Sensex records 5,500
By Our Markets Bureau | 20 Dec 2003
Mumbai:
Riding on strong investor confidence in the expected 3rd
quarter performance of corporates and an expectation of
stronger participation in the stock markets by foreign
institutional investors, the 30-share sensex closed at
5541.35, gaining 86 points, on Friday, December 19, 2003.
This was marginally short of 5541.54 - its highest ever, recorded on April 11, 2000.
In
a setback to creditors, and a boost to defaulting companies,
the Supreme Court has postponed its judgement in Mardia
Chemicals v/s ICICI Bank. In October 2002, ICICI Bank
had acquired assets of Mardia Chemicals on its inability
to repay loans of Rs 185 crore.
The company filed a case against the bank and obtained an order preventing ICICI Bank from liquidating the acquired assets. Though the bank has contested the case, the postponement of the judgement, will hold up recovery plans of secured creditors like banks and institutions, which had regarded this as a test case at the apex court.
Apart
from its dues to ICICI Bank, Mardia Chemicals has defaulted
on its repayments worth Rs 68 crore to IFCI, Rs 50 crore
to LIC and HSBC each and Rs 37 crore to IDBI.