Indian stock markets are likely to open higher as the early indicator of NSE Nifty 50 was trading slightly up 0.07% at 9,856 points on the Singapore Stock Exchange.
These stocks will be in focus on Monday after major announcements:
The resignation of Vishal Sikka from the post of CEO on Friday impacted the stock in a much adverse manner which left the company losing about 22,500 crores in the market value in a single day. The losses were not restricted up to retail investors only as the co-founder of Infosys, N R Narayana Murthy has also lost about Rs 1,080.53 crores. The news has eroded Rs 31,411.03 of the company’s market value. But soon after the stock of Infosys recovered partially from the 52-week low prices, the notional losses were also trimmed and at the end of the day, the total loss of Murthy family stood at Rs 774.74 crores.
State-owned Indian Oil Corporation (IOC) will invest about Rs 52,000 crore in expanding Paradip refinery and setting up petrochemical complex after the Odisha government agreed to restore part of tax incentives, a top source said.
The state government has agreed to give Rs 700 crore per annum of interest-free loan for 15 years to make up for the
withdrawn incentive of 11-year deferment on payment of sales tax on Paradip refinery products sold in the state.
Infosys on Saturday announced a Rs 13,000 crore share buyback. According to media reports, Infosys would buy back up to 11,30,43,478 crore shares aggregating up to 4.92 per cent of the paid-up equity capital via tender route at a price of Rs 1,150, as per a BSE filing by Infosys.
Private sector lender ICICI Bank announced to reduce interest rate on savings accounts by 50 basis points to 3.5 per cent on deposits below Rs 50 lakh on Friday. The interest rate on savings bank accounts with deposits of Rs 50 lakh and above remains unchanged at 4 per cent, the bank said in a regulatory filing.
Shell Companies: Leading stock exchange BSE has yesterday said trading in Inter Globe Finance shares will resume from today after the Securities Appellate Tribunal (SAT) stayed curbs imposed on the company. The shares of the company will be moved out of GSM (graded surveillance measures) framework and will be available for trading with effect from August 21, the exchange said in a circular. It will be allowed to trade in a price band of five per cent.
In less than three weeks, three insurance firms, including HDFC Standard Life, have filed draft papers for IPOs that together are estimated to be worth nearly Rs 20,000 crore. With the IPO market bustling with activity, two government-owned entities — New India Assurance and General Insurance Corporation of India (GIC Re) — have joined the bandwagon this month.
Indian equities on Friday:
Vishal Sikka’s surprise resignation as Infosys CEO threw markets off-track on Friday as the Sensex careened off 271 points while the Nifty managed to end above 9,800. The fast-paced developments at India’s second-largest IT firm were the talking point throughout as the stock took a severe beating dragging down the markets. It ended up as the biggest loser on the 30-share Sensex map — sinking as much as 9.60 per cent to Rs 923.10, the lowest since May 2, 2017. Intra-day, it had even hit a 52-week low, but then recovered somewhat.
Indian Rupee closing on Friday:
The rupee largely shrugged off the high volatility in stocks and ended steady at 64.15 against the US dollar even as investors reacted to US political turmoil and terror attack in Spain. Forex market anxiety initially heightened after a terrorist attack in Barcelona and also rumour that economic advisor to President Trump, Gary Cohn, had resigned. Bearish dollar overseas trend along with abundant capital inflows into domestic equities largely supplemented strength to the local currency.
Foreign Portfolio Investments:
Foreign portfolio investors (FPI) have pulled out more than Rs 7,300 crore from the equity markets this month so far as they flee to safe haven assets amid geopolitical tensions and some domestic concerns. However, FPIs have invested about Rs 9,364 crore in debt markets during this period. According to the latest depository data, FPIs withdrew a net sum of Rs 7,344 crore (USD 1.14 billion) from stock markets during August 1-18.
Wall Street Stocks on Friday:
US stocks ended down slightly after another volatile session on Friday following the latest White House shake-up and increased focus on the outlook for the Trump administration’s agenda and post-election rally.The Dow Jones Industrial Average fell 76.22 points, or 0.35 percent, to close at 21,674.51, the S&P 500 had lost 4.46 points, or 0.18 percent, to 2,425.55 and the Nasdaq Composite had dropped 5.39 points, or 0.09 percent, to 6,216.53.