Indian share markets widen losses

Tue, 26 Nov 01:30 pm

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Due to persistent selling pressures, Indian share markets continued to slip deeper in the red in the post-noon trading session. Majority of the sectoral indices are trading in the red with banking, realty and FMCG stocks being the biggest losers. Consumer durable, power and capital goods are the only stocks trading in the green.

BSE-Sensex is down 114 points and NSE-Nifty is trading 43 points down. BSE Mid Cap is trading down 0.1% and BSE Small Cap index is trading down 0.2%. The rupee is trading at 62.4 to the US dollar.

Majority of power stocks are trading in the red with Satluj Jal Vidyut and JSW Energy being the major losers. CESC Ltd. and Reliance Power are among the few stocks trading in the green. As per a leading financial daily, the Rs 250 bn ultra mega power project (UMPP) at Bedhabahal in Odisha has received a good reponse with nine firms bidding for the project. The interest generated by the project is remarkable considering the tough macroeconomic environment as well as initial reservations of private companies with respect to the new bidding norms. Private power generation companies were initially opposed to the non-ownership of land and coal mines as well as conditions such as mandatory domestic sourcing of equipment, cap on fuel charges and higher intrusion by independent engineers. Companies such as Tata Power, Adani Power, NTPC, Larsen & Toubro, Jindal Power, JSW Energy and Sterlite Energy have reportedly submitted technical bids for the project. Even state-run hydroelectricity company NHPC and foreign firm CLP India are in the fray for the project.

Most of the PSU banks are trading in red with Union bank and IDBI bank witnessing maximum selling pressure. As per a leading financial daily, CBI has seized gold worth 67 lakhs and fixed deposits from a deputy managing director of State bank of India (SBI), Shyamal Acharaya's house.  The CBI conducted searches at Mr Shyamal's house where it seized gold and various fixed deposit documents. It is also alleged SBI managing director received Rolex and Omega watches for approving a loan to Worlds Window Group, a metals trading company.  Reportedly, SBI said that a committee of two managing directors would investigate the matter internally.  Further, the bank has also asked the deputy manager to go on leave.

Reportedly, SBI said it is cooperating with the CBI. As per the bank statement, it remains committed to probity in the dealings and will continue to hold highest standards of honesty and transparency in its operations. SBI is currently trading down by 0.25%.