Indices come off days high; PSU banks correct

Indices come off days high; PSU banks correct

Dec 30, 2019 05:12 IST capital market

Key market barometers pared gains in mid-morning trade due to profit selling. The Nifty descended towards 12,250 level. At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 42.50 points or 0.1% at 41,617.64. The Nifty 50 index was up 15.8 points or 0.13% at 12,261.60.

The S&P BSE Mid-Cap index rose 0.18%. The S&P BSE Small-Cap index rose 0.53%. Both these indices outperformed the Sensex.

The market breadth was tilted in favour of buyers. On the BSE, 1166 shares rose and 906 shares fell. A total of 151 shares were unchanged. In Nifty 50 index, 27 stocks advanced while 23 stocks declined.

Buzzing Index:

The Nifty PSU Bank index declined 1.04% at 2,541.75 after surging 2.92% in previous session.

Punjab & Sind Bank (down 5.29%), Indian Overseas Bank (down 2.93%), UCO Bank (down 2.32%), Bank of India (down 1.88%), Union Bank of India (down 1.53%), Bank of Maharashtra (down 1.52%), Punjab National Bank (down 1.15%), Oriental Bank of Commerce (down 0.94%), Bank of Baroda (down 0.77%), SBI (down 0.74%), Canara Bank (down 0.6%) and Syndicate Bank (down 0.54%) were top losers in PSU Bank segment.

PSU banks surged on Friday after the Reserve Bank of India (RBI) said it will buy Rs 10,000 crore worth of the current benchmark 10-year bond on 30 December 2019 while selling four bonds maturing in 2020 for an equivalent amount. Simultaneously buying long-end bonds and selling short-end bonds should lead to a flattening of the yield curve. The falling yields and rising bond prices are credit positive for state-run banks as mark-to-market (MTM) profit from the government bonds increases in their investment portfolios.

Stocks in Spotlight:

Bharti Airtel advanced 1.36% to Rs 461.50 after the media reported that the telecom major raised the minimum monthly recharge for prepaid users to Rs 45 with immediate effect from Sunday. According to media reports, it will be mandatory to recharge with a voucher of Rs 45 or above every 28 days to avail services. Prior to this Rs 45 plan, consumers could get an additional 28-day validity through a recharge of Rs 23 which included only incoming calls and messages.

RITES rose 1.82% after the board of directors approved investment of Rs 48 crore for acquiring a 24% in Indian Railways Station Development Corporation. The investment will provide RITES an opportunity of growth in the emerging field of development of railway stations. In a separate announcement, the company declared an interim dividend of Rs 6 per share. The record date for the dividend is 10 January 2020.

Inox Wind surged 2.8% after the company signed a term sheet for an EPC contract of 250 MW from Continuum Power Trading (TN). The scope of the project is to supply, erect and commission 250 MW of wind power projects (in two phases of 126 MW and 124 MW) comprising of a mix of 2 MW (113 metre rotor diameter turbine combined with 92 metre hub height) and 3 MW (145 metre rotor diameter turbine combined with 120metre hub height) turbines.

Foreign Markets:

Asian markets were trading lower on Monday as investors locked profits after strong gains last week.

US stocks drifted higher on Friday, setting up the major indexes for a strong end to the week. Investor sentiment was buoyed by reports of strong holiday sales and a positive report on Chinese industrial production.

As per reports, Chinas industrial firms grew at the fastest pace in eight months in November. Industrial profits in November rose 5.4% from a year earlier to 593.9 billion yuan ($84.93 billion), compared with a 9.9% drop in October.

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