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From 9 per cent Axis Bank sale, govt meets 185 per cent offload target in private cos

As per the bulk deal data on the stock exchanges, 4.2 crore Axis Bank shares were sold at an average price of Rs 1,315.13 apiece. This is at a 3.07 per cent discount to Thursday’s closing price.

The share sale fetches Rs 5,557 crore to the Exchequer. LIC has emerged as the single largest investor buying over 85 lakh shares at Rs 1,313.25, thereby pumping in over Rs 1,116 crore.  Other major buyers of the shares include Citigroup Global Markets Mauritius and Goldman Sachs Singapore. Shares of Axis Bank closed Rs 36.55, or 2.7 per cent, higher at Rs 1,393.40.

The scrip had dipped over 3 per cent in the morning trade to a low of Rs 1,313.25. The merchant bankers had on Thursday initiated the process of stake sale and had fixed a price band of Rs 1,290-1,357 per piece for the deal. ‘The stock will bounce back on strong fundamentals of the bank. There was demand in the counter and now with the stake sale supply has come,’ CNI Research CMD Kishore P Ostwal said.

Specified Undertaking of UTI (SUUTI), formed in 2003 is an offshoot of erstwhile UTI, held 20.72 per cent in Axis Bank. Pursuant to the deal, SUUTI’s holding will come down to 11.72 per cent. SUUTI in January had appointed three merchant bankers, J P Morgan, Citigroup Global Markets and JM Financial, for sale of its stake in Axis Bank.

Rupee surges 45p vs $ to 60.89 on Axis Bank stake sale inflows

Mumbai:
The rupee on Friday surged 45 paise, its biggest daily gain in two weeks, to end at 60.89 versus the dollar on massive capital inflows linked to the government stake sale in Axis Bank. After suffering its worst loss in two months Thursday, the rupee’s recovery Friday was also aided by fresh dollar selling by exporters and some banks on the back of a weak American currency overseas, said forex traders. The dollar index was down 0.07 per cent against a basket of six major global rivals.

At the Interbank Foreign Exchange market, the domestic currency resumed higher at 61.15 a dollar from last close of 61.34, but declined to a low of 61.25. Later, it rebounded to settle at the day’s high of 60.89, showing a rise of 45 paise — its biggest gain since March 6, 2014 when it was shot up by 64 paise or 0.73 per cent.

On Thursday, it had dipped 39 paise or 0.64 per cent. For the week, the rupee rose 30 paise against dollar. As per provisional exchange data, FIIs pumped in over Rs 4,200 crore Friday in the capital market segment alone.

‘Heavy capital inflows linked to government stake sale in the bank helped the rupee register robust gains. Inflows are also happening in the debt market,’ said Ashtosh Raina, Head of Foreign-Exchange Trading at HDFC Bank. The government Friday sold 9 per cent stake held through SUUTI in Axis Bank through a block deal.

Besides, the CPSE Exchange Traded Fund (ETF) has so far garnered cumulative bids of over Rs 4,000 crore boosted by strong demand from overseas investors, sources said.

Alpari Financial Services (India) CEO Pramit Brahmbhatt said, ‘The rupee strengthened today taking cues from local equity markets which traded positively with the help of FIIs. The trading range for the Spot USD/INR pair is expected to be within 60.5 to 62.’

Meanwhile, the forward dollar premium declined further on consistent receipts by exporters. The benchmark six-month premium payable in August moved down to 220-222 paise from 222-224 paise previously. Far forward contracts maturing in February, 2015 also eased to 464-466 paise from 466.5-468.5 paise. The RBI fixed the reference rate for dollar at 61.0465 and for the euro at 84.1755.

Sensex loses early gains to end flat as RIL dips by 2.2 per cent

Mumbai:
After rising over 130 points, the benchmark Sensex Friday surrendered most of its initial gains to end with a mere 14-point rise on selling in RIL and ONGC. Rise in Tata Motors, Axis Bank, Tata Steel, Wipro, TCS, ITC and Hindalco scrips helped the index end in the green. Investors seemed to be cautious and preferred to book profits at higher levels ahead of the expiry of March contract on coming Thursday, said traders.  The Bombay Stock Exchange 30-share barometer resumed higher on the back of firm Asian trends and surged to 21,870.11 in view of positive closing on Wall Street Thursday on better economic data. It, however, was trapped in a narrow range before closing at 21,753.75, a rise of 13.66 points or 0.06 per cent. On Thursday, it had dipped by 92.77 points or 0.42 per cent.

Reliance Industries dropped 2.20 per cent on reports of drop in production at its eastern offshore project. ONGC fell over 2.6 per cent. Analysts said some bluechips like SBI saw activity on buzz that their weightage in FTSE indices would rise.

The National Stock Exchange 50-issue CNX Nifty also ended with a marginal gain of 10.10 points, or 0.16 per cent, at 6,493.20. Despite a small rise in the Sensex, most sectoral indices closed in the positive while only Oil&Gas and Healthcare indices finished in the red. Second-line stocks attracted good buying support from retail investors as BSE-Smallcap and BSE-Midcap indices settled 0.87 per cent and 0.81 per cent higher respectively.
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