Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


Sensex, Nifty Extend Gains; Bajaj Finance & Tata Steel Surge Over 4%
Thu, 9 Jul 12:30 pm

Share markets in India have extended early gains and are presently trading higher, tracking gains in Asian peers.

Benchmark indices edged higher today, led by gains in financials and metal stocks.

Sentiment was also bullish following positive trend in global peers and as investors awaited June quarter earnings season to begin.

Tata Consultancy Services (TCS) is slated to announce its June quarter results later today.

The BSE Sensex is trading up by 255 points, up 0.7%, at 36,500 levels. Meanwhile, the NSE Nifty is trading up by 73 points.

The BSE Mid Cap index is trading down by 0.1%. The BSE Small Cap index is trading up by 0.4%.

On the sectoral front, gains are largely seen in the metal sector and finance sector.

FMCG stocks, on the other hand, are witnessing selling pressure.

The rupee is trading at 75.01 against the US$.

Gold prices are trading up by 0.2% at Rs 49,244 per 10 grams.

Speaking of the current stock market scenario, have a look at the chart below which shows how the BSE Sensex and the smallcap index have moved over the past one year:


The markets are coming out of the deep fall. An important driver of this rally is the increasing inflow from foreign institutional investors now that the global economies have opened the liquidity tap.

In her latest video, Richa Agarwal, editor of our premium smallcap service Hidden Treasure, shares her thoughts on what this could mean for the rebound in smallcaps and how to make the most of it.

Tune in to find out more...

Moving on, market participants are tracking L&T Infotech share price. Shares of the company hit an all-time high and are trading higher for the sixth-straight day today amid expectation of earnings recovery in the second half of financial year 2020-21.

Yesterday, the company announced that it has launched LTI Canvas, a modern software engineering platform that addresses critical need of enabling work from anywhere.

The board of directors of the company is scheduled to meet on Wednesday, July 15, to consider the un-audited financial results of the company for the quarter ended June 30, 2020 (Q1FY20).

In news from the banking sector, Yes Bank is among the top buzzing stocks today.

Shares of Yes Bank rose over 5% today after the private lender said it has filed a red herring prospectus to raise up to Rs 150 billion through issuance of fresh equity shares in its further public offering (FPO).

The offer will open on July 15, 2020 and close on July 17, 2020.

Earlier this week, Yes Bank had received approval from the capital-raising committee (CRC) of its board of directors to raise funds through the offering.

Yes Bank said the offer size of the FPO is Rs 150 billion, by way of a fresh issue of equity shares, including an employee reservation portion of up to Rs 2 billion.

Earlier, before filing its offer documents with Registrar of Companies (RoC), The bank had revised its financials for the last three years. The bank reported a net loss of Rs 164.2 billion in financial year 2019-20.

It also made additional provisions for the period ending December 2019 of Rs 154.2 billion as several of its corporate clients defaulted on loans.

Meanwhile, the executive committee of State Bank of India's central board, yesterday, gave approval for a maximum investment of up to Rs 17.6 billion in the FPO of Yes Bank, SBI said in a statement.

SBI already holds 48.21% in the private lender after it invested more than Rs 60 billion to rescue it.

On March 13, the government had approved a bailout plan for Yes Bank, under which the bank had received around Rs 100 billion from eight financial institutions, including SBI.

Yes Bank share price is presently trading up by 2.1%.

Moving on to news from the insurance sector, the government said on Wednesday that the merger of three ailing public sector general insurance companies has been shelved and the focus will be on making them profitable instead.

As per a release by Press Information Bureau (PIB), the process of merger has been ceased so far and instead focus shall be on their solvency and profitable growth, after capital infusion.

The Cabinet also approved capital infusion of Rs 124.5 billion into the three firms - Oriental Insurance Company, National Insurance Company, and United India Insurance Company. This sum includes the Rs 25 billion already infused in February.

Of the Rs 124.5 billion, government will release Rs 34.8 billion immediately and the remaining Rs 64.8 billion will be infused later.

In this year's Budget, the government set aside Rs 69.5 billion for re-capitalisation of the three entities as all three were struggling on the solvency ratio front.

As of the third quarter of 2019-20, National Insurance had a solvency ratio of 1.01, against the regulatory requirement of 1.5.

Oriental had a solvency ratio of 1.54, while United reported a solvency ratio of 0.94, much below the regulatory requirement.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Sensex, Nifty Extend Gains; Bajaj Finance & Tata Steel Surge Over 4%". Click here!