Money on the markets
A maturing market amid the mayhem
Shares in Reliance Industries closed 3 percent lower on Tuesday, a day after the company pushed ahead with its diversification plan by acquiring a stake in hotel chain EIH for $217.5 million.
Reliance is already active in petrochemicals, refining, oil and gas, and retail.
Analysts said the deal was likely to thwart designs of EIH’s larger rival ITC, which holds a 14.98 percent stake in EIH, to raise its stake in the hotel chain.
Reliance shares ended lower at 918 rupees, while EIH, which opened 9 percent higher, pared most of its gains and ended 7.1 percent lower at 139 rupees with volumes of 9.1 million shares.
Tata Steel ended 3.5 percent higher at 527 rupees after the company said on the weekend its unit Corus has reached an agreement with Thailands SSI on the potential $500 million sale of its mothballed Teesside plant.
Shares in Tata Steel were among the biggest gainer among the Sensex stocks and ended with volumes of 1.9 million shares on BSE.
Though these slabs will put some extra money in taxpayers’ pockets as compared to existing slabs, the original slabs proposed in the first draft of the direct tax code have been diluted.
It was a tough day for real estate counters as the sectoral index dropped more than 3 percent and ended as the top loser among BSE indices.
All but one stock in the index closed in red, with Orbit Corp shares ending down 5 percent as the top loser. Indiabulls Real Estate slipped 3.8 percent.
The BSE Banking index ended down 0.5 percent on Tuesday, with stocks such as Union Bank, Canara Bank and Oriental Bank of Commerce slipping more than 3 percent.
Bigger players like ICICI slipped 0.9 percent but SBI bucked the trend and gained 0.8 percent in the session.
Shares in oil marketing firms like BPCL, HPCL and IOC surged on Monday, helping the BSE Oil & Gas index close marginally in positive.
Shares of such firms rose amid reports that companies have received subsidy from the government to ease selling losses and on expectations that the government may deregulate diesel prices soon.
Realty counters posted decent gains in Friday trade, pushing the realty index up 1.8 percent in a weak Mumbai market that closed 53 points lower.
Sobha Developers topped the index with gains of 4 percent, followed by DLF, India’s top listed realty firm, which closed 3.55 percent up. Unitech shares ended 1.5 percent higher.
HDFC Bank, India’s second-largest private bank, rose as much as 2.4
percent to an all-time high of 2,240 rupees during trade on Thursday,
before closing 1.95 percent higher.
It was a good day for financial stocks overall, which rose on the back of rising FII inflows who have been lured by 8.5 percent economic growth forecast this year.
IT stocks posted decent gains on Wednesday, pushing the sectoral index up nearly 2 percent as robust profits from U.S. retailing giants boosted confidence in the corporate outlook in the world’s largest economy.
Mphasis topped the BSE IT Index with a 3.8 percent gain, followed by HCL Tech which rose 3.1 percent. Bigger players like TCS and Infosys posted gains of 2.1 percent and 1.92 percent respectively.