PSU bank stocks edge lower

A bout of volatility was witnessed as key benchmark indices regained positive terrain after briefly slipping into the negative zone in morning trade. At 10:17 IST, the barometer index, the S&P BSE Sensex was up 43.17 points or 0.17% at 25,666.52. The 50-unit Nifty 50 index was currently up 17 points or 0.22% at 7,808.30. The Nifty rose 39.90 points or 0.51% at the day's high of 7,831.20 at the onset of the trading session. The index fell 8.10 points or 0.1% at the day's low of 7,783.20 in morning trade. The Sensex rose 143.41 points or 0.55% at the day's high of 25,766.76 at the onset of the trading session. The index fell 34.22 points or 0.13% at the day's low of 25,589.13 in morning trade.

In overseas markets, Asian markets witnessed a mixed trend. Stocks edged higher in mainland China after the country's stock regulator moved to calm investor nerves following steep losses yesterday, 4 January 2016, and after China's central bank injected 130 billion yuan ($19.9 billion) in short-term funds into the country's financial system. Chinese stocks dropped 7% yesterday, 4 January 2016, triggering a halt to trading and leading to a global selloff. US stocks closed sharply lower yesterday, 4 January 2016, weighed by renewed concerns of global economic slowdown and increased tensions in the Middle East.

Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,431 shares rose and 685 shares declined. A total of 79 shares were unchanged. The BSE Mid-Cap index was currently up 0.24%. The BSE Small-Cap index was currently up 0.43%. Both these indices outperformed the Sensex.

Shares of public sector banks edged lower. Punjab National Bank (down 1.5%), Union Bank of India (down 1.17%), Canara Bank (down 1.2%), IDBI Bank (down 1.53%), State Bank of India (down 0.5%), Andhra Bank (down 0.78%) and Indian Bank (down 0.35%) declined. Central Bank of India (up 0.43%) and Corporation Bank (up 0.24%) edged higher.

Bank of Baroda (BoB) was off 2.61% at Rs 147.15. The stock hit a high of Rs 152.50 and a low of Rs 146.35 so far during the day. The bank announced after market hours yesterday, 4 January 2016, that the seventh installment of annual interest amounting to Rs 26.72 crore on the bank's Rs 300.20 crore IPDI Series-I bonds will be paid on 30 January 2016.

Shares of private sector banks were mixed. Kotak Mahindra Bank (up 0.54%), IndusInd Bank (up 0.18%) and HDFC Bank (up 0.11%) edged higher. ICICI Bank (down 0.86%), Yes Bank (down 0.47%) and Axis Bank (down 0.56%) edged lower.

Metal and mining stocks edged higher on renewed buying. Tata Steel (up 1.79%), Hindalco Industries (up 0.56%), Vedanta (up 0.67%), Jindal Steel & Power (up 0.7%), Steel Authority of India (up 0.94%) and Hindustan Zinc (up 0.28%) gained. National Aluminium Company (down 0.26%) and NMDC (down 0.17%) edged lower.

JSW Steel rose 1.2% at Rs 1,059.60 after the company announced that the Karnataka high court on 3 December 2015 provided a partial relief on the payment of Forest Development Tax (FDT) while hearing a petition filed by mine owners and the purchasers of iron ore, including JSW Steel on the levy of FDT by the Karnataka state government. The parties are entitled to appeal to the high court within the stipulated period of 90 days. JSW Steel said that the company is closely monitoring the developments in this regard. The announcement was made after market hours yesterday, 4 January 2016.

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