 "BSE PSU index hits 21-month low")
Shares of public sector undertaking (PSUs) continued to witness selling pressure with the S&P BSE PSU Index hitting 21-month low after most the frontline PSU companies trading at their multi-months low on the BSE.
At 11:55 a.m. S&P BSE PSU index was down 2.8% at 5,945 points as compared to 1.9% decline in S&P BSE Sensex.
The PSU index hit an intra-day low of 5,944, its lowest level since March 25, 2014. It dipped nearly 30% from its 52-week high of 8,440 touched on January 1, 2015.
Most of the PSU banks include State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB), Bank of India (BOI), Canara Bank, Corporation Bank, Indian Bank, Indian Overseas Bank and Dena Bank are trading at their multi-months lows.
According to Business Standard report, analysts expect margins of banks to contract as they will now have to pass on the changes RBI makes by cutting their interest rates. In the past, banks have not transmitted the interest rate cuts announced by the central bank but have reduced deposit rates, thus pocketing incremental profits. But with the new norms, the banks will have to cut interest rates in line with the deposit rates, which will impact their margin. CLICK HERE TO READ FULL REPORT.
PSU banks, will report lackluster credit growth due to high reliance on corporate loans, weak capital position and a guarded approach underpinned by prevailing asset quality issues, said the broking firm India Infoline in Q3 results preview.
According to Prabhudas Lilladher, the PSU banks are likely to remain under pressure due to the slippages of assets to non performing assets (NPA) from the restructured book and the pressure the commodity companies are undergoing.
Coal India, Oil and Natural Gas Corporation (ONGC), Power Finance Corporation (PFC), Rural Electrification Corporation (REC), NMDC and Steel Authority of India (SAIL) are non-banking PSU stocks quoting at 52-week low.
Coal India would continue to report impressive growth in volumes in Q3 as well. However, e?auction prices have stayed lower and would reduce the impact of higher volumes on topline. NMDC would report a sharp fall in topline due to lower volumes and a plunge in iron ore prices, according to India Infoline.
ONGC is expected to report drop in earnings due to lower crude oil prices albeit depreciating exchange rate which will provide support. Meanwhile, lower subsidies are also expected to cushion downfall, said Prabhudas Lilladher in results preview.
At 11:55 a.m. S&P BSE PSU index was down 2.8% at 5,945 points as compared to 1.9% decline in S&P BSE Sensex.
The PSU index hit an intra-day low of 5,944, its lowest level since March 25, 2014. It dipped nearly 30% from its 52-week high of 8,440 touched on January 1, 2015.
Most of the PSU banks include State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB), Bank of India (BOI), Canara Bank, Corporation Bank, Indian Bank, Indian Overseas Bank and Dena Bank are trading at their multi-months lows.
According to Business Standard report, analysts expect margins of banks to contract as they will now have to pass on the changes RBI makes by cutting their interest rates. In the past, banks have not transmitted the interest rate cuts announced by the central bank but have reduced deposit rates, thus pocketing incremental profits. But with the new norms, the banks will have to cut interest rates in line with the deposit rates, which will impact their margin. CLICK HERE TO READ FULL REPORT.
PSU banks, will report lackluster credit growth due to high reliance on corporate loans, weak capital position and a guarded approach underpinned by prevailing asset quality issues, said the broking firm India Infoline in Q3 results preview.
According to Prabhudas Lilladher, the PSU banks are likely to remain under pressure due to the slippages of assets to non performing assets (NPA) from the restructured book and the pressure the commodity companies are undergoing.
Coal India, Oil and Natural Gas Corporation (ONGC), Power Finance Corporation (PFC), Rural Electrification Corporation (REC), NMDC and Steel Authority of India (SAIL) are non-banking PSU stocks quoting at 52-week low.
Coal India would continue to report impressive growth in volumes in Q3 as well. However, e?auction prices have stayed lower and would reduce the impact of higher volumes on topline. NMDC would report a sharp fall in topline due to lower volumes and a plunge in iron ore prices, according to India Infoline.
ONGC is expected to report drop in earnings due to lower crude oil prices albeit depreciating exchange rate which will provide support. Meanwhile, lower subsidies are also expected to cushion downfall, said Prabhudas Lilladher in results preview.
| Price on BSE in Rs | |||
| Name | LTP | 1 year high | % chg |
| Bank of India | 91.30 | 306.00 | -70.2 |
| Oriental Bank | 104.00 | 341.00 | -69.5 |
| Canara Bank | 171.35 | 478.40 | -64.2 |
| Allahabad Bank | 50.40 | 132.50 | -62.0 |
| Indian Bank | 88.75 | 217.80 | -59.3 |
| IOB | 25.30 | 61.75 | -59.0 |
| UCO Bank | 35.80 | 83.60 | -57.2 |
| United Bank (I) | 18.65 | 43.10 | -56.7 |
| Union Bank (I) | 111.30 | 253.50 | -56.1 |
| BHEL | 137.65 | 299.50 | -54.0 |
| Orissa Minerals | 1653.25 | 3523.50 | -53.1 |
| Corporation Bank | 37.35 | 78.90 | -52.7 |
| ITDC | 160.80 | 330.20 | -51.3 |
| Central Bank | 62.00 | 121.00 | -48.8 |
| SAIL | 40.85 | 79.50 | -48.6 |
| Punjab & Sind Bank | 34.10 | 66.20 | -48.5 |
| Andhra Bank | 50.15 | 95.15 | -47.3 |
| Bank of Baroda | 120.85 | 228.90 | -47.2 |
| Syndicate Bank | 70.85 | 132.00 | -46.3 |
| HMT | 40.20 | 73.85 | -45.6 |
| NMDC | 81.55 | 146.15 | -44.2 |
| Bharat Immunolog | 24.50 | 43.30 | -43.4 |
| RCF | 42.35 | 74.75 | -43.3 |
| MTNL | 17.50 | 30.85 | -43.3 |
| ONGC | 212.05 | 373.70 | -43.3 |
| PTC India | 58.00 | 101.90 | -43.1 |
| FACT | 20.50 | 36.00 | -43.1 |
| Dena Bank | 34.85 | 60.70 | -42.6 |
| IDBI Bank | 54.95 | 95.70 | -42.6 |
| Vijaya Bank | 30.00 | 51.50 | -41.7 |
| Oil India | 337.55 | 564.65 | -40.2 |
| STC | 132.00 | 220.40 | -40.1 |
| List of stocks fallen over 40% from their 1-year high | |||
| LTP : Last traded price in Rs at 12 p.m. | |||
| Source: BSE/CapitalinePlus | |||
