Money on the markets
A maturing market amid the mayhem
Shares in Zee News rose over 30 percent in intra-day trade before closing 27 percent higher at 18.25 rupees after it demerged its General Entertainment Channel business.
Zee News has approved the scheme of arrangement between the company, Zee Entertainment Enterprises and their respective shareholders and creditors, for demerger of the Regional General Entertainment Channel Business undertaking of the company.
“The analyst community is pegging the fair value of Zee News between Rs 20-22, so I do not know how attractive it becomes to enter at Rs 18,” says Sharmila Joshi of Emkay Global Financial Services.
The counter was the top mid-cap index gainer with volumes of over 67 million shares.
Various banking stocks were under pressure on Monday on concerns the Reserve Bank of India (RBI) would further hike interest rates.
The Bankex closed down 0.84 percent with 12 of 17 components in red.
Allahabad Bank and Bank of Baroda were the worst performers in the index, losing over 3 percent. Bigger players like ICICI Bank dropped 1.2 percent while SBI slipped 0.7 percent in trade.
It was not the perfect weekend for investors of unit-linked insurance products (ULIP) after market regulator SEBI barred 14 insurance firms from issuing or promoting such plans, which are a favourite among investors.
But Finance Minister Pranab Mukherjee said on Monday SEBI and insurance regulator IRDA have agreed to maintain status quo on ULIPs and also jointly seek a binding legal mandate from an appropriate board.
The BSE Auto Index gained 1.27 percent on Friday, as a top industry body official said he expected Indian vehicles sales to reach a record high for the second year in a row in 2010/11.
Shares in Tata Motors rose 4.5 percent to 808 rupees and ended as the top gainer among the Sensex and auto index components.
The BSE Oil & Gas index ended as the worst sectoral performer on Thursday, posting losses of 1.8 percent, as the Sensex slumped 255 points on increased expectations of a rate hike.
Reliance Industries and Cairn India dropped over 2 percent each and were the top losers in the index. ONGC slipped 1.97 percent.
The BSE IT Index continued its downtrend from yesterdays trade and ended nearly 1 percent lower on Tuesday.
Outsourcers that get most of their revenue from exports were weighed down by the rupee that strengthened to 19-month-high against the dollar on Monday and looked to climb further, which could squeeze profit margins of the companies.
Shares in Reliance Industries, India’s top listed firm, gained nearly 3 percent on Monday to 1125 rupees, boosting the BSE Oil & Gas Index over 2 percent.
The energy major was also the top contributor to the Sensex’s surge of nearly 250 points to its 25-month closing high.
Shares of Bharti Airtel closed 0.3 percent up on Wednesday in a broader market that ended 0.4 percent higher.
The telecom major hit an intra-day high of over 2 percent before closing.
Bharti Airtel needs to work on getting regulatory clearances for its $9 billion deal to buy 15 African operations of Kuwaiti telecom Zain, and turning around the loss-making assets would be its priority.