PSU Banks' Merger, IPO Buzz, and Top Stocks in Action Today

Fri, 6 Mar Pre-Open

   Previous Close   

   09:30 am   

   12:30 pm   

   Closing   

Editor's note: Dear reader, we are now on Telegram! Get our latest views on stock markets and more, instantly. Join our Telegram channel here!

---

On Thursday, Indian share markets erased most of the gains as the session progressed and ended marginally higher.

Sectoral indices ended on a mixed note with stocks in the telecom sector and FMCG sector witnessing buying interest, while realty stocks and energy stocks witnessed selling pressure.

At the closing bell on Thursday, the BSE Sensex stood higher by 61 points and the NSE Nifty closed up by 18 points.

Speaking of the current stock market scenario, investors took the flight to safety last week as stock markets saw a sharp fall post the Coronavirus impact.

In the video below, co-head of research at Equitymaster, Tanushree Banerjee recommends steps to buy multibagger stocks of the next decade during the market correction.

Watch Now...

Top Stocks in Action Today

Tata Power share price will be in focus today as the company has partnered with Jaguar Land Rover for end-to-end charging solutions for its range of electrified vehicles to be launched in India.

Tata Power will provide full charging solutions to Jaguar Land Rover Retailers and customers, along with the required after-sales support.

Granules India share price will also be in focus today as the company has received USFDA nod for Potassium Chloride Extended-release tablets.

Market participants will also track Bharti Airtel share price and Vodafone Idea share price. The Department of Telecommunications (DoT) has sent fresh notices to telecom operators on pending adjusted gross revenue (AGR) dues.

Cabinet Approves Merger of 10 PSBs

The government on Wednesday approved a scheme for the amalgamation of 10 state-owned banks into four.

The finance minister had announced the merger of the four public sector banks (PSBs) in August last year.

Punjab National Bank (PNB), Oriental Bank of Commerce, and United Bank of India will combine to form the nation's second-largest lender.

Canara Bank will take over Syndicate Bank meanwhile Union Bank of India is planned to be amalgamated with Andhra Bank and Corporation Bank.

Indian Bank will merge with Allahabad Bank.

Effective from April 1, 2020, the balance sheets as well as stocks of these banks will be integrated, according to the scheme of amalgamation approved by the Union Cabinet.

A senior finance ministry official said that businesses and industry will benefit through an increased lending capacity, with the regulatory ceiling for lending to individual borrowers increasing by over Rs 15 billion to Rs 30 billion.

The timeline for inviting comments from shareholders will be shorter than what was followed during the merger of Dena Bank and Vijaya Bank into Bank of Baroda, which came into effect on April 1, 2019.

Finance Minister Nirmala Sitharaman said the government weighed the benefits arising out of the Bank of Baroda amalgamation before taking a call on the merger of 10 public sector banks.

After the process is complete, India will have 12 PSBs instead of 27 back in 2017.

From the IPO Space...

As per an article in a leading financial daily, Indian Railway Finance Corporation (IRFC) has got markets regulator market regulator's approval for its initial public offer (IPO).

The IPO comprises a fresh issue of 938 million equity shares and an offer for sale of 469 million equity shares by the Government of India.

Meanwhile, SBI Cards and Payment Services, the first IPO of 2020 has seen a 24.54 times subscription at the time of writing, on the final day of bidding.

Data from the exchanges showed that the offer received bids for more than 2,461.3 million equity shares against the IPO size of over 100 million shares excluding anchor book over 36.6 million shares.

The reserved portion of employees saw a 4.6 times subscription, while that of State Bank of India's shareholders portion was oversubscribed 20.18 times.

SBI Card is the biggest public issue after GIC Re which was launched in October 2017.

The issue received bids for over 1.6 billion equity shares against IPO size of more than 100 million equity shares (excluding anchor book).

Incorporated in 1998, SBI Cards is the second-largest credit card issuer in India, with an 18% market share of the credit cards market in terms of the number of cards outstanding.

SBI holds 76% in SBI Cards and the rest of the stake is held by Carlyle Group.

HDFC Bank has the largest credit cards business in the country with 13.3 million cards issued, while ICICI Bank stood third with 7.9 million credit cards, according to data from the Reserve Bank of India.

SBI Card's total credit card spends grew at a compounded annual growth rate of 54.2% over FY17-FY19 compared with an industry average of 35.6%.

To know more the SBI Cards' business, the credit card industry, and whether you should apply to this IPO, you can read one of Ankit's latest notes here: SBI Cards IPO: Apply or Avoid? (requires subscription).

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers