In a lacklustre trading session, key benchmark indices registered minuscule losses based on provisional closing data. The barometer index, the S&P BSE Sensex, fell 10.59 points or 0.04% at 25,839.71, as per the provisional closing data. The 50-unit Nifty 50 index fell 4.90 points or 0.06% at 7,861.05, as per the provisional closing data. The Sensex fell 86.90 points or 0.33% at the day's low of 25,763.40 in mid-afternoon trade. The barometer index rose 72.17 points or 0.27% at the day's high of 25,922.47 at the onset of trading session, its highest level since 3 December 2015. The Nifty fell 30.45 points or 0.38% at the day's low of 7,835.50 in mid-afternoon trade. The index gained 22.80 points or 0.28% at the day's high of 7,888.75 in opening trade, its highest level since 3 December 2015.
The Reserve Bank of India (RBI) in its latest Financial Stability Report (FSR) flagged concerns about weak corporate sector balance sheets. RBI Governor Raghuram Rajan said in his foreword on the FSR which was released yesterday, 23 December 2015, that corporate sector vulnerabilities and the impact of weak corporate sector balance sheets on the financial system need closer monitoring. With regard to inflation, Rajan said that despite inflation coming down significantly, India should not lose sight of the fact that the climatic conditions have tended to be more erratic and unpredictable. This will have an impact on the volatility of inflation and perhaps its level, Rajan said.
The market breadth indicating the overall health of the market was positive. On BSE, 1,544 shares rose and 1,129 shares fell. A total of 230 shares were unchanged. The BSE Mid-Cap index was provisionally up 0.28%. The BSE Small-Cap index was provisionally up 0.49%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2716 crore, lower than turnover of Rs 3048.54 crore registered during the previous trading session.
In overseas stock markets, Asian and European stocks witnessed mixed trend. US stocks closed higher for the third straight session yesterday, 23 December 2015, led by outsize gains in the energy and materials sector stocks as crude oil futures rebounded after the weekly crude oil data showed US crude inventories posted an unexpectedly large decline last week.
Shares of public sector banks (PSU banks) edged lower after the Reserve Bank of India (RBI) criticized the dividend distribution policy of PSU banks in its latest Financial Stability Report (FSR). IDBI Bank (down 1.68%), Punjab National Bank (down 0.99%), Bank of Baroda (down 0.38%), Canara Bank (down 0.17%), and Union Bank of India (down 1.31%) dropped. Bank of India rose 0.09%.
The RBI said that PSU banks pay out significant amounts as dividend to the government and other shareholders which have no relevance to their balance sheet strengths and capital planning. In addition to the improvement of governance processes through initiatives like 'Indradhanush', PSU banks may need to review their business models and examine strategic decisions like capital structure and dividend policy, the FSR said. In August 2015, government rolled out a seven pronged plan named Indradhanush aimed at improving the performance of PSU banks. It is imperative that PSU banks approach their dividend decisions as strategic business decisions which are in keeping with their objective of shareholder wealth maximisation, the FSR said.
State Bank of India (SBI) shed 0.39% to Rs 229. The stock hit high of Rs 231.15 and low of Rs 227.90 in intraday trade. SBI before market hours today, 24 December 2015, announced that the bank has raised Rs 4000 crore on private placement of Basel III compliant, Tier-II bonds with 10 year tenure, bearing 8.33% per annum coupon and with call option after 5 years. The announcement was made before market hours today, 24 December 2015
Stocks of private sector banks also edged lower. ICICI Bank (down 1.26%), HDFC Bank (down 0.19%), Axis Bank (down 0.2%), Kotak Mahindra Bank (down 0.08%) fell. IndusInd Bank (up 1.18%) and Yes Bank (up 0.27%) rose.
Telecom stocks were mixed. Bharti Airtel (up 1.99%), Tata Teleservices (Maharashtra) (up 1.5%) rose. MTNL (down 0.46%) and Reliance Communications (down 0.12%) fell.
Idea Cellular rose 0.93% after announcing the launch of its high speed 4G LTE services across all five states of South India viz. Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana. In the first phase, Idea's high speed 4G network will be available across 75 towns in Southern India, the company said in a statement. Idea will rapidly expand 4G services in all Southern India metros and large towns by March 2016, the company said. Idea Cellular is also gearing to launch 4G LTE services by March 2016 in other key markets namely Madhya Pradesh & Chhattisgarh, Maharashtra & Goa, Punjab, Haryana, North East and Orissa, in a phased manner. By June 2016, Idea's 4G footprint will cover 750 cities across 10 telecom circles, the company said in a statement.
India's stock market remains closed tomorrow, 25 December 2015, on account of Christmas.
Powered by Capital Market - Live News
