The Indian market is likely to see a tepid opening today on unsupportive global cues. Markets in the US ended lower on renewed concerns over the European debt issues, threatening to derail the economic recovery. The declined was also weighed down by the strengthening dollar against other key currencies. Asian markets were mostly in the red this morning on global concerns and a rise in the dollar. The SGX Nifty was up 16.50 points at 6,317 against its previous close of 6,300.50.
The domestic market opened in the green on Monday riding on last week's festive euphoria. However, investors took the opportunity to book profits at higher levels, dragging the key indices into the red in morning trade. The market fell to the day's lows in the afternoon session and traded in a narrow range after making a feeble recovery attempt. It ended marginally above the low point of the day but below the levels seen late last week. The Sensex closed 152.58 points (0.73%) lower at 20,852, below its new all-time closing high of 21,005 on Friday while the Nifty settled at 6,273, down 39.25 points (0.62%), below its all-time closing high of 6,312 achieved on Friday.
Wall Street closed lower overnight after splendid gains seen last week. Renewed concerns over debt issues troubling European nations and a rise in the dollar were seen as the mains reasons for the decline. Analysts opine that the Group of Twenty (G20) meeting, to be held in South Korea on Thursday and Friday, will be the next driver in moving the dollar.
The Dow slipped 37.24 points (0.33%) at 11,407. The S&P 500 shed 2.60 points (0.21%) at 1,223. The Nasdaq inched 1.07 points (0.04%) higher at 2,580.
Markets in Asia were mostly lower in early trade on Tuesday tracking the weak US markets that were weighed down by fresh worries about the debt crisis in Ireland, Portugal and Spain.
The Shanghai Composite was down 0.43%, the Hang Seng tanked 0.75%, Nikkei 225 declined 0.41%, Straits Times shed 0.27%, Seoul Composite was down 0.13% and Taiwan Weighted lost 0.06%. Bucking the trend, the KLSE Composite gained 0.10% in early trade.
The MCX Stock Exchange (MCX-SX) on Monday said it has filed a writ petition in the Bombay High Court challenging market regulator the Securities and Exchange Board of India's (SEBI) order rejecting the bourse's plea to be allowed to function as a full-fledged stock exchange.
The petition was filed on 29th October in relation to the SEBI order of 23rd September, where the regulator rejected MCX's application made by MCX-SX for approval to commencement of its equity, F&O, WDM and other segments and products, the exchange said in a statement.
The petition of MCX-SX is expected to be taken up for admission after court vacation
New Delhi: The State Bank of India (SBI), the country's largest lender, today reported a 22.2% decline in consolidated net profit to Rs2,437.10 crore for the second quarter ended 30 September 2010. The Bank had a net profit of Rs 3,133.10 crore in the year-ago period, it said in a statement to the Bombay Stock Exchange, PTI reports. The decline was due to increased provisioning for bad loans.
On a standalone basis, SBI's net profit grew by just 0.4% to Rs2,501.30 crore in the second quarter, against Rs2,490 crore in the year-ago period. Standalone income increased to Rs23,813.30 crore in the quarter under review from Rs21,301 crore, a growth of 11.7%.
SBI's total income, however, increased by 14.6% to Rs37,925.40 crore in the July-September quarter from Rs33,101.6 crore in the corresponding previous quarter. The Bank posted a net profit after minority interest of Rs2,363.90 crore in the period, compared to Rs3,050.90 crore in the corresponding period last year.
According to the statement, the lender has increased provisions for non-performing assets by 96% to Rs2,160 crore. The provision ratio widened to 62.78% as of 30 September from 60.70% as of 30 June. The Reserve Bank of India in October 2009 said it would require banks to increase the minimum provision ratio to 70% from 10%.
Gross non-performing assets climbed 34% from a year earlier to Rs23,200 crore as of 30 September, partly due to the inclusion of State Bank of Indore's Rs854 crore in bad loans, the Bank said. SBI acquired State Bank of Indore with effect from 26 August 2010 and the results include the operations of State Bank of Indore for the period to 30 September and are therefore not comparable.
The State Bank of India stock price fell 1.9% to Rs3,422.65 at the close of trading today, before the results were announced. The stock has gained 51% and is the second-best performer for the quarter among the 14 Indian lenders tracked by the Bankex index.
Despite the BSE clearing the listing of the stock in July last year, SEBI has not yet given its nod and has not shed any light on the matter to the worried investors
It has been a long ordeal for investors in Raheja group promoted Innovassynth Investments Limited (IIL), a company that is still awaiting approval for listing from the Securities and Exchange Board of India (SEBI) more than a year after filing necessary documents with the regulator. Even after an RTI application, SEBI continues to sit on the fence, refusing to give any clarity on the matter to concerned investors.
The company was to get listed in 2009. The Bombay Stock Exchange (BSE) apparently even cleared this listing in July 2009 with the condition that SEBI approval be taken as the listing would be without an initial public offering (IPO). IIL applied for permission from SEBI on 22 July 2009, but has not yet received the go-ahead from the regulator. It remains a mystery as to why SEBI has delayed action on this matter. Moneylife understands that SEBI has been raising queries with the company on certain issues. The company in turn claims that all of these have been answered and is pursuing the matter with the regulator. However, there is no mention as to the nature of these queries either on the SEBI website or on the company's portal.
It is not clear why SEBI is not moving fast enough to get the stock listed on the stock exchange. Meanwhile, investors are crying foul over the issue of equity capital by unlisted associate company Innovassynth Technologies (India) Limited (ITIL). The main purpose for forming IIL was to take over or acquire the equity shares of ITIL from Futura Polyesters Limited (FPL) under a Scheme of Arrangement to be entered into by FPL and IIL with its shareholders. Initially, FP was to transfer its entire shareholding in ITIL to the shareholders of FP at a ratio of 10:23, where shareholders of FP would get shares in ITIL in the ratio of their holdings.
However, under the revised Scheme of Arrangement, which received approval of shareholders of both FPL and IIL and was sanctioned by the High Court on 4 July 2008, FP would first transfer its entire investment in ITIL to IIL. In consideration of the above transfer, IIL would allot its equity shares of the face value of Rs10 each to the shareholders of FPL in the proportion of 5 equity shares in IIL against every 11 equity shares held in FPL. The Scheme also envisaged that IIL will, after allotment of its equity shares, approach the BSE for listing its shares along with its existing shares, subject to applicable regulations and approvals.
With SEBI refusing to budge over the listing of IIL's stock, investors are now stuck with a company that is possibly being subjected to manipulation behind the scenes.