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PremiumMUMBAI :Mumbai: Benchmark indices BSE Sensex and NSE Nifty closed lower for a third session on Tuesday dragged by losses in private bank shares and as foreign investors continued to liquidate their positions. In the last eight sessions, foreign institutional investors (FIIs) sold nearly $1.4 billion in equity due to a disappointing budget and the recent $1.8 billion Punjab National Bank fraud. The Indian rupee hit a near three-month low against the US dollar. Bond yields hit two-year high on worries of shrinking banking system liquidity and higher US yield. Here are the latest updates from the markets:
BSE Sensex closed lower by 71.07 points, or 0.21%, to 33,703.59, while the Nifty 50 fell 18 points, or 0.17%, to close at 10,360.40. BSE MidCap was down 0.06%, while SmallCap declined 0.15%.
Choe Heungsik, governor of South Korea’s Financial Supervisory Service, told reporters he wants to see normalized trading of digital assets, and said the FSS is making efforts to do that. Bitcoin rose 3.7 percent to $11,470 at 8:34 a.m. in London, heading for a one-month high, according to prices compiled by Bloomberg.
The Reserve Bank of India is reviewing its process for allowing companies to raise money overseas due to concern that any increase in rupee volatility may hurt borrowers’ ability to repay debt, a person familiar with the matter told Bloomberg.
BSE Sensex traded higher by 104.67 points, or 0.31%, to 33,879.33, while the Nifty 50 rose 27.60 points, or 0.27%, to 10,406. BSE MidCap was up 0.30%, while SmallCap rose 0.18%. All the sectoral indices on BSE, except healthcare and realty, trade higher led by consumer durables, metal, telecom and IT.
India Grid Trust (IndiGrid), an Infrastructure Investment Trust, has completed the acquisition of three transmission assets from its sponsor, Sterlite Power Grid Ventures Ltd, the company said on Tuesday. The three assets include RAPP Transmission Co., Purulia and Kharagpur Transmission Co. and Maheshwaram Transmission (together MRP).
The Indian rupee hit a near three-month low against the US dollar, while the 10-year bond yield traded at near two-year high. The home currency was trading at 64.76, down 0.85% from its previous close of 64.22. Yields on 10-year bond was at 7.654%, a level last seen on 11 March 2016, compared to its Friday close of 7.578%.
Europe’s main stock markets steadied at the start of trading, with London’s benchmark FTSE 100 index down fractionally at 7,247.38 points. In the eurozone, Frankfurt’s DAX 30 climbed 0.1% to 12,403.63 points and the Paris CAC 40 was virtually flat at 5,257.43. (AFP)
Adani Enterprises Ltd said NCLT Ahmedabad has sanctioned a scheme of arrangement between the company, Adani Green Energy Ltd and their respective shareholders and creditors. Shares were down 1.23% to Rs200.50.
HIL Ltd said the company has commenced the commercial production of its SWR (Soil, Waste and Rain) pipes and pressure pipes at its plant located at Faridabad, Haryana. Shares traded 0.09% lower at Rs1,712.
Moody’s Investor Services placed Punjab National Bank under review for downgrade following the biggest scam in the country’s banking sector to the tune of Rs11,340 crore at the bank. The agency has a Baa3/P-3 rating on the Delhi-based lender now while it has a Baa3 rating on its foreign currency issuer rating.
BSE Sensex traded higher by 68.10 points, or 0.20%, to 33,842.76, while the Nifty 50 rose 15.25 points, or 0.15%, to 10,393.65.
JSW Energy Ltd said the proposed scheme of arrangement between the company and JSW Power Trading Co. Ltd and JSW Green Energy Ltd is now effective, following approval by the NCLT and Central Electricity Regulatory Commission. Shares rose 0.82% to Rs79.70
Techno Electric and Engineering Co. Ltd and Techno Power Grid Co. Ltd have signed definitive agreements for investment by India Grid Trust in Patran Transmission Co. Ltd. Shares fall 0.19% to Rs350.85
Gold prices fell for a third straight session as the dollar rebounded from over three-year lows hit last week, while investors waited for the minutes of the latest Federal Reserve meeting for clues on the outlook for US interest rates. Spot gold was down 0.4% at $1,341.20 an ounce at 9.10am. Earlier, it fell to as low as $1,340.16, the lowest since 14 February. US gold futures were down 1% at $1,342.90 per ounce, posting its biggest one-day fall in nearly two weeks.
BSE Sensex traded higher by 127.73 points, or 0.38%, to 33,902.39, while the Nifty 50 rose 34.70 points, or 0.33%, to 10,413.10. BSE MidCap was up 0.34%, while SmallCap rose 0.30%. Among the sectoral indices on BSE, metal, IT and Teck were leading the gains by rising up to 1%, whereas energy, healthcare and realty were trading lower.
Fitch Ratings on Tuesday placed Punjab National Bank’s (PNB) viability rating on a watch with negative implications, a move that reflects possible downgrade. Currently, viability ratings stands at “BB”. PNB shares traded 3.01% lower at Rs112.90.
Suven Life Sciences Ltd said it has received product patent from each India and South Korea corresponding to the new chemical entities for the treatment of disorders associated with Neurodegenerative diseases. Shares rose 2.20% to Rs195.40.
BSE Sensex traded higher by 157.30 points, or 0.47%, to 33,931.96, while the Nifty 50 rose 44.50 points, or 0.43%, to 10,422.90.
Bank stocks continued to bleed. Indian Overseas Bank fell 5%, Punjab National bank 4%, Union Bank of India 4%, Allahabad Bank 3.1%, Uco Bank 2.6%, Indian Bank 2.5%, Bank of Baroda 2.5%, Corporation Bank 2.2%, Bank of India 1.9%, Syndicate Bank 1.8%.
Metal stocks trades higher. NMDC rose 3.1%, Vedanta Ltd 2.5%, JSW Steel 1.9%, Steel Authority Of India 2%, Hindalco Industries Ltd 1.8%, Tata Steel Ltd 1.7%, Jindal Steel Ltd 1.5%, National Aluminum Corp Ltd 1%.
IndusInd Bank Ltd shares fell 0.7% to Rs1,621. The bank said in a notice to BSE that it has no direct credit exposure to Nirav Modi. IndusInd has small, two-digit exposure to Gitanjali Gems, it added.
The PNB fraud may be a particularly egregious example, but risk management in the entire public sector banking system leaves much to be desired.
Who's responsible for the PNB fraud? https://t.co/82Fhkk4WiG
— Livemint (@livemint) February 20, 2018
The Indian rupee hit a two-month low against the US dollar. At 9.31am, the home currency was trading at 64.50, down 0.48% from its previous close of 64.22. The local currency opened at 64.49 and touched a low of 64.53 a dollar, a level last seen on 18 December 2017. Bond yields hit a two-year high on worries of shrinking banking system liquidity and higher US yield. The 10-year bond yield was at 7.613%, a level last seen on 11 March 2016, compared to its Monday’s close of 7.578%.
BSE Sensex traded higher by 41.09 points, or 0.12%, to 33,815.75, while the Nifty 50 rose 14.50 points, or 0.14%, to 10,392.90.
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