A rally in PSU banks helped key benchmark indices trim losses in early afternoon trade. The market breadth indicating the overall health of the market turned positive from negative. The barometer index, the S&P BSE Sensex, continued to hover below the psychological 28,000 level after falling below that mark in early trade. The Sensex was currently off 142.41 points or 0.51% at 27,924.90.
Shares of public sector banks (PSU banks) edged higher after the government after trading hours on Friday, 14 August 2015, announced a revamp plan for PSU banks. Telecom stocks nudged higher on renewed buying. Shares of public sector oil marketing companies (PSU OMCs) dropped after announcing reduction in petrol and diesel prices.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 403.76 crore during the previous trading session on Friday, 14 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 179.20 crore on Friday, 14 August 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks edged lower. US stocks closed higher during the previous trading session on Friday, 14 August 2015, after a string of upbeat economic reports.
At 12:19 IST, the S&P BSE Sensex was down 142.41 points or 0.51% at 27,924.90. The index fell 328.18 points at the day's low of 27,739.13 in early trade. The index rose 28.66 points at the day's high of 28,095.97 at the onset of the trading session.
The CNX Nifty was down 31.40 points or 0.37% at 8,487.15. The index hit a low of 8,428.05 in intraday trade. The index hit a high of 8,530.60 in intraday trade, its highest level since 11 August 2015.
The BSE Mid-Cap index was up 31.78 points or 0.28% at 11,485.56. The BSE Small-Cap index was up 28.40 points or 0.24% at 11,795.18. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market turned positive from negative in early afternoon trade. On BSE, 1,253 shares rose and 1,235 shares declined. A total of 86 shares were unchanged.
Shares of public sector banks (PSU banks) edged higher after the government after trading hours on Friday, 14 August 2015, announced a revamp plan for PSU banks. The government announced the appointment of MD and CEOs of five public sector banks (PSU banks) and Non-executive Chairman of five PSU banks. The government also announced capital allocation of Rs 20088 crore to a total of 13 PSU banks as part of Tranche 1 and Tranche 2 of recapitalization announced recently. The government also announced the structure of Bank Board Bureau (BBB) which will replace the Appointments Board for appointment of Whole-Time Directors and Non-Executive Chairman of PSU banks. The government also announced a new framework of Key Performance Indicators (Kpis) to be measured for evaluating the performance of PSU banks. The government further said that it is considering offering ESOPs for top management of PSU banks.
State Bank of India was up 3.95%. The government announced capital infusion of Rs 5531 crore into the bank.
Bank of India was up 7.28%. The government announced capital infusion of Rs 2455 crore into the bank. Meanwhile, M O Rego was appointed as MD & CEO of Bank of India while G Padmananbhan was appointed as Non-Executive Chairman of the bank.
IDBI Bank was up 5.89%. The government announced capital infusion of Rs 2229 crore into the bank. Meanwhile, Kishore Kharat Piraji was appointed as MD & CEO of of IDBI Bank.
Bank of Baroda was up 13.64%. The government announced capital infusion of Rs 1786 crore into the bank. Meanwhile, P S Jayakumar was appointed as MD & CEO of Bank of Baroda while Ravi Venkatesan was appointed as Non-Executive Chairman of the bank.
Punjab National Bank was up 4.24%. The government announced capital infusion of Rs 1732 crore into the bank. Meanwhile, Usha Ananthasubramanian was appointed as MD & CEO of PNB.
Canara Bank was up 9.51%. The government announced capital infusion of Rs 947 crore into the bank. Meanwhile, Rakesh Sharma was appointed as MD & CEO of Canara Bank while T N Manoharan was appointed as Non-Executive Chairman of the bank.
Indian Overseas Bank was up 2.97%. The government announced capital infusion of Rs 2009 crore into the bank.
Union Bank of India was up 3.96%. The government announced capital infusion of Rs 1080 crore into the bank.
Corporation Bank was up 4.77%. The government announced capital infusion of Rs 857 crore into the bank.
Andhra Bank was up 3.24%. The government announced capital infusion of Rs 378 crore into the bank.
Bank of Maharashtra was up 3.39%. The government announced capital infusion of Rs 394 crore into the bank.
Allahabad Bank was up 3.9%. The government announced capital infusion of Rs 283 crore into the bank.
Dena Bank was up 3.51%. The government announced capital infusion of Rs 407 crore into the bank.
The remaining eight PSU banks which did not get any capital in first two tranche will get preference in third tranche.
Vijaya Bank was up 3.47%. G Narayanan was appointed as Non-Executive Chairman of the bank.
Indian Bank was up 8.91%. T C V Subramainian was appointed as Non-Executive Chairman of the bank.
Telecom stocks edged higher on renewed buying. Tata Teleservices (Maharashtra) (up 1.26%), Reliance Communications (up 1.23%) and Idea Cellular (up 1.15%) edged higher. Bharti Airtel (down 0.76%) and Mahanagar Telephone Nigam (down 2.46%) edged lower.
Shares of public sector oil marketing companies (PSU OMCs) dropped after announcing reduction in petrol and diesel prices. BPCL (down 1.7%), HPCL (down 1.33%) and Indian Oil Corporation (IOCL) (down 0.8%) edged lower.
IOCL after market hours on Friday, 14 August 2015, announced reduction in petrol and diesel prices with effect from 15 August 2015. The retail selling price of petrol was reduced by Rs 1.27 per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of petrol in Delhi has become Rs 63.20 per litre. The retail selling price of diesel was reduced by Rs 1.17 per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of diesel in Delhi has become Rs 44.95 per litre.
PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 16 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 10% below the Long Period Average (LPA) until 16 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 13% below the LPA in East & Northeast India, 9% below the LPA in Central India and 1% above the LPA in Northwest India until 16 August 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, Asian stocks edged lower today, 17 August 2015. Key indices in Hong Kong, Taiwan, Singapore, and South Korea were off 0.73% to 1.11%. Key indices in China and Japan were up 0.15% to 0.49%. Indonesian stock market was shut due to holiday.
Japan's economy contracted in the April-June quarter, but managed to perform slightly better than expected, data released today, 17 August 2015 showed. Gross domestic product (GDP) shrank 1.6% on an annualized basis in the April-June quarter.
US stocks closed higher during the previous trading session on Friday, 14 August 2015, after a string of upbeat economic reports.
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