Sensex Trades Lower; Tata Motors and SBI Fall 5%

Wed, 25 Sep 12:30 pm

   Previous Close   

   Pre-Open   

   09:30 am   

   01:30 pm   

   Closing   

Share markets in India are presently trading on a negative note amid weak global cues. Asian stocks fell after US lawmakers called for an impeachment inquiry of President Donald Trump, increasing the prospects of prolonged political uncertainty in the world's largest economy.

Barring power sector and IT sector, all sectoral indices are trading in red with stocks in the auto sector, realty sector and metal sector witnessing maximum selling pressure.

The BSE Sensex is trading down by 387 points (down 1%), while the NSE Nifty is trading down by 115 points (down 1%). The BSE Mid Cap index is trading down by 1.4%, while the BSE Small Cap index is trading down by 0.8%.

The rupee is currently trading at Rs 71.04 against the US$.

Note that Nifty had gained over 900 points in two sessions after Finance Minister Nirmala Sitharaman conducted a surgical strike on the negative sentiments hurting the economy with her stimulus measures.

As per Research analyst Apurva Sheth, Nifty could take a breather after the biggest up move in a decade. But that doesn't mean there won't be any trading opportunities for traders. The Midcap and Smallcap segments have enough room to catch up with the largecaps.

In the video below, he talks about a big opportunity in the auto sector. Tune in...

In news from the steel sector, Tata Steel share price is in focus today. The company's Joda East Iron Mine (JEIM) in Odisha and Jharkhand have been awarded with the Federation of Indian Mineral Industries (FIMI) Bala Gulshan Tandon excellence award for the year 2018-19.

The award was given during the 53rd AGM) of FIMI held at The Taj Mahal Hotel, New Delhi on September 24, 2019.

To know more about the company, you can read Tata Steel's latest result analysis and Tata Steel's 2018-19 annual report analysis on our website.

In other news, JSW Steel has received approval for issuance of fixed rate senior unsecured notes aggregating to US$ 400 million and has approved the pricing, tenure and other terms of the notes.

The company intends to use all the proceeds for capital expenditure or any other purpose in accordance with the ECB guideline.

Note that, the company has raised US$ 1 billion in two tranches over the last two years. The company is in the midst of a capital expenditure plan of Rs 444.2 billion to increase its total capacity to 24.7 metric tonnes per annum by FY21, by way of brownfield expansion and acquisitions.

JSW Steel share price is presently trading down by 1.3%.

Moving on to news from the banking sector, State Bank of India (SBI) has approached the markets regulator, seeking a one-time exception for mutual funds over a rule on segregation of assets so that they could be part of a resolution plan being worked on for Dewan Housing Finance Corporation (DHFL).

Lenders to debt laden DHFL are scheduled to meet tomorrow as they seek to finalize an inter creditor agreement (ICA). A joint lenders' meeting is also scheduled on Friday.

Under the ICA, participation of mutual funds which hold bonds issued by the company, is key to any resolution plan, as approval of at least 75% of lenders by value and 60% by number is compulsory to executive any resolution plan.

As per an article in The Economic Times, most mutual funds could not sign the ICA as they were not compliant to the markets regulator mandated side-pocketing, or segregation of stressed assets from performing investments.

The article further added that SBI's chairman Rajnish Kumar has written to the regulators as the latest rules on side-pocketing does not allow fund houses to sign the ICA.

A circular issued by the markets regulator last month allowed mutual funds to join any resolution process for stressed companies and sign ICAs.

But the approval came with a condition, they must segregate assets through side pocketing, which should be done on the day of any credit event, or downgrade of debt below investment grade.

SBI's chairman has requested the market regulator to issue "suitable directions" so that the resolution plan was collectively agreed on and implemented by a group of lenders.

Note that banks have Rs 350 billion of exposure to the company through loans and also hold non-convertible debentures issued by it. Bond holders including mutual funds, insurance companies and pension funds have a Rs 450 billion exposure.

Catalyst, the custodian of bondholders in DHFL, had sent communications to about 87,000 debenture holders asking if they could join the ICA. Some of those respondents have agreed to sign the ICA, while many others declined.

SBI share price is presently trading down by 4.8%.

Speaking of the banking sector, it is interesting to note that public sector banks (PSBs) have struggled due to rising NPAs.

NBFCs have struggled after the IL&FS crisis and are wary to lend.

There has been a silver lining in this mess. i.e. the increased market share of private sector banks. This is evident in the chart below:

India's Credit Shift Megatrend

Since 2014, private banks have consistently gained market share mainly at the expense of PSU banks.

With PSU banks still struggling to get out of their NPA mess, this trend is set to continue.

One such good quality private bank makes it to Tanushree's top 7 stocks to buy list.

These 7 stocks will be a part of many such megatrends that will play out over the next decade in India.

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