Key equity indices extended losses and hit fresh intraday low in mid-morning trade. At 11:29 IST, the barometer index, the S&P BSE Sensex, was down 84.71 points or 0.19% at 43,868. The Nifty 50 index was down 33.55 points or 0.26% at 12,840.65.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index gained 0.32% while the S&P BSE Small-Cap index rose 0.40%.
The market breadth was positive. On the BSE, 1254 shares rose and 1161 shares fell. A total of 176 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 Ltd. (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 2500 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 taking into account 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 55,562,616 with 1,337,343 deaths.
India reported 446,805 active cases of COVID-19 infection and 130,993 deaths while 8,335,109 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
The Nifty FMCG index fell 1.13% to 30,939.20. The index advanced 0.22% yesterday.
ITC (down 1.97%), Marico (down 1.49%), Hindustan Unilever (down 1.28%), Britannia Industries (down 1%) and Dabur India (down 0.88%) declined while Varun Beverages (up 1.82%) and Jubilant Foodworks (up 0.80%) bucked the trend.
Stocks in Spotlight:
Larsen & Toubro (L&T) jumped 4.96% to Rs 1134.85 after the company said its construction and mining equipment business has secured an order from Tata Steel to supply 46 units of Komatsu mining equipment.
DLF shed 0.45% to Rs 187.35. The realty major said it has been recognised as an index component of the Dow Jones Sustainability Indices (DJSI) in Emerging markets category. While DLF is the only real estate company from India to be included in the DJSI index, it joins the ranks of just 11 companies from India to be recognised for the benchmark for corporate sustainability. "This recognition demonstrates DLF's track record for its governance, social and environmental initiatives," the realty major said after market hours yesterday, 17 November 2020.
Global Markets:
Asian stocks advanced on Wednesday as the euphoria from vaccine trial breakthroughs offset the concerns over rising coronavirus cases and fresh lockdowns.
The US stocks corrected on Tuesday, giving back ground a day after the S&P 500 and Dow Jones Industrial Average closed at records in a rally fuelled by progress toward a Covid-19 vaccine.
However, worries about the near-term economic outlook also appeared to weigh on the market as investors tracked a surge in Covid-19 infections and slowing retail sales growth.
Data showed that October US retail sales rose 0.3% in October, confirming the weakest rise in six months. In other economic data, industrial production rose 1.1% in October, the Federal Reserve reported. Capacity utilization rose to 72.8% in October from 72% in September.
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