Indian share markets remain in green

Wed, 26 Jun 11:30 am

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Indian share markets have generally traded in green during the previous two hours of trade. The most noticeable upward movements have been witnessed in the power and capital goods sectors while auto and metals have witnessed some selling pressures.

The BSE Sensex is up by 7 points and the NSE-Nifty is up by 5 points. However, BSE Mid Cap is down by 0.1% but BSE Small Cap is up by 0.3%. The rupee is trading at 59.86 to the US dollar.

PSU banks' shares are trading on a mixed note with Canara Bank and Union Bank leading the gains while Allahabad Bank and Indian Bank facing the maximum selling pressures. According to a leading financial news medium, State Bank of India (SBI), country's largest public sector lender, has decided to take stringent actions for defaulting borrowers. With the precarious rise in bad loans by Rs 115 billion to Rs 512 billion as at the end of 31st March 2013, SBI has turned aggressive with respect to recovery actions. While the bank's field staff has been ordered to go after loan defaulters, the bank staff has been asked to take photographs of the properties during inspection and keep them in records. Further, the bank has decided to take physical possession of the assets to preserve their value and realize their true value through auctions. If the auction fails, the bank may consider acquiring some properties at the reserve price for its own use. The spectacular rise in default borrowers comes in the light of economic slowdown that impacted the borrower's ability to repay loans. Since SBI is the major lender, the bank's asset portfolio has faced the maximum pressures. However, going ahead the lender expects to tighten the ropes and get tough with the loan defaulters to arrest fresh slippages and in turn reduce the bad loans pile. SBI share is down by 1.3%.

Automobiles' shares are also trading on a mixed note with Hero Motocorp and Mah. Scooters leading the gains and M&M and Tata Motors facing the maximum selling pressures. According to leading financial news daily, Bajaj Auto Ltd have witnessed troubles with their production at its Chakan plant with the workmen going on strike on the management's refusal to allot them shares at discounted price. The company said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift of June 28, 2013. The workmen's union of its Chakan plant - Vishwa Kalyan Kamgar Sanghatana has proposed to call for discontinuation of work. The management has refused to concede their demand that all the workmen working in Bajaj Auto Ltd each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share. As on March 31, 2013 the Chakan plant of the company has an annual capacity of produce 1.2 million units of motorcycles, which include the Pulsar, Avenger, Ninja and KTM brands. Bajaj Auto share was down by 3.8%.