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Indices trade with minor losses; Europe opens lower

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The benchmark indices continued to trade with small losses in afternoon trade. IT, pharma and FMCG shares were under pressure. At 13:20 IST, the barometer index, the S&P BSE Sensex, fell 74.68 points or 0.17% at 43,878.03. The Nifty 50 index declined 19 points or 0.15% at 12,855.20.

TCS (down 2.06%), Infosys (down 1.77%) and Reliance Industries (down 1.15%) dragged.

The broader market indices continued trading higher. The S&P BSE Mid-Cap index rose 0.73%. The S&P BSE Small-Cap index gained 0.61%.

Buyers outnumbered sellers. On the BSE, 1,398 shares rose and 1,203 shares fell. A total of 204 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 4,905.35 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 3,829.16 crore in the Indian equity market on 17 November 2020, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 5,56,27,041 with 13,38,130 deaths. India reported 4,46,805 active cases of COVID-19 infection and 1,30,993 deaths while 83,35,109 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Lakshmi Vilas Bank under Moratorium:

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 (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 2,500 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 considering 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.

Lakshmi Vilas Bank administrator to address the media at 3 PM today.

Gainers & Losers:

Mahindra & Mahindra (M&M) (up 10.84%), Tata Motors (up 7.18%), Larsen & Toubro (up 5.05%), Bajaj Finserv (up 3.58%) and Bajaj Finance (up 3.57%) were top gainers in Nifty 50 index.

BPCL (down 3.91%), Hero MotoCorp (down 2.46%), Titan Company (down 2.35%) and Bharti Airtel (down 2.19%) were major losers in Nifty 50 index.

Stocks in Spotlight:

IIFL Securities rallied 8.63%. The company said that it will consider share buyback on 20 November 2020.

DLF rose 0.05%. The realty major said it has been recognised as an index component of the Dow Jones Sustainability Indices (DJSI) in Emerging markets category. While DLF is the only real estate company from India to be included in the DJSI index, it joins the ranks of just 11 companies from India to be recognised for the benchmark for corporate sustainability. "This recognition demonstrates DLF's track record for its governance, social and environmental initiatives," the realty major said.

Global Markets:

European shares opened lower while Asian stocks advanced on Wednesday.

The US stocks corrected on Tuesday, giving back ground a day after the S&P 500 and Dow Jones Industrial Average closed at records in a rally fuelled by progress toward a COVID-19 vaccine.

However, worries about the near-term economic outlook also appeared to weigh on the market as investors tracked a surge in COVID-19 infections and slowing retail sales growth.

Data showed that October US retail sales rose 0.3% in October, confirming the weakest rise in six months. In other economic data, industrial production rose 1.1% in October, the Federal Reserve reported. Capacity utilization rose to 72.8% in October from 72% in September.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, November 18 2020. 13:22 IST