Nirma bucks FMCG slide, jumps 27 per cent in a fortnight
Ahmedabad: At a time when the share prices of leading FMCG companies are passing through a bearish phase, the Ahmedabad-based detergent major, Nirma, has bucked the trend. The share price of Nirma witnessed a sudden jump, which shot up by over 27 per cent to its highest level in just 16 days. The price went up from Rs 260 on April 30 to Rs 330.20 on Thursday. Amidst the subdued sentiment for FMCG stocks, the share price of Nirma gained by 5.5 per cent on Thursday, after touching a high of Rs 333 on the BSE. However, BSE FMCG index gained only a marginal 0.22 per cent
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Central Listing Authority soon
Mumbai: The Securities and Exchnage Board of India (SEBI) has notified that it would establish the Central Listing Authority (CLA).
According to a SEBI release, the exact date of establishment will be announced shortly. The release further added that till such time as the date is specified, all listing applications should be made to stock exchanges directly and stock exchanges will deal with such listing applications as also pending listing applications as per current rules and procedures.
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Singapore Govt takes 3 per cent stake in Divi's Lab
Mumbai: A foreign institutional investor (FII), Government of Singapore, has taken around three per cent stake in the Hyderabad-based pharma company Divi's Laboratories in the last one month. Market sources said the FII bought the shares from the open market between Rs 225-250 per shares. Apart from the Singapore Government, several other domestic funds and FIIs have also bought shares from the open market. The company early this year had come out with a public issue of 32 lakh shares at Rs 140 per share through the book-building route and the issue was oversubscribed around 19 times.
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SBI back on FIs' buy list
Mumbai: The stock of State Bank of India is back on the buy list of several domestic institutions in the last couple of days. Dealers said the revived interest in the counter is due to the sharp rise in most of the public sector banks that were bought by these institutions. The talk is that the institutions are actively buying the shares of SBI as most of the other PSU banks' valuation has come close to SBI valuations. Dealers said except for SBI, all other PSU banks have been re-rated and the recent developments in the banking sector such as buyback of G-Secs by the Government and Securitisation Bill would benefit SBI the most. The expectation that the Government may allow hike of FIIs' stake in the bank is not being taken seriously by these institutions. On Thursday, the stock of SBI gained 1.27 per cent at Rs 306.55 on the BSE with a volume of 8.78 lakh shares and on the NSE it closed at Rs 307, up 1.37 per cent with a volume of 25.80 lakh shares.
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GAIL shares hit new top
Kochi: The share price of Gas Authority of India Ltd (GAIL) hit a new high on the BSE on Thursday at Rs 84 and the counter witnessed large volumes on sustained operator interest. Brokers said that ever since the stock has been included in the MSCI, fund and market interest in the counter has increased. Funds such as Templeton, UTI, Taurus, DSP Merrill Lynch, SBI, to name a few, hold shares of this company. While good profits and book value are a definite plus as regards the company, there had been concerns that the stock is in a `tight trading mode'. However, the new `top' of Rs 84 is being perceived as a breakout for this counter. The stock ended at Rs 81.50 on the BSE, up 1.49 per cent with around 4.06 lakh shares traded. On the NSE, the stock ended the day at Rs 81.65 up 1.30 with around 5.89 shares traded.
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Investing ECB money in MF debt plans
Mumbai: Some Indian companies have found an easier way to boost their income — not by improving their performance, but by borrowing in dollars overseas and investing it in debt plans of domestic mutual funds that have returned more than 13 per cent in the past year. The rallying debt markets, strengthening rupee against the dollar, the sliding forward premia and the relatively easy guidelines for raising external commercial borrowings have opened an arbitrage opportunity for financially sound corporates to exploit. External borrowings up to $50 million and an average maturity of not more than three years can be put through the automatic route.
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