Key benchmark indices saw a gap-down opening on weak global cues. At 9:25 IST, the barometer index, the S&P BSE Sensex was down 170.79 points or 0.66% at 25,602.82. The Nifty 50 index was currently down 49.05 points or 0.62% at 7,841.70. Investors in emerging markets, including India are worried that the likely rate hike by US Fed will drain liquidity from global emerging markets and redirect it to developed economies.
In overseas markets, Asian stocks were trading lower following an overnight decline in US stocks. US stocks dropped yesterday, 17 May 2016 after Federal Reserve officials implied that interest rates could be raised as early as June. As per reports, Atlanta Fed President Dennis Lockhart and San Francisco Fed President John Williams said the Fed's decision on whether to raise rates at the June 14-15 meeting hinges on the data. However, June certainly could be a meeting at which action could be taken, Lockhart reportedly said. Dallas Fed President Robert Kaplan, seen as a hawk, said he will push for an interest rate hike in June or July. The officials were attending a lunch sponsored by the news site.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 646 shares fell and 486 shares rose. A total of 51 shares were unchanged. The BSE Mid-Cap index was currently off 0.28%. The BSE Small-Cap index was currently off 0.03%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
State Bank of India (SBI) fell 0.97%. State Bank of Bikaner and Jaipur rose 4.06%. State Bank of Mysore jumped 14.86%. State Bank of Travancore surged 10.5%. SBI announced that it is seeking "in principle sanction" of the Government of India (GoI) to enter into negotiation with the subsidiary banks viz. State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, and Bharatiya Mahila Bank to acquire their businesses including assets and liabilities. While the decision is purely exploratory at this stage and there is no certainty in relation to SBI completing the acquisitions, the bank, as a matter of good corporate governance to ensure complete transparency, is intimating this decision, SBI said. No decision has been taken at this stage approving one or more of the aforesaid acquisitions and the same will be taken by the bank's board upon evaluating all the relevant considerations, including pursuant to discussions with relevant stakeholders, upon and subject to receipt of sanction from GoI, SBI said. The announcement was made after market hours yesterday, 17 May 2016.
Axis Bank slipped 0.39%. The bank kept its lending rates based on marginal cost of funds unchanged effective from 18 May 2016. The bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.95%, the rate for one month will be 9.05% and for three months it will be 9.25%. The MCLR on 6-month loans will be 9.3% and for one-year loans the rate will be 9.35%, the bank said. MCLR on two-year loans will be 9.45% and for three-year loans the rate will be 9.5%. The announcement was made after market hours yesterday, 17 May 2016.
All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.
TCS shed 0.47%. TCS announced after market hours yesterday, 17 May 2016, that IDBI Bank's financial services arm IDBI Capital Market Services has gone operational with the securities trading and processing solution from TCS BaNCS for its online brokerage business.
Nestle India slipped 0.35% after turning ex-dividend today, 18 May 2016 for final dividend of Rs 18.50 per share for the year ended 31 December 2015 (FY 2015). The stock also turns ex-dividend today, 18 May 2016 for interim dividend of Rs 12 per share for the year ending 31 December 2016 (FY 2016).
GlaxoSmithkline Consumer Healthcare lost 2.97% after net profit fell 8.18% to Rs 180.68 crore on 8.51% decline in total income to Rs 1166.40 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 17 May 2016.
Punjab National Bank declined 1.22% ahead of its Q4 March 2016 results today, 18 May 2016.
Powered by Capital Market - Live News
