Stocks Radar: Allahabad Bank, Nifty IT Index, S&P BSE Oil Index

Indian equities fell in early trade, as selling pressure that emanated from the U.S. spread to Asian markets. A sharply weakening rupee and rising crude prices made oil and gas, and energy stocks some of the worst performers.

The S&P BSE Sensex Index fell 0.4 percent at 33,691.5, while the NSE Nifty 50 Index fell 0.5 percent at 10,364.55.

The market breadth in early trade was skewed sharply in favour of sellers. There were nearly two sellers for every buyer on the BSE. Sixteen out of 19 sectoral gauges compiled by the BSE fell, led by losses in the S&P BSE Oil and Gas Index, which was down 1.4 percent.

The S&P BSE Information Technology Index was one of the only gainers, up 0.7 percent.

Here Are The Stocks Moving This Morning:

Allahabad Bank: Clarifies On Exposure To Rotomac

Shares of the Kolkata-based public sector bank fell as much as 3.7 percent to Rs 50.50.

The bank clarified in an exchange filing yesterday that it had an exposure of about Rs 516.79 crores to the Rotomac group. The bank stated that the related accounts had already been classified as non performing assets (NPA) as per RBI norms. Out of the three accounts of the Rotomac Group companies that have been classified as NPAs, two of them are undergoing insolvency proceedings at the NCLT, while a recovery process for the third is underway, the bank said.

Trading volume was 2.1 times the 20-day average. The stock may have been oversold, as the relative strength index (RSI) was 23 according to data compiled by Bloomberg.

Also Read: Rotomac Scam: CBI Questions Vikram Kothari, Son In New Delhi

MTNL, ITI Surge Ahead Of Strategic Announcement For PSUs

Shares of Mahanagar Telecom Nigam Ltd. (MTNL) rose as much as 14.7 percent to Rs 25.80, while shares of the communications equipment firm, ITI Ltd., rose as much as 4.6 percent.

Manoj Sinha, the Union minister for communications is expected to soon announce a strategic plan for public sector telecom companies, according to a tweet by the government’s nodal agency.

Nifty IT Index On Third Day Rally

The Nifty IT Index rose as much as 1.06 percent today, extending its gains over three sessions to over three percent.

HCL Technologies Ltd. and KPIT Technologies Ltd. led the pack with intraday gains of 2.0 percent and 1.7 percent respectively.

IT stocks were also one of the top gainers on the Nifty Midcap index. Persistent Systems Ltd. rose as much as 3.2 percent while MPhasis Ltd. was up 3 percent.

Oil Is Not Well As Production Declines

Shares from the oil and gas and energy space were the worst losers on both the benchmark indices. The S&P BSE India Oil & Gas Index declined as much as 1.4 percent in early trade.

India’s total crude oil production in January fell to 2.98 tonnes from 3.08 tonnes in the same period a year ago, according to a statement by the Press Information Bureau. The January production was 5.8 percent lower than the target set by the government.

India’s total gas output fell 1.6 percent, on a yearly basis, to 2.7 billion cubic metres.

The sharply declining rupee and a recent rise in global crude oil prices has not helped matters. In currency trade today, the rupee fell below the 65/$ mark for the first time since November 2017.

A weaker rupee puts pressure on oil marketing companies, as it raises the price of oil imports. Brent crude prices are currently hovering around the $65-per-barrel mark.

Also Read: Indian Rupee, Bonds Slide As Global Markets Add To Domestic Woes

Stocks Reacting To Block Deals

Crompton Greaves

• 20 lakh shares changed in a single block
• Shares of Crompton Greaves Consumer Electricals Ltd. fell as much as 1.06 percent to Rs 232.5