InvestorQ : Why is SBI up so sharply on Friday trading on 15th November? Why has Bharti moved up despite the huge loss?
Mary Joseph made post

Why is SBI up so sharply on Friday trading on 15th November? Why has Bharti moved up despite the huge loss?

Answer
image
Ria Jain answered.
2 years ago
Follow

There are two parts to your question. Let me address the SBI part first. The Supreme Court passed an order in the Essar Steel case that the NCLT and the NCLAT did not have any jurisdiction over the contours of the insolvency deal. In the case of Essar Steel, the promoters had approached the NCLAT after Arcelor bid had been put in and accepted by the Committee of Creditors. This SC order means that the Committee of Creditors (COC) has the full powers to decide on the nature of the deal and the payouts. This is a major advantage to banks like SBI, which has the highest exposure and interest in insolvent company loans. This should come as a relief to SBI as the COC led by banks gets full powers in future cases too. This makes the task easier.

In the case of Bharti Airtel, the stock opened weak on Friday but bounced nearly 12% from the lows of the day. On Thursday, Bharti had reported a loss of Rs.23,045 crore after it wrote off nearly Rs.28,400 crore in the quarter towards AGR charges as ordered by the Supreme Court. This means that the AGR loss is already accounted for by Bharti. Today the government has promised that they will come out with a rescue package for telecom sector. This would mean that Bharti would be allowed to write back any benefits from the sops offered by the government of India. That is the reason the stock has bounced on Friday
26 Views