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Nifty regains 11,000 level

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Benchmark indices sharply pared losses in mid-morning trade. The Nifty regained the 11,000-mark. Metal stocks continued to put pressure on bourses.

At 11:29 IST, the barometer index, the S&P BSE Sensex, was down 44.65 points or 0.12% at 37,266.88. The Nifty 50 index was down 14.45 points or 0.13% at 11,014.45.

Broader markets also witnessed recovery. The S&P BSE Mid-Cap index was down 0.35%. The S&P BSE Small-Cap index was down 0.19%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 889 shares rose and 1154 shares fell. A total of 107 shares were unchanged.

Metal stocks failed to shine as S&P BSE Metal slumped 1.5% at 8845.03. Hindustan Copper (down 2.87%), Vedanta (down 2.7%), Hindalco Industries (down 2.32%), NMDC (down 2.05%), Steel Authority of India (down 1.62%), National Aluminium Company (down 1.55%), Tata Steel (down 1.39%), Jindal Steel & Power (down 1.16%) and Hindustan Zinc (down 1.15%) declined.

Indiabulls Group shares came under selling pressure after credit ratings firm Moody's revised the corporate family rating of Indiabulls Housing Finance to "Ba2" from "Ba1". Indiabulls Housing Finance (IBH) (down 7.64%), Indiabulls Integrated Services (down 5%) and Indiabulls Ventures (down 3.1%) declined. Moody's has also downgraded the company's foreign-currency senior secured rating to Ba2 from Ba1, foreign- and local- currency senior secured MTN program ratings to (P)Ba2 from (P)Ba1. The international rating agency has changed the outlook to negative from stable.

Moody's said that the downgrade reflects renewed pressure on the cost and availability of funds for IBH and certain other finance companies in India. This presents a more challenging external environment than Moody's had anticipated. The company's incremental cost of funding increased 45bps quarter-on-quarter ending June 2019, while the company's balance sheet declined by 7% over the same period. This rise in funding costs was a key driver for the 28bps decline in spreads in the same period, although profitability remains comparatively strong relative to its peer group.

Hero MotoCorp was up 0.96% to Rs 2660.20. The company announced the closure of manufacturing facilities from 15 August 2019 to 18 August 2019. The company clarified that this has been a part of the annual holiday calendar on account of Independence Day, Raksha Bandhan and the weekend but this also reflects the prevailing market demand scenario.

IDBI Bank tanked 8.1% to Rs 24.95 after the bank's the bank reported a net loss of Rs 3800.84 crore in Q1 June 2019 over a net loss of Rs 2409.89 crore in Q1 June 2018. Total Income fell 7.5% to Rs 5923.93 crore in Q1 June 2019 over Q1 June 2018. On a positive side, the bank reported that gross NPA ratio improved to 29.12% as on 30 June 2019 as against 30.78% as on 30 June 2018.

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

First Published: Fri, August 16 2019. 11:32 IST
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