Money on the markets
A maturing market amid the mayhem
Shares in Hero Honda dropped as much as 9 percent on Wednesday, after a TV news channel reported the board of its Indian partner has approved the termination of the joint venture with Honda Motor.
Hero Corporate will acquire Honda Motor’s 26 percent stake in Hero Honda, for $1 billion to $1.2 billion, the channel said citing unnamed sources.
Shares in the company closed 5.4 percent lower at 1,621 rupees with 0.6 million shares.
Hero Honda shares have dropped over 15 percent so far this month. Do you see the counter dropping further?
The BSE Sensex fell 2.3 percent on Thursday, with banking shares leading losses as fears of foreign funds’ withdrawals in the absence of any positive trigger weighed on investors’ minds.
State Bank of India and ICICI Bank led the decline in the broader market, dropping 4.3 percent and 4.4 percent respectively.
The BSE Realty Index pared early losses and closed 5.6 percent higher in a volatile Tuesday session.
Government data showed infrastructure sector output grew 7.0 percent in October from a year earlier, faster than an upwardly revised annual growth of 2.7 percent in September.
Shares of real estate developers came under pressure on Thursday following the arrest of top public sector bankers the previous evening on corruption charges.
The CBI on Wednesday arrested five officials from state-run listed companies, including the chief executive of LIC Housing Finance, for taking bribes to facilitate large corporate loans.
Shares in Reliance Capital fell on the first day of trade after the company declared on Saturday consolidated net profit had declined 28 pct to 1.12 billion rupees.
The stock had hit a 52-week high of Rs 929.25 on January 19, 2010 and a 52-week low of Rs 611.30 on 21 May 2010.
Shares in Spanco rose 20 percent to hit the upper trading limit and a 52-week high after the company said it has got distribution franchise from Maharashtra State Electricity Distribution Co. worth 70 billion rupees.
Spanco shares closed nearly 15 percent higher at 199.45 rupees with volumes of over 2.5 million shares.
Power Grid shares fell 3.6 percent to 98.35 rupees on Monday after the government set a price range for its follow-on share offer at a discount to 12-17 percent to Friday’s closing price.
Power Grid, which launches a share sale to raise up to $1.7 billion, aims to double capital spending to about $27 billion in the five years starting in April 2012 to meet booming demand for electricity.
The BSE Metal index fell 1.3 percent on Friday and aluminium maker Hindalco Industries slipped more than 5 percent in intra-day trade, largely tracking a fall in international metal prices.
Base metals fell an average 1.9 percent, with copper reversing the previous session’s gains ahead of U.S. GDP data and next week’s pivotal FOMC meeting.
Shares of Tech Mahindra fell sharply on the first day of trade after the company declared a drop in Q2 profits after market hours on Tuesday.
Tech Mahindra said second-quarter net profit fell more than 10 percent as the IT services firm booked a charge related to its shareholding in Mahindra Satyam.
Shares of Idea Cellular fell nearly 4 percent after the company’s quarterly net profit slipped to 1.80 billion rupees from 2.20 billion rupees a year ago.
Idea Cellular lagged market estimates as quarterly profit fell on lower call prices, but the firm said improving economic conditions and 3G services would boost revenue in future quarters.