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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Indian share markets open firm 
(Tue, 18 Dec 09:30 am) 
 
Barring Indonesia (down o.4%), all major Asian stock markets have opened the day on a firm note with stock markets in Japan (up 1.1%) and China (up 0.9%) leading the gains. The Indian share market indices have also opened the day on a firm note. Stocks in the metal and consumer durables space are leading the gains.

The Sensex today is up by around 63 points (0.3%), while the NSE-Nifty is up by around 18 points (0.3%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.3% and 0.4% respectively. The rupee is trading at Rs 54.73 to the US dollar.

Private Bank stocks have opened the day on a firm note with Karnataka Bank, ING Vysya Bank and J&K Bank leading the gains. As per a leading financial daily, India's third largest private sector lender Axis Bank is planning to sell about 45.8 m new shares to increase its equity capital to meet Basel III norms. At the current stock price level, this could fetch the bank over Rs 60 bn and cause an equity dilution of about 10.75%. Axis Bank will be the second private sector bank after IndusInd Bank to raise capital this year. While the rights issue of City Union Bank is underway, Yes Bank and Development Credit Bank (DCB) are also in the process of raising equity capital. In order to prevent a financial crisis to the one that occurred in the US in 2008, Reserve Bank of India (RBI) plans to implement the Basel-III norms. The Basel-III norms, which mandate banks to keep higher capital, will be implemented in phases over six years.

Cement stocks have also opened the day on a positive note with JK Lakshmi Cement, India Cements, Mangalam Cement, Ambuja Cements and Birla Corporation leading the gains. With effect from calendar year 2013 (CY13), leading cement players ACC Ltd and Ambuja Cements will pay 1% of their sales as technology and knowhow fees to their parent firm Holcim, Switzerland. The boards of both these companies recently approved the royalty payment. The newly agreed royalty payment is marginally higher than the existing royalty payment, which was about 0.6% to 0.7% of sales in 2011 and 2012. The increased royalty outgo is likely to affect net profits of the two cement players by about 2-3% next year onwards.

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Apr 28, 2017 (Close)

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