Key benchmark indices edged higher in early trade after global rating agency, Moody's Investors Service today, 9 April 2015, changed India's outlook to positive, saying there was an increasing probability that actions by policy makers will enhance the country's economic strength and, in turn, the sovereign's financial strength over coming years. The barometer index, the S&P BSE Sensex was currently up 96.88 points or 0.34% at 28,804.63. The market breadth indicating the overall health of the market was strong. IT and realty stocks gained.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 479.18 crore yesterday, 8 April 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 382.54 crore yesterday, 8 April 2015, as per provisional data.
In overseas markets, Asian markets were mixed today, 9 April 2015. US stocks posted modest gains yesterday, 8 April 2015, after a volatile session following the minutes of Federal Reserve's last meeting.
At 9:26 IST, the S&P BSE Sensex was up 96.88 points or 0.34% at 28,804.63. The index gained 167.33 points at the day's high of 28875.08 in early trade. The index rose 80.91 points at the day's low of 28788.66 in early trade.
The CNX Nifty was up 22.65 points or 0.26% at 8,737.05. The index hit a high of 8,759.90 in intraday trade. The index hit a low of 8,733.50 in intraday trade.
The BSE Mid-Cap index was up 62.19 points or 0.56% at 11,084.36. The BSE Small-Cap index was up 84.16 points or 0.72% at 11,719.54. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,026 shares gained and 313 shares fell. A total of 41 shares were unchanged.
Tata Motors gained 0.19%. With regard to news item titled Focus Shifts To Core Areas - Tatas Look to Put Auto Design Co on the Block", Tata Motors after market hours yesterday, 8 April 2015 clarified that Tata Motors along with its subsidiary currently holds 72.32% stake in Tata Technologies (TTL) and 15.47% stake is held by rest of the Tata Group. Tata Motors said it continually explores opportunities for optimising its capital deployment through various measures, such as improving operating cash flows, better working capital management, encashment of non-core assets, value realisation from some part of its investments including in TTL, as well as capital raising initiatives like the current rights offering. Tata Motors further said that it considers TTL as strategically important for its business. There is no intention of Tata Motors to sell majority/strategic stake in TTL and reports of divestment of the 90% stake are incorrect, Tata Motors said.
Rural Electrification Corporation (REC) rose 2.5% to Rs 338.30. The first CPSE disinvestment for the fiscal year 2015-16 got off to a thumping start yesterday, 8 April 2015, with the Rural Electrification Corporation (REC) OFS of government's stake getting fully subscribed within one and a half hour of opening.
On offer was 5% paid-up capital of the company comprising 4.93 crore shares. Out of the shares offered for sale, 20% were reserved for retail investors. In addition, a 5% discount was also offered to retail investors on price bid. With this disinvestment, the Government of India share in REC will come down to 60.64%.
At the end of the day with total subscription of Rs 7621 crore, the issue stood oversubscribed by 553%, the highest ever for an OFS.
The investor enthusiasm for the issue is borne out by the fact that the indicative price for retail was Rs 325.10 and for institutions Rs 324.73 both above the previous day 7 April 2015 closing price of Rs 321.65 and floor price of Rs 315. Seldom, if ever, has such an upward spiral been registered by an OFS.
The highlight of the issue has been the overwhelming retail investor participation, a record 902% oversubscription amounting to Rs 2887 crore. If we add retail bids through Mutual Funds then with Rs 528 crores, the total amount subscribed by retail investors adds up to Rs 3415. Significantly against a discount of 5.3% to the last traded price for the previous REC transaction in the 2010 FPO, the discount this time was only 2.1%
The OFS has been equally strongly endorsed by the institutional investors. At Rs. 4734 crore, it was oversubscribed by 466%, once again the highest ever for an OFS. The FIIs participation stood at impressive Rs 1692 crore or 20.71% of the subscribed amount.
Cipla dropped 0.46%. The company said before market hours that Cipla (EU), U.K., a wholly owned subsidiary of the company, has entered into a definitive agreement for acquisition of 100% stake in Duomed Produtos Farmaceuticos Ltda. (Duomed), a limited liability company in Brazil for a cash consideration of Brazilian Real (R$) 1,293,600 (approx. Rs 2.6 crore).
Duomed was incorporated on 10 June 2013. It has in place approval of ANVISA (Brazilian health authority) and other regulatory authorities to import and distribute pharmaceutical products in Brazil. The acquisition is part of company's front-end strategy and will expedite its product registrations in Brazil.
None of the persons belonging to promoter/promoter group(s) of the company has any interest in the transaction and it is not a related party transaction for the company. The transaction is expected to be completed by end of May 2015, subject to certain closing deliverables.
DLF gained 0.32%. The company said after market hours yesterday, 8 April 2015, that it has on 8 April 2015,fiiled an appeal before the Securities Appellate Tribunal against the order dated 26 February 2015 passed by the Adjudicating Officer, SEBI under Section 15HA and HB of the SEBI Act 1992 imposing a cumulative penalty of Rs 26 crore. A copy of the appeal has been served on SEBI. The appeal would come up for hearing before the Securities Appellate Tribunal in due course.
Moody's Investors Service today, 9 April 2015, changed India's outlook to positive, saying there was an increasing probability that actions by policy makers will enhance the country's economic strength and, in turn, the sovereign's financial strength over coming years.
Moody's said it expected structural advantages, supported by relatively benign global commodity prices and liquidity conditions, will keep India's growth higher than that of its peers over the rating horizon. The ratings agency affirmed India's Baa3 rating.
Asian markets were mixed today, 9 April 2015. Key indices in China, Indonesia, and Singapore fell by 0.08% to 1.24%. Key indices in Hong Kong, Taiwan, Japan, and South Korea rose by 0.01% to 3.59%.
US stocks posted modest gains yesterday, 8 April 2015, after a volatile session following the minutes of Federal Reserve's last meeting.
Minutes of the Federal Reserve's last meeting showed the Fed was still on course to hike interest rates this year. Fed officials acknowledged risks from overseas and a weak start to the year at their March meeting but remained confident enough in the strength of the recovery to continue laying the groundwork for an interest rate hike later this year, the minutes showed.
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