Sensex closes 52.66 points down as banks retreat
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Mumbai: Indian stocks dropped, with the benchmark gauge paring a weekly gain, as some investors sold lenders and energy companies after recent advances.
Reliance Industries Ltd., which has a 7% weighting on the S&P BSE Sensex, was the biggest drag on the gauge. The stock dropped 2.2%, the most in a week. Axis Bank Ltd. was the top loser on the Sensex, while a gauge of lenders capped its best week since July after Essar Group’s $13 billion deal with a group involving Russia’s Rosneft PJSC improved prospects for loan recoveries at local banks.
Reliance, owner of the world’s largest refining complex, was among the top losers on the Sensex on Friday despite reporting second-quarter profit that beat estimates. Investors are concerned the increased spending on the company’s new telecommunications venture will be a drag on cash flows from its main oil-refining and chemicals businesses.
Reliance Jio Infocomm Ltd. spent Rs13,700 crore ($2 billion) to buy airwaves in the latest round of auctions this month to bolster the 4G phone services it started in September. The company added 16 million users in its first month of operations and said on Thursday it may consider extending the free services after December.
“Investors are concerned about the competitive intensity and margin pressure from the telecom business,” said G. Chokkalingam, managing director at Mumbai-based Equinomics Research & Advisory Pvt. “The earnings are good and the refining business is doing fine.”
The Sensex trades at 16.4 times projected 12-month earnings, compared with a five-year average of 14.3 times. The MSCI Emerging Markets Index is valued at a multiple of 12.5.
Foreign investors sold $44 million of local shares on Oct. 19, paring this year’s inflows to $7.4 billion.
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Maharashtra Deputy Chief Minister and NCP head Ajit Pawar on Monday said discussions were underway among the Mahayuti partners to finalise a formula for the new government formation in the state.
Speaking to reporters at Karad in Satara district, Pawar also acknowledged the contribution of the government's Ladki Bahin scheme, which provides financial assistance to women, in the Mahayuti's victory in the just-concluded state assembly polls.
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Police have lodged seven FIRs in connection with the violence over a court-ordered survey of a Mughal-era mosque here, naming Samajwadi Party MP Zia-ur-Rehman Barq and local SP MLA Iqbal Mehmood's son Sohail Iqbal as accused, officials said on Monday.
The district administration has already imposed prohibitory orders and barred the entry of outsiders into Sambhal till November 30.
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A day after violence rocked Uttar Pradesh's Sambhal, Leader of Opposition in the Lok Sabha Rahul Gandhi on Monday said the BJP's use of power to create a rift between Hindus and Muslims was neither in the interest of the state nor the country.
He also urged the Supreme Court to intervene in the matter as soon as possible.
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The Karnataka High Court has dismissed a petition seeking quashing of an FIR against two individuals accused of defrauding e-commerce giant Amazon of over Rs 69 lakh.
Justice M Nagaprasanna described the case as an example of modern age crime.
The petitioners, Sourish Bose and Deepanvita Ghosh, had sought to have the FIR and a magistrate court's order taking cognisance of the case set aside.
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India’s Adani Group said it has enough cash flows to service debt obligations, as it sought to reassure creditors after a US bribery probe against founder Gautam Adani triggered a selloff in the conglomerate’s stocks and bonds.
Cash balances exceed long-term debt repayments for the next 28 months, while portfolio level cash balances were at $6.33 billion, the port-to-power conglomerate said in a report for the first six months of the financial year ending March 2025 released Monday.
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