the shut down of Libya’s biggest oil field in an already under-supplied market overshadowed signals that China’s lockdowns are weighing on its economic growth.

    Brent crude futures rose above $113 a barrel for the first time since late March. West Texas Intermediate traded around $108. Global markets face further interruptions to oil supplies after demonstrations against Libya’s PM Abdul Hamid Dbeibah shut down Sharara, the country’s biggest oil field.

  • ONGC, Oil India gain 3% in tandem with crude oil prices

    Shares of state-owned oil exploration & production companies like Oil and Natural Gas Corporation (ONGC) and Oil India gained 3 per cent on the BSE in Wednesday’s intra-day trade in an otherwise subdued market after oil prices surged. Crude oil prices increased around 6 per cent on Tuesday amid reports of lower supply by oil producers and easing of lockdown curbs in parts of China.

    At 10:47 AM, ONGC and Oil India were up 3 per cent at Rs 173.85 and Rs 237.20, respectively, on the back of heavy volumes. In comparison, the S&P BSE Sensex was up 0.04 per cent at 58,597 points. Upstream companies like ONGC and Oil India are expected to witness strong earnings on higher oil prices. Oil prices saw a sharp increase amid concern over supply disruption due to the geopolitical conflict in Europe in the quarter that ended March 2022 (Q4FY22). Brent prices have averaged nearly $100/bbl in Q4FY22 with nearly $30/bbl being added during the quarter end due to the Ukraine war.

    Analysts at HDFC Securities expect Brent crude price to remain elevated as Organisation of the Petroleum Exporting Countries (OPEC) supply growth is likely to lag behind global demand due to ongoing geopolitical tensions.

    “The average Brent crude price in FY22 stood at USD 80/bbl, up 79 per cent YoY, driven by recovery in global demand with opening up of economies. However, the OPEC supply is lagging behind demand growth due to Russian invasion of Ukraine. Despite the fact that no restrictions were imposed on crude oil import from Russia currently, some off-takers have shunned Russian oil due to uncertainties around insurance, shipping, etc. because of sanctions,” the brokerage firm added.

    The US Energy Information Administration (EIA) also estimates that the growth in global crude oil supply will suffer in 2022.

  • Sebi penalises NSE, BSE for laxity in Karvy Stock Broking case

    India’s markets regulator on Tuesday fined BSE Rs 3 crore and the National Stock Exchange (NSE) Rs 2 crore for “laxity” in detecting misconduct by Karvy Stock Broking (KSBL).

    The Hyderabad-based brokerage misused securities worth Rs 2,300 crore belonging to more than 95,000 clients by pledging them without authorisation, said the Securities and Exchange Board of India (Sebi). The firm and its group entities used funds the to raise Rs 851 crore from eight banks.

    “Without doubt, it was KSBL which misused clients (sic) securities by unauthorisedly pledging them and was thus responsible for loss caused by pledging securities which it did not own, including loss to investors as well as loss to banks and NBFCs who loaned funds to KSBL against securities which did not belong to KSBL,” said Sebi.

    Noticee (BSE & NSE), which resulted in delayed detection of the misconduct by KSBL and the Noticee needs to be held accountable for the same,” Sebi said in two separate orders against the country’s leading stock exchanges.”

    Sebi had examined details of inspection and action taken by NSE and BSE against KSBL conducted between 2016 and 2019. It further asked the exchanges to furnish the procedure they followed to ensure reconcillation of clients’ securities.

    Sebi’s investigation found lapses on the part of both exchanges.

    In 2019, Sebi had passed an ex-parte ad-interim order against KSBL when the unauthorisedly pledging issue came to light. Efforts taken by Sebi, depositories and exchanges helped KSBL’s clients recover their dues.

    In December 2019, depository firm NSDL had said securities were returned to 82,559 clients from the KSBL Demat account. In November 2020, NSE had said funds and securities worth Rs 2,300 crore belonging to about 235,000 investors of KSBL were settled.

    After the KSBL investigation, Sebi changed norms around pledging of shares to prevent misuse by brokerage. The regulator did away with the concept of power of attorney which earlier allowed brokerages gain access to client securities.

  • Rupee gains 14 paise to 75.79 against US dollar in early trade

    Rupee gains 14 paise

    The rupee appreciated 14 paise to 75.79 against the US dollar in opening trade on Monday, amid a pullback in crude oil prices.

    At the interbank foreign exchange, the rupee opened at 75.94 against the American dollar, then gained further ground to quote 75.79, registering a rise of 14 paise from the last close.

    On Friday, the rupee appreciated 10 paise to settle at 75.93 against the US dollar.

    The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13 per cent higher at 99.92.

    Most Asian and emerging market peers are trading weaker against the US dollar this Monday morning and could weigh on sentiments, however subdued crude oil prices will cap depreciation bias, said Sriram Iyer, Senior Research Analyst at Reliance Securities.

    However, the big trigger for the markets will be Indian and US CPI inflation data on Tuesday, Iyer said.

    On the domestic equity market front, the 30-share Sensex was trading 322.35 points or 0.54 per cent lower at 59,124.83, while the broader NSE Nifty declined 73.70 points or 0.41 per cent to 17,710.65.

    Global oil benchmark Brent crude futures fell 2.33 per cent to USD 100.39 per barrel.

    Foreign institutional investors were net sellers in the capital market on Friday, as they offloaded shares worth Rs 575.04 crore, as per stock exchange data.

  • Veranda lists 15% higher over issue price on BSE; down 5% on NSE

    Shares of Veranda Learning Solutions opened 15 per cent higher at Rs 157 against its issue price of Rs 137 per share on the BSE on Monday. At 10:22 am; the stock locked in upper circuit of Rs 164.85, after hitting a low of Rs 149.15 in intra-day trade so far. According to the exchange data, around 775,000 equity shares changed hands with pending buy orders of 5,151 shares on the BSE.

    However, the stock locked in lower circuit of Rs 131.25 on the National Stock Exchange (NSE). It opened 9 per cent lower at Rs 125 against its issue price of Rs 137 per share. Around 3.03 million shares changed hands with pending sell orders 2.8 million shares so far.

    The company has raised Rs 200 crore through initial public offering (IPO). It has proposed to utilize the net proceeds of the fresh issue towards repayment of its borrowings amounting to Rs 60 crore, payment of acquisition consideration of Edureka or repayment of bridge loan availed to discharge acquisition at Rs 25.19 crore, growth initiatives towards Rs 50 crore and the balance for general corporate purposes.

    Veranda Learning Solutions offers diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants, graduates, professionals and corporate employees through multitude of career-defining competitive exams, professional courses, exam-oriented courses, short term upskilling and reskilling courses.

    The company provides comprehensive long-term and short-term preparatory courses in simple and lucid manner for students preparing for Union Public Service Commission, State Public Service Commission, Staff Selection Commission, Banking, Insurance, Railways and Chartered Accountancy. The company also provides customised short term skilling courses, long term courses and other corporate courses to its learners.