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Key Indian equity indices open in red

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Mumbai, Feb 19: Key Indian equity indices on Monday opened on a lower note as investors booked profits in metals, capital goods, oil and gas, and banking stocks.

At one point, the BSE Sensex dropped over 100 points.

Around 9.20 a.m., the barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 34,053.95 points, traded at 33,919.33 points — down 91.43 points or 0.27 per cent from its previous close.

The BSE market breadth was bearish as 806 stocks declined as against 487 advances.

On the the National Stock Exchange, the wider Nifty50 edged lower by 47.15 points or 0.45 per cent to trade at 10,405.15 points.

On Friday, the equity indices closed in the negative territory as heavy selling pressure in banks, along with rising crude oil prices, dampened investors’ risk-taking appetite.

The NSE Nifty50 declined by 93.20 points or 0.88 per cent to close at 10,452.30 points, while the BSE Sensex closed at 34,010.76 points — down 286.71 points or 0.84 per cent.

IANS

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Market Watch : FII’s inflows to help market register gains

Shares of Vedanta have gained in the past week post the announcement of the meeting for the interim dividend. They gained Rs 9.80, or 10.32% to close the week at Rs 104.80.

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Sensex Stock Market Update UP and Low

Markets continued to gain ground during the week gone by with gains registered on four of the five trading days. BSESENSEX gained 702.52 points or 1.76% to close at 40,685.50 points while NIFTY gained 167.90 points or 1.43% to close at 11,930.35 points. The broader market saw BSE100, BSE200 and BSE500 gain 1.51%, 1.58% and 1.64% respectively. BSEMIDCAP was up 2.43% while BSESMALLCAP was up 2.56%. The breadth of the market increasing as is apparent from the gains in midcap and Smallcap are the redeeming feature.

Indian rupee lost 28 paisa or 0.38% to close at Rs 73.62 to the US Dollar. Dow Jones was under pressure and lost 270.74 points or 0.95% to close at 28,335.57 points.

In primary market news, the fresh issue of Rs 280 crs and an offer for sale of 7.2 cr shares from Equitas Small Finance Bank Limited, was subscribed 1.95 times. The issue saw QIB portion subscribed 3.91 times, HNI portion undersubscribed at 0.22 times, Retail portion subscribed 2.08 times and Shareholder reservation undersubscribed 0.42 times. The price band of the issue was Rs 32-33.

Vedanta Limited has declared an interim dividend of Rs 9.50 for the current financial year 2020-2021. This is from the dividend which it has received from its subsidiary, Hindustan Zinc Limited of Rs 16.50 per share or Rs 6,972 crs. The dividend received by Vedanta against its holding of 64.92% was Rs 4,526 crs. Vedanta has distributed 77% or Rs 3,500 crs of this amount to shareholders of the company. The dividend by Hindustan Zinc was declared in May 2020. Probably Anil Agarwal was super confident that he would be able to pull of the delisting at the ridiculous price of Rs 87.25 and therefore used the proceeds of the dividend to fund his delisting war chest. Looking at it another way he felt that if he succeeds in delisting, the dividend would not have to be shared with minority shareholders. Failing in the exercise, he has distributed the same as per the company dividend policy after five months.

Incidentally, Hindustan Zinc has announced a second interim dividend of Rs 21.30 per share totalling Rs 9,000 crs on 20th October. Assuming that Vedanta would distribute the similar 77% of the dividend received, this would amount to Rs 12.25 per share. On a simple maths and assuming the price of Vedanta to be Rs 100, the two dividends, one proposed and one expected, total Rs 21.75, a dividend yield of 21.75%. Wonder how many companies if any, can boast of that record. Its high time that promoters stop taking their minority shareholders for a ride.

Incidentally, the government has proposed a strategic sale of Hindustan Copper and with Sterlite’s Tuticorin copper smelter plant shut, this becomes a must acquire proposition for Vedanta. Currently there are just two copper smelters in India and both are owned by state run Hindustan Copper Limited. The others like Birla Copper and Sterlite were importing copper concentrates to make cathodes. Its high time, the Anil Agarwal group mends its way and tries to becoming more investor friendly.

