Indian share markets remain firm

Mon, 20 May 11:30 am

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Indian share markets have remained firm during the previous two hours of trade. auto and realty are leading the pack of winners while consumer durables and healthcare are facing the maximum selling pressures.

The BSE-Sensex is up by 136 points and NSE-Nifty is up by 35 points. BSE Mid Cap index is trading up by 0.6% while BSE Small Cap index is trading up by 0.7%. The rupee is trading at 55.01 to the US dollar.

PSU banks shares are all trading in green with Canara Bank and United Bank of India leading the gains. According to a leading financial news medium, State Bank of India (SBI), the country's largest public sector lender is aiming to attain a 25% growth in deposits in the current fiscal compared to 14.9% in 2012-13. Further the bank is also aiming to attain a 25-30% growth in housing loans at Rs 300-350 bn in the current fiscal. During 2012-13, SBI's 'advances portfolio' grew at 21%. The average loan growth seen in the whole banking system was at 14% during the same period. SBI reported a 4.1% YoY rise in its net profit at Rs 33.96 bn for third quarter ended December 31, 2012. Total income from operation of the bank increased by 14.1% YoY at Rs 339.92 bn for the quarter ended December 31, 2012. SBI is stated to report its annual results for the financial year ended March 2013 on the 23rd of May. SBI's share is trading up by 1.6%.

Mining shares are predominantly trading in green with the exceptions of Hindustan Zinc and Gujarat NRE Coke, which are languishing in red. According to a leading financial daily, State-owned power generating companies are approaching the competition watchdog, Competition Commission of India (CCI)to complain against Coal India's (CIL) alleged abuse of monopoly power, which they say leads to unfair sales pacts, arbitrary price increases, poor quality of supplies and non-adherence to penalty clauses in supply agreements. After Maharashtra took up the issue with CCI, states like Gujarat and Madhya Pradesh have also filed petition against CIL's arm-twisting. According to the complaint filed by Maharashtra's power-generating company Mahagenco, CIL abuses its dominant position consistently to supply inferior-quality coal. Mahagenco has also alleged that the coal-supply agreement does not protect the purchaser from poor quality coal. Following the complaint by Mahagenco, the case was scheduled to come up for hearing before CCI in May. However, CIL has asked for another month's time to prepare its answers. CIL's share is trading up by 1.9%.