The market closed with another 200 points gains Friday on top of previous day's 407 points rally, led by further short covering. The Sensex rallied 206.50 points or 1.13 percent to close at 18519.44, which gained more than 600 points in two days after falling nearly 1500 points in previous four sessions. The Nifty rose 63.30 points or 1.17 percent to finish at 5471.75, helped by oil & gas, private banks, capital goods and metals stocks.For the week, the Sensex lost 0.4 percent and Nifty fell 0.65 percent. The Indian currency managed to pullback 135 paise in trade on Friday to end the day at 63.20 against the US dollar. Most of the dealers believe this was due to RBI intervention in the last 30 minutes of trade. For the week the rupee has depreciated 2.5 percent against the dollar but it would have been much worse if not for a sharp recovery. Meanwhile, the Federal Reserve is in focus yet again, with officials meeting for an annual symposium in Jackson Hole. Fed chairman Ben Bernanke will not be present at Jackson Hole symposium. However traders will still listen for any indication of when the central bank might start tapering its asset purchases. So, here are the stocks that will keep traders busy on Monday.
BHEL, Larsen and Toubro An Empowered Group of Ministers (EGOM) headed by Defence Minister A K Antony cleared the proposal of tweaking the standard bidding documents for implementing the new Case-II thermal power plants including the 4,000 MW ultra mega power projects (UMPPs). According to CNBC-TV18, the EGoM has also approved mandatory sourcing of power equipment from domestic manufacturers. It says power equipment will have to be manufactured in India and decision applies to UMPPs and all case-II projects. However, the cabinet may ratify decision and set timelines. The upcoming UMPPs include Orissa and Tamil Nadu. BHEL and L&T are likely to be major beneficiary of the move.
Hexaware Baring private equity Asia will hike its stake in IT firm Hexaware to beyond 50 percent by buying a 41.8 percent stake in the company from the promoter entities. Baring will buy founder-chairman Atul Nishar's 27.7 percent stake and the 14.1 percent stake held by GA Global Investments, a subsidiary of General Atlantic. The total deal size stands at over Rs 1,600 crore. General Atlantic exits Hexaware with atleast a gain of 1.5x the investment it had made in the company.
ITC Diversified conglomerate ITC’s board will consider demerger of the non-engineering business of subsidiary Wimco to be merged with itself. "A meeting of the board of directors of the company will be held on August 28 to consider a proposal for demerger of the non-engineering business comprising safety matches business and agri ( forestry) business of Wimco into the company," ITC said in a filing to the BSE. ITC along with Russell Credit, a wholly owned unit, holds 98.21 per cent of Wimco's share capital, it added.
Mahindra Lifespace Developers Reserve Bank of India has increased foreign investment limit in Mahindra Lifespace Developers (erstwhile Mahindra Gesco Developers) to 49 percent from 30 percent. The holdings of FIIs in the company has reached 29.23 percent of the paid up equity capital, according to filing on August 19. Promoter Mahindra & Mahindra holds 51.04 percent stake in the company as of June 2013.
IDFC RBI says foreign institutional investors (FII) investment limit in IDFC has been cut to 54 percent from 74 percent earlier. Foreign investors can buy only 54 percent of IDFC’s shares, down from 74 percent earlier through primary market and stock exchanges, RBI said in a press release. Such investors held 52.19% shares in IDFC as of June 2013, according to data on BSE.
NSEL Crisis-hit National Spot Exchange is still in news as investors stuck with it met Economic Affairs Secretary Arvind Mayaram and sought that investigative agencies should take stringent action against those members who are not making payments. The meeting comes at a time when the government is considering to bring commodity market regulator Forward Markets Commission (FMC) under Finance Ministry. There are around 13,000 investors including 7,000 small investors whose Rs 5,500 crore are stuck in the NSEL.