Weak global cues, concerns over India-China tensions, and an unwelcome news on the Covid front dragged the Indian equity markets nearly one per cent lower on Wednesday.
The S&P BSE Sensex slid 200 points to 39,120 levels and the Nifty50 index hovered around 11,250-mark. ONGC and Tata Steel (both down 3 per cent) were the top Sensex laggards. On the other hand, Reliance Industries rose 2 per cent after announcing that Silver Lake would invest Rs 7,500 crore in Reliance Retail.
Meanwhile, AstraZeneca Pharma tumbled 13 per cent after the company "voluntarily paused" a randomized clinical trial of its coronavirus vaccine in what it called a routine action after a volunteer developed an unexplained illness.
IRCTC shares also slid 4 per cent in early deals after the company said the government plans to sell about 15-20 per cent stake via offer for sale (OFS) and would like to complete the transaction in minimum number of tranches.
The trend among the Nifty sectoral indices was dominantly negative, led by Nifty Bank index, down 2 per cent.
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02:00 PM
As rates nosedive, NBFCs swarm CP markets to raise ultra-cheap funds
What the banks and other investors are doing instead is investing in short-term commercial papers. Sensing an opportunity to raise cheap funds, companies in the NBFCs sector have moved in, raising three months money at even cheaper than the overnight repo rate of the Reserve Bank of India (RBI). The NBFC sector largely comprises financial institutions, housing finance companies (HFC), NBFCs, and microfinance institutions (MFI). READ MORE
01:47 PM
Sebi tightens grip on board composition at market infra institutions
The regulator already has a strict framework in place dictating the appointments and tenures of board members at stock exchanges, clearing corporations and depositories –termed MIIs in market parlance. However, it appears the regulator opposed reappointment of certain ‘shareholder directors’ due to concerns over their lengthy association. READ MORE
01:35 PM
Expert View :: Jyoti Roy - DVP- Equity Strategist, Angel Broking on RIL-Silver Lake deal
RIL has announced that Silver Lake will invest Rs 7,500 crore in Reliance Retail Ventures Limited (RRVL), the retail arm of Reliance Industries Ltd. (RIL) for a 1.75% equity stake thus valuing the retail business at Rs 4.21 lakh crore. The implied equity value for Reliance retail at Rs 4.21 lakh crore is at the higher end of market expectations and is sentimentally positive for the stock. This investment by Silver Lake comes on the back of the company announcing the acquisition of the Retail, Wholesale, Logistics and Warehousing Business from the Future Group on a slump sale basis for a total consideration of Rs 24,713 crore.
We also believe that the acquisition of future retail business by Reliance Industries Ltd. and investment by Silver Lake in RVVL are steps in the right direction. We expect the company to attract further investments in the retail business from other investors which will help consolidate its dominant position in the retail business. We remain positive on Reliance industries Ltd. and expect that the digital and the retail business will be the future growth drivers for the company. Further investments in the retail business and scaling up of Jio Mart business will be key triggers for the company in the near future. Listing of the digital and retail business over the next few years would also lead to significant value unlocking for shareholders in the long run. We continue to maintain our buy rating on reliance Industries with a target of Rs 2,366
01:27 PM
MARKET UPDATE:: Infibeam Avenues is the only stock to have hit its 52-week high on the BSE today
01:21 PM
Nifty Pharma index gains 1% in an otherwise weak market
01:09 PM
Silver Lake's Rs 7,500 cr investment in Reliance Retail sets stage for more
Investors such as Abu Dhabi Investment Authority and Mubadala could be next in line, though a Reliance spokesperson said it could not comment on market speculation.
"As a policy we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations under SEBI and our agreements with the stock exchanges," the spokesperson said. READ MORE
01:09 PM
Contribution to the S&P BSE Sensex's fall today
12:59 PM
IPO Alert :: Happiest Minds subscribed over 42x till 12:45 pm
Alert: Today is the last day for Happiest Minds' IPO subscription
12:49 PM
IPO Alert :: Route Mobile subscribed 34% till 12:30 pm
12:40 PM
NEWS ALERT | Zydus Cadila gets tentative approval from US FDA to market Empagliflozin & Linagliptin Tablets: Exchange filing
-- The drug is used together with diet and exercise to improve blood sugar control in adults with type 2 diabetes mellitus
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