The News International Team
12:50pm Suzlon in News: Shares of Suzlon Energy gained over 7 percent intraday amid reports that Sun Pharma’s Dilip Shanghvi will provide as much as Rs 3,800 crore of security that will help the wind turbine maker in availing credits.
Dilip Shanghvi is the founder and managing director of Sun Pharmaceuticals. As per reports, Dilip Shanghvi will provide as much as Rs 3,800 crore (USD 610 million) of security for Suzlon Energy to help the maker of wind turbines fill orders and return to profit.
The security from the Shanghvi family will make it easier for Suzlon to obtain more bank guarantees and letters of credit to ramp up its business, it said.
Meanwhile, earlier this month, Suzlon signed definitive pacts with DSA for equity investment of Rs 1,800 crore in the company, amounting to 23 percent stake. DSA also announced an open offer to acquire 26 percent stake in Suzlon at Rs 18 per share aggregating to Rs 2,837 crore, reports PTI.
12:25pm Nikkei at fresh 15-year high: Japan’s Nikkei share average rose for a fifth straight day on Tuesday and scored another 15-year high after the yen weakened, while investors were cautious awaiting comments from US Federal Reserve Chair Janet Yellen later in the day.
The Nikkei rose 0.7 percent to 18,603.48 points, the highest point of the day and the highest close since April 2000. The broader Topix gained 0.4 percent to 1,508.28, and the JPX-Nikkei Index 400 advanced 0.3 percent to 13,680.93.
12:00pm Market Check: The market remained rangebound. Oil, metals and select banks were under pressure while FMCG, capital goods and technology stocks continued to support the market.
The 30-share BSE Sensex rose 29.05 points to 29004.16 and the 50-share NSE Nifty advanced 9.05 points to 8764 while the broader markets underperformed. The BSE Midcap and Smallcap indices declined marginally.
Declining shares outnumbered advancing ones by a ratio of 1461 to 993 on the Bombay Stock Exchange.
Bharat Iyer, JP Morgan says equity markets remained well supported. “Equity markets are not vulnerable to earnings cuts in the near-term. The divergence between market performance and corporate earnings could continue in the near-term,” he adds.
Shares of Tata Motors, ONGC, Reliance Industries, Sesa Sterlite and Tata Steel slipped 1.5-2.5 percent followed by HDFC Bank and ICICI Bank with marginal loss. However, ITC, Larsen & Toubro, HUL, NTPC and BHEL gained more than 1 percent.
Telecom companies were in focus, reacting to the TRAI cutting termination charges for local calls to 14 paisa against 20 paisa. Termination charges for international incoming calls raised to 53 paisa per minute against 40 paisa earlier. Bharti Airtel declined 0.8 percent and Idea Cellular fell 1.7 percent.
Railway stocks like Texmaco Rail, Kalindee Rail and Titagarh Wagons fell 10-13 percent ahead of the Railway Budget which will be presented in parliament on February 26.
Globally, Asian markets except Hong Kong hit new highs today but traders traded cautiously ahead of Fed chairman Janet Yellen’s two-day testimony before Congress, which could give clues on the possible timeline of a rate hike in the US. Brent crude, however, traded below USD 60 a barrel.