Stock market highlights: The stock markets–Sensex and Nifty– recovered in the afternoon trade on Tuesday, and closed higher for the 2nd straight day in the week. The Sensex ended 268.40 points higher at 38,363.47, while the Nifty closed 70.20 points higher at 11,532.40. ITC shares closed 2.6% higher at Rs 299.90, to emerge as the biggest Sensex gainer, while HCL Tech shares closed 2.8% higher at Rs 1,040.15.
. The Sensex is up about 60 points to 38,158.63, while the Nifty is trading near the 11,450-mark. Shares of Anil Ambani-led Reliance Communications surged 10% on Tuesday afternoon to Rs 4.40, after a statement confirmed that RCom has made a payment of Rs 550 crore and interest thereon to Ericsson, in compliance of the judgement of the Supreme Court. Anil Ambani faced a possible jail term of three months, if his RCom failed to pay Ericsson by today, per a Supreme Court order. L&T shares are trading 1.4% lower at Rs 1,364.65, after the infra giant picked up VG Siddhartha’s stake in Mindtree and inched forward to what could be India’s first hostile takeover.
Asian shares treaded water on Tuesday ahead of a US Federal Reserve policy meeting, hovering near six-month highs, while sterling was choppy as the speaker of Britain’s parliament banned another vote on same Brexit deal. MSCI’s broadest index of Asia-Pacific shares outside Japan was virtually flat, just a hair away from the highest level since Sept. 21, Reuters reported. We bring to you Live updates.
Highlights
The stock markets--Sensex and Nifty-- recovered in the afternoon trade on Tuesday, and closed higher for the 2nd straight day in the week. The Sensex ended 268.40 points higher at 38,363.47, while the Nifty closed 70.20 points higher at 11,532.40. ITC shares closed 2.6% higher at Rs 299.90, to emerge as the biggest Sensex gainer, while HCL Tech shares closed 2.8% higher at Rs 1,040.15.
Aviation Minister Suresh Prabhu on Tuesday directed his ministry’s secretary to hold an emergency meeting on the debt-ridden Jet Airways massively cancelling flights after grounding of a large part of its fleet. The minister’s direction came in the wake of the airliner drastically reducing its operations due to liquidity crunch. “Directed Secretary, @MOCA GOI to hold an emergency meeting on the grounding of flights by Jet Airways, advance bookings, cancellations, refunds and safety issues, if any,” Prabhu said in a tweet. “Asked him (civil aviation secretary) to get a report on Jet compliance issues immediately from DGCA,” he added.
Also read: Suresh Prabhu asks for emergency meet on Jet Airways as grounding crisis deepens
Mukesh Ambani-led Reliance Industries became the first Indian firm to hit the $125 billion mark imn market capitlisation on Tuesday. RIL shares are trading 1.75% higher at Rs 1,371.20 on BSE. The shares zoomed to a fresh all-time high of Rs 1,375 in the afternoon trade. The current market capitalisation of the firm stands at Rs 8.71 lakh crore.
Etihad is strapped in too tightly at Jet Airways. The ailing Indian carrier has stopped flights to Abu Dhabi, the hub of its Middle Eastern shareholder. Even with almost half its fleet grounded for failing to pay aircraft lessors, it looks like an attempt to strong-arm support for a restructuring. It’s a stark reminder that the Gulf emirate has more to lose than just its equity. Investors know the risk of buying any stock is a fall to zero. For Etihad, however, that goes beyond the 24 per cent stake in Jet it bought in 2013 for about $600 million, a strategic purchase which included control of the frequent-flyer programme.
Also read: How Jet Airways is a drag on Etihad’s wings
Responding to the letter by 108 economists raising concerns over the validity of statistical data, Finance Minister Arun Jaitley said that the majority of them are ‘compulsive contrarians’. It comes a day after 131 Chartered Accountants came forth to counter the allegations over political interference influencing data quality. “A few days ago 108 so called economists issued a statement questioning its validity. I analysed the credentials of all 108 economists and found out that 70% of those are compulsive contrarians, critics of the government who have signed multiple memorandums against this government in the last five years," he said in a video posted on his Twitter account.
