Sensex Today: Sensex ends 189 points lower, Nifty at 11,046; YES Bank falls nearly 10%

Opening Bell

Sensex Today: Benchmark indices Sensex and Nifty started the day on a tepid note as both the indices turned choppy and traded almost flat, with minor declines upto 0.20% registered in financial and banking stocks and 0.60% fall in metal scripts.

NSE's Nifty traded at 11,101.30 against the previous closing of 11,105.35, while Sensex on BSE declined to  37,655.77 againstthe last close of 37,641.27.

HDIL gets admitted under IBC

Shares of HDIL fell to its fresh 52-week low of Rs 5.75 on BSE, after the company submittted the filing announcing that it has been admitted under the IBC. Overall the stock has fallen over 6% intraday on BSE.


"With reference to our letter disseminated on stock exchange on August 26, 2019, please find enclosed herewith an order copy received from Hon'ble National Company Law Tribunal on August 26, 2019 admitting the Company under IBC". 

Allahabad Bank, PNB links its retail loans to repo rate

State-run Allahabad Bank on Tuesday announced linking of its retail loans with the Reserve Bank of India's repo rate in order to make them cheaper. The repo rate is the rate at which the Reserve Bank of India (RBI) lends money to other banks.

In a regulatory filing, Allahabad Bank said it has benchmarked its loans up to Rs 75 lakh with the external benchmark linked rates (EBLR) with effect from September 1, 2019.

Allahabad Bank, PNB link loan products to repo rate

Global Market Update

Elsewhere in Asia, bourses in Hong Kong, Korea and Japan were trading a tad higher in their respective late morning sessions, while those in China slipped into the red.

Hong Kong's Hang Seng traded more than 150 points off day's high, Where Taiwan & Japan's Nikkei trade nearer to day's high, Australia's shares climbed 0.13% Korea's KOSPI was up 0.4%, On the other hand, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.06%, dragged lower by Chinese markets.

On the Singapore exchange, SGX Nifty trades at levels of 11,130 Vs Nifty Aug Fut's yesterday's close of 11,103, indicating a positive opening for the Indian market.

Exchanges on Wall Street too ended on a negative note on Tuesday.

Indian Rupee starts lower

Rupee opens lower at 71.52 against the US dollar, against the yesterday's close of 71.48 per American currency

 

Jet Airways extends EOI to Aug 31

Jet Airways, that declared insolency on 20 June 2019, announced today that its CoC (Committee of Creditors) have extended the timelines for submission of EoI (Expression of Interest) to August 31.

 

Sensex Gainers/Losers

Top gainers in the Sensex pack in early trade on Wednesday included Tata Motors, HCL Tech, Bajaj Auto, TechM, Sun Pharma, PowerGrid, Infosys and ITC, that rose up to 3 per cent.

On the other hand, Tata Steel, Maruti, HUL, Kotak Bank and ONGC fell up to 2 per cent.

Brent crude rises

Global oil benchmark Brent crude was trading 0.68 per cent higher at 59.43 per barrel.

Currencies decline against rising dollar

Concerns about US-China trade spat has kept market participants edgy as per forex traders. Rupee and most Asian currencies like South Korean won, Thai Baht, Malaysian ringgit, Japanese yen and Indonesian rupiah were trading lower, they added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.07, higher by 0.08 per cent.


 

FII and DII

Net investment of equity and debt reported by foreign institutional investors (FIIs) remained bearish with net selling logged at Rs 923.94 crore from Indian equities while domestic institutional investors (DIIs) bought Rs 1,162.65 crore on Tuesday.

 

CG Power rises 5%

Stock Price of CG power added nearly 5% to Rs 9.05 on BSE on Tuesday and Today the stock trades as the top gainer on BSE, gaining 5% to Rs 9.50.

The stock rose after the company restated its financial statements as per impact of identified transactions, and said that its management has undertaken initial discussions with lenders to establish the completeness of the liability. The company said in the filing that the review has been performed by an Independent Legal Firm at the behest of Risk and Audit Committee and Operations Committee.

