Zee Entertainment share price: Market Movers: Zee Entertainment tumbles as Sony merger risk increases
Robert D. Thompson
2 min read
With NCLT asking Zee Entertainment to hold the EGM, Invesco’s decision showed it was unwilling to give a thumbs up to Punit Goenka and the company’s current board of directors. While lawyers for Invesco told the NCLT that they never said they were against the proposed merger with Sony India, they pointed to the Zee Board’s unprofessionalism in calling EGM as proof of their lax corporate governance standards.
For investors, this development is of concern as it demonstrates the hurdles that ZEEL’s current board will face if it wants the Sony merger to happen. As a result, the company’s shares fell almost 2%.
IOB one step closer
The Overseas Bank of India finally exited the Reserve Bank of India’s quick fix on Wednesday and was greeted by investors with a 12% jump in Thursday’s session. The exit from the PCA will be a major victory for the government and the management of the bank after the last five trying years.
With the Center probably making plans for the bank’s privatization, the end of the PCA brings the lender closer to that goal.
IRB Infra surges
As India’s road construction industry looks bright and mobility reaches pre-pandemic levels, investors are excited about the prospects for IRB infrastructure. The road business is up 22 percent in September, including a jump of more than 7 percent today.
Analysts have been positive about the improvement in the company’s financial position and expectations that road construction contracts are set to rise in the second half of the current fiscal year as the government loosens its purse strings .
Manufacturers of graphite electrodes collapse
The achievements of the steel sector are also worrying investors of manufacturers of graphite electrodes, a key component of steelworks. Shares of Graphite Electrode and HEG fell 3% each, fearing that slowing demand in the steel export market would hurt those companies’ earnings as well.
Investors are hoping today’s decision is nothing more than a simple recording of profits as fund managers are still betting on a new round of capital spending for the country, which should benefit investors. electrode manufacturers such as Graphite India and HEG.
Tata Power continues to increase
Shares of the Tata Group company have risen 14% so far this week, including an almost 5% rise today as the stock becomes an indicator of the power sector’s recovery.
This week, energy stocks dominated the stock market on the perception of government reforms revolving around the fortunes of the sector. Tata Power, which is a major player in the electricity distribution game, is a direct beneficiary of the reforms proposed by the government.
