The News International Team
02:55pm SAIL OFS on Friday?
The government will conduct SAIL’s offer for sale (OFS) on Friday, reports CNBC-TV18 quoting unnamed sources.
Ministers’ panel will meet tomorrow to fix floor price, say sources, adding there are no plans of the government to offer heavy discount to institutional investors.
CNBC-TV18 learnt that the government may provide limited discounts to retail investors and will communicate to stock exchanges today on OFS timeline.
02:30pm BHEL, ONGC in focus
BHEL has successfully developed, manufactured and commissioned India’s first phase shifting transformer Kothagudem Thermal Power Station in Telegana. The stock gained 2.5 percent.
State-run oil & gas explorer ONGC climbed over 3 percent after agencies report indicated that the government is considering reworking company’s subsidy formula. According to the report, reworking subsidy formula could improve ONGC profitability.
Another state-run company Oil India also saw buying interest, up 1 percent.
02:25pm RBI comfortable with current account deficit
The Reserve Bank of India is “reasonably comfortable” with the current account deficit because of lower oil prices, deputy governor HR Khan said, after the country last week unexpectedly eased some rules on gold imports.
“We are reasonably comfortable from the current account point of view because of oil,” Khan told reporters in the sidelines of an event in Mumbai.
“So taking all that into account, a view has been taken that we’ll give up this 80:20 (rule on gold imports),” Khan told reporters.
India on Friday scrapped a rule mandating traders to export 20 percent of all gold imported into the country – in what had been known as the 80:20 rule. India will soon announce the current account deficit for the July-September quarter, reports Reuters.
02:00pm Market Check
The market remained lacklustre in afternoon trade with the Nifty trading in a 20 points range. The index advanced 13 points to 8537.70 and the Sensex rose 11.27 points to 28455.28.
The broader markets maintained strong momentum with the BSE Midcap and Smallcap indices gaining 1.6 percent each. About 1864 shares have advanced, 974 shares declined, and 107 shares are unchanged on the Bombay Stock Exchange.
Midcap auto stocks like Eicher Motors and TVS Motor saw heavy buying interest today after Goldman Sachs resumed coverage on both stocks with a buy. On TVS Goldman has a 12-month target of Rs 345 and on Eicher, a 12-month target of Rs 19,235.
Insurance companies such as Reliance Capital and Max India rallied 4-7 percent on news of FDI in insurance making headway. Reports indicate the Congress has back key reforms measures and the draft report is expected in first 10 days of December after which the panel will approve it and will tabled in the house thereafter.
Bajaj Electricals, Havells and Surya Roshni surged between 5-17 percent on a CNBC Awaaz exclusive news that all government offices and municipal corporations will have LED lights.
However, Pratibha Industries declined 5 percent after Crisil downgraded the company’s ratings to negative to reflect the expectation of continuing pressure on the group’s financial risk profile. The company told CNBC-TV18 that its net debt is at Rs 1,700 crore and it expects debt to be down by Rs 200-300 crore by end of 2015 via monetisation of non-core assets.