Indices cut early losses to regain positive zone in morning trade. At 10:28 IST, the barometer index, the S&P BSE Sensex, was up 58.47 points or 0.16% at 35,949.99. The Nifty 50 index was up 6.90 points or 0.06% at 10,799.40.
Key benchmark indices edged lower in early trade after provisional data showed that domestic and foreign funds, both, were net sellers of Indian equities yesterday, 2 January 2019. The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 621.06 crore. Domestic institutional investors (DIIs) sold shares worth a net Rs 226.18 crore.
The S&P BSE Mid-Cap index was up 0.28%. The S&P BSE Small-Cap index was up 0.34%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1095 shares rose and 775 shares fell. A total of 120 shares were unchanged.
Overseas, most Asian stocks fell after Apple Inc. added to global growth concerns by cutting its guidance. US stocks saw modest rebound yesterday, 2 January 2019 from the worst December rout since the Depression.
Back home, HCL Technologies (up 1.14%), Hindustan Unilever (up 0.9%), Bajaj Auto (up 0.74%), ICICI Bank (up 0.7%) and ITC (up 0.57%) edged higher from the Sensex pack.
ONGC (down 2.64%), Tata Steel (down 1.56%), M&M (down 1.48%), Coal India (down 1.35%) and Tata Motors (down 0.77%) edged lower from the Sensex pack.
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Bank of Baroda was up 1.09%. Vijaya Bank was down 6.37%. Dena Bank was down 18.11%. The Union Cabinet approved the scheme of amalgamation for amalgamating Bank of Baroda, Vijaya Bank and Dena Bank, with Bank of Baroda as the transferee bank and Vijaya Bank and Dena Bank as transferor banks. The amalgamation will be the first-ever three-way consolidation of banks in India, with the amalgamated bank being India's second largest public sector bank. The scheme shall come into force on 1 April 2019. The announcement was made after market hours yesterday, 2 January 2019.
For every 1,000 shares of Dena Bank worth Rs 10 each, Bank of Baroda will issue 110 shares of Rs 2 each. Vijaya Bank's shareholders will get Bank of Baroda's 402 shares of Rs 2 each for every 1,000 shares of Rs 10.
The amalgamation will help create a strong globally competitive bank with economies of scale and enable realisation of wide-ranging synergies. Leveraging of networks, low-cost deposits and subsidiaries of the three banks has the potential of yielding significant synergies for positioning the consolidated entity for substantial rise in customer base, market reach, operational efficiency, wider bouquet of products and services, and improved access for customers.
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