Indian equity benchmarks extended declines for a second day, joining a global sell-off in equities. Narrow cuts, characteristic of profit booking, were in evidence in most counters, apart from a few that reacted to news updates.
The S&P BSE Sensex Index fell as much as 0.7 percent to 34,088, while the NSE Nifty 50 Index fell as much as 0.9 percent to 10,465.05.
The market breadth was tilted in favour of the sellers, with two stocks declining for every one that advanced on the BSE. All the sectoral gauges compiled by BSE edged lower, led by S&P BSE Metal Index’s 1.5 percent decline.
Here Are The Stocks Moving The Market This Morning
PSU Banks Drop On Finance Ministry’s Order
Shares of the state-owned lenders extended declines for the third straight day, with the index falling 2.7 percent to 2,975 points, the lowest in over four months. This comes after the Finance Ministry asked banks to examine all bad loans above Rs 50 crore for possible fraud.
The ministry also gave state-owned banks a 15-day deadline to develop a blueprint to deal with operational challenges and technological risks while looking for violations in the bad loans.
Punjab National Bank was once again the worst performer on the index with a near 5 percent fall, while Andhra Bank fell the least in early trade. PNB, at epicenter of the Rs 13,000 crore fraudulent transaction scam of the that hit Indian banks two weeks back, has lost nearly 35 percent of its market value since then.
Binani Industries Jumps On Bain Capital Bid Report
Shares of the cement and zinc manufacturer jumped nearly 5 percent to Rs 117 after Bloomberg reported that a Bain Capital-backed investor group is poised to win the bidding for Binani Cement Ltd.
The company is currently undergoing insolvency process.
The stock’s traded volume was more than four times the 30-day average. It has now declined 15.2 percent since the year beginning, compared with 0.3 percent gain in the National Stock Exchange’s small-cap index.
Cipla Climbs On Roche Partnership News
Shares of the drug-maker climbed as much as 1.8 percent to Rs 597 after it partnered with Roche Products (India) Pvt. Ltd. to foster greater access to key medicines.
In a statement to the exchanges, Cipla said it would, per the agreement, promote and distribute two of Roche Products’ drugs in India.
The stock snapped a two-day losing streak to gain in early trade. The traded volume was a little over three times the stock’s 30-day average.
Cipla is currently trading at an unusual 16 percent discount compared with peers. Over the past two years, it has been more or less at par with peers, Bloomberg data revealed.
DLF Gains After Subsidiary Bagged Gurugram Plot
Shares of the real-estate developer gained as much as 1.6 percent to Rs 226 after its subsidiary emerged as the highest bidder for an 11.76-acre plot of land in Gurugram.
The subsidiary, Aadarshini Real Estate Developers Pvt. Ltd. had bid Rs 1,496 crore for the plot.
The stock was trading at an unusually high 99 percent premium versus peers. That compares with an average 59 percent premium that it enjoyed over the last two years, Bloomberg data showed.
The consensus price target of DLF is 1.6 percent lower than the current stock price.