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Trend-Today (17 Feb 2018)
Trend-Today (17 Feb 2018)
Husains
MARKET WRAP
The benchmark indices ended off day's low but remained under pressure during the day. The
30-share BSE Sensex was down 286.71 points at 34,010.76 and the 50-share NSE Nifty was down
94.30 points at 10,451.20.
The benchmark indices were volatile in the final hour of trade with Sensex trading around 34,
000 and nifty trading below 10,450.
Ambuja Cements, Kotak Mahindra Bank, Dr Reddys Labs, TCS, Infosys and Wipro are the top
gainers on the indices, while top losers are SBI, Tata Steel, Yes Bank, Maruti Suzuki, ICICI Bank,
Eicher Motors and Tech Mahindra.
"The outstanding exposure related to the incident is approximately USD 300 million and the
bank is fully secured by LoU / LC / other documents," Union Bank said.
Union Bank of India on Friday clarified that it has nearly 17 percent exposure to the transaction
fraud worth USD 1.8 billion (Rs 11,300 crore) detected by Punjab National Bank recently.
The bank said through its foreign branches it has been taking exposure with Punjab National
Bank as counter party under various letters of undertakings (LoU) issued through authenticated
SWIFT message.
The bank has also purchased some buyers' credit assets from Axis Bank through risk participation
as a part of normal international business practice, it added.
"The outstanding exposure related to the incident is approximately USD 300 million and the
bank is fully secured by LoU / LC / other documents," Union Bank said.
PNB, the country's second largest public sector lender, on Wednesday detected fraud
transactions totaling USD 1,771.69 million (approximately) or over Rs 11,300 crore at its Mumbai
branch. This led to the share price tanking 21 percent in previous two consecutive sessions.
In January this year, there were 47 M&A deals worth USD 15,137 million, while there were 45
such transactions worth USD 2,301 million in the same month of 2017, according to assurance,
tax and advisory firm Grant Thornton. The uptick in the deal momentum was primarily on
account of revived domestic deal activity that witnessed over eight-fold increase in deal values.
January recorded three domestic deals valued over USD 1 billion accounting for 98 per cent of
the total M&A deal values, the report said.
Meanwhile, cross-border deal values recorded over two-fold increase on account of three big-
ticket transactions estimated and valued over USD 100 million.
"Deleveraging the asset holding companies and strengthening the market position appeared to
be the motive for the large domestic/merger transactions," said Pankaj Chopda - Director at
Grant Thornton India LLP. Chopda further said debt leveraging, insolvency proceedings and
pressure to strengthen/retain market position will continue to drive M&A transactions in energy
and natural resources, industrials and banking and financial services sectors. The deal activity in
January 2018 more than doubled at 47 deals from 20 deals as compared to December 2017. On
the other hand, values jumped 44 times over December 2017 on account of billion-dollar deals.
January witnessed four deals in the billion-dollar club compared with December 2017, when
nothing happened in this value bracket, the report added.