Anil Ambani’s Reliance Group, held its annual general meeting on Tuesday. The meeting was marked by a slew of announcements and statements that pushed shares of group companies upwards. For one, Anil Ambani said Reliance Capital was in advanced talks with partner Nippon Life to sell equity stake in R-Cap’s asset management business. He also said R-Cap was looking to establish a Reliance Bank once it got RBI approval. Finally, Ambani said Reliance Communications was likely to close a deal to sell its debt-ridden towers business soon. Anil Ambani’s statements brought cheer to investors. Shares of Reliance Capital climbed 1.32% on the BSE to Rs 394.50 on a day overall markets also made gains. And R-Com gained 3.78 % to finish at Rs 80.95
Infrastructure firm GMR has bagged the country’s single biggest highway project to date. GMR was awarded a contract to turn a 555 km long stretch of road into a six-lane highway. The highway will go from Kishangarh and Udaipur in Rajasthan to Ahmedabad highway. The cost of this project has been pegged at Rs6,014 crores. The highway in question is part of the Delhi-Mumbai stretch of the golden quadrilateral. It’s also the first so-called brownfield mega highway project in India. News of the contract didn’t help shares of GMR Infra. They drifted into the red, ending 0.37% lower on the BSE at Rs 26.80
India’s stubborn inflation could result in more interest rate hikes. Addressing a students’ meet in New York, RBI governor D Subbarrao said, inflation remained unacceptably high and that it could warrant more monetary tightening. RBI has raised rates 12 times since March of last year.
Despite the economic pressures, competition in India’s small car segment is growing, The latest entry is Honda Siel’s Brio. Priced between 3.95 to 5.1 lakhs, it’s touted to competition to small car offerings from Maruti and Ford. Interestingly, Brio will not have a diesel variant. The company currently sources 80% of the Brio’s parts locally and aims to increase local sourcing to 90%.
Indian markets have broken a four-day losing streak to surge upwards. Short covering by investors and goods new on a European bailout helped together spread cheer on Dalal Street . The Sensex surged up to 16524.03 and the Nifty ended at 4971.25 up by 135. 85 points.
Some of the big movers included realty and IT stocks. The country’s largest real estate player DLF was up by 8.46% to 217.35. Infosys was up by 3.46% to 2446.00 & TCS closed at 1038.25 points.