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Market nudges lower in early trade

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Capital Market
Last Updated : Oct 10 2019 | 9:50 AM IST

Key indices are trading lower in early trade on selling in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 112.70 points or 0.3% at 38,065.25. The Nifty 50 index was down 30.80 points or 0.27% at 11,282.50.

The S&P BSE Mid-Cap index was down 0.2%. The S&P BSE Small-Cap index was down 0.08%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 472 shares rose and 497 shares fell. A total of 33 shares were unchanged.

Shares of Indiabulls Housing Finance fell 1.39%. Indiabulls Housing Finance said that the meeting of the board of directors of the company is scheduled on 14 October 2019, to consider and approve the proposal of buyback of equity shares of the company.

Lakshmi Vilas Bank lost 5%. RBI yesterday, 9 October 2019 has informed that the application for voluntary amalgamation of the Indiabulls Housing Finance with Lakshmi Vilas Bank can't be allowed.

Bharti Airtel surged 7%. Bharti Airtel announced that its wholly-owned subsidiary Network i2i Limited (the Company), has priced a offering of US$ 750 million 5.650% Subordinated Perpetual Securities (the Securities). The Securities are guaranteed by Bharti Airtel. The Securities priced at par at a coupon and yield of 5.650%. The proceeds shall be used for refinancing , investments in subsidiaries and general corporate purpose. The announcement was made after market hours yesterday, 9 October 2019.

Union Bank of India fell 0.59%. Union Bank of India said that the Committee of Directors for raising of capital funds has approved preferential issue of new equity shares at issue price to be determined to the Government of India (President of India), for an amount aggregating up to Rs 11768 crore (including premium). The announcement was made after market hours yesterday, 9 October 2019.

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Torrent Pharmaceuticals lost 4.42% after the company received a warning letter from the USFDA for its Indrad facility in Gujarat. This action follows the earlier intimation received from USFDA in August 2019, wherein the agency had classified its inspection as 'Official Action Indicated' (OAI). The company does not believe that the warning letter will have an impact of disruption of supplies or the existing revenues from operations of this facility. The announcement was made after market hours yesterday, 9 October 2019.

Bank of Maharashtra dropped 3.61%. Reserve Bank of India (RBI) has intimated about its inability to accede to the request made by Bank of Maharashtra for setting-off Rs 7360.29 crore accumulated losses against the balance lying in Share Premium account and Revenue Reserve account of bank. The announcement was made after market hours yesterday, 9 October 2019.

Overseas, most Asian stocks were trading higher on Thursday. China has lowered expectations for significant progress from this week's trade talks with the United States, reports indicated, even as President Donald Trump on Wednesday expressed fresh optimism.

Top US and Chinese trade and economic officials will meet in Washington on Thursday and Friday to try to end a trade war that is slowing the global economy. Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are due to take part.

US stocks gained on Wednesday on hopes of progress in US-China trade talks, though stocks pared gains late after Chinese officials said Beijing had lowered expectations for negotiations this week.

Most Federal Reserve policymakers supported the need for an interest rate cut in September, minutes of the central bank's last policy meeting showed, but they remained divided on the path ahead for monetary policy. The readout of the meeting, released on Wednesday, also showed that the Fed agreed it would soon need to discuss increasing the size of its balance sheet following ructions in short-term money markets.

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First Published: Oct 10 2019 | 9:31 AM IST

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