Sensex holds onto its gains

Thu, 8 Jul 01:30 pm

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After starting today's session on a positive note, Indian indices have managed to hold onto their gains. Other key Asian markets are mostly trading in the green, with the Nikkei leading the gains (up almost 3%). Stocks from realty and metal space are witnessing strong buying interest while stocks from healthcare and power space are witnessing lower gains.

The BSE-Sensex is trading up by around 218 points, while the NSE-Nifty is up by about 68 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 1.1% and 1.2% respectively. The rupee is trading at 46.85 to the US dollar.

As per a leading business daily, IDFC has raised Rs 26 bn via a qualified institutional placement. The company is also planning to raise Rs 8.4 bn by issuing compulsorily convertible preference shares (CCPS) to Actis and Khazanah. CCPS would be converted into equity in 18 months and would result in equity dilution of 14.5%. The government holding, too, will come down to about 17% from 20.1%. The capital raised will help in meeting regulatory requirements.

IDFC is planning to treble its loan book and the balance sheet over the next 3-4 years. In FY10, IDFC's loan book stood at Rs 260 bn. The infrastructure financing company has lined up ambitious plans. To achieve the same it requires pumping in capital. The company has lot of leeway in raising funds with the new status - infrastructure finance company.  

As per a leading business daily, Balaji Telefilms has carved out a separate entity, ALT Entertainment, to make films that cater to younger audiences. The company's foray into new genres and broadcasters has also not been able to generate the traction it had in its early years. The company's stronghold on the soap category has been eroded by the successful entry of several content providers. Hence, the company has diversified its revenues as content provider and broadcaster.  The move to cater to young adults (Balaji Motion Pictures released the movie 'Love, Sex Aur Dhoka' during FY10) seems to have somewhat eased the pain the production house went through in the last two years. Thus, the production house aims for a marked distinction in the brand image of Balaji Telefilms and ALT Entertainment. 

At present, a major part of the company's revenue comes from TV content production. Despite the diversification of revenues, TV content will remain the major revenue contributor and it is expected to remain at a healthy 65%.