Shares of Vedanta have gained in the past week post the announcement of the meeting for the interim dividend. They gained Rs 9.80, or 10.32% to close the week at Rs 104.80.

The buoyancy in the markets has been helped by FII’s being buyers in the market. On a monthly basis they were net sellers of Rs 11,410 crore in September, which they have more than bought back with net purchases of Rs 13,565 crore in October so far. They had also bought Rs 15,749 crs in August of this year. As long as the inflow is so strong where 2 billion dollars are pumped in a month, it would be fair to say that markets cannot fall. If to this you add the fact that the breadth of the market is increasing you have a setting for the present optimist mood to continue.

On the Covid-19 front, the world saw 4,29,46,446 patients with 11,54,862 deaths and 3,16,73,006 people recovering. In India, the number of patients were 78,64,811 with 1,18,567 deaths and 70,78,123 people recovering. Compared to the previous week, there were 29,86,795 new patients, 40,221 deaths and 17,82,622 people recovering. In India there were 3,70,260 new patients, 4,503 deaths and 4,80,914 people recovering. The number of patients recovering has been consistently more than new patients and the same is a very positive sign. The successful launch of a vaccine is eagerly awaited while some countries have begun mass scale administering of dosages for the same.

The week ahead sees October futures expire on Thursday the 29th of October. The present level of NIFTY is higher by 1,124.80 points or 10.41% for the series. This double-digit gain is huge and quite unnatural. One must of course exclude the fall this year in March2020 when the pandemic broke out and the recovery which followed in April 2020. Expect the bulls to build on the same while the bears would try to claw some of it back. Results so far for the NIFTY pack have been good and are fuelling the rally.

With expiry just four days away, expect markets to be volatile and have larger intraday movement. As long as there is no major negative news flow it would be fair to assume that markets would continue to register gains no matter how much smaller. Positive inflows from FII’s would further help markets to gain ground. Continue using sharp dips to add to positions and rallies to sell.

–IANS

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If GST has failed, revert to the old tax system: Uddhav Thackeray

“Don’t destabilise the non-BJP governments. If these things continue, it will lead to an anarchic situation in the country,” Thackeray warned.

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Uddhav Thackeray

Mumbai : In a significant statement, Shiv Sena President and Maharashtra Chief Minister Uddhav Thackeray on Sunday said that if the system of GST has failed, then the Centre should honestly admit it and revert to the old system of taxation in the country.

Addressing the party’s annual Dassehra Rally online with only 50 people present in an auditorium near Shivaji Park, Thackeray said that Maharashtra has not been refunded its Goods & Service Tax (GST) dues of Rs.38,000 crore which has created huge financial crises for the state in the Corona pandemic times.

“From all this, it appears that the GST system is proving a hoaxa It is time to review the present form of GST as the states are not beneittinga If it is not working, the Prime Minister should honestly admit it and bring back the old system of taxation,” Thackeray said.

Referring to similar problems faced by other states, Thackeray said the country is not of one party and urged Chief Ministers of states to join together, meet the PM to discuss and sort out the issues.

At the same time he lashed out at the Bharatiya Janata Party for promising to distribute free Corona vaccines to the people of Bihar if itsAalliance is voted back to power in its poll manifesto.

“On one hand you don’t give us our legitimate GST dues and on the other, you promise free vaccines to people Bihara Where will the money come from? So what about other people of Indiaa Why this blatant discrimination? Is the rest of the country a Pakistan,” Thackeray said.

In another veiled punch on Governor Bhagat Singh Koshyari without taking any names, Thackeray questioned the credentials of those who sought to enquire about his ‘Hindutva’, referring to the recent letter-war.

“Our ‘Hindutva’ is far older and different from your ‘Hindutva’. The late Balasaheb Thackeray spoke about it when others were even scared to utter the word. I have pounced once, if needed will pounc again,” Thackeray warned.

Taking a swipe at the state Opposition BJP leaders and those wearing ‘black caps’, Thackeray advised them to listen carefully to RSS Chief Mohan Bhagwat’s Dassehra Rally speech.

