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

Positive market breadth; PSU banks advance

Image
Capital Market
Last Updated : Nov 20 2019 | 11:50 AM IST

The Sensex and the Nifty trimmed gains after hitting a fresh intraday high in mid-morning trade. The Nifty continued to trade above the 12,000 mark. At 11:22 IST, the barometer index, the S&P BSE Sensex, was up 280.26 points or 0.69% at 40,749.96. The Nifty 50 index was up 78.85 points or 0.66% at 12,018.95.

The S&P BSE Mid-Cap index was up 0.34%. The S&P BSE Small-Cap index was up 0.18%. The market breadth was positive. On the BSE, 1078 shares rose and 980 shares fell. A total of 137 shares were unchanged.

Buzzing Index:

The Nifty PSU Bank index rose 0.37% to 2,598.90, extending gains for fourth straight session. The index has gained 9.22% from a recent closing low of 2,379.40 on 14 November 2019. The current rally in the public sector banks was on account of the Supreme Court (SC) verdict in the Essar Steel case.

Among the public sector banks, UCO Bank (up 19.96%), Corporation Bank (up 4.54%), Bank of Maharashtra (up 4.38%), Canara Bank (up 0.86%), Indian Bank (up 0.36%) and IDBI Bank (up 0.15%) advanced.

Bank of India (down 0.13%), Punjab National Bank (down 0.16%), Union Bank of India (down 0.68%), State Bank of India (down 0.83%), United Bank of India (down 0.83%), Allahabad Bank (down 1.36%), Andhra Bank (down 1.48%), Syndicate Bank (down 2.14%) and Punjab & Sind Bank (down 2.95%) declined.

More From This Section

Bank of Baroda rose 1.42% to Rs 100.30. The Reserve Bank of India has imposed a penalty aggregating to Rs. 2.50 crore on the bank for non-compliance with the directions issued by the RBI in various accounts of Srijan Mahila Vikas Sahyog Samiti at Bhagalpur Branch.

Central Bank of India reported Rs 2,565 crore divergence in Net Non-Performing Assets, where RBI assessed a net NPA of Rs 13,898.24 crore as against Rs 11,333.24 crore reported by the bank as on 31 March 2019. Shares of the state run bank were currently trading 1.76% lower at Rs 22.35.

On 15 November 2019, SC set aside the National Company Law Appellate Tribunal (NCLAT) judgement, saying the ultimate discretion on distribution of funds would be with the Committee of Creditors (CoC) which was completely favorable to lenders. The Committee of Creditors (CoC) consists of banks.

NCLAT had ordered that the operational creditors should be treated on par with the financial creditors.

SC, however, held that it is the bank's decision to maximize the value of the corporate debtor and added that the CoC should also balance the interests of all stakeholders. NCLT cannot interfere with the commercial decisions taken by the CoC, the apex court said.

Stocks in Spotlight:

Ultratech Cement rose 0.22% to Rs 4109. The company is considering a proposal to raise funds by issuance of 2,500 rated, listed, non-convertible, redeemable, unsecured NCDs of Rs. 10 lakh each aggregating to Rs. 250 crore on private placement basis, including the terms and conditions of the issue, on or after 22nd November, 2019.

Foreign Markets:

Overseas, Asian stocks were trading lower in the absence of progress in US-China trade talks. U.S. stocks closed mostly lower Tuesday, with the Dow and S&P 500 retreating from records, on disappointing earnings results and doubts about a U.S. - China trade deal. The Nasdaq, however, notched a record finish on the strength of technology shares.

The United States would raise tariffs on Chinese imports if no deal is reached with Beijing to end a trade war, U.S. President Donald Trump reportedly said on Tuesday, threatening an escalation of the spat that has damaged economic growth worldwide.

In U.S. economic data, U.S. home building rose in October and permits for future home construction jumped to a 12-year high. Housing starts increased 3.8% to a seasonally adjusted annual rate of 1.314 million units last month. Housing starts rose 8.5% on a year-on-year basis in October.

Powered by Capital Market - Live News

Also Read

First Published: Nov 20 2019 | 11:23 AM IST

Next Story