12:45pm
JSPL under pressure
Shares of Jindal Steel & Power
tanked 6 percent as investors are growing nervous after CBI registered a fresh
case of alleged cheating and corruption against the company, in connection with
its probe into coal blocks allocation probe.
A CBI spokesperson, on Sunday, said
that it is the 36th FIR in connection with its probe into the coal blocks scam.
The fresh case has been registered
against Jindal Stripes Limited, Jindal Steel and Power Limited and unknown
public officials for alleged criminal conspiracy and cheating under the Indian
Penal Code and provisions of the Prevention of Corruption Act, CBI sources
said.
12:30pm
PE deal with unlisted company
US private equity firm Warburg Pincus has
agreed to buy a significant minority stake in Kalyan Jewellers for about USD
200 million, five sources with knowledge of the transaction told Reuters on
Monday.
The Indian jewellery manufacturer
and retailer will use the capital for expansion purposes, said the sources, who
declined to be named as they were not authorised to speak to the media.
"The deal is almost done and we
may probably announce it later the day," said one of the sources, who is
directly involved in the stake sale.
Kalyan and Warburg Pincus did not
have immediate comments when asked by Reuters.
12:15pm
Nikkei rallies
Japan's Nikkei share average surged 4 percent
to post its biggest daily rise since June 2013 as investors took heart from
upbeat US data and the weaker yen lifted exporters such as Toyota Motor Corp
and Honda Motor Co.
Also underpinning the market was
news that Japan's USD 1.2 trillion public pension fund will likely raise its
allocation to domestic stocks to about 25 percent from 12 percent at present.
People familiar with the process
told Reuters that a weighting in the middle of the 20-30 percent range is the
main proposal for an impending reallocation of the fund's asset mix and is
under final discussion within GPIF.
The Nikkei share average added
578.72 points to end at 15,111.23, recouping most of the losses posted last
week.
Upbeat US consumer confidence
supported investor sentiment and lifted risk appetites. The Thomson
Reuters/University of Michigan index of consumer sentiment unexpectedly rose in
early October to its highest level since July 2007. Separate data showed groundbreaking
on new homes rose more than expected last month.
Traders said investors scooped up
recently-battered stocks after the Nikkei tumbled 5 percent last week on
concerns about faltering global growth and the stronger yen, reports Reuters.
12:00pm
Market Check
Bulls kept tight control over bears on the
first day of Diwali week. Key indices gained more than 1 percent each buoyed by
the election verdict in Haryana and Maharashtra and the much awaited reform
moves by the government. Midcaps too gained in-line with frontliners with the
BSE Midcap and Smallcap indices rallied 1.4 percent each.
The Sensex climbed 367.57 points to
26476.10 and the Nifty surged 111.65 points to 7891.35. About 1686 shares have
advanced, 771 shares declined, and 108 shares are unchanged on the Bombay Stock
Exchange. Madhu Kela of Reliance Capital is bullish on equities with a
three-year horizon and expects the asset class to outperform others like real
estate, fixed income and gold in that time frame.
Post state elections, the government raised
gas prices to USD 5.6 per mmbtu and deregulated diesel linking it to global
market prices. Key beneficiaries, oil marketing companies stocks and ONGC
gained anywhere between 4-6 percent in trade. Meanwhile, the BJP is still
undecided over going with the Shiv Sena in Maharashtra despite Uddhav
Thackeray's overtures, say BJP sources.
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