Money on the markets
A maturing market amid the mayhem
Shares in oil marketing firms like BPCL and HPCL posted decent gains on Wednesday on hopes of a fuel price hike.
Oil Secretary told reporters India will soon take a decision on raising diesel prices, in an effort to lower the government’s subsidy bill and boost the financial health of oil marketing firms.
HPCL gained 3.4 perncet, BPCL rose 2.1 percent while IOC shares ended 0.75 percent up.
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Shares in Unitech, one of India’s top listed realty firm, gained 5 percent on Tuesday even as other stocks in the realty index ended weak.
The BSE Realty index ended down nearly 1 percent, with stocks like Indiabulls Real Estate and DB Realty ending down around 5 percent.
It was not a great start to the week for banking counters, as the BSE Banking index dropped 2.3 percent on fears margins could be hit.
India’s top lender State Bank of India said it will raise deposit rates by between 50 and 150 basis points for various maturities, with effect from Dec. 7.
Shares of Murli Industries, Ackruti City Ltd, Welspun Corp and Brushman India closed lower a day after SEBI (Securities and Exchange Board of India) said the firms had indulged in “fraudulent and unfair trade practices”.
SEBI on Thursday evening said the four firms had raised funds through a qualified institutional placement or foreign currency convertible bonds during 2007-2009 and the Dangi group was observed to be trading substantially in the shares of these firms around the same period.
Shares in Indian Oil Corporation ended 10.96 percent higher on Wednesday. Its chairman said the firm aims to raise $4.4 billion in January through a FPO and that the pricing for offer was likely to be at 450 rupees apiece.
Shares were up as much as 14 percent during trade.
The Indian government is selling a 10 percent stake, while the company will offer an equal number of new shares to raise 20 billion rupees, making the sale the biggest-ever share offering in the Indian market.