Sensex Rises 100 Points, Nifty Near 7,850
BSE Sensex and Nifty were higher on Tuesday, tracking gains in other global markets. The Sensex gained over 100 points while Nifty edged up close to 7,850 levels.
The gains were broad-based today barring some mild selling pressure in IT and consumer durable stocks.
FMCG, capital goods, metal and banking stocks were among the outperformers. Vedanta, Cairn India, SBI, Sun Pharma, Cipla were up 0.80 per cent to 1.5 per cent to be among the biggest gainers in the Nifty pack.
Commodity stocks were in focus as Brent crude prices continued to gain after the Paris attacks raised geopolitical tensions.
ICICI Bank was up 1.5 per cent after India’s biggest private sector lender by assets said that it will sell a 6 per cent stake in its life insurance joint venture in two separate deals worth a combined Rs 1,950 crore ($296 million) to billionaire Azim Premji and Singapore state investor Temasek.
Sugar stocks extended their rally today after seeing sharp gains in the previous session amid a global rally in raw sugar prices.
The rupee will be in focus as the US dollar moved to near seven-month highs. In recent trade, the rupee was at 65.92/dollar against its Monday’s close of 66/dollar.
Most Asian markets were sharply higher today, following an overnight rally on Wall Street. Markets in China and Japan were up nearly 1.5 per cent.
Sensex
New Delhi: Reliance Infra will sell 49 percent equity stake in its integrated power business in Mumbai and adjoining areas to Canada’s Public Sector Pension Investment Board (PSP Investments).
The company, a part of Anil Ambani led Reliance Group, will utilise proceeds of stake sale to reduce debt, it said in a regulatory filing to BSE.
“Reliance Infrastructure Ltd (RInfra) announced the signing of a nonbinding term sheet with Public Sector Pension Investment Board, in relation to acquisition by PSP Investments of a 49 percent equity stake in its integrated power generation, transmission and distribution business in the city of Mumbai and adjoining areas,” it added.
The specified business is to be carved out on a going concern basis into a separate SPV, in which RInfra will own the controlling 51 percent stake, and PSP Investments will own 49 percent.
RInfra’s Mumbai Power business (known as Reliance Energy) distributes power to nearly 3 million residential, industrial and commercial consumers in the suburbs of Mumbai, covering an area of 400 sq km, and catering to a peak demand of over 1,800 MW, with revenues of Rs 7,700 crore in 2014-15.
The parties have entered into an exclusivity agreement valid till March 31, 2016.
The proposed transaction is subject to due diligence, definitive documentation, applicable regulatory and other approvals and certain other conditions. Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage, the company said.
PSP Investments is one of the largest pension fund managers in Canada with Canadian Dollar 112 billion of net assets under management as of March 31, 2015.
RInfra is engaged in developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors within the infrastructure space such as power, roads, metro rail, cement and defence.
It is also a leading utility company having presence across the value chain of power businesses including generation, transmission, distribution and power trading.
RInfra through its SPVs has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai, eleven road projects with total length of 1,000 kms and cement plants of total capacity of 5.6 million tonnes in Madhya Pradesh, Maharashtra and Uttar Pradesh.
The company also provides Engineering, Procurement and Construction (EPC) services for developing power and road projects. It has recently entered into the defence sector.
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Source:Ndtv
