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Realty Stocks Lead the Losses
Wed, 10 Feb 01:30 pm

Following a negative trend since the opening of the trading day, the Indian indices have continued to remain under pressure in the post noon trading session. Sectoral indices are trading on a negative note with stocks from the realty, pharma and banking sectors bearing the maximum brunt.

The BSE Sensex is trading lower by 208 (down 0.9%) and the NSE Nifty is trading down by 70 points (down 1%). The BSE Mid Cap index is trading lower by 1% while the BSE Small Cap index is trading down by 1.2%. Gold prices, per 10 grams, are trading at Rs 28,202 levels. Silver price, per kilogram, is trading at Rs 36,740 levels. Crude oil is trading at Rs 1,948 per barrel. The rupee is trading at 67.86 to the US$.

Stocks in the energy space are trading on a negative note with Cairn India and Oil India leading the losses. GAIL India has reported its results for the quarter ended December 31, 2015. The company reported a 10% rise in its net profits on a YoY basis. The rise was on the back of spike in margins and exemption from payment of fuel subsidy. However, turnover fell 10% YoY on lower gas volumes transported through the company's pipelines during the quarter (subscription required).

Operating margin during the quarter stood at 6% as against 4.9% during the corresponding period in the previous year. Operating income for the quarter rose 12% YoY. Earnings per share for the quarter stood at Rs 5.24, registering 10.08% growth over previous year period. Also, the company was not required to pay any fuel subsidy in the quarter as opposed to Rs 5 billion payout in the same period a year ago.

However, the company's earnings from gas transmission business fell 16% YoY due to lower volumes of gas transported.

On a separate note, the company stated that its Board of Directors has approved payment of interim dividend of Rs 2.5 per equity share (25%) for the 2015-16 fiscal.

GAIL (India) Ltd is is an integrated energy company along the natural gas value chain with global footprints. Presently the stock of the company is trading down by 0.7%.

Banking stocks are trading on a dismal note with Central Bank and Dena Bank bearing the maximum brunt. As per a leading financial daily, state-owned IDBI Bank has raised Rs 10 billion from bond through private placement basis. The bank stated that these funds were raised in order to fund infrastructure projects.

IDBI Omni Infrastructure Bonds 2015-16 Series III are unsecured, non-convertible redeemable bonds. The 10-year bonds will have coupon rate of 8.8% per annum. The bonds will be listed on wholesale markets of Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The tenor of the bond is for 10 years and date of redemption is February 09, 2026.

On a separate note, the bank has raised the size of its equity share offering to institutional investors (qualified institutional placement) which it had announced earlier this year. The size has been raised from Rs 28 billion to Rs 37 billion, in line with government approval.

It should be noted that the government of India (GoI) holds 76.5% stake in the bank and has demonstrated continued support to the bank through equity infusions at regular intervals with the recent equity infusion of Rs 22 billion done on December 29, 2015.

IDBI Bank is one of the India's largest commercial banks. The bank offers personalized banking and financial solutions to its clients in the retail and corporate banking arena.

Presently the scrip of the company is trading down by nearly 4.6%.

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