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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Basket selling drag indices 
(Mon, 7 Mar 01:30 pm) 
 
After witnessing a huge sell-off during the previous two hours of trade, Indian stock market indices failed to recoup the losses and are currently trading in the red. All the sectoral indices are in the red with stocks from the auto and consumer goods space bearing the major brunt of the investors.

Currently, the BSE-Sensex is down by 404 points while NSE-Nifty is trading 125 points below the dotted line. BSE Midcap and BSE Small cap indices are both down by 1.96% and 1.99% respectively.

Hotel stocks are trading weak with Oriental Hotels and Country Club leading the pack of losers. However, Hotel Leelaventure is trading strong. Luxury hotel chain operator, Hotel Leela Venture plans to reduce debt by selling its non-core assets. The company expects to garner about Rs 9.5 bn through non-core asset sales. It has also decided to continue with the lease agreements in Bangalore, Mumbai and Goa as opposed to buying the property, a move that could reduce the outflow of cash. Secondly, the company has also decided to sell its commercial office space in Chennai and to enter into a joint development agreement for its owned land in Hyderabad and Bangalore. Apart from this, Hotel Leelaventure will also issue 15% of its fresh equity capital to the public. The money raised via the above measures will be utilized to pay off the debt and would thus lower the interest cost. It may be noted that the company raised huge debt to set up hotels in Udaipur, Delhi and Chennai and to purchase land in other cities.

Banking stocks are trading weak with Andhra Bank and IDBI Bank leading the pack of losers. As part of its recapitalization package , Government is all set to infuse Rs 43.7 bn in two PSU banks namely Bank of Baroda and Union Bank of India. Accordingly, Bank of Baroda has taken necessary steps to raise capital via offering equity shares. The capital infusion would raise the governments’ holding in the bank which currently stands at 53.8%. Capital infusion in Bank of Baroda would be to the tune of Rs 32.8 bn while that for Union Bank of India it would be Rs 10.9 bn. The proposed infusion is expected to be completed by March 31 this year. It may be noted that the FM had announced capital infusion of Rs 201.5 bn into PSU banks during the current fiscal so as to enable them to maintain a minimum tier-1 capital of 8%.

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Jul 21, 2017 (Close)

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