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Interest rate sensitive stocks in focus as finance ministry announces initiating process to constitute MPC

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Last Updated : Jun 28 2016 | 11:13 AM IST

Interest rate sensitive banking, automobile and real estate stocks will be in focus after the finance ministry announced that it has initiated the process to constitute Monetary Policy Committee (MPC) under the Reserve Bank of India Act, 1934. Out of the six members of MPC, three members will be from the Reserve Bank of India (RBI), including the RBI Governor, who will be the ex-officio Chairperson of the MPC, the Deputy Governor, RBI and one officer of RBI. The other three members of MPC will be appointed by the central government on the recommendations of a Search-cum-Selection Committee, which will be headed by the Cabinet Secretary. These three members of MPC will be experts in the field of economics or banking or finance or monetary policy and will be appointed for a period of 4 years and will not be eligible for re-appointment. The meetings of the MPC will be held at least 4 times a year and the MPC will publicise its decisions after each meeting. A committee-based approach will add a lot of value and transparency to monetary policy decisions, the finance ministry said in a statement issued after trading hours yesterday, 27 June 2016.

Siemens announced that it has won an order worth approximately Rs 570 crore to supply Static Synchronous Compensator (STATCOM) solutions to Power Grid Corporation of India (PGCIL). The scope of the order includes design, engineering, supply, civil, installation, testing and commissioning of STATCOMs at four substation locations of PGCIL: Ranchi, Rourkela, Kishenganj and Jeypore across the states of Bihar, Jharkhand and Odisha. The announcement was made after market hours yesterday, 27 June 2016.

Bharti Infratel said that the company's proposed buyback of 4.70 crore shares at Rs 425 per share under tender offer route would commence on 12 July 2016 and close on 25 July 2016. The announcement was made before market hours today, 28 June 2016.

Shares of Tata Communications will be in focus. Liquid Telecom, a privately owned, pan-African telecoms group, majority owned by Econet Wireless Global, today, 28 June 2016 announced that it has entered into an agreement to acquire South African communications network operator Neotel. The shareholders of Neotel - Tata Communications of India and minority shareholders led by Nexus Connexion - have agreed for Liquid Telecom to acquire Neotel for ZAR6.55 billion. Liquid Telecom is partnering with Royal Bafokeng Holdings (RBH), a South African empowerment investment group, which has committed to take a 30% equity stake in Neotel. The transaction, which is subject to obtaining all affirmative approvals and other corporate approvals that may be required by the shareholders of Neotel and other regulatory approvals, is transformative and will create the largest pan-African broadband network and B2B telecoms provider. The announcement was made before market hours today, 28 June 2016.

Indiabulls Housing Finance said that the company proposes to issue 6250 Secured Non-Convertible Redeemable Debentures with a face value of Rs 10 lakh each aggregating to Rs 625 crore (plus greenshoe option), on private placement basis, pursuant to special resolution passed by the shareholders of the Company at the 10th Annual General Meeting held on 7 September 2015, on the terms and conditions. The announcement was made before market hours today, 28 June 2016.

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First Published: Jun 28 2016 | 8:49 AM IST

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