The BSE-Sensex is trading down by 169 points while NSE-Niftyis trading 46 points below yesterday's closing. BSE Midcap and BSE Small cap indices are down by 1.0% and 1.7% respectively. The rupee is trading at 44.94 to the US dollar.
Banking stocks have been trading mixed with Union Bank, Punjab National Bank (PNB) and Indian Overseas Bank leading the pack of gainers. However, United Bank of India, Punjab & Sind Bank and Bank of Baroda are trading weak. As per a leading financial daily, State Bank of India (SBI) expects to raise Rs 230 bn through a rights share sale by the end of FY12 to fund loans. The bank is also expected to raise lending rates by as much as 50 basis points this week. As per the management, the bank is in talks with the government and has presented various scenarios. The government owns 59.4% in the bank. The bank however, is not planning for merger of any of its subsidiaries with itself and will consider it in mid-2012. The stock of the company is trading in the green.
Food stocks have been trading in the red with Agro Tech Foods, VST Industries and Britannia Industries Ltd leading the pack of gainers. However, Sterling Biotech, Tata Coffee and Nestle are trading weak. As per a leading financial daily, Britannia Industries Ltd is weighing the option of partnering a global dairy company to strengthen its dairy business. The company earned Rs 2.5 bn in revenue from its dairy business in FY11. However, it doesn't intend to go for a partnership immediately. Besides, the company would consider consolidating its subsidiaries to simplify its operations. As per the last annual report, the company has around 18 subsidiaries, some of which are defunct investment companies.