Communications Ltd after a foreign institutional investors (FII) bought nearly 1% stake in Anil Ambani Group telecom company for about Rs.87 crore through open market.
On Tuesday, May 31, 2016, Integrated Core Strategies (Asia) Pte had purchased 18.48 million equity shares representing 0.74% of total equity of Reliance Communications at Rs.46.96 per share via bulk deal, as per NSE data. Target: Rs.57, SL: Rs.47.50.
Moreover, Reliance Communications reportedly said it expects to cut down debt by 75% through merger of MTS, Aircel and sales of mobile towers.
"Integration of MTS business with RCom is on track. We expect to complete the integration in August. We expect to make announcement with respect to Aircel merger anytime in June. Once we complete the Aircel transaction, we will go for the tower deal," RCom CEO for consumer business Gurdeep Singh said during a conference call on Tuesday.
"With completion of these deals, we expect RCom's debt to reduce by 75 per cent."
5. Foreign Portfolio Investors (FPIs) bought shares worth a net Rs.521.85 crore yesterday, 2 June 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs.576.86 crore yesterday, 2 June 2016, as per provisional data.
6. Indian Meteorological Department (IMD) retained its previous forecast of good rains for the 2016 southwest monsoon season (June to September).
Higher rural income may boost demand for consumer goods. FMCG firms derive substantial revenue from rural India. Good rains may also boost demand for tractors, fertilizers and other agri inputs.
In its second stage forecast issued after trading hours yesterday, 2 June 2016, the IMD said that rainfall over the country as a whole for the 2016 southwest monsoon season is most likely to be above normal.
Quantitatively, monsoon season rainfall for the country as a whole is likely to be 106% of the long period average (LPA) with a model error of plus/minus 4%. In its first stage forecast issued on 12 April 2016, the IMD had forecast rainfall to be 106% of the LPA with a model error of plus/minus 5%.