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Nifty holds above 8350; HDFC, SBI lead on RBI norms

11:21

The News International Team

11:50 am Interview:  The businesses around us are undergoing transformation and if a business is under pressure, budgets will get impacted believes, Vineet Nayyar, executive vice chairman, Tech Mahindra.

Nayyar views come on the back of reports that three major global investment banks are likely to remove discretionary IT spending allocation in their budget for 2015.

In a research report, brokerage house Motilal Oswal says: “(Companies’) budgets will be influenced to some degree by the prevailing situation, volatility in which is reflected in fall in commodity prices as well as multiple global currencies v/s the US dollar in recent months. If the situation improves gradually through the course of the year, the velocity and extent of discretionary spending could pick up.”

Nayyar says there is increased automation in the industry to reduce the labour-intensive nature of the work and managements will have to need to work to adapt these changes.

11:30 am Buzzing: Shares of Orchid Chemicals & Pharmaceuticals jumped 4 percent intraday on its fund raising plans to ease out debts. As part of its corporate debt restructuring (CDR) scheme, the company has allotted 1.48 crore shares at Rs 49.79 per share on preferential basis to its promoter group company Orchid Healthcare.

“The board of directors at their meeting held on December 22, 2014 has allotted 1,48,09,801 equity shares of Rs 10 each at Rs 49.79 (including a premium of Rs 39.79 per share) as the first tranche to Orchid Healthcare on preferential basis,” the company said in a statement.

As part of the CDR package, promoter group firm will pick up stakes to infuse Rs 92.17 crore into the company through preferential allotment of shares. It has around Rs 3,500 crore outstanding debt.

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The market continues its gains for the fourth consecutive day with the Nifty surpassing 8350. The Sensex is up 121.17 points at 27822.96 and the Nifty is up 31.20 points at 8355.20. About 1221 shares have advanced, 1010 shares declined, and 86 shares are unchanged.

Bharti, Bajaj Auto, Axis Bank, HDFC and SBI are top gainers in the Sensex.

Banks lead the way today buoyed by RBI tightening rules on non-cooperative borrowers. Additionally banks with insurance arms such as PNB and SBI see further fillip on HDFC’s life insurance arm 1 percent stake sale to azim premji trust being sold at a premium. Deutsche Bank says the valuation of the deal is 21 percent higher than their valuation of HDFC Life.

Among the losers are Hindalco, Coal India, Sesa Strelite, Wipro and Reliance.

Globally, Asia is mixed in low volume trade. Brent trades around USD 60 per barrel following a volatile session the day before.

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