Share market highlights: Sensex ends 23 points higher; Nifty above 11,500; Infosys, L&T top gainers

Shares of public sector lender Punjab National Bank jumped in trade on Wednesday afternoon, after reports that price accussed in Rs 11,000 crore scam Nirav Modi has been arrested in London. PNB shares gained nearly 4.4% to hit the day's high at Rs 94.15 on BSE. Nirav Modi, the prime accused in the multi-crore Punjab National Bank scam, has reportedly been arrested in London. Modi’s arrest has come a couple of days after a London court issued a warrant against him. He is likely to be produced in the court later in the day.

Embassy Office Parks' public issue, the country's first real estate investment trust (REIT) offering, has been subscribed 1.20 times so far on the final day of bidding Wednesday. The REIT issue received bids for 8,54,49,600 units against the total issue size of 7,12,56,400 units, according to NSE data till 1430 hrs. The offering got subscribed 47 per cent till Tuesday. The offer is expected to raise up to Rs 4,750 crore. According to a regulatory filing on Friday, Embassy Office Parks finalised allocation of 58,105,600 units to anchor investors at Rs 300 per unit, totalling Rs 1,743.16 crore. The issue is in a price band of Rs 299-300 per unit. (From PTI)

Modi government’s sustained push in the infrastructure sector has led to rise in bank credit growth, reversing the fall seen in the last 2 years. The total credit outstanding to the sector surged by more than Rs 95,000 crore or 10.8 per cent between April 2018 and January 2019 to Rs 9.86 lakh crore, Reserve Bank of India (RBI) data showed. While the credit stood at Rs 9.64 lakh crore as of March 2016, it fell to Rs 9.06 lakh crore by March 2017 and further plunged to Rs 8.90 lakh crore by March 2018.

Also read: Modi’s infra push boosts credit growth, reverses 2-year trend; here’s how much power, telecom receive

It has been a year since the launch of Nestle’s pink chocolates called Ruby in select global markets. Recently, news surfaced that the Ruby range of chocolates has added another product in its portfolio called Nuts and Cranberry. The ‘pink’ KitKat, as it is popular on social media, was launched in Japan along with 26 other global market including Canada. However, India hasn’t seen development on this turf. The question now is ‘Why not India?’; one of the world’s largest consumer market not on Nestle’s list for new releases.

Also read: Nestle expands pink KitKat range called Ruby; India not a part of new launch

Even as the Modi government is being criticised for over credibility of economic data and lacklustre employment generation, Finance Minister Arun Jaitley rebutted the claims saying India’s economic growth story has been best since independence in the last 5 years. “The 2014-19 consolidated growth rate at an average of the GDP at 7.3 percent is the highest 5-year growth rate that any government has achieved in india till today”, he said in a video posted on his Twitter account on Tuesday.

Also read: Arun Jaitley says India’s growth story under Modi best since independence; what he says on ‘where are jobs?’

India’s economy showed conflicting signs of a recovery in a climate clouded by uncertainty ahead of a general election beginning next month. Overall activity in February picked up slightly from the previous month, according to a slew of high-frequency indicators compiled by Bloomberg News to measure ‘animal spirits’ — a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action. However, subdued exports growth, a sharp drop in imports and waning output prices signaled the economy is performing below its potential.

Also read: Animal spirits pick up amid conflicting signs of recovery; what high-frequency indicators show

Amid intense competition from Reliance Jio, Vodafone Idea has announced a mega fund raising plan of Rs 25,000 crore via a rights issue, just days after rival Bharti Airtel had announced a mega Rs 32,000 crore war chest. Vodafone Idea's board has approved a rights issue at Rs 12.50 per share for an amount aggregating up to Rs 25,000 crore. The Board of Directors also fixed the record date for the purpose of determining the shareholders who will be eligible to apply for the Issue as 2nd April, 2019, the firm said in a statement on the exchanges.  The rights issue price at Rs 12.50 is at a steep 58% discount to the current market price of Rs 30.

Also read: Vodafone Idea mega rights issue: Buy shares at one-third of market price; record date, price, other details

Goldman Sachs has upgraded India back to ‘overweight’ from ‘marketweight’ as the Indian market has been witnessing a ‘catch-up’ rally amid expectation of a potentially stable government at the Centre. The foreign brokerage expects Nifty to hit 12,500 level in the next 12 months, up from its previous target of 11,700. Goldman Sachs had downgraded India to ‘marketweight’ in September, citing near-term risks related to macro factors and earnings, stretched valuations and election-related uncertainties. The latest target implies about 6.5% upside from the index’s record high of 11,738.50 points.

Also read: Goldman Sachs Rating: India upgraded to ‘overweight’

The stock markets-- Sensex and Nifty--are trading marginally higher on Wednesday morning, tracking weak global cues. The Sensex is up 73 points to 38,436.07, while the Nifty is trading near the 11,550-mark. Infosys shares are trading 2.6% higher at Rs 740, while L&T shares gained nearly 2% to Rs 1,380.50, to emerge among the biggest Sensex gainers. Shares of Anil Ambani-led Reliance Communications jumped by nearly 10% to hit the day's high at Rs 4.80, after the firm paid its dues to Ericsson per a Supreme Court order. A look at LIVE Sensex heatmap.

Even as infra major L&T makes significant advances in a bid to take control of Mindtree in what could be India’s first ever hostile takeover in the IT industry, other industries including cement, textile space and FMCG have witnessed hostile takeover attempts in the past. Notably, in a board meet scheduled today, Mindtree is mulling a share buyback program to stave off L&T efforts of a hostile takeover. We take a closer look at three hostile takeover attempts made in Indian corporate history.

