"If the margins are above 3.3% in February we will pass the benefit to customers:" Union Bank of India CMD
A day after SBI (State Bank of India) reduced rates on education loans, Union Bank of India said it may cut interest rates on home and education loans next month.
"If NIM (net interest margin) continues to hold strong, we may reduce rates especially on the retail sides like home loan and education loan," Union Bank of India chairman and managing director MV Nair said. At the end of December, the NIM was 3.3%, he said, adding, "if the margins are above 3.3% in February we will pass the benefit to customers."
The Mumbai-based public sector bank will review rates next month. SBI has already reduced interest rates on education loans by up to 1%.
The downward momentum has probably been contained. Watch for a close above 5,450 and 5,350 on the Nifty for short-term direction
The market opened on a positive note but lost its momentum as lower growth for the third quarter resulted in a sell-off in the second half of trade. We mentioned in out market closing report yesterday that Tuesday’s gains were not a sign of a reversal. For a reversal, the Nifty has to end well above the day’s close. The National Stock Exchange (NSE) saw a volume of 97.23 crore shares.
The market witnessed a firm opening on global cues and news that the government would divest 5% stake in state-owned explorer ONGC on Thursday. On the international front, the European Central Bank (ECB) is likely to offer cheap funds to banks in the continent, which are facing liquidity issues. Back home, the Nifty opened at 5,425, up 49 points over its previous close, and the Sensex surged 189 to resume trade at 17,920.
Across-the-board buying by institutional investors helped the market extend its gains and hit the day’s highs in early trade. At the highs, the Nifty touched 5,459 and the Sensex rose to 18,001. However, the indices were under pressure in subsequent trade ahead of the release of the gross domestic product (GDP) numbers for the December quarter.
GDP for the December 2011 quarter coming in at an over two-year low of 6.1% resulted in the benchmarks paring their gains. The market dipped into the red in post-noon trade as selling became intense. The market fell to the day’s lows a little after 1.30pm with the Nifty going down to 5,352 and the Sensex at 17,678.
The market recovered from the lows but was treading water in the last hour in the absence of any triggers. The market closed flat with a positive bias and in the green for the second day. The Nifty added 10 points to settle at 5,385 and the Sensex rose 22 points to finish the session at 17,753.
The advance-decline ratio on the NSE was 968:729.
Among the broader indices, the BSE Mid-cap index advanced 1.10% and the BSE Small-cap index gained 0.62%.
BSE Realty (up 5.91%); BSE Capital Goods (up 4.02%); BSE Bankex (up 3.93%); BSE Power (up 3.57%) and BSE Metal (up 3.43%) were the top sectoral gainers while BSE IT (down 0.56%) and BSE Fast Moving Consumer Goods (down 0.13%) were the losers.
Boosted by the ONGC stake sale news, the BSE Oil & Gas index (up 2.53%) was the top sectoral gainer today. Other gainers were BSE PSU (up 1.51%); BSE Metal (up 1.45%); BSE Realty (up 1.10%) and BSE Consumer Durables (up 0.66%). The losers were BSE Capital Goods (down1.59%); BSE Fast Moving Consumer Goods (down 0.72%) and BSE Bankex (down 0.59%).
ONGC (up 3.46%); Sterlite Industries (up 2.98%); Tata Steel (up 2.90%; Reliance Industries (up 2.84%) and Wipro (up 2.72%) were the best performing stocks on the Sensex. The laggards were led by Larsen & Toubro (down 2.91%); HDFC Bank (up 2.34%); Jindal Steel (down 1.81%); ITC (down 1.35%) and Hero MotoCorp (down 1.07%).
The Nifty toppers were SAIL (up 3.76%); ONGC (up 3.46%); Wipro (up 3.18%); Sesa Goa (up 3.12%) and Tata Power (up 2.99%). The key losers were L&T (down 3.28%); HDFC Bank (down 2.81%); Siemens (down 2.28%); Jindal Steel (down 1.62%) and Reliance Infrastructure (down 1.50%).
