MCX May Lose Rs 100 Cr Investment in Metropolitan Stock Exchange

 MCX's investment worth about Rs 100 crore in Metropolitan Stock Exchange is likely to be wiped off with the Securities and Exchange Board of India (Sebi) rejecting the commodity bourse's proposal to hike stake by conversion of existing warrants.

The country's largest commodity exchange MCX is facing difficulty in selling convertible warrants held by it in Metropolitan Stock Exchange (earlier known as MCX-SX) that are to lapse on June 19.

At the end of March this year, MCX held a nearly 5 per cent equity stake as well as 58.26 crore warrants valued at around Rs 117 crore in the stock exchange. Sources said the present value of warrants is about Rs 100 crore.

MCX said on Tuesday that validity of the warrants would be expiring on June 19.

"The company's request for extension of time as well as to retain 15 per cent shareholding as applicable in case of a stock exchange has not been acceded to by Sebi," it said in a filing to the BSE.

Under the Securities Contracts (Stock Exchanges And Clearing Corporations) Regulations, 2012, rights over equity held beyond a given threshold would be applicable only for a certain period of time.

In the present case, the period of three years provided to MCX for reducing the stake ends on June 19.

With Sebi declining to hike the stake or extend the validity of warrants, sources said that MCX's investment worth about Rs 100 crore may get wiped off as it could be difficult to find a buyer before the deadline ends.

Gold, silver rebound on firm global cues, jewellers buying

Snapping its two-day falling run, gold prices rebounded by Rs 200 to Rs 26,370 per 10 grams at the bullion market on Thursday, tracking a firm trend overseas amid fresh buying by jewellers.

Silver also surged by Rs 1,050 to Rs 35,500 per kg on increased offtake by industrial units and coin makers. Bullion traders said sentiment turned better after gold advanced from a three-month lows in global markets after dollar weakened, raising demand for the precious metals.

Gold in Singapore, which normally sets price trend on the domestic front, rose by 0.7 per cent to $1,166.69 an ounce and silver advanced 1.5 per cent to $15.39 an ounce. In the national capital, gold of 99.9 and 99.5 per cent purity recovered notably by Rs 200 each to Rs 26,370 and Rs 26,220 per ten grams respectively.

The precious metal had lost Rs 400 in last two days.Sovereign also moved up by Rs 100 to Rs 23,100 per piece of eight gram. Following gold, silver ready flared up by Rs 1,050 to Rs 35,500 per kg and weekly-based delivery by Rs 1,120 to Rs 35,280 per kg. Meanwhile, silver coins held steady at Rs 53,000 for buying and Rs 54,000 for selling of 100 pieces.

Rupee up 7 paise at 63.53 against US dollar

After falling for two straight days, the rupee strengthened by 7 paise to 63.53 against the dollar in early trade on Thursday at the Interbank Foreign Exchange market on fresh selling of the American currency by exporters.

Besides, a higher opening in the domestic equity market and the dollar's weakness against other currencies overseas, supported the rupee, forex dealers said.

The rupee had depreciated by 14 paise to close at an over one-week low of 63.60 against the American currency in yesterday's trade on steady dollar demand from state-owned banks and importers.

Meanwhile, the benchmark BSE Sensex recovered 110.41 points, or 0.39 per cent, to 27,798.13 in early trade today. 

Sensex slips further, down 114 points ahead of TCS earnings

The BSE benchmark Sensex on Thursday fell over 114 points to close at almost three-week low of 27,573.66 as stocks led by the IT sector retreated on caution ahead of TCS results, shrugging off a rebound in global markets, including China.

The 30-pack index hit the day's high of 27,798.13 in early trade on value-buying in recently battered blue-chips.

However, higher levels could not be sustained due to selling, dragging down the Sensex into the negative zone to a low of 27,540.60 before ending 114.06 points, or 0.41 per cent, down at 27,573.66.

This is gauge's lowest closing since June 19 and has now lost 635.10 in three consecutive sessions.

The 50-share Nifty too dropped 34.50 points, or 0.41 per cent, to end at 8,328.55. Intra-session, it moved between 8,400.30 and 8,323.

Market showed some signs of recovery in early trade largely in line with a firming trend at other Asian markets and rebound in Chinese stocks as the government announced more measures to arrest a market slump, equity brokers said.

"Stocks are unable to maintain higher levels as market is lacking any positive trigger," said Manoj Choraria, a Delhi-based broker.

A cautious stance from the participants booking profits ahead of the TCS earnings announcement wiped off early gains.

Other Sensex losers included Vedanta, Bajaj Auto, Tata Motors, NTPC and ONGC.

Bucking the trend, BHEL, L&T, Hindalco, HeromotoCorp, Bharti Airtel, Lupin Lab, ICICI Bank, Dr Reddy's, Sun Pharma and SBI notched up gains up to 3.59 per cent.

On the 30-share pack, 20 closed with losses.

Sector-wise, oil & gas suffered the most, followed by IT.

Broader markets were affected too, with the BSE small-cap and mid-cap indices falling up to 0.33 per cent.

Globally, other Asian markets ended higher with China mainland index Shanghai Composite rebounding 5.76 per cent and European markets showing a better trend in opening trade.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth Rs 354.32 crore yesterday, as per provisional data.