The BSE Sensex and NSE Nifty50 index opened on a positive note on Tuesday after India’s economy grew by 7.4 per cent in July-September (Photo: Reuters)

9.22 am: In the 50-share index, Asian Paints and Bharti Airtel were trading 2.23 per cent and 2.15 per cent down in the early trade. On the other hand, Power Grid and IndusInd Bank were up 2.02 per cent and 1.69 per cent, respectively. 

9.17 am: Sensex was up 73.52 points 26,219.19. Nifty was up 32.55 points at 7,967. State-owned trading firm MMTC said it will invest about Rs 6,000 crore to double the capacity of Neelachal Ispat Nigam (NINL) in the next four years. Shares of MMTC were trading 0.33 per cent up at Rs 45.55 in the early trade.

9.15 am: The BSE Sensex and NSE Nifty50 index opened on a positive note on Tuesday after India’s economy grew by 7.4 per cent in July-September, outpacing China to become the fastest growing major economy. Sensex opened 55.60 points up at 26,201.27, while Nifty index opened 22.90 points up at 7,958.15.

The signs of recovery in the GDP, from a growth rate of 7 per cent in the previous quarter ended June 30, follows a series of rate cuts announced by the RBI in recent months and bolstered the case for the central bank to hold onto its rate at its scheduled monetary policy review meeting on Tuesday.

Other Asian market were also trading higher, shrugging off a Chinese factory survey that did little to ease persistent concerns about cooling growth in the economy, while a private survey showed a hint of stabilisation.

Back home, equity markets showed a volatile trade on Monday, though the major bourses managed to keep their head in green for most part of the day and closed on a flat note. The BSE Sensex ended 17.47 points up at 26145.67, while Nifty50 index closed 7.45 points down at 7935.25.

The FIIs as per Monday’s data were net sellers in equity and in debt segments both, according to data released by the NSDL.

In equity segment, the gross buying was of Rs 2,820.14 crore against gross sell of Rs 3,278.53 crore. Thus, FIIs stood as net sellers of Rs 458.39 crore in equities.

In the debt segment, the gross purchase was of Rs 355.83 crore with gross sales of Rs 900.62 crore. Thus, FIIs stood as net sellers of Rs 544.79 crore in debt.

(With inputs from agencies)

The BSE Sensex and NSE Nifty50 index are likely to open on a positive note on Tuesday tracking SGX Nifty, GDP data and movement of Asian markets. (Photo: Reuters)

The BSE Sensex and NSE Nifty50 index are likely to open on a positive note on Tuesday tracking SGX Nifty, GDP data and movement of Asian markets. India’s economic growth accelerated to 7.4 per cent in the July-September quarter, overtaking China as the world’s fastest growing major economy, on pick up in manufacturing, mining and services sectors.

The signs of recovery in the GDP, from a growth rate of 7 per cent in the previous quarter ended June 30, follows a series of rate cuts announced by the RBI in recent months and bolstered the case for the central bank to hold onto its rate at its scheduled monetary policy review meeting on Tuesday.

At 8.23 am (IST), SGX Nifty was up 13 points, or 0.16 per cent, at 7,992.50.

Asian shares were higher on Tuesday, shrugging off a Chinese factory survey that did little to ease persistent concerns about cooling growth in the economy, while a private survey showed a hint of stabilisation. Hang Seng, Nikkei and Shanghai were up 1.40 per cent, 1.01 per cent and 0.09 per cent, respectively.

Back home, equity markets showed a volatile trade on Monday, though the major bourses managed to keep their head in green for most part of the day and closed on a flat note. The BSE Sensex ended 17.47 points up at 26145.67, while Nifty50 index closed 7.45 points down at 7935.25.

(With inputs from agencies)

Clearing the hurdles for the listing of Indian stock exchanges, capital market regulator Securities and Exchange Board of India (Sebi) on Monday said that a listed stock exchange will have to maintain 51% public shareholding, while ownership of trading members, associates and agents in the entity do not exceed 49%. The representations were part of the Sebi’s board meeting held in Mumbai.

The regulator also said that stock exchanges would have to ensure that each shareholder must meet the ‘fit and proper’ status. Each shareholder will be required to make declaration to this effect at the time of making application during its listing and public issue. Sebi will also monitor the 2%, 5% and 15% shareholding limits through the depository mechanism, Sebi added.

“Stock exchanges shall be classified as ‘infrastructure company’ under SEBI (ICDR) Regulations, 2009. In order to effectively implement the provisions of listing of its associates on listed stock exchanges, the definition of associates is being appropriately amended,” Sebi noted in its press release following the board meeting.

In a 10-point agenda, Sebi also proposed new norms for issuance and listing of green bonds. The board also relaxed norms for delisting of small companies and separately asked listed companies to give exit options to dissenting shareholders upon any change in original public offer objectives.

The move follows a provision in the Companies Act, 2013 in this regard, wherein it was said that such an exit option needs to be given as per the regulations to be specified by Sebi.

Accordingly, Sebi has now decided to put in place a suitable regulatory framework.

As part of efforts to protect the interests of investors and prevent them from falling prey to dubious investment schemes, the new Companies Law provides for various provisions. One of the provisions is with regard to altering the purpose of raising money from investors once such funds have been garnered by a company.

Under the Companies Act, 2013, changes in memorandum of a firm – as mentioned prior to raising funds – can be amended only by way of a special resolution passed by the concerned shareholders.

A company, which has raised money from public through prospectus and still has any unutilised amount out of the money so raised, cannot change its objectives for which it raised the funds through prospectus unless a special resolution is passed.

Besides, dissenting shareholders or those who are not satisfied with the changes, would be provided an exit option. (With PTI inputs)

Maintain ‘hold’ on Godrej Propoerties with a target price of Rs 310 per share. We calculate a 12-month forward fair value by applying a 25% premium to our NAV estimate of R282. We then discount it back by one year to reflect the current fair value target price. Our target price implies a downside to the current price, therefore we maintain a ‘hold’ rating.

The company launched the first residential phase of its mixed use flagship project spread over 34 acre in Vikroli. The first phase launch is comprised 374 apartments comprising saleable area of 0.5 msf spread over 6.7 acre. As per the company presentation, it also intends to launch the second phase during the current fiscal year.

We were impressed with the overall specifications. Godrej brand commands a lot of respect and the project could see impressive sales figures at its launch. However, we felt the pricing is little steep and would find few takers as the project progresses. Also, GPL may find it hard to capture price appreciations for its investors at a rate higher than the cost of capital.

We believe this is the most critical project for GPL as it sets the base for launching the huge 400-plus acre of land parcel over the years and inappropriate pricing could slow the pace of sales for the rest of the projects in the location.

Bullish on banking stocks, Mutual Fund managers have raised their allocation to the sector to all time-high of over Rs 85,376 crore in October. (Reuters)

 Bullish on banking stocks, Mutual Fund managers have raised their allocation to the sector to all time-high of over Rs 85,376 crore in October.

In comparison, equity fund managers’ deployment in banking stocks stood at Rs 62,719 crore in October 2014.

Industry experts said that fund managers raised their allocation to banking stocks, especially private banks which have consistently beaten their public sector peers in performance and have lower non-performing assets (NPAs).

Banking stocks have high weightage in the BSE index, Sensex.

As per the data available with the Securities and Exchange Board of India (Sebi), overall deployment of equity funds in bank stocks stood at Rs 85,376 crore in October compared with Rs 84,360 crore in the previous month.

The previous high was in July, when allocation of funds in the banking shares was at Rs 85,329 crore.

Besides, MF’s overall exposure to banking stocks was at 20.67 per cent against 20.87 per cent in the preceding month.

The bankex index inched up 0.47 per cent in the period under review, while BSE’s benchmark Sensex witnessed a growth of 1.92 per cent.

Besides, IT was the second-most preferred sector with fund mangers after banks with an exposure of Rs 41,817 crore, followed by pharma (Rs 34,443 crore), auto (Rs 29,985 crore) and finance (Rs 23,944 crore).

MFs are investment vehicles made up of a pool of funds collected from a large number of investors and channeled into stocks, bonds and money market instruments.