Category Archives: Banking

Indian Stock Market Gains; PSB Gains 10%

Indian Stock Market closed higher on Tuesday after US managed to escape the fiscal cliff for the moment. BSE Sensex closed 154 points higher at 19580 and NSE Nifty closed 46 points higher at 5950. Next major resistance for NSE Nifty is 6000.

Among European markets, CAC was up yesterday while FTSE and DAX closed lower. US Markets are expected to remain positive in the start of New Year 2013. Markets closed with decent gains with Dow Jones gaining 1.28% and Nasdaq closing 2 per cent higher.

Punjab & Sind Bank gained 10% in today’s session after the bank announced that the board has approved the plan to raise Rs 1000 crore. The stock touched intraday high of Rs 81.75 on NSE and closed Rs 8.10 higher.

Among other major gainers were Reliance Infra, Jindal Steel, Hindalco and PNB. Among banking counters ICICI Bank, Bank of Baroda, HDFC Bank and Axis Bank closed positive.

Power Grid, NTPC, Infosys Technologies and Asian Paints were among major losers in today’s trade.

Indian currency gained smartly compared to USD. USD was down by 31 paisa at 54.68. Euro-INR was trading at 72.28.

Indian Market Closes Marginally Lower; Metal Stocks Shine

Indian Stock Market closed marginally lower after hovering in negative territory for the trading session. European markets closed marginally higher compared to previous closing. BSE Sensex was down by 22 points at 19453 during the closing bell.

USD gained further ground compared to Indian currency. USD-INR was trading at 54.85. Euro was also trading strong at 72.81. Euro is near its all time high compared to Indian currency.

Among major gainers in today’s session were metal stocks. Hindalco gained 2.35% to close at Rs 132. Jindal Steel gained 2.2%. Tata Steel was also higher by 1.77% at Rs 431.

Major losers included Ambuja Cements, Sun Pharma, BPCL and Jaiprakash Associates.

Among major companies, Reliance, ONGC, ITC and Coal India closed flat. TCS gained Rs 19.4 to close the day at Rs 1252.

The banking amendment bill received final approval in the parliament today. BJP has retained similar number of seats in Gujarat. Congress won 36 seats in Himachal Pradesh.

Nifty Below 5500; Sensex Declines 202 Pts

Decline in manufacturing figures in US, Europe and China hit investor opinion all over the world.

The benchmark Sensex lost 200 points with rate sensitive stock such as banking, real estate and capital goods taking a beating.

The 50-share NSE Nifty was ruling at 5,455 after slipping 62 points whereas the 30-share index BSE Sensex declined 202 points to trade at 18,112 late morning trade.

As per portfolio manager PN Vijay, worldwide events would be the vital factor for market by the next six months.

“There may be a slightly negative backdrop but substantially the action has to come within India.”

Technology scrips saw selling pressure as retardation will absolutely have impact on exports of these firms.

Infosys, TCS and Wipro shed between 1% & 2%.

Heavyweight stocks like Bharti Airtel, ITC, L&T, SBI, ICICI Bank and HDFC Bank dropped between 1% & 2%. Reliance Industries shed more than 0.5%.

But, Sun Pharma, NTPC, HUL, Cipla, Ranbaxy and GAIL topped the gainers’ charts on Nifty.

On the worldwide front, Asian bourses broadened losses – Kospi was the key loser, declining 2.4%.

Shanghai, Nikkei, Straits Times and Taiwan remained down by 1-1.7%. Hang Seng lost 0.7%.

Richard Ross, global technical analyst at Auerbach Grayson said that the genuine financial scene in US is dull, irrespective of what comes out of Washington.

Administration Lowers FY’12 GDP Growth Estimation To 8.6% From 9%

Amid a likely moderateness in industrial productivity, the administration turned down its GDP growth estimation for the existing financial year to 8.6% from the previous projection of around 9%.

The Finmin stated, “Growth is estimated to be marginally higher at 8.6 per cent this year over 2010-11 levels of 8.5 per cent.”

The finance ministry also said that as first quarter escalation figures for the existing financial year are still to be issued, the viewpoint for 2011-12 has to be inferred from movements of precedent facts, plus higher frequency proxy financial indicants.

While twelve-monthly indicators of real gross domestic product growth stayed optimistic in the existing financial year, there was a “perceptible slump” in terms of quarterly development rates during the past two quarters.

The financial system increased just 8.3% during the third quarterly period in 2010-11 and 7.8% during the January-March period, the lowest during the last five quarters.

“This apparent slowdown in headline year-on-year growth rates on a quarterly basis, plus of movement in other higher frequency indicators… and slowing automobile sales, suggested that growth outlook for 2011-12 may be lower,” it added.

While the Economic study had estimated GDP growth in 2011-12 at 9%, the central banking institution later lowered it to 8%.

The country’s economic system is approximated to have elaborated by 8.5% during the past financial.

The bureau stated that there is a slump in business investment and their earnings have been affected owing to cost appreciation of input items and raw material.

“Industry will probably slow, given trends in high frequency proxy indicators like Purchase Managers Index ( PMI )) and Index of Industrial Production ( IIP )) for the current fiscal (up to June, 2011)…,” it said.

But, it thought that the industrial slump may reverse once the base effect diminishes.

The industrial output growth rate declined to a 9-month low of 5.6% in the month of May because of a deprived presentation by the manufacturing and mining segments and lower offtake of capital goods.

According to the ministry, the agricultural expansion rate may moderate to 3-4% in 2011-12 as against 5% in 2010-11.

Guidelines on banking licenses to be out soon

The guidelines on new banking licenses may be made available in the next three months, said the RBI on Thursday.

Talking on the sidelines of a conference, Deputy Governor of RBI, K C Chakrabarty said that the new framework may take three months to prepare. All depends on the complexities and the kind of situations that develop. But, he said that the RBI is trying very hard to get the guidelines very soon.

This comes a month after the Finance Minister Pranab Mukerjee said in his budget speech that the RBI can now give banking license to private NBFCs. This is being done so that the number of banks is increased.

While on one hand, it would help in better distribution of money, on the other it would allow the interested private players to enter into the banking sector.

As part of this, even the biggest insurer, LIC could get the license. LIC is already operating in the mutual fund and housing loan segment.

But Chakrabarty informed that all depends on the companies meeting the criterion set by the apex bank.