“Our ‘Hindutva’ is not limited to deities, temples or pujas or ringing bells or banging thaalis. Our ‘Hindutva’ itself is our Nationalism. You enacted a cow protection law in Maharashtra, why not in Goa,” he asked.

“Shiv Sena had demanded to make Mohan Bhagwat the President, but they have joined hands with Nitish Kumar’s party in Bihar which wanted no truck with anybody connected with RSS. Don’t play political games of ‘iski topi, uske sar’ in the name of ‘Hindutva’,” Thackeray said.

Training guns on the BJP and Leader of Opposition Devendra Fadnavist for their hurry in toppling the Shiv Sena-Nationalist Congress Party-Congress Maha Vikas Aghadi government, Thackeray took another jibe, saying despite many “Tarikh pe Tarikh, my government has survived and is stable”.

“From day one when I took over as CM, some people are dreaming of throwing me out. I repeat what I said then – This is an open challenge. If you have the guts, then try to dislodge my government,” Thackeray said.

The CM expressed concern over the “strange goings-on” in the country which is in the grip of the Corona pandemic, the economic crises and other serious issues, saying, “but the BJP is only interested in playing temple politics in lockdown and busy felling state governments during the pandemic”.

“Don’t destabilise the non-BJP governments. If these things continue, it will lead to an anarchic situation in the country,” Thackeray warned.

Without naming actress Kangana Ranaut, the CM said, “Those who don’t even proper food in their state come here, make money and then become ‘namak-haram’ (traitors) by comparing Mumbai with Pakistan Occupied Kashmir and defaming the state, its leaders and the police department.”

“Temples will be opened at the right time. I also have full faith in the Mumbai Police, they are among the best in the world. Anybody attempting to separate Mumbai from Maharashtra would be reduced to dust. Had you (BJP) had spared so much time for the people of the country as you do for your party activities, it would be better for all,” Thackeray declared.

The Covid-compliant mini-Dassehra Rally was held in the Swatantraveer Savarkar auditorium – an unprecedented development since the inaugural rally in 1966 – and the first by Thackeray as the CM, with the presence of top Sena leaders, ministers and elected representatives, while it was telecast and webcast live to the audiences across the state.

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Starlink project takes Musk’s SpaceX valuation to $100 billion

A Morgan Stanley research note said that “the pieces are coming together for SpaceX to create an economic and technology flywheel”.

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elon musk

San Francisco, Oct 25 : Driven by its ambitious Starlink project, Elon Musk-run SpaceX has received a &100 billion valuation by US-based investment bank Morgan Stanley — from $52 billion just three months ago.

The bank’s “bull case” which is the absolute best-case scenario — puts the rocket company at a value above $200 billion, report Forbes.

The bank has raised the estimated value of Starlink to $81 billion.

While SpaceX’s launch business is valued at $12 billion, its point-to-point space travel is valued at $9 billion, describing Musk’s space business as “mission control” for the “emerging space economy.”

A Morgan Stanley research note said that “the pieces are coming together for SpaceX to create an economic and technology flywheel”.

“Investors just valued SpaceX in August, when the company raised $1.9 billion in funding — at a valuation of $46 billion” then.

Last week, SpaceX launched 60 more Starlink satellites aboard Falcon 9 rocket to be deployed in low-Earth orbit, bringing the constellation to 788 as the company gears up for a public beta of the affordable satellite broadband service.

SpaceX recently presented the Federal Communications Commission (FCC) Starlink internet performance tests, showing it was capable of download speeds of between 102Mbps to 103Mbps, upload speeds of 40.5Mbps to not quite 42Mbps, and a latency of 18 milliseconds to 19 milliseconds.

“Once these satellites reach their target position, we will be able to roll out a fairly wide public beta in the northern US and hopefully southern Canada,” SpaceX CEO Elon Musk said in a tweet earlier this month.

“Other countries to follow as soon as we receive regulatory approval,” he added.

It is expected that there will be gigabit speeds on offer, meaning up to 1Gbps Internet speeds, with a fairly low latency of up to 25ms.

Starlink plans to offer these Internet services for around $80 per month, which is priced at par if not lower than similar speed broadband plans in most countries, including India.

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