Major News and Events of 21 November 2014
What Happened on 21 November 2014
Market Witnesses Good Time Today
Remarkable Performance by Banking Stocks
Major Acquisition in Retail Sector
More Mining Reforms on its Way
Overhaul of Environment Laws on the Cards
SBI Becomes the Most Valuable Bank Again
Telecom Scam Cases: SC Judgement Against CBI Director
Railway Minister Asks E Sreedharan to Submit Final Report in 2 Months
New Defence Minister Vouched for Make in India even in Defence Sector
Mangalyaan Makes it into Time's 'Best Inventions of 2014'
Can Anand Pull it through?
The merger deal of ING Vysya Bank and Kotak Mahindra Bank is done and the analysts believe that the valuation of the deal is reasonable. In fact, the share swap ratio is also reasonable. The swap ratio is 725 stocks for 1K Kotak Mahindra Bank stocks. Most significant aspect of this deal is the fifteen per cent dilution for Kotak. Market expected it to be twenty per cent. While Kotak’s stock zoomed by 7 per cent, ING Vysya’s stock rose by 1 per cent.
After the news of Kotak Mahindra Bank acquiring ING Vysya Bank went into the market, stock market responded sharply – increasing by 234 basis points by 11.35 am. In fact, the largest gainers are surely the banking stocks. Nifty is increased by two per cent. While BSE Sensex touched record high of 28,321, NSE Nifty touched 8,482.
The market responded positively after the news trickled in that acquisition of ING Vysya Bank is done by Kotak Mahindra at good valuation. At 11.33 am, NSE’s Nifty increased by 452 points, which is an increase of 2.56 per cent, and the banking stock index of NSE reached 18,097 (which in itself is a record high). While stocks of the public sector banks increased by 2 to 4 per cent, private bank stocks increased by 3 to 6 per cent.
Future Consumer Enterprise, led by Kishore Biyani, has revealed that the company has acquired major stake (97.97 per cent) of a renowned supermarket chain majorly based in Bangalore - Nilgiris. Market sources reveal that the deal is done between Rs. 175-200 crore. From now on Nilgiri Dairy Farm will be working as a Future Consumer Enterprise subsidiary. After this acquisition, FCE is now well placed to take on other retail giants belonging to Aditya Birla, especially in South India.
NDA government is surely taking mining sector seriously and is mulling the idea of ushering in more reforms in this sector. They started mining reform by allowing entry of commercial entities in this sector. As per the new plan, if implemented, the companies will be able to sell all kinds of mineral mines. Government has planned to make it happen by including transferability in the existing law of mining. This new provision will be included by the Union Government through addition of a chapter in Mines and Mineral Development and Regulation.
T S R Subramanian committee was constituted by the new central government around 3 months back for reviewing the existing green laws and their efficacy. After going through the forest and environment protection laws of India,. The committee has given some recommendations that will change the current legislation considerably. Some of these recommended changes are complete overhaul of some green laws, National Green Tribunal’s dilution of powers, self certification, fast-track dispensation facilities for important projects such as mining and power, etc.
After State Bank of India’s stocks increased by 2.2 per cent at 10.08 am today, it helped to increase the market capitalisation to a staggering Rs 2,26,734 crore. HDFC Bank’s stock also increased by one per cent and its market value increased to Rs. 2,23,699 crore. This makes SBI, the most valuable bank in India. It needs special mention that SBI stock increased by 4.5 per cent in the last two trading sessions.
Apex court of India has removed Ranjit Sinha, CBI Director, from investigating telecom scam cases. Supreme Court has observed that the prima facie evidences (regarding giving protection to the accused) against Ranjit Sinha seem to be credible. The time at which the judgement was passed is especially humiliating for Sinha because he is expected to retire after 12 days.
E Sreedharan, former chief of Delhi Metro Rail Corporation, has been asked by Suresh Prabhu (current Union Minister of Railways) to advice on different ways of infusing transparency in procedures and systems of railways. Special advise has been sought as a part of the current process of reforms that railways is going through regarding tender placement and procurement. While Sreedharan is expected to submit his interim report within coming 2 weeks, the final report is expected to be submitted within 2 months time.
Narendra Modi’s pet project ‘Make in India’ has caught imagination of the new Defence Minister, Manohar Parrikar, at least that’s what it seems from his statements. During an interview Parrikar has said that today’s defence officials in India always prefer imported items rather than the indigenous ones. Indian military and Air Force prefer imported products even when buying weapons using low level of technology. He clearly said that from now on indigenously built weapons should be given more importance and only after that imports will be done.
India’s Mar’s Mission has been appreciated by Time Magazine. Mangalyaan has been called by Time as a watershed technological invention that will help India place itself among the leading contenders in the race of interplanetary movement. The world famous magazine also mentioned that "The Supersmart Spacecraft" of India, that’s what they called Mangalyaan, achieved something that no other nation was capable of. Time Magazine has placed it in their 'Best Inventions of 2014' list.
44-year old Viswanathan Anand is still lagging behind Norway’s Magnus Carlsen. The last game was a draw and three more games are left to take place in the twelve match tournament. The young Norwegian is now currently leading by 5 to 4 points. To make the tournament even, India’s Anand needs a win as it will help him win 1 point. The Indian champion still believes that he has a chance to beat his rival.