Sensex and NIFTY crash as Dow Jones plunges

 

Image Caption – Sensex plunged 1.61%, while NIFTY crashed 292 points on February 06 in the wake of US market crash.
Image Source: Reuters

 

Mumbai, February 06: The Bombay Stock Exchange extended their losses for the sixth successive session with the benchmark Sensex falling by another 561 points to close at a one-month low of 34,195.94. Along with Sensex, NIFTY recorded a loss of over 292 points at the open. This loss comes in the wake of US markets suffering a setback, with Dow Jones losing 1252 points at its opening on February 06.

After opening at 33,753.78, the BSE Sensex continued its slide to hit a low of 33,482.81 as selling gathered momentum in tandem with weak global leads. However, value-buying emerged at several counters during the late trading session. The benchmark finally ended at 34,195.94, down 561.22 points, or 1.61%.

These crashes in the market can be attributed to the crashes in US markets. The Dow suffered its worst point decline in history February 05. It amounted to 4.6% – the biggest decline since August 2011, during the European debt crisis.

However, there were many stocks that braved the situations and recorded as high as 13% rise in the day. SpiceJet rose 13%, followed by Intellect Design Arena – 9% – Polaris Consulting gained 7.3%, while Crompton Greeves went up 7% among the constituents in the S&P BSE 500 index.

Source: CNN, Business Today

RBI fines Bank of Baroda and HDFC

The Reserve Bank of India (RBI) imposed a fine of Rs 5 Crore on Bank of Baroda for involvement in the Foreign Exchange Scam detected last year. HDFC Bank too faced a similar penalty of Rs 2 Crore for not following the anti-money laundry (AML) norms.

In October 2015, the Central Bureau of Investigation scrutinised various bank. The Bank of Baroda’s Ashok Vihar branch in Delhi was charged for illegally transferring Rs 6,100 Crore. The bank employees transferred funds to 59 Hong Kong companies registered with wrong address. The investigators suspect that the amount was transferred as payment for unprecedented imports.

The RBI noticed various irregularities in Bank of Baroda like non-submissions or delays in filling Suspicious Transaction Reports and opening of accounts without following the Know Your Customer (KYC) norms. HDFC Bank lapsed in adhering to the KYC and AML norms.

According to a TOI report, “HDFC Bank has implemented a comprehensive corrective action plan” to ensure that the norms are followed. Even Bank of Baroda has implemented measures to strengthen the bank’s internal control.

Shares of both HDFC Bank and Bank of Baroda closed at Rs 1,246.55 apiece and 3.21 per cent up at Rs 155.75 apiece on Bombay Stock Exchange.

 

Sources: Times Of India, The Economic Times, Hindustan Times

Salman and the Stock Market

Mumbai: Bombay High Court’s verdict on Salman Khan hit-and-run case has invited antithetical opinions from the Twitterati. While some are perturbed by the way the judicial system functions, it should be safe to suggest, others are ‘brimming’ with joy. Amongst those who are flying high are the Mandhana Industries, whose shares seem to have soared by almost 13 per cent intraday on Friday, after the verdict was announced. The stock of Mandhana Industries ended 3.31 per cent higher after hitting an intraday high of Rs 307.30, up 13.18 per cent on the Bombay Stock Exchange (BSE).

Image source: www.businesstoday.in Salman Khan acquitted in 13-year-old hit-and-run case
Image source: www.businesstoday.in
Stocks of Mandhana Industries soar as HC announces Salman Khan’s acquittal. 

Mandhana Industries are into an exclusive license agreement with Being Human-The Salman Khan Foundation for designing, marketing and distributing Being Human apparel and other merchandise. The Mumbai based textile and apparel manufacturing company, has exclusive rights to promote and use the Being Human brand throughout the world for its products for the next nine years and three months with the actor as the brand ambassador. Being Human accounts for 10 per cent of Mandhana Industries’ revenew.

Meanwhile, Eros International, the distributer of two of Salman’s films released this year, Bajrangi Bhaijan and Hero, closed in flat after rising as much as 4.75 per cent on BSE.

Khan’s acquittal is a big reassurance for the many other brands that he endorses which includes Thums Up, Wheel and P.N.G Jewellers.

Bollywood shone a 200-crore rupee smile on HC’s ruling as the exorbitant amount rides on the busy actor.  Currently, the superstar is engaged in the film ‘Sultan’ being shot at ND Studios, where he also shoots on weekends for the reality show Big Boss.

Salman Khan breathed a huge sigh of relief when the Bombay High Court acquitted him of all charges in the 13-year-old hit-and-run case that had allegedly killed one pavement dweller and left four others injured, near Bandra in Mumbai. The court declared that the appellant cannot be convicted on the basis of the evidences laid down by the prosecution, labelling them to be unreliable and full of discrepancies. According to Justice AR Joshi, the prosecution has failed to bring material on record which spells out the case against the 49 year old actor.   

Sources: Business Today ; The Financial ExpressNDTV Profit