At 10.59 am, Reliance Capital shares were trading 4.27 per cent up at Rs 416.25. The scrip opened at Rs 401.50 and had touched a high and low of Rs 416.80 and Rs 398.25, respectively, in trade so far.

Reliance Capital shares gained over 4 per cent in the morning trade on Wednesday after the company informed BSE that Reliance Capital Asset Management (RCAM), a part of Anil Ambani led Reliance Capital, has signed definitive agreements to acquire Goldman Sachs Asset Management’s (GSAM) onshore business in India for Rs 243 crore in an all-cash deal.

At 10.59 am, Reliance Capital shares were trading 4.27 per cent up at Rs 416.25. The scrip opened at Rs 401.50 and had touched a high and low of Rs 416.80 and Rs 398.25, respectively, in trade so far. Sensex was up 111.71 points at 27,418.54.

In a BSE filing, the company said, “Reliance Capital Asset Management will pay a total sum of Rs 243 crore (US$ 37.5 million) in cash to acquire all onshore mutual fund schemes, including exchange traded funds, of GSAM India.”
The Boards of both the companies – Reliance Capital Asset Management and Goldman Sachs Asset Management India – have already approved the transaction. The transaction is expected to be completed by the end of this financial year, subject to necessary regulatory approvals.

In the past one year, the share price of Reliance Capital slid 10.89 per cent to Rs 399.20 on October 15. Sensex gained 3.3 per cent during the same period.

For the quarter ended June 2015, Reliance Capital posted consolidated net profit of Rs 201 crore, up 22.56 per cent, against Rs 164 crore in the same quarter a year ago.

Larsen and Toubro shares were trading in negative terrain on Wednesday after rating agency Credit Suisse downgraded its stocks to “neutral” from “outperform” on order inflow worries.(Reuters)

Larsen and Toubro (L&T) shares were trading in negative terrain on Wednesday after Credit Suisse downgraded its stocks to “neutral” from “outperform” on order inflow worries.

At 9.39 am, the shares were trading 0.24 per cent down at Rs 1569.10. The BSE Sensex was up 67.53 points at 27,374.36 during the same time.

The rating agency further said that slowdown in Middle East, real estate, metals, hydrocarbons and unsustainable orders from power and roads sector may weigh.

Analysts led by Lokesh Garg estimated a 10 per cent cut in order inflows in the ongoing financial year (FY16), with implications on execution, pricing, working capital and valuations.

The rating agency further cut FY17 and FY18 EPS by 4 per cent and 3 per cent respectively.

L&T is expected to declare its second quarter results on October 30. Its stock has 35 “buy”, 9 “hold” and 2 “sell” ratings, according to Eikon data.

With inputs from Reuters

The BSE Sensex and NSE Nifty opened on a flat note on Wednesday tracking mixed Asian cues. Sensex opened 5.52 points up at 27,312.35. Nifty opened 3.3 points down at 8,258.35. (Retuers)

10.02 am: The benchmark BSE Sensex rose by over 75 points in early trade on fresh buying in IT, oil and gas, banking and auto stocks after better than expected earnings by bluechips. Nifty was up 19.55 points at 8,281.55.

9.46 am: Falling for the second straight day, the rupee depreciated further by 7 paise to 65.12 against the dollar in early trade on Wednesday on increased demand for the US currency from importers. The BSE IT index was up 0.43 per cent at 11,284.47. Sensex was up 67.78 points at 27,375.

9.23 am: Sensex was up 60.92 points 27,368. Nifty was up 13.40 points at 8,275.05. In the 30-share index, Bharti Airtel and Hero MotoCorp were up 2.81 per cent and 1.34 per cent at Rs 371.85 and Rs 2,640.

The BSE Sensex and NSE Nifty opened on a flat note on Wednesday tracking mixed Asian cues. Sensex opened 5.52 points up at 27,312.35. Nifty opened 3.3 points down at 8,258.35.

On Tuesday post market hours, Hero MotoCorp reported a 1.1 per cent growth in net profit at Rs 772.06 crore during the July-September quarter. Biotechnology major Biocon posted an over two-fold jump in its consolidated net profit at Rs 306 crore for the second quarter ended September 30, 2015.

Companies such as Cairn India, JSW Steel, Blue Dart, Wipro, NIIT, Noida Toll, Tata Coffee, HDFC Bank may announce their September quarter earnings on Wednesday.

The Bombay Stock Exchange and the National Stock Exchange will remain closed on Thursday on account of ‘Dussehra’.

Sensex and Nifty declined 58.09 points and 13.40 points at 27,306.83 and 8,261.65, respectively, on Tuesday.

The FIIs as per Tuesday’s data were net buyers in equity and in debt segments both, according to data released by the NSDL. In equity segment, the gross buying was of Rs 3,468.06 crore against gross sell of Rs 2,404.93 crore. Thus, FIIs stood as net buyers of Rs 1,063.13 crore in equities. In the debt segment, the gross purchase was of Rs 436.05 crore with gross sales of Rs 393.49 crore. Thus, FIIs stood as net buyers of Rs 42.56 crore in debt.

Global Markets

New York: US stocks ended slightly lower on Tuesday as a decline in healthcare and biotech stocks offset gains in United Technologies and Verizon.

London: Britain’s top share index steadied at the close on Tuesday, with a rally in InterContinental Hotels Group and Whitbread following their well-received results underpinning the market.

Tokyo: Japanese stocks rose in cautious trading on Wednesday morning after investors shrugged off weak trade data that stoked expectations for the possibility of further stimulus when the Bank of Japan meets for its monetary policy review on Oct. 30.

(With inputs from agencies)

The BSE Sensex and NSE Nifty are likely to open flat with negative bias on Wednesday tracking SGX Nifty and global markets. (Express photo)

The BSE Sensex and NSE Nifty are likely to open flat with negative bias on Wednesday tracking SGX Nifty and global markets.

At 8.21 am, SGX Nifty was down 3 points, or 0.04 per cent, at 8,253.50.

Asian shares eked out cautious gains on Wednesday as concerns about corporate earnings hobbled Wall Street while investors counted down to the European Central Bank’s policy meeting later in the week.

Wall Street offered little in the way of a lead with the Dow ending Tuesday 0.1 per cent lower, while the S&P 500 eased 0.14 per cent and the Nasdaq 0.5 per cent.

Back home, Sensex and Nifty declined 58.09 points and 13.40 points at 27,306.83 and 8,261.65 on Tuesday.

The FIIs as per Tuesday’s data were net buyers in equity and in debt segments both, according to data released by the NSDL. In equity segment, the gross buying was of Rs 3,468.06 crore against gross sell of Rs 2,404.93 crore. Thus, FIIs stood as net buyers of Rs 1,063.13 crore in equities. In the debt segment, the gross purchase was of Rs 436.05 crore with gross sales of Rs 393.49 crore. Thus, FIIs stood as net buyers of Rs 42.56 crore in debt.

HeroMotoCorp stocks will be in focus today as the company on Tuesday reported a 1.1% growth in net profit at Rs 772.06 crore during the July-September quarter.

Companies such as Cairn India, JSW Steel, Blue Dart, Wipro, NIIT, Noida Toll, Tata Coffee, HDFC Bank may announce their September quarter earnings on Wednesday.

While we see no immediate pressure on SKS Microfinance’s (SKSM) loan growth or margins, we remain cautious on the stock as the issuance of small bank licenses is likely to change the face of the microfinance industry. (Photo: PTI)

While we see no immediate pressure on SKS Microfinance’s(SKSM) loan growth or margins, we remain cautious on the stock as the issuance of small bank licenses is likely to change the face of the microfinance industry. In addition, NBFCs with 100% exposure to microfinance cannot grow at 30-40% perennially when competition is expected to intensify – making a strong case for a de-rating of SKSM, which is currently trading at 3.2x FY17E P/B.

During Q2FY16, the business momentum was strong with disbursements/AUM growth of 57%/80% YoY in Q2FY16. NIMs on AUM improved to 11.7% from 10.4% in Q1FY16, led by a sharp 140bps QoQ improvement in portfolio yield. A large part of AUM growth was driven by long-term loans which grew 33% QoQ, and their mix in the AUM increased to 27.7% from 23.7% in Q1FY1 .

In the unsecured lending business, slippages are concentrated as well as chunky in any given year over a cycle and the loss given default (LGD) is ~100%. We believe it is prudent for all microfinance cos to create floating provisions which can help them counter volatility in earnings.