Indian stock markets extended their losses after opening the trade on a weak note. All sectoral indices were trading in the red except FMCG stocks.
The BSE-Sensex is trading down by 148 points and NSE-Nifty is trading down by 52 points. BSE Mid cap and BSE Small cap indices too are trading down by 1.6% and 1.5% respectively. The rupee is trading at 49.04 to the US dollar.
Private banking stocks are trading weak led by Yes Bank and South India Bank. As per a leading daily, Axis Bank is looking at raising around US$ 500 m via bonds. The bonds will be issued through Axis's Dubai branch. These bonds would be maturing in five and a half years. The bonds have been priced at 450 basis points over a similar US treasury bond. For this, the private sector bank has appointed Barclays Capital, Citibank, HSBC, JP Morgan and Standard Chartered Bank as leading bookrunners. We may note here that Axis had earlier raised the same amount in October last year. The bonds issued then carried a coupon of 4.75% that is 360 basis points over the treasury bonds.
Auto stocks are trading in the red led by Exide industries and Hero MotoCorp. According to a leading financial daily, Hero MotoCorp will buy a minority stake in US motorcycle firm Erik Buell Racing (EBR). The move is aimed at securing uninterrupted technological support from the US racing motorcycle maker once associated with iconic brand Harley-Davidson. By buying a stake, Hero can have a higher say in the US marquee firm and use the partnership to get a foothold in overseas markets. The overseas investment will likely be completed by early next fiscal. However the company has not disclosed the financial details of the deal. After the collapse of the Honda joint venture (JV), Hero has started setting up sales and distribution channels cross Africa, Latin America and Southeast Asia for its motorcycles and scooters.