Indian stock markets continued to slide lower in negative territory during the previous two hours of trade led by continuous selling among the index heavyweights. Stocks from capital goods and metal sectors are leading the pack of losers, whereas consumer durables stocks are trading firm.
The BSE-Sensex is trading down 115 points and the NSE-Nifty is trading down 40 points. The BSE Mid Cap index is trading down 0.4% and the BSE Small Cap index is trading down 0.5% today. The rupee is trading at 60.14 to the US dollar.
Almost all public sector banks are trading weak. Losers are being led by Syndicate Bank and United Bank of India. As per a leading business daily, India's largest bank SBI is leaving no stone unturned to in order to improve its asset quality and lower it's NPAs (non-performing assets). In a latest development, the bank is selling its assets before they are ready to be classified as non-performing. In cases, where the interest payments of loans get delayed by 60 days, SBI tries for recovery measures and alternatively sells them to assets reconstruction companies (ARCs). As per the RBI regulation, repayments that are more than 90 days overdue are classified as NPAs and banks have to keep provisions for such bad loans accordingly. As of March 2014, SBI net NPAs stood at 2.6%. SBI is trading lower by 2% today.
Most of food & tobacco companies are trading on a weak note. Golden Tobacco is leading the pack of losers, whereas Britannia and ITC are trading firm. As per a leading business daily, ITC has formally announced at its AGM (annual general meeting) about it plan to enter a new businesses. As such, the company plans to enter in to beverage, dairy businesses and is firming up its entry strategy for the same. The move is in line with the company Chairman's vision for making ITC as India's largest consumer goods company and thereby reducing its dependence on the cigarettes vertical. As per the company, presently ITC's consumer good brands, excluding cigarettes, are attracting yearly spend of Rs 100 bn which is expected to scaled up to Rs 1 trillion by 2030.