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Nifty holds 8100; IT metals lead, banks under pressure

10:00

The News International Team

10:59am Hindalco in News

Metals producer Hindalco has been exploring various options to raise USD 1 billion-plus or around Rs 5,000 to 6,000 crore funds. The company has been exploring options of rights issue, bonds and non-convertible debentures (NCD).

Hindalco has announced to the stock exchanges that shareholders will be considering Rs 6,000 crore NCD issue in the annual general meeting (AGM). This essentially means that they have also put in a proposal to raise the borrowing limit to around Rs 20,000 crore.

In order to fund their expansion plans, the net debt at around Rs 58,000 crore and gross debt at Rs 63,000 will surely be daunting for the company. Thus, it is looking to raise the borrowing limit and take in money through the NCD route.

10:45am Reliance Capital in focus

With an aim to deepen its partnership, Japanese giant Nippon Life is in talks to increase its stake in India’s leading private insurer Reliance Life, as soon as the government allows higher FDI in the sector. Nippon Life currently holds 26 percent stake in Reliance Life Insurance Company, which it had bought for Rs 3,062 crore. This deal was completed in October 2011 and it had valued the Indian insurer at over Rs 11,500 crore at that time.

The Indian government has now proposed to hike FDI cap in insurance sector from 26 percent to 49 percent. The proposal was cleared by the Union Cabinet in July this year and the government has said it is hopeful of its passage in the Parliament, reports PTI.

10:25am FII View

Neelkanth Mishra, Credit Suisse says Q1FY15 BoP surplus is the highest since March 2008 as capital flows surprise. BoP surplus with slow loan growth could drive record high funds surplus, pushing down wholesale rates, it adds.

“In the past, they have dipped below repo rates for sustained periods and we could see a repeat. This would be helpful for some NBFCs like Shriram Transport, LIC Hsg Fin and IndusInd Bank,” says Mishra.

10:00am Equity benchmarks remained in a positive terrain supported by telecom, technology, metals and Tata group stocks. The Sensex rose 72.70 points to 27092.09 and the Nifty climbed 21.65 points to 8104.70.

The BSE Midcap and Smallcap indices gained 0.5 percent and 0.4 percent, respectively. About 1231 shares have advanced, 798 shares declined, and 91 shares are unchanged.

Technology majors Infosys, TCS and Wipro gained 1-2 percent while top telecom operator Bharti Airtel topped the buying list, up over 3 percent. Among metals, Tata Steel, Sesa Sterlite and Hindalco rose 1-2 percent.

Commercial vehicle maker Tata Motors rallied 1.5 percent after Jefferies upgraded the stock to a buy with a target price of Rs 627 on the back of great product momentum in JLR, recovering domestic truck market and most importantly, on lesser concerns on sustainability of profitability in China.

However, ICICI Bank, ONGC, ITC, HDFC Bank, GAIL, Sun Pharma, M&M, SBI, Hero Motocorp and Dr Reddy’s Labs fell 0.3-2 percent.

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