Share markets in India are presently trading on a positive note, tracking gains in Asian peers after they climbed to a seven-month peak.
The BSE Sensex is trading up by 161 points, up 0.4%, at 38,700 levels.
Meanwhile, the NSE Nifty is trading up by 47 points.
ONGC and UltraTech Cement are among the top gainers today.
The BSE Mid Cap index is trading up by 0.9%.
The BSE Small Cap index is trading up by 1.1%.
On the sectoral front, gains are largely seen in the realty sector and telecom sector.
The rupee is trading at 74.74 against the US$.
Gold prices are trading up by 0.5% at Rs 53,282 per 10 grams.
Speaking of the current stock market scenario, note that after over 2 years of lag, the smallcap index is beating Sensex in the post-COVID rebound.
We have seen a sharp up move in the index post the market crash. The smallcap index has risen way higher since its March lows.
Now, what lies ahead? Will the rally continue? Or will there be a correction?
Moving on to stock-specific news, Yes Bank is among the top buzzing stocks today.
Shares of Yes Bank gained 5% today after the private lender said it has repaid Rs 350 billion to the RBI out of the total special liquidity facility (SLF) of Rs 500 billion drawn for interim support.
In its FY20 annual report, the bank's Chairman Sunil Mehta said, "in addition to the Special Liquidity Facility (SLF) of Rs 50,000 crore extended by RBI, the bank has since then received strong customer liquidity inflows. I am pleased to report that the bank has, as of date repaid Rs 35,000 crore of SLF and the balance will be repaid within the timelines set by RBI," he said.
The bank recently raised equity funding of Rs 150 billion through a follow-on public offering (FPO).
In another development, Yes Bank divested more than 8% stake worth over Rs 750 million in CG Power and Industrial through open market transactions.
The lender offloaded 51.8 million shares through the BSE and the NSE, as per bulk deal data. At the end of June 2020, Yes Bank had more than 80 million shares or a 12.8% stake in CG Power.
Moving on to news from the realty sector, shares of Indiabulls Real Estate (IBREL) soared as much as 7% in early trade today after Bengaluru-based realty firm Embassy Group signed an agreement to merge its various housing and commercial projects with the Indiabulls Group company and take control of the merged entity.
Jitendra Virwani along with other promoter entities of NAM Estates (Embassy Promoters) will become the new promoters of IBREL upon completion of the merger and Sameer Gehlaut, along with existing IBREL promoter group entities, shall initiate the process of reclassification as required.
Embassy Group already has around 14% stake in the Mumbai-based company and the same will increase to 45% after the merger of assets of these two companies.
In June last year, the promoters of IBREL sold 14% stake through open market transactions to Embassy Group for Rs 9.5 billion, as part of their strategy to focus on financial services and exit from realty business.
"The merger shall provide diversification to IBREL shareholders towards a balanced mix of residential and commercial development with visibility on near term liquidity through sold receivables in excess of Rs 4,220 crores for the combined entity," the company said in a statement.
Under the terms of the agreement, Indiabulls Real Estate shares are being valued at Rs 92.5 per share, a 25.7% premium to yesterday's closing price.
NAM shareholders will get 6.619 shares of IBREL for every 10 shares of NAM, whilst NAM Opco shareholders will get 5.406 shares of IBREL for every 10 shares in NAM Opco.
The merger is expected to be completed by the second quarter of 2021-22, the company said in its regulatory filing.
Indiabulls Real Estate had in January this year announced its proposal of the merger of certain ongoing, completed and planned residential and commercial projects of Embassy Property Developments with itself.
Shares of Indiabulls Real Estate have pared all the early gains and are presently trading 2.8% lower.
Other Indiabulls group stocks have also pared gains. Indiabulls Ventures, which gained 3% in early trade is trading down by 0.2%, while Indiabulls Housing Finance is trading down by 0.5%. Indiabulls Integrated Services is down 1%.
How this merger pans out remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space.
Comments
Log in or sign up to join the conversation.