Equity benchmark indices made a positive start on Monday. Benchmark indices were in the green during early trades amid firm global market trends and fresh foreign fund inflow. The BSE Sensex climbed 563.09 points to quote at 60,522.94 points, while the NSE Nifty 50 advanced 161.55 points to quote at 17,948.35 points
On Friday, the headline gauges finished a choppy session with mild gains as the bulls remained in charge. There was buying interest in oil & gas, financial and metal scrips, however losses in IT and healthcare shares limited upside.
Market Movers
Some of the top gainers this week were Mazagon Dock Shipbuilders Ltd.(up 21.83%), Alembic Pharmaceuticals Ltd. (up 19.49%), Redington Ltd. (up 16.54%), Indian Overseas Bank (up 16.04%), and Adani Enterprises Ltd. (up 15.34%).
On the other hand, some of the top losers during the week were Ajanta Pharma Ltd. (down -6.79%), Aditya Birla Fashion and Retail Ltd. (down -6.60%), Indigo Paints Ltd. (down -5.34%), Fine Organic Industries Ltd. (down -4.31%), and Varun Beverages Ltd. (down -4.21%).
The Recap
In this week’s recap, we shall take a look at why the RBI imposed penalties on certain companies, a bulk deal in Axis bank, Airtel’s customer count, and more.
The RBI imposed penalties on financial entities
The apex bank on Monday said that it has imposed penalties on various financial entities for violating various norms.
This includes Vakrangee (₹ 1,76 crores), The Jammu and Kashmir State Co-operative Bank Ltd (₹ 30 lakhs), The Pratap Co-operative Ltd (₹ 6 lakh), LIC Housing Finance (₹ 5 lakh) and The Mysore Merchants Co-operative Bank (₹ 5 lakh), amongst others.
The RBI said that these penalties were based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
Bain Capital sold a 0.54% stake in Axis Bank for ₹ 1487 crore
US-based private equity major Bain Capital on Tuesday said that it has divested a 0.54% stake (1,66,80,000 shares) in Axis Bank for ₹ 1,487 crores through an open market transaction.
These shares were offloaded at an average price of ₹ 891.38 a piece, taking the transaction size to ₹ 1,486.82 crore. Bain Capital held a 4.24% stake in Axis Bank, as per data on BSE’s website.
Axis Bank’s board had approved a fundraising of ₹ 11,626 crore from a set of marquee investors, including entities affiliated with Bain Capital Private Equity and the bank’s promoter Life Insurance Corporation of India (LIC), in November 2017.
Airtel crossed 1 million customers on 5G network amid network build-up
Telecom major Bharti Airtel on Wednesday said it has surpassed 1 million customers on its 5G network within 30 days of its commercial launch even though the network is being built.
The telco had announced a phased roll-out of its 5G services in Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Siliguri, Nagpur and Varanasi.
“Our network is being built every day even as all 5G devices are now capable of working on the Airtel 5G Plus network barring a few exceptions which should also be done in the coming weeks,” said Randeep Sekhon, Chief Technology Officer of Bharti Airtel.
Coal India’s production was the highest in five months
Coal India Ltd, India’s largest coal producer said that production for the month of October increased 6.3 percent from last year and was the highest in the last five months.
At the same time, its offtake was also the highest in three months. However, on a year-on-year basis, offtake declined 5 percent in October.
The company has a production target of 700 million tonnes for the full financial year. During the April-September period, Coal India produced 299 million tonnes of coal, nearly meeting its 306 million tonnes target for the half year.
European Securities Markets Authority disqualifies 6 Indian Clearing Companies
The European Union Securities Markets Authority has disqualified six Indian clearing companies over failures to meet certain compliance provisions as per the European Market Infrastructure Regulation (EMIR), beginning from April 30, 2023.
The clearing houses that have been included in the list are the Clearing Corporation of India (CCIL), the Indian Clearing Corporation Ltd. (ICCL), the NSE Clearing Ltd. (NSCCL), the Multi Commodity Exchange Clearing (MCXCCL), the India International Clearing Corporation Ltd. (IICC) and the NSE IFSC Clearing Corporation Ltd. (NICCL).
No cooperation agreement has been reached between the European regulator and Indian regulators like the Reserve Bank of India, the Securities and Exchange Board of India and the International Financial Services Centers Authority (IFSCA), therefore these clearing houses have been disqualified.
Quarterly Results
Tata Steel
Homegrown steel major Tata Steel reported an 87% decline in its consolidated profit after tax (PAT) at ₹ 1514 crores in the September quarter (Q2FY23), as against ₹11,918 crore during the same quarter last year. However, its revenue from operations declined marginally, by 0.8% to ₹59,877.52 crore in September 2022, against ₹60,387.13 crore in September 2021.
Housing Development Finance Corporation
The financial services company reported net Sales at ₹ 43,916.98 crore in September 2022 up 13.8% from ₹ 38,590.84 crore in September 2021. Its quarterly net profit increased by 24.64% to ₹ 6553.48 crores from ₹5258.01 crores in September 2021.
Amara Raja Batteries
The EV Battery manufacturer’s net sales rose 19.27% to ₹ 2700.47 crores in September 2022 from ₹ 2264.15 crores in September 2021. Further, its quarterly net profit came in at ₹ 201.22 crore in September 2022 up 39.43% from ₹ 144.32 crore in September 2021.
Written by Simran Bafna