Also read: Hostile takeovers in India: As Mindtree fights off L&T, a look at 3 major attempts in past

The Federal Reserve is expected to end its latest policy meeting Wednesday by refining its new overarching message that it plans to be “patient” about any further interest rate hikes. The Fed is all but sure to keep its key short-term rate in a range of 2.25 percent to 2.5 percent, still low by historical standards. And most analysts think the policymakers will scale back their projection of rate hikes this year from two to one or perhaps even none. The central bank’s new theme of patience and flexibility reflects its calming response since the start of the year to slow economic growth at home and abroad, a nervous stock market and persistently mild inflation. The Fed executed an abrupt pivot when it met in January by signaling that it no longer expected to raise rates anytime soon.

Also read: Fed may stay ‘patient’ and project fewer rate hikes

The rupee fell 19 paise to 69.15 against the US dollar in early trade Wednesday after crude price rose to a four-month high in global market amid increased demand for the American currency from importers. At the interbank forex market, the rupee opened lower at 69.11 and weakened further to 69.17 on increased demand from importers. However, it recovered partially to quote 15 paise down at 69.15 against the dollar.

Also read: Rupee falls 19 paise against US dollar in early trade

The stock markets-- Sensex and Nifty--opened  marginally higher on Wednesday morning, tracking weak global cues. The Sensex is up 30 points to 38,395.51, while the Nifty is trading above the 11,500-mark. Shares of Anil Ambani-led Reliance Communications jumped by nearly 10% to hit the day's high at Rs 9.80, after the firm paid its dues to Ericsson per a Supreme Court order. L&T shares are trading 0.7% higher at Rs 1,367.15, while Mindtree shares are trading 0.4% higher at Rs 947 on NSE.

Asian shares got off to a cautious start on Wednesday, holding close to six-month highs on hopes the U.S. Federal Reserve will stick to a dovish stance and unveil a plan to stop cutting bond holdings later this year. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked down 0.1 percent from a six-month high touched the previous day. Japan’s Nikkei was also down 0.1 percent. Wall Street shares were narrowly mixed on Tuesday, with the S&P 500 losing 0.01 percent and the Nasdaq adding 0.12 percent. The Federal Reserve, which is wrapping up its two-day policy review later on Wednesday, is expected to lower its policymakers’ rate projections from December, when their median expectations were for two rate hikes this year.

Also read: Asian shares hold near 6-month high on hopes of dovish US Federal Reserve

Finance Minister Arun Jaitley Tuesday regretted that non-BJP ruled states, including West Bengal and Madhya Pradesh, have not certified even a single farmer for transfer of the first instalment of Rs 2,000 under the PM-KISAN scheme. In the interim Budget 2019-20, the central government had announced the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme under which Rs 6,000 per year will be given in three instalments to 12 crore small and marginal farmers holding cultivable land up to two hectares.

Also read: Arun Jaitley flays non-BJP states for dragging feet on PM-KISAN payouts

With an aim to keep air fares in check, the government has advised airlines to increase the number of flights, news agency PTI reported citing an unidentified official. The aviation regulator DGCA is also reviewing surge in ticket prices on specific routes, the report added. “We have not issued any diktat to the airlines. We have just advised them that they should increase their capacity to keep airfares in check,” the senior DGCA official told the news agency.

Also read: Amid grounding of Jet Airways planes, govt reviews fares; advises airlines to increase flights

Even as Larsen and Toubro (L&T) on Tuesday tried to play down the nature of its move to take over technology firm Mindtree, promoters of the latter refused to budge from their stand, terming the move hostile, unprecedented, and unexplainable. They maintained that the culture of the two companies are not aligned. Addressing newspersons on Tuesday, L&T MD & CEO SN Subrahmanyan said what they are trying to do is with pyaar (love) and will continue to look at it as something they are doing from dil (heart).

Also read: Takeover tussle: L&T’s takeover bid fails to unsettle Mindtree

India is not the first tier country for post-Brexit free trade agreement (FTA) and a lot more work would be required before Britain can start negotiating such a deal with New Delhi, the UK government admitted on Tuesday. In his submission to the ongoing ‘Global Britain and India’ inquiry being conducted on post-Brexit India-UK ties by the House of Commons Foreign Affairs Committee (FAC), UK Foreign Office Minister Mark Field flagged some “high-value” trade disputes involving British companies in India as a warning sign on the road ahead.

Also read: India not first tier country for post-Brexit free trade agreement (FTA): UK minister

1. Do you want to be remembered as the first company to mount a hostile takeover in Indian IT industry?
2. Why can’t you build its own independent IT company? “L&T is 18 times the size of Mindtree. Why can’t you build an IT organisation of your own,” questioned Krishnakumar.
3. Why do you wish to destroy value as clients migrate in this hostile takeover battle?
4. What will you be left with is great minds at Mindtree leave? “This is people’s business, what will you be left with if employees leave,” asked Krishnakumar.
5. What message are you giving to honest startups in the country?

Also read: Mindtree’s 5 stinging questions to L&T in raging hostile takeover battle: Wish to be remembered for this?

Jet Airways : Cash-strapped Jet Airways grounded additional six aircrafts for non-payment of outstanding dues to its lessors.  

ONGC : ONGC informed exchanges on Tuesday that its board meeting will be held on Mar 23 to consider and decide on interim dividend.

Maruti Suzuki: India’s major car-maker Maruti Suzuki said the introduction of EECO with additional safety features would result in price increase varying from Rs 4,00- Rs 23,000.

Also read: Top stocks on radar: Jet Airways,ONGC, RCom, Maruti Suzuki to be in focus today; here is why