Most Asian stocks traded lower following a down day for Wall Street as the US 10-year Treasury yield rose to 3.09 percent overnight.
May 16, 9:26 AM (IST)
Buzzing: Indiabulls Real Estate share price gained more than 6 percent ahead of board meeting to consider share buyback proposal.
The real estate company informed exchanges that a meeting of the board of directors will be held on May 18 to consider the proposal of buyback of equity shares.
It further said in terms of SEBI regulations and Code of Conduct for Prevention of Insider Trading of the company, the trading window for dealing in securities of the company has been closed and will remain closed till May 20, 2018.
May 16, 09:20 AM (IST)
Market Opening: Benchmark indices opened sharply lower, following weak trend in global stocks and uncertainty over formation of government in Karnataka.
The 30-share BSE Sensex was down 166.25 points at 35,377.69 and the 50-share NSE Nifty declined 54.20 points to 10,747.70.
Nifty Bank fell 184 points as PNB plunged 10 percent.
Lupin, Power Grid, Tata Steel, Tata Motors, TCS and Tech Mahindra were early gainers.
Titan Company, Bajaj Finserv, ICICI Bank, Axis Bank, Cipla, HPCL and SBI were under pressure.
Nifty Midcap was down 83 points. Reliance Communications, Jaypee Infratech, MRPL, Shakti Pumps, PI Industries, Syndicate Bank, Allahabad Bank, Karnataka Bank, Bajaj Hindusthan and IDBI Bank were down up to 8 percent.
Endurance, Crompton Consumer, Indiabulls Real Estate, Bhushan Steel, IRB Infrastructure and Ashok Leyland gained up to 7 percent.
May 16, 09:15 AM (IST)
Rupee Update: The Indian rupee recovered sharply after opening 7 paise lower, trading higher by 18 paise at 67.89 against the US dollar.
May 16, 09:14 AM (IST)
Market Outlook: Abhinav Gupta , President, Capital Markets, Share India Securities said index seems to be at the cross roads as Tuesday's intraday reversal could be beginning of further corrective action. Besides, weaker global cues and sluggish rupee added to the subdued sentiments on the bourses. Brace up for more volatility ahead. Below 10,780, Nifty would test sup of 10,720-10,680. Resistance is at 10,880.
May 16, 09:12 AM (IST)
Rupee Update: The Indian rupee slipped further on Wednesday. It has opened lower by 7 paise at 68.14 per dollar.
In the previous session rupee ended at 68.07 (down 56 paise from Monday's close), a lowest level since January 2017 post BJP fell short of clear majority in Karnataka.
Anand James, Chief Market Strategist at Geojit Financial Services said, "With food and fuel prices pushing CPI higher, rupee’s weakness has hastened, sinking to 16-month low. Political uncertainty after the Karnataka elections also did not help."
"RBI’s recent minutes had also revealed a hawkish bias, and the firm inflation now agrees with the same. To this end, oil’s trajectory for the rest of the month and trade balance figures for April would be crucial as market weighs RBI’s take on the rates," he added.
May 16, 09:10 AM (IST)
PNB's NPAs are now more than its net worth: The country’s second-largest state-owned lender Punjab National Bank achieved a dubious distinction. It became the first major bank in the country whose net worth fell below the amount of non-performing loans on its books.
As on March 31, the bank had net non-performing loans totaling over Rs 48,000 crore on its books, against a net worth of around Rs 41,000 crore.
To be sure, PNB is not the first bank in the country to have witnessed this kind of misfortune. Smaller public sector banks like Oriental Bank of Commerce, Dena Bank, Union Bank of India and UCO Bank, among others, have already crossed that bridge.
But the fact that a lender the size of PNB, which has loans of around Rs 4.33 lakh crore on its books, has deteriorated to such an extent that it has more bad loans than it is worth is a point of concern.
