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Sensex, Nifty rebound amid consolidation; Pipavav falls 10%


The News International Team

9:45 am Interview: AB Volvo’s decision to sell a part of its stake in Eicher Motors will not impact the joint venture between the two companies, said Vinod Aggarwal, CEO, Volvo Eicher Commercial Vehicles.

Earlier this week, Volvo said it would sell half its 8.4 percent stake in Eicher Motors.

Aggarwal said VECV was growing faster than industry in the bus, light and medium commercial vehicle segment.

9:30 am First day of telecom auction: The biggest ever auction of 2G and 3G airwaves Wednesday began on a high note with operators makingbids worth an estimated Rs 60,000 crore after six rounds of bidding in all four bands. The bidding will resume tomorrow morning in the auction through which the government was expecting to raise over Rs 82,000 crore. The final amount may go much higher if bids continue at such an aggressive pace.

“Six rounds of bidding were concluded today with bids worth Rs 60,000 crore coming in all the four bands on offer,” a source privy to the development said. Incumbent Bharti Airtel and Vodafone are locked with upstart carrier Reliance Jio of billionaire Mukesh Ambani to protect their spectrum they need to carry voice and data in the world’s second-biggest smartphone market. In all, eight bidders are in fray.

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The market rebounded with marginal gains on Thursday. The Sensex rose 62.50 points to 29443.23 and the Nifty advanced 6.75 points to 8929.40.

About 365 shares have advanced, 140 shares declined, and 97 shares are unchanged on the BSE.
M&M, Sun Pharma, ITC, Cipla, Bajaj Auto, BHEL, Tata Motors and L&T are prominent gainers in early trade while ICICI Bank, NTPC, GAIL, Infosys, HUL and Jindal Steel are under pressure.

Reliance Infrastructure gained 2 percent and Pipavav Defence tanked 10 percent. Reliance Infrastructure has acquired 18 percent promoter’s stake in Pipavav Defence for Rs 819 crore at Rs 63 apiece. Reliance Infra will make open offer for 26 percent stake in Pipavav at Rs 66/share.

The Indian rupee has opened lower, down 7 paise to 62.32 a dollar compared to 62.25 a dollar in previous session.

Mohan Shenoi, Kotak Mahindra Bank says the overnight dollar rally against major currencies and weak global equity markets is likely to exert pressure on rupee today.

He expects the rupee to trade in a range of Rs 62.20-62.50/USD today.

Meanwhile, in case of bond yields, he says despite the surprise 25 bps cut in policy rate by RBI, the bond yields rallied only by 7-8 basis points due to profit booking, comments by rating agencies and weakness in the stock and forex market.

“Bond yields are expected to remain rangebound for some time. 8.40 percent GOI 2024 is expected to trade in a range of 7.67-7.71 percent today,” he adds.

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