Moreover, the company also stated that it will be appointing key top-management positions such as Group CFO, COO, HR Head and other critical positions.The company also added that it will take appropriate actions against the involved parties under legal advice.

IDBI falls over 10% on S&P Global's credit watch negative rating

IDBI Bank Ltd’s shares plunged as much as 9.3% after the credit rating firm S&P Global on Tuesday placed the private lender's unsecured debt rating on ‘credit watch negative’ for breaching its regulatory capital requirement.

Private sector lender IDBI Bank on Tuesday said S&P Global Ratings has placed its foreign currency issuer credit ratings on credit watch with negative implications. The action reflects the uncertainty regarding the bank's ability to meet its regulatory capital requirement over the next few months.

Yes Bank shares fall over 7%

Shares of YES Bank fell over 7% on Wednesday after the company in a BSE filing said that its board will be considering raising of funds by way of issuance of equity shares when it meets on August 30. The shares of the private lender YES Bank  fell 7.23% to the day's low of Rs 59.65.

"Board Meeting will be held on Friday, August 30, 2019 at Mumbai, to consider and approve raising of funds by way of issuance of equity shares including but not limited through preferential issue and/ or Qualified Institutions Placement (QIP)/ Global Depository Receipts (GDRs)/ American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs)/ fully or partially convertible debentures/ convertible Preference shares/ any other financial instruments or securities convertible into Equity Shares or any other instrument on private placement basis," the regulatory filing stated. The equity infusion will be subject to shareholder approval.

As per media sources, the management of the company is seeking permission from the board for the fundraise worth Rs 9,000 crore ($1.2 billion).

 

IDBI Bank shares decline over 9%

IDBI Bank shares plunged as much as 9.3% after the credit rating firm S&P Global on Tuesday placed the private lender's unsecured debt rating on 'credit watch negative' for breaching its regulatory capital requirement.

S&P Global Ratings has, however, said that the breach could be temporary because IDBI Bank is in the process of raising capital from the government and LIC to clean up its balance sheet and replenish its capitalisation.

"We aim to resolve the credit watch in the next three months once we have clarity on the bank's plan and the timeline for shoring up its capital base, such that it maintains a sufficient buffer above the regulatory minimum," S&P said.

IDBI Bank share plunges over 11% as S&P puts lender on 'credit watch'

Rupee declines further

At the interbank foreign exchange, Indian rupee, the domestic currency was trading lower at 71.79 against the American currency at 0147 hours.

The Indian rupee on Tuesday had closed at 71.48 against the US dollar.

 

Tata Motors gains over 3%

 Shares of major automaker Tata Motors Ltd gained as much as 3.03%. China on Tuesday said it will ease restrictions on car purchases to help boost consumption.

Market Expert quotes

“Markets have adequately discounted the positive triggers in the last three sessions and now await fresh cues,” said Deepak Jasani, senior vice-president at HDFC Securities.

“Currently, we have negative trigger from U.S, there is no major panic, but domestic markets will wait for fresh major development rather than selling off sharply.”
 

Moody downgrades YES Bank

Moody's Investors Service has today downgraded Yes Bank Limited's long-term foreign-currency issuer rating to Ba3 from Ba1.

Moody's has also downgraded the bank's long term foreign and local currency bank deposit ratings to Ba3 from Ba1, foreign currency senior unsecured MTN program rating to (P)Ba3 from (P)Ba1, and Baseline Credit Assessment (BCA) and adjusted BCA to b1 from ba2.

The outlook on the bank's ratings, where applicable, is negative.

Brent crude rises due to fall in US crude stockpiles

Oil prices rose on Wednesday after industry data showing a fall in stockpiles of U.S. crude somewhat eased worries about subdued demand due to the China-U.S. trade war.

Closing Bell

Benchmark indices Sensex and Nifty ended Wednesday's trade on a bearish note as cautious investors refrained from making fresh bets and awaited fresh cues from the Indian government on worries over recession.  

NSE's While Nifty closed 55 points lower at 11,046, BSE Sensex ended day's trade at 37,451.84, at a decline of 189 points.