After opening marginally higher, the Sensex and Nifty extended gains in the afternoon trade on Tuesday. The Sensex is up 172 points to 38,266.84, while the Nifty is trading above the 11,500-mark. ITC shares are trading 2.6% higher at Rs 299.70, while NTPC stock is trading 3.7% higher at Rs 137.05 on NSE. L&T shares are trading 2.1% lower at Rs 1,350.25, on Mindtree acquisition buzz. A look at LIVE Sensex heatmap.
Even as the corporate battle heats up between L&T and Mindtree after infra major picked up 21% stake in the IT company, L&T CEO S N Subrahmanyan said that his bulldozers help in building the ‘nation,’ in an apparent reply to Subroto Bagchi’s tweet which said that people with bulldozers are here to cut the tree. “An imminent threat of hostile takeover of Mindtree has made me resign from the Government to be able to go, save the company,” Subroto Bagchi tweeted on Sunday, adding that he must protect the Tree from people who have arrived with bulldozers and saw chains to cut it down so that in its place, they can build a shopping mall.
Also read: My bulldozers and cranes build the nation: L&T CEO's retort to Mindtree promoter's 'tree' jibe
Indian shares were largely unchanged on Tuesday, as investors creamed off profits after six sessions of gains. Stocks had run up last week on expectations that the current coalition government led by Prime Minister Narendra Modi would return to power after the general election starting next month. “There is still some optimism in the market. There has been a run-up in the past few sessions and profit booking is inevitable,” said Saurabh Jain, AVP Research, SMC global securities. “This profit booking will last for a short time. Broadly, things are looking good, we are seeing some confidence return.”
Also read: Indian stocks steady; ONGC, Bharti Infratel top gainers
The fifth tranche of CPSE ETF has opened today for subscription by anchor investors, through which the government is looking to raise at least Rs 3,500 crore to meet its disinvestment target for current fiscal. Non-anchor investors can participate in CPSE ETF from March 20 to March 22, according to Reliance Nippon Life Asset Management Limited, which is managing this ETF. In the current financial year, this is the second CPSE ETF tranche and overall the fifth tranche since it was launched in 2014.
Also read: CPSE ETF’s 5th tranche opens today for anchor investors, govt looks to raise Rs 3,500 crore
ndia’s Ola is raising $300 million from Hyundai Motor Group, giving the ride-hailing startup more capital to compete for drivers and customers against Uber Technologies Inc. just as the U.S. rival prepares for an initial public offering. The deal values Ola at about $6 billion, said a person familiar with the matter, asking not to be named because the figures are private. The Bangalore-based company, which had been valued at $4.3 billion according to CB Insights, will continue to raise funds and has term sheets from other investors, the person said.
Also read: Ola gets $300 million investment from Hyundai, Kia; raises competition for Uber
Shares of Anil Ambani-led Reliance Communications Ltd (RCom) jumped on Tuesday morning and were locked in the upper circuit on Tuesday after his elder brother Mukesh Ambani helped pay off debt owed to Sweden's Ericsson. RCom share price gained 10% to Rs 4.40 on NSE. India's richest man Mukesh Ambani, who controls oil-to-telecoms powerhouse Reliance Industries, appears to have offered support to ensure Anil Ambani paid off total dues of 5.5 billion rupees ($80 million) to Ericsson. The nature of the backing or how it was delivered was unclear, but in a statement Anil Ambani thanked his billionaire brother "for standing by me during these trying times, and demonstrating the importance of staying true to our strong family values by extending this timely support".
The rupee edged 2 paise higher to 68.51 against the US dollar in early trade Tuesday ahead of the Federal Reserve's policy meet. Besides the greenback's weakness against some currencies overseas, increased selling of the American currency by exporters as well as banks supported the rupee, forex dealers said.
A higher opening in the domestic equity market influenced the currency's movement, they added. On Monday, the domestic unit had surged by 57 paise to close at an over seven-month high of 68.53 against the US dollar, also marking a sixth straight session of gains, driven by sustained foreign fund inflows and narrowing trade deficit. (PTI reported)
The Sensex and Nifty opened marginally higher on Tuesday, tracking global cues. The Sensex is up about 60 points to 38,158.63, while the Nifty is trading near the 11,450-mark. Shares of Anil Ambani-led Reliance Communications surged 10% on Tuesday afternoon to Rs 4.40, after a statement confirmed that RCom has made a payment of Rs 550 crore and interest thereon to Ericsson, in compliance of the judgement of the Supreme Court. Anil Ambani faced a possible jail term of three months, if his RCom failed to pay Ericsson by today, per a Supreme Court order. A look at LIVE Sensex heatmap.
Gold prices rose for a third consecutive session on Tuesday as the dollar weakened on expectations that the U.S. Federal Reserve will maintain a dovish tone at its monetary policy meeting this week. Spot gold was up 0.1 percent at $1,304.91 per ounce as of 0058 GMT. U.S. gold futures rose about 0.3 percent to $1,304.70 an ounce. Spot palladium dipped 0.1 percent to $1,582 an ounce, after registering its highest on record at $1,585.59 in the previous session on sustained supply tightness.
Asian shares treaded water on Tuesday ahead of a U.S. Federal Reserve policy meeting, hovering near six-month highs, while sterling was choppy as the speaker of Britain’s parliament banned another vote on same Brexit deal. bMSCI’s broadest index of Asia-Pacific shares outside Japan was virtually flat, just a hair away from the highest level since Sept. 21.
Also read: Asian shares steady ahead of Fed meeting; May’s Brexit deal in chaos
Gold prices rose for a third consecutive session on Tuesday as the dollar weakened on expectations that the U.S. Federal Reserve will maintain a dovish tone at its monetary policy meeting this week. Spot gold was up 0.1 percent at $1,304.91 per ounce as of 0058 GMT. U.S. gold futures rose about 0.3 percent to $1,304.70 an ounce. Spot palladium dipped 0.1 percent to $1,582 an ounce, after registering its highest on record at $1,585.59 in the previous session on sustained supply tightness.
Also read: Gold prices edge up on tepid dollar ahead of Fed meeting
Oil prices hovered just below 2019 highs early on Tuesday, supported by ongoing supply cuts led by producer club OPEC. U.S. sanctions against oil producers Iran and Venezuela are also boosting crude prices, although traders say the market looks capped by rising American output. U.S. West Texas Intermediate (WTI) futures were down four cents at $59.05 per barrel at 0026 GMT, close to the 2019 high of $59.23 reached the previous day.
Also read: Oil prices hover near 2019 highs as OPEC supply cuts support
Asia’s biggest and India’s maiden REIT issue — Embassy Office Parks REIT IPO — saw cautious investor demand on day 1, with the issue getting subscribed 20% at the end of the bidding on day 1. The Rs 4,750 crore issue saw bids for 1.39 crore shares as against the issue size of 7.15 crore shares, implying a demand of about 20% of the reserved portion.
Also read: Embassy REIT IPO subscribed 20% on day 1 as investors cautious on India’s first REIT issue
Rupee surged by 57 paise on Monday to close the day at 7-month high of 68.53 versus the US dollar. Marking the sixth session of gains in a row, the domestic currency posted a strong performance since its open, on account of continuous foreign fund inflows and shrinking trade deficit. Heavy buying in domestic stocks and weak dollar helped rupee to maintain strength against other key global currencies.
Also read: Rupee closes at 7-month high of 68.53 vs US dollar; key reasons
Billionaire Anil Ambani, who just averted a major personal crisis by managing to scramble enough money to pay off Rs 550 crore dues to Ericsson in the nick of time, today thanked elder brother Mukesh Ambani — India’s richest man — and his wife Nita Ambani for standing by him in the tough times. Anil Ambani faced a possible jail term of three months, if his Reliance Communications failed to pay Ericsson by tomorrow, ie, 19 March 2019, per a Supreme Court order. Anil Ambani’s statement suggests a possible bailout by elder brother Mukesh Ambani.
Also read: Anil Ambani thanks elder brother Mukesh Ambani and Nita for timely help after clearing Ericsson dues