Axis Bank buys Enam for Rs 2,067cr

MUMBAI: Axis Bank chief Shikha Sharma on Wednesday played a masterstroke by clinching a Rs 2,067 crore all-stock deal to take over the highly lucrative investment banking and equity businesses of Enam Securities.

The deal, under which 5.7 shares of the bank will be exchanged for each share of Enam, valued the domestic financial services major at Rs 8,333 per share. Apart from being a precursor to many such deals aimed at creating a financial supermarket model, it also represents the highest such valuation (20 times earnings) for a standalone investment banking firm.

As part of the deal Vallabh Bhanshali, co-founder and chairman of Enam, and a master deal-maker, will join the Axis Bank board. In addition, some other Enam directors will also work with the bank and 400 of its staff will move to a new wholly-owned subsidiary of Axis Bank. The bank has signed a five-year no compete clause with Bhansali and will use the Enam brand name for two years. Bhanshali, however, retains the assets management and portfolio management businesses.

Its a win win for both. While Enams strong mergers & acquisitions team can bring in large deals on the table, Axis Bank, with a strong balance sheet size can back such deals to earn substantial fees. Besides, the bank will use Enams expertise in distributing public offers through its 1,100 branch network.

Read more: Axis Bank buys Enam for Rs 2,067cr - The Times of India http://timesofindia.indiatimes.com/business/india-business/Axis-Bank-buys-Enam-for-Rs-2067cr/articleshow/6944046.cms#ixzz15bcHuEML

Sensex falls below 20000, drop biggest in 6 mths

MUMBAI: The BSE benchmark Sensex fell below the psychological 20,000-mark today, down about 445 points — biggest decline in six months — on frenzied profit-booking and weak trend in Asian markets.

The NSE's broad-based Nifty also closed below the magic 6,000-mark.

The fall was fuelled by speculations that central banks worldwide might raise borrowing costs to cool down inflation, constricting the availability of cash for equity investment.

While the Bombay Stock Exchange benchmark index, Sensex, fell by 444.55 points to 19,865.14, National Stock Exchange index, Nifty, fell by 132.90 points to 5,988.70.

After a weak opening, Sensex fell to a month's low as selling pressure gathered momentum influenced by melting Asian stocks, led by China, Hong Kong and Japan.

The regional index for Asian markets fell for the third straight session today on speculation that governments will take further steps to cool down inflation, coupled with a decline in raw material prices.

China's stocks fell, driving the benchmark index to the lowest in a month, on speculation the government might intensify measures to curb accelerating inflation including higher interest rates and price controls.

The MSCI Asian Index fell to its lowest level since November 3 in Tokyo, as the Shanghai Composite Index dropped 3.98 per cent.

Of the 30-BSE index, barring Bharti Airtel, all the 29 stocks fell sharply, while all the sectoral indices closed with losses.

The realty sector index suffered the most by losing 3.55 per cent to 3,325.98 on fears of hike in interest rates, which might impact the new construction and home sale.

The metal sector index was second worst performer and shed 3.11 per cent to 16,577.31 after copper, aluminium, zinc and lead fell sharply in London, amid fears that any measure taken by China, the leading consumer of the base-metals, would reduce demand for the commodity.

The capital goods sector index fell by 2.78 per cent to 15,602.93, consumer durable index by 2.58 per cent to 6,715.22 and auto index by 2.22 per cent to 9,983.56.

As the selling pressure spread over a wide-front, smallcap index fell by 2.92 per cent to 10,566.95 and midcap index by 2.15 per cent to 8,266.42.

Investors refrained from creating fresh positions in view of the public holiday tomorrow.

Read more: Sensex falls below 20000, drop biggest in 6 mths - The Times of India http://timesofindia.indiatimes.com/business/india-business/Sensex-falls-below-20000-drop-biggest-in-6-mths/articleshow/6935848.cms#ixzz15RvRuH3A

Sensex down 64 points in opening trade on profit-booking

STAFF WRITER 9:32 HRS IST

Mumbai, Nov 16 (PTI) The Bombay Stock Exchange benchmark Sensex fell by almost 64 points in opening trade today amid profit-booking and a mixed trend in the Asian region.

The 30-share barometer, which had gained 152.80 points in yesterday's volatile session, fell by 63.92 points, or 0.34 per cent, to 20,245.77 points at the start of trade, with realty, capital goods, banking and technology sector stocks leading the fall.

Similarly, the wide-based National Stock Exchange Nifty index also declined by 21.35 points, or 0.35 per cent, to an early-low of 6,199.25.

Brokers said a fresh bout of selling by funds and retailers after the previous session's gains, coupled with a mixed trend on other Asian bourses, weighed heavily on the trading sentiment.

In other Asian markets, Hong Kong's Hang Seng index was trading lower by 0.39 per cent, while Japan's Nikkei was up by 0.

Toll in building collapse mounts to 66

STAFF WRITER 11:56 HRS IST

New Delhi, Nov 17 (PTI) The four-storey building collapse in East Delhi has claimed 66 lives and left 130 injured in one of the worst such disasters in the capital, as massive rescue operations were today on to pull out those trapped under the debris.

"66 people have died and about 130 are injured and admitted to various hospitals of the capital with a major chunk being at the LNJP," Delhi Health Minister Kiran Walia said.

41 bodies have been taken to Lok Nayak Jai Prakash Narayan Hospital (LNJP), 16 to Lal Bahadur Shastri Hospital, six to Hedgewar Hospital and three to Guru Teg Bahadur Hospital.

Over 60 families, mostly labourers from West Bengal, were living in the cramped quarters of the 15-year-old building, where an illegal fifth floor was under construction.

The entire structure came crashing down around 8.15 PM yesterday at Lalita Park in Laxmi Nagar.