Report by- Sabyasachi Bhattacharya
Government looks to replace the entire IL&FS board-
The Indian government has moved to the NCLT, seeking to replace the existing IL&FS board with a new 10-members board led by Uday Kotak. The move comes as no surprise as IL&FS failed to show a realistic picture of the company and tried to mask the abnormalities in its balance sheet. The main reason why the government is intervening in this matter is because IL&FS case will have bearing on the entire economy. The government has also ordered a thorough investigation into the company’s affairs through the SFIO. This step was taken because of the uncovering of a severe mismatch in IL&FS’s liabilities and a severe liquidity crunch in the firm. IL&FS is facing a debt crisis, having defaulted on payments several times in the past few weeks. This has impacted both the stock and the bonds market, increasing volatility and tension among the investors. An order regarding the takeover is expected later today. At 4:30 our sources got the news that NCLT has approved government’s takeover of IL&FS board.
Source-Moneycontrol , Purple Trades Research Department
A good start to the October series as bulls show dominating signs-
Chart source- Upstox
Indian Markets stumbled in the beginning of the day as Nifty went down by 22 points at the beginning of the trading session. But as the day progressed the bulls took in charge and not only made sure that Nifty breaches the 11,000 mark but also sustain it. Nifty closed 77.85 points higher at 11008, while Sensex surged 299 points to finally close the day at 36526.14. Bank Nifty also had an amazing outing, it closed 247.15 points above at 25367.00. This activity by the indices was a positive sign for October after the entire September series was dominated by the bears. If we take a look at our European counter parts, even they had a mixed day with the market with DAX up by 0.1% and CAC down by 0.01%. The bullish behavior in today’s market can be due to the following reasons-
- DII has shown positive intent in the Indian markets as their flow increased by 3256 crores.
- PSU banks like SBIN climbed up the ladder and many public sector banks like YES bank, AXIS bank, HDFC, had bullish runs today due to which Bank Nifty moved by almost 1%.
- Government’s support to NBFCs can also fuel up the bulls to take over as this is a major positive for the sector. Many NBFCs are facing liquidity issues for now.
Source- Purple Trades Research Department
YES Bank reveals unaudited Q2 numbers:
After its share prices witnessed a steep fall, Yes Bank in an attempt to soothe investor nerves, has revealed part of its unaudited financial results for the first quarter ended September 2018. In a filing with the stock exchanges, the mid-sized lender said it registered 41 percent year-on-year rise in deposits at Rs 2.23 lakh crore in Q2FY19, while loans and advances growth was at 61.5 percent to Rs 2.40 lakh crore. In deposits, the CASA (current and savings account) ratio grew 28.2 percent to 33.8 percent of total deposits. Yes Bank’s gross non-performing assets (NPAs) stood at 1.35 percent of gross advances, compared with 1.82 percent in the corresponding quarter last year. Yes Bank has a liquidity coverage ratio (LCR) of about 101 percent as on September 30, 2018, as against the minimum regulatory requirement of 90 percent.The bank’s average daily liquidity coverage ratio (LCR) for Q2 FY19 was about 100 percent. The bank’s liquidity position will further benefit from the recent RBI measures (announced on September 27, 2018) to ease systemic liquidity which will take effect on October 01, 2018.The financial results are subject to approval by the Audit Committee of the Board, Board of Directors and review by the statutory auditors of the Bank. Yes Bank shares have plunged 46 percent in September as investors turned cautious after the RBI cut short its chief executive officer and managing director (CEO and MD) Rana Kapoor’s tenure, which will now end on January 31, 2019. With this, the RBI has turned down Yes Bank’s proposal to give a three-year extension to Kapoor.
Source-MoneyControl, Purple Trades Research Department
Top sectors that moved the market today- Data source- Moneycontrol
Top Gainers for today- source- Moneycontrol
Top losers for today- Data source- Moneycontrol