Home / Business / Money / Nifty holds 8000 amid consolidation; HUL slips over 1%

Nifty holds 8000 amid consolidation; HUL slips over 1%


The News International Team

12:25pm DLF In Focus

Market regulator Securities and Exchange Board of India (SEBI) has barred the company and its six executives from accessing capital markets for 3 years. It was penalised for failing to disclose key information at the time of its record-breaking 2007 market listing.

However, realty major clarifies to investors on SEBI order that subsidiaries can access markets as per legal opinion, as DLF’s subsidiaries with different PAN numbers are not named in SEBI order.

Furthermore, DLF lawyers opine subsidiaries can list REITs as their REIT plans were always at subsidiary level. The company’s lawyers also say subsidiaries can issue commercial mortgage backed securities.

In a release dated two weeks back, the company had stated, “DLF and its Board wish to reassure its investors and all other stakeholders that it has not acted in contravention of law either during its initial public offer or otherwise. DLF and its board were guided by and acted on the advise of eminent legal advisors, merchant bankers and audit firms while formulating its Offer documents. DLF will defend itself to the fullest extent against any adverse findings and measures contained in the Order passed by SEBI. DLF has full faith in the judicial process and is confident of vindication of its stand in the near future.”

12:00pm Market Check

The market remained directionless in the expiry week. The 30-share BSE Sensex declined 6.68 points to 26844.37 while the 50-share NSE Nifty held 8000 level, down 2.50 points to 8012.05. Banking and financials, and capital goods stocks supported the market while auto, FMCG and oil stocks declined.

Adrian Mowat of JPMorgan turned more bullish on India post the Brazilian election outcome, saying he would add more money into Indian equity market especially into banks and cyclicals like autos and building materials. He expects 20 percent returns from Indian market in next 12 months.

DLF and Jindal Steel topped the selling list in the Nifty, down nearly 8 percent. As far as DLF is concerned, reports indicated that the new BJP government in Haryana is going to heavily probe the company’s land deals with Robert Vadra (son-in-law of Sonia Gandhi). In case of JSPL, report indicated that CBI registered preliminary enquiry against the company and some environment ministry officers for alleged diversion of forest land.

In key results today, HUL traded weak ahead of it’s second quarter earnings later today, down over a percent. A CNBC-TV18 poll expects sales growth to remain muted across most categories with 5 percent year-on-year volume growth. Operating profit margin is likely to see an improvement of 90 bps.

L&T, Bharat Electronics and Walchandnagar Industries shot up 1-10 percent on the hope of additional orders after the centre gave nod to defence projects worth Rs 80,000 crore.

Tata Motors fell over 2 percent followed by ONGC, Reliance Industries, Wipro and NTPC with around a percent. However, Dr Reddy’s Labs and BHEL gained 2-3 percent.


Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...