We had written in Tuesday’s closing report that Nifty, Sensex were likely to head higher. The major indices of the Indian stock markets were range-bound on Wednesday and closed with marginal losses over Tuesday’s close. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
Selling pressure in IT (information technology) and Teck (technology, media and entertainment) stocks, coupled with disappointing macro-economic data pulled the Indian equity markets lower on Wednesday. Besides, investors were cautious ahead of the US Federal Open Market Committee's meet later in the evening on whether or not to raise interest rates. However, the rupee was strong. On the NSE, there were 790 advances, 661 declines and 63 unchanged. On the BSE, there were 1,426 advances, 1,384 declines and 187 unchanged.
Asia's oldest bourse BSE on Tuesday launched futures on S&P BSE Sensex 50 index which will help investors to achieve portfolio diversification. "The market participants would be able to take a long-term view on the underlying. Introduction of additional indices will also lead to increased participation in the index futures market," it said in a statement. The index is designed to measure the performance of the top 50 largest and liquid stocks in the exchange's Large and Mid Cap by float-adjusted market capitalisation. Further, index futures contracts will lead to better price discovery and will be useful in hedging and risk management tools. According to the exchange, it will also take market towards a multi-product environment. "The index is diversified index as it represents each key economic sector identified by bourse's sector model covering approximately 53.9% of total market capitalisation of the exchange listed companies as of October 30, 2016," it added.
Reliance Communications (RCOM) has got the approval of the SEBI, BSE and NSE for the proposed de-merger of its wireless division into Aircel, the company said on Wednesday. Post-closing, RCOM and the present shareholders of Aircel will hold 50% each in Aircel. Industrialist Anil Ambani-led RCOM and Aircel announced plans to merge their wireless operations on September 14, 2016 to give birth to an entity with assets worth Rs65,000 crore. Reliance Communications shares closed at Rs36.80, up 1.52% on the BSE.
Anchor investors of Reliance Mutual Fund Central Public Sector Enterprises-Exchange Traded Fund (CPSE ETF) have bid for Rs5,700 crore, that is, over 7.5 times of Rs750 crore of reserved quota, said industry sources. Some of the anchor investors who participated in the bid on day one on Tuesday are BNP Paribas, Morgan Stanley, SocGen, CitiGroup while the domestic investors include LIC, Exide Insurance, SBI Bank, Axis Bank and Canara Bank. Reliance Mutual Fund, a part of Reliance Capital, plans to raise Rs2,500 crore through its second further fund offer (FFO) of its CPSE ETF. The issue opens for all other investors from March 15-17, 2017 with allocation priority to retail and PFs. The bids received by the anchor investors also surpass the aggregate issue size on the first day by over two times.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: