In first trading session of Samvat 2074, Sensex dives 194 pts

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Trading in Samvat 2074 got off to a rocky start, with the benchmark indices ending more than half a% lower and gauge for banking stocks dropping 1.25%. The BSE Sensex on Thursday fell 194.4 points, or 0.6% to close at 32,390, the Nifty 50 index fell 64.3, or 0.63% to close at 10,147.

 

The Indian markets were open for an hour-long Muhurat trading 2017 to mark the start of the new Hindu calendar year — Samvat 2074. This was worst Muhurat day performance since 2007, when markets had declined 0.8%.

 

The fall in the market was on account of a global sell-off which saw the Hong Kong market tumble the most this year and the European equities fall the most in two months. Market players said some domestic investors also resorted to profit-booking after a healthy 18% rally in the just-concluded Samvat 2073.

 

The markets have been weak in the past few sessions.

 

However, gains in certain index heavyweights, like Reliance Industries and HDFC Bank, prevented a big fall at the index level. Thursday’s fall was more pronounced as the banking stocks, which have a huge weightage in the indices, saw sharp selling,” said Ambareesh Baliga, a senior research analyst.

 

The BSE Bankex fell 1.3%, with ICICI Bank, Kotak Mahindra Bank and HDFC Bank declining 2%, 1.6% and one% respectively. These three stocks accounted for half of the fall in the benchmark Sensex.

 

Globally, Hong Kong’s Hang Seng Index fell 1.9%, while China market too ended weak. Most European markets too were down 0.6%, while the US market had opened 0.3% lower.

 

Experts said the political crisis in Spain, earnings disappointment in Europe and the Hong Kong sell-off impacted global investor sentiment. Oil prices fell for the first time in five days, while safe-haven assets such as Swiss franc, Japanese yen and gold rallied.

 

Thursday’s weakness notwithstanding, most market players are hopeful that the Indian markets will once again deliver double-digit returns over the next one year.

 

Next Samvat, the market returns could be even better. We expect double-digit earnings growth from this year onwards. The earnings momentum will sustain for the over the next three to five years, which will ensure huge upside in stock prices,” said Deven Choksey, MD, KR Choksey Investment Managers.

 

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Cuba marks 50th anniversary of Che Guevara’s death

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More than 60,000 people took to the streets gathered to commemorate the 50th death anniversary of Latin American revolutionary Ernesto Che Guevara.

 

Cuban President Raul Castro was present at a mass rally on Sunday at the Che Guevara Mausoleum in the town of Santa Clara, 300 km east of Havana, reports Xinhua news agency.

 

The rally capped a week of tributes to the guerrilla fighter that helped overthrow Cuba’s dictatorship and bring Fidel Castro to power, before he was ambushed and killed in Bolivia on October 9, 1967.

 

On the ground floor of the memorial, a cavern-like enclosure holds the remains of Guevara and 30 of his comrades fallen in Bolivia. An eternal flame, lit by then President Fidel Castro, pays homage to the fighters.

 

On Sunday, Raul Castro and other Communist Party leaders paid tribute to Guevara and his guerrilla partners inside the memorial.

Cuban First Vice President Miguel Diaz-Canel said:” Che is not dead, as his enemies wanted. His figure grows larger as time passes and younger generations recognize his revolutionary paradigm.”

 

Guevara is now a “universal symbol” and inspiration in the struggle for the liberation of different nations “oppressed by imperialism”, said Diaz-Canel.

 

“He had a very original way of facing life, and his comrades knew how to appreciate his simplicity, sincerity, naturalness, companionship, stoicism, reckless disposition to always face the most difficult situation.”

 

His altruism and conscious revolutionary spirit have become an ideal to follow, said Diaz-Canel.

 

In Bolivia, President Evo Morales, accompanied by his cabinet and other leading figures, completed a 2-km pilgrimage to La Higuera, where Guevara was killed by CIA-backed mercenaries.

Born in the Argentine city of Rosario in 1928 and trained as a doctor, Guevara joined Fidel Castro’s insurgency in 1956 to overthrow Cuban dictator Fulgencio Batista, and played a leading role in the rebel victory.

 

With Cuba under new leadership, he left the country to continue his struggle against oppression, first to Congo and then to Bolivia, where he was ambushed and killed by mercenaries.

 

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ICICI Lombard General Insurance pares losses, gains 4% against issue price

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ICICI Lombard General Insurance Company pared losses to gain as much as 4% after getting listed at Rs 650, 2% lower that its initial public offer (IPO) price of Rs 661 per share on the BSE. The stock listed at Rs 651 on the National Stock Exchange (NSE). Post listing, the stock hit a high of Rs 694 and a low of Rs 638 on BSE so far.

 

At 12:38 pm, it was trading 2.5% higher at Rs 677 against its issue price on BSE and NSE. A combined 6.44 million shares changed hands on the counter on both the exchanges.

 

The Rs 5,700-crore IPO of ICICI Lombard garnered three times subscription. Its 61.67-million share offering saw a total bid of 183.6 million shares.

 

Nearly 78% of the bids came from institutional investors, with the qualified institutional buyer (QIB) seeing eight times more demand than the shares on offer. The retail investor category saw 1.2 times subscription; high net worth individual (HNI) segment was subscribed only 83%, the stock exchanges data shows.

 

Many brokerages have recommended their clients to subscribe to the IPO with a long-term investment horizon.

 

ICICI Lombard is the largest non-life private sector insurer in India. It is a joint venture between ICICI Bank and Fairfax Financial Holdings Ltd of Canada. Backed by strong parentage, and under penetration of non-life insurance business in India, the company has been on a strong growth path with its Gross Direct Premium Income growing by 26.7% over FY2015-17,” Angel Broking said in IPO note.

 

At the upper price band of Rs 661 the issue is offered at 8x its FY2017 BV. While on the reported numbers it might appear to be fairly valued, we believe with strong potential to deliver high double digit growth for next multiple years, the issue looks decently priced, it added.

 

 

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Prataap Snacks IPO oversubscribed as on Day 2

 

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Prataap Snacks initial share sale offer was oversubscribed 1.08 times so far on the second day of bidding today.

 

The initial public offer IPO, which aims to raise Rs 482 crore, received bids for 39,14,325 shares against the total issue size of 36,27,518, data available with the NSE till 1445 hours showed. Prataap Snacks last week garnered a little over Rs 143 crore from anchor investors.

 

The company’s Rs 482-crore issue size includes Rs 200 crore through fresh equity issue and the rest from sale of 30,05,770 shares. The issue, with a price band of Rs 930-938 per share, will close for subscription tomorrow.

 

The company, which makes products under the ‘Yellow Diamond’ brand, aims to use the proceeds to expand capacity, marketing and brand building activities and retire the debt on its books.

 

Edelweiss, JM Financial and Spark Capital are managing the issue.

 

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Dixon Technologies makes stellar debut; lists at 54% premium on IPO price

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Dixon Technologies (India) has made a strong debut on the bourses by listing at Rs 2,725, a 54% premium on its initial public offering (IPO) price of Rs 1,766 per share on the National Stock Exchange (NSE) and BSE.

 

The stock hit a high of Rs 2,908 on BSE and Rs 2,899 on NSE after few seconds of its listing. At 10:04 AM; it was trading at Rs 2,837, a 61% over its IPO price. A combined 1.67 million shares changed hands on the counter on BSE and NSE so far.

 

Dixon Technologies, a consumer electronics and lighting product manufacturer for global and Indian brands, raised Rs 600 crore though IPO, which got tremendous response from the all category of investors. The issue was over-subscribed 118 times, received bids for 280 million shares against the total issue size of 2.38 million shares. The portion set aside for qualified institutional buyers (QIBs) was subscribed 135 times, non institutional investors 346 times and retail investors 11 times.

 

The IPO proceeds from the fresh issue will be utilized for repayment/pre-payment, in full or in part, of certain borrowings availed by the Company, setting up a unit for manufacturing of LED TVs at the Tirupati facility, enhancement of backward integration capabilities in the lighting products vertical at Dehradun I facility, upgradation of the information technology infrastructure and general corporate purposes.

The Company plans to increase its ODM sales as it controls entire manufacturing cycle of a product; thereby leading to higher margins as compared to OEM segment.

 

“Dixon Technologies would continue to report higher revenue and improvement in margins owing to its presence in high growth segments, experienced management and growing share of ODM segment. Despite the company operating on thin margins, it has registered return on capital of a whopping 33.3% in FY2017.

 

Further, it has been generating positive cash flow from operations over the last 5 years and negligible debt post IPO,” Angel Broking said in a note.

 

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Google honours Samuel Johnson with Doodle

 

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Grabbing a dictionary to know the meaning a word may now have become a thing of the past in the online world, but Google Doodle on Monday decided to honour Samuel Johnson, the man who compiled a mammoth dictionary of the English language 150 years before the Oxford English Dictionary appeared.

 

Son of a bookseller, Johnson published “A Dictionary of the English Language” in 1755 after nine years of work.

 

On what would have been his 308th birthday, Google Doodle paid homage to Johnson for being a “pioneer lexicographer who dedicated years to his craft.”

 

Johnson dictionary was described as “one of the greatest single achievements of scholarship,” and had a far-reaching effect on modern English.

 

It was described as the premier English dictionary until the publication of the Oxford English Dictionary 150 years later.Johnson was also a poet, essayist, critic, biographer and editor.

 

“Johnson’s dictionary was more than just a word list: his work provided a vast understanding of 18th century’s language and culture. His lasting contributions guaranteed him a place in literary history,” Google said.

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IndusInd Bank, Bharat Financial gain post signing pact for exploring merger

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Shares of IndusInd Bank and Bharat Financial Inclusion (BFIL) were trading 1% higher after the board of directors of respective companies signed agreement for exploring merger.

 

At 09:25 AM; BFIL was trading nearly 2% higher at Rs 951, after hitting high of Rs 956 in intra-day trade on BSE. IndusInd Bank gained 1.6% to Rs 1,723 in early morning deal, was up almost 1% at Rs 1,706. On comparison, the S&P BSE Sensex was up 0.52% at 31,853.

 

The board of directors of IndusInd Bank has on Monday, September 11, 2017 entered into a “confidentially, exclusively and standstill agreement with BFIL, IndusInd Bank said in a statement.

 

The management of IndusInd Bank has been authorized to explore strategic opportunities for the expansion of business of the bank and to assess the viability of strategic partnership, collaboration, or restructuring opportunities from time to time,” it added.

 

The exclusively agreement provides for a mutually agreed exclusively period for due diligence and discussions to evaluate a potential strategic combination, between the bank and BFIL by way of amalgamation through scheme of arrangement, or any other suitable structure.

“The Company has entered into an exclusivity agreement with IndusInd Bank for agreeing to have an exclusive discussion with IndusInd Bank about the proposed potential strategic combination by way of amalgamation through a scheme of arrangement, or any other suitable structure,” BFIL said in a statement.

 

The agreement primarily provides for confidentiality of information / discussion and finalisation of the terms and conditions relating to the proposed transaction with a view to entering into a definitive documentation after the necessary approvals, it added.

 

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