Don’t miss the latest developments in business and finance.

Market hovers in negative terrain

Image
Capital Market
Last Updated : Jun 23 2016 | 1:28 PM IST

A range bound movement was witnessed as key benchmark indices languished in negative zone in mid-morning trade. At 11:20 IST, the S&P BSE Sensex, was down 21.42 points or 0.08% at 26,744.23. The Nifty 50 index was down 8 points or 0.1% at 8,195.70. In overseas stock markets, most Asian stocks fell as investors remained on the edge ahead the Brexit referendum. Brexit refers to the referendum on 23 June 2016 by British voters to decide whether the country should remain a member of the European Union (EU) or leave it.

The Sensex fell 29.13 points, or 0.11% at the day's low of 26,736.52 in mid-morning trade. The index rose 47.92 points, or 0.18% at the day's high of 26,813.57 in early trade. The Nifty fell 15.50 points, or 0.19% at the day's low of 8,188.30 in morning trade. The index rose 8.65 points, or 0.11% at the day's high of 8,212.35 in early trade.

The market breadth indicating the overall health of the market was weak. On BSE, 1,357 shares fell and 780 shares rose. A total of 129 shares were unchanged. The BSE Mid-Cap index was currently down 0.15%. The BSE Small-Cap index was currently down 0.28%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

In overseas stock markets, most Asian stocks fell as investors remained on the edge ahead the Brexit referendum. Brexit refers to the referendum on 23 June 2016 by British voters to decide whether the country should remain a member of the European Union or leave it. Opinion polls indicate that the vote is expected to a nail-biter. Voting will close at 10 p.m. London time. Referendum results from the first counting areas are expected around 12:30 a.m. London time on Friday, 24 June 2016. US stocks finished slightly lower yesterday, 22 June 2016, as opinion polls showed the outcome of the Brexit remained too close to call a day ahead of the vote.

If the UK votes to leave the EU, it could send British pound and euro tumbling, with ripple effects across global asset classes.

Closer home, the Reserve Bank of India (RBI) has assured liquidity support to ensure orderly conditions in financial markets if the Brexit poll outcome causes turbulence in global financial markets. The RBI said a statement issued yesterday, 22 June 2016, that it is maintaining a close vigil on developments, and will take all necessary steps, including liquidity support, to ensure orderly conditions in financial markets.

More From This Section

Banks stocks witnessed a mixed trend. Among private sector banks, HDFC Bank (up 0.46%), Yes Bank (up 0.33%) and Axis Bank (up 0.32%) edged higher. Kotak Mahindra Bank (down 0.06%), ICICI Bank (down 0.65%), Federal Bank (down 0.9%) and City Union Bank (down 1%) edged lower.

IndusInd Bank was up 0.79%. The stock turned ex-dividend today, 23 June 2016 for dividend of Rs 4.50 per share for the year ended 31 March 2016 (FY 2016).

Among state-run banks, Indian Bank (down 2.74%), Vijaya Bank (down 1.76%), Punjab & Sind Bank (down 1.56%), Bank of Maharashtra (down 1.2%), IDBI Bank (down 1.07%), Central Bank of India (down 0.76%), United Bank of India (down 0.45%), Andhra Bank (down 0.37%), Syndicate Bank (down 0.28%), UCO Bank (down 0.26%), Dena Bank (down 0.14%) and Union Bank of India (down 0.04%), edged lower. State Bank of India (up 0.21%), Canara Bank (up 0.38%), Bank of Baroda (up 0.44%), Corporation Bank (up 0.50%), Allahabad Bank (up 0.66%) and Punjab National Bank (up 1.70%), edged higher.

Reserve Bank of India Governor Raghuram Rajan said yesterday, 22 June 2016, that the cleaning up of bank balance sheets and the restoration of credit growth are vital and related elements in the growth agenda. The government and the Reserve Bank of India are helping public sector banks in this difficult but critical task, Rajan said at an interactive meet between industry and trade arranged by industry body ASSOCHAM in Bangalore. The government's effort in speeding up the debt recovery process and creating a new Bankruptcy system are two important steps towards improving the resolution process, he said. Rajan also said that improving governance of public sector banks and infusing bank capital will pay large dividends in the short run. Rajan said that banks are getting into the spirit of cleanup and are pursuing reluctant promoters to take the necessary steps to rehabilitate projects. The RBI Governor said that fundamentals of the borrower not being good and the ability of the lender to collect being weak were the two sources of current distress in the banking system.

Hubtown gained 4.54% after the company reported net profit of Rs 16.39 crore in Q4 March 2016 compared with net loss of Rs 30.50 crore in Q4 March 2015. Total income from operations fell 37.39% to Rs 94.70 crore in Q4 March 2016 over Q4 March 2015. The result was announced before market hours today, 23 June 2016.

Career Point lost 0.86% after Franklin Templeton Asset Management India sold a total of 6 lakh shares of the company in bulk deals on the BSE and NSE yesterday, 22 June 2016. Franklin Templeton Asset Management India sold 5 lakh shares of Career Point at Rs 106.11 per share in a bulk deal on the BSE. It sold 1 lakh shares of the company at Rs 107 per share in a bulk deal on the NSE.

Powered by Capital Market - Live News

Also Read

First Published: Jun 23 2016 | 11:20 AM IST

Next Story