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L&T Finance Holdings drops as L&T announces OFS

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Last Updated : Jun 11 2014 | 11:51 PM IST

A bout of volatility was witnessed as the 50-unit CNX Nifty slipped into the red after opening higher. Real time data on BSE indices was not updating on the exchange's website even as data on individual share prices was updating. The Nifty was currently down 8.25 points or 0.11%.

Crompton Greaves rose after the company said that its automation business unit has been awarded a significant contract for supply of 7.5 lakh smart meters from the Spanish utility Gas Natural Fenosa (GNF). Hindustan Unilever dropped as the stock turned ex-dividend today, 11 June 2014, for final dividend of Rs 7.50 per share for the year ended 31 March 2014 (FY 2014).

Foreign portfolio investors (FPIs) bought shares worth a net Rs 682.26 crore on Tuesday, 10 June 2014, as per provisional data from the stock exchanges.

At 9:35 IST, the CNX Nifty was down 8.25 points or 0.11% to 7,648.15. The index hit a low of 7,636.50 in intraday trade. The index hit a high of 7,676.40 in intraday trade.

HDFC (down 1.43%), NTPC (down 1.07%) and Tata Motors (down 0.66%) edged lower from the Sensex pack.

L&T shed 0.88% to Rs 1,721.50. Shares of L&T Finance Holdings dropped 3.84% to Rs 78.80. L&T, the promoter of L&T Finance Holdings, after market hours on Tuesday, 10 June 2014, announced Offer for Sale (OFS) of up to 1.65 crore shares, constituting 0.96% of the equity share capital of the L&T Finance Holdings exclusively through the seller's broker on the separate window provided by the stock exchanges. L&T said it may sell additional 1.1 crore shares of L&T Finance Holdings via the OFS. The OFS takes place today, 11 June 2014. The sale will take place at a separate window of the stock exchanges. The floor price for the OFS was set at Rs 74 per share, a discount of 9.7% to Tuesday's closing price of the stock on BSE at Rs 81.95.

Hindustan Unilever shed 0.74% to Rs 634 as the stock turned ex-dividend today, 11 June 2014, for final dividend of Rs 7.50 per share for the year ended 31 March 2014 (FY 2014).

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UltraTech Cement declined 0.23% to Rs 2,785. With respect to news article titled UltraTech Cement to buy Jaiprakash Associates' Rewa cement plants, UltraTech Cement after market on Tuesday, 10 June 2014, said that the company does not comment on market speculation. Media reports said that UltraTech Cement is in talks to buy cement assets from Jaiprakash Associates, including Jaiprakash's Rewa cement-making complex in central India. UltraTech last year agreed to buy a Jaiprakash cement unit based in Gujarat.

Aurobindo Pharma rose 1.41%. The stock turned ex-dividend today, 11 June 2014, for 2nd interim dividend of Rs 1.75 per share for the year ended 31 March 2014 (FY 2014).

Idea Cellular gained 1.93% to Rs 148.05. The company before market hours today, 11 June 2014, said that that pursuant to the resolution passed by the Board of Directors of the company at a meeting held on 1 August 2013, the Securities Allotment Committee of the board, at its meeting held on Tuesday, 10 June 2014, inter alia, has approved making of issuance of upto 5.18 crore equity shares for cash at a price of Rs 144.68 per equity share aggregating to about Rs 750 crore on a preferential basis to Axiata Investments 2 (India) (a wholly owned subsidiary of Axiata Group Berhad, Malaysia), subject to necessary approvals.

Crompton Greaves rose 1.15% after the company said after market hours on Tuesday, 10 June 2014 that its automation business unit has been awarded a significant contract for supply of 7.5 lakh smart meters from the Spanish utility Gas Natural Fenosa (GNF) and will be one of its main smart meter suppliers for the next two years.

Finance Minister Arun Jaitley said on Tuesday, 10 June 2014, that the growth of the country has been below 5% in the recent years. He said that economic growth cannot be compromised at any cost. The Finance Minister said that the government is committed to bring the economy back on the track. He said that priority of the Government would be to restore the economic growth, curb inflation, follow the path of fiscal consolidation and to create an environment for higher employability. The Finance Minister was making the opening remarks during his Pre-Budget consultation with economists.

Major suggestions from economists included doing away with retrospective tax amendments, removal of all kind of cess and surcharges and instead increase rate of tax if so required, removal of dividend distribution tax and introduction of inheritance tax above certain threshold limit as in case of many other capitalist countries.

The next major trigger for the market is the Union Budget for 2014-15. Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by mid-July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.

On the macro front, the government will unveil industrial production data for April 2014 tomorrow, 12 June 2014. Industrial production shrank for a second straight month in March 2014. Industrial production declined 0.5% in March 2014, compared with a contraction of 1.8% in February 2014.

The government is scheduled to announce data on inflation based on the combined consumer price index (CPI) for rural and urban India for May 2014 tomorrow, 12 June 2014. Inflation based on the CPI accelerated to 8.59% (provisional) in April 2014, from 8.31% (final) in March 2014. Core CPI which excludes food and energy prices eased to 7.8% in April 2014, from 7.81% in March 2014.

Asian stocks edged higher in choppy trade on Wednesday, 11 June 2014, extending a four-day rally. Key benchmark indices in Indonesia, Taiwan, South Korea and Japan were up 0.03% to 0.28%. Key benchmark indices in Singapore, Hong Kong, and China were off 0.25% to 0.37%.

China will quicken interest rate liberalisation and preparations for setting up a deposit insurance system in 2014, the central bank said on Wednesday. The People's Bank of China (PBOC) reiterated elements from its 2013 annual report stating it would keep its monetary stance prudent, while still making pre-emptive moves to fine-tune policy.

Most US stocks managed small gains on Tuesday, with the Dow Jones Industrial Average closing at an all-time high.

Data showed US wholesale inventories increased 1.1% in April, more than the estimates. A separate report showed job openings rose to 4.5 million in April from 4.17 million in March.

The World Bank cut its global growth forecast amid weaker outlooks for the US, Russia and China, while calling on emerging markets to strengthen their economies before the Federal Reserve raises interest rates. The Washington-based lender predicts the world economy will expand 2.8% this year, compared with a January projection of 3.2%. The US forecast was reduced to 2.1% from 2.8% while outlooks for Brazil, Russia, India and China were also lowered. The 2015 estimate for world economic growth was unchanged at 3.4%.

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First Published: Jun 11 2014 | 9:39 AM IST

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