Friday April 11, 03:30 PM
Uncertain but positive... |
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By Equitymaster.com
The broader markets had a positive day overall, but not in an emphatic manner as they could not hold on the gains of the mid-session trading. Engineering heavyweights and select banking and software stocks aided the indices today. As regards global markets, while the Asian indices closed in the green, the European indices are witnessing a positive trend currently.
The BSE Sensex closed at 15,808 (up 113 points) while the NSE Nifty closed at 4,778 (up 45 points). The rupee was trading at 39.96 to the dollar.
The markets opened in the green, made a quick dart towards the dotted line, recovered there after but then registered a gradual slip southwards in an uncertain but positive day's trading. Both the BSE midcap index as well as the BSE smallcap index closed 1% higher. The overall market breadth was positive with gainers outnumbering losers by a ratio of 3:2 on the broader BSE. BHEL (BHEL.BO, news) and L&T (up 4%) led the pack of gainers, while Ambuja Cements (down 2%) and Infosys (down 4%) led the pack of losers.
As per a leading business daily, RIL is in talks with several oil majors to sell up to 10% in its deep-water D6 block off India`s east coast. Royal Dutch Shell, ExxonMobil, Chevron and BP have shown interest in the deal. RIL owns 90% in the block, while the Canadian oil firm Niko Resources owns the rest. The company stands to benefit in terms of the technological expertise of the international majors in ultra deep water drilling required for the block. The move is likely to happen after the uncertainty over gas pricing is resolved. A higher gas price would lead to better valuations for the asset. RIL closed higher by 3%, while ONGC remained unchanged.
As per a leading business daily, Yes Bank has zeroed in on two banks as possible acquisition targets and could execute the buy-out in the next 18 to 24 months. The company believes that bank valuations are at reasonable levels making the case for an acquisition attractive. Interestingly the management is opposed to being acquired in-turn. The management feels it would lead to a loss of its identity and vision. It may be noted that the bank has managed to emerge unscathed from the acute liquidity and net profit margin pressure faced by most of its peers due to the lack of fee income hedge, lack of diversity in revenue steam and commoditised lending business. Yes Bank closed lower by 3%, while Axis Bank ended 2% lower.
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