The benchmark indices were trading with small losses in early afternoon. Auto shares were in demand. At 12:20 IST, the barometer index, the S&P BSE Sensex, skid 78.31 points or 0.18% at 43,874.40. The Nifty 50 index fell 32.25 points or 0.25% at 12,841.95. Both the benchmarks corrected after rising in the past three sessions.
In the broader market, the S&P BSE Mid-Cap index rose 0.66% while the S&P BSE Small-Cap index gained 0.52%.
The market breadth was positive. On the BSE, 1,317 shares rose and 1,195 shares fell. A total of 191 shares were unchanged.
Lakshmi Vilas Bank under Moratorium:
Lakshmi Vilas Bank hit a lower circuit of 20% at Rs 12.40 after the central government on Tuesday (17 November 2020) placed the cash-strapped bank under moratorium for a period of one month.
The bank's customers will be able to withdraw only Rs 25,000 from their accounts till 16 December 2020. T N Manoharan, former non-executive chairman of Canara Bank, has been appointed as the administrator of Lakshmi Vilas Bank (LVB).
Further, the Reserve bank of India (RBI) has invited comments on its draft merger scheme between LVB and with DBS Bank India (DBIL). DBIL is a wholly owned subsidiary of Singapore-based DBS Bank, which in turn is a subsidiary of Asia's leading financial services group, DBS Group Holdings. It has been issued a banking license to operate as banking company on 4 October 2018.
DBIL has a healthy balance sheet, with strong capital support. Although the DBIL is well capitalised, it will bring in additional capital of Rs 2,500 crore upfront, to support credit growth of the merged entity. Owing to comfortable level of capital, the combined balance sheet of DBIL would remain healthy after the proposed amalgamation, with CRAR at 12.51% and CET-1 capital at 9.61%, without considering the infusion of additional capital, the central bank said in a statement.
LVB posted a net loss of Rs 397 crore in Q2 September 2020 as compared to a net loss of Rs 357.18 crore in Q2 September 2019. Total income fell 25.7% year on year to Rs 494.58 crore in Q2 September 2020 over Q2 September 2019.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 5,56,24,562 with 13,38,106 deaths. India reported 4,46,805 active cases of COVID-19 infection and 1,30,993 deaths while 83,35,109 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 1.59% to 19.4875. The Nifty November 2020 futures were trading at 12,852, at a premium of 7.20 points compared with the spot at 12,844.80.
The Nifty option chain for 26 November 2020 expiry showed maximum Call OI of 20.94 lakh contracts at the 13,000 strike price. Maximum Put OI of 30.34 lakh contracts was seen at 12,000 strike price.
Buzzing Index:
The Nifty Auto index gained 1.25% to 8,530.55. The index has added 10.32% in twelve sessions.
Mahindra & Mahindra (M&M) (up 6.23%), Tata Motors (up 5.16%), Motherson Sumi Systems (up 4.13%), Balkrishna Industries (up 2.32%) and Ashok Leyland (up 1.14%) were the top gainers in Auto segment.
Stocks in Spotlight:
Indian Railway Catering and Tourism Corporation (IRCTC) declined 1.40% after the company announced cancellation of two Tejas Express trains.
Earlier on 7 October 2020, IRCTC had announced its plan to restart the operations of Tejas trains. The company on Tuesday (17 November) announced that it has cancelled two Tejas Express trains due to low occupancy levels resulting from COVID-19 pandemic.
The company cancelled Lucknow-New Delhi Tejas Express from 23 November 2020 and Ahemdabad-Mumbai Tejas Express from 24 November 2020. IRCTC said the position will be reviewed after seeing the occupancy of Indian Railways on these sectors in future.
Tata Steel slipped 1.68% after HDFC mutual fund reduced its stake in the steel major to 2.96% on 12 November 2020 from 5.02% held earlier. On 12 November 2020, HDFC mutual fund sold 1.98 crore equity shares (2.06% equity) of Tata Steel. The transaction has taken place in open market.
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