Shares trade with minor cuts; PSU banks in demand

The domestic equity benchmark indices were trading with minor cuts in morning trade. At 10:23 IST, the barometer index, the S&P BSE Sensex, was down 12.55 points or 0.03% at 43,940.16. The Nifty 50 index was down 8.90 points or 0.07% at 12,865.30.

The broader markets outperformed the benchmark Sensex. The S&P BSE Mid-Cap index gained 0.72% while the S&P BSE Small-Cap index rose 0.70%.

The market breadth was positive. On the BSE, 1279 shares rose and 934 shares fell. A total of 152 shares were unchanged.

Lakshmi Vilas Bank hit a lower circuit of 20% at Rs 12.40 after the central government on Tuesday (17 November 2020) placed the cash-strapped bank under moratorium for a period of one month.

The bank's customers will be able to withdraw only Rs 25,000 from their accounts till 16 December 2020. T N Manoharan, former non-executive chairman of Canara Bank, has been appointed as the administrator of Lakshmi Vilas Bank (LVB).

Further, the Reserve bank of India (RBI) has invited comments on its draft merger scheme between LVB and with DBS Bank India Ltd. (DBIL). DBIL is a wholly owned subsidiary of Singapore-based DBS Bank, which in turn is a subsidiary of Asia's leading financial services group, DBS Group Holdings. It has been issued a banking license to operate as banking company on 4 October 2018.

DBIL has a healthy balance sheet, with strong capital support. Although the DBIL is well capitalised, it will bring in additional capital of Rs 2500 crore upfront, to support credit growth of the merged entity. Owing to comfortable level of capital, the combined balance sheet of DBIL would remain healthy after the proposed amalgamation, with CRAR at 12.51% and CET-1 capital at 9.61%, without taking into account the infusion of additional capital, the central bank said in a statement.

LVB posted a net loss of Rs 397 crore in Q2 September 2020 as compared to a net loss of Rs 357.18 crore in Q2 September 2019. Total income fell 25.7% year on year to Rs 494.58 crore in Q2 September 2020 over Q2 September 2019.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 55,562,616 with 1,337,343 deaths.

India reported 446,805 active cases of COVID-19 infection and 130,993 deaths while 8,335,109 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty PSU Bank index rose 2.87% to 1,490.70. The index has added 6.5% in three sessions.

Bank of Baroda (up 3.89%), Punjab National Bank (up 3.69%), SBI (up 3.02%), Bank of India (up 2.44%), Union Bank of India (up 2.41%), Bank of Maharashtra (up 2.22%), Canara Bank (up 2.11%), UCO Bank (up 2.11%), Jammu and Kashmir Bank (up 1.89%), Indian Bank (up 1.79%), Indian Overseas Bank (up 1.60%) and CBI (up 0.43%) advanced.

Stocks in Spotlight:

IIFL Securities jumped 8.39% to Rs 45.85. The company said that it will consider the proposal for buy-back of equity shares on 20 November 2020.

Cipla shed 0.16% to Rs 741.30. The drug major announced that it signed a licensing agreement with a Belgium-based firm, Multi G for the distribution of their COVID-19 Rapid Antibody test kit, across most Emerging markets and Europe.

Spandana Sphoorty Financial rose 2.09% to Rs 760.30. In a BSE filing made after market hours yesterday (17 November 2020), the company said that its board had approved the allotment of 7500 10-year G-Sec market linked secured listed rated senior redeemable non-convertible debentures of face value of Rs 1 lakh each, on a private placement basis to JM Financial Products in consideration of an aggregate amount of Rs 75 crore. The tenure of the instrument is 455 days and its date of maturity is 16 February 2022.

Powered by Capital Market - Live News