Weekly Wrap: Nifty Rejig, Vodafone Idea Stock’s 33% Rally, And More
A man reads a newspaper outside Chhatrapati Shivaji Terminal in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Weekly Wrap: Nifty Rejig, Vodafone Idea Stock’s 33% Rally, And More

The National Stock Exchange reconstituted the benchmark Nifty Index, taking the number of cement makers to three. Vodafone Idea Ltd.’s stock rallied amid pending adjusted gross revenue dues. Reliance Industries Ltd.’s shares were in focus after it consolidated its media and cable business and Bloomberg reported that its refinery stake sale talks with Saudi Aramco gained steam.

Here’s what happened in the business world and across the globe between Feb. 17 and Feb. 20.

Nifty Rejig: Yes Bank Out, Shree Cement In

Shree Cement Ltd. will replace private lender Yes Bank Ltd. in the benchmark Nifty 50 Index from March 27.

The lender's stock has tumbled over 80 percent in the last one year, making it the worst performer on the index. Yes Bank dropped out of the Sensex, too, in December.

Shree Cement has gained over 50 percent in the last 12 months. The Kolkata-based firm will join UltraTech Cement Ltd. and Grasim Industries Ltd. in the Nifty 50, taking the number of the cement makers in the index to three.

Also read: How Shree Cement Made Its Way Into Nifty 50 Replacing Yes Bank

Vodafone Idea: Stock Rallies As Repayment Begins, Birla Meets Government Officials

Shares of Vodafone Idea advanced 33 percent this week even as the firm’s Chairman Kumar Mangalam Birla met Telecom Secretary Anshu Jain amid talks that the government may encash telecom firm’s bank guarantees over default in adjusted gross revenue dues.

The meeting between the Aditya Birla Group chairman and the telecom secretary lasted for over an hour. “Cannot say anything at the moment,” Birla said after coming out of the meeting. On Thursday, Vodafone Idea paid Rs 1,000 crore taking its total payment of dues since Monday to Rs 3,500 crore.

Bharti Airtel Ltd. Chairman Sunil Bharti Mittal, whose firm has so far paid Rs 10,000 crore, has said that the company will clear its dues before the March 17 deadline set by the Supreme Court.

Telecom firms have already paid about Rs 16,000 crore in AGR dues, a government official told reporters in Delhi, on Thursday.

RIL Consolidates Media Business Business; Aramco Deal Talks Gather Steam

Reliance Industries Ltd.’s talks to sell a minority stake in its oil-to-chemical division to Saudi Aramco have been gathering pace in the recent weeks.

Aramco officials and bankers on the deal have been working at Reliance’s offices in Mumbai for due diligence this month, people familiar with the matter told Bloomberg News, on the condition of anonymity.

Earlier in the week, the Mukesh Ambani-run company announced that it is consolidating its media and distribution subsidiaries under Network18 Media & Investments Ltd.

Shareholders will get:

  • 92 shares of Network18 for every 100 shares held in TV18 Broadcast Ltd.
  • 78 shares of Network18 for every 100 shares held in Hathway Cable & Datacom Ltd.
  • 191 shares of Network18 for every 100 shares of Den Networks Ltd.

How Indian Markets Fared This Week

Indian indices snapped a two-week gaining streak to end lower. Sensex and the Nifty 50 Index declined 0.21 percent and 0.27 percent, respectively, to end at 41,170.12 and 12,080.85.

The focus will shift to global and domestic macro developments as the earnings season draws to an end, Sanjeev Zarbade, vice president (PCG Research) at Kotak Securities, told BloombergQuint. “While the interest level is high for small- and mid-cap stocks, investors are still trying to assess the impact of coronavirus on procurements from China,” he said in an emailed statement.

Six of the 11 sectoral gauges compiled by the NSE advanced this week, led by the Nifty Media Index’s 2.14 percent gain. The NSE Nifty PSU Bank Index was the top loser, down 1.91 percent.

How The Broader Market Fared

The broader market, represented by the Nifty 500 Index, ended flat this week, as Vodafone Idea, Mishra Dhatu Nigam Ltd. and Muthoot Finance Ltd. emerged as the top gainers.

Big Talking Points This Week

  • JSW Steel takeover of Bhushan Power & Steel: NCLAT grants immunity from criminal investigations.
  • What Bhushan Power & Steel’s acquisition will mean for JSW Steel.
  • SEBI to tighten eligibility norms for investment advisers, fees to be capped.
  • DHFL receives interest from 24 bidders.
  • BQ Exclusive: Altico Capital’s lenders lean toward SSG Capital resolution plan.
  • Borrowing costs drop for Piramal Group as fear factor eases.
  • MCA’s proposals for auditors: Some will manage optics, others are dangerous, experts say.
  • India’s Oyo reports $335 million loss on revenue of $951 million.
  • Reliance, Aramco accelerate refinery stake sale talks.
  • What foreign investors bought and sold in January.
  • Nifty Q3 Results: The three sectors that proved to be a drag.
  • Barbeque Nation refiles IPO papers with SEBI.
  • Banks recover 40% of dues from top 12 insolvency accounts.
  • Promoter reclassification: Who calls the shots?
  • The key sectors that are likely to be affected by coronavirus outbreak.
  • Indians set for smallest salary increases in a decade.
  • BQ Exclusive: SBI approves Suzlon’s debt restructuring plan.
  • Sachin Bansal bets his Flipkart dollars on mobile-first banking.
  • JSW Steel, the biggest fan of Trump’s steel tariffs, is suing over them.
  • Insolvent DHFL reports small profit in Q3 with many ifs and buts
  • A ghost town in a Mumbai Suburb has a common link with PMC Bank fraud.
  • The biggest stock upgrades and downgrades in target price post Q3 results.
  • Michael Bloomberg catches flak, Warren Shines and Sanders dodges trouble.

Big Event Next Week: Trump’s India Visit

As President Donald Trump’s motorcade makes its way from the Ahmedabad airport next week anticipating millions of cheering Indians waiting to greet him at a sprawling cricket stadium, there’ll be a few thousand locals hidden from view.

The city’s municipal corporation has built a four-foot-high wall to hide a stretch of slums on the American leader’s route. Trump and India’s Prime Minister Narendra Modi are expected to inaugurate and share the stage at Ahmedabad’s Motera cricket stadium at a public reception being touted as “Namaste Trump” on Feb. 24.

Trump told reporters on Tuesday he expects around seven million people at the stadium and lining the streets to greet him at the start of his two-day trip.

This comes as Trump cast doubts over the likelihood of an anticipated trade deal with India.

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