Markets in Asia, with the exception of the Chinese benchmark, settled in the positive on hopes that the new fund infusion by the ECB would help ease the liquidity crunch faced by European banks. The Shanghai Composite closed lower after the government reiterated its plan to keep a tab on realty prices.
The Hang Seng gained 0.52%; the Jakarta Composite jumped 2.09%; the KLSE Composite rose 0.83%; the Nikkei 225 added 0.01%, the Straits Times climbed 0.82%; the Seoul Composite advanced 1.33% and the Taiwan Weighted surged 2.04%. On the other hand, the Shanghai Composite declined 0.95%. At the time of writing, two of the three key European indices were in the green while the US stock futures were in the positive.
Back home, foreign institutional investors were net buyers of shares totalling Rs727.59 crore while domestic institutional investors were net sellers of stocks aggregating Rs587.21 crore on Tuesday.
AstraZeneca Pharma India today said it is undertaking voluntary recall of sterile products manufactured at its Bangalore facility. “This recall is a purely voluntary action on the part of the company taken as a measure of extra and abundant caution although there is no patient safety issue related to sterility,” the company said in a filing to the exchanges. The stock jumped 7.26% to close at Rs1,921 on the NSE today.
Sun Pharmaceutical Industries today said it has received approval from the US health regulator for its generic Zyprexa Zydis tablets, used in treating mental disorder, in the American market. The US Food and Drug Administration (USFDA) has granted approval for its abbreviated new drug application (ANDA) for generic version of Zyprexa Zydis, Olanzapine ODT, in strengths of 5 mg, 10 mg, 15 mg and 20 mg, Sun Pharma said in a statement. The stock rose 0.85% to close at Rs551 on the NSE.
Cement major ACC will set up a new clinker production facility of 2.79 million tonnes per annum and allied grinding facility at Jamul in Durg district of Chhattisgarh, phasing out the existing clinkering and grinding lines there. The new plant will help meet the demand for cement in the eastern region. The stock gained 1.42% to close at Rs1,307 on the NSE.
Wheat exports from India, the world’s second-biggest producer, is expected to more than double to 1.5 million tonnes (MT) in the 2012-13 marketing year on account of back-to-back record harvest, according to the US Department of Agriculture
New Delhi: Wheat exports from India, the world’s second-biggest producer, is expected to more than double to 1.5 million tonnes (MT) in the 2012-13 marketing year on account of back-to-back record harvest, reports PTI quoting the US Department of Agriculture (USDA).
“Assuming the current export price parity for Indian wheat compared to other origins, 2012-13 marketing year wheat exports are forecast at 1.5 MT,” the report said.
In the 2011-12 marketing year (April-March), wheat shipments are estimated to touch only 7,00,000 tonnes because prices remained very uncompetitive in the global market since exports were allowed in September 2011, it said.
Wheat export prospects can improve if there is a sharp increase in global prices, it said adding that the actual export volumes will depend on the competitiveness of Indian wheat during the marketing year.
Due to the considerable delay in the decision to allow wheat export, India could not take advantage of high global wheat prices in the early part of this year, the USDA said quoting market sources.
In 2012-13, the USDA mentioned that wheat exports will mostly be “limited to private exports” to neighbouring Bangladesh, the Middle East, Africa and South Asia.
Pointing out that the Indian government will be under tremendous pressure of inadequate storage facilities for the new wheat crop, the USDA said: “The government is unlikely to subsidise exports of government wheat due to local political and World Trade Organisation commitment concerns.
“India has sufficient domestic supplies to export 5-6 MT of wheat, especially if the government allows export of government wheat in case international prices exceed total cost,” it observed.
The cost of government wheat is prohibitively high at $346 a tonne compared to current global prices, it added.
Due to record procurement this year, stocks in government godowns as on 1 April 2012 are forecast higher at 18.5 Mt compared with 15.36 MT in the same period of 2011. Thus, the ending stocks in 2011-12 are nearly three times the government’s desired stocks of 7 MT, the report said.
According to the USDA, the government’s wheat procurement is expected to be over 32 MT in 2011-12 marketing year due to record production and higher support price.
Wheat production is estimated to be bumper at 87.5 MT this year, higher than consumption of 85 MT, it added.