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Financial year 2018 has largely been a very good year for the share markets as the sensitive Index of BSE (Sensex) rose by 11.30% by 3,348 points to 32,968.68 during 2017-18. The index touched its all-time high of 36,443.98 on January 29, 2018.

On account of the surge in stocks, the total market capitalization (MCap) of BSE-listed companies jumped by Rs 20,70,472 crore to Rs 1,42,24,997 crore.

Investors' wealth rushed forward to Rs 20.70 lakh crore during the financial year 2017-2018 helped by strong broader market sentiment.  A stellar rally on number of successful Initial Public Offerings also helped the total investor wealth to rise.

The economic reforms such as implementation of Goods & Service Tax (GST), Regulation and development in real estate sector and the ongoing pick up in corporate earnings further aided the rally. Improvement in macro-economic performance including CPI inflation also stood positive for the markets.

However, the month February and March only turned out to be lethargic to a great extent, where Large Cap, MidCap and smallCap indices have fallen due to selling pressure from Long Term Capital Gains and increase in domestic and global bond yield.

Some specific stocks from the Nifty witnessed massive under performance, which include stocks of Lupin, Aurbindo Pharma, Sun Pharmaceuticals and Dr. Reddy’s Lab. Lupin pharma stock closed 57% lower than its price on April 1, 2017, whereas Aurobindo Pharma stock  was down 37% during the course of the financial year,  hit by squeeze in margins from the U.S business. Stocks of Sun Pharma also dropped 38% being another poor performer in 2017-18.

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IOC, BPCL look 26 pc stake each in GAIL; Shares fall

Indian Oil Corporation Ltd (IOCL) and Bharat Petroleum Corporation Limited (BPCL) may buy 26 percent stake each in gas utility GAIL (India) Limited, paying the govt over Rs.20,000 crore each to become integrated energy companies, as per a report by the PTI.

Reacting to the news, shares of IOC, BPCL and Gail (India) were witnessing considerable fall in the Exchange. As per the report, the IOC and BPCL may split the govt’s 54.89 percent stake in GAIL India, equally among themselves, making it their subsidiary.

Subsequent on FM Arun Jaitley’s February 2017 Budget announcement of creating integrated oil companies, IOC and BPCL had submitted separate proposals to buy the govt’s 54.89% stake in India’s biggest gas marketing and transportation firm, GAIL India.

At 1.00 pm, shares of Indian Oil Corp were trading lower by 3.65% at Rs 178.00, whereas BPCL was down 3.60% at Rs 431.45. At the same time, shares of GAIL (India) Limited were trading 0.11% lower at Rs 440.50 on the National Stock Exchange (NSE).

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HDFC: HDFC Asset Management Company, a subsidiary of HDFC has filed the draft red herring prospectus (DRHP) with the SEBI.  

Yes Bank, Fortis Healthcare; Yes Bank has sold 1.12 crore equity shares of Rs 10 each, constituting 2.17% of the paid up share capital of Fortis Healthcare, resulting into changes in holding of the bank by more than 2 percent of the total shareholding of Fortis Healthcare, from the last disclosure made by the bank on 13 March 2018.

Wipro: Wipro limited has announced that the company invested USD 2.02 million to acquire 20% stake in Avamo Inc., on a fully diluted basis.

Bharat Financial Inclusion: The non-banking finance company, Bharat Financial Inclusion Limited, completed its third securitization transaction in FY 2018 of Rs 450.82 crore. By this,   the company has completed securitization transactions worth Rs 1114.49 crore in FY 2018.

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ICICI Securities IPO OF Rs. 4000 Cr, opens on March 22

ICICI Bank announced that it will sell up to 77,249,508 equity shares of its subsidiary, ICICI Securities, via an IPO (initial public offer). The public offer of ICICI Securities will open for subscription on 22 March 2018 and will close on 26 March 2018. The anchor investor offer period will be open for subscription on March 21, the company said.

At the upper end of the price band, the offer could fetch over Rs 4000 crore. The price band for the offer has been fixed at Rs 519-520 per share. The face value will be Rs. 5 each and the minimum bid lot is fixed at 28 equity shares.

The filing further said that the offer includes a reservation of up to 38.62 lakh equity shares of ICICI Securities for purchase by ICICI Bank Shareholders, that is, the HUFs and individuals who are the public equity shareholders of ICICI Bank.

The objectives of the Initial Public Offering are to accomplish the benefit of listing the equity shares on the stock exchanges and for the sale of equity shares by ICICI Bank. The company looks forward to enhanced visibility and brand image through the IPO.

ICICI Securities registered total revenue of Rs. 14,042.3 million in the financial year 2017 and a total revenue of Rs. 8,527.7 million for the six months ended September 30, 2017.

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