Key benchmark indices were trading lower in early trade. At 9:17 IST, the barometer index, the S&P BSE Sensex, was down 48.92 points or 0.20% at 24,745.04. The Nifty 50 index was down 2.85 points or 0.04% at 7,528.95.
The market breadth indicating the overall health of the market was strong. On BSE, 592 shares rose and 197 shares fell. A total of 30 shares were unchanged. The BSE Mid-Cap index was currently up 0.32%. The BSE Small-Cap index was currently up 0.34%. Both these indices outperformed the Sensex.
In the overseas market, most Asian stocks edged higher today, 10 March 2016, after New Zealand surprised markets with a rate cut, keeping investors primed for more stimulus from the European Central Bank (ECB) later today, 10 March 2016, as global policy makers step up efforts to support their wobbly economies. A rebound in the price of oil, a source of recent anxiety, also calmed investor nerves. In mainland China, Shanghai Composite was down 1.12%. Hong Kong's Hang Seng index was up 0.71%. US stocks closed modestly higher yesterday, 9 March 2016, as a rally in oil prices and sharp advances in energy and tech stocks kept the main indexes buoyant.
Shares of Bharat Heavy Electricals (Bhel) was down 0.88% after ratings agency CRISIL in a report dated 9 March 2016, downgraded its rating on the long-term bank facilities of Bhel to CRISIL AA+/Negative from CRISIL AAA/Negative. CRISIL has reaffirmed its ratings on the company's short-term bank facilities at CRISIL A1+. The downgrade reflects CRISIL's belief that Bhel's business risk profile will remain constrained over the medium term by continued weak profitability and stretch in working capital cycle. CRISIL expects Bhel's profitability to remain under pressure, and its working capital stretched over the medium term on account of the challenging operating environment in the power sector. The rating may be further downgraded if project execution is slower than expected and costs remain high, leading to continued losses and a high receivable position, CRISIL said. Conversely, the outlook may be revised to stable if profitability improves, backed by a structural revival in the power sector, translating into faster project execution, and improvement in working capital position, CRISIL said.
Index heavyweight and housing finance major HDFC was down 0.29%. The company announced after market hours yesterday, 9 March 2016, that it intends to raise Rs 525 crore through private placement of senior secured redeemable non-convertible debentures. The coupon rate of debentures is 8.72% per annum with a tenor of 3 years 35 days. The issue opens and closes on the same day on 11 March 2016. The object of the issue is to augment the long-term resources of the company. The proceeds of the issue would be utilized for financing/refinancing the housing finance business requirements of the company.
Kotak Mahindra Bank was up 0.65%. The Reserve Bank of India (RBI) has announced removal of restrictions placed on the purchase of shares of Kotak Mahindra Bank by foreign investors. The RBI said that the aggregate share holdings by foreign investors in the private sector bank has gone below the prescribed limit stipulated under the prevailing foreign direct investment (FDI) policy and hence the restrictions are removed. The RBI made the announcement after trading hours yesterday, 9 March 2016.
Corporation Bank was up 0.24%. The bank announced that its board of directors at a meeting held on 8 March 2016, approved raising of capital of the bank to the extent of Rs 1000 crore in one or more tranches with Green Shoe option if any by way of either issue and allotment of equity shares on preferential basis or by way of additional Tier I bonds or through various other means subject to necessary approvals. This is exclusive of earlier approval of the board on 6 November 2014 where in Rs 500 crore by way of additional Tier I bonds and Rs 500 crore by way of Tier II bonds is yet to be raised, Corporation Bank said. The announcement was made after market hours yesterday, 9 March 2016.
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