We had mentioned in Monday’s closing report that Nifty, Sensex were trying to find a bottom for a short-term bounce. The major indices of the Indian stock markets suffered a sharp correction on Tuesday and closed with losses over Monday’s close. On the NSE, there were 472 advances, 1,267 declines and 328 unchanged. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
The key Indian equity indices closed in the negative territory for the second successive day on Tuesday, with the S&P BSE Sensex losing close to 300 points.
The NSE Nifty50 also dropped nearly 100 points to end below the 11,300 mark, after global markets fell on the announcement of fresh US tariffs on Chinese imports. Sector-wise, selling pressure was witnessed in banking, auto and capital goods counters.
The State Bank of India (SBI) has put eight non-performing assets (NPAs), or bad loan accounts, on sale to recover over Rs3,900 crore with the e-bidding auction process slated for later this month. In a notification last week, SBI asked interested asset reconstruction companies (ARCs) and financial institutions to conduct the due diligence of the listed accounts which cumulatively owe the bank over Rs3,900 crore. The NPA accounts up for sale include Rohit Ferro Tech with the highest outstanding loan of Rs1,320.37 crore, Indian Steel Corporation (Rs928.97 crore), Jai Balaji Industries (Rs 859.33 crore), Mahalaxmi TMT (Rs409.78 crore) and Impex Ferro Tech (Rs200.67 crore). The other defaulters' assets up for sale are Kohinoor Steel (Rs110.17 crore), Modern India Concast (Rs71.16 crore) and Ballarpur Industries (Rs47.17 crore). State Bank of India shares closed at Rs273.60, down 4.10% on the NSE.
Following up on government announcement on Monday about the proposed amalgamation of Bank of Baroda (BoB), Vijaya Bank and Dena Bank into the country's third-largest bank, BoB Managing Director P.S. Jayakumar said it may happen in four to six months. "Going by past practices, the merger may take four to six months. It can be speeded up also...it depends," Jayakumar told reporters. The envisaged amalgamation will be the first-ever three-way consolidation of banks in India, with a combined business of Rs14.82 lakh crore. The combined entity will have a net NPA ratio at 5.71%, better than public sector banks (PSB)'s average of 12.13%. "With the benefit of scale working in, with greater distribution and more opportunities for products for costumers etc., a reasonable assumption is that there will be good opportunity to come but it is something that will happen in due course," he said. The boards of the three state-run banks are expected to meet shortly and consider the government's proposal and decide the merger ratio and other details of the scheme of amalgamation. The government's shareholding will be as per the merger ratio. Bank of Baroda shares closed at Rs112.20, down 17.04% on the NSE.
Reliance Communications (RCOM) Chairman Anil Ambani on Tuesday said the company's subsidiary Reliance Realty would develop Dhirubhai Ambani Knowledge City (DAKC) to create 30 million square feet of commercial space. Reliance Realty owns and operates DAKC, a 133-acre registered IT park in Navi Mumbai. Reliance Communication shares closed at Rs16.10, down 6.12% on the NSE.
Strides Shasun’s formulations facility in Bangalore recently underwent pre-approval product inspection by the US FDA (US Food and Drug Administration) which ended on August 25, 2018. It has been issued a Form 483 with 3 observations. Strides Pharma Science Limited closed at Rs500.50, down 1.60% on the NSE.
Indian Hume Pipe has received Letter of Acceptance worth Rs221.72 crore from Madhya Pradesh Jal Nigam Maryadit for an EPC and O&M project of Indwar-I Multi Village Rural Water Supply Scheme on 'Turn-key job basis' for a period of 10 years. Indian Hume Pipe Company closed at Rs276.95. up 2.40% on the NSE.
Aurobindo Pharma has received approval from the South African Health Products Regulatory Authority (SAHPRA) for its Dolutegravir, Lamivudine and Tenofovir Disoproxil Fumarate (DLT) tablets, the first-line preferred regimen for HIV patients as per latest WHO guidelines. Aurobindo Pharma shares closed at Rs779.00, down 1.32% on the NSE.
The construction arm of Larsen & Toubro has won orders worth Rs2,048 crore across two business segments. The Power T&D business has secured Rs1,633 crore. The Water & Effluent business has won an order worth Rs415 crore from Tamil Nadu Water Supply & Drainage Board. Larsen & Toubro shares closed at Rs1,330.00, down 1.10% on the NSE.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: