Benchmark indices provisionally settled with modest gains as Government promulgating the ordinance to amend the Insolvency and Bankruptcy Code, 2016 perked up sentiment. The barometer index, the S&P BSE Sensex, advanced 91.16 points or 0.27% at 33,679.24, as per the provisional closing data. The Nifty 50 index rose 40.95 points or 0.4% at 10,389.70, as per the provisional closing data. Gains in global stocks also underpinned sentiment. Stocks gained for the seventh straight day.
The market opened higher and held firm in the positive terrain throughout the session.
The S&P BSE Mid-Cap index provisionally rose 0.58%. The S&P BSE Small-Cap index provisionally advanced 0.45%. Both these indices outperformed the Sensex.
The breadth indicating the health of the market, was positive. On BSE, 1,510 shares rose and 1,225 shares declined. A total of 159 shares were unchanged.
IT stocks gained for the second straight day. Tech Mahindra (up 1.03%), HCL Technologies (up 0.39%), Infosys (up 1.77%), TCS (up 0.53%) and Wipro (up 0.2%) gained.
Reliance Industries gained 0.47% after Reliance Marcellus II, LLC, a subsidiary of Reliance Holding USA, Inc., and Reliance Industries announced the closing of recently announced sale of its interest in certain upstream assets; which were operated by Carrizo Oil & Gas, Inc to BKV Chelsea LLC, an affiliate of Kalnin Ventures.
In a transaction announced on 6 October 2017, Reliance agreed to sell its entire working interest in these upstream assets to BKV Chelsea for purchase consideration of $126 million with an effective date of 1 April 2017. Additionally, under the definitive documents, a contingent amount of up to $11.25 million may be paid to Reliance between years 2018 to 2020 based on certain gas price thresholds being achieved.
The transaction closed on 21 November 2017 and Reliance received the purchase consideration subject to usual and customary purchase price adjustments. The announcement was made before market hours today, 24 November 2017.
Mahindra & Mahindra rose 0.93% after the company announced that it will collaborate with Uber, the global transportation technology company, to explore the deployment of electric vehicles (EVs) on the Uber platform in several cities across India.
To begin with, the companies will deploy hundreds of electric vehicles in Delhi and Hyderabad. M&M's electric vehicles on the Uber platform will include the e20Plus hatch and the eVerito sedan. As part of this collaboration, both the companies will also explore deployment of M&M electric vehicles to other cities. The announcement was made during market hours today, 24 November 2017.
Indian Hume Pipe Company rose 1.52% after the company said it has secured work order of Rs 119.73 crore from Public Health & Municipal Engineering department, Government of Andhra Pradesh - Ongole Municipal Corporation, for providing water supply improvements scheme under AMRUT project. The project is to be completed within 15 months. The announcement was made during trading hours today, 24 November 2017.
On the macro front, the Government of India promulgated yesterday, 23 November 2017, the ordinance to amend the Insolvency and Bankruptcy Code, 2016. Earlier, the President of India had given his assent to the ordinance to amend the code.
The ordinance aims at putting in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the code. The amendments aim to keep-out such persons who have wilfully defaulted, are associated with non-performing assets, or are habitually non-compliant and, therefore, are likely to be a risk to successful resolution of insolvency of a company.
In addition to putting in place restrictions for such persons to participate in the resolution or liquidation process, the amendment also provides such check by specifying that the committee of creditors ensure the viability and feasibility of the resolution plan before approving it. The Insolvency and Bankruptcy Board of India (IBBI) has also been given additional powers.
Meanwhile, the Cabinet Committee on Parliamentary Affairs today, 24 November 2017, recommended that the winter session of Parliament be held from 15 December 2017 to 5 January 2018. The ensuing winter session will have a total of 14 sittings over a duration of 22 days. Three bills are to be taken up in the coming winter session to replace three ordinances namely, the Goods & Services Tax (Compensation to States) Ordinance, 2017 (promulgated on 2 September 17); Insolvency & Bankruptcy Code (Amendment) Ordinance, 2017 and Indian Forest (Amendment) Ordinance, 2017.
Overseas, European stocks edged higher in sluggish post-Thanksgiving trading. Asian stocks gained after volatile trade. Japanese manufacturing activity expanded at the fastest pace in more than three years in November, a preliminary survey showed. The Markit/Nikkei Japan Manufacturing flash Purchasing Managers Index (PMI) rose to 53.8 in November on a seasonally adjusted basis from a final reading of 52.8 in October.
US stock markets remained closed yesterday, 23 November 2017 on account of Thanksgiving holiday.
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