After rising 127 points in early trade, the Sensex on Wednesday pared most of the gains to close the day marginally up by 33 points at 18,610.77 as investors booked profits at higher levels, amid positive global cues. Enthused by a higher closing in US markets on Tuesday, the BSE benchmark index rose to day's high of 18,705.19 in the morning. HCL Technologies' 78%rise in profit for the second quarter also aided the market sentiment. Brokers said the initial rise was also on the back of finance minister P Chidambaram's comments on Tuesday that Parliament must pass laws necessary for promoting economic reforms and boosting growth. The Sensex, however, failed to sustain the momentum as RIL and TCS came under selling pressure. Analysts said RIL closed 0.97% down as weak earnings remained a worry, while TCS scrip lost 1.05% ahead of its results on Friday. After falling to day's low of 18,535.37 on fresh selling by foreign investors, the 30-share Sensex managed to end with a slender gain of 33.07 points at 18,610.77. ITC, HDFC, L&T, ICICI Bank, Infosys and Tata Motors were among the gainers, while RIL, TCS, HDFC Bank, SBI and GAIL ended with losses. The broad-based NSE Nifty ended with a gain of 12.25 points or 0.22% at 5,660.25. Asian shares ended narrowly mixed with upward bias after US industrial production beat estimates and Spain retained its investment-grade credit rating from Moody's, traders said.
Govt stake in IFCI increases to 55.5%
Government stake in Industrial Finance Corporation of India (IFCI) has increased to 55.5% after the company allotted 40 crore shares following conversion of bonds. The committee of directors at the meeting held on Wednesday has allotted 40 crore equity shares of the company at the face value of R10 each to the government, IFCI said in a filing on the BSE. Earlier this month, the board of IFCI had decided to convert government bonds worth R923 crore into equity. Following the conversion, the direct shareholding of the government in IFCI will increase to 55.57% making it a government company. In August, the Cabinet approved conversion of R923 crore of debentures held by it in IFCI into equity. After conversion of the optionally convertible debentures (OCDs), the government holding including the stake of banks and financial institutions have gone up to 68.31%. Since 2001, the government had been giving funds to IFCI to tide over the financial problems. It initially gave R400 crore in the form of 20-year OCDs. Later in 2002-03, as part of the financial restructuring package of R5,220 crore, the government gave IFCI R523 crore as loan in the form of OCDs. However, the government stopped releasing funds after IFCI started making profits. The government equity came down to below the threshold limit of 51% in 2005. Shares of IFCI settled at R30 apiece on the BSE, up 0.33% from the previous close.
Unamia raises funds from Angel Prime
Bangalore-based online kidswear Unamia has raised R6.4 crore in seed round of funding from Blume Ventures and Angel Prime. The company targets the R38,000-crore kidswear market by creating a range of kidswear and building deep engagement with customers. Demand for kidswear is growing by 20% annually. Unamia aims at high-quality products made more affordable through online selling. By consolidating inventory, avoiding rental overheads and investing in the core product, these companies aim to give consumers superior products for everyday prices.