The Sensex on Tuesday closed 43 points higher on the back of good buying in Tata Power, RIL and SBI, amid a firming European trend. The Bombay stock Exchange sensitive index resumed lower at 19,277.58 and hovered in a narrow 110-point range, before ending at 19,348.12 a gain of 42.80 or 0.22%. The broad-based NSE index Nifty edged up by 18.30 points, or 0.31% to 5,889.25. RIL gained 2.49% on back of media reports that the oil ministry is expected to approve the companys investment plans for the KG-D6 block, said Milan Bavishi, head research, Inventure Growth & Securities. Brokers said investors bought banking and financial shares like SBI, ICICI Bank and HDFC on hopes of rate cut by RBI soon. Tata Power was the best Sensex performer with a gain of 4% on heavy fund-buying, they added. In the 30-share Sensex, 11 stocks gained while 19, including TCS, M&M and ITC, ended in negative zone.
IDBI MF launches open-ended gilt fund
IDBI Mutual Fund on Tuesday announced the launch of IDBI Gilt Fund, an open-ended dedicated gilt scheme. The NFO will open for subscription on December 5 and close on December 17. The units will be available on a par (R10) during the NFO and at NAV-related prices thereafter. The scheme will re-open for continuous sale and repurchase from December 27. The investment objective of the scheme is to provide regular income along with opportunities for capital appreciation through investments in a diversified basket of Central government securities, state government securities, treasury bills and similar other instruments. The benchmark index for the fund is Crisil Gilt Index.
Sebi settles case against Sud for R7.24 lakh
Market regulator Sebi has settled the case against one Meenakshi Sud after she made a payment of about R7.24 lakh for allegedly not making the requisite disclosures regarding her shareholding in SR Industries. Sebi said that it is settling the matter against Sud, "without admitting or denying the guilt on the part of the noticee (Sud) to the finding of fact or conclusion of law. The regulator had observed that while trading in the scrip of SR Industries through trading member LSE Securities, Sud purchased nearly 7.52 lakh shares amounting to 5.98% stake of the company and sold 24,726 shares representing 0.19% shareholding. It was alleged that as on April 8, 2011, Sud had acquired about 1.51 lakh shares of the company due to which her stake in the company increased from 4.19% to 5.39%. According to the norms, as her shareholding crossed 5%, she was required to make disclosures to the company and to the concerned stock exchange. Sebi had alleged that Sud did not make the necessary disclosures.
BofA ML downgrades Hero MotoCorp
Bank of America Merrill Lynch has downgraded Hero MotoCorp to underperform from buy and cut its target price to R1,650 from R1,980. The bank said expected the companys domestic sales to remain muted and in single digits. This, it said, was primarily due to heavy dependence on 100cc bikes where better options were available with competitors, and likely structural shift to 150cc plus premium bikes where the "company's franchise is weak".
"We cut our export assumptions by 40%/year to factor in the six-month delay in its overseas foray," BofA ML